1-1                                   AN ACT

 1-2     relating to the purchase by the Texas Water Development Board of

 1-3     certain bonds or other obligations issued by a political

 1-4     subdivision.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Subchapter E, Chapter 17, Water Code, is amended

 1-7     by adding Section 17.1765 to read as follows:

 1-8           Sec. 17.1765.  CERTIFICATION OF APPLICATION.  Before the

 1-9     board may purchase bonds or other obligations issued by a political

1-10     subdivision, the political subdivision must certify to the board

1-11     that the application for financial assistance filed with the board

1-12     was approved in an open meeting.

1-13           SECTION 2.  This Act takes effect September 1, 1997, and

1-14     applies only to the purchase of bonds or other obligations by the

1-15     Texas Water Development Board under an application for financial

1-16     assistance that is filed with the board on or after that date.  The

1-17     purchase of bonds or other obligations by the Texas Water

1-18     Development Board under an application for financial assistance

1-19     that is filed with the board before the effective date of this Act

1-20     is governed by the law in effect on the date the application was

1-21     filed, and that law is continued in effect for that purpose.

1-22           SECTION 3.  The importance of this legislation and the

1-23     crowded condition of the calendars in both houses create an

1-24     emergency and an imperative public necessity that the

 2-1     constitutional rule requiring bills to be read on three several

 2-2     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1154 was passed by the House on March

         19, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 1154 was passed by the Senate on May

         12, 1997, by the following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor