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	Amend CSSB 3 (house committee printing) as follows:                          

(1)  In SECTION 2A.01 of the bill, in the recital to the 	section (page 53, line 27), strike "Subchapter L" and substitute 
"Subchapters L and M".
	(2)  In SECTION 2A.01 of the bill, after added Section 
11.601, Water Code (page 54, between lines 12 and 13), insert the 
following:

SUBCHAPTER M.  ROYALTY FEE ON SALE OR LEASE OF IMPOUNDED SURFACE 
WATER
	Sec. 11.651.  ACQUISITION OF PROPERTY IN RESERVOIR SITE IN 
EXCHANGE FOR ROYALTY FEE.  The holder of a permit to impound surface 
water in a reservoir may, with the agreement of the owner of real 
property in the site of the reservoir, acquire the property in 
exchange for a royalty fee as provided by this subchapter.
	Sec. 11.652.  PROVISION OF INFORMATION AND PAYMENT OF 
ROYALTY FEE TO COMMISSION.  The holder of a permit to impound 
surface water in a reservoir annually shall:
		(1)  notify the commission of the name and address of 
each person whose property the permit holder acquired to construct 
the reservoir under an agreement under Section 11.651 and the 
number of acres of real property acquired from the person under the 
agreement; and
		(2)  pay to the commission a royalty fee in an amount 
equal to 10 percent of the total revenue received by the permit 
holder for the wholesale or retail sale or lease of the water 
authorized to be impounded under the permit multiplied by a 
fraction the numerator of which is the total number of acres of real 
property acquired from all persons who entered into agreements 
under Section 11.651 and the denominator of which is the total 
number of acres of real property in the reservoir site acquired from 
all property owners voluntarily, including under an agreement under 
Section 11.651, or through the exercise of the power of eminent 
domain.
	Sec. 11.653.  ALLOCATION OF ROYALTY FEE BY COMMISSION.  Not 
later than the 90th day after the date the royalty fee is submitted 
under Section 11.652(2), the commission shall allocate the fee to 
each person included in the notification under Section 11.652(1) in 
the proportion that the number of acres of real property acquired 
from the person under an agreement under Section 11.651 bears to the 
total number of acres of real property acquired from all persons 
under agreements under Section 11.651.
	Sec. 11.654.  ASSESSMENT OF FEE ON PERMIT HOLDER.  The 
commission may assess a holder of a permit to impound surface water 
in a reservoir a fee in an amount necessary to administer this 
subchapter.
	(3)  In SECTION 2A.02 of the bill, strike added Section 
16.145(a), Water Code (page 55, line 18, through page 56, line 6), 
and substitute the following:

(a)  A former owner of real property that was acquired, voluntarily 
or through the exercise of the power of eminent domain, for a 
reservoir is entitled to lease the property from the person who 
acquired the property under terms that allow the former owner to 
continue to use the property for its existing use until physical 
construction of the reservoir begins.
	(4)  In SECTION 2A.02 of the bill, added Section 16.145(b), 
Water Code (page 56, line 8), between "for" and "the property's", 
insert "not more than".
	(5)  In SECTION 2A.02 of the bill, strike added Section 
16.146(a), Water Code (page 56, lines 10 through 20), and 
substitute the following:

(a)  If a person constructing a reservoir is required to mitigate 
the past, present, or future adverse environmental effects arising 
from the construction or operation of the reservoir or its related 
facilities, the person shall, if authorized by the applicable 
regulatory authority, attempt to mitigate those effects by offering 
to contract with and pay an amount of money to an owner of real 
property to maintain, control, hold, restore, enhance, develop, or 
redevelop the property instead of acquiring or managing property 
for that purpose.