SB1939

Regular Session

Relating to the ship channel improvement revolving fund.

LowStandard timeline

Low Cost

Effective:2025-09-01

Enforcing Agencies

Comptroller of Public Accounts • Texas Department of Transportation

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025.
Compliance Deadline: N/A. This legislation governs internal state accounting; no private sector action is required.
Agency Rulemaking: None required. The retention of interest is self-executing by the Comptroller’s office.

Immediate Action Plan

Archive: File this memo under "Infrastructure Funding / State Appropriations."
Notify Business Development: Inform teams bidding on marine construction or dredging that SCIRF liquidity is projected to stabilize/increase post-2025.
Monitor: Watch TxDOT agendas starting Q4 2025 for new funding opportunities utilizing the accrued interest.

Operational Changes Required

Contracts

No immediate amendments required.

However, for members engaged in Public-Private Partnerships (P3) with Navigation Districts or Port Authorities, this legislation stabilizes the counterparty's funding source. Future agreements relying on SCIRF loans will benefit from a more robust capital pool.

Hiring/Training

None.

No updates to employee handbooks, safety protocols, or compliance training are necessary.

Reporting & Record-Keeping

None.

This bill places the burden of accounting solely on the Comptroller of Public Accounts.

Fees & Costs

No direct impact.

This bill does not authorize new fees or taxes. It strictly concerns the allocation of interest earnings on existing state funds.

Strategic Ambiguities & Considerations

While the statute protects the fund's interest, the Legislative Budget Board notes that the fund remains subject to "funds consolidation review."

The Risk: In the event of a state budget shortfall, the Legislature retains the authority via the General Appropriations Act to sweep these funds, overriding this statute.
The Watch Item: Members should monitor the Texas Transportation Commission. As the fund balance grows via retained interest, we anticipate TxDOT may issue new "Calls for Projects." The criteria for these future disbursements remain at TxDOT's discretion.

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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.

Legislative Timeline

This bill's path through the Texas Legislature

TopicsTransportation Transportation--miscellaneous Water Water--navigation & Ports State Highway Fund Comptroller of Public Accounts

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

Senate Research Center	S.B. 1939
89R7838 AND-F	By: Hinojosa, Juan "Chuy"
	Transportation
	3/20/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The Ship Channel Improvement Revolving Fund (SCIRF) is a revolving loan fund created in 2017 by the 85th Texas Legislature under S.B. 28 (85R), to allow the Texas Transportation Commission to provide flexible, low-interest loans to deepen or widen congressionally approved ship channel projects. During the 88th Legislative Session (2023), the Texas Legislature funded the SCIRF for the first time with a $400 million appropriation to the fund. Currently, the SCIRF is an account in the General Revenue Fund. S.B. 1939 seeks to move the SCIRF to a separate account within the State Highway Fund (SHF) by amending Section 56.002(a) of the Transportation Code. The bill would also transfer the unencumbered balance of the SCIRF to new SHF account created by this bill. This will ensure that all interest or other earnings that accrue on all revenue held in the SCIRF remain in the SCIRF and is not deposited to the General Revenue Fund.

As proposed, S.B. 1939 amends current law relating to the ship channel improvement revolving fund.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 56.002(a), Transportation Code, to provide that the ship improvement revolving fund is a separate account in the state highway fund, rather than an account in the general revenue fund.

SECTION 2. Requires the Comptroller of Public Accounts of the State of Texas, on the effective date of this Act, to transfer the unencumbered balance of the ship channel improvement revolving fund established under Chapter 56 (Funding of Ship Channel Improvements), Transportation Code, to an account of the same name in the state highway fund.

SECTION 3. Effective date: upon passage or September 1, 2026.

Senate Authors

Sen. Juan HinojosaDemocrat · Primary Author

House Sponsor

Rep. Mary PerezDemocrat · Primary Sponsor

Bill Text(with markup)

S.B. No. 1939

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the ship channel improvement revolving fund.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 403.0956, Government Code, is amended to
	read as follows:
	Sec. 403.0956. REALLOCATION OF INTEREST ACCRUED ON CERTAIN
	DEDICATED REVENUE. Notwithstanding any other law, all interest or
	other earnings that accrue on all revenue held in an account in the
	general revenue fund any part of which Section 403.095 makes
	available for certification under Section 403.121 are available for
	any general governmental purpose, and the comptroller shall deposit
	the interest and earnings to the credit of the general revenue fund.
	This section does not apply to:
	(1) interest or earnings on revenue deposited in
	accordance with Section 51.008, Education Code;
	(2) an account that accrues interest or other earnings
	on deposits of state or federal money the diversion of which is
	specifically excluded by federal law;
	(3) the lifetime license endowment account;
	(4) the game, fish, and water safety account;
	(5) the coastal protection account;
	(6) the Alamo complex account;
	(7) the artificial reef account;
	(8) the sexual assault program fund; [or]
	(9) the deferred maintenance fund account; or
	(10) the ship channel improvement revolving fund.
	SECTION 2. 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 September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 25, 2025

TO:	Honorable Robert Nichols, Chair, Senate Committee on Transportation

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB1939 by Hinojosa, Juan "Chuy" (Relating to the ship channel improvement revolving fund.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any revenue implications associated with the bill would be insignificant.

Note: 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 fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 601 Department of Transportation

LBB Staff:

JMc, AAL, GDZ, TG

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Frequently Asked Questions

Common questions about SB1939

What does Texas SB1939 do?

SB1939 is a fiscal governance measure that prohibits the Texas Comptroller from sweeping interest earned on the Ship Channel Improvement Revolving Fund (SCIRF) into the General Revenue Fund. While this legislation imposes no new regulatory burdens or reporting requirements on private industry, it secures the long-term purchasing power of state funds used to finance deep-draft channel projects, directly benefiting maritime, logistics, and industrial members dependent on port infrastructure. Implementation Timeline Effective Date: September 1, 2025.

Who authored SB1939?

SB1939 was authored by Texas Senator Juan Hinojosa during the Regular Session.

When was SB1939 signed into law?

SB1939 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce SB1939?

SB1939 is enforced by Comptroller of Public Accounts and Texas Department of Transportation.

How urgent is compliance with SB1939?

The compliance urgency for SB1939 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB1939?

The cost impact of SB1939 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does SB1939 address?

SB1939 addresses topics including transportation, transportation--miscellaneous, water, water--navigation & ports and state highway fund.

Legislative data provided by LegiScanLast updated: November 25, 2025

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