89R9587 KJE-D

By: Howard H.J.R. No. 126

A JOINT RESOLUTION

proposing a constitutional amendment dedicating certain general revenue that would otherwise be transferred to the economic stabilization fund to the Texas water fund.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 49-d-16(c), Article III, Texas Constitution, as proposed by S.J.R. 75, 88th Legislature, Regular Session, 2023, is amended 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.

SECTION 2. Section 49-g, Article III, Texas Constitution, is amended by adding Subsection (g-1) and amending Subsection (h) to read as follows:

(g-1) When the comptroller of public accounts acts to prevent the amount in the economic stabilization fund from exceeding the limit in effect for a biennium under Subsection (g) of this section by reducing an amount transferred to the fund from general revenue as provided by Subsection (b) or (c) of this section or by crediting to general revenue interest that is due to the fund as provided by Subsection (i) of this section, the comptroller shall:

(1) determine an amount of general revenue equal to the amount by which the balance of general revenue is increased by the reduction of the transfer from general revenue or the crediting of interest to general revenue; and

(2) transfer to the Texas water fund the lesser of:

(A) the amount determined under Subdivision (1) of this subsection; or

(B) $1 billion, adjusted annually to increase that amount by the lesser of:

(i) the change in the inflation rate, if that rate is greater than zero, in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the United States Department of Labor for the applicable year; or

(ii) two percent.

(h) In preparing an estimate of anticipated revenues for a succeeding biennium as required by Section 49a, Article III, [Section 49a,] of this constitution, the comptroller shall estimate the amount of the transfers that will be made under Subsections (b), (d), [and] (e), and (g-1) of this section. The comptroller shall deduct that amount from the estimate of anticipated revenues as if the transfers were made on August 31 of that fiscal year.

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, dedicating certain general revenue that would otherwise be transferred to the economic stabilization fund to the Texas water fund.

(b) The amendments to Section 49-d-16, as proposed by S.J.R. 75, 88th Legislature, Regular Session, 2023, and Section 49-g, Article III, of this constitution take effect January 1, 2026.

(c) This temporary provision expires January 1, 2027.

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 dedicating certain general revenue that would otherwise be transferred to the economic stabilization fund to the Texas water fund."