Relating to creation of the gulf coast protection account to be administered by the General Land Office.
LowStandard timeline
Low Cost
Effective:2025-05-24
Enforcing Agencies
General Land Office (GLO) • State Auditor's Office
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: May 24, 2025 (Immediate).
Compliance Deadline: Immediate readiness required for procurement tracking; no retroactive compliance for existing operations.
Agency Rulemaking: The GLO is required to adopt rules to administer the account. Expect draft rules in Q3 2025 with final adoption in Q4 2025/Q1 2026. Until rules are finalized, specific disbursement criteria remain in a "regulatory gray zone."
Immediate Action Plan
Update Procurement Monitors: Add the General Land Office (GLO) to your primary bid watch list immediately; this is now the checkbook for the Coastal Texas Study.
Segregate Accounts: Direct finance departments to create specific ledger codes for "Gulf Coast Protection" funds to ensure audit readiness.
Review Insurance: Verify General Liability, USL&H, and Jones Act coverage limits meet federal civil works standards for upcoming bid opportunities.
Monitor Rulemaking: Assign legal counsel to track the *Texas Register* for GLO rules regarding *Section 31.070, Natural Resources Code*.
Operational Changes Required
Contracts
Future contracts with the GLO or Gulf Coast Protection District (GCPD) utilizing these funds must explicitly reference "Coastal Storm Risk Management Projects" per the August 2021 Coastal Texas Study. Crucial: Scopes of work must strictly adhere to the District's geographic boundaries (Harris, Galveston, Chambers, Jefferson, Orange counties) to be eligible for payment. "Out of scope" change orders cannot be legally paid from this specific account.
Hiring/Training
Business development teams must pivot monitoring from USACE portals to GLO procurement channels. Finance teams must be trained to identify this specific funding stream to ensure proper ledger segregation upon receipt.
Reporting & Record-Keeping
The law subjects this account to strict State Auditor oversight. Contractors must maintain segregated accounting records for any funds traceable to this account. Extend document retention policies for these specific contracts to 10+ years to align with federal USACE project lifecycles and potential delayed state audits.
Fees & Costs
There are no new statutory fees or taxes. However, the account is structured to accept private "gifts and donations." Industrial stakeholders in the petrochemical sector should anticipate strategic discussions regarding voluntary contributions to accelerate protection projects around specific assets.
Strategic Ambiguities & Considerations
The statute authorizes funding for projects "necessary or useful" but fails to define the prioritization hierarchy (e.g., whether hard infrastructure like gates takes precedence over ecosystem restoration). Furthermore, the bill does not explicitly cap the percentage of funds the GLO may use for administrative overhead. Businesses must watch the upcoming rulemaking to see how these funds are ring-fenced against agency operating costs.
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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
The bill author has informed the committee that the Texas Legislature has made significant policy and financial commitments to the development of two large infrastructure projects with the U.S. Army Corps of Engineers, which are the Coastal Texas Project and the Sabine Pass to Galveston Bay Coastal Storm Risk Management Program. These projects were established to serve state and national interests by protecting the citizens, environment, and industries along the Texas Gulf Coast. The legislature, in the 87th Regular Session, created the Gulf Coast Protection District as a partner on these projects. The district receives state-appropriated funds through the General Land Office to perform administrative, pre-engineering, and design services and works with the U.S. Army Corps of Engineers at all project levels. As a nonfederal sponsor, the district also matches federal funds for applicable projects. H.B. 1089 seeks to help further these efforts by establishing the gulf coast protection account as a dedicated account to pay for certain expenditures related to qualifying projects.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is expressly granted to the General Land Office in SECTION 1 of this bill.
ANALYSIS
H.B. 1089 amends the Natural Resources Code to establish the gulf coast protection account as a dedicated account in the general revenue fund administered by the General Land Office (GLO) under the bill's provisions and rules adopted by the GLO. The account consists of the following:
·money from gifts, donations, and grants; and
·money appropriated, credited, or transferred to the account by the legislature.
