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Amend CSHB 1204 as follows:                                                  

(1)  On page 1, line 13, between "reenacting" and 	"Subsection", insert "and amending".
	(2)  On page 2, line 15, between "incorporates." and "The", 
insert the following:
	On reaching an agreement, the municipality and county shall 
certify that the agreement complies with the requirements of this 
chapter.
	(3)  On page 4, strike the underscored text on lines 9-22 and 
substitute the following:

If a certified agreement between a county and municipality as 
required by Subsection (c) is not in effect on or before January 1, 
2004, the municipality and the county must enter into arbitration 
as provided by Section 242.0015.  If the arbitrator or arbitration 
panel, as applicable, has not reached a decision in the 60-day 
period as provided by Section 242.0015, the county has exclusive 
authority to regulate plats and subdivisions and approve related 
permits in the extraterritorial jurisdiction of the municipality in 
accordance with Chapter 232 and other statutes applicable to 
counties.  The county retains that exclusive authority only until 
the arbitrator or arbitration panel reaches a decision.
	(4)  On page 5, strike the sentence beginning on line 22 and 
substitute the following:

If a certified agreement between a county and municipality is not in 
effect on or before January 1, 2004, the parties must arbitrate the 
disputed issues.
	(5)  On page 5, line 27, after "section.", insert "An 
arbitration decision under this section is binding on the parties."
	(6)  On page 6, lines 8 and 9, strike "the effective date of 
this section" and substitute "the date the county and the 
municipality are required to have an agreement in effect under 
Section 242.001(f)".
	(7)  On page 6, line 12, between "only to the" and 
"authority", insert "disputed issues between the county and the 
municipality regarding the".
	(8)  On page 6, line 17, strike "The prevailing part of" and 
substitute "The party whose regulatory standards prevail in".
	(9)  On page 7, strike line 3.