By Carona S.B. No. 1075
76R5525 DWS-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to powers of certain nonprofit cooperative corporations.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. (a) Section 161.121, Utilities Code, is amended
1-5 to read as follows:
1-6 Sec. 161.121. GENERAL POWERS. An electric cooperative may:
1-7 (1) sue and be sued in its corporate name;
1-8 (2) adopt and alter a corporate seal and use the seal
1-9 or a facsimile of the seal as required by law;
1-10 (3) acquire, own, hold, maintain, exchange, or use
1-11 property or an interest in property, including plants, buildings,
1-12 works, machinery, supplies, equipment, apparatus, and transmission
1-13 and distribution lines or systems that are necessary, convenient,
1-14 or useful;
1-15 (4) dispose of, mortgage, or lease as lessor any of
1-16 its property or assets;
1-17 (5) borrow money and otherwise contract indebtedness,
1-18 issue obligations for its indebtedness, and secure the payment of
1-19 indebtedness by mortgage, pledge, or deed of trust on any or all of
1-20 its property or revenue;
1-21 (6) accept gifts or grants of money, services, or
1-22 property;
1-23 (7) make any contracts necessary or convenient for the
1-24 exercise of the powers granted by this chapter;
2-1 (8) conduct its business and have offices inside or
2-2 outside this state;
2-3 (9) adopt and amend bylaws not inconsistent with the
2-4 articles of incorporation for the administration and regulation of
2-5 the affairs of the cooperative; and
2-6 (10) perform any other acts for the cooperative or its
2-7 members or for another electric cooperative or its members, and
2-8 exercise any other power, that may be necessary, convenient, or
2-9 appropriate to accomplish the purpose for which the cooperative is
2-10 organized[, including other or additional purposes that benefit
2-11 members and nonmembers, either directly or through affiliates,
2-12 described in Section A, Article 2.01, Texas Non-Profit Corporation
2-13 Act (Article 1396-2.01, Vernon's Texas Civil Statutes)].
2-14 (b) Section 4, Chapter 904, Acts of the 75th Legislature,
2-15 Regular Session, 1997, is repealed.
2-16 SECTION 2. Sections 74.3013(g) and (h), Property Code, are
2-17 amended to read as follows:
2-18 (g) [Nonprofit cooperative corporations may combine economic
2-19 development funds from other sources with any economic development
2-20 funds delivered under this section. In addition, such cooperatives
2-21 may engage in other business and commercial activities, in their
2-22 own behalf or through such subsidiaries and affiliates as deemed
2-23 necessary, in order to provide and promote educational
2-24 opportunities and to stimulate rural economic development.]
2-25 [(h)] In this section, a nonprofit cooperative corporation
2-26 means a cooperative corporation organized under Chapters 51 and 52,
2-27 Agriculture Code, Chapter 161, Utilities Code, the Texas Non-Profit
3-1 Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
3-2 Statutes), and the Cooperative Association Act (Article 1396-50.01,
3-3 Vernon's Texas Civil Statutes)[, and the Electric Cooperative
3-4 Corporation Act (Article 1528b, Vernon's Texas Civil Statutes)].
3-5 SECTION 3. (a) In accordance with Section 311.031(c),
3-6 Government Code, which gives effect to a substantive amendment
3-7 enacted by the same legislature that codifies the amended statute,
3-8 the text of Section 161.121, Utilities Code, as set out in this
3-9 Act, gives effect to changes made by Section 4, Chapter 904, Acts
3-10 of the 75th Legislature, Regular Session, 1997.
3-11 (b) To the extent of any conflict, this Act prevails over
3-12 another Act of the 76th Legislature, Regular Session, 1999,
3-13 relating to nonsubstantive additions and corrections in enacted
3-14 codes.
3-15 SECTION 4. This Act takes effect September 1, 1999.
3-16 SECTION 5. The importance of this legislation and the
3-17 crowded condition of the calendars in both houses create an
3-18 emergency and an imperative public necessity that the
3-19 constitutional rule requiring bills to be read on three several
3-20 days in each house be suspended, and this rule is hereby suspended.