Monitoring the Session

SB 2192

Huffman Fiscal Matters Bill Regulates Pest Control Done For Free

Died in committee

Verdict: Smells

SmellsInitial review
Sen. Joan HuffmanRSenate 17
Why it's charged
Caption mismatch

THE TEXT

…“following services [ for compensation ], including services”…

Bill text, introduced version (I)

The caption says state fiscal matters, but this change pulls people who do pest work without pay into the definition of the regulated pest control business. That is a licensing scope change, not a budget item, and the caption gives no hint of it.

Caption mismatch

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to state fiscal matters.

Caption from analyzed text · version I.

Summary

Caption: “state fiscal matters.” Bill: unpaid pest work joins the regulated pest control business!

This omnibus budget bill lets health, human services and education agencies cut costs by going electronic, outsourcing duties to vendors, extending license periods and tightening benefit eligibility, and it orders Medicaid care coordination streamlining and geographic child-abuse risk mapping. It touches Medicaid, CHIP, TANF and SNAP recipients, school districts, state employees, heavy equipment dealers, pest control workers, ports and dedicated state accounts. On the ground, districts the commissioner certifies as getting less state and local funding than in 2024-2025 may furlough teachers up to seven days, districts may average 23 students in early grades, state insurance contributions drop slightly, leased heavy equipment leaves the special dealer inventory tax, unpaid pest control work comes under licensing, new seaport grant programs start, and surplus money in dedicated accounts, apart from exempt ones such as trust funds, can again be swept into general revenue through 2027.

Corrected Oct 26, 2026 · We checked this summary against the bill text and fixed it.

Labels

Labels: DOORSTOP: 5,201 WORDS. The bill as filed runs 5,201 words, counting the existing law it amends and the text it strikes. The median 89R bill as filed runs 441 words (derived, 8,702 graded bills, snapshot Oct 19, 2026).NEVER GOT A HEARING. Filed Mar 11, 2025 and referred to the Senate Finance committee. No public hearing. The bill died.

Receipt

The receipt

89R-SB2192 · 2025-03-11

SOLD BY

ITEM

relating to state fiscal matters.

WHAT IT DOES

Caption: “state fiscal matters.” Bill: unpaid pest work joins the regulated pest control business!

This omnibus budget bill lets health, human services and education agencies cut costs by going electronic, outsourcing duties to vendors, extending license periods and tightening benefit eligibility, and it orders Medicaid care coordination streamlining and geographic child-abuse risk mapping. It touches Medicaid, CHIP, TANF and SNAP recipients, school districts, state employees, heavy equipment dealers, pest control workers, ports and dedicated state accounts. On the ground, districts the commissioner certifies as getting less state and local funding than in 2024-2025 may furlough teachers up to seven days, districts may average 23 students in early grades, state insurance contributions drop slightly, leased heavy equipment leaves the special dealer inventory tax, unpaid pest control work comes under licensing, new seaport grant programs start, and surplus money in dedicated accounts, apart from exempt ones such as trust funds, can again be swept into general revenue through 2027.

Corrected Oct 26, 2026 · We checked this summary against the bill text and fixed it.

CHARGES

[x] CAPTION MISMATCHanalysis confidence 50%

THE TEXT

…“following services [ for compensation ], including services”…

Bill text, introduced version (I)

The caption says state fiscal matters, but this change pulls people who do pest work without pay into the definition of the regulated pest control business. That is a licensing scope change, not a budget item, and the caption gives no hint of it.

TOTAL

No fiscal note in the loaded record.

HISTORY

  1. Received by the Secretary of the Senate
  2. Filed
  3. Read first time
  4. Referred to Finance
FILED UNDER

SURVEILLANCE STATE

THE TEXT

…“existing risk terrain modeling systems, predictive analytics, or geographic risk assessments”…

Bill text, introduced version (I)

The bill directs the state to use predictive analytics to flag neighborhoods for child maltreatment risk, while barring use of that data to identify a specific family.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Donors

Donors report through Texans for Joan Huffman.

