HB 265

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,
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,
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
(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
(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
(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
(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
(1)  establish the procedure for applying for a grant;
(2)  adopt a form that must be used by an applicant to
(3)  establish procedures for monitoring the use of a
grant provided under the program and ensuring compliance with any
(f)  The comptroller shall adopt rules to implement and
SECTION 6.  Section 316.092(b), Government Code, is
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.