Amend CSHB 2912 by inserting the appropriately numbered
Sections, to read as follows:
      SECTION _____.  Section 11.002, Water Code, is amended by
adding Subdivision (11) to read as follows:
            (11)  "River basin" means a river or coastal basin
designated by the board as a river basin under Section 16.051.  The
term does not include waters of the bays or arms of the Gulf of
Mexico.
      SECTION _____.  Subsection (p), Section 11.085, Water Code,
is amended to read as follows:
      (p)  <For the purposes of this section, a basin is designated
as provided in accordance with Section 16.051 of this code.>  A
river basin may not be redesignated in order to allow a transfer or
diversion of water otherwise in violation of this section.
      SECTION _____.  Subsection (b), Section 15.102, Water Code,
is amended to read as follows:
      (b)  The loan fund may also be used by the board to provide
grants for:
            (1)  projects that include supplying water and
wastewater services in economically distressed areas, including
projects involving retail distribution of those services; and
            (2)  desalination, brush control, weather modification,
regionalization, and projects providing regional water quality
enhancement services as defined by board rule, including regional
conveyance systems.
      SECTION _____.  Subsections (4), (5) and (6), Section 15.434,
Water Code, are amended to read as follows:
            (4)  grants made to groundwater <underground water>
conservation districts and political subdivisions for the purchase
of equipment under programs established by Subchapter H of this
chapter;
            (5)  research in water utilization and conservation
including artificial recharge and secondary recovery of groundwater
<underground water>;
            (6)  desalination <desalinization>;
      SECTION _____.  Section 11.32, Tax Code, is amended to read
as follows:
      Sec. 11.32.  CERTAIN WATER CONSERVATION INITIATIVES. The
governing body of a taxing unit by official action of the governing
body adopted in the manner required by law for official actions may
exempt from taxation part or all of the assessed value of property
on which approved water conservation initiatives, desalination
projects, or brush control initiatives have been implemented.  For
purposes of this section, approved water conservation,
desalination, and brush control initiatives shall be designated
pursuant to an ordinance or other law adopted by the governing
unit.
      SECTION _____.  Subchapter H, Chapter 151, Tax Code, is
amended by adding Section 151.355 to read as follows:
      Sec. 151.355.  WATER RELATED EXEMPTIONS. The following are
exempted from taxes imposed by this chapter:
            (1)  rainwater harvesting equipment or supplies, water
recycling and reuse equipment or supplies, or other equipment,
services, or supplies used to reduce or eliminate water use;
            (2)  equipment, services, or supplies used for
desalination of surface water or groundwater;
            (3)  equipment, services, or supplies used for brush
control designed to enhance the availability of water;
            (4)  equipment, services, or supplies used for
precipitation enhancement;
            (5)  equipment, services, or supplies used to construct
or operate a water or wastewater system certified by the Texas
Natural Resource Conservation Commission as a regional system; and
            (6)  equipment, services, or supplies used to construct
or operate a water supply or wastewater system by a private entity
as a public-private partnership, as certified by the political
subdivision that is a party to the project.