Amend CSSB 3 by striking SECTION 2.42, Subchapter D, Chapter 
36, Water Code (committee printing, page 35, lines 10-60) and 
substituting the following:
	Sec. 36.125.  APPEAL OF DISTRICT ACTION TO DISPUTE 
RESOLUTION PANEL.  (a)  If a dispute arises between a district and a 
person affected by an action taken by the district under this 
subchapter, either the district or the affected person may file a 
petition with the commission requesting the appointment of a 
dispute resolution panel to assist the parties in reaching 
resolution of the dispute. Any party may within 10 days of the 
filing of the petition submit to the commission a written objection 
to the appointment of a panel.
	(b)  A petition filed under this section must include:                  
		(1)  the name of and contact information for each 
party;             
		(2)  a brief summary of the dispute along with a copy of 
any relevant document, including a permit, an application, a 
timeline, the district's enabling statute, a rule, a groundwater 
management plan, or the groundwater management area plan; and
		(3)  other information required by the commission.                     
	(c)  Not later than the 60th day after the date the petition 
is filed, the commission shall review the petition and:
		(1)  dismiss it if the commission finds that the 
petition is baseless, frivolous, fails to present an issue that is 
appropriate for panel review, or that there is reasonable basis for 
the objection filed under subsection (a); or
		(2)  select a panel as provided by Subsection (e).                     
	(d)  If the petition is dismissed, the commission shall 
provide the reasons for the dismissal in writing to the district and 
the affected person.
	(e)  If the petition is not dismissed, the commission shall, 
in accordance with an interagency contract, request the Center for 
Public Policy Dispute Resolution to select a three-member dispute 
resolution panel.  The panel shall be selected within 30 days of the 
commission's request.  All panel members must be individuals who 
are not involved or affected by the matter in dispute and whose 
expertise and knowledge may be useful in resolving the dispute.  The 
chair of the panel must also be qualified as an impartial third 
party under Chapter 154 of the Texas Civil Practice and Remedies 
Code, have expertise in resolving public policy disputes, and have 
knowledge of groundwater law in Texas.  The panel members' costs 
shall be shared equally among the parties, unless agreed to 
otherwise.  The commission shall compensate the Center for its 
costs related to this subsection.
	(f)  Not later than the 45th day after the date the panel is 
selected, the panel shall review the petition and any information 
relevant to the petition and begin holding meetings with the 
parties to assist them in resolving the dispute. The panel may 
consolidate multiple parties, appoint a person to represent 
multiple parties, invite additional parties, or dismiss parties as 
the panel considers, appropriate.  The Texas Water Development 
Board and the commission shall provide technical and legal 
assistance as requested by the panel.
	(g)  Not later than the 90th day after the panel's first 
meeting with the parties, the panel shall report to the commission 
whether the parties have reached a settlement.  If


no settlement has been reached, the commission shall dissolve the 
panel, and the parties may proceed with any other available remedy, 
including those provided under Subchapter H of this chapter.
	(h)  A court of this state shall take judicial notice of a 
dispute resolution panel under this section and may stay an 
affected judicial proceeding pending a settlement of the dispute or 
the dissolution of the panel.