LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 28, 2025 TO: Honorable Greg Bonnen, Chair, House Committee on Appropriations FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB188 by Landgraf (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.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend Subchapter H, Chapter 316, Government Code (Allocation of Transfers to Economic Stabilization Fund (ESF) and State Highway Fund (SHF)) 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 uses of money deposited to the defense fund.The bill would amend Sections 316.092 and 316.093 to reduce the allocation of constitution transfers of money under certain criteria to the SHF, oil and gas regulation and cleanup account, the Texas emissions reduction plan fund, and the defense fund and increase the allocation to the ESF by the same amount until December 31, 2036. The bill would require the allocation reserved for the defense fund to end and be transferred to ESF and the same allocation reserved for SHF to stay in the SHF beginning September 1, 2037.This bill would add Government Code Section 403.108 relating to the defense fund created under Section 49-g-1, Article III, Texas Constitution. The bill would define a qualifying county as one in which the amount of oil and natural gas production taxes collected during the previous two fiscal years is at least 0.5 percent of the amount of the taxes collected in the state during the same period.Money in the defense fund could be appropriated by the Legislature only to:1) the Governor for the purpose of implementing, administering, and funding the grant program to provide financial assistance to nonprofit organizations, public institutions of higher education, school districts, other political subdivisions with priority given to certain services and social needs and to applicants located in certain qualifying counties;2) the Texas Department of Transportation for the purposes of making grants to a qualifying county or a county in which a port authority or navigation district is engaged in oil and gas production, refinement, or export;3) the trusteed programs within the office of the Governor for the purpose of meeting the economic development needs in qualifying counties; and4) the Department of Public Safety for the purposes of pay the salaries, benefit costs, and other costs associated with the department employees stationed in qualifying counties.The bill would amend Section 386.250, Health and Safety Code (Texas Emissions Reduction Plan) to include the transfer of money to the Fund 1201 - Texas Emissions Reduction Plan Trust authorized under Section 49-g(c), Article III, Texas Constitution.The bill would take effect September 1, 2027, provided voters approve the necessary constitutional amendment (HJR 47, or similar); if the constitutional amendment is not approved, this bill would have no effect.The bill, in and of itself, has no significant fiscal impact unless the corresponding constitutional amendment (HJR 47) is adopted. The fiscal impact of the bill are shown in the fiscal note for HJR 47. Local Government ImpactNo significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, KK, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 28, 2025
TO: Honorable Greg Bonnen, Chair, House Committee on Appropriations FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB188 by Landgraf (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.), As Introduced
TO: Honorable Greg Bonnen, Chair, House Committee on Appropriations
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB188 by Landgraf (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.), As Introduced
Honorable Greg Bonnen, Chair, House Committee on Appropriations
Honorable Greg Bonnen, Chair, House Committee on Appropriations
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB188 by Landgraf (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.), As Introduced
HB188 by Landgraf (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.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend Subchapter H, Chapter 316, Government Code (Allocation of Transfers to Economic Stabilization Fund (ESF) and State Highway Fund (SHF)) 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 uses of money deposited to the defense fund.The bill would amend Sections 316.092 and 316.093 to reduce the allocation of constitution transfers of money under certain criteria to the SHF, oil and gas regulation and cleanup account, the Texas emissions reduction plan fund, and the defense fund and increase the allocation to the ESF by the same amount until December 31, 2036. The bill would require the allocation reserved for the defense fund to end and be transferred to ESF and the same allocation reserved for SHF to stay in the SHF beginning September 1, 2037.This bill would add Government Code Section 403.108 relating to the defense fund created under Section 49-g-1, Article III, Texas Constitution. The bill would define a qualifying county as one in which the amount of oil and natural gas production taxes collected during the previous two fiscal years is at least 0.5 percent of the amount of the taxes collected in the state during the same period.Money in the defense fund could be appropriated by the Legislature only to:1) the Governor for the purpose of implementing, administering, and funding the grant program to provide financial assistance to nonprofit organizations, public institutions of higher education, school districts, other political subdivisions with priority given to certain services and social needs and to applicants located in certain qualifying counties;2) the Texas Department of Transportation for the purposes of making grants to a qualifying county or a county in which a port authority or navigation district is engaged in oil and gas production, refinement, or export;3) the trusteed programs within the office of the Governor for the purpose of meeting the economic development needs in qualifying counties; and4) the Department of Public Safety for the purposes of pay the salaries, benefit costs, and other costs associated with the department employees stationed in qualifying counties.The bill would amend Section 386.250, Health and Safety Code (Texas Emissions Reduction Plan) to include the transfer of money to the Fund 1201 - Texas Emissions Reduction Plan Trust authorized under Section 49-g(c), Article III, Texas Constitution.The bill would take effect September 1, 2027, provided voters approve the necessary constitutional amendment (HJR 47, or similar); if the constitutional amendment is not approved, this bill would have no effect.The bill, in and of itself, has no significant fiscal impact unless the corresponding constitutional amendment (HJR 47) is adopted. The fiscal impact of the bill are shown in the fiscal note for HJR 47.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK, SD
JMc, KK, SD