77R9831 SGA-F                           
         By Kuempel                                            H.B. No. 3357
         Substitute the following for H.B. No. 3357:
         By Solomons                                       C.S.H.B. No. 3357
                                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.