89R260 CJC-D
 
  By: Landgraf 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 Subsection (d), 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, 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, and workforce preparedness
  needs.
         (d)  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.
         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.