Texas 2025 - 89th Regular

Texas House Bill HJR7

Filed
3/6/25  
Out of House Committee
4/2/25  
Voted on by House
4/30/25  
Out of Senate Committee
5/26/25  
Voted on by Senate
5/27/25  

Caption

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.

Impact

If enacted, HJR7 would significantly influence Texas water law and funding mechanisms, enabling the allocation of state funds for the construction and maintenance of water infrastructure projects. The constitutional amendment would require the comptroller of public accounts to allocate the first $1 billion of excess sales tax revenue to the water fund each fiscal year, providing a more consistent revenue stream for essential water projects. Furthermore, it places certain conditions on how and when these funds can be utilized, ensuring that they directly benefit water supply initiatives.

Summary

HJR7 proposes a constitutional amendment aimed at designating a portion of the revenue generated from state sales and use taxes to support the Texas water fund. This initiative reflects an ongoing concern regarding water scarcity and the necessity for sustainable water management as Texas faces frequent droughts. By allocating funds specifically for water initiatives, the amendment seeks to enhance the state's capacity to develop infrastructure that ensures a sustainable water supply for its residents.

Sentiment

The sentiment surrounding HJR7 appears largely supportive, as many stakeholders recognize the pressing need for improved water management resources. In committee discussions, proponents emphasized the importance of secure water resources for the future economic growth of Texas. However, there are concerns about the long-term implications of such a dedicated revenue stream and whether it would limit the legislature's flexibility to address other pressing budgetary needs.

Contention

Noteworthy points of contention involve the potential restrictions HJR7 would place on fund allocations during declared states of disaster and the conditions surrounding the repurposing of funds. Critics argue that while improving water resources is crucial, designating a certain percentage of tax revenue might inhibit the legislative body's ability to allocate funds for other emergencies or essential services. Therefore, the overall debate hinges not only on water supply issues but also on fiscal policy and governance.

Texas Constitutional Statutes Affected

Government Code

  • Chapter 418. Emergency Management
    • Section: New Section
  • Chapter 317. State Budget Execution
    • Section: New Section

Tax Code

  • Chapter 151. Limited Sales, Excise, And Use Tax
    • Section: New Section

Companion Bills

TX HB16

Enabled by Relating to the oversight and financing of certain water infrastructure matters under the jurisdiction of the Texas Water Development Board.

TX SB7

Enabled by Relating to the oversight and financing of certain water infrastructure matters under the jurisdiction of the Texas Water Development Board.

Previously Filed As

TX HJR169

Proposing a constitutional amendment providing for the dedication of certain sales and use tax revenue to a special fund established in the state treasury to pay for water infrastructure in this state.

TX HJR27

Proposing a constitutional amendment providing for the creation of and use of money in the Grow Texas fund and allocating certain general revenues to that fund, the economic stabilization fund, and the state highway fund.

TX SJR37

Proposing a constitutional amendment to permit additional uses of certain dedicated general revenue transferred each fiscal year to the state highway fund.

TX SJR27

Proposing a constitutional amendment creating the Texas Connectivity Fund for the development of broadband and other telecommunications services in all areas of the state and authorizing the appropriation to that fund of a portion of revenue received from the existing state sales and use taxes on telecommunications services while not increasing the rate of the sales and use taxes.

TX HJR185

Proposing a constitutional amendment relating to the appropriation of the net revenue received from the imposition of state sales and use taxes on sporting goods.

TX SJR75

Proposing a constitutional amendment creating the Texas water fund to assist in financing water projects in this state.

TX HB3461

Relating to the creation and re-creation of funds and accounts, the dedication and rededication of revenue and allocation of accrued interest on dedicated revenue, and the exemption of unappropriated money from use for general governmental purposes.

TX HJR1

Proposing a constitutional amendment creating the state school safety fund to provide ongoing financial support for projects that ensure the safety of public schools in this state and providing for the transfer of certain general revenues to that fund, the economic stabilization fund, and the state highway fund.

TX HJR77

Proposing a constitutional amendment to permit additional uses of certain dedicated general revenue transferred each fiscal year to the state highway fund.

TX HJR205

Proposing a constitutional amendment to prohibit the imposition of school district maintenance and operations ad valorem taxes on residence homesteads, to increase the rates of state sales and use taxes and dedicate the revenue attributable to that increase for public education, and to establish and prescribe the permissible uses of the homeowner protection fund.

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