Amend the House Committee Report for HB 1110 as follows:
(1) Add a new SECTION 1 to read as follows and renumbering the
remaining SECTIONS accordingly:
      SECTION 1.  Section 1.02, Chapter 1029, Acts of the 76th
Legislature, Regular Session, 1999, is amended by adding Paragraph
(12) to read as follows:
            (12)  "Groundwater Reduction Plan" means a plan adopted
or implemented to supply water, reduce reliance on groundwater,
regulate groundwater pumping and water usage, or require and
allocate water usage among persons in order to comply with or
exceed the minimum requirements imposed by the subsidence district,
including any applicable groundwater reduction requirements.
(2) Strike SECTION 3 of the House Committee Report and insert in
lieu thereof the following:
      SECTION 3.  Section 4.01, Chapter 1029, Acts of the 76th
Legislature, Regular Session, 1999, is amended by amending
Subsection (b) and adding new subsections (e) through (h) to read
as follows:
      (b) The authority may:
      (1) provide for the conservation, preservation, protection,
recharge, and prevention of waste of groundwater in a manner
consistent with the purposes of Section 59, Article XVI, Texas
Constitution;
      (2) for the purposes of reducing groundwater withdrawals and
subsidence, acquire or develop surface water and groundwater
supplies from sources inside of or outside of the boundaries of the
authority and may conserve, store, transport, treat, purify,
distribute, sell and deliver water to persons, corporations,
municipal corporations, political subdivisions of the state, and
others, inside of and outside of the boundaries of the authority;
      (3) enter into contracts with persons, including political
subdivisions of the state, on terms and conditions the board
considers desirable, fair, and advantageous for the performance of
its rights, powers, and authority under this Act;
      (4) coordinate water services provided inside of, outside of,
or into the authority; <and>
      (5) provide for the reduction of groundwater withdrawals by
the development, implementation, or enforcement of a groundwater
reduction plan as provided in Section 4;
      (6) identify sources of water other than groundwater to be
provided by the authority;
      (7) specify the rates, terms and conditions under which
sources of water other than groundwater will be provided by the
authority, which may be changed from time to time as deemed
necessary by the authority;
      (8) specify the dates and extent to which each person or
district within the authority's boundaries shall accept water from
the authority; and
      (9) administer and enforce the provisions of the Act.
      (e) The authority may develop, implement, participate in ,
and enforce a groundwater reduction plan.  A groundwater reduction
plan developed, implemented, participated in or enforced by the
authority shall be binding on persons, districts, entities and
wells within the authority's boundaries.
      (f) The authority may contract on such terms as are mutually
agreeable with any person or district located outside the authority
to allow the person or district to be included in the authority's
groundwater reduction plan.  Such contracts shall have the same
force and effect as if the person or district were located within
the authority, except that the person or district shall not have
the right to vote in elections for members of the board of the
authority.
      (g) The plan authorized by subsection (e) may be amended from
time to time at the discretion of the authority subject to the
requirements and procedures of the subsidence district applicable
to the amendment of groundwater reduction plans.
      (h) The groundwater reduction plan developed by the authority
may exceed the minimum requirements imposed by the subsidence
district, including without limitation any applicable groundwater
reduction requirements.
(3) Strike SECTION 6 of the House Committee Report and insert in
lieu thereof the following:
      SECTION 6.  Article 4, Chapter 1029, Acts of the 76th
Legislature, Regular Session, 1999, is amended by adding Section
4.14 to read as follows:
            Sec. 4.14 INCLUDED DISTRICTS. A district inside of the
authority's boundaries retains its separate identity, powers, and
duties, except that the district is subject to the powers and
duties of the authority, including those powers and duties of the
authority necessary to develop, implement, and enforce a
groundwater reduction plan.