H.B. No. 2896
 
 
 
 
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 87th
  Legislature, Regular Session, 2021, that becomes law and all
  dedications or rededications of revenue collected by a state agency
  for a particular purpose by an Act of the 87th Legislature, Regular
  Session, 2021, that becomes law are abolished on the later of August
  31, 2021, 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 87th 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 87th Legislature, Regular
  Session, 2021, 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 87th Legislature, Regular Session,
  2021, 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
  87th Legislature, Regular Session, 2021, 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 87th
  Legislature, Regular Session, 2021, 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 87th Legislature, Regular Session, 2021, to the extent:
               (1)  the fund or account was exempted from abolition by
  an Act of the legislature that became law before January 1, 2021;
  and
               (2)  the newly authorized use is within the scope of the
  original dedication of the fund or account.
         SECTION 9.  ACCOUNTS IN GENERAL REVENUE FUND. Effective on
  the later of the effective date of the Act creating or re-creating
  the specified account or August 31, 2021, the following accounts,
  the revenue deposited to the credit of those accounts, and the
  revenue dedicated for deposit to the credit of those accounts, are
  exempt from Section 2 of this Act and the accounts are created or
  re-created in the general revenue fund, if created or re-created by
  an Act of the 87th Legislature, Regular Session, 2021, that becomes
  law:
               (1)  the broadband development account created as an
  account in the general revenue fund by House Bill No. 5 or similar
  legislation;
               (2)  the Brain Institute of Texas research fund created
  as an account in the general revenue fund by House Bill No. 15 or
  similar legislation;
               (3)  an account created in the general revenue fund by
  House Bill No. 211 or similar legislation;
               (4)  the rural veterinarian incentive program account
  created as an account in the general revenue fund by House Bill
  No. 1259 or similar legislation;
               (5)  the barbering and cosmetology school tuition
  protection account created by House Bill No. 1560 or similar
  legislation;
               (6)  the micro-business recovery fund created as an
  account in the general revenue fund by House Bill No. 3271 or
  similar legislation;
               (7)  the consumable hemp products account created as an
  account in the general revenue fund by House Bill No. 3948 or
  similar legislation;
               (8)  the Texas youth livestock show fund created as an
  account in the general revenue fund by House Bill No. 3959 or
  similar legislation;
               (9)  the Texas music incubator account created as an
  account in the general revenue fund by Senate Bill No. 609 or
  similar legislation;
               (10)  the Breeders' Cup Developmental Account created
  as an account in the general revenue fund by Senate Bill No. 704 or
  similar legislation;
               (11)  the Bulk Storage Vessel Performance Standards
  Program Account created by Senate Bill No. 900 or similar
  legislation;
               (12)  an account created in the general revenue fund by
  Senate Bill No. 1137 or similar legislation;
               (13)  the micro-business disaster recovery fund
  created as an account in the general revenue fund by Senate Bill
  No. 1465 or similar legislation; and
               (14)  the opioid abatement account created as an
  account in the general revenue fund by Senate Bill No. 1827 or
  similar legislation.
         SECTION 10.  SEPARATE FUNDS. Effective on the later of the
  effective date of the Act creating or re-creating the specified
  fund or August 31, 2021, the following funds, if created or
  re-created by an Act of the 87th Legislature, Regular Session,
  2021, the revenue deposited to the funds, and the revenue dedicated
  for deposit to the funds, are exempt from Section 2 of this Act, and
  the funds are created or re-created as separate funds inside or
  outside the state treasury, as specified by the Act creating or
  re-creating the fund:
               (1)  the broadband pole replacement fund created as a
  fund in the state treasury by House Bill No. 1505 or similar
  legislation;
               (2)  the state utilities reliability fund created as a
  special fund in the state treasury by House Bill No. 2000 or similar
  legislation;
               (3)  the state utilities reliability revenue fund
  created as a special fund in the state treasury by House Bill
  No. 2000 or similar legislation;
               (4)  the critical infrastructure resiliency fund
  created as a special fund in the state treasury by House Bill
  No. 2275 or similar legislation;
               (5)  the disaster response loan fund created as a fund
  outside the state treasury by House Bill No. 2812 or similar
  legislation;
               (6)  the open burn pit registry fund created as a
  special fund in the state treasury by House Bill No. 3953, House
  Bill No. 3957, or similar legislation;
               (7)  the technology improvement and modernization fund
  created as a special fund in the state treasury by House Bill
  No. 4018 or similar legislation;
               (8)  the broadband development fund created as a
  special fund in the state treasury by Senate Bill No. 5 or similar
  legislation;
               (9)  the small business disaster recovery revolving
  fund created as a special fund outside the state treasury by Senate
  Bill No. 678 or similar legislation;
               (10)  the horse industry escrow account created as a
  trust account outside the state treasury by Senate Bill No. 704 or
  similar legislation;
               (11)  the Texas small and rural community success fund
  created as a trust fund outside the state treasury by Senate Bill
  No. 1465 or similar legislation; and
               (12)  the opioid abatement trust fund created as a
  trust fund outside the state treasury by Senate Bill No. 1827 or
  similar legislation.
