| 1 | 1 | | 86R216 ADM-D |
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| 2 | 2 | | By: White H.B. No. 42 |
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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 allocating a portion of oil and gas production tax |
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| 8 | 8 | | revenue to the counties from which the oil and gas originated and to |
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| 9 | 9 | | the use of that revenue. |
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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. Section 201.404, Tax Code, is amended to read as |
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| 12 | 12 | | follows: |
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| 13 | 13 | | Sec. 201.404. ALLOCATION OF REVENUE. After deducting the |
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| 14 | 14 | | amount required to be deposited by Section 201.403 [of this code], |
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| 15 | 15 | | the comptroller shall deposit [one-fourth of] the revenue collected |
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| 16 | 16 | | from the tax imposed by this chapter as follows: |
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| 17 | 17 | | (1) 25 percent to the credit of the foundation school |
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| 18 | 18 | | fund; |
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| 19 | 19 | | (2) two percent to the credit of the trust fund created |
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| 20 | 20 | | under Section 205.001, to be disbursed to counties for the purposes |
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| 21 | 21 | | and in the manner provided by that section; and |
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| 22 | 22 | | (3) the remainder [three-fourths] to the general |
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| 23 | 23 | | revenue fund. |
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| 24 | 24 | | SECTION 2. Section 202.353, Tax Code, is amended to read as |
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| 25 | 25 | | follows: |
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| 26 | 26 | | Sec. 202.353. ALLOCATION OF REVENUE. After deducting the |
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| 27 | 27 | | amount required to be deposited by Section 202.352 [of this code], |
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| 28 | 28 | | the comptroller shall deposit [one-fourth of] the revenue collected |
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| 29 | 29 | | from the tax imposed by this chapter as follows: |
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| 30 | 30 | | (1) 25 percent to the credit of the foundation school |
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| 31 | 31 | | fund; |
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| 32 | 32 | | (2) two percent to the credit of the trust fund created |
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| 33 | 33 | | under Section 205.001, to be disbursed to counties for the purposes |
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| 34 | 34 | | and in the manner provided by that section; and |
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| 35 | 35 | | (3) the remainder [three-fourths] to the general |
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| 36 | 36 | | revenue fund. |
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| 37 | 37 | | SECTION 3. Subtitle I, Title 2, Tax Code, is amended by |
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| 38 | 38 | | adding Chapter 205 to read as follows: |
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| 39 | 39 | | CHAPTER 205. SEVERANCE TAX TRUST FUND |
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| 40 | 40 | | Sec. 205.001. TRUST FUND FOR REVENUE FROM SEVERANCE TAXES |
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| 41 | 41 | | FOR COUNTIES. (a) The comptroller shall deposit the following in a |
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| 42 | 42 | | trust fund outside the state treasury to be held with the |
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| 43 | 43 | | comptroller in trust: |
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| 44 | 44 | | (1) the revenue collected from the gas production tax |
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| 45 | 45 | | as specified by Section 201.404(2); and |
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| 46 | 46 | | (2) the revenue collected from the oil production tax |
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| 47 | 47 | | as specified by Section 202.353(2). |
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| 48 | 48 | | (b) The comptroller shall: |
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| 49 | 49 | | (1) administer the fund as trustee on behalf of each |
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| 50 | 50 | | county in this state; and |
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| 51 | 51 | | (2) send to the county treasurer payable to the county |
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| 52 | 52 | | the county's share of the revenue in the trust fund as provided by |
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| 53 | 53 | | this section. |
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| 54 | 54 | | (c) A county's share of the revenue in the trust fund is |
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| 55 | 55 | | equal to the proportion that the gas production and oil production |
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| 56 | 56 | | in that county bears to the total gas production and oil production |
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| 57 | 57 | | in this state. |
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| 58 | 58 | | (d) The comptroller shall remit to a county the county's |
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| 59 | 59 | | share of the revenue in the trust fund not later than the 90th day |
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| 60 | 60 | | after the last day of the calendar month during which the revenue |
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| 61 | 61 | | was deposited in the trust fund. |
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| 62 | 62 | | (e) A county may use money received under this section only |
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| 63 | 63 | | to supplement construction and maintenance of county roads and |
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| 64 | 64 | | bridges that are impacted by oil and gas exploration and production |
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| 65 | 65 | | activities. |
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| 66 | 66 | | SECTION 4. The changes in law made by this Act apply only to |
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| 67 | 67 | | tax revenue collected under Chapters 201 and 202, Tax Code, from oil |
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| 68 | 68 | | and gas produced on or after the effective date of this Act. Tax |
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| 69 | 69 | | revenue collected under Chapters 201 and 202, Tax Code, from oil and |
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| 70 | 70 | | gas produced before that date is governed by the law in effect on |
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| 71 | 71 | | the date the oil and gas was produced, and that law is continued in |
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| 72 | 72 | | effect for that purpose. |
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| 73 | 73 | | SECTION 5. This Act takes effect September 1, 2021, but only |
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| 74 | 74 | | if the constitutional amendment proposed by the 86th Legislature, |
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| 75 | 75 | | Regular Session, 2019, authorizing the legislature to allocate a |
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| 76 | 76 | | portion of oil and gas production tax revenue to the counties from |
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| 77 | 77 | | which the oil and gas originated is approved by the voters. If that |
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| 78 | 78 | | amendment is not approved by the voters, this Act has no effect. |
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