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.
 1-4           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.