         SECTION 11.  REVENUE DEDICATIONS. Effective on the later of
  the effective date of the Act dedicating or rededicating the
  specified revenue or August 31, 2021, the following dedications or
  rededications of revenue collected for a particular purpose are
  exempt from Section 2 of this Act, if dedicated or rededicated by an
  Act of the 87th Legislature, Regular Session, 2021:
               (1)  the dedication of grants and donations to the
  state highway fund provided by House Bill No. 1075 or similar
  legislation;
               (2)  the dedication of certain tax revenue to the
  specialty court account provided by House Bill No. 1256 or similar
  legislation;
               (3)  the dedication of funds to the anthropogenic
  carbon dioxide storage trust fund provided by House Bill No. 1284
  or similar legislation;
               (4)  the dedication of revenue from the fee established
  by House Bill No. 1631 or similar legislation to the game, fish, and
  water safety account;
               (5)  the dedication of municipal sales and use tax
  revenue provided by House Bill No. 1900 or similar legislation;
               (6)  the dedication of revenue provided by House Bill
  No. 1904 or similar legislation;
               (7)  the dedication of revenue to the state highway
  fund provided by House Bill No. 2577 or similar legislation;
               (8)  the dedication of revenue to the designated trauma
  facility and emergency medical services account provided by House
  Bill No. 3514 or similar legislation;
               (9)  the dedication of revenue to the Motor Vehicle
  Crime Prevention Authority provided by House Bill No. 3514 or
  similar legislation;
               (10)  the dedication of revenue to the oil and gas
  regulation and cleanup fund provided by House Bill No. 3973 or
  similar legislation;
               (11)  the dedication of revenue to the State Securities
  Board provided by House Bill No. 4131 or similar legislation;
               (12)  the dedication of revenue provided by House Bill
  No. 4472 or similar legislation;
               (13)  the dedication of revenue provided by Senate Bill
  No. 41 or similar legislation;
               (14)  the dedication of revenue to the Texas mobility
  fund provided by Senate Bill No. 181 or similar legislation;
               (15)  the dedication of grants and donations to the
  state highway fund provided by Senate Bill No. 633 or similar
  legislation;
               (16)  the dedication of revenue provided by Senate Bill
  No. 1263 or similar legislation;
               (17)  the dedication of revenue to the state highway
  fund provided by Senate Bill No. 1728 or similar legislation;
               (18)  the dedication of revenue from penalties imposed
  under Senate Bill No. 2038 or similar legislation to the
  freestanding emergency medical care facility licensing fund; and
               (19)  the dedication of tax revenue provided by Senate
  Bill No. 2089 or similar legislation.
         SECTION 12.  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 87th
  Legislature, Regular Session, 2021.
         (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 13.  AMENDMENT OF SECTION 403.095, GOVERNMENT CODE.  
  Effective September 1, 2021, 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, 2023 [2021], are estimated to exceed the amount
  appropriated by the General Appropriations Act or other laws
  enacted by the 87th [86th] 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 87th [86th]
  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, 2023 [2021].
         SECTION 14.  AMENDMENT OF SECTION 504.6012, TRANSPORTATION
  CODE.  Effective September 1, 2021, 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, 2021 [2019], 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, 2021 [2019], 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 15.  EFFECT OF ACT. (a)  This Act prevails over any
  other Act of the 87th Legislature, Regular Session, 2021,
  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 87th Legislature,
  Regular Session, 2021, 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 87th
  Legislature, Regular Session, 2021, 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 87th
  Legislature, Regular Session, 2021, 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 16.  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.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2896 was passed by the House on April
  20, 2021, by the following vote:  Yeas 146, Nays 0, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 2896 on May 28, 2021, by the following vote:  Yeas 145, Nays 0,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 2896 was passed by the Senate, with
  amendments, on May 24, 2021, by the following vote:  Yeas 30, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor