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	Amend CSSB 3 (House Committee Printing) by adding the 
following appropriately numbered ARTICLE and renumbering 
subsequent ARTICLES and SECTIONS of the bill accordingly:

ARTICLE ____. WATER SERVICE
	SECTION ____.01.  Subchapter B, Chapter 54, Water Code, is 
amended by adding Section 54.017 to read as follows:
	Sec. 54.017.  CREATION ON RELEASE FROM ANOTHER ENTITY'S 
SERVICE AREA.  (a) Except as provided by Subsection (c), a 
municipality shall provide water service to a land area:
		(1)  that is composed of one or more contiguous or 
noncontiguous parcels that together total at least 50 acres in 
size;
		(2)  that is within the corporate limits or the 
extraterritorial jurisdiction of the municipality; and
		(3)  for which, on or before the effective date of the 
Act enacting this section, the owner or owners of the land have 
entered into a written agreement with a rural water supply 
corporation to release the land from the service area of the 
corporation's certificate of public convenience and necessity.
	(b)  This section applies only to land served by a rural 
water supply corporation that has fewer than 5,000 water 
connections.
	(c)  If the municipality determines that it cannot meet the 
current and projected demands for water service to the released 
land within the time specified by the land's owner or owners:
		(1)  the municipality shall notify the owner or owners 
of the land of that determination; and
		(2)  a district shall be formed in accordance with this 
section to provide water service to the land.
	(d)  To create the district, the owner or owners of the 
released land shall submit a petition to the commission that 
includes:
		(1)  a copy of the agreement described by Subsection 
(a)(3);         
		(2)  a copy of the notice described by Subsection 
(c)(1); and        
		(3)  the information required under Section 54.015.                    
	(e)  The time periods specified and the consent of the 
municipality or the consideration of any recommendation of the 
county otherwise required by this chapter do not apply to the 
creation of a district under this section.
	(f)  The commission shall expedite the creation of the 
district and shall approve the creation of the district not later 
than the 90th day after the date of receipt of an administratively 
complete petition to create the district.
	(g)  This section expires September 1, 2011.                            
	SECTION ____.02.  This article takes effect immediately if 
this Act 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 article takes effect September 1, 2007.