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.