All Roll Calls
Yes: 538 • No: 58
TexasSB 789th Legislature Regular SessionSenate
Relating to the oversight and financing of certain water infrastructure matters under the jurisdiction of the Texas Water Development Board.
Sponsored By: Carol Alvarado (Democratic), Paul Bettencourt (Republican), César Blanco (Democratic), Donna Campbell (Republican), Brandon Creighton (Republican), Sarah Eckhardt (Democratic), Pete Flores (Republican), Roland Gutierrez (Democratic), Brent Hagenbuch (Republican), Bob Hall (Republican), Hancock, Cody Harris, Adam Hinojosa (Republican), Juan "Chuy" Hinojosa (Democratic), Bryan Hughes (Republican), Nathan Johnson (Democratic), Phil King (Republican), Lois Kolkhorst (Republican), José Menéndez (Democratic), Mayes Middleton (Republican), Borris L. Miles (Democratic), Robert Nichols (Republican), Tan Parker (Republican), Angela Paxton (Republican), Charles Perry (Republican), Charles Schwertner (Republican), Kevin Sparks (Republican), Royce West (Democratic), Judith Zaffirini (Democratic)
Signed by Governor
Disaster Preparedness & ReliefEnvironment--WaterInterim StudiesProperty Interests--Eminent DomainState Agencies, Boards & CommissionsState Finances--Management & ControlUtilities--Water & SewerWater--ConservationWater--DevelopmentWater--GeneralWater--RightsFLOODSEMERGENCY MANAGEMENT, TEXAS DIVISION OFWATER DEVELOPMENT BOARD, TEXAS
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Bill Overview
Analyzed Economic Effects
9 provisions identified: 5 benefits, 0 costs, 4 mixed.
Texas reserves deposits for water supply
Beginning September 1, 2027, the law recognizes constitutional transfers and deposits as Texas Water Fund sources, subject to voter approval of H.J.R. 7. At least 50% of qualifying constitutional deposits must be allocated for transfer to two water supply funds, alone or together. These are the New Water Supply for Texas Fund and the State Water Implementation Fund for Texas. The allocation rule covers deposits made before September 1, 2047. Also subject to that voter approval, beginning September 1, 2027, groundwater counts as brackish for the constitutional rule when dissolved solids reach at least 3,000 milligrams per liter as it leaves a well.
Water aid prioritizes rural, smaller communities
The Board must use some transferred money for water and wastewater infrastructure, including repairs or replacement of failing systems. Aid, including grants, prioritizes rural local governments and cities with fewer than 150,000 residents, based on risk or financial need. Listed uses also include projects whose required permits the Board finds substantially complete. Water conservation, water-loss reduction, and technical help for applicants are also listed uses.
More financing options for Texas water
The Texas Water Development Board can help finance new water sources, including reuse and water acquired from outside Texas. Reservoirs qualify only after required land is acquired and the specified federal dredged-or-fill permit and state water permit are obtained. Water transport and system connections also qualify. Infrastructure for groundwater from Texas wells is excluded unless the water is part of a qualifying project. The fund can also transfer money to the Texas Water Development Fund II state participation account for authorized new-water purposes.
Residents can track Texas water funding
Beginning September 1, 2025, the Board must maintain a public website tool and update it as appropriate. It tracks future water supply needs, projects with Board assistance commitments, projected water developed, conserved, or reclaimed, and fund transfers. It also shows assistance to utilities whose water losses meet or exceed the state-set threshold. The tool reports estimated statewide water, wastewater, and flood infrastructure needs, required state aid, and progress closing funding gaps.
Texas strengthens water fund oversight
Beginning September 1, 2025, the advisory committee must review four funds at least twice yearly: Texas Water, State Water Implementation, Flood Infrastructure, and Texas Infrastructure Resiliency. It can recommend fund uses, review other water funds, and study state ownership, construction, and operation of water supply projects. The Board's administrator must report annually on statewide historically underutilized business goals and participation in bond-enhanced projects. If overall participation misses the applicable annual goals, the committee must recommend improvements.
Texas coordinates shared water delivery systems
Subject to legislative funding, the Board must coordinate joint planning for water supply projects eligible for its financial help. It must promote existing easements to reduce the need to take private property through eminent domain. It must develop water transport standards and guidance so systems can connect and work together. When practical, its guidance must recommend extra capacity for future water supplies.
Texas expands but locks funding transfers
The Board can transfer Texas Water Fund money to listed administration, flood, economically distressed-area, and agricultural water conservation accounts. It can transfer money to the State Water Implementation Fund for Texas before a project application is approved. Other listed transfers generally require project approval, except for allowed administrative expenses. Once transferred money is deposited into a listed fund or account, the Board cannot return it to the Texas Water Fund.
