Memo from David Herndon and Jarvis Miller to William P. Clements regarding Proposed Statutory Amendment to Internal Revenue Code to Require Approval by Elected Officials before River Authority/Water District/Port Bonds Would Receive Tax Exempt Status. Herndon and Miller advise Governor Clements of an amendment that would require that the governor approve all the bonds the River Authorities, Major Water Districts, and Ports issue. They give the governor four options and recommend the third option: seek exemption for the River Authorities' bonds and require signature only for small commercial issues.