(1) In the recital to SECTION 1.02 of the bill (page 1, line 14), strike "42, and 43" and substitute "and 42".

(2) In SECTION 1.02 of the bill, in amended Chapter 306, Acts of the 49th Legislature, Regular Session, 1945 (page 7, lines 10-19), strike Section 40.

(3) In SECTION 1.02 of the bill, in amended Chapter 306, Acts of the 49th Legislature, Regular Session, 1945 (page 7, line 20), strike "Sec. 41." and substitute the following:

Sec. 40. (a) This section does not apply to bonds related to a water supply contract existing on or after the effective date of the Act enacting this section entered into by the District and a governmental entity, including the Canyon Regional Water Authority and the Bexar-Medina-Atascosa Counties Water Improvement District No. 1, if revenue from the contract is to be pledged wholly or partly to pay debt service on revenue bonds approved by the attorney general.

(4) In SECTION 1.02 of the bill, in added Section 41, Chapter 306, Acts of the 49th Legislature, Regular Session, 1945 (page 7, line 22), between "State" and the comma, insert "under Article 2 or Article 2A of the Act enacting this section".

(5) In SECTION 1.02 of the bill, in added Section 42, Chapter 306, Acts of the 49th Legislature, Regular Session, 1945 (page 8, line 6), strike "Sec. 42. (a)" and substitute the following:

Sec. 41. (a) This section does not apply to a water supply contract existing on or after the effective date of the Act enacting this section entered into by the District and a governmental entity, including the Canyon Regional Water Authority and the Bexar-Medina-Atascosa Counties Water Improvement District No. 1, if revenue from the contract is to be pledged wholly or partly to pay debt service on revenue bonds approved by the attorney general.

(6) In SECTION 1.02 of the bill, in added Section 42(a), Chapter 306, Acts of the 49th Legislature, Regular Session, 1945 (page 8, line 8), between "State" and the comma, insert "under Article 2 or Article 2A of the Act enacting this section".

(7) In SECTION 1.02 of the bill, in added Section 42(a)(1), Chapter 306, Acts of the 49th Legislature, Regular Session, 1945 (page 8, line 12), between "System" and the semicolon, insert "if the contract or other agreement is assumed by the System".

(8) In SECTION 1.02 of the bill, in added Section 42, Chapter 306, Acts of the 49th Legislature, Regular Session, 1945 (page 8, line 18), strike "(b)" and substitute "(c)".

(9) In SECTION 1.02 of the bill, in added Section 42(b), Chapter 306, Acts of the 49th Legislature, Regular Session, 1945 (page 8, line 20), strike "(a)(2)" and substitute "(b)(2)".

(10) In SECTION 1.02 of the bill, in amended Chapter 306, Acts of the 49th Legislature, Regular Session, 1945 (page 8, line 22), strike "43" and substitute "42".

(11) In SECTION 1.02 of the bill, in added Section 43, Chapter 306, Acts of the 49th Legislature, Regular Session, 1945 (page 8, line 24), between "State" and the comma, insert "under Article 2 or Article 2A of the Act enacting this section".

(12) In SECTION 2.01(b) of the bill (page 9, line 11), between "district" and "on the", insert "solely".

(13) In SECTION 2.01(b) of the bill (page 9, line 12), strike "The board" and substitute "Notwithstanding Section 3.005(b), Election Code, the board".

(14) In SECTION 2.01(b) of the bill (page 9, line 14), between "held" and the period, insert "or as soon as practicable, if the effective date of this Act is after the 90th day".

(15) In SECTION 2.01 of the bill (page 10, between lines 14 and 15), insert the following:

(h) The election directed to be held under this article is not intended to prohibit a regular or special election to elect board members.

(16) In SECTION 2.02(a) of the bill (page 10, lines 15-16), strike "Not later than the 20th day after the date on which the election results are officially declared" and substitute "Not later than the 10th day after the determination under Section 67.005(a), Election Code, of the official results of the election".

(17) In SECTION 2A.02(b) of the bill (page 12, line 3), between "district" and "on the", insert "solely".

(18) In SECTION 2A.02(b) of the bill (page 12, line 4), strike "The board" and substitute "Notwithstanding Section 3.005(b), Election Code, the board".

(19) In SECTION 2A.02(b) of the bill (page 12, line 6), between "held" and the period, insert "or as soon as practicable, if the effective date of this Act is after the 90th day".

(20) In SECTION 2A.02 of the bill (page 13, between lines 12 and 13), insert the following:

(i) The election directed to be held under this article is not intended to prohibit a regular or special election to elect board members.

(21) In SECTION 2A.03(a) of the bill (page 13, lines 13-14), strike "Not later than the 20th day after the date on which the election results are officially declared" and substitute "Not later than the 10th day after the determination under Section 67.005(a), Election Code, of the official results of the election".

(22) In the recital to SECTION 3.03 of the bill (page 17, line 1), strike "and 10B" and substitute "10B, and 43".

(23) In SECTION 3.03 of the bill, in added Section 8A(b), Chapter 306, Acts of the 49th Legislature, Regular Session, 1945 (page 17, line 20), between "$500" and "in", insert "from each person or organization".

(24) In SECTION 3.03 of the bill, in added Section 8A(b), Chapter 306, Acts of the 49th Legislature, Regular Session, 1945 (page 17, line 21), between "the" and "candidate", insert "Director or".

(25) In SECTION 3.03 of the bill, in amended Chapter 306, Acts of the 49th Legislature, Regular Session, 1945 (page 21, between lines 23 and 24), insert the following:

Sec. 43. (a) The Commission shall evaluate the condition of the District and determine whether the District has been sufficiently rehabilitated to enable the District to provide reliable, cost-effective, quality service to its customers.

(b) If the Commission finds that the District has not been rehabilitated, the Commission may order the District to implement any part of the rehabilitation plan developed under Section 34.

(c) If the District fails to comply with a Commission order, the Commission may assess a penalty against the District in the manner provided by Section 13.4151, Water Code.

(26) In SECTION 4.01 of the bill, in added Section 50(a), Chapter 306, Acts of the 49th Legislature, Regular Session, 1945 (page 23, line 1), between "2" and "of", insert "or 2A".

(27) In SECTION 4.01 of the bill, in added Section 50(c), Chapter 306, Acts of the 49th Legislature, Regular Session, 1945 (page 23, line 9), between "assign" and "all", insert "to the System".

(28) In SECTION 4.01 of the bill, in added Section 52, Chapter 306, Acts of the 49th Legislature, Regular Session, 1945 (page 24, line 8), between "2" and "of", insert "or 2A".

(29) In SECTION 5.01 of the bill (page 28, lines 2-3), strike "1973c or any other provisions of that act" and substitute "1973 et seq."

(30) Strike SECTION 5.03 of the bill (page 28, line 23, through page 29, line 1) and substitute the following:

SECTION 5.03. (a) Articles 1, 2, 2A, and 5 of this Act take 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, Articles 1, 2, 2A, and 5 take effect September 1, 2011.