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 27, 2024 to Jun 30, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Money

Missing data does not establish zero giving. Display amounts are rounded.

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal note in the loaded record.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas Senate · Filed Mar 11, 2025

03/24/2025 S Referred to Finance

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 11:01 AM CDT. Grades, charges, quotes and corrections follow the published record.

Senate committee · Finance · Final status: Died in committee

Subjects

Coastal Affairs & Beaches

Education--School Districts

Human Services--Medical Assistance

Interim Studies

Occupational Regulation--Other Trades & Professions

State Finances--Management & Control

MEDICAID

POSTAL SERVICE

COMPTROLLER OF PUBLIC ACCOUNTS

EDUCATION, COMMISSIONER OF

HEALTH & HUMAN SERVICES COMMISSION

STATE LIBRARY & ARCHIVES COMMISSION, TEXAS

TRANSPORTATION, TEXAS DEPARTMENT OF

Text

The text as introduced · 5,201 words

89R12506 CS-D

By: Huffman
S.B. No. 2192

A BILL TO BE ENTITLED

AN ACT

relating to state fiscal matters.

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

ARTICLE 1. STATE FISCAL MATTERS RELATED TO HEALTH AND HUMAN

SERVICES AGENCIES AND STATE AGENCIES ADMINISTERING HEALTH AND HUMAN

SERVICES PROGRAMS

SECTION 1.01. (a) This section applies to any state agency

that receives an appropriation under Article II of the General

Appropriations Act and to any program administered by any of those

agencies.

(b) Notwithstanding any other statute of this state, each

state agency to which this section applies is authorized to reduce

or recover expenditures by:

(1) consolidating any reports or publications the

agency is required to make and filing or delivering any of those

reports or publications exclusively by electronic means;

(2) extending the effective period of any license,

permit, or registration the agency grants or administers;

(3) entering into a contract with another governmental

entity or with a private vendor to carry out any of the agency's

duties;

(4) adopting additional eligibility requirements

consistent with federal law for persons who receive benefits under

any law the agency administers to ensure that those benefits are

received by the most deserving persons consistent with the purposes

for which the benefits are provided, including under the following

laws:

(A) Chapter 62, Health and Safety Code (child

health plan program);

(B) Chapter 31, Human Resources Code (Temporary

Assistance for Needy Families program);

(C) Chapter 32, Human Resources Code (Medicaid

program);

(D) Chapter 33, Human Resources Code

(supplemental nutrition assistance and other nutritional

assistance programs);

(E) Chapter 540, Government Code, as effective

April 1, 2025 (Medicaid managed care); and

(F) Chapter 540A, Government Code, as effective

April 1, 2025 (Medicaid Managed Transportation Services);

(5) providing that any communication between the

agency and another person and any document required to be delivered

to or by the agency, including any application, notice, billing

statement, receipt, or certificate, may be made or delivered by

e-mail or through the Internet; and

(6) modifying and streamlining processes used in:

(A) the conduct of eligibility determinations

for programs listed in Subdivision (4) of this subsection by or

under the direction of the Health and Human Services Commission;

(B) the provision of child and adult protective

services by the Department of Family and Protective Services;

(C) the provision of community health services,

consumer protection services, and mental health services by the

Department of State Health Services; and

(D) the provision or administration of other

services provided or programs operated by the Health and Human

Services Commission or a health and human services agency, as

defined by Section 521.0001, Government Code, as effective April 1,

2025.

SECTION 1.02. Subchapter O, Chapter 540, Government Code,

as effective April 1, 2025, is amended by adding Sections 540.0715,

540.0716, and 540.0717 to read as follows:

Sec. 540.0715. CARE COORDINATION BENEFITS. (a) In this

section, "care coordination" means assisting recipients to develop

a plan of care, including a service plan, that meets the recipient's

needs and coordinating the provision of Medicaid benefits in a

manner that is consistent with the plan of care. The term is

synonymous with "case management," "service coordination," and

"service management."

