Amend SB 1821 as follows:
      On page 3, line 3, strike subsection (d) in its entirety and
insert the following:
      "The board of directors of the district:
      (a)  May set fees for administrative acts of the district,
such as filing applications.  Fees set by a district may not
unreasonably exceed the cost to the district of performing the
administrative function for which the fee is charged.
      (b)  Shall set and collect fees for all services provided
outside the boundaries of the district.  The fees may not
unreasonably exceed the cost to the district of providing the
services outside the district.
      (c)  May assess production fees based on the amount of water
authorized by permit to be withdrawn from a well or the amount
actually withdrawn.  A district may assess the fees in lieu of, or
in conjunction with, any taxes otherwise levied by the district.  A
district may use revenues generated by the fees for any lawful
purpose.  Production fees shall not exceed:
            (1)  $1 per acre-foot payable annually for water used
for agricultural use; or
            (2)  $10 per acre-foot payable annually for water used
for any other purpose.
      (d)  May assess a production fee under (c) for any water
produced under an exemption under Section 36.117, Water Code, if
that water is subsequently sold to another person."