Relating to the creation and re-creation of funds and accounts, the dedication and rededication of revenue and allocation of accrued interest on dedicated revenue, and the exemption of unappropriated money from use for general governmental purposes.

89(R) HB 4488 - Enrolled version - Bill Text

H.B. No. 4488

AN ACT

relating to the creation and re-creation of funds and accounts, the

dedication and rededication of revenue and allocation of accrued

interest on dedicated revenue, and the exemption of unappropriated

money from use for general governmental purposes.

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

SECTION 1. DEFINITION. In any provision of this Act that

does not amend current law, "state agency" means an office,

institution, or other agency that is in the executive or judicial

branch of state government, has authority that is not limited to a

geographical portion of the state, and was created by the

constitution or a statute of this state. The term does not include

an institution of higher education as defined by Section 61.003,

Education Code.

SECTION 2. ABOLITION OF FUNDS, ACCOUNTS, AND DEDICATIONS.

Except as otherwise specifically provided by this Act, all funds

and accounts created or re-created by an Act of the 89th

Legislature, Regular Session, 2025, that becomes law and all

dedications or rededications of revenue collected by a state agency

for a particular purpose by an Act of the 89th Legislature, Regular

Session, 2025, that becomes law are abolished on the later of August

31, 2025, or the date the Act creating or re-creating the fund or

account or dedicating or rededicating revenue takes effect.

SECTION 3. PREVIOUSLY EXEMPT DEDICATIONS, FUNDS, AND

ACCOUNTS. Section 2 of this Act does not apply to:

(1) statutory dedications, funds, and accounts that

were enacted before the 89th Legislature convened to comply with

requirements of state constitutional or federal law;

(2) dedications, funds, or accounts that remained

exempt from former Section 403.094(h), Government Code, at the time

dedications, accounts, and funds were abolished under that

provision;

(3) increases in fees or other revenue dedicated as

described by this section; or

(4) increases in fees or other revenue required to be

deposited in a fund or account described by this section.

SECTION 4. FEDERAL FUNDS. Section 2 of this Act does not

apply to funds created under an Act of the 89th Legislature, Regular

Session, 2025, for which separate accounting is required by federal

law, except that the funds shall be deposited in accounts in the

general revenue fund unless otherwise required by federal law.

SECTION 5. TRUST FUNDS. Section 2 of this Act does not

apply to trust funds or dedicated revenue deposited to trust funds

created under an Act of the 89th Legislature, Regular Session,

2025, except that the trust funds shall be held in the state

treasury, with the comptroller in trust, or outside the state

treasury with the comptroller's approval.

SECTION 6. BOND FUNDS. Section 2 of this Act does not apply

to bond funds and pledged funds created or affected by an Act of the

89th Legislature, Regular Session, 2025, except that the funds

shall be held in the state treasury, with the comptroller in trust,

or outside the state treasury with the comptroller's approval.

SECTION 7. CONSTITUTIONAL DEDICATIONS, FUNDS, AND

ACCOUNTS. Section 2 of this Act does not apply to funds or accounts

that would be created or re-created by the Texas Constitution or

revenue that would be dedicated or rededicated by the Texas

Constitution under a constitutional amendment proposed by the 89th

Legislature, Regular Session, 2025, or to dedicated revenue

deposited to funds or accounts that would be so created or

re-created, if the constitutional amendment is approved by the

voters.

SECTION 8. ADDITIONAL USES FOR DEDICATED FUNDS OR ACCOUNTS.

Section 2 of this Act does not apply to a newly authorized use of

money in a dedicated fund or dedicated account as provided by an Act

of the 89th Legislature, Regular Session, 2025, to the extent:

(1) the fund or account was exempted from abolition by

an Act of the legislature that became law before January 1, 2025;

and

(2) the newly authorized use is within the scope of the

original dedication of the fund or account.

SECTION 9. ACCOUNTS IN GENERAL REVENUE FUND. Effective on

the later of the effective date of the Act creating or re-creating

the specified account or August 31, 2025, the following accounts,

the revenue deposited to the credit of those accounts, and the

revenue dedicated for deposit to the credit of those accounts are

exempt from Section 2 of this Act and the accounts are created or

re-created in the general revenue fund, if created or re-created by

an Act of the 89th Legislature, Regular Session, 2025, that becomes

law:

(1) the Texas advanced nuclear development fund

created as an account in the general revenue fund by House Bill

No. 14 or similar legislation;

(2) the gulf coast protection account created as an

account in the general revenue fund by House Bill No. 1089 or

similar legislation;

(3) the nonprofit organizations supporting employees

of the Department of Public Safety account created as an account in

the general revenue fund by House Bill No. 3033 or similar

legislation;

(4) the farm winery marketing assistance fund created

as an account in the general revenue fund by House Bill No. 3385 or

similar legislation;

(5) the critical infrastructure emergency response

map fund created as an account in the general revenue fund by House

Bill No. 4341 or similar legislation;

(6) the Quantum University and Business Innovation for

Texas Fund created as an account in the general revenue fund by

House Bill No. 4751 or similar legislation; and

(7) the program fund created as an account in the

general revenue fund by Senate Bill No. 2 or similar legislation.