(b) The commission shall streamline and clarify the

provision of care coordination benefits across Medicaid programs

and services for recipients receiving benefits under a managed care

delivery model. In streamlining and clarifying the provision of

care coordination benefits under this section, the commission shall

at a minimum:

(1) subject to Subsection (c), establish a process for

determining and designating a single entity as the primary entity

responsible for a recipient's care coordination;

(2) evaluate and eliminate duplicative services

intended to achieve recipient care coordination, including care

coordination or related benefits provided:

(A) by a Medicaid managed care organization;

(B) by a recipient's medical or health home;

(C) through a disease management program

provided by a Medicaid managed care organization;

(D) by a provider of targeted case management and

psychiatric rehabilitation services; and

(E) through a program of case management for

high-risk pregnant women and high-risk children established under

Section 22.0031, Human Resources Code;

(3) evaluate and, if the commission determines it

appropriate, modify the capitation rate paid to Medicaid managed

care organizations to account for the provision of care

coordination benefits by a person not affiliated with the

organization; and

(4) establish and use a consistent set of terms for

care coordination provided under a managed care delivery model.

(c) In establishing a process under Subsection (b)(1), the

commission shall ensure that:

(1) for a recipient who receives targeted case

management and psychiatric rehabilitation services, the default

entity to act as the primary entity responsible for the recipient's

care coordination under Subsection (b)(1) is the provider of

targeted case management and psychiatric rehabilitation services;

and

(2) for recipients other than those described by

Subdivision (1), the process includes an evaluation process

designed to identify the provider that would best meet the care

coordination needs of a recipient and that the commission

incorporates into Medicaid managed care program contracts.

Sec. 540.0716. CARE COORDINATOR CASELOAD STANDARDS. (a)

In this section:

(1) "Care coordination" has the meaning assigned by

Section 540.0715.

(2) "Care coordinator" means a person, including a

case manager, engaged by a Medicaid managed care organization to

provide care coordination benefits.

(b) The executive commissioner by rule shall establish

caseload standards for care coordinators providing care

coordination under the STAR+PLUS home and community-based services

supports (HCBS) program.

(c) The executive commissioner by rule may, if the executive

commissioner determines it appropriate, establish caseload

standards for care coordinators providing care coordination under

Medicaid programs other than the STAR+PLUS home and community-based

services supports (HCBS) program.

(d) In determining whether to establish caseload standards

for a Medicaid program under Subsection (c), the executive

commissioner shall consider whether implementing the standards

would improve:

(1) Medicaid managed care organization contract

compliance;

(2) the quality of care coordination provided under

the program;

(3) recipient health outcomes; and

(4) transparency regarding the availability of care

coordination benefits to recipients and interested stakeholders.

Sec. 540.0717. INFORMATION SHARING. (a) In this section:

(1) "Care coordination" has the meaning assigned by

Section 540.0715.

(2) "Care coordinator" has the meaning assigned by

Section 540.0716.

(b) To the extent permitted under applicable federal and

state law enacted to protect the confidentiality and privacy of

patients' health information, Medicaid managed care organizations

shall ensure the sharing of information, including recipient

medical records, among care coordinators and health care providers

as appropriate to provide care coordination benefits. For purposes

of implementing this section, a Medicaid managed care organization

may allow a care coordinator to share a recipient's service plan

with health care providers, subject to the limitations of this

section.

SECTION 1.03. Subchapter B, Chapter 137, Human Resources

Code, is amended by adding Section 137.061 to read as follows:

Sec. 137.061. GEOGRAPHIC RISK MAPPING FOR PREVENTION AND

EARLY INTERVENTION SERVICES. (a) The commission shall use

existing risk terrain modeling systems, predictive analytics, or

geographic risk assessments to:

(1) identify geographic areas that have high risk

indicators of child maltreatment and child fatalities resulting

from abuse or neglect; and

(2) target the implementation and use of prevention

and early intervention services to those geographic areas.

