HJR138 and HB3273 by Rep. Allan Ritter are currently being taken up in the House Committee on Natural Resources. The bills will allow voters to authorize a special account known as the State Water Implementation Fund for the financing of projects included in the State Water Plan. HB 3273 defines the fund, its content and uses, and provides for transfers to other specific accounts and the receipt of funds into them. Furthermore, HB 3273 provides 20% of the money available in the fund must be used to finance conservation and reuse projects included in the State Water Plan. During the hearing today, it is expected one amendment will be proposed to HB 3273 and a series of amendments will be offered to HJR 138 to address revenue sources for the fund.
The proposed text of the expected amendments:
HB 3273
Proposed Committee Amendment #1
SECTION 2, Chapter 15, Water Code, Subchapter G, is amended by adding to the appropriate subsection the following language:
Sec. 15.433. USE OF FUND. (a) The board may use money in the fund to provide financing, or only to pay the principal of and interest on, or to make payments under a bond enhancement agreement entered into by the board with respect to the principal of or interest on, bonds issued by the board for projects included in the state water plan that are authorized under:
(1) Subchapter Q;
(2) Subchapter E, Chapter 16; or
(3) Subchapter K, Chapter 17.
HJR 138
Proposed Committee Amendment #1
SECTION 1, Article III, Texas Constitution, Section 49-d-12 is amended by adding to the appropriate subsection the following language:
“The sales tax exemption for bottled water is hereby repealed.
The retail sale of bottled water shall be taxed at a state sales tax rate of 6.25 percent, and at a local sales tax rate of up to 2.00 percent.”
Proposed Committee Amendment #2
SECTION 1, Article III, Texas Constitution, Section 49-d-12 is amended by adding to the appropriate subsection the following language:
“A fee of $1.50 per month shall be placed on public water supply connections. Government and institutional water connections shall be exempt from this provision.”
Proposed Committee Amendment # 3
SECTION 1, Article III, Texas Constitution, Section 49-d-12 is amended by adding to the appropriate subsection the following language:
“A water conservation and development fee shall be imposed at the rate of 14 cents per 1,000 gallons of water sold by utilities to retail utility customers, including residential, commercial, irrigation, and industrial rate payers. Governmental and institutional water uses are exempt.”