By: Perry, et al. S.J.R. No. 66
A JOINT RESOLUTION
proposing a constitutional amendment dedicating a portion of the
revenue derived from state sales and use taxes and insurance
premium taxes to the Texas water fund.
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.
(e) For the period of 10 state fiscal years beginning
September 1, 2043, and for each period of 10 state fiscal years that
occur after that period has ended, the legislature by general law
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 enacted under this subsection may not be
amended by the legislature during the 10-year period for which the
money is allocated. 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 enacted 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) 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-2) Of the amount of money deposited to the credit of the
Texas water fund under Section 7-e, Article VIII, of this
constitution before September 1, 2043, the administrator of the
fund shall allocate not less than 80 percent to be used only for
transfer to the New Water Supply for Texas Fund.
(e-3) This subsection and Subsections (e-1) and (e-2) of
this section expire August 31, 2043.
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
Subsections (b) and (c) of this section, in each state fiscal
year, the comptroller of public accounts shall deposit to the
credit of the Texas water fund:
(1) 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,
provided that the total amount deposited to the credit of the Texas
water fund under this subsection in a state fiscal year may not
exceed $500 million; and
(2) the first $500 million of the net revenue derived
from the imposition of the insurance premium taxes on the taxable
gross premiums, gross premium receipts, and gross revenues from the
sale of certificates or contracts subject to those taxes under
Subtitle B, Title 3, Insurance Code, or its successor, coming into
the treasury in that state fiscal year.
(b) The legislature by adoption of a 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 to the credit of the Texas water fund
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 to the fund in the affected state fiscal year
under the applicable subsection of this section.
(c) Subject to Subsection (d) of this section, the duty of
the comptroller of public accounts to make a deposit under
Subsection (a) of this section expires August 31, 2043.
(d) 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 date prescribed by
Subsection (c) of this section.
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 a portion of the revenue derived
from state sales and use taxes and the insurance premium taxes to
the Texas water fund.
(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 dedicating a portion of
the revenue derived from state sales and use taxes and insurance
premium taxes to the Texas water fund."