By:  Lindsay                                                      S.B. No. 1725
	(In the Senate - Filed March 14, 2003; March 20, 2003, read 
first time and referred to Committee on Natural Resources; 
April 22, 2003, reported adversely, with favorable Committee 
Substitute by the following vote:  Yeas 11, Nays 0; April 22, 2003, 
sent to printer.)


COMMITTEE SUBSTITUTE FOR S.B. No. 1725                                   By:  Lindsay


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.  Subsection (d), Section 2.02, Chapter 1029, Acts 
of the 76th Legislature, Regular Session, 1999, is amended to read 
as follows:
	(d)  At the first election after each time the voting 
districts are redrawn, [:
		[(1)  five new] directors shall be elected only to 
those positions for which the term of office is expiring.  A 
director in office on or elected to office before the effective date 
of a change in the boundaries of the voting districts shall serve 
the term of the position to which elected even though the change in 
boundaries places the person's residence outside the district for 
which the person was elected [represent 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 4.10, Chapter 1029, Acts of the 76th 
Legislature, Regular Session, 1999, is amended by adding Subsection 
(d) to read as follows:
	(d)  Notwithstanding any inconsistent provision of general 
law or of a home-rule municipal charter or ordinance, the authority 
and a municipality may enter into a contract of unlimited duration.
	SECTION 3.  Subsections (a) and (c), Section 5.05, Chapter 
1029, Acts of the 76th Legislature, Regular Session, 1999, are 
amended to read as follows:
	(a)  The authority may [shall] develop a procedure for 
cooperatively funding a project of the authority with money from 
other political subdivisions located entirely [districts] 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 political subdivisions, or 
fulfills a governmental purpose of the authority that the authority 
determines would be furthered by cooperative funding from a private 
entity [districts].
	(c)  A political subdivision [district] may enter into a 
contract with the authority for the political subdivision
[district] to finance a portion of the proposed project with the 
political subdivision's [district'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 may [must]:
		(1)  reduce the value of the bond issuance to the degree 
that the political subdivision [district] provides project 
funding; and
		(2)  credit the political subdivision [district] 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 political subdivision [district] to 
service the authority's bond debt or interest.
	SECTION 4.  Subsection (b), Section 5.05, Chapter 1029, Acts 
of the 76th Legislature, Regular Session, 1999, is repealed.
	SECTION 5.  The change in law made by Subsection (d), Section 
4.10, Chapter 1029, Acts of the 76th Legislature, Regular Session, 
1999, as added by this Act, applies only to a contract between the 
North Harris County Regional Water Authority and a municipality 
that was entered into after January 1, 2002.
	SECTION 6.  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, 2003.



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