H.J.R. No. 7 is a joint resolution proposing a constitutional amendment to allocate a portion of the revenue generated from state sales and use taxes to the Texas water fund. The resolution outlines the structure of the Texas water fund, which will include various sources of revenue such as legislative appropriations, investment earnings, and donations. It specifies that the first $1 billion of net revenue exceeding $46.5 billion from state sales and use taxes will be deposited into the fund each fiscal year. Additionally, it mandates that at least 25% of the initial appropriation to the fund be allocated for transfer to the New Water Supply for Texas Fund.

The resolution also includes provisions for the allocation and use of the funds, allowing the legislature to allocate money for transfer to accounts administered by the Texas Water Development Board. It establishes that allocations may not be altered during the first ten fiscal years and allows for temporary suspensions of allocations during declared states of disaster. The proposed amendment will be submitted to voters for approval in an election scheduled for November 4, 2025. If passed, the changes will take effect on September 1, 2027, with certain provisions expiring on August 31, 2047.