By Kuempel H.B. No. 3357 77R9831 SGA-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the power of a river authority engaged in the 1-3 distribution and sale of electric energy to provide credit support 1-4 for an affiliated nonprofit corporation. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subchapter B, Chapter 152, Water Code, is amended 1-7 by adding Section 152.058 to read as follows: 1-8 Sec. 152.058. GUARANTEE AND OTHER CREDIT SUPPORT RELATING TO 1-9 PUBLIC SECURITIES AND OTHER OBLIGATIONS. (a) In this section, 1-10 "public security" has the meaning assigned by Section 1202.001, 1-11 Government Code. 1-12 (b) Under Section 52-a, Article III, Texas Constitution, a 1-13 river authority that has created a corporation under Section 1-14 152.051 may guarantee or otherwise provide credit support for any 1-15 public security or other obligation or contract of that corporation 1-16 if the board of directors of the river authority determines that 1-17 the guarantee or other credit agreement: 1-18 (1) is beneficial to a public purpose of the river 1-19 authority; and 1-20 (2) is for the public purpose of: 1-21 (A) the development and diversification of the 1-22 economy of the state; 1-23 (B) the elimination of unemployment or 1-24 underemployment in the state; or 2-1 (C) the development or expansion of commerce in 2-2 the state. 2-3 (c) A determination by the board of directors of a river 2-4 authority under Subsection (b) is conclusive. 2-5 (d) A guarantee or other credit agreement authorized by 2-6 Subsection (b) may provide for the guarantee of or other credit 2-7 support for public securities or other obligations or contracts of 2-8 the corporation, all or a portion of which may be authorized, 2-9 executed, and delivered in the future. 2-10 (e) Chapter 1202, Government Code, applies to a guarantee or 2-11 other credit agreement under this section as if the guarantee or 2-12 other credit agreement were a public security. 2-13 SECTION 2. This Act takes effect September 1, 2001.