Amend SB 1 on 3rd reading by adding the following
appropriately numbered SECTIONS and renumbering the remaining
sections of the bill accordingly:
      SECTION ____.  Subchapter C, Chapter 16, Water Code, is
amended by adding Section 16.059 to read as follows:
      Sec. 16.059.  CHANGES IN ORDERLY DEVELOPMENT, MANAGEMENT, OR
CONSERVATION OF CERTAIN WATER RESOURCES.  (a)  The purpose of this
section is to allow a water district to provide for the orderly
development, management, and conservation of water resources, to
ensure that sufficient water will be available at a reasonable cost
to ensure public health, safety, and welfare, and to protect the
agricultural and natural resources of this state. 
      (b)  A district may adopt a comprehensive water plan for the
provision of water in the district. The plan may outline the
district management plan, including any plans for the orderly
development, management, and conservation of water resources. The
district may submit the plan to a regional water planning group
under Section 16.053 or the board under Section 16.051. 
      (c)  If a political subdivision seeks to take an action that
has an impact on a district's comprehensive water plan, the
political subdivision shall, not later than the 100th day before
the date of the action that has an impact on the district's
comprehensive water plan, give the governing body of the district
written notice of the political subdivision's intention. 
      (d)  The governing body of a district, on receipt of a notice
under Subsection (c), shall conduct an election on the issue of
whether the action that has an impact on the district's
comprehensive water plan may be imposed in the district. The
election must be conducted, in accordance with Chapter 41, Election
Code, not later than the 10th day before the date of the
institution of the proceeding described by the notice. 
      (e)  The ballot proposition for an election under this
section must be printed to permit voting for or against the
imposition of the action by the political subdivision in the
specified part of the district. All voters in the district may vote
on the proposition. 
      (f)  If a majority of voters voting at the election approve
the proposition, the action described by the notice given under
Subsection (c) may be instituted at any time before the second
anniversary after the date of the election. If a majority of voters
voting at the election disapprove the proposition, the political
subdivision may not institute the action in the district and may
not propose an action that has an impact on the district's
comprehensive water plan until the second anniversary after the
date of the election.
      (g)  In this section:
            (1)  The term "political subdivision" does not include
a county, county development district, junior college district,
school district, hospital district, nonprofit water supply
corporation, municipal management district, emergency services
district, rural fire prevention district, or district or authority
that exercises the powers granted by Section 52, Article III, or
Section 59, Article XVI, Texas Constitution. 
            (2)  "An action that has an impact on the district's
comprehensive water plan" means the institution of a proceeding
having the purpose or the effect of imposing a tax or fee,
including a fee charged for the provision of water, on a person,
property, or transaction in any part of a district and the
imposition of the tax or fee by the political subdivision would
replace the tax or fee imposed by the water district and eliminate
the district's autonomous ability to finance and implement the
district's comprehensive water plan. 
            (3)  "District" means a district established or
operated under Title 4. 
      (h)  This section applies only to a political subdivision
that is, or is located in any part in, a municipality with a
population of 1.6 million or more or that is located in any part in
the extraterritorial jurisdiction of the municipality.
      SECTION ____.  (a)  Section 16.059, Water Code, as added by
this Act, applies to an action that has an impact on a district's
comprehensive water plan that is imposed by a political subdivision
on or after the effective date of this Act. An action that has an
impact on a district's comprehensive water plan that is imposed by
a political subdivision before the effective date of this Act is
governed by the law as it existed immediately before the effective
date of this Act, and that law is continued in effect for that
purpose.
      (b)  Section 16.059, Water Code, as added by this Act,
applies only to a new action that has an impact on a district's
comprehensive water plan but does not apply to:
            (1)  a tax or fee imposed in a district affected by
Section 16.059, Water Code, as added by this Act, by a political
subdivision that levied taxes on the property in the district
before the effective date of that section;
            (2)  a tax or fee imposed in a district by a political
subdivision that was, at an election held within the district
affected by Section 16.059, Water Code, as added by this Act,
authorized to levy taxes on property in the district;
            (3)  any change in the amount of an existing tax or fee
imposed by a political subdivision in a district affected by
Section 16.059, Water Code, as added by this Act, including utility
rates imposed by a political subdivision;
            (4)  a fee, including utility rates, imposed in a
district affected by Section 16.059, Water Code, as added by this
Act, by a political subdivision under a contract between the
political subdivision and the district; or
            (5)  a fee authorized to be charged by a statute or by
an enabling act of a political subdivision.
      (c)  A tax or fee imposed by a political subdivision before
the effective date of this Act and after May 1, 1997 may not be
collected after the effective date of this Act unless the political
subdivision complies with the provisions of Section 16.059, Water
Code, as amended by this Act.