Amend CSHB 3335 (Senate committee report) as follows:                        
	(1)  Insert the following appropriately numbered SECTIONS to 
the bill:       
	SECTION __.  Section 54.016(f), Water Code, is amended to 
read as follows:   
	(f)  This subsection does not apply to a city or a district 
that is located in whole or in part in a county with a population of 
more than 3.3 million or a county adjacent to a county with a 
population of more than 3.3 million.  A city may provide in its 
written consent for the inclusion of land in a district that a 
contract ("allocation agreement") between the district and the city 
be entered into prior to the first issue of bonds, notes, warrants, 
or other obligations of the district.  The allocation agreement 
shall contain the following provisions:
		(1)  a method by which the district shall continue to 
exist following the annexation of all territory within the district 
by the city, if the district is initially located outside the 
corporate limits of the city;
		(2)  an allocation of the taxes or revenues of the 
district or the city which will assure that, following the date of 
the inclusion of all the district's territory within the corporate 
limits of the city, the total annual ad valorem taxes collected by 
the city and the district from taxable property within the district 
does not exceed an amount greater than the city's ad valorem tax 
upon such property;
		(3)  an allocation of governmental services to be 
provided by the city or the district following the date of the 
inclusion of all of the district's territory within the corporate 
limits of the city;
		(4)  such other terms and conditions as may be deemed 
appropriate by the city.
	SECTION __.  The legislature finds that an agreement entered 
into prior to the effective date of this Act between a municipality 
and a municipal utility district that are located in whole or in 
part in a county with a population of more than 3.3 million or a 
county adjacent to a county with a population of more than 3.3 
million is an allocation agreement only if the agreement strictly 
complies with the requirements of Section 54.016(f), Water Code, 
and is identified as an "allocation agreement" by specific 
reference in the agreement to Section 54.016(f), Water Code.
	(2)  Renumber SECTIONS of the bill appropriately.