Texas House Bill HB188

Texas 2025 - 89th Regular

• Filed: 11/12/24

Caption

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.

Impact

The passage of HB188 would have significant implications for Texas' financial management of resources derived from its oil and gas industry. It explicitly sets forth mechanisms for the allocation of funds collected from severance taxes, allowing for important investments in infrastructure, public safety, and economic development within qualifying counties. The governor would play a pivotal role in overseeing these funds and facilitating a grant program intended to assist counties facing the socioeconomic impacts of high oil and gas production. Moreover, this bill also relates to the future potential constitutional amendment that would affect these financial regulations, requiring voter approval.

Summary

House Bill 188 addresses the allocation of certain constitutional transfers of money, specifically targeting the Texas severance tax revenue and the establishment of a new fund, referred to as the Texas severance tax revenue and oil and natural gas (Texas STRONG) defense fund. The bill proposes modifications to the existing Government Code that will facilitate the distribution of funds collected from various oil and gas production taxes for specific state needs. It aims to ensure that these funds are prudently allocated to support economic activities linked to the state's oil and gas sector, thus reinforcing the economic stability of regions heavily impacted by these industries.

Contention

While proponents of HB188 argue that it will bolster local economies by redirecting funds to areas most affected by oil and gas activities, detractors may raise concerns regarding the implications for transparency and control over public funds. There could be contentions over whether local counties receive equitable distribution of funds and whether priorities for grant allocations effectively serve the interests of their communities. Additionally, the various deadlines and rollback provisions may face scrutiny for their potential long-term ramifications on funding stability for local projects and initiatives.

Texas Constitutional Statutes Affected

Government Code

• Chapter 316. Appropriations
  • Section: 092
  • Section: 093

• Chapter 403. Comptroller Of Public Accounts
  • Section: New Section

Health And Safety Code

• Chapter 386. Texas Emissions Reduction Plan
  • Section: 250