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.