By Wentworth                                          S.B. No. 1171
         76R7604 WP-D                           
                                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.  Section 10(c), Chapter 5, page 1062, Special
 1-6     Laws, Acts of the 46th Legislature, 1939 (Article 8280-124,
 1-7     Vernon's Texas Civil Statutes), is amended 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 40
1-22     [20] years and bear interest at a rate of not more than 10 percent.
1-23           (d) [(e)]  The notes may be first or subordinate lien notes
1-24     within the discretion of the board of directors, but no obligation
 2-1     may ever be a charge on the property of the Authority or on the
 2-2     taxes levied or collected by the Authority, but shall be a charge
 2-3     on the revenues pledged for the payment of the obligation.  No part
 2-4     of the obligation may ever be paid from the taxes levied or
 2-5     collected by the Authority.
 2-6           (e) [(f)]  As the Authority is a special water authority,
 2-7     Section 49.153, Water Code, does not apply to any revenue note
 2-8     issued by the Authority.
 2-9           SECTION 2.  (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.