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Funds Consolidation: Limits on New General Revenue Accounts, Special Funds and Dedications of Revenue

Issued: June 26, 2007
Updated: July 16, 2021 – View Changes

FPP A.046

Details

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Contacts

For questions, please contact Samuel Miller at samuel.miller@cpa.texas.gov or (512) 936-5870 or your designated appropriation control officer.

Overview

Applicable to

State agencies and four-year institutions of higher education.

Summary

House Bill 2896, 87th Legislature, Regular Session, limits the number of new General Revenue (GR) accounts, special funds and dedications of revenue.

Unless specifically exempted by HB 2896, funds or accounts created or recreated and revenues dedicated or rededicated by the Legislature during the regular session are abolished and will not become effective Sept. 1, 2021. See Section 2 of HB 2896.

HB 2896 became effective June 16, 2021, and supersedes any other legislation that authorized or created a special fund or account, or dedicated or rededicated revenue for a particular purpose. Funds, accounts and revenue dedications approved by the 87th Legislature, Regular Session, but abolished by HB 2896, will not become effective.

Exemptions

HB 2896 does not apply to:

  • Institutions of higher education, as defined by Education Code, Section 61.003.
  • Statutory dedications, funds or accounts enacted before the 87th Legislature convened, or designed to comply with constitutional or federal requirements.
  • Dedications, funds or accounts previously exempted from former Texas Government Code, Section 403.094(h), increases in fees or other revenue covered under Section 3 or newly authorized use of or name change to a dedicated fund, account or revenue covered under Section 8 of HB 2896.

In addition, funds and accounts created by approval of a constitutional amendment, pledged for payment of a bond, requiring separate accounting by federal law, dedicating revenue from license plates or established in trust are exempted.

See Funds, Accounts and Revenue Dedications Exempted by the 87th Legislature for a list of funds, accounts and revenue dedications that were exempted and will be created.

Procedure for agencies

Revenues not exempted that otherwise would have been deposited to a special fund or account authorized by the 87th Legislature should be deposited to unappropriated GR (0001). If your agency received an appropriation of newly dedicated revenue or from a new fund or account in the General Appropriations Act, but the dedication, fund or account was abolished, the appropriation will be established in GR (0001).

Conversely, if your agency received an appropriation of revenue in GR (0001) that was dedicated to a new fund or account by the funds consolidation bill, the appropriation will be established in the new fund or account.

Per section 13 of HB 2896, the Legislature can reduce the amount of revenues exceeding appropriations in a dedicated account to be made available for general governmental purposes on Aug. 31, 2021. Section 13 amends Texas Government Code, Section 403.095 (b), (d) and (f) and becomes effective Sept. 1, 2021.

Funds, Accounts and Revenue Dedications Exempted by the 87th Legislature

The following funds, accounts and revenue dedications were exempted in HB 2896 and will be created:

