By:  Fraser                                                       S.B. No. 355
	(In the Senate - Filed February 4, 2005; February 15, 2005, 
read first time and referred to Committee on Natural Resources; 
March 29, 2005, reported favorably by the following vote:  Yeas 11, 
Nays 0; March 29, 2005, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to the authority of the Texas Commission on Environmental 
Quality over the issuance of certain district bonds.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsection (a), Section 49.181, Water Code, as 
amended by Chapters 248 and 608, Acts of the 78th Legislature, 
Regular Session, 2003, is reenacted and amended to read as follows:
	(a)  A district may not issue bonds unless the commission 
determines that the project to be financed by the bonds is feasible 
and issues an order approving the issuance of the bonds.  This 
section does not apply to:
		(1)  refunding bonds if the commission issued an order 
approving the issuance of the bonds or notes that originally 
financed the project;
		(2)  refunding bonds that are issued by a district 
under an agreement between the district and a municipality allowing 
the issuance of the district's bonds to refund bonds issued by the 
municipality to pay the cost of financing facilities; [or]
		(3)  bonds issued to and approved by the Farmers Home 
Administration, the United States Department of Agriculture, the 
North American Development Bank, or the Texas Water Development 
Board; or
		(4)  refunding bonds issued to refund bonds described 
by Subdivision (3).
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.



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