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.  Subsections (c) and (d), Section 10(c), Chapter
 1-5     5, page 1062, Special Laws, Acts of the 46th Legislature, Regular
 1-6     Session, 1939 (Article 8280-124, Vernon's Texas Civil Statutes),
 1-7     are amended to read as follows:
 1-8           (c)  A note issued under this section may not exceed $55 [$1]
 1-9     million in the aggregate.
1-10           (d)  The notes may mature over a term of not more than 40
1-11     [20] years and bear interest at a rate of not more than 10 percent.
1-12           SECTION 2.  (a)  It is the intent of the legislature to
1-13     provide a mechanism for the Upper Guadalupe River Authority to use
1-14     revenues from the provision of wholesale water and wastewater
1-15     services instead of ad valorem taxation in Kerr County to finance
1-16     the construction and simultaneous operation of regional wholesale
1-17     water and wastewater services in Kerr County.  The mechanism allows
1-18     the anticipated growth in Kerr County to pay for itself and ensures
1-19     the continued prudent fiscal management of the Upper Guadalupe
1-20     River Authority.
1-21           (b)  The legislature anticipates that this Act will:
1-22                 (1)  produce a revenue stream for the Upper Guadalupe
1-23     River Authority sufficient to finance other operations of the
1-24     authority, including water quality monitoring programs, maintenance
 2-1     of the county's on-site sewage facility, flood programs, and
 2-2     programs of the Headwaters Underground Water Conservation District
 2-3     that are administratively supported by the authority; and
 2-4                 (2)  allow the Upper Guadalupe River Authority to
 2-5     terminate the assessment and collection of ad valorem taxes in Kerr
 2-6     County on and after December 31, 2009, without sacrificing any of
 2-7     the authority's essential water quality programs or services in
 2-8     Kerr County.
 2-9           SECTION 3.  (a)  The proper and legal notice of the intention
2-10     to introduce this Act, setting forth the general substance of this
2-11     Act, has been published as provided by law, and the notice and a
2-12     copy of this Act have been furnished to all persons, agencies,
2-13     officials, or entities to which they are required to be furnished
2-14     by the constitution and other laws of this state, including the
2-15     governor, who has submitted the notice and Act to the Texas Natural
2-16     Resource Conservation Commission.
2-17           (b)  The Texas Natural Resource Conservation Commission has
2-18     filed its recommendations relating to this Act with the governor,
2-19     lieutenant governor, and speaker of the house of representatives
2-20     within the required time.
2-21           (c)  All requirements of the constitution and laws of this
2-22     state and the rules and procedures of the legislature with respect
2-23     to the notice, introduction, and passage of this Act are fulfilled
2-24     and accomplished.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 1171 passed the Senate on
         April 26, 1999, by the following vote:  Yeas 30, Nays 0; and that
         the Senate concurred in House amendment on May 28, 1999, by a
         viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 1171 passed the House, with
         amendment, on May 26, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor