BILL ANALYSIS

S.B. 1232

By: Nichols

Appropriations

Committee Report (Unamended)

BACKGROUND AND PURPOSE

On November 4, 2014, roughly 80 percent of Texas voters approved the ballot measure known as Proposition 1, which authorized a constitutional amendment providing for a temporary increase in state transportation funding. Under the amendment, a portion of existing oil and gas production tax revenues would be divided evenly between the Economic Stabilization Fund, otherwise known as the Rainy Day Fund, and the State Highway Fund (SHF), with the revenue deposited to the SHF being used for constructing, maintaining, and acquiring rights-of-way for public roadways other than toll roads. This temporary increase is set to end in 2034. S.B. 1232 seeks to postpone the expiration of the Proposition 1 funding increase to December 31, 2042.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B. 1232 amends the Government Code to postpone the expiration date of the temporary increase in state transportation funding provided for by S.J.R. 1, Acts of the 83rd Texas Legislature, 3rd Called Session, 2013, and approved by voters as Proposition 1 in the November 2014 election, which diverted certain oil and gas production tax revenues from the Economic Stabilization Fund (ESF), otherwise known as the Rainy Day Fund, to the State Highway Fund, from December 31, 2034, to December 31, 2042. The bill changes the fiscal year beginning with which the comptroller of public accounts is required to adjust the allocation of those revenues so that, beginning with that fiscal year, the total of those amounts is transferred to the ESF, subject to the biennial cap on the ESF balance, from state fiscal year 2036 to state fiscal year 2044.

EFFECTIVE DATE

September 1, 2023.