1 | 1 | | 85R11840 MTB-F |
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2 | 2 | | By: Uresti S.B. No. 1708 |
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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 funding for counties for transportation infrastructure |
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8 | 8 | | projects located in areas of the state affected by increased oil and |
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9 | 9 | | gas production, including administration of county energy |
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10 | 10 | | transportation reinvestment zones. |
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11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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12 | 12 | | SECTION 1. Sections 222.1071(i) and (n), Transportation |
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13 | 13 | | Code, are amended to read as follows: |
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14 | 14 | | (i) The county may: |
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15 | 15 | | (1) use money in the tax increment account, before |
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16 | 16 | | September 1, 2017, to provide: |
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17 | 17 | | (A) matching funds under Section 256.105; and |
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18 | 18 | | (B) funding for one or more transportation |
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19 | 19 | | infrastructure projects located in the zone; |
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20 | 20 | | (2) apply for grants under Subchapter C, Chapter 256[, |
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21 | 21 | | subject to Section 222.1072]; |
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22 | 22 | | (3) use one [five] percent of any grant distributed to |
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23 | 23 | | the county under Subchapter C, Chapter 256, for the administration |
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24 | 24 | | of a county energy transportation reinvestment zone, not to exceed |
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25 | 25 | | $100,000 [$250,000]; |
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26 | 26 | | (4) enter into an agreement to provide for the joint |
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27 | 27 | | administration of county energy transportation reinvestment zones |
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28 | 28 | | if the commissioners court of the county has designated a county |
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29 | 29 | | energy transportation reinvestment zone under this section for the |
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30 | 30 | | same transportation infrastructure project or projects as another |
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31 | 31 | | county commissioners court; and |
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32 | 32 | | (5) pledge money in the tax increment account, before |
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33 | 33 | | September 1, 2017, to a road utility district formed as provided by |
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34 | 34 | | Subsection (n). |
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35 | 35 | | (n) In the alternative, to assist the county in developing a |
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36 | 36 | | transportation infrastructure project, if authorized by the |
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37 | 37 | | commission under Chapter 441, a road utility district may be formed |
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38 | 38 | | under that chapter that has the same boundaries as a county energy |
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39 | 39 | | transportation reinvestment zone created under this section. The |
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40 | 40 | | road utility district may issue bonds to pay all or part of the cost |
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41 | 41 | | of a transportation infrastructure project and may pledge and |
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42 | 42 | | assign all or a specified amount of money in the tax increment |
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43 | 43 | | account, before September 1, 2017, to secure those bonds if the |
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44 | 44 | | county: |
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45 | 45 | | (1) collects a tax increment; and |
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46 | 46 | | (2) pledges all or a specified amount of the tax |
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47 | 47 | | increment to the road utility district. |
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48 | 48 | | SECTION 2. Section 222.1072, Transportation Code, is |
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49 | 49 | | transferred to Subchapter C, Chapter 256, Transportation Code, |
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50 | 50 | | redesignated as Section 256.107, Transportation Code, and amended |
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51 | 51 | | to read as follows: |
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52 | 52 | | Sec. 256.107 [222.1072]. COUNTY GRANT PROGRAM ADVISORY |
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53 | 53 | | BOARD [OF COUNTY ENERGY TRANSPORTATION REINVESTMENT ZONE]. (a) A |
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54 | 54 | | county may create [is eligible to apply for a grant under Subchapter |
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55 | 55 | | C, Chapter 256, if the county creates] an advisory board to advise |
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56 | 56 | | the county on transportation infrastructure projects to be funded |
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57 | 57 | | by a grant from the department under this subchapter [the |
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58 | 58 | | establishment, administration, and expenditures of a county energy |
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59 | 59 | | transportation reinvestment zone]. The county commissioners court |
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60 | 60 | | shall determine the terms and duties of the advisory board members. |
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61 | 61 | | (b) An [Except as provided by Subsection (c), the] advisory |
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62 | 62 | | board created under this section [of a county energy transportation |
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63 | 63 | | reinvestment zone] consists of the following members appointed by |
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64 | 64 | | the county judge and approved by the county commissioners court: |
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65 | 65 | | (1) up to three oil and gas company representatives |
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66 | 66 | | who perform a company activity or related service [activities in |
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67 | 67 | | the county and are local taxpayers]; and |
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68 | 68 | | (2) two public members. |
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69 | 69 | | (c) [County energy transportation reinvestment zones that |
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70 | 70 | | are jointly administered are advised by a single joint advisory |
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71 | 71 | | board for the zones. A joint advisory board under this subsection |
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72 | 72 | | consists of members appointed under Subsection (b) for each zone to |
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73 | 73 | | be jointly administered. |
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74 | 74 | | [(d)] An advisory board member may not receive compensation |
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75 | 75 | | for service on the board or reimbursement for expenses incurred in |
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76 | 76 | | performing services as a member. |
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77 | 77 | | SECTION 3. Section 251.018, Transportation Code, is amended |
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78 | 78 | | to read as follows: |
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79 | 79 | | Sec. 251.018. ROAD REPORTS. A road condition report made by |
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80 | 80 | | a county that is operating under a system of administering county |
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81 | 81 | | roads under Chapter 252 or a special law, including a report made |
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82 | 82 | | under Section 251.005, must include the primary cause of any road, |
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83 | 83 | | culvert, or bridge degradation if reasonably ascertained along with |
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84 | 84 | | a brief description of the degradation. |
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85 | 85 | | SECTION 4. Sections 256.101(3) and (4), Transportation |
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86 | 86 | | Code, are amended to read as follows: |
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87 | 87 | | (3) "Weight tolerance permit" means a permit issued |
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88 | 88 | | under Section 623.011 for [Chapter 623 authorizing] a vehicle |
