HB265 - Relating to the allocation of certain constitutional transfers of money to the economic stabilization fund, the state highway fund, and the Grow Texas fund and to the permissible uses of money deposited to the Grow Texas fund.

  89R809 CJC-D     By: Craddick, Darby H.B. No. 265       A BILL TO BE ENTITLED   AN ACT   relating to the allocation of certain constitutional transfers of   money to the economic stabilization fund, the state highway fund,   and the Grow Texas fund and to the permissible uses of money   deposited to the Grow Texas 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.  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 4.  Section 316.093, Government Code, is amended by   amending Subsections (a), (b), and (d) and adding Subsection (e) to   read as follows:          (a)  Before the comptroller makes transfers for a state   fiscal year in accordance with Section 49-g(c), Article III, Texas   Constitution, the comptroller shall determine whether the sum of   the balance of the fund on the preceding August 31, any projected   transfer to the fund under Section 49-g(b) of that article, [ and ]   any projected transfer to the fund under Section 49-g(c) of that   article in accordance with the allocations for the transfer as   provided by Section 49-g(c-1) of that article , and any increase in   the projected amount of the allocation to the fund under Section   49-g(c-2) of that article as provided by Subsection (c) of this   section is less than the amount determined under Section 316.092   for that state fiscal biennium.          (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 amount   allocated [ allocation ] to the state highway fund provided by   Section 49-g(c-1) [ 49-g(c) ], Article III, Texas Constitution, and   the amount by which the transfer to the economic stabilization fund   under that subsection is reduced and a corresponding amount is   transferred to the Grow Texas fund as provided by Section 49-g(c-3)   of that article, and increase the allocation to the economic   stabilization fund[ , ] in an [ equal ] amount equal to the reduction   of those amounts [ , ] 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. This subsection expires December   31, 2042.          (d)   The adjustment required of the comptroller under   Subsection (c) does not increase the amount by which the allocation   to the economic stabilization fund is reduced and a corresponding   amount is transferred to the Grow Texas fund under Section   49-g(c-3), Article III, Texas Constitution. [ Subsections (a) and   (b) and this subsection expire December 31, 2042. ]           (e)     If the sum described by Subsection (a) is less than the   amount determined under Section 316.092 for a state fiscal biennium   beginning on or after September 1, 2043, the comptroller shall   reduce the amount by which the transfer to the economic   stabilization fund under Section 49-g(c), Article III, Texas   Constitution, is reduced and a corresponding amount is transferred   to the Grow Texas fund as provided by Section 49-g(c-3) of that   article and increase the allocation to the economic stabilization   fund in an amount equal to the reduction of those amounts 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.          SECTION 5.  Subchapter G, Chapter 403, Government Code, is   amended by adding Section 403.108 to read as follows:           Sec.   403.108.     GROW TEXAS GRANT PROGRAM. (a)   In this   section:                 (1)     "Commission" means the Grow Texas fund commission   created under Section 49-g-1(e), Article III, Texas Constitution.                 (2)     "Fund" means the Grow Texas fund established under   Section 49-g-1(a), Article III, Texas Constitution.           (b)     The legislature may appropriate money in the fund to the   comptroller for the purpose of funding grants to applicants   selected by the commission under the program established under   Subsection (c).           (c)     The comptroller and the commission shall jointly   establish a program under which the commission may select   applicants to receive grants provided by the comptroller to   construct or maintain roads, schools, health care facilities, and   other infrastructure in the areas of this state the commission   determines to be significantly affected by oil and gas production.           (d)  The commission shall establish:                 (1)  eligibility criteria for grant applicants;                 (2)  guidelines relating to grant amounts; and                 (3)     procedures for evaluating and approving or denying   grant applications.           (e)  The comptroller shall:                 (1)  establish the procedure for applying for a grant;                 (2)     adopt a form that must be used by an applicant to   apply for a grant; and                 (3)     establish procedures for monitoring the use of a   grant provided under the program and ensuring compliance with any   conditions of a grant.           (f)     The comptroller shall adopt rules to implement and   administer this section.          SECTION 6.  Section 316.092(b), Government Code, is   repealed.          SECTION 7.  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 and use of   money in the Grow Texas fund and allocating certain general   revenues to that fund, the economic stabilization fund, and the   state highway fund is approved by the voters. If that amendment is   not approved by the voters, this Act has no effect.