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                                  * * * * *