House Bill No. 265 proposes amendments to the allocation of constitutional transfers of funds to the economic stabilization fund, the state highway fund, and the newly established Grow Texas fund. The bill modifies existing legal language to broaden the scope of funds affected by these transfers, specifically replacing references to only the economic stabilization fund and state highway fund with the term "certain funds." Additionally, it introduces new provisions regarding the Grow Texas fund, including the establishment of a grant program aimed at funding infrastructure projects in areas significantly impacted by oil and gas production.

Key changes include the comptroller's responsibilities in determining fund allocations and adjustments based on specific thresholds, as well as the creation of eligibility criteria and procedures for grant applications under the Grow Texas fund. The bill also repeals a section of the Government Code related to the determination of thresholds for constitutional transfers. Importantly, the act is set to take effect on September 1, 2027, contingent upon voter approval of a related constitutional amendment proposed by the 89th Legislature in 2025. If the amendment is not approved, the bill will have no effect.

Statutes affected:
Introduced: Government Code 316.092, Government Code 316.093 (Government Code 316)
House Committee Report: Government Code 316.092, Government Code 316.093 (Government Code 316)
Engrossed: Government Code 316.092, Government Code 316.093 (Government Code 316)