By:  Corte                                            H.B. No. 2786
       73R6633 MI-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the authority of water corporations to provide water
    1-3  service and to obtain facilities and equipment for the provision of
    1-4  water service and to the method of dissolution of water
    1-5  corporations.
    1-6        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-7        SECTION 1.  Section 2(c), Chapter 76, Acts of the 43rd
    1-8  Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's
    1-9  Texas Civil Statutes), is amended to read as follows:
   1-10        (c)  A water supply corporation may construct, acquire, own,
   1-11  lease, improve, extend, and maintain facilities, plants, equipment,
   1-12  and appliances helpful or necessary to provide more adequate water
   1-13  or sewer service, flood control, and drainage for towns, cities,
   1-14  counties, and other political subdivisions and for private
   1-15  corporations and individuals.
   1-16        SECTION 2.  Section 4, Chapter 76, Acts of the 43rd
   1-17  Legislature, 1st Called Session,  1933 (Article 1434a, Vernon's
   1-18  Texas Civil Statutes), is amended to read as follows:
   1-19        Sec. 4.  Such Water Supply or Sewer Service Corporations
   1-20  shall have the right to purchase, own, hold and lease and otherwise
   1-21  acquire water wells, springs and other sources of water supply, to
   1-22  lease, build, operate and maintain pipe lines for the
   1-23  transportation of water or wastewater, to lease, build and operate
   1-24  plants and equipment necessary for the distribution of water or for
    2-1  the treatment and disposal of wastewater, and to sell water or to
    2-2  provide wastewater services to towns, cities and other political
    2-3  subdivisions of the State of Texas, to private corporations and to
    2-4  individuals.  Such corporations shall have the right of eminent
    2-5  domain to acquire sites for plants and facilities and to acquire
    2-6  rights-of-way and shall have the right to use the rights-of-way of
    2-7  the public highways of the State for the laying of pipelines under
    2-8  supervision of the State Highway Commission.  This section shall
    2-9  only apply to a county with a population of less than 2 million.
   2-10        SECTION 3.  Chapter 76, Acts of the 43rd Legislature, 1st
   2-11  Called Session, 1933 (Article 1434a, Vernon's Texas Civil
   2-12  Statutes), is amended by adding Section 10 to read as follows:
   2-13        Sec. 10.  (a)  On the voluntary dissolution of a corporation
   2-14  formed under this Act, the assets of the corporation shall be
   2-15  applied and distributed as provided by the Texas Non-Profit
   2-16  Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
   2-17  Statutes).
   2-18        (b)  In addition to other recipients authorized to receive
   2-19  assets under the Texas Non-Profit Corporation Act (Article
   2-20  1396-1.01 et seq., Vernon's Texas Civil Statutes), the members may
   2-21  transfer the assets of the corporation to any town, city, county,
   2-22  or other political subdivision that has agreed to accept the assets
   2-23  in any applicable manner required by law.
   2-24        SECTION 4.  The importance of this legislation and the
   2-25  crowded condition of the calendars in both houses create an
   2-26  emergency and an imperative public necessity that the
   2-27  constitutional rule requiring bills to be read on three several
    3-1  days in each house be suspended, and this rule is hereby suspended,
    3-2  and that this Act take effect and be in force from and after its
    3-3  passage, and it is so enacted.