Amend CSSB 964 (committee printing) as follows:                              
	(1)  Strike SECTIONS 4 and 5 and substitute the following:                     
	SECTION 4.  Section 16.341, Water Code is amended by amending 
Subdivisions (1) and (2) to read as follows:
		(1)  "Affected county" means a county[:                      
			(A)] that has an economically distressed area 
which has a median household income that is not greater than 75 
percent of the median state household income [a per capita income 
that averaged 25 percent below the state average for the most recent 
three consecutive years for which statistics are available and an 
unemployment rate that averaged 25 percent above the state average 
for the most recent three consecutive years for which statistics 
are available; or
			(B) that is adjacent to an international border].           
		(2)  "Economically distressed area" has the meaning 
assigned by Section 17.921 [means an area in which:
			[(A) water supply or sewer services are inadequate 
to meet minimal needs of residential users as defined by board 
rules;
			[(B)  financial resources are inadequate to 
provide water supply or sewer services that will satisfy those 
needs; and
			[(C)  an established residential subdivision was 
located on June 1, 1989, as determined by the board].
	SECTION 5.  Subsections (b) and (c) of Section 16.343, Water 
Code, are amended to read as follows:
	(b)  The model rules must:                                                     
		(1)  assure that adequate drinking water is available 
to the residential areas in accordance with Chapter 341, Health and 
Safety Code, and the Rules and Regulations for Public Water Systems 
and the Drinking Water Standards Governing Water Quality and 
Reporting Requirements for Public Water Supply Systems adopted by 
the commission [Texas Board of Health] and other law and rules 
applicable to drinking water; and
		(2)  provide criteria applicable to tracts that were 
divided into two or more parts to lay out a subdivision and were not 
platted or recorded before September 1, 2005 [1989].
	(c)  The model rules must:                                                     
		(1)  assure that adequate sewer facilities are 
available to the residential areas through either septic tanks or 
an organized sewage disposal system that is a publicly or privately 
owned system for the collection, treatment, and disposal of sewage 
operated in accordance with the terms and conditions of a valid 
waste discharge permit issued by the commission or private sewage 
facilities in accordance with Chapter 366, Health and Safety Code, 
and the Construction Standards for On-Site Sewerage Facilities 
adopted by the commission and other law and rules applicable to 
sewage facilities; and
		(2)  provide criteria applicable to tracts that were 
divided into two or more parts to lay out a subdivision and were not 
platted or recorded before September 1, 2005 [1989].
	(2)  Strike SECTIONS 8 and 9 and substitute the following:                     
	SECTION 8.  Section 17.921, Water Code is amended by 
amending subdivision (1) and adding subdivision (6) to read as 
follows:
		(1)  "Economically distressed area" means an area in 
which:                 
			(A)  water supply or sewer services are inadequate 
to meet minimal needs of residential users as defined by board 
rules;
			(B)  financial resources are inadequate to 
provide water supply or sewer services that will satisfy those 
needs; and
			(C)  an established residential subdivision was 
located on June 1, 2005 [1989], as determined by the board.
		(6)  "Economically distressed areas account" means the 
economically distressed areas account in the Texas Water 
Development Fund or the economically distressed areas program 
account in the Texas Water Development Fund II.
	SECTION 9.  Section 17.922(b), Water Code, is amended to 
read as follows:    
	(b)  To the extent practicable, the board shall use the funds 
in the economically distressed areas account in conjunction with 
the other financial assistance available through the board to 
encourage the use of cost-effective water supply and wastewater 
systems, including regional systems, to maximize the long-term 
economic development of counties eligible for financial assistance 
under the economically distressed areas program.  Any savings 
derived from the construction of a regional system that includes or 
serves an economically distressed area project shall be factored 
into the board's determination of financial assistance for the 
economically distressed area in a manner that assures the 
economically distressed area receives appropriate benefits from 
the savings.  In no event shall financial assistance provided from 
the economically distressed areas account be used to provide water 
supply or wastewater service to any area that is not [defined as] an 
economically distressed area [pursuant to Section 17.921(1)(A) of 
this code].
	(3)  Strike SECTION 14 of the bill.                                            
	(4)  Strike SECTION 15 of the bill and substitute the 
following:             
	SECTION 15.  Section 17.952, Water Code, is amended to read 
as follows:      
	Sec. 17.952.  ISSUANCE OF WATER FINANCIAL ASSISTANCE BONDS.  
The board by resolution may provide for the issuance of water 
financial assistance bonds, which shall be general obligation bonds 
of the state, in an aggregate principal amount not to exceed the 
principal amount authorized to be issued by [Section 49-d-8, 
Article III,] the Texas Constitution.
	(5)  Adding the following appropriately numbered SECTION to 
the bill and renumbering subsequent SECTIONS of the bill as 
appropriate:
	SECTION ___.  Section 212.0105, Local Government Code, is 
amended to read as follows:
	Sec. 212.0105.  WATER AND SEWER REQUIREMENTS IN CERTAIN 
COUNTIES.  (a) This section applies only to a person who:
		(1)  is the owner of a tract of land in [either:             
			(A)  a county that is contiguous to an 
international border;  or
			(B)] a county in which a political subdivision 
that is eligible for and has applied for [has received] financial 
assistance through Subchapter K, Chapter 17, Water Code;
		(2)  divides the tract in a manner that creates any lots 
that are intended for residential purposes and are five acres or 
less;  and
		(3)  is required under this subchapter to have a plat 
prepared for the subdivision.