| 1 | 1 | | 85R6951 MK-D |
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| 2 | 2 | | By: Lozano H.B. No. 2362 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to creating a fund to provide grants to certain local |
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| 8 | 8 | | entities in areas of the state affected by decreased oil and gas |
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| 9 | 9 | | production for economic development and diversification projects. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter F, Chapter 401, Government Code, is |
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| 12 | 12 | | amended by adding Section 401.107 to read as follows: |
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| 13 | 13 | | Sec. 401.107. FUND FOR AREAS ECONOMICALLY IMPACTED BY |
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| 14 | 14 | | DECREASED OIL AND GAS PRODUCTION. (a) In this section, "fund" means |
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| 15 | 15 | | the oil and gas downturn assistance fund. |
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| 16 | 16 | | (b) The oil and gas downturn assistance fund is an account |
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| 17 | 17 | | in the general revenue fund created to provide grants for the |
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| 18 | 18 | | purpose of economic development and diversification in eligible |
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| 19 | 19 | | municipalities, counties, and school districts, as provided in |
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| 20 | 20 | | Subsection (e). The fund consists of excess general revenue |
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| 21 | 21 | | transferred to the fund as provided in Subsection (c). |
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| 22 | 22 | | (c) If the total available general revenue available for a |
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| 23 | 23 | | state fiscal biennium at the end of the fiscal biennium exceeds the |
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| 24 | 24 | | amount of the total available general revenue stated in the |
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| 25 | 25 | | comptroller's biennial revenue estimate for that fiscal biennium, |
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| 26 | 26 | | the comptroller shall transfer any excess general revenue to the |
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| 27 | 27 | | credit of the fund. |
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| 28 | 28 | | (d) The fund is administered by the governor. The governor |
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| 29 | 29 | | shall adopt rules necessary to administer the fund, including rules |
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| 30 | 30 | | relating to: |
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| 31 | 31 | | (1) the grant application process; and |
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| 32 | 32 | | (2) the method by which grants will be awarded if the |
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| 33 | 33 | | amount of grants for which eligible municipalities, counties, and |
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| 34 | 34 | | school districts have applied exceeds the available balance in the |
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| 35 | 35 | | fund. |
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| 36 | 36 | | (e) A municipality, county, or school district is eligible |
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| 37 | 37 | | for a grant from the fund if, for the tax year in which the state |
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| 38 | 38 | | fiscal biennium for which a grant under this section is sought |
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| 39 | 39 | | begins, the appraised value of property for ad valorem tax purposes |
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| 40 | 40 | | in the municipality, county, or school district has decreased by 20 |
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| 41 | 41 | | percent or more from the appraised value for the tax year in which |
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| 42 | 42 | | the preceding fiscal biennium began. For purposes of this section, |
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| 43 | 43 | | the appraised value of property is the taxable value of property |
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| 44 | 44 | | certified under Section 26.01, Tax Code. |
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| 45 | 45 | | SECTION 2. This Act takes effect September 1, 2017. |
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