By: Brown S.B. No. 1311 73R7308 KLL-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the powers of certain cooperative associations. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter B, Chapter 301, Health and Safety 1-5 Code, is amended by adding Section 301.047 to read as follows: 1-6 Sec. 301.047. CONSTRUCTION OF SUBCHAPTER. (a) This 1-7 subchapter does not prevent a cooperative association from: 1-8 (1) creating recourse or nonrecourse debt in the form 1-9 of bonds, debentures, notes, or any other form of obligation; 1-10 (2) encumbering, mortgaging, pledging, or granting a 1-11 security interest in any property of the cooperative association; 1-12 (3) refunding existing debt or obligations by any 1-13 means available under this subchapter; or 1-14 (4) otherwise exercising all express or implied 1-15 powers granted by Section 301.033(b), 301.037, 301.038, 301.039, or 1-16 301.044, or granted by state corporation laws. 1-17 (b) This section only clarifies the powers of cooperative 1-18 associations and does not expand their powers. 1-19 SECTION 2. Section 301.047, Health and Safety Code, as added 1-20 by this Act, applies to acts of a cooperative association covered 1-21 by that section that are performed before, on, or after the 1-22 effective date of this Act. 1-23 SECTION 3. The importance of this legislation and the 1-24 crowded condition of the calendars in both houses create an 2-1 emergency and an imperative public necessity that the 2-2 constitutional rule requiring bills to be read on three several 2-3 days in each house be suspended, and this rule is hereby suspended, 2-4 and that this Act take effect and be in force from and after its 2-5 passage, and it is so enacted.