Amend CSSB 1451 by inserting the following appropriately 
numbered sections and renumbering the subsequent sections of the 
bill accordingly:
	SECTION __.  Subchapter D, Chapter 11, Natural Resources 
Code, is amended by adding Section 11.087 to read as follows:
	Sec. 11.087.  PROHIBITION ON EXPORTATION OF GROUNDWATER 
PRODUCED FROM STATE-OWNED LAND.  A person may not export from this 
state to a foreign country groundwater produced from state-owned 
land.
	SECTION __.  Section 32.012, Natural Resources Code, is 
amended by amending Subsection (a) and adding Subsection (d) to 
read as follows:
	(a)  The board is composed of:                                                 
		(1)  the commissioner;                                                        
		(2)  a citizen of the state appointed by the governor 
with the advice and consent of the senate; [and]
		(3)  a citizen of the state appointed by the attorney 
general with the advice and consent of the senate;
		(4)  a citizen of the state appointed by the lieutenant 
governor; and
		(5)  a citizen of the state appointed by the governor 
with the advice and consent of the senate from a list of nominees 
submitted by the speaker of the house of representatives.
	(d)  In making an appointment under Subsection (a)(5), the 
governor may reject one or more of the nominees on a list submitted 
by the speaker of the house of representatives and request a new 
list of different nominees.
	SECTION __.  Section 51.121, Natural Resources Code, is 
amended by adding Subsections (f) and (g) to read as follows:
	(f)  Notwithstanding Subsection (a), the commissioner may 
not lease unsold public school land under this subchapter for a term 
of more than 10 years or for an indefinite term unless the board 
approves the lease.
	(g)  Notwithstanding Subsection (a), the commissioner may 
not lease the right to produce groundwater from unsold public 
school land.  A lease of the right to produce groundwater from 
unsold public school land is governed by Section 51.132.
	SECTION __.  Subchapter D, Chapter 51, Natural Resources 
Code, is amended by adding Section 51.132 to read as follows:
	Sec. 51.132.  LEASE OF RIGHT TO PRODUCE GROUNDWATER.  (a)  
The board may lease the right to produce groundwater from unsold 
public school land only as provided by this section.  The other 
provisions of this subchapter apply to leases entered into under 
this section to the extent those provisions do not conflict with 
this section or Section 51.121(g).
	(b)  The board shall adopt clear and detailed rules governing 
the lease of the right to produce groundwater from unsold public 
school land.  The rules must require:
		(1)  each regional water planning group and groundwater 
conservation district in whose jurisdiction the land is located to 
be notified when the board receives a proposal to lease the right to 
produce groundwater from the land;
		(2)  the lease contract to be negotiated by the board;                 
		(3)  the lessee to comply with:                                        
			(A)  the rules and permitting requirements of any 
groundwater conservation district in which the land is located; and
			(B)  all state and local laws and rules;                              
		(4)  the right to produce groundwater from land to be 
leased separately from oil and gas rights; and
		(5)  a lease proposal submitted by a political 
subdivision of this state to include a letter of interest, approved 
by the governing body of the political subdivision, that includes:
			(A)  an estimated total daily and annual amount of 
water to be produced under the lease;
			(B)  any requirements of the political 
subdivision regarding water quality;
			(C)  a time frame for delivery of the water;                          
			(D)  an estimated delivered price for the water; 
and                
			(E)  a statement that the political subdivision 
commits to act in compliance with all state and local laws and 
rules.
	(c)  Before filing notice of the proposed rules with the 
secretary of state for publication in the Texas Register, the board 
must notify the attorney general, Parks and Wildlife Department, 
Texas Commission on Environmental Quality, Texas Water Development 
Board, and Department of Agriculture and each member of the 
legislature that notice of the proposed rules will be published.
	(d)  A lease of the right to produce groundwater from unsold 
public school land must be awarded through competitive bidding 
unless:
		(1)  the lessee is a political subdivision of this 
state or an end user of the water; or
		(2)  the lease entitles the lessee to produce less than 
125,000 gallons of water per day.
