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Amend CSSB 1254 (Senate committee printing) by striking all 
below the enacting clause and substituting the following:
	SECTION 1.  Section 53.001, Water Code, is amended by adding 
Subdivision (4) to read as follows:
		(4)  "Commission" means the Texas Commission on 
Environmental Quality.
	SECTION 2.  Section 53.101, Water Code, is amended to read as 
follows:       
	Sec. 53.101.  PURPOSE OF DISTRICT.  Fresh water supply 
districts may be created to conserve, transport, and distribute 
fresh water in or to the district from any sources for domestic and 
commercial purposes.
	SECTION 3.  Subchapter D, Chapter 53, Water Code, is amended 
by adding Section 53.108 to read as follows:
	Sec. 53.108.  LIMITATION ON USE OF EMINENT DOMAIN POWER; 
REQUIRED APPROVALS.  (a)  A district may not exercise the power of 
eminent domain to acquire land, an easement, or other property that 
is located more than five miles outside the district's boundaries 
unless:
		(1)  the commissioners court in the county in which the 
eminent domain power is to be exercised, after notice and hearing, 
officially approves the exercise; and
		(2)  after approval by the commissioners court, the 
commission issues an order approving the district's application to 
exercise that power.
	(b)  A district that seeks commission approval for the 
district's planned exercise of eminent domain power:
		(1)  shall submit to the commission a written 
application for approval of the exercise of that power; and
		(2)  shall provide notice of the application in the 
manner prescribed by the commission.
	(c)  The executive director of the commission may:                      
		(1)  grant an application if the executive director 
finds that:      
			(A)  the requested exercise of the power of 
eminent domain is necessary and serves a purpose for which the 
district was created; and
			(B)  granting the application will:                                   
				(i)  serve the public interest;                                      
				(ii)  encourage regionalization of water 
supply and distribution; and
				(iii)  benefit the residents of the 
district; or                   
		(2)  request that the commission hold a public hearing 
on the application.
	(d)  After publication of notice, an opportunity for public 
comment, and an opportunity for public hearing on an application 
under this section, the commission may issue an order approving the 
application if the commission finds that:
		(1)  all procedural requirements have been satisfied;                  
		(2)  the requested exercise of the power of eminent 
domain:          
			(A)  is necessary and serves a purpose for which 
the district was created; and
			(B)  will encourage regionalization of water 
supply and distribution; and
		(3)  granting the request will:                                        
			(A)  serve the public interest; and                                   
			(B)  benefit the residents of the district.                           
	(e)  The commission by rule shall establish procedures for 
public notice and hearing of applications under this section.  The 
procedures must include provision of notice to elected state and 
local officials who represent residents of the district and of the 
property proposed for condemnation.
	(f)  A district may not exercise the power of eminent domain 
to acquire land, an easement, or other property that is located more 
than 75 miles outside the district's boundaries.
	(g)  This section applies to a fresh water supply district 
and a district that converts from a fresh water supply district to 
another type of district.
	SECTION 4.  Section 53.108, Water Code, as added by this Act, 
applies only to an exercise of the power of eminent domain by a 
fresh water supply district for which a condemnation petition is 
filed on or after the effective date of this Act.  An exercise of the 
power of eminent domain by a fresh water supply district for which a 
condemnation petition is filed before the effective date of this 
Act is governed by the law in effect on the date the condemnation 
petition is filed, and that law is continued in effect for that 
purpose.
	SECTION 5.  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, 2009.