1-1  By:  Brown                                            S.B. No. 1311
    1-2        (In the Senate - Filed March 24, 1993; March 25, 1993, read
    1-3  first time and referred to Committee on Economic Development;
    1-4  May 4, 1993, reported favorably by the following vote:  Yeas 10,
    1-5  Nays 0; May 4, 1993, sent to printer.)
    1-6                            COMMITTEE VOTE
    1-7                          Yea     Nay      PNV      Absent 
    1-8        Parker             x                               
    1-9        Lucio              x                               
   1-10        Ellis              x                               
   1-11        Haley              x                               
   1-12        Harris of Dallas   x                               
   1-13        Harris of Tarrant  x                               
   1-14        Leedom             x                               
   1-15        Madla              x                               
   1-16        Rosson             x                               
   1-17        Shapiro            x                               
   1-18        Wentworth                                     x    
   1-19                         A BILL TO BE ENTITLED
   1-20                                AN ACT
   1-21  relating to the powers of certain cooperative associations.
   1-22        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-23        SECTION 1.  Subchapter B, Chapter 301, Health and Safety
   1-24  Code, is amended by adding Section 301.047 to read as follows:
   1-25        Sec. 301.047.  CONSTRUCTION OF SUBCHAPTER.  (a)  This
   1-26  subchapter does not prevent a cooperative association from:
   1-27              (1)  creating recourse or nonrecourse debt in the form
   1-28  of bonds, debentures, notes, or any other form of obligation;
   1-29              (2)  encumbering, mortgaging, pledging, or granting a
   1-30  security interest in any property of the cooperative association;
   1-31              (3)  refunding existing debt or obligations by any
   1-32  means available under this subchapter; or
   1-33              (4)  otherwise exercising all express or implied
   1-34  powers granted by Section 301.033(b), 301.037, 301.038, 301.039, or
   1-35  301.044, or granted by state corporation laws.
   1-36        (b)  This section only clarifies the powers of cooperative
   1-37  associations and does not expand their powers.
   1-38        SECTION 2.  Section 301.047, Health and Safety Code, as added
   1-39  by this Act, applies to acts of a cooperative association covered
   1-40  by that section that are performed before, on, or after the
   1-41  effective date of this Act.
   1-42        SECTION 3.  The importance of this legislation and the
   1-43  crowded condition of the calendars in both houses create an
   1-44  emergency and an imperative public necessity that the
   1-45  constitutional rule requiring bills to be read on three several
   1-46  days in each house be suspended, and this rule is hereby suspended,
   1-47  and that this Act take effect and be in force from and after its
   1-48  passage, and it is so enacted.
   1-49                               * * * * *
   1-50                                                         Austin,
   1-51  Texas
   1-52                                                         May 4, 1993
   1-53  Hon. Bob Bullock
   1-54  President of the Senate
   1-55  Sir:
   1-56  We, your Committee on Economic Development to which was referred
   1-57  S.B. No. 1311, have had the same under consideration, and I am
   1-58  instructed to report it back to the Senate with the recommendation
   1-59  that it do pass and be printed.
   1-60                                                         Parker,
   1-61  Chairman
   1-62                               * * * * *
   1-63                               WITNESSES
   1-64                                                  FOR   AGAINST  ON
   1-65  ___________________________________________________________________
   1-66  Name:  Eric S. Anderson                          x
   1-67  Representing:  Tx Med. Center Heating/Cooling
   1-68  City:  Houston
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