SECTION 10. SEPARATE FUNDS. Effective on the later of the

effective date of the Act creating or re-creating the specified

fund or August 31, 2025, the following funds, the revenue deposited

to those funds, and the revenue dedicated for deposit to those funds

are exempt from Section 2 of this Act and the funds are created or

re-created as separate funds inside or outside the state treasury,

as specified by the Act creating or re-creating the fund, if created

or re-created by an Act of the 89th Legislature, Regular Session,

2025, that becomes law:

(1) the workforce housing capital investment fund

created as a fund in the state treasury by House Bill No. 4505 or

similar legislation;

(2) the Dementia Prevention and Research Fund created

as a fund in the state treasury by Senate Bill No. 5 or similar

legislation and Senate Joint Resolution No. 3 or similar

legislation;

(3) the Texas water fund administrative fund created

as a fund in the state treasury by Senate Bill No. 7 or similar

legislation;

(4) the Texas Strategic Bitcoin Reserve created as a

fund outside the state treasury by Senate Bill No. 21 or similar

legislation; and

(5) the Texas moving image industry incentive fund

created as a fund outside the state treasury by Senate Bill No. 22

or similar legislation.

SECTION 11. REVENUE DEDICATIONS. Effective on the later of

the effective date of the Act dedicating or rededicating the

specified revenue or August 31, 2025, the following dedications or

rededications of revenue collected for a particular purpose are

exempt from Section 2 of this Act, if dedicated or rededicated by an

Act of the 89th Legislature, Regular Session, 2025, that becomes

law:

(1) the dedication of revenue to the oil and gas

regulation and cleanup fund provided by House Bill No. 106 or

similar legislation;

(2) the dedication of revenue to the state highway

fund provided by House Bill No. 2427 or similar legislation;

(3) the dedication of revenue to the state highway

fund provided by House Bill No. 2763 or similar legislation;

(4) the dedication of revenue to the water resource

management account provided by House Bill No. 3866 or similar

legislation;

(5) the dedication of revenue to the Texas Historical

Commission retail operations fund provided by House Bill No. 4187

or similar legislation;

(6) the dedication of revenue to the historic site

account provided by Senate Bill No. 217 or similar legislation;

(7) the dedication of revenue to the compensation to

victims of crime fund provided by Senate Bill No. 1065 or similar

legislation;

(8) the dedication of revenue to the Texas Department

of Insurance operating account provided by Senate Bill No. 1455 or

similar legislation;

(9) the dedication of revenue to the clean air account

provided by Senate Bill No. 1729 or similar legislation;

(10) the dedication of revenue to the clean air

account provided by Senate Bill No. 1757 or similar legislation;

(11) the dedication of interest income to the ship

channel improvement revolving fund provided by Senate Bill No. 1939

or similar legislation;

(12) the dedication of revenue to the water resource

management account provided by Senate Bill No. 2037 or similar

legislation;

(13) the dedication of revenue to the state highway

fund provided by Senate Bill No. 2722 or similar legislation; and

(14) the dedication of revenue to the game, fish, and

water safety account provided by Senate Bill No. 2801 or similar

legislation.

SECTION 12. REALLOCATION OF INTEREST ACCRUED ON CERTAIN

DEDICATED REVENUE. (a) This section applies only to an account in

the general revenue fund:

(1) any part of which Section 403.095, Government

Code, makes available for certification under Section 403.121,

Government Code; and

(2) that is created or re-created by an Act of the 89th

Legislature, Regular Session, 2025.

(b) Except as provided by this Act, all interest and other

earnings that accrue on all revenue held in an account in the

general revenue fund are available for any general governmental

purpose.

(c) Except as provided by this Act, the comptroller shall

deposit all interest and other earnings that accrue on all revenue

held in an account in the general revenue fund to the credit of the

general revenue fund.

SECTION 13. AMENDMENT OF SECTION 403.095, GOVERNMENT CODE.

Effective September 1, 2025, Sections 403.095(b), (d), and (f),

Government Code, are amended to read as follows:

(b) Notwithstanding any law dedicating or setting aside

revenue for a particular purpose or entity, dedicated revenues that

on August 31,
2027
[
2025
], are estimated to exceed the amount

appropriated by the General Appropriations Act or other laws

enacted by the
89th
[
88th
] Legislature are available for general

governmental purposes and are considered available for the purpose

of certification under Section 403.121.