(b) The commission may not use data gathered under this

section to identify a specific family or individual.

SECTION 1.04. If before implementing any provision of this

article a state agency determines that a waiver or authorization

from a federal agency is necessary for implementation of that

provision, the agency affected by the provision shall request the

waiver or authorization and may delay implementing that provision

until the waiver or authorization is granted.

SECTION 1.05. This article takes effect September 1, 2025.

ARTICLE 2. FISCAL MATTERS RELATED TO PUBLIC EDUCATION

SECTION 2.01. (a) This section applies to the Texas

Education Agency, the Texas School for the Blind and Visually

Impaired, the Texas School for the Deaf, and the Teacher Retirement

System of Texas.

(b) Notwithstanding any other statute of this state, each

entity to which this section applies is authorized to reduce or

recover expenditures by:

(1) consolidating any reports or publications the

entity is required to make and filing or delivering any of those

reports or publications exclusively by electronic means;

(2) extending the effective period of any license,

permit, or registration the entity grants or administers;

(3) entering into a contract with another governmental

entity or with a private vendor to carry out any of the entity's

duties;

(4) modifying the services provided to and the

eligibility requirements, including the procedures to determine

eligibility, for persons who receive benefits under any federal or

state law the entity administers to ensure that those benefits are

received by the most deserving persons consistent with the purposes

for which the benefits are provided; and

(5) providing that any communication between the

entity and another person and any document required to be delivered

to or by the entity, including any application, notice, billing

statement, receipt, or certificate, may be made or delivered by

e-mail or through the Internet.

SECTION 2.02. An employee of an entity described by Section

2.01 of this Act is not entitled to an amount from the state for

expenses, including office expenses or reimbursement of office

expenses, per diem, travel, or a salary or salary supplement that

exceeds the amount authorized for those purposes by the General

Appropriations Act.

SECTION 2.03. Section 21.4021(a), Education Code, is

amended to read as follows:

(a) Notwithstanding Section 21.401 and subject to Section

21.4022, the board of trustees of a school district may, in

accordance with district policy, implement a furlough program and

reduce the number of days of service otherwise required under

Section 21.401 by not more than seven [ six ] days of service during a

school year if the commissioner certifies in accordance with

Section 48.010 that the district will be provided with less state

and local funding for that year than was provided to the district

for the 2024-2025 [ 2010-2011 ] school year.

SECTION 2.04. Section 25.112(a), Education Code, is amended

to read as follows:

(a) Except as otherwise authorized by this section, a school

district may not enroll more than a district-wide average of 23 [ 22 ]

students in [ a ] prekindergarten, kindergarten, first, second,

third, and [ or ] fourth grade classes [ class ]. That limitation does

not apply during:

(1) any 12-week period of the school year selected by

the district, in the case of a district whose average daily

attendance is adjusted under Section 48.005(c); or

(2) the last 12 weeks of any school year in the case of

any other district.

SECTION 2.05. Section 28.053(i), Education Code, is amended

to read as follows:

(i) The commissioner shall analyze and adjust, as needed,

the sum of and number of awards to ensure that the purpose of the

program is realized and to account for any budgetary constraints .

SECTION 2.06. Section 48.010, Education Code, is amended to

read as follows:

Sec. 48.010. DETERMINATION OF FUNDING LEVELS. (a) Not

later than July 1 of each year, the commissioner shall determine for

each school district whether the estimated amount of state and

local funding per student in weighted average daily attendance to

be provided to the district under the Foundation School Program for

maintenance and operations for the following school year is less

than the amount provided to the district for the 2024-2025

[ 2010-2011 ] school year. If the amount estimated to be provided is

less, the commissioner shall certify the percentage decrease in

funding to be provided to the district.

