Huffman’s bill abolishes new 2025 funds unless exempted

The text as introduced · 1,531 words

89R11470 KJE-D

By: Huffman
S.B. No. 2191

A BILL TO BE ENTITLED

AN ACT

relating to the creation and re-creation of funds and accounts, the

dedication and rededication of revenue and allocation of accrued

interest on dedicated revenue, and the exemption of unappropriated

money from use for general governmental purposes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. DEFINITION. In any provision of this Act that

does not amend current law, "state agency" means an office,

institution, or other agency that is in the executive or judicial

branch of state government, has authority that is not limited to a

geographical portion of the state, and was created by the

constitution or a statute of this state. The term does not include

an institution of higher education as defined by Section 61.003,

Education Code.

SECTION 2. ABOLITION OF FUNDS, ACCOUNTS, AND DEDICATIONS.

Except as otherwise specifically provided by this Act, all funds

and accounts created or re-created by an Act of the 89th

Legislature, Regular Session, 2025, that becomes law and all

dedications or rededications of revenue collected by a state agency

for a particular purpose by an Act of the 89th Legislature, Regular

Session, 2025, that becomes law are abolished on the later of August

31, 2025, or the date the Act creating or re-creating the fund or

account or dedicating or rededicating revenue takes effect.

SECTION 3. PREVIOUSLY EXEMPT DEDICATIONS, FUNDS, AND

ACCOUNTS. Section 2 of this Act does not apply to:

(1) statutory dedications, funds, and accounts that

were enacted before the 89th Legislature convened to comply with

requirements of state constitutional or federal law;

(2) dedications, funds, or accounts that remained

exempt from former Section 403.094(h), Government Code, at the time

dedications, accounts, and funds were abolished under that

provision;

(3) increases in fees or other revenue dedicated as

described by this section; or

(4) increases in fees or other revenue required to be

deposited in a fund or account described by this section.

SECTION 4. FEDERAL FUNDS. Section 2 of this Act does not

apply to funds created under an Act of the 89th Legislature, Regular

Session, 2025, for which separate accounting is required by federal

law, except that the funds shall be deposited in accounts in the

general revenue fund unless otherwise required by federal law.

SECTION 5. TRUST FUNDS. Section 2 of this Act does not

apply to trust funds or dedicated revenue deposited to trust funds

created under an Act of the 89th Legislature, Regular Session,

2025, except that the trust funds shall be held in the state

treasury, with the comptroller in trust, or outside the state

treasury with the comptroller's approval.

SECTION 6. BOND FUNDS. Section 2 of this Act does not apply

to bond funds and pledged funds created or affected by an Act of the

89th Legislature, Regular Session, 2025, except that the funds

shall be held in the state treasury, with the comptroller in trust,

or outside the state treasury with the comptroller's approval.

SECTION 7. CONSTITUTIONAL DEDICATIONS, FUNDS, AND

ACCOUNTS. Section 2 of this Act does not apply to funds or accounts

that would be created or re-created by the Texas Constitution or

revenue that would be dedicated or rededicated by the Texas

Constitution under a constitutional amendment proposed by the 89th

Legislature, Regular Session, 2025, or to dedicated revenue

deposited to funds or accounts that would be so created or

re-created, if the constitutional amendment is approved by the

voters.

SECTION 8. ADDITIONAL USES FOR DEDICATED FUNDS OR ACCOUNTS.

Section 2 of this Act does not apply to a newly authorized use of

money in a dedicated fund or dedicated account as provided by an Act

of the 89th Legislature, Regular Session, 2025, to the extent:

(1) the fund or account was exempted from abolition by

an Act of the legislature that became law before January 1, 2025;

and

(2) the newly authorized use is within the scope of the

original dedication of the fund or account.

SECTION 9. REALLOCATION OF INTEREST ACCRUED ON CERTAIN

DEDICATED REVENUE. (a) This section applies only to an account in

the general revenue fund:

(1) any part of which Section 403.095, Government

Code, makes available for certification under Section 403.121,

Government Code; and

(2) that is created or re-created by an Act of the 89th

Legislature, Regular Session, 2025.

(b) Except as provided by this Act, all interest and other

earnings that accrue on all revenue held in an account in the

general revenue fund are available for any general governmental

purpose.

