Amend CSHB 3526 (Senate committee printing) at ARTICLE 4 
(page 8, line 26) by inserting the following new ARTICLE 4 and 
renumbering the subsequent articles accordingly:

ARTICLE 4.  GRANTS BY THE TEXAS WATER DEVELOPMENT BOARD
FOR WATER AND WASTEWATER SYSTEM IMPROVEMENTS
IN ECONOMICALLY DISTRESSED AREAS
	SECTION 4.01.  Subsections (b) and (c), Section 17.933, 
Water Code, are amended to read as follows:
	(b)  In providing financial assistance to an applicant under 
this subchapter, the board may not provide to the applicant 
financial assistance in the form of a grant [for which repayment is 
not required] in an amount that exceeds 50 percent of the total cost 
of a proposed project [amount of the financial assistance plus 
interest on any amount that must be repaid,] unless the Texas 
Department of State Health Services issues a determination
[finding] that a nuisance dangerous to the public health and safety 
exists resulting from water supply and sanitation problems in the 
area to be served by the proposed project.  The board and the 
applicant shall provide to the Texas Department of State Health 
Services information necessary to make a determination, and the 
board and the Texas Department of State Health Services may enter 
into necessary memoranda of understanding to carry out this 
subsection.
	(c)  In providing financial assistance under this 
subchapter, the board may combine a grant made under this 
subchapter with a loan from any other source, including another 
program administered by the board [The total amount of financial 
assistance provided by the board to political subdivisions under 
this subchapter from state-issued bonds for which repayment is not 
required may not exceed at any time 90 percent of the total 
principal amount of issued and unissued bonds authorized under 
Article III of the Texas Constitution, for purposes of this 
subchapter plus outstanding interest on those bonds].
	SECTION 4.02.  This Act does not make an appropriation.  A 
provision in this Act that creates a new governmental program, 
creates a new entitlement, or imposes a new duty on a governmental 
entity is not mandatory during a fiscal period for which the 
legislature has not made a specific appropriation to implement the 
provision.
	SECTION 4.03.  This Act takes effect September 1, 2009.