The resolution proposes a constitutional amendment to allocate a portion of the revenue generated from state sales and use taxes, as well as insurance premium taxes, to the Texas water fund. Specifically, it amends Section 49-d-16 of Article III of the Texas Constitution to include provisions for the Texas water fund, which will consist of various sources of revenue, including legislative appropriations, investment earnings, and donations. The amendment stipulates that for a period of ten state fiscal years starting September 1, 2043, the legislature may allocate funds to the Texas Water Development Board, with certain restrictions on amendments during that period. Additionally, it mandates that a minimum of 25% of the initial appropriated funds and 80% of funds deposited before September 1, 2043, be allocated to the New Water Supply for Texas Fund.

Furthermore, the resolution introduces Section 7-e to Article VIII of the Texas Constitution, which outlines the specific revenue sources for the Texas water fund. This includes net revenue from state sales and use taxes exceeding $46.5 billion and the first $500 million from insurance premium taxes. The comptroller of public accounts is tasked with depositing these funds, with provisions for potential reductions by the legislature under certain conditions. The proposed amendment will be presented to voters in an election scheduled for November 4, 2025, allowing them to decide on the dedication of these tax revenues to the Texas water fund.