TX HB265

Modifies the allocation of constitutional transfers among three funds: the Economic Stabilization Fund (rainy day fund), State Highway Fund, and the new Grow Texas Fund

Establishes the Grow Texas Grant Program, administered jointly by the comptroller and the Grow Texas Fund Commission, to provide grants for constructing or maintaining roads, schools, health care facilities, and other infrastructure in areas significantly affected by oil and gas production

Requires proportionate reductions to State Highway Fund and Grow Texas Fund allocations when the Economic Stabilization Fund balance falls below the statutory threshold, with redirected amounts going to the Economic Stabilization Fund

Commission responsibilities include establishing eligibility criteria for grant applicants, setting grant amount guidelines, and creating procedures for evaluating and approving grant applications

Takes effect September 1, 2027, contingent upon voter approval of a related constitutional amendment proposed by the 89th Legislature creating the Grow Texas Fund