By: Ogden S.B. No. 505
A BILL TO BE ENTITLED
AN ACT
relating to authorizing the designation of an area adjacent to a
state highway project as a transportation finance zone, and
authorizing the revenue from the state sales and use taxes imposed
in the zone to be deposited in a revolving fund and used to repay
financial assistance provided from the fund for highway projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 222, Transportation Code,
is amended by adding Section 222.005 to read as follows:
Sec. 222.005. TRANSPORTATION FINANCE ZONES. (a) The
commission by order or resolution may designate as a transportation
finance zone an area that is adjacent to the right-of-way of an
existing or proposed state highway project and within two miles on
either side of the center line of the state highway. The area
designated as a transportation finance zone may extend more than
two miles on either side of the center line of a state highway if
necessary, as determined by the commission, to avoid the splitting
of a location in which the sale, storage, use, or other consumption
of a taxable item would be consummated. Each transportation
finance zone shall be designated by the commission with a separate
number or name.
(b) The designation of a transportation finance zone is not
effective until the Legislative Budget Board has reviewed and
approved the designation and boundaries of the zone.
(c) Notwithstanding Section 151.801(a), Tax Code, proceeds
from the collection of the taxes imposed by that chapter in
connection with a sale, storage, use, or other consumption that is
consummated in a transportation finance zone shall be deposited in
the Texas Transportation Revolving Fund or similar revolving fund
authorized by law, to be used for the repayment of financial
assistance provided from the revolving fund for highway projects as
provided by law.
(d) The proceeds from the collection of taxes deposited to
the credit of a revolving fund under Subsection (c) may only be used
for the repayment of financial assistance provided to the
department for tolled or nontolled highway projects within the
transportation finance zone in which the taxes were collected, and
may not be used to provide financial assistance for a project
developed, constructed, or operated by a private entity under a
comprehensive development agreement.
(e) In any state fiscal year the comptroller may not deposit
more than $250 million to the credit of a revolving fund under
Subsection (d).
(f) A transportation finance zone terminates on the earlier
of:
(1) the termination date, if any, specified in the
order or resolution designating the zone; or
(2) the date on which the financial assistance secured
by proceeds from the collection of taxes imposed within the zone has
been repaid.
(g) The commission shall adopt rules to implement and
administer this section.
SECTION 2. (a) Except as provided in Subsection (b) of
this section, this Act takes effect January 1, 2010, but only if the
constitutional amendment authorizing the legislature to permit the
Texas Transportation Commission, subject to the review and approval
of the Legislative Budget Board, to designate the area adjacent to a
state highway project as a transportation finance zone and
authorizing the revenue from the state sales and use taxes imposed
in the zone to be deposited in a revolving fund and used to repay
financial assistance provided from the fund for transportation
projects is approved by the voters. If that amendment is not
approved by the voters, this Act has no effect.
(b) The comptroller of public accounts may not deposit any
funds to the credit of a revolving fund under Section 222.005,
Transportation Code, as added by this Act, until September 1, 2012.