(c) Except as provided by this Act, the comptroller shall

deposit all interest and other earnings that accrue on all revenue

held in an account in the general revenue fund to the credit of the

general revenue fund.

SECTION 10. AMENDMENT OF SECTION 403.095, GOVERNMENT CODE.

Effective September 1, 2025, Sections 403.095(b), (d), and (f),

Government Code, are amended to read as follows:

(b) Notwithstanding any law dedicating or setting aside

revenue for a particular purpose or entity, dedicated revenues that

on August 31, 2027 [ 2025 ], are estimated to exceed the amount

appropriated by the General Appropriations Act or other laws

enacted by the 89th [ 88th ] Legislature are available for general

governmental purposes and are considered available for the purpose

of certification under Section 403.121.

(d) Following certification of the General Appropriations

Act and other appropriations measures enacted by the 89th [ 88th ]

Legislature, the comptroller shall reduce each dedicated account as

directed by the legislature by an amount that may not exceed the

amount by which estimated revenues and unobligated balances exceed

appropriations. The reductions may be made in the amounts and at the

times necessary for cash flow considerations to allow all the

dedicated accounts to maintain adequate cash balances to transact

routine business. The legislature may authorize, in the General

Appropriations Act, the temporary delay of the excess balance

reduction required under this subsection. This subsection does not

apply to revenues or balances in:

(1) funds outside the treasury;

(2) trust funds, which for purposes of this section

include funds that may or are required to be used in whole or in part

for the acquisition, development, construction, or maintenance of

state and local government infrastructures, recreational

facilities, or natural resource conservation facilities;

(3) funds created by the constitution or a court; or

(4) funds for which separate accounting is required by

federal law.

(f) This section expires September 1, 2027 [ 2025 ].

SECTION 11. AMENDMENT OF SECTION 504.6012, TRANSPORTATION

CODE. Effective September 1, 2025, Section 504.6012,

Transportation Code, is amended to read as follows:

Sec. 504.6012. ELIMINATION OF DEDICATED REVENUE ACCOUNTS;

REVENUES IN TRUST. (a) Notwithstanding any other law, not later

than September 30, 2025 [ 2023 ], the comptroller shall eliminate all

dedicated accounts established for specialty license plates and

shall set aside the balances of those dedicated accounts so that the

balances may be appropriated only for the purposes intended as

provided by the dedications.

(b) On and after September 1, 2025 [ 2023 ], the portion of a

fee payable that is designated for deposit to a dedicated account

shall be paid instead to the credit of an account in a trust fund

created by the comptroller outside the general revenue fund. The

comptroller shall administer the trust fund and accounts and may

allocate the corpus and earnings on each account only in accordance

with the dedications of the revenue deposited to the trust fund

accounts.

SECTION 12. EFFECT OF ACT. (a) This Act prevails over any

other Act of the 89th Legislature, Regular Session, 2025,

regardless of the relative dates of enactment, that purports to

create or re-create a special fund or account or to dedicate or

rededicate revenue to a particular purpose, including any fund,

account, or revenue dedication abolished under former Section

403.094, Government Code.

(b) An exemption from the application of Section 403.095,

Government Code, contained in another Act of the 89th Legislature,

Regular Session, 2025, that is exempted from the application of

Section 2 of this Act has no effect.

(c) Revenue that, under the terms of another Act of the 89th

Legislature, Regular Session, 2025, would be deposited to the

credit of a special account or fund shall be deposited to the credit

of the undedicated portion of the general revenue fund unless the

fund, account, or dedication is exempted under this Act.

(d) This Act prevails over any other Act of the 89th

Legislature, Regular Session, 2025, regardless of the relative

dates of enactment, that purports to allocate interest or other

earnings that accrue on revenue held in an account in the general

revenue fund any part of which Section 403.095, Government Code,

makes available for certification under Section 403.121,

Government Code.

SECTION 13. EFFECTIVE DATE. Except as otherwise provided

by this Act:

(1) this Act takes effect immediately if this Act

receives a vote of two-thirds of all the members elected to each

house, as provided by Section 39, Article III, Texas Constitution;

and

(2) if this Act does not receive the vote necessary for

immediate effect, this Act takes effect on the 91st day after the

last day of the legislative session.