By:  Hamric                                                       H.B. No. 3547



A BILL TO BE ENTITLED

AN ACT

relating to the North Harris County Regional Water Authority.                 
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 2.02, Chapter 1029, Acts of the 76th 
Legislature, is amended by amending subsection (d) to read as 
follows:
	(d)  At the first election after each time the voting 
districts are redrawn[:
		[(1)  five new] directors shall be elected to represent 
the voting districts of the members of the board whose terms expire 
next after the districts are redrawn [the single member voting 
districts; and
		[(2)  the directors elected shall draw lots to 
determine their terms so that:
			[(A)  two directors serve two year terms; and               
			[(B)  three directors serve four year terms].               
	SECTION 2.  Section 5.05, Chapter 1029, Acts of the 76th 
Legislature, is amended to read as follows:
	Section 5.05.  FUNDING BY OTHER DISTRICTS.  (a)  The 
authority shall develop a procedure for cooperatively funding a 
project of the authority with money from other districts political 
subdivisions located entirely inside of the authority's 
boundaries, and may develop a procedure for cooperatively funding a 
project of the authority with money from political subdivisions 
located in whole or in part outside the authority's boundaries, 
water supply corporations or other private entities, if the 
authority project fulfills a governmental purpose of both the 
authority and other districts political subdivisions, or fulfills a 
governmental purpose of the authority that the authority determines 
would be furthered by cooperative funding from a private entity.
	(b)  Not later than the 90th day before the date the 
authority issues bonds, other than refunding bonds, to finance a 
project, the authority shall provide written notice of the 
authority's intention to issue the bonds to each district political 
subdivision located entirely inside of the authority's boundaries 
that may be benefited or affected by the project.  The notice must 
include the value of the bonds planned to be issued, a description 
of the project the bonds would finance, and a schedule of the 
estimated portion of the project costs financed by the bonds that 
may be allocated to each district political subdivision benefited 
or affected.  [The schedule must be prepared by means of a formula 
certified by the authority's engineer.]
	(c)  A [district] political subdivision may enter into a 
contract with the authority for the district political subdivision 
to finance a portion of the proposed project with the district's 
political subdivision's resources instead of using only the 
proceeds from bonds of the authority for that purpose.  The contract 
must be executed before the authority issues the bonds.  As provided 
in the contract, the authority [must] may:
		(1)  reduce the value of the bond issuance to the degree 
that the district political subdivision provides project funding; 
and
		(2)  credit the district political subdivision for its 
contribution to the project financing and adjust the allocation of 
revenue pledged to the payment of the bonds so that the authority 
avoids using, to a degree reasonably commensurate with the 
contribution, revenue from the district political subdivision to 
service the authority's bond debt or interest.
	SECTION 3.  This Act takes effect September 1, 2003.