(b) In making the determinations regarding funding levels

required by Subsection (a), the commissioner shall:

(1) make adjustments as necessary to reflect changes

in a school district's maintenance and operations tax rate;

(2) for a district required to reduce its local

revenue level under Section 48.257, base the determinations on the

district's net funding levels after deducting any amounts required

to be expended by the district to comply with Chapter 49; and

(3) determine a district's weighted average daily

attendance in accordance with this chapter as it existed on January

1, 2025 [ 2011 ].

SECTION 2.07. Section 825.404(b), Government Code, is

amended to read as follows:

(b) Before November 15 [ 2 ] of each even-numbered year, the

board of trustees, in coordination with the Legislative Budget

Board, shall certify to the comptroller of public accounts for

review and adoption an estimate of the amount necessary to pay the

state's contributions to the retirement system for the following

biennium. For qualifying employees under Subsection (a-1)(1), the

board of trustees shall include only the amount payable by the state

under Subsection (a-1)(1) in determining the amount to be

certified.

SECTION 2.08. Section 1575.202(a), Insurance Code, is

amended to read as follows:

(a) Each state fiscal year, the state shall contribute to

the fund an amount equal to 1.23 [ 1.25 ] percent of the salary of

each active employee.

SECTION 2.09. Section 21.402(c-1), Education Code, is

repealed.

SECTION 2.10. (a) Sections 2.03, 2.04, 2.05, and 2.06 of

this article apply beginning with the 2025-2026 school year.

(b) Sections 2.07 and 2.08 of this article apply beginning

with the state fiscal year that begins September 1, 2025.

ARTICLE 3. MISCELLANEOUS MATTERS

SECTION 3.01. Subchapter A, Chapter 441, Government Code,

is amended by adding Section 441.0135 to read as follows:

Sec. 441.0135. REPORT OF REPORTS. (a) Not later than January

1 of each odd-numbered year, the commission shall submit to the

governor and the Legislative Budget Board a written report

regarding all statutorily required reports prepared by and

submitted to a state agency as defined by Section 441.180. The

commission may consult with other state agencies in preparing the

report. A state agency shall cooperate with the commission in

securing the information necessary for preparing the report. The

commission shall prescribe the method by which a state agency

transmits to the commission information necessary to prepare the

report, and may require the information to be submitted using the

state electronic Internet portal. The report must include for each

statutorily required report:

(1) the title of and the agency preparing the report;

(2) the statutory authority requiring the report;

(3) the recipient of the report;

(4) the deadline for submitting the report;

(5) a brief description of the report; and

(6) an assessment from each recipient of the report

whether the report is necessary.

(b) The report required by Subsection (a) must be:

(1) made available to the public; and

(2) indexed by preparing agency, title of report, and

report recipient.

SECTION 3.02. Section 466.105, Government Code, is amended

to read as follows:

Sec. 466.105. APPLICABILITY OF OTHER LAW. [ (a) A contract

for the acquisition or provision of facilities, supplies,

equipment, materials, or services related to the operation of the

lottery is not subject to:

[ (1) Chapter 2054 or 2254; or

[ (2) Subtitle D, Title 10.

[ (b) ] Notwithstanding the provisions of Title 2, Utilities

Code, the commission may negotiate rates and execute contracts with

telecommunications service providers for the interexchange

services necessary for the operation of the lottery. The

commission may acquire transmission facilities by lease, purchase,

or lease-purchase. The acquisition of transmission facilities must

be done on a competitive bid basis if possible.

SECTION 3.03. Section 662.005(b), Government Code, as

amended by Chapters 109 (S.B. 2214), 765 (H.B. 4504), and 950 (S.B.

