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Relating to the grant program distributing money from the
transportation infrastructure fund.
No significant fiscal implication to the State is anticipated.
HB 4280 would make various changes to the grant program for distributing money from the transportation infrastructure fund with the purpose of increasing the contributions to counties which generate the most severance tax revenue for purposes of constructing, repairing and maintaining county roads related to oil and gas production. The bill would clarify that counties would only be eligible for funds from the fund if at least $10 million in oil & gas production taxes were collected in the county in the previous fiscal year. The bill would additionally distribute 10% of the grants according to weight tolerance permits (decreased from 20%) and 60% according to well completions (increased from 50%).
Lastly, the bill would require counties which enter into a contract for a transportation infrastructure project with funds from the grant program to engage in competitive bidding practices, among some other additional requirements.
Texas Action remains neutral on HB 4280 as it does not affect our liberty principles. This bill does not spend any additional money via the fund, instead just redirecting the current funds to the counties which likely need it most as a result of increased production and transportation infrastructure needs.