Amend SB 7 (house committee report) on third reading as follows:

(1)  On page 3, line 14, strike "Subsection (e)" and substitute "Subsections (e) and (f)".

(2)  On page 5, between lines 4 and 5, insert the following:

(3)  Add the following appropriately numbered SECTION to ARTICLE 1 of the bill and renumber subsequent SECTIONS of the ARTICLE accordingly:

SECTION 1.____.  Section 15.994, Water Code, is amended by amending Subsection (a) and adding Subsection (a-1) to read as follows:

(a)  Subject to Subsection (a-1), the [The] fund may be used to provide low-interest loans to rural political subdivisions for:

(1)  water or water-related projects and for water quality enhancement projects, including:

(A)  the construction of infrastructure facilities for wholesale or retail water or sewer service;

(B)  desalination projects;

(C)  the purchase or lease of water well fields;

(D)  property necessary for water well fields;

(E)  the purchase or lease of rights to produce groundwater;

(F)  onsite or wetland wastewater treatment facilities; and

(G)  the interim financing of construction projects;

(2)  water projects included in the state water plan or a regional water plan;

(3)  development of groundwater sources and acquisition of water rights, including groundwater and surface water rights;

(4)  the acquisition of retail public utilities as defined by Section 13.002;

(5)  the acquisition of water supply or sewer service facilities or systems owned by municipalities or other political subdivisions;

(6)  construction, acquisition, or improvement of water and wastewater projects to provide service to an economically distressed area;

(7)  planning and design costs, permitting costs, and other costs associated with state or federal regulatory activities with respect to a project; and

(8)  obtaining water or wastewater service supplied by other political subdivisions or financing the consolidation or regionalizing of neighboring political subdivisions, or both.