86R216 ADM-D
 
  By: White H.B. No. 42
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to allocating a portion of oil and gas production tax
  revenue to the counties from which the oil and gas originated and to
  the use of that revenue.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 201.404, Tax Code, is amended to read as
  follows:
         Sec. 201.404.  ALLOCATION OF REVENUE. After deducting the
  amount required to be deposited by Section 201.403 [of this code],
  the comptroller shall deposit [one-fourth of] the revenue collected
  from the tax imposed by this chapter as follows:
               (1)  25 percent to the credit of the foundation school
  fund;
               (2)  two percent to the credit of the trust fund created
  under Section 205.001, to be disbursed to counties for the purposes
  and in the manner provided by that section; and
               (3)  the remainder [three-fourths] to the general
  revenue fund.
         SECTION 2.  Section 202.353, Tax Code, is amended to read as
  follows:
         Sec. 202.353.  ALLOCATION OF REVENUE. After deducting the
  amount required to be deposited by Section 202.352 [of this code],
  the comptroller shall deposit [one-fourth of] the revenue collected
  from the tax imposed by this chapter as follows:
               (1)  25 percent to the credit of the foundation school
  fund;
               (2)  two percent to the credit of the trust fund created
  under Section 205.001, to be disbursed to counties for the purposes
  and in the manner provided by that section; and
               (3)  the remainder [three-fourths] to the general
  revenue fund.
         SECTION 3.  Subtitle I, Title 2, Tax Code, is amended by
  adding Chapter 205 to read as follows:
  CHAPTER 205. SEVERANCE TAX TRUST FUND
         Sec. 205.001.  TRUST FUND FOR REVENUE FROM SEVERANCE TAXES
  FOR COUNTIES. (a)  The comptroller shall deposit the following in a
  trust fund outside the state treasury to be held with the
  comptroller in trust:
               (1)  the revenue collected from the gas production tax
  as specified by Section 201.404(2); and
               (2)  the revenue collected from the oil production tax
  as specified by Section 202.353(2).
         (b)  The comptroller shall:
               (1)  administer the fund as trustee on behalf of each
  county in this state; and
               (2)  send to the county treasurer payable to the county
  the county's share of the revenue in the trust fund as provided by
  this section.
         (c)  A county's share of the revenue in the trust fund is
  equal to the proportion that the gas production and oil production
  in that county bears to the total gas production and oil production
  in this state.
         (d)  The comptroller shall remit to a county the county's
  share of the revenue in the trust fund not later than the 90th day
  after the last day of the calendar month during which the revenue
  was deposited in the trust fund.
         (e)  A county may use money received under this section only
  to supplement construction and maintenance of county roads and
  bridges that are impacted by oil and gas exploration and production
  activities.
         SECTION 4.  The changes in law made by this Act apply only to
  tax revenue collected under Chapters 201 and 202, Tax Code, from oil
  and gas produced on or after the effective date of this Act. Tax
  revenue collected under Chapters 201 and 202, Tax Code, from oil and
  gas produced before that date is governed by the law in effect on
  the date the oil and gas was produced, and that law is continued in
  effect for that purpose.
         SECTION 5.  This Act takes effect September 1, 2021, but only
  if the constitutional amendment proposed by the 86th Legislature,
  Regular Session, 2019, authorizing the legislature to allocate a
  portion of oil and gas production tax revenue to the counties from
  which the oil and gas originated is approved by the voters. If that
  amendment is not approved by the voters, this Act has no effect.