85R9784 CJC-D By: Workman H.J.R. No. 101 A JOINT RESOLUTION proposing a constitutional amendment dedicating a portion of the revenue derived from the state sales and use tax to the Texas Water Development Fund II. BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Article VIII, Texas Constitution, is amended by adding Section 7-e to read as follows: Sec. 7-e. (a) Subject to Subsections (b), (e), and (f) of this section, in each state fiscal year, the comptroller of public accounts shall deposit to the credit of a separate account in the Texas Water Development Fund II $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 $30.5 billion of that revenue coming into the treasury in that state fiscal year. For purposes of determining when $30.5 billion of that revenue has come into the treasury in a state fiscal year, the comptroller of public accounts shall include revenue from the same source coming into the treasury that, under Section 7-c of this article, is required to be deposited to the credit of the state highway fund in each state fiscal year. (b) Notwithstanding Subsection (a) of this section, the comptroller of public accounts may not make a deposit required under that subsection if, as a result of the deposit, the balance of the Texas Water Development Fund II would exceed $4 billion. (c) Money deposited to the credit of the Texas Water Development Fund II under this section may be used by the Texas Water Development Board or that board's successor in function only for constructing and operating: (1) a seawater desalination project; or (2) an aquifer storage and recovery project as defined by Chapter 27, Water Code, or its successor. (d) The legislature by adoption of a concurrent resolution approved by a record vote of two-thirds of the members of each house of the legislature may direct the comptroller of public accounts to reduce the amount of money deposited under Subsection (a) of this section. The comptroller may be directed to make that reduction only: (1) in the state fiscal year in which the resolution is adopted, or in either of the following two state fiscal years; and (2) by an amount or percentage that does not result in a reduction of more than 50 percent of the amount that would otherwise be deposited under that subsection in the affected state fiscal year. (e) Subject to Subsection (f) of this section, the duty of the comptroller of public accounts to make a deposit under Subsection (a) of this section expires August 31, 2034. (f) The legislature by adoption of a concurrent resolution approved by a record vote of a majority of the members of each house of the legislature may extend, in 10-year increments, the duty of the comptroller of public accounts to make a deposit under Subsection (a) of this section beyond the applicable date prescribed by Subsection (e) of this section. (g) This section expires September 15, 2034, if on or before August 31 of that year: (1) a project described by Subsection (c) of this section, the costs for which are paid by the Texas Water Development Board or that board's successor in function using money deposited under Subsection (a) of this section, is not under active construction or operational; and (2) the legislature has not extended the duty of the comptroller of public accounts to make the deposit under Subsection (a) of this section in the manner provided by Subsection (f) of this section. (h) On September 1 of the year in which this section expires under Subsection (g) of this section: (1) the comptroller of public accounts shall determine the amount of money in the Texas Water Development Fund II attributable to deposits made under Subsection (a) of this section; and (2) the Texas Water Development Board or that board's successor in function shall transfer the amount determined under Subdivision (1) of this subsection from the Texas Water Development Fund II to the State Water Implementation Fund for Texas. (i) Subsections (g) and (h) of this section expire October 1, 2034, unless this section expires in accordance with Subsection (g) of this section. SECTION 2. The following temporary provision is added to the Texas Constitution: TEMPORARY PROVISION. (a) This temporary provision applies to the constitutional amendment proposed by the 85th Legislature, Regular Session, 2017, dedicating a portion of the revenue derived from the state sales and use tax to the Texas Water Development Fund II. (b) Section 7-e, Article VIII, of this constitution takes effect September 1, 2019. (c) This temporary provision expires September 1, 2022. SECTION 3. This proposed constitutional amendment shall be submitted to the voters at an election to be held November 7, 2017. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment dedicating certain sales and use tax revenue to the Texas Water Development Fund II to provide funding for increased water supply and water quality enhancement."