Water administration gets funding with caps
The law creates a separate administrative fund outside general revenue for necessary, reasonable Texas Water Fund costs, including staffing and water-delivery duties. It receives appropriations, Board transfers, and assigned interest; other related uses require legislative appropriations. Annual transfers into it cannot exceed 2% of that fiscal year's Texas Water Fund deposits. Separately, the Board can pay or reimburse up to $2 million total for necessary, reasonable environmental commission staffing costs to review permits for fund-assisted water supply projects. Those costs must be incurred by August 31, 2027, and the payment authority expires September 1, 2028.
Water transfers expand with acquisition limits
Qualifying transfers of water or water rights originating outside Texas are exempt from Water Code Section 11.036 restrictions. The exception covers transfers under the Board's specified water-bank authority, and recipients must be entitled to acquire use of the water. Separately, fund money can acquire another owner's state-water right only through a water supply contract or lease from that owner.
Sponsors & Cosponsors
Sponsors
Carol Alvarado
Democratic • Senate
Paul Bettencourt
Republican • Senate
César Blanco
Democratic • Senate
Donna Campbell
Republican • Senate
Brandon Creighton
Republican • Senate
Sarah Eckhardt
Democratic • Senate
Pete Flores
Republican • Senate
Roland Gutierrez
Democratic • Senate
Brent Hagenbuch
Republican • Senate
Bob Hall
Republican • Senate
Hancock
Affiliation unavailable
Cody Harris
House
Adam Hinojosa
Republican • Senate
Juan "Chuy" Hinojosa
Democratic • Senate
Bryan Hughes
Republican • Senate
Nathan Johnson
Democratic • Senate
Phil King
Republican • Senate
Lois Kolkhorst
Republican • Senate
José Menéndez
Democratic • Senate
Mayes Middleton
Republican • Senate
Borris L. Miles
Democratic • Senate
Robert Nichols
Republican • Senate
Tan Parker
Republican • Senate
Angela Paxton
Republican • Senate
Charles Perry
Republican • Senate
Charles Schwertner
Republican • Senate
Kevin Sparks
Republican • Senate
Royce West
Democratic • Senate
Judith Zaffirini
Democratic • Senate
Cosponsors
Brian Birdwell
Republican • Senate
Joan Huffman
Republican • Senate
Roll Call Votes
Senate vote • 5/30/2025
Record vote
Yes: 31 • No: 0
House vote • 5/28/2025
Record vote
Yes: 136 • No: 0
House vote • 5/26/2025
Record vote
Yes: 143 • No: 3
House vote • 5/26/2025
Record vote
Yes: 137 • No: 0
House vote • 5/26/2025
Record vote
Yes: 81 • No: 55
Senate vote • 4/2/2025
Record vote
Yes: 0 • No: 0
Senate vote • 4/2/2025
Record vote
Yes: 0 • No: 0
House vote • Unknown
Committee vote: Natural Resources
Yes: 10 • No: 0
Actions Timeline
See remarks for effective date
6/20/2025HouseSigned by the Governor
6/20/2025HouseSent to the Governor
6/1/2025HouseSigned in the House
6/1/2025HouseSigned in the Senate
5/31/2025SenateReported enrolled
5/31/2025SenateSenate concurs in House amendment(s)-reported
5/31/2025HouseRecord vote
5/30/2025SenateSenate concurs in House amendment(s)
5/30/2025SenateRead
5/30/2025SenateHouse amendment(s) laid before the Senate
5/30/2025SenateHouse passage as amended reported
5/28/2025SenateStatement(s) of vote recorded in Journal
5/28/2025HouseRecord vote (RV#3922)
5/28/2025HousePassed
5/28/2025HouseAmendment withdrawn (1-Morales Shaw)
5/28/2025HouseLaid out as postponed business
5/28/2025HousePostponed (5/28/25 8:00 AM)
5/27/2025HouseRead 3rd time
5/27/2025HouseStatement(s) of vote recorded in Journal
5/26/2025HouseRecord vote (RV#3549)
5/26/2025HousePassed to 3rd reading as amended
5/26/2025HouseRecord vote (RV#3548)
5/26/2025HouseAmended (1-Harris)
5/26/2025HouseStatement(s) of vote recorded in Journal
5/26/2025House
Bill Text
Engrossed
Enrolled
House Committee Report
Introduced
Senate Committee Report
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