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89 | 89 | | operating specifically in relation to the exploration, |
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90 | 90 | | development, or production of oil or gas [to exceed maximum legal |
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91 | 91 | | weight limitations]. |
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92 | 92 | | (4) "Well completion" means the completion, reentry, |
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93 | 93 | | or recompletion of a vertical or horizontal [an] oil or gas well. |
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94 | 94 | | SECTION 5. Section 256.103, Transportation Code, is amended |
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95 | 95 | | by adding Subsection (a-1) and amending Subsection (b) to read as |
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96 | 96 | | follows: |
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97 | 97 | | (a-1) To be eligible for a grant under this subchapter, a |
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98 | 98 | | county must have at least 400 active wells, including horizontal, |
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99 | 99 | | vertical, and oil and gas waste disposal wells, as determined by the |
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100 | 100 | | most recent data of the Railroad Commission of Texas. |
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101 | 101 | | (b) Grants distributed during a fiscal year must be |
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102 | 102 | | allocated among counties as follows: |
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103 | 103 | | (1) 10 [20] percent according to weight tolerance |
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104 | 104 | | permits, determined by the ratio of weight tolerance permits issued |
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105 | 105 | | in the preceding fiscal year for the county [that designated a |
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106 | 106 | | county energy transportation reinvestment zone] to the total number |
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107 | 107 | | of weight tolerance permits issued in the state in that fiscal year, |
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108 | 108 | | as determined by the Texas Department of Motor Vehicles; |
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109 | 109 | | (2) 20 percent according to oil and gas production |
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110 | 110 | | taxes, determined by the ratio of oil and gas production taxes |
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111 | 111 | | collected by the comptroller in the preceding fiscal year in the |
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112 | 112 | | county [that designated a county energy transportation |
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113 | 113 | | reinvestment zone] to the total amount of oil and gas production |
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114 | 114 | | taxes collected in the state in that fiscal year, as determined by |
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115 | 115 | | the comptroller; |
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116 | 116 | | (3) 15 [50] percent according to vertical well |
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117 | 117 | | completions, determined by the ratio of vertical well completions |
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118 | 118 | | in the preceding fiscal year in the county [that designated a county |
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119 | 119 | | energy transportation reinvestment zone] to the total number of |
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120 | 120 | | vertical well completions in the state in that fiscal year, as |
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121 | 121 | | determined by the Railroad Commission of Texas; [and] |
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122 | 122 | | (4) 45 percent according to horizontal well |
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123 | 123 | | completions, determined by the ratio of horizontal well completions |
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124 | 124 | | in the preceding fiscal year in the county to the total number of |
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125 | 125 | | horizontal well completions in the state in that fiscal year, as |
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126 | 126 | | determined by the Railroad Commission of Texas; and |
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127 | 127 | | (5) 10 percent according to the total number [volume] |
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128 | 128 | | of oil and gas waste disposal wells as defined by the Railroad |
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129 | 129 | | Commission of Texas [injected], determined by the ratio of the |
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130 | 130 | | total number [volume] of oil and gas waste disposal wells |
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131 | 131 | | [injected] in the last full [preceding fiscal] year for which the |
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132 | 132 | | Railroad Commission of Texas has a report for commercial disposal |
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133 | 133 | | wells in the county [that designated a county energy transportation |
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134 | 134 | | reinvestment zone] to the total number [volume] of oil and gas waste |
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135 | 135 | | disposal wells [injected] in the state in that [fiscal] year, as |
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136 | 136 | | determined by the Railroad Commission of Texas. |
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137 | 137 | | SECTION 6. Section 256.104(a), Transportation Code, is |
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138 | 138 | | amended to read as follows: |
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139 | 139 | | (a) In applying for a grant under this subchapter, the |
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140 | 140 | | county shall: |
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141 | 141 | | (1) provide the road condition report described by |
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142 | 142 | | Section 251.018 made by the county for the previous year; and |
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143 | 143 | | (2) submit to the department[: |
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144 | 144 | | [(A) a copy of the order or resolution |
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145 | 145 | | establishing a county energy transportation reinvestment zone in |
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146 | 146 | | the county, except that the department may waive the submission |
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147 | 147 | | until the time the grant is awarded; and |
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148 | 148 | | [(B)] a plan that: |
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149 | 149 | | (A) [(i)] provides a list of transportation |
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150 | 150 | | infrastructure projects to be funded by the grant; |
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151 | 151 | | (B) [(ii)] describes the scope of the |
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152 | 152 | | transportation infrastructure project or projects to be funded by |
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153 | 153 | | the grant using best practices for prioritizing the projects; |
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154 | 154 | | (C) [(iii)] provides for matching funds as |
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155 | 155 | | required by Section 256.105; and |
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156 | 156 | | (D) [(iv)] meets any other requirements imposed |
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157 | 157 | | by the department. |
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158 | 158 | | SECTION 7. Section 256.106(a), Transportation Code, is |
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159 | 159 | | amended to read as follows: |
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160 | 160 | | (a) A county that makes a second or subsequent application |
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161 | 161 | | for a grant from the department under this subchapter must: |
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162 | 162 | | (1) provide the department with a copy of a report |
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163 | 163 | | filed under Section 251.018; |
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164 | 164 | | (2) certify that all previous grants are being spent |
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165 | 165 | | in accordance with the plan submitted under Section 256.104; [and] |
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166 | 166 | | (3) provide an update on and brief description of the |
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167 | 167 | | status of all uncompleted transportation infrastructure projects; |
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168 | 168 | | and |
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169 | 169 | | (4) provide an accounting of how previous grants were |
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170 | 170 | | spent, including any amounts spent on administrative costs. |
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171 | 171 | | SECTION 8. This Act takes effect September 1, 2017. |
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