1-1     By:  Junell (Senate Sponsor - Duncan)                 H.B. No. 2982

 1-2           (In the Senate - Received from the House May 5, 1997;

 1-3     May 6, 1997, read first time and referred to Committee on

 1-4     Intergovernmental Relations; May 15, 1997, reported favorably by

 1-5     the following vote:  Yeas 11, Nays 0; May 15, 1997, sent to

 1-6     printer.)

 1-7                            A BILL TO BE ENTITLED

 1-8                                   AN ACT

 1-9     relating to the authority of certain counties to borrow money.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Sections 1, 2, and 3, Chapter 218, Acts of the

1-12     57th Legislature, Regular Session, 1961 (Article 1644c-1, Vernon's

1-13     Texas Civil Statutes), are amended to read as follows:

1-14           Sec. 1.  All counties of this State having a population of

1-15     [more than eight thousand, three hundred (8,300) but] less than

1-16     eight thousand, six hundred (8,600) according to the last preceding

1-17     United States Census, are hereby expressly authorized and empowered

1-18     to borrow money from any source, public or private, in any amount

1-19     not to exceed the aggregate principal amount of $200,000 [One

1-20     Hundred and Sixty-five Thousand Dollars ($165,000)].  By the term

1-21     "aggregate principal amount" is meant the total of the sums so

1-22     borrowed by any county under the provisions of this Act, and not

1-23     the balance owing and due by any county at any one time.

1-24           Sec. 2.  Such counties are further hereby expressly

1-25     authorized and empowered to issue time warrants and/or other

1-26     obligations of such counties in evidence of money borrowed, which

1-27     warrants or obligations may draw interest at any rate the

1-28     commissioners court determines is appropriate [not to exceed four

1-29     percent (4%) per annum], and may be payable within such time, not

1-30     to exceed ten (10) years, and on such terms as may be agreed upon

1-31     between the lending agency and the county to which the loan is

1-32     made;  and such counties are further expressly authorized to levy

1-33     taxes and to pledge any taxes and/or revenues provided for such

1-34     counties, under the Constitution and Laws of this state, in payment

1-35     of such loans.

1-36           Sec. 3.  The Commissioners Court of any such county

1-37     qualifying under Section 1 is empowered with authority to approve

1-38     the issuance of such warrants or obligations which may be in any

1-39     amount or amounts, providing that the total of such warrants or

1-40     obligations does not exceed $200,000 [One Hundred and Sixty-five

1-41     Thousand Dollars ($165,000)].  [No such warrants or obligations

1-42     shall be issued, sold or delivered after five years from the

1-43     effective date of this Act.]

1-44           SECTION 2.  The importance of this legislation and the

1-45     crowded condition of the calendars in both houses create an

1-46     emergency and an imperative public necessity that the

1-47     constitutional rule requiring bills to be read on three several

1-48     days in each house be suspended, and this rule is hereby suspended,

1-49     and that this Act take effect and be in force from and after its

1-50     passage, and it is so enacted.

1-51                                  * * * * *