Texas Senate Bill SB1707

Texas 2017 - 85th Regular

Caption

Relating to funding for county transportation infrastructure projects in counties with significant oil and gas production.

Impact

The bill proposes a structural shift in how counties manage and utilize funds related to their transportation infrastructures. With the establishment of county energy transportation reinvestment zones, local governments can potentially see an increase in resources allocated to road maintenance and infrastructure improvement. The bill also impacts existing statutes concerning the relationship between energy production and infrastructure funding, reflecting a legislative intent to better integrate these two sectors. The designated areas will experience a stronger focus on infrastructure projects that can directly improve conditions for residents and businesses alike, contributing to the overall economic health of oil-producing counties.

Summary

SB1707 seeks to amend the Transportation Code regarding funding for county transportation infrastructure projects, particularly in counties that are significantly engaged in oil and gas production. The bill introduces several provisions aimed at ensuring that tax increments derived from designated zones are utilized predominantly for transportation-related projects within those zones. Specifically, it mandates that a minimum of 95 percent of the tax increment generated must be allocated for the planning, construction, or maintenance of transportation infrastructure. This measure is intended to streamline the use of funds obtained from the growing oil and gas sector towards enhancing local transportation systems, which are often impacted by industrial activities in those regions.

Contention

While the bill has received backing from many stakeholders interested in tapping into oil and gas revenues for public good, there are concerns regarding the procedural aspects and the effectiveness of this funding model. Critics may argue that stripping the authority from local governments in terms of funding allocation could impede their ability to address specific local needs comprehensively. Moreover, the requirement that substantial portions of the tax increments be earmarked strictly for transportation projects might limit the flexibility of counties in addressing varied urgent community issues that arise beyond infrastructure concerns.