BILL ANALYSIS



H.B. 2925
By: Cook
4-3-95
Committee Report (Amended)


BACKGROUND
Under Section 9A of Article 1434a of the Civil Statutes, the sale
or transfer of Water Supply or Sewer Service Corporation stock,
membership or other right of participation is restricted to the
following three areas: (1) transfers by will to a family member,
(2) without compensation to a family member, or (3) to the
corporation without compensation.  The law does not take into
consideration real estate under the service of a corporation which
is obtained by a person or entity through judicial or non-judicial
foreclosure.  Also, there is no provision currently in place which
would allow a transferee who does not contest the rate, charges, or
conditions of service to accept and agree to the terms through a
written statement without being personally present at the
corporation's office.

PURPOSE
To expand the conditions under which corporation stock, membership,
or right of participation may be transferred to another person or
entity.  Also, to allow a transferee to agree to the conditions of
service by a written agreement.

RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.

SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 9A, Article 1434a of the Civil Statutes
as follows:

     Amends Subsection (c) to allow a transferee to receive water
and sewer service without appearing personally to agree to abide by
the rates, charges, and conditions of service.

     Adds a new Subsection (e) which allows corporation stock, or
membership to be transferred to a person, or entity, who acquires
the real estate under judicial or non-judicial foreclosure. 

SECTION 2. Emergency clause.

EXPLANATION OF AMENDMENTS
Committee Amendment No.1:
(1)  At subsection (c) of Section 9A (Section 1, page 2, line 6, of
the bill), adds a provision requiring all transfer and service
applications to be completed on the corporation's standardized
forms, and filed with the corporation's office in a timely manner.
(2)  At subsection (e) of Section 9A (Section 1, page 3, line 12,
of the bill), adds language providing that the corporation may
require proof of ownership resulting from a foreclosure.

SUMMARY OF COMMITTEE ACTION
H.B.2925 was considered by the committee in a public hearing on
April 3, 1995.
The following person testified in favor of the bill:  
     Mr. Tommy Duck, representing Texas Rural Water Association.
The following persons testified against the bill:  None (0).
The following person testified on the bill: 
     Mr. Phil R. Taylor, representing himself and concerned Board
members and customers.
The committee considered one (1) amendment to the bill.  The
amendment was adopted without objection.
The bill was reported favorably as amended, with the recommendation
that it do pass and be printed, by a record vote of 7 ayes, 0 nays,
0 pnv, and 2 absent.