By: Wentworth S.B. No. 1171
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the power and authority of the Upper Guadalupe River
1-2 Authority to borrow money for corporate purposes.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 10(c), Chapter 5, page 1062, Special
1-5 Laws, Acts of the 46th Legislature, 1939 (Article 8280-124,
1-6 Vernon's Texas Civil Statutes), is amended to read as follows:
1-7 Sec. 10(c). (a) The Upper Guadalupe River Authority may
1-8 borrow money for any corporate purpose or combination of corporate
1-9 purposes pursuant to the methods and procedures specifically
1-10 provided by this chapter or by general law.
1-11 (b) The board of directors, without the necessity of an
1-12 election, may borrow money on negotiable notes of the Authority to
1-13 be paid solely from the revenues of the Authority derived from the
1-14 ownership of all or any designated part of the Authority's works,
1-15 plant, improvements, facilities, equipment, or water rights after
1-16 deduction of the reasonable cost of maintaining and operating the
1-17 facilities.
1-18 (c) [A note issued under this section may not exceed $1
1-19 million.]
1-20 [(d)] The notes may mature over a term of not more than 40
1-21 [20] years and bear interest at a rate of not more than 10 percent.
1-22 (d) [(e)] The notes may be first or subordinate lien notes
1-23 within the discretion of the board of directors, but no obligation
1-24 may ever be a charge on the property of the Authority or on the
2-1 taxes levied or collected by the Authority, but shall be a charge
2-2 on the revenues pledged for the payment of the obligation. No part
2-3 of the obligation may ever be paid from the taxes levied or
2-4 collected by the Authority.
2-5 (e) [(f)] As the Authority is a special water authority,
2-6 Section 49.153, Water Code, does not apply to any revenue note
2-7 issued by the Authority.
2-8 SECTION 2. (a) The proper and legal notice of the intention
2-9 to introduce this Act, setting forth the general substance of this
2-10 Act, has been published as provided by law, and the notice and a
2-11 copy of this Act have been furnished to all persons, agencies,
2-12 officials, or entities to which they are required to be furnished
2-13 by the constitution and other laws of this state, including the
2-14 governor, who has submitted the notice and Act to the Texas Natural
2-15 Resource Conservation Commission.
2-16 (b) The Texas Natural Resource Conservation Commission has
2-17 filed its recommendations relating to this Act with the governor,
2-18 lieutenant governor, and speaker of the house of representatives
2-19 within the required time.
2-20 (c) All requirements of the constitution and laws of this
2-21 state and the rules and procedures of the legislature with respect
2-22 to the notice, introduction, and passage of this Act are fulfilled
2-23 and accomplished.