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