(d) Following certification of the General Appropriations

Act and other appropriations measures enacted by the
89th
[
88th
]

Legislature, the comptroller shall reduce each dedicated account as

directed by the legislature by an amount that may not exceed the

amount by which estimated revenues and unobligated balances exceed

appropriations. The reductions may be made in the amounts and at

the times necessary for cash flow considerations to allow all the

dedicated accounts to maintain adequate cash balances to transact

routine business. The legislature may authorize, in the General

Appropriations Act, the temporary delay of the excess balance

reduction required under this subsection. This subsection does not

apply to revenues or balances in:

(1) funds outside the treasury;

(2) trust funds, which for purposes of this section

include funds that may or are required to be used in whole or in part

for the acquisition, development, construction, or maintenance of

state and local government infrastructures, recreational

facilities, or natural resource conservation facilities;

(3) funds created by the constitution or a court; or

(4) funds for which separate accounting is required by

federal law.

(f) This section expires September 1,
2027
[
2025
].

SECTION 14. AMENDMENT OF SECTION 403.0956, GOVERNMENT

CODE. Effective September 1, 2025, Section 403.0956, Government

Code, is amended to read as follows:

Sec. 403.0956. REALLOCATION OF INTEREST ACCRUED ON CERTAIN

DEDICATED REVENUE. Notwithstanding any other law, all interest or

other earnings that accrue on all revenue held in an account in the

general revenue fund any part of which Section 403.095 makes

available for certification under Section 403.121 are available for

any general governmental purpose, and the comptroller shall deposit

the interest and earnings to the credit of the general revenue

fund. This section does not apply to:

(1) interest or earnings on revenue deposited in

accordance with Section 51.008, Education Code;

(2) an account that accrues interest or other earnings

on deposits of state or federal money the diversion of which is

specifically excluded by federal law;

(3) the lifetime license endowment account;

(4) the game, fish, and water safety account;

(5) the coastal protection account;

(6) the Alamo complex account;

(7) the artificial reef account;

(8) the sexual assault program fund; [
or
]

(9) the deferred maintenance fund account
; or

(10)

the program fund established under Section

29.353, Education Code
.

SECTION 15. AMENDMENT OF SECTION 504.6012, TRANSPORTATION

CODE. Effective September 1, 2025, Section 504.6012,

Transportation Code, is amended to read as follows:

Sec. 504.6012. ELIMINATION OF DEDICATED REVENUE ACCOUNTS;

REVENUES IN TRUST. (a) Notwithstanding any other law, not later

than September 30,
2025
[
2023
], the comptroller shall eliminate all

dedicated accounts established for specialty license plates and

shall set aside the balances of those dedicated accounts so that the

balances may be appropriated only for the purposes intended as

provided by the dedications.

(b) On and after September 1,
2025
[
2023
], the portion of a

fee payable that is designated for deposit to a dedicated account

shall be paid instead to the credit of an account in a trust fund

created by the comptroller outside the general revenue fund. The

comptroller shall administer the trust fund and accounts and may

allocate the corpus and earnings on each account only in accordance

with the dedications of the revenue deposited to the trust fund

accounts.

SECTION 16. EFFECT OF ACT. (a) This Act prevails over any

other Act of the 89th Legislature, Regular Session, 2025,

regardless of the relative dates of enactment, that purports to

create or re-create a special fund or account or to dedicate or

rededicate revenue to a particular purpose, including any fund,

account, or revenue dedication abolished under former Section

403.094, Government Code.

(b) An exemption from the application of Section 403.095,

Government Code, contained in another Act of the 89th Legislature,

Regular Session, 2025, that is exempted from the application of

Section 2 of this Act has no effect.

(c) Revenue that, under the terms of another Act of the 89th

Legislature, Regular Session, 2025, would be deposited to the

credit of a special account or fund shall be deposited to the credit

of the undedicated portion of the general revenue fund unless the

fund, account, or dedication is exempted under this Act.

(d) This Act prevails over any other Act of the 89th

Legislature, Regular Session, 2025, regardless of the relative

dates of enactment, that purports to allocate interest or other

earnings that accrue on revenue held in an account in the general

revenue fund any part of which Section 403.095, Government Code,

makes available for certification under Section 403.121,

Government Code.

SECTION 17. EFFECTIVE DATE. Except as otherwise provided

by this Act:

(1) this Act takes effect immediately if this Act

receives a vote of two-thirds of all the members elected to each

house, as provided by Section 39, Article III, Texas Constitution;

and

(2) if this Act does not receive the vote necessary for

immediate effect, this Act takes effect on the 91st day after the

last day of the legislative session.

______________________________

______________________________

President of the Senate

Speaker of the House

I certify that H.B. No. 4488 was passed by the House on May 7,

2025, by the following vote: Yeas 119, Nays 18, 1 present, not

voting; and that the House concurred in Senate amendments to H.B.

No. 4488 on May 28, 2025, by the following vote: Yeas 108, Nays 27,

2 present, not voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 4488 was passed by the Senate, with

amendments, on May 26, 2025, by the following vote: Yeas 29, Nays

2.

______________________________

Secretary of the Senate

APPROVED: __________________

Date

__________________

Governor