1727), Acts of the 88th Legislature, Regular Session, 2023, is

reenacted and amended to read as follows:

(b) Except as provided by Section 662.010, and

notwithstanding Section 659.015 or another law, each of the

following state employees who is required to work on a national or

state holiday that falls on a Saturday or Sunday is entitled to

compensatory time off at the rate of one hour for each hour worked

on the holiday:

(1) an employee of the Department of Family and

Protective Services [ in the statewide intake division who receives

reports of abuse or neglect ];

(2) a peace officer commissioned or appointed, as

applicable, by a state officer or state agency listed under Article

2A.001, Code of Criminal Procedure;

(3) an employee of the Department of Public Safety

who:

(A) performs communications or dispatch services

related to traffic law enforcement; or

(B) is a public security officer, as that term is

defined by Section 1701.001, Occupations Code; [ or ]

(4) an employee of the Parks and Wildlife Department

who performs communications and dispatch services to assist law

enforcement officers commissioned by the Parks and Wildlife

Commission in performing law enforcement duties ;

(5) an employee of [ , or who is employed by ] the Texas

Juvenile Justice Department who:

(A) performs [ to perform ] communication service

duties for the incident reporting center; and

(B) assists [ to assist ] law enforcement officers

appointed by the office of inspector general of the Texas Juvenile

Justice Department in performing investigative duties ; [ , ] or

(6) [ who is employed as ] a security officer providing

security and entry searches for secure correctional facilities

operated by the Texas Juvenile Justice Department[ , ].

SECTION 3.04. Subchapter A, Chapter 2176, Government Code,

is amended by adding Section 2176.007 to read as follows:

Sec. 2176.007. COMPTROLLER STUDY ON MAIL OPERATIONS. (a)

The comptroller shall conduct a study on the mail operations of each

state agency in the executive branch of state government that

receives an appropriation. The study must identify provisions of

law relating to the mailing requirements for the agency that impede

the efficient transmission and receipt of documents by the agency.

(b) In conducting the study, the comptroller shall

collaborate with other state agencies to consider the needs or

concerns specific to those agencies.

(c) Not later than November 1, 2026, the comptroller shall

post the findings of the study conducted under this section on the

comptroller's Internet website.

(d) This section expires September 1, 2027.

SECTION 3.05. Section 1951.003(a), Occupations Code, is

amended to read as follows:

(a) In this chapter, a person is engaged in the "business of

structural pest control" if the person performs, offers to perform,

or advertises for or solicits the person's performance of any of the

following services [ for compensation ], including services

performed as a part of the person's employment:

(1) identifying infestations or making inspections

for the purpose of identifying or attempting to identify

infestations of:

(A) arthropods, including insects, spiders,

mites, ticks, and related pests, wood-infesting organisms,

rodents, weeds, nuisance birds, and any other obnoxious or

undesirable animals that may infest households, railroad cars,

ships, docks, trucks, airplanes, or other structures or their

contents; or

(B) pests or diseases of trees, shrubs, or other

plantings in a park or adjacent to a residence, business

establishment, industrial plant, institutional building, or

street;

(2) making oral or written inspection reports,

recommendations, estimates, or bids with respect to an infestation

described by Subdivision (1); or

(3) making contracts, or submitting bids based on an

inspection for services or performing services designed to prevent,

control, or eliminate an infestation described by Subdivision (1)

by the use of insecticides, pesticides, rodenticides, fumigants,

allied chemicals or substances, or mechanical devices.

SECTION 3.06. Sections 23.1241(a)(1), (2), (7), and (9),

Tax Code, are amended to read as follows:

(1) "Dealer" means a person engaged in the business in

this state of selling[ , leasing, or renting ] heavy equipment. The

term does not include a bank, savings bank, savings and loan

association, credit union, or other finance company. In addition,

for purposes of taxation of a person's inventory of heavy equipment

in a tax year, the term does not include a person who renders the

person's inventory of heavy equipment for taxation in that tax year

by filing a rendition statement or property report in accordance

with Chapter 22.

(2) "Dealer's heavy equipment inventory" means all

items of heavy equipment that a dealer holds for sale at retail [ ,

lease, or rent ] in this state [ during a 12-month period ].

