By: Ogden	S.B. No. 1428

	A BILL TO BE ENTITLED
	AN ACT
	relating to authorizing the designation of an area adjacent to a
	state highway project as a transportation finance zone, and
	authorizing the revenue from the state sales and use taxes imposed
	in the zone to be deposited in a revolving fund and used to repay
	financial assistance provided from the fund for highway projects.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter A, Chapter 222, Transportation Code,
	is amended by adding Section 222.005 to read as follows:
	Sec. 222.005.  TRANSPORTATION FINANCE ZONES. (a)  The
	commission by order or resolution may designate as a transportation
	finance zone an area that is adjacent to the right-of-way of an
	existing or proposed state highway project and within two miles on
	either side of the centerline of the state highway. The area
	designated as a transportation finance zone may extend more than
	two miles on either side of the centerline of a state highway if
	necessary, as determined by the commission, to avoid the splitting
	of a location in which the sale, storage, use, or other consumption
	of a taxable item would be consummated. Each transportation
	finance zone shall be designated by the commission with a separate
	number or name.
	(b)  The designation of a transportation finance zone is not
	effective until the legislature has reviewed and approved the
	designation and boundaries of the zone.
	(c)  Notwithstanding Section 151.801(a), Tax Code, proceeds
	from the collection of the taxes imposed by that chapter in
	connection with a sale, storage, use, or other consumption that is
	consummated in a transportation finance zone shall be deposited in
	the state infrastructure bank or similar revolving fund authorized
	by law, to be used for the repayment of financial assistance
	provided from the revolving fund for highway projects as provided
	by law.
	(d)  The proceeds from the collection of taxes deposited to
	the credit of a revolving fund under Subsection (c) may only be used
	for the repayment of financial assistance provided to the
	department for tolled or nontolled highway projects within the
	transportation finance zone in which the taxes were collected, and
	may not be used to provide financial assistance for a project
	developed, constructed, or operated by a private entity under a
	comprehensive development agreement.
	(e)  In any state fiscal year the comptroller may not deposit
	more than $250 million to the credit of a revolving fund under
	Subsection (c).
	(f)  A transportation finance zone terminates on the earlier
	of:
	(1)  the termination date, if any, specified in the
	order or resolution designating the zone; or
	(2)  the date on which the financial assistance secured
	by proceeds from the collection of taxes imposed within the zone has
	been repaid.
	(g)  The commission shall adopt rules to implement and
	administer this section.
	SECTION 2.  (a)  Except as provided in Subsection (b) of
	this section, this Act takes effect January 1, 2012, but only if the
	constitutional amendment authorizing the legislature to permit the
	Texas Transportation Commission, subject to legislative review and
	approval, to designate the area adjacent to a state highway project
	as a transportation finance zone and authorizing the revenue from
	the state sales and use taxes imposed in the zone to be deposited in
	a revolving fund and used to repay financial assistance provided
	from the fund for transportation projects is approved by the
	voters. If that amendment is not approved by the voters, this Act
	has no effect.
	(b)  The comptroller of public accounts may not deposit any
	funds to the credit of a revolving fund under Section 222.005,
	Transportation Code, as added by this Act, until September 1, 2014.