By: Harris, et al. (Senate Sponsor - Perry, et al.) H.J.R. No. 7
         (In the Senate - Received from the House April 30, 2025;
  May 1, 2025, read first time and referred to Committee on Finance;
  May 26, 2025, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 14, Nays 0; May 26, 2025,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR H.J.R. No. 7 By:  Perry
 
 
HOUSE JOINT RESOLUTION
 
 
  proposing a constitutional amendment to dedicate a portion of the
  revenue derived from state sales and use taxes to the Texas water
  fund and to provide for the allocation and use of that revenue.
         BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 49-d-16, Article III, Texas
  Constitution, as proposed by S.J.R. 75, 88th Legislature, Regular
  Session, 2023, is amended by amending Subsections (c) and (e) and
  adding Subsections (e-1), (e-2), and (e-3) to read as follows:
         (c)  The Texas water fund consists of:
               (1)  money transferred or deposited to the credit of
  the fund under this constitution or by general law, including money
  appropriated by the legislature directly to the fund and money from
  any source transferred or deposited to the credit of the fund
  authorized by this constitution or by general law;
               (2)  any other revenue that the legislature by statute
  dedicates for deposit to the credit of the fund;
               (3)  investment earnings and interest earned on amounts
  credited to the fund;
               (4)  money from gifts, grants, or donations to the
  fund; [and]
               (5)  money returned from any authorized transfer; and
               (6)  money in accounts established in the fund under
  this constitution or by general law.
         (e)  The legislature by general law or by adoption of a
  concurrent resolution approved by a record vote of a majority of the
  members of each house may allocate for transfer to the funds and
  accounts administered by the Texas Water Development Board or that
  board's successor the money deposited to the credit of the Texas
  water fund under Section 7-e, Article VIII, of this constitution.  
  The allocation of money prescribed by a general law or resolution
  under this subsection may not be changed by the legislature during
  the first 10 fiscal years for which the money is allocated by the
  general law or resolution.  Any money deposited to the credit of the
  Texas water fund under Section 7-e, Article VIII, of this
  constitution that is not allocated by a general law or resolution
  under this subsection may be transferred to other funds or accounts
  by the Texas Water Development Board or that board's successor in
  accordance with Subsection (b) of this section.
         (e-1)  During a state of disaster declared under Chapter 418,
  Government Code, or its successor, an allocation made under
  Subsection (e) of this section may be suspended through the budget
  execution process under Chapter 317, Government Code, or its
  successor, or by adoption of a concurrent resolution approved by a
  record vote of a majority of the members of each house.  During a
  suspension of an allocation under this subsection, the money that
  would have been allocated but for the suspension is subject to
  appropriation by the legislature for any purpose.  It is the intent
  of the legislature that any money repurposed under this subsection
  be restored to the Texas water fund when practicable.
         (e-2)  Of the amount of money initially appropriated to the
  Texas water fund, the administrator of the fund shall allocate not
  less than 25 percent to be used only for transfer to the New Water
  Supply for Texas Fund.
         (e-3)  This subsection and Subsections (e), (e-1), and (e-2)
  of this section expire August 31, 2047.
         SECTION 2.  Article VIII, Texas Constitution, is amended by
  adding Section 7-e to read as follows:
         Sec. 7-e.  (a)  Subject to Section 7-d of this article and
  Subsection (b) of this section, in each state fiscal year, the
  comptroller of public accounts shall deposit to the credit of the
  Texas water fund the first $1 billion of the net revenue derived
  from the imposition of the state sales and use tax on the sale,
  storage, use, or other consumption in this state of taxable items
  under Chapter 151, Tax Code, or its successor, that exceeds the
  first $46.5 billion of that revenue coming into the treasury in that
  state fiscal year.
         (b)  The duty of the comptroller of public accounts to make a
  deposit under this section expires August 31, 2047.
         (c)  Money deposited to the credit of the Texas water fund
  under Subsection (a) of this section may not be transferred to the
  New Water Supply for Texas Fund for the purpose of financing the
  construction of infrastructure to transport groundwater that was
  produced from a well in this state and that, at the time of
  production, was not brackish, as that term is defined by general
  law. This subsection applies to the construction of infrastructure
  to transport water produced from a well associated with an aquifer
  storage and recovery project only if the water injected as part of
  the project was groundwater described by this subsection.
         (d)  Notwithstanding Section 49-d-16(b), Article III, of
  this constitution, as proposed by S.J.R. 75, 88th Legislature,
  Regular Session, 2023, the revenue deposited to the credit of the
  Texas water fund under Subsection (a) of this section shall be
  maintained by the administrator of the fund in a separate account in
  the fund and may not be transferred from the fund by the
  administrator except as directed by the legislature pursuant to an
  appropriation made in accordance with Section 6 of this article.
  The administrator of the fund shall transfer the amount
  appropriated by the legislature from the account in accordance with
  the applicable allocations specified by Section 49-d-16, Article
  III, of this constitution, as proposed by S.J.R. 75, 88th
  Legislature, Regular Session, 2023.
         SECTION 3.  The following temporary provision is added to
  the Texas Constitution:
         TEMPORARY PROVISION.  (a)  This temporary provision applies
  to the constitutional amendment proposed by the 89th Legislature,
  Regular Session, 2025, to dedicate a portion of the revenue derived
  from state sales and use taxes to the Texas water fund and to
  provide for the allocation and use of that revenue.
         (b)  Section 7-e, Article VIII, of this constitution takes
  effect September 1, 2027.
         (c)  This temporary provision expires September 1, 2028.
         SECTION 4.  This proposed constitutional amendment shall be
  submitted to the voters at an election to be held November 4, 2025.  
  The ballot shall be printed to permit voting for or against the
  proposition: "The constitutional amendment to dedicate a portion of
  the revenue derived from state sales and use taxes to the Texas
  water fund and to provide for the allocation and use of that
  revenue."
 
  * * * * *