	SECTION __.  Subchapter C, Chapter 66, Education Code, is 
amended by adding Section 66.46 to read as follows:
	Sec. 66.46.  LEASE OF RIGHT TO PRODUCE GROUNDWATER.  A lease 
of the right to produce groundwater from lands set aside and 
appropriated to, or acquired by, the permanent university fund must 
be awarded through competitive bidding unless:
		(1)  the lessee is a political subdivision of this 
state or an end user of the water; or
		(2)  the lease entitles the lessee to produce less than 
125,000 gallons of water per day.
	SECTION __.  Subsections (c) and (e), Section 16.053, Water 
Code, are amended to read as follows:
	(c)  No later than 60 days after the designation of the 
regions under Subsection (b), the board shall designate 
representatives within each regional water planning area to serve 
as the initial coordinating body for planning.  The initial 
coordinating body may then designate additional representatives to 
serve on the regional water planning group.  The initial 
coordinating body shall designate additional representatives if 
necessary to ensure adequate representation from the interests 
comprising that region, including the public, counties, 
municipalities, industries, agricultural interests, environmental 
interests, small businesses, electric generating utilities, river 
authorities, water districts, and water utilities.  The regional 
water planning group shall maintain adequate representation from 
those interests.  In addition, representatives of the board, the 
Parks and Wildlife Department, and the Department of Agriculture 
shall serve as ex officio members of each regional water planning 
group.  If a regional water planning area includes land dedicated to 
the permanent university fund, the executive director of University 
Lands--West Texas Operations serves as a nonvoting member of the 
regional water planning group for that area.
	(e)  Each regional water planning group shall submit to the 
board a regional water plan that:
		(1)  is consistent with the guidance principles for the 
state water plan adopted by the board under Section 16.051(d);
		(2)  provides information based on data provided or 
approved by the board in a format consistent with the guidelines 
provided by the board under Subsection (d);
		(3)  identifies:                                                              
			(A)  each source of water supply in the regional 
water planning area in accordance with the guidelines provided by 
the board under Subsections (d) and (f);
			(B)  factors specific to each source of water 
supply to be considered in determining whether to initiate a 
drought response; and
			(C)  actions to be taken as part of the response;                            
		(4)  has specific provisions for water management 
strategies to be used during a drought of record;
		(5)  includes but is not limited to consideration of 
the following:         
			(A)  any existing water or drought planning 
efforts addressing all or a portion of the region;
			(B)  certified groundwater conservation district 
management plans and other plans submitted under Section 16.054;
			(C)  all potentially feasible water management 
strategies, including but not limited to improved conservation, 
reuse, and management of existing water supplies, acquisition of 
available existing water supplies, and development of new water 
supplies, including, if appropriate, groundwater produced from 
land dedicated to the permanent school fund or permanent university 
fund;
			(D)  protection of existing water rights in the 
region;                    
			(E)  opportunities for and the benefits of 
developing regional water supply facilities or providing regional 
management of water supply facilities;
			(F)  appropriate provision for environmental 
water needs and for the effect of upstream development on the bays, 
estuaries, and arms of the Gulf of Mexico and the effect of plans on 
navigation;
			(G)  provisions in Section 11.085(k)(1) if 
interbasin transfers are contemplated;
			(H)  voluntary transfer of water within the region 
using, but not limited to, regional water banks, sales, leases, 
options, subordination agreements, and financing agreements; and
			(I)  emergency transfer of water under Section 
11.139, including information on the part of each permit, certified 
filing, or certificate of adjudication for nonmunicipal use in the 
region that may be transferred without causing unreasonable damage 
to the property of the nonmunicipal water rights holder;
		(6)  identifies river and stream segments of unique 
ecological value and sites of unique value for the construction of 
reservoirs that the regional water planning group recommends for 
protection under Section 16.051;
		(7)  assesses the impact of the plan on unique river and 
stream segments identified in Subdivision (6) if the regional water 
planning group or the legislature determines that a site of unique 
ecological value exists; and
		(8)  describes the impact of proposed water projects on 
water quality.      
	SECTION ____.  The lieutenant governor and the governor 
shall make appointments to the School Land Board under Section 
32.012, Natural Resources Code, as amended by this Act, as soon as 
possible after the effective date of this Act.  Each member's term 
expires August 31, 2007.