1-1     By:  Wentworth                                        S.B. No. 1171
 1-2           (In the Senate - Filed March 10, 1999; March 11, 1999, read
 1-3     first time and referred to Committee on Natural Resources;
 1-4     April 15, 1999, reported favorably by the following vote:  Yeas 5,
 1-5     Nays 0; April 15, 1999, 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 corporate purposes.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 10(c), Chapter 5, page 1062, Special
1-12     Laws, Acts of the 46th Legislature, 1939 (Article 8280-124,
1-13     Vernon's Texas Civil Statutes), is amended to read as follows:
1-14           Sec. 10(c).  (a)  The Upper Guadalupe River Authority may
1-15     borrow money for any corporate purpose or combination of corporate
1-16     purposes pursuant to the methods and procedures specifically
1-17     provided by this chapter or by general law.
1-18           (b)  The board of directors, without the necessity of an
1-19     election, may borrow money on negotiable notes of the Authority to
1-20     be paid solely from the revenues  of the Authority derived from the
1-21     ownership of all or any designated part of the Authority's works,
1-22     plant, improvements, facilities, equipment, or water rights after
1-23     deduction of the reasonable cost of maintaining and operating the
1-24     facilities.
1-25           (c)  [A note issued under this section may not exceed $1
1-26     million.]
1-27           [(d)]  The notes may mature over a term of not more than 40
1-28     [20] years and bear interest at a rate of not more than 10 percent.
1-29           (d) [(e)]  The notes may be first or subordinate lien notes
1-30     within the discretion of the board of directors, but no obligation
1-31     may ever be a charge on the property of the Authority or on the
1-32     taxes levied or collected by the Authority, but shall be a charge
1-33     on the revenues pledged for the payment of the obligation.  No part
1-34     of the obligation may ever be paid from the taxes levied or
1-35     collected by the Authority.
1-36           (e) [(f)]  As the Authority is a special water authority,
1-37     Section 49.153, Water Code, does not apply to any revenue note
1-38     issued by the Authority.
1-39           SECTION 2.  (a)  The proper and legal notice of the intention
1-40     to introduce this Act, setting forth the general substance of this
1-41     Act, has been published as provided by law, and the notice and a
1-42     copy of this Act have been furnished to all persons, agencies,
1-43     officials, or entities to which they are required to be furnished
1-44     by the constitution and other laws of this state, including the
1-45     governor, who has submitted the notice and Act to the Texas Natural
1-46     Resource Conservation Commission.
1-47           (b)  The Texas Natural Resource Conservation Commission has
1-48     filed its recommendations relating to this Act with the governor,
1-49     lieutenant governor, and speaker of the house of representatives
1-50     within the required time.
1-51           (c)  All requirements of the constitution and laws of this
1-52     state and the rules and procedures of the legislature with respect
1-53     to the notice, introduction, and passage of this Act are fulfilled
1-54     and accomplished.
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