BILL ANALYSIS


                                                        H.B. 2925
                                               By: Cook (Sponsor)
                                                Natural Resources
                                                         05-19-95
                              Senate Committee Report (Unamended)
BACKGROUND

Under Section 9A, Article 1434a, V.T.C.S., the sale or transfer of
Water Supply or Sewer Service Corporation stock, membership, or
other right or participation is restricted to transfers by will to
a family member, without compensation to a family member, or
without compensation to the corporation.

PURPOSE

As proposed, H.B. 2925 expands the conditions under which
corporation stock, membership, or right of participation may be
transferred to another person or entity.  H.B. 2925 also authorizes
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 grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 9A, Article 1434a, V.T.C.S., as follows:

     (a)-(b) Make no change.
     
     (c) Requires all transfers and service applications to be
     completed on the corporation's standardized forms, and filed
     with the corporation's office in a timely manner.  Prohibits
     the conditions of service from requiring a personal appearance
     in the office of the corporation if the transferee certifies
     in writing to the corporation that the transferee accepts and
     agrees to abide by such rates, charges, and conditions of
     service.
     
     (d) Makes no change.
     
     (e) Requires the corporation to reassign, without limitation
     under Subsection (a), canceled stock, or a cancelled
     membership or other right of participation to a person or
     entity that acquires the real estate from which the membership
     or other right of participation arose through judicial or
     nonjudicial foreclosure, subject to compliance with the
     conditions for water or sewer service prescribed by the
     corporation's published rates, charges, and conditions of
     service.  Authorizes the corporation to require proof of
     ownership resulting from such foreclosure.
     
     SECTION 2.     Emergency clause.
           Effective date: upon passage.