Establishes the Local Government Water Redevelopment Fund to finance water infrastructure repair and redevelopment.

The bill creates the Local Government Water Redevelopment Fund, a special fund in the state treasury. Four percent of sales tax proceeds will be deposited into the fund. The Texas Water Development Board will manage the fund and disburse money for water infrastructure repair and redevelopment projects. The fund can receive money from appropriations, interest, gifts, grants, donations, and other sources. The board must develop application procedures and rules for the fund. The fund becomes effective on January 1, 2026, contingent on voter approval of a related constitutional amendment.

Establishes the Local Government Water Redevelopment Fund to finance water infrastructure repair and redevelopment.

The bill creates the Local Government Water Redevelopment Fund, a special fund in the state treasury. Four percent of sales tax proceeds will be deposited into the fund. The Texas Water Development Board will manage the fund and disburse money for water infrastructure repair and redevelopment projects. The fund can receive money from appropriations, interest, gifts, grants, donations, and other sources. The board must develop application procedures and rules for the fund. The fund becomes effective on January 1, 2026, contingent on voter approval of a related constitutional amendment.