1-1 By: Kuempel (Senate Sponsor - Armbrister) H.B. No. 3357 1-2 (In the Senate - Received from the House April 23, 2001; 1-3 April 24, 2001, read first time and referred to Committee on 1-4 Business and Commerce; May 7, 2001, reported favorably by the 1-5 following vote: Yeas 7, Nays 0; May 7, 2001, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the power of a river authority engaged in the 1-9 distribution and sale of electric energy to provide credit support 1-10 for an affiliated nonprofit corporation. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Subchapter B, Chapter 152, Water Code, is amended 1-13 by adding Section 152.058 to read as follows: 1-14 Sec. 152.058. GUARANTEE AND OTHER CREDIT SUPPORT RELATING TO 1-15 PUBLIC SECURITIES AND OTHER OBLIGATIONS. (a) In this section, 1-16 "public security" has the meaning assigned by Section 1202.001, 1-17 Government Code. 1-18 (b) Under Section 52-a, Article III, Texas Constitution, a 1-19 river authority that has created a corporation under Section 1-20 152.051 may guarantee or otherwise provide credit support for any 1-21 public security or other obligation or contract of that corporation 1-22 if the board of directors of the river authority determines that 1-23 the guarantee or other credit agreement: 1-24 (1) is beneficial to a public purpose of the river 1-25 authority; and 1-26 (2) is for the public purpose of: 1-27 (A) the development and diversification of the 1-28 economy of the state; 1-29 (B) the elimination of unemployment or 1-30 underemployment in the state; or 1-31 (C) the development or expansion of commerce in 1-32 the state. 1-33 (c) A determination by the board of directors of a river 1-34 authority under Subsection (b) is conclusive. 1-35 (d) A guarantee or other credit agreement authorized by 1-36 Subsection (b) may provide for the guarantee of or other credit 1-37 support for public securities or other obligations or contracts of 1-38 the corporation, all or a portion of which may be authorized, 1-39 executed, and delivered in the future. 1-40 (e) Chapter 1202, Government Code, applies to a guarantee or 1-41 other credit agreement under this section as if the guarantee or 1-42 other credit agreement were a public security. 1-43 SECTION 2. This Act takes effect September 1, 2001. 1-44 * * * * *