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.