By:  Armbrister                                       S.B. No. 1616
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the powers of river authorities engaged in the
 1-3     distribution and sale of electric energy and their relationship
 1-4     with affiliated non-profit corporations.
 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.
1-10           (a)  Under Section 52-a, Article III, Texas Constitution, a
1-11     creating river authority of a corporation created under Section
1-12     152.051 may guarantee or otherwise provide credit support for any
1-13     public security or other obligation or contract of such corporation
1-14     provided the governing board of the creating river authority
1-15     determines that the guarantee or other credit agreement is:
1-16           (1)  beneficial to a public purpose of the river authority;
1-17     and
1-18           (2)  for the public purpose of development and
1-19     diversification of the economy of the state, the elimination of
1-20     unemployment or underemployment in the state, and/or the
1-21     development or expansion of commerce in the state.
1-22           (b)  A determination by a governing board of a creating river
1-23     authority made under Subsection (a) is conclusive.
 2-1           (c)  A guarantee or other credit agreement authorized by
 2-2     Subsection (a) may provide for the guarantee of or other credit
 2-3     support for public securities or other obligations or contracts of
 2-4     the corporation, all or a portion of which, may be authorized,
 2-5     executed and delivered in the future.
 2-6           (d)  The provisions of Chapter 1202, Government Code, shall
 2-7     apply to any guarantee or other credit agreement under this section
 2-8     and the term public security shall have the meaning given in
 2-9     Chapter 1202, Government Code.  For purposes of Section 1202,
2-10     Government Code, a guarantee or other credit agreement under this
2-11     section constitutes a public security.
2-12           SECTION 2.  This Act takes effect September 1, 2001.
2-13           SECTION 3.  The importance of this legislation and the
2-14     crowded condition of the calendars in both houses create an
2-15     emergency and an imperative public necessity that the
2-16     constitutional rule requiring bills to be read on three several
2-17     days in each house be suspended, and this rule is hereby suspended.