76R15284 WP-F                          
         By Wentworth                                          S.B. No. 1171
         Substitute the following for S.B. No. 1171:
         By Counts                                         C.S.S.B. No. 1171
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the power and authority of the Upper Guadalupe River
 1-3     Authority to borrow money for corporate purposes.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subsections (c) and (d), Section 10(c), Chapter
 1-6     5, page 1062, Special Laws, Acts of the 46th Legislature, Regular
 1-7     Session, 1939 (Article 8280-124, Vernon's Texas Civil Statutes),
 1-8     are amended to read as follows:
 1-9           (c)  A note issued under this section may not exceed $55 [$1]
1-10     million in the aggregate.
1-11           (d)  The notes may mature over a term of not more than 40
1-12     [20] years and bear interest at a rate of not more than 10 percent.
1-13           SECTION 2.  (a)  It is the intent of the legislature to
1-14     provide a mechanism for the Upper Guadalupe River Authority to use
1-15     revenues from the provision of wholesale water and wastewater
1-16     services instead of ad valorem taxation in Kerr County to finance
1-17     the construction and simultaneous operation of regional wholesale
1-18     water and wastewater services in Kerr County.  The mechanism allows
1-19     the anticipated growth in Kerr County to pay for itself and ensures
1-20     the continued prudent fiscal management of the Upper Guadalupe
1-21     River Authority.
1-22           (b)  The legislature anticipates that this Act will:
1-23                 (1)  produce a revenue stream for the Upper Guadalupe
 2-1     River Authority sufficient to finance other operations of the
 2-2     authority, including water quality monitoring programs, maintenance
 2-3     of the county's on-site sewage facility, flood programs, and
 2-4     programs of the Headwaters Underground Water Conservation District
 2-5     that are administratively supported by the authority; and
 2-6                 (2)  allow the Upper Guadalupe River Authority to
 2-7     terminate the assessment and collection of ad valorem taxes in Kerr
 2-8     County on and after December 31, 2009, without sacrificing any of
 2-9     the authority's essential water quality programs or services in
2-10     Kerr County.
2-11           SECTION 3.  (a)  The proper and legal notice of the intention
2-12     to introduce this Act, setting forth the general substance of this
2-13     Act, has been published as provided by law, and the notice and a
2-14     copy of this Act have been furnished to all persons, agencies,
2-15     officials, or entities to which they are required to be furnished
2-16     by the constitution and other laws of this state, including the
2-17     governor, who has submitted the notice and Act to the Texas Natural
2-18     Resource Conservation Commission.
2-19           (b)  The Texas Natural Resource Conservation Commission has
2-20     filed its recommendations relating to this Act with the governor,
2-21     lieutenant governor, and speaker of the house of representatives
2-22     within the required time.
2-23           (c)  All requirements of the constitution and laws of this
2-24     state and the rules and procedures of the legislature with respect
2-25     to the notice, introduction, and passage of this Act are fulfilled
2-26     and accomplished.