S.B. No. 1311
                                        AN ACT
    1-1  relating to the powers of certain cooperative associations.
    1-2        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-3        SECTION 1.  Subchapter B, Chapter 301, Health and Safety
    1-4  Code, is amended by adding Section 301.047 to read as follows:
    1-5        Sec. 301.047.  CONSTRUCTION OF SUBCHAPTER.  (a)  This
    1-6  subchapter does not prevent a cooperative association from:
    1-7              (1)  creating recourse or nonrecourse debt in the form
    1-8  of bonds, debentures, notes, or any other form of obligation;
    1-9              (2)  encumbering, mortgaging, pledging, or granting a
   1-10  security interest in any property of the cooperative association;
   1-11              (3)  refunding existing debt or obligations by any
   1-12  means available under this subchapter; or
   1-13              (4)  otherwise exercising all express or implied
   1-14  powers granted by Section 301.033(b), 301.037, 301.038, 301.039, or
   1-15  301.044, or granted by state corporation laws.
   1-16        (b)  This section only clarifies the powers of cooperative
   1-17  associations and does not expand their powers.
   1-18        SECTION 2.  Section 301.047, Health and Safety Code, as added
   1-19  by this Act, applies to acts of a cooperative association covered
   1-20  by that section that are performed before, on, or after the
   1-21  effective date of this Act.
   1-22        SECTION 3.  The importance of this legislation and the
   1-23  crowded condition of the calendars in both houses create an
   1-24  emergency and an imperative public necessity that the
    2-1  constitutional rule requiring bills to be read on three several
    2-2  days in each house be suspended, and this rule is hereby suspended,
    2-3  and that this Act take effect and be in force from and after its
    2-4  passage, and it is so enacted.