H.B. No. 188 proposes amendments to the allocation of constitutional transfers of funds, specifically focusing on the Texas severance tax revenue and oil and natural gas (Texas STRONG) defense fund. The bill modifies existing legal language to replace references to the Economic Stabilization Fund and State Highway Fund with provisions for certain funds, including the Texas STRONG defense fund. Key changes include the adjustment of allocations to various funds based on the amount determined under Section 316.092, with a new expiration date set for December 31, 2036. Additionally, the bill introduces a new section that establishes a grant program funded by the Texas STRONG defense fund, aimed at addressing the needs of counties significantly impacted by oil and gas production.

The bill outlines specific uses for the funds, including grants for first responders, healthcare services, educational opportunities, and water infrastructure projects in qualifying counties. It also stipulates that the governor will prioritize grant applications from these counties and develop an application process for the program. The act is set to take effect on September 1, 2027, contingent upon the approval of a related constitutional amendment by voters, which would create the Texas STRONG defense fund and facilitate the transfer of general revenues to it and other designated funds. If the amendment is not approved, the act will have no effect.

Statutes affected:
Introduced: Government Code 316.092, Government Code 316.093, Health and Safety Code 386.250 (Health and Safety Code 386, Government Code 316)
House Committee Report: Government Code 316.092, Government Code 316.093, Health and Safety Code 386.250 (Health and Safety Code 386, Government Code 316)