HB188 - 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.

  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.