(7) "Sales price" means:

(A) the total amount of money paid or to be paid

to a dealer for the purchase of an item of heavy equipment; or

(B) for a purchase pursuant to a lease or rental

with an option to purchase , the total amount of the lease or rental

payments paid during the tax year in which the purchase occurs plus

any final consideration paid or to be paid to the dealer for the

purchase, excluding interest .

(9) "Total annual sales" means the total of the[ :

[ (A) ] sales price for each sale from a dealer's

heavy equipment inventory in a 12-month period[ ; and

[ (B) lease and rental payments received for each

lease or rental of heavy equipment inventory in a 12-month period ].

SECTION 3.07. Section 23.1241, Tax Code, is amended by

adding Subsection (a-1) and amending Subsection (e) to read as

follows:

(a-1) For purposes of this section, an item of heavy

equipment is not included in a dealer's heavy equipment inventory

if:

(1) the item was included in the dealer's heavy

equipment inventory on January 1 of the preceding tax year and was

not sold by the dealer in that tax year; and

(2) for 30 days or more during the preceding tax year

the item was either leased or rented by the dealer to one or more

persons or used by any person for its intended purposes not related

to demonstrating or testing the equipment for sale, lease, or rent.

(e) A dealer is presumed to be an owner of a dealer's heavy

equipment inventory on January 1 if, in the 12-month period ending

on December 31 of the preceding year, the dealer sold[ , leased, or

rented ] an item of heavy equipment to a person other than a dealer.

The presumption is not rebutted by the fact that a dealer has no

item of heavy equipment physically on hand for sale from the

dealer's heavy equipment inventory on January 1.

SECTION 3.08. Sections 23.1242(b), (e), and (f), Tax Code,

are amended to read as follows:

(b) Except for an item of heavy equipment sold to a dealer,

an item of heavy equipment included in a fleet transaction, an item

of heavy equipment that is the subject of a subsequent sale, or an

item of heavy equipment that is subject to a lease or rental, an

owner or a person who has agreed by contract to pay the owner's

current year property taxes levied against the owner's heavy

equipment inventory shall assign a unit property tax to each item of

heavy equipment sold from a dealer's heavy equipment inventory.

[ In the case of a lease or rental, the owner shall assign a unit

property tax to each item of heavy equipment leased or rented. ] The

unit property tax of each item of heavy equipment is determined by

multiplying the sales price of the item [ or the monthly lease or

rental payment received for the item, as applicable, ] by the unit

property tax factor. [ If the transaction is a lease or rental, the

owner shall collect the unit property tax from the lessee or renter

at the time the lessee or renter submits payment for the lease or

rental. The owner of the equipment shall state the amount of the

unit property tax assigned as a separate line item on an invoice. ]

On or before the 20th day of each month the owner shall, together

with the statement filed by the owner as required by this section,

deposit with the collector an amount equal to the total of unit

property tax assigned to all items of heavy equipment sold[ ,

leased, or rented ] from the dealer's heavy equipment inventory in

the preceding month to which a unit property tax was assigned. The

money shall be deposited by the collector to the credit of the

owner's escrow account for prepayment of property taxes as provided

by this section. An escrow account required by this section is used

to pay property taxes levied against the dealer's heavy equipment

inventory, and the owner shall fund the escrow account as provided

by this subsection.

(e) The comptroller by rule shall adopt a dealer's heavy

equipment inventory tax statement form. Each month, a dealer shall

complete the form regardless of whether an item of heavy equipment

is sold[ , leased, or rented ]. A dealer may use no other form for

that purpose. The statement may include the information the

comptroller considers appropriate but shall include at least the

following:

(1) a description of each item of heavy equipment

sold, [ leased, or rented ] including any unique identification or

serial number affixed to the item by the manufacturer;

(2) the sales price of [ or lease or rental payment

received for ] the item of heavy equipment[ , as applicable ];

(3) the unit property tax of the item of heavy

equipment, if any; and

(4) the reason no unit property tax is assigned if no

unit property tax is assigned.

