Relating to the allocation of certain constitutional transfers of money to certain funds and accounts, including the Texas severance tax revenue and oil and natural gas (Texas STRONG) defense fund, and to the permissible uses of money deposited to the Texas severance tax revenue and oil and natural gas (Texas STRONG) defense fund.

89(R) HB 188 - House Committee Report version - Bill Text

89R12952 CS-F

By: Landgraf, Morales of Maverick

H.B. No. 188

Substitute the following for H.B. No. 188:

By: Bonnen

C.S.H.B. No. 188

A BILL TO BE ENTITLED

AN ACT

relating to the allocation of certain constitutional transfers of

money to certain funds and accounts, including the Texas severance

tax revenue and oil and natural gas (Texas STRONG) defense fund, and

to the permissible uses of money deposited to the Texas severance

tax revenue and oil and natural gas (Texas STRONG) defense fund.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading to Subchapter H, Chapter 316,

Government Code, is amended to read as follows:

SUBCHAPTER H. ALLOCATION OF
CONSTITUTIONAL
TRANSFERS TO
CERTAIN

FUNDS
[
ECONOMIC STABILIZATION FUND AND STATE HIGHWAY FUND
]

SECTION 2. The heading to Section 316.092, Government Code,

is amended to read as follows:

Sec. 316.092. DETERMINATION OF THRESHOLD FOR

CONSTITUTIONAL TRANSFER TO
CERTAIN FUNDS
[
STATE HIGHWAY FUND
].

SECTION 3. Section 316.092(b), Government Code, is amended

to read as follows:

(b) This section expires December 31,
2036
[
2042
].

SECTION 4. The heading to Section 316.093, Government Code,

is amended to read as follows:

Sec. 316.093. ADJUSTMENT OF CONSTITUTIONAL ALLOCATIONS TO

CERTAIN FUNDS
[
FUND AND STATE HIGHWAY FUND
].

SECTION 5. Section 316.093, Government Code, is amended by

amending Subsections (b), (c), and (d) and adding Subsection (e) to

read as follows:

(b) If the sum described by Subsection (a) is less than the

amount determined under Section 316.092 for that state fiscal

biennium, the comptroller shall reduce
proportionately
the

allocations
[
allocation
] to the state highway fund
, the oil and gas

regulation and cleanup account, the Texas emissions reduction plan

fund, and the Texas severance tax revenue and oil and natural gas

(Texas STRONG) defense fund as
provided by Section
49-g(c-1)

[
49-g(c)
], Article III, Texas Constitution, and increase the

allocation to the economic stabilization fund[
,
] in an [
equal
]

amount
equal to the reduction of those allocations
[
,
] until the

amount determined under Section 316.092 for that state fiscal

biennium would be achieved by the transfer to the fund or the total

amount of the sum described by Section 49-g(c), Article III, Texas

Constitution, is allocated to the fund, whichever occurs first.

(c) For the purposes of Section 49-g(c-2), Article III,

Texas Constitution, the comptroller shall adjust the allocation

provided by Section 49-g(c-1) of that article
so that
[
of amounts to

be transferred to the fund and to the state highway fund under

Section 49-g(c) of that article in a state fiscal year
] beginning

[
on or after
] September 1,
2037
[
2043
],
the amount allocated for

transfer to the Texas severance tax revenue and oil and natural gas

(Texas STRONG) defense fund under Section 49-g(c-1) of that article

is instead
[
so that the total of those amounts is
] transferred to

the economic stabilization fund
.

(d) The
[
, except that the
] comptroller shall reduce a

transfer
to the economic stabilization fund required
[
made
] under

Subsection (c) of this section
[
this subsection
] as necessary to

prevent the amount in the fund from exceeding the limit in effect

for that biennium under Section 49-g(g)
, Article III, Texas

Constitution
[
of that article
].

(e)
[
(d)
] Subsections (a) and (b) and this subsection

expire December 31,
2036
[
2042
].

SECTION 6. Subchapter G, Chapter 403, Government Code, is

amended by adding Section 403.108 to read as follows:

Sec.

403.108.

TEXAS SEVERANCE TAX REVENUE AND OIL AND

NATURAL GAS (TEXAS STRONG) DEFENSE FUND; GRANT PROGRAM. (a) In

this section:

(1)

"Fund" means the Texas severance tax revenue and

oil and natural gas (Texas STRONG) defense fund under Section

49-g-1, Article III, Texas Constitution.

(2)

"Qualifying county" means a county in which the

amount of oil and gas production taxes collected by the comptroller

during the preceding two state fiscal years is at least 0.5 percent

of the total amount of those taxes collected in the state during

that same period.

(b)

Money in the fund may be appropriated by the legislature

only to:

(1)

the governor for the purpose of implementing,

administering, and funding the grant program established under

Subsection (c);

(2)

the Texas Department of Transportation for the

purpose of making grants under Subchapter C, Chapter 256,

Transportation Code, to a qualifying county or a county in which a

port authority or navigation district is engaged in oil or gas

production, refinement, or export, notwithstanding any other

provision of that subchapter;

(3)

the trusteed programs within the office of the

governor for the purpose of meeting economic development needs in

qualifying counties; and

(4)

the Department of Public Safety for the purposes

of:

(A)

paying the salaries, benefit costs, and other

costs associated with additional full-time equivalent department

employees stationed in qualifying counties;

(B)

paying salary increases to department

employees stationed in qualifying counties; or

(C)

providing additional resources for the

enforcement of commercial motor vehicle safety standards under

Chapter 644, Transportation Code, and the prevention of gang

violence and human trafficking, in qualifying counties.

(c)

Subject to Subsections (d) and (e), the governor by rule

shall:

(1)

establish a grant program using money received

from the fund to address the effects of and needs associated with

significant oil and gas production in this state by providing

financial assistance to nonprofit organizations, public

institutions of higher education, school districts, municipal

utility districts, and other political subdivisions;

(2)

develop an application process for grants made

under the program; and

(3)

prioritize grants for first responders, emergency

and trauma care services, health care and mental health care

services, educational opportunities, water infrastructure

projects, and workforce preparedness needs.

(d)

Subject to Subsection (e), in awarding grants under the

grant program established under Subsection (c), the governor shall

give priority to an applicant located in a qualifying county or a

county in which a port authority or navigation district is engaged

in oil or gas production, refinement, or export.

(e)

In awarding grants for water infrastructure projects

under the grant program established under Subsection (c), the

governor shall give priority to a municipal utility district

located in a qualifying county.

SECTION 7. Section 386.250(b), Health and Safety Code, is

amended to read as follows:

(b) The fund consists of:

(1) the amount of money deposited to the credit of the

fund under:

(A) Section 386.056;

(B) Sections 151.0515 and 152.0215, Tax Code; and

(C) Sections 501.138, 502.358, and 548.5055,

Transportation Code; [
and
]

(2)
money transferred to the fund under Section

49-g(c), Article III, Texas Constitution; and

(3)
grant money recaptured under Section 386.111(d)

and Chapter 391.

SECTION 8. This Act takes effect September 1, 2027, but only

if the constitutional amendment proposed by the 89th Legislature,

Regular Session, 2025, providing for the creation of the Texas

severance tax revenue and oil and natural gas (Texas STRONG)

defense fund, dedicating the money in that fund to benefit areas of

the state significantly affected by oil and gas production, and

providing for the transfer of certain general revenues to that

fund, the economic stabilization fund, and certain other funds and

accounts is approved by the voters. If that amendment is not

approved by the voters, this Act has no effect.