1-1     By:  Wentworth                                        S.B. No. 1793

 1-2           (In the Senate - Filed March 14, 1997; March 24, 1997, read

 1-3     first time and referred to Committee on Natural Resources;

 1-4     April 10, 1997, reported favorably by the following vote:  Yeas 10,

 1-5     Nays 0; April 10, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the power and authority of the Upper Guadalupe River

 1-9     Authority to borrow money for any corporate purpose or combination

1-10     of corporate purposes.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Chapter 5, page 1062, Special Laws, Acts of the

1-13     46th Legislature, 1939 (Article 8280-124, Vernon's Texas Civil

1-14     Statutes), is amended by adding Section 10(c) to read as follows:

1-15           Sec. 10(c).  (a)  The Authority may borrow money for any

1-16     corporate purpose or combination of corporate purposes pursuant to

1-17     the methods and procedures specifically provided by this chapter or

1-18     by general law.

1-19           (b)  The board of directors, without the necessity of an

1-20     election, may borrow money on negotiable notes of the Authority to

1-21     be paid solely from the revenues of the Authority derived from the

1-22     ownership of all or any designated part of the Authority's works,

1-23     plant, improvements, facilities, equipment, or water rights after

1-24     deduction of the reasonable cost of maintaining and operating the

1-25     facilities.

1-26           (c)  The notes may mature over a term of not more than 20

1-27     years and bear interest at a rate of not more than 10 percent.

1-28           (d)  The notes may be first or subordinate lien notes within

1-29     the discretion of the board of directors, but no obligation may

1-30     ever be a charge on the property of the Authority or on the taxes

1-31     levied or collected by the Authority, but shall be a charge on the

1-32     revenues pledged for the payment of the obligation.  No part of the

1-33     obligation may ever be paid from the taxes levied or collected by

1-34     the Authority.

1-35           (e)  As the Authority is a special water authority, Section

1-36     49.153, Water Code, does not apply to any revenue note issued by

1-37     the Authority.

1-38           SECTION 2.  Proof of publication of the constitutional notice

1-39     required in the enactment of this Act under the provisions of

1-40     Section 59(d), Article XVI, Texas Constitution, and the statutory

1-41     notice required by Chapter 313, Government Code, have been made in

1-42     the manner provided therein and a copy of the notice and bill as

1-43     originally introduced have been delivered to the governor of the

1-44     State of Texas, as required in such constitutional provision, and

1-45     to all other persons, agencies, officials, or entities required to

1-46     be furnished by the constitution and other laws of the state, and

1-47     that notice and delivery are found and declared to be proper and

1-48     sufficient to satisfy those requirements.  The Texas Natural

1-49     Resource Conservation Commission has filed its recommendations

1-50     relating to this Act with the governor, lieutenant governor, and

1-51     speaker of the house of representatives within the required time.

1-52     All other procedural requirements for the notice, introduction, and

1-53     passage of this Act have been fulfilled and accomplished.

1-54           SECTION 3.  The importance of this legislation and the

1-55     crowded condition of the calendars in both houses create an

1-56     emergency and an imperative public necessity that the

1-57     constitutional rule requiring bills to be read on three several

1-58     days in each house be suspended, and this rule is hereby suspended,

1-59     and that this Act take effect and be in force from and after its

1-60     passage, and it is so enacted.

1-61                                  * * * * *