AN ACT

 1-1     relating to the power and authority of the Upper Guadalupe River

 1-2     Authority to borrow money for any corporate purpose or combination

 1-3     of corporate purposes.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Chapter 5, page 1062, Special Laws, Acts of the

 1-6     46th Legislature, 1939 (Article 8280-124, Vernon's Texas Civil

 1-7     Statutes), is amended by adding Section 10(c) to read as follows:

 1-8           Sec. 10(c).  (a)  The Upper Guadalupe River Authority may

 1-9     borrow money for any corporate purpose or combination of corporate

1-10     purposes pursuant to the methods and procedures specifically

1-11     provided by this chapter or by general law.

1-12           (b)  The board of directors, without the necessity of an

1-13     election, may borrow money on negotiable notes of the Authority to

1-14     be paid solely from the revenues of the Authority derived from the

1-15     ownership of all or any designated part of the Authority's works,

1-16     plant, improvements, facilities, equipment, or water rights after

1-17     deduction of the reasonable cost of maintaining and operating the

1-18     facilities.

1-19           (c)  A note issued under this section may not exceed $1

1-20     million.

1-21           (d)  The notes may mature over a term of not more than 20

1-22     years and bear interest at a rate of not more than 10 percent.

1-23           (e)  The notes may be first or subordinate lien notes within

 2-1     the discretion of the board of directors, but no obligation may

 2-2     ever be a charge on the property of the Authority or on the taxes

 2-3     levied or collected by the Authority, but shall be a charge on the

 2-4     revenues pledged for the payment of the obligation.  No part of the

 2-5     obligation may ever be paid from the taxes levied or collected by

 2-6     the Authority.

 2-7           (f)  As the Authority is a special water authority, Section

 2-8     49.153, Water Code, does not apply to any revenue note issued by

 2-9     the Authority.

2-10           SECTION 2.  Proof of publication of the constitutional notice

2-11     required in the enactment of this Act under the provisions of

2-12     Section 59(d), Article XVI, Texas Constitution, and the statutory

2-13     notice required by Chapter 313, Government Code, have been made in

2-14     the manner provided therein and a copy of the notice and bill as

2-15     originally introduced have been delivered to the governor of the

2-16     State of Texas, as required in such constitutional provision, and

2-17     to all other persons, agencies, officials, or entities required to

2-18     be furnished by the constitution and other laws of the state, and

2-19     that notice and delivery are found and declared to be proper and

2-20     sufficient to satisfy those requirements.  The Texas Natural

2-21     Resource Conservation Commission has filed its recommendations

2-22     relating to this Act with the governor, lieutenant governor, and

2-23     speaker of the house of representatives within the required time.

2-24     All other procedural requirements for the notice, introduction, and

2-25     passage of this Act have been fulfilled and accomplished.

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

 3-2     crowded condition of the calendars in both houses create an

 3-3     emergency and an imperative public necessity that the

 3-4     constitutional rule requiring bills to be read on three several

 3-5     days in each house be suspended, and this rule is hereby suspended,

 3-6     and that this Act take effect and be in force from and after its

 3-7     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1793 passed the Senate on

         April 24, 1997, by the following vote:  Yeas 29, Nays 0; and that

         the Senate concurred in House amendment on May 22, 1997, by the

         following vote:  Yeas 30, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1793 passed the House, with

         amendment, on May 21, 1997, by the following vote:  Yeas 145,

         Nays 0, two present not voting.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor