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	Amend CSSB 3 as follows:                                                     
	On page 49, between lines 16 and 17, insert the following new 
section and renumber remaining sections accordingly.
	SECTION ____. Section 16.344, Water Code, is amended by 
adding new Subsections (d), (e), (f), (g) and (h) to read as 
follows:
	(d) Notwithstanding Subsection 16.343(g) or Subsection 
16.350(a), a political subdivision may temporarily continue to 
receive funds under Subchapter K, Chapter 17, if the political 
subdivision submits a request for temporary continuation of funding 
and the board determines that:
		(1) the political subdivision's initial funding 
application and any amendments for a designated area were reviewed 
and approved by the board prior to January 1, 2007;
		(2) withholding funds would result in an undue hardship 
for occupants of the property to be served by unreasonably delaying 
the provision of adequate water or waste water services;
		(3) withholding funds would result in inefficient use 
of local, state, or federal funds under the program;
		(4) the political subdivision has committed to take the 
necessary and appropriate actions to correct any deficiencies in 
adoption or enforcement of the model rules within the time 
designated by the board, but not later than 90 days;
		(5) the political subdivision has sufficient safeguards 
in place to prevent the proliferation of colonias; and
		(6) after 30 days to consult with the attorney general, 
secretary of state, and commission, the board has not received an 
objection to the request for temporary continuation of funding.
	(e) In applying Subsection (d) to applications for increased 
financial assistance, the board shall only consider areas that were 
included in the initial application, except that the board may 
reconsider that eligibility of areas that were the subject of a 
facility plan in the initial application, and which may be 
determined to be eligible based on criteria effective September 1, 
2005.
	(f) The political subdivision shall take necessary and 
appropriate actions to correct any deficiencies in its adoption and 
enforcement of the model rules within the time period required by 
the board, not to exceed 90 days, and provide evidence of compliance 
to the board. The board shall discontinue funding unless the board 
makes a determination based on the evidence provided that the 
political subdivision has demonstrated sufficient compliance to 
continue funding.
	(g) Except as provided in Subsections (d) through (f), if the 
board determines that a county or city that is required to adopt and 
enforce the model rules is not enforcing the model rules, the board 
shall discontinue funding for all projects within the county or 
city that are funded under Subchapter K, Chapter 17.
	(h) Subsections (d), (e), (f), (g) and (h) expire September 
1, 2009.  
	SECTION ____. This Act takes effect immediately if it 
receives a vote of two-thirds of all the members elected to each 
house, as provided by Section 39, Article III, Texas Constitution. 
If this Act does not receive the vote necessary for immediate 
effect, this Act takes effect September 1, 2007. The board may not 
accept or grant applications for temporary funding under Subsection 
(d), Section 16.344, Water Code, created by this Act, less than 90 
days prior to the expiration of this Act.