H.B. 1089 restricts the use of money in the account to payment for expenditures that:
·are necessary to fulfill nonfederal sponsor obligations under agreements with the U.S. Army Corps of Engineers for implementing projects included in the plan recommended by the Coastal Texas Protection and Restoration Feasibility Study Final Report and Final Environmental Impact Statement dated August 2021 issued by the Galveston District, Southwestern Division, of the U.S. Army Corps of Engineers and the GLO;
·comply with the terms of a local cooperation agreement executed by the GLO and the Gulf Coast Protection District; and
·are for the following projects:
oprojects that are necessary or useful for the protection of the portion of the gulf coast located within the district's territory; or
oprojects that would benefit the district and are designated as Coastal Storm Risk Management Projects within the Coastal Texas Study.
The bill establishes a legislative finding that the expenditure of money in the account in accordance with these provisions of the bill serves a public purpose. The bill subjects the expenditure of money in the account to audit by the state auditor.
EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
Honorable Cody Harris, Chair, House Committee on Natural Resources
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB1089 by Paul (Relating to creation of the gulf coast protection account to be administered by the General Land Office.), As Introduced
The fiscal implications of the bill cannot be determined because the amounts and timing of any appropriations, gifts, grants, or donations for the new Gulf Coast Protection Account are unknown at this time.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would amend the Natural Resources Code to create the Gulf Coast Protection Account as a dedicated account in the state treasury inside the General Revenue Fund that would be administered by the General Land Office (GLO). The account would consist of gifts, donations, and grants; and funds appropriated, credited, or transferred by the Legislature.
The bill would require GLO to use the Gulf Coast Protection Account to pay for expenditures that are necessary to fulfill nonfederal sponsor obligations under agreements with the United States Army Corps of Engineers for implementing projects included in the plan recommended by the Coastal Texas Protection and Restoration Feasibility Study Final Report and Final Environmental Impact Statement dated August 2021 issued by the Galveston district; to comply with the terms of a local cooperation agreement executed by GLO and the Gulf Coast Protection District; for projects that are necessary or useful for the protection of the portion of the gulf coast located within the territory of the Gulf Coast Protection District; or for projects that would benefit the Gulf Coast Protection District and are designated as Coastal Storm Risk Management Projects within the Coastal Texas Study.
Based on information provided by GLO and the Comptroller of Public Accounts, the fiscal impact cannot be determined because the amounts and timing of any appropriations, gifts, grants, or donations for the Gulf Coast Protection Account are unknown at this time.
Based on information provided by GLO and the State Auditor's Office, it is assumed that any costs resulting from implementing the provisions of the the bill could be absorbed using current resources.
This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either in, with, or outside the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td >
304 Comptroller of Public Accounts, 305 General Land Office and Veterans' Land Board, 308 State Auditor's Office
LBB Staff: b > td >
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Related Legislation
Explore more bills from this author and on related topics
HB1089 establishes the Gulf Coast Protection Account, the dedicated state funding vehicle for the multi-billion dollar "Ike Dike" and Coastal Texas Study. This legislation immediately impacts heavy civil contractors, engineering firms, and industrial stakeholders by formalizing the procurement channel through the General Land Office (GLO) for non-federal project shares. Implementation Timeline Effective Date: May 24, 2025 (Immediate).
Q
Who authored HB1089?
HB1089 was authored by Texas Representative Dennis Paul during the Regular Session.
Q
When was HB1089 signed into law?
HB1089 was signed into law by Governor Greg Abbott on May 24, 2025.
Q
Which agencies enforce HB1089?
HB1089 is enforced by General Land Office (GLO) and State Auditor's Office.
Q
How urgent is compliance with HB1089?
The compliance urgency for HB1089 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB1089?
The cost impact of HB1089 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does HB1089 address?
HB1089 addresses topics including coastal affairs & beaches, disaster preparedness & relief, special districts & authorities, special districts & authorities--miscellaneous and state finances.
Legislative data provided by LegiScanLast updated: November 25, 2025
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