(f) On or before the 20th day of each month, a dealer shall

file with the collector the statement covering the sale[ , lease, or

rental ] of each item of heavy equipment sold[ , leased, or rented ] by

the dealer in the preceding month. On or before the 20th day of a

month following a month in which a dealer does not sell[ , lease, or

rent ] an item of heavy equipment, the dealer must file the statement

with the collector and indicate that no sales[ , leases, or rentals ]

were made in the prior month. A dealer shall file a copy of the

statement with the chief appraiser and retain documentation

relating to the disposition of each item of heavy equipment sold

[ and the lease or rental of each item of heavy equipment ]. A chief

appraiser or collector may examine documents held by a dealer as

provided by this subsection in the same manner, and subject to the

same conditions, as provided by Section 23.1241(g).

SECTION 3.09. Section 156.251(d), Tax Code, is amended to

read as follows:

(d) An amount equal to the amount of revenue derived from

the collection of taxes imposed by this chapter at a rate of

one-half of one percent shall be allocated in the general revenue

fund to be used for :

(1) media advertising and other marketing activities

of the [ Tourism Division of the ] Texas Economic Development and

Tourism Office; and

(2) the seaport preliminary studies grant program

established under Section 55.0031, Transportation Code [ Department

of Commerce. Section 403.094(h), Government Code, does not apply

to funds described in this section. This subsection takes effect

October 1, 1994 ].

SECTION 3.10. Section 55.002, Transportation Code, is

amended by adding Subsection (b-1) to read as follows:

(b-1) In addition to funding projects under Subsection (a),

the department by rule shall establish a grant program to fund port

security, transportation, or facility projects with money from the

general revenue accounts, bond proceeds if allowed by other law, or

any other money appropriated by the legislature.

SECTION 3.11. Chapter 55, Transportation Code, is amended

by adding Section 55.0031 to read as follows:

Sec. 55.0031. SEAPORT PRELIMINARY STUDIES GRANT PROGRAM.

The department by rule shall establish a program to provide grants

for use in conducting preliminary studies or obtaining permits that

may be required of the grant recipient to receive additional

financial assistance for a port security, transportation, or

facility project.

SECTION 3.12. Section 201.946(d), Transportation Code, is

amended to read as follows:

(d) To the extent money is on deposit in the fund in amounts

that are in excess of the money required by the proceedings

authorizing the obligations and credit agreements to be retained on

deposit, the commission :

(1) shall use the money to retire, before maturity,

the portion of the obligations that are callable; and

(2) may use the money for any purpose for which

obligations may be issued under this subchapter, other than for

toll roads.

SECTION 3.13. Section 23.1241(b-1), Tax Code, is repealed.

SECTION 3.14. The changes in law made by this article that

affect ad valorem taxes apply only to ad valorem taxes imposed for a

tax year beginning on or after January 1, 2026.

SECTION 3.15. The changes in law made by this article

relating to the method of delivery or submission of a notice or

report apply only to a notice or report that is required to be

delivered or submitted on or after the effective date of this Act.

A notice or report required to be delivered or submitted before the

effective date of this Act is governed by the law in effect on the

date the notice or report was required to be delivered or submitted,

and the former law is continued in effect for that purpose.

SECTION 3.16. To the extent of any conflict, this article

prevails over another Act of the 89th Legislature, Regular Session,

2025, relating to nonsubstantive additions to and corrections in

enacted codes.

ARTICLE 4. AMENDMENT OF SECTION 403.095, GOVERNMENT CODE

SECTION 4.01. 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 ].

ARTICLE 5. EFFECTIVE DATE

SECTION 5.01. Except as otherwise provided by this Act,

this Act takes effect immediately if it receives a vote of

two-thirds of all the members elected to each house, as provided by

Section 39, Article III, Texas Constitution. If this Act does not

receive the vote necessary for immediate effect, this Act takes

effect on September 1, 2025.