Administering Agency HB 2896
Section
Related Bill Effective Date Fund or Account Name and Number/Revenue Information
304 Comptroller of Public Accounts9HB 56/15/2021New GR Account Broadband Development
529 Health and Human Services Commission5HB 189/1/2021Prescription Drug Savings Trust outside of the state’s treasury
902 Comptroller of Public Accounts, 300 Office of the Governor11HB 12569/1/2021Dedicates 1% of mixed beverage gross receipts and mixed beverage sales taxes to GR Account 5184 - Specialty Court
781 Higher Education Coordinating Board9HB 12599/1/2021New GR Account Rural Veterinary Incentive
455 Railroad Commission11HB 12846/9/2021Dedicates administrative and civil penalties for violations related to injection wells to Fund 0827 - Anthropogenic Carbon Dioxide Storage Trust
304 Comptroller of Public Accounts10HB 15059/1/2021New Broadband Pole Replacement Fund
452 Department of Licensing and Regulation9HB 15609/1/2021New GR Account Barbering and Cosmetology School Tuition Protection
809 Preservation Board5HB 16779/1/2021New dedication of donation revenue to 0879 Capitol Local Trust for a Texas police service animals monument
902 Comptroller of Public Accounts, 405 Department of Public Safety11HB 19009/1/2021Dedication in GR, to the Department of Public Safety, of sales tax due a defunding municipality
580 Water Development Board11HB 19049/1/2021Permits deposit of non-constitutional revenue from Fund 0302 Water Infrastructure to constitutional Fund 0371 Water Development Fund II
477 Commission on State Emergency Communications4HB 29119/1/2021New Next Generation 9-1-1 Service Fund
902 Comptroller of Public Accounts11HB 35149/1/2021Dedicates new insurance penalty to GR Account 5111 - Designated Trauma Facility and EMS, and to Motor Vehicle Crime Prevention Authority, Agency 368
551 Department of Agriculture9HB 39596/8/2021New GR Account Texas Youth Livestock Show
313 Department of Information Resources10HB 40186/18/2021New Technology Improvement and Modernization
608 Department of Motor Vehicles 14HB 40809/1/2021New Autism Awareness license plates deposited to Fund 0802 - License Plate Trust
902 Comptroller of Public Accounts, 582 Commission on Environmental Quality, 601 Department of Transportation11HB 44729/1/2021Changes deposit of certain motor vehicle title fees from Fund 0365 - Mobility to the Texas Emission Reduction Plan Trust outside the treasury and reimburses Fund 0365 from Fund 0006 - State Highway. Dedicates up to 35% of the revenue and all of the unencumbered balance from the TERP Trust to Fund 0006
902 Comptroller of Public Accounts, 211 Court of Criminal Appeals, 212 Office of Court Administration11SB 411/1/2022Dedicates new civil court fees to GR Account 5157 - Statewide Electronic Filing System and GR Account 0540 - Judicial and Court Personnel Training
902 Comptroller of Public Accounts11SB 1819/1/2021Dedicates new fine for prevention of driver’s license suspension related to certain drug charges to Fund 0365 - Mobility
300 Office of the Governor9SB 6099/1/2021New GR Account Texas Music Incubator
601 Department of Transportation11SB 6339/1/2021Dedicates donations for the Davis Mountains Scenic Loop Highway marker to Fund 0006 - State Highway
300 Office of the Governor10SB 6789/1/2021New Small Business Disaster Recovery Revolving Trust held at the Safekeeping Trust Company
582 Commission on Environmental Quality9SB 9009/1/2021New GR Account Performance Standards for Safety at Storage Vessels Program
608 Department of Motor Vehicles 14SB 11239/1/2021New Family First license plates deposited to Fund 0802 - License Plate Trust
529 Health and Human Services Commission9SB 11379/1/2021New GR Account Hospital Price Disclosure Administrative Penalty
300 Office of the Governor9, 10SB 1465, HB 32716/18/2021New GR Account Micro-Business Disaster Recovery and new Texas Small and Rural Community Success Fund outside of the state’s treasury
902 Comptroller of Public Accounts, 930 Texas Treasury Safekeeping Trust Company5, 9, 10SB 18276/16/2021New GR Account Opioid Abatement and new Opioid Abatement Trust outside of the state’s treasury
529 Health and Human Services Commission11SB 20389/1/2021New dedication of administrative penalty on freestanding medical facilities to the Freestanding Emergency Medical Care Facility Licensing Fund 0373

Items NOT Exempted

Unless specifically exempted by HB 2896, funds or accounts created or recreated and revenues dedicated or rededicated by the Legislature during the regular session are abolished. The following were not exempted in HB 2896, will not be created, and any revenue will be deposited to undedicated GR (0001):

  • HB 1033 – New dedicated administrative fee and penalties
  • HB 2633 – GR Account Trafficked Persons
  • HB 3271 – GR Account Capital Access
  • SB 248 – New dedicated permit and application fees
  • SB 770 – Self Sufficiency Fund
Changes to this Document
Date Updates
07/16/2021 Updated to reflect changes by the 87th Legislature
07/19/2019 Updated to reflect changes by the 86th Legislature
07/21/2017 Updated to reflect changes by the 85th Legislature