1-1  By:  Cook (Senate Sponsor - Nixon)                    H.B. No. 2925
    1-2        (In the Senate - Received from the House May 12, 1995;
    1-3  May 16, 1995, read first time and referred to Committee on Natural
    1-4  Resources; May 19, 1995, reported favorably by the following vote:
    1-5  Yeas 10, Nays 0; May 19, 1995, sent to printer.)
    1-6                         A BILL TO BE ENTITLED
    1-7                                AN ACT
    1-8  relating to the sale or transfer of Water Supply or Sewer Service
    1-9  Corporation stock, membership, or other right of participation of
   1-10  the person or entity to whom the membership is transferred.
   1-11        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-12        SECTION 1.  Section 9A, Chapter 76, Acts of the 43rd
   1-13  Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's
   1-14  Texas Civil Statutes), is amended to read as follows:
   1-15        Sec. 9A.  (a)  A person or entity that owns any stock of, is
   1-16  a member of, or has some other right of participation in a
   1-17  corporation may not sell or transfer that stock, membership, or
   1-18  other right of participation to another person or entity except:
   1-19              (1)  by will to a transferee who is a person related to
   1-20  the testator within the second degree by consanguinity;
   1-21              (2)  by transfer without compensation to a transferee
   1-22  who is a person related to the owner of the stock or other interest
   1-23  within the second degree by consanguinity; or
   1-24              (3)  by transfer without compensation or by sale to the
   1-25  corporation.
   1-26        (b)  Subsection (a) of this section does not apply to a
   1-27  person or entity that transfers the membership or other right of
   1-28  participation to another person or entity as part of the conveyance
   1-29  of real estate from which the membership or other right of
   1-30  participation arose.
   1-31        (c)  The transfer of stock, a membership, or another right of
   1-32  participation under this section does not entitle the transferee to
   1-33  water or sewer service unless each condition for water or sewer
   1-34  service is met as provided in the corporation's published rates,
   1-35  charges, and conditions of service.  All transfer and service
   1-36  applications shall be completed on the corporation's standardized
   1-37  forms, and filed with the corporation's office in a timely manner.
   1-38  However, the conditions of service may not require a personal
   1-39  appearance in the office of the corporation if the transferee
   1-40  certifies in writing to the corporation that the transferee accepts
   1-41  and agrees to abide by such rates, charges, and conditions of
   1-42  service.  Water or sewer service provided by the corporation as a
   1-43  result of stock, membership, or other right of participation may be
   1-44  conditioned on ownership of the real estate designated to receive
   1-45  service and from which the membership or other right of
   1-46  participation arose.
   1-47        (d)  The corporation may cancel a person's or other entity's
   1-48  stock, membership, or other right of participation if the person or
   1-49  other entity fails to meet the conditions for water or sewer
   1-50  service prescribed by the corporation's published rates, charges,
   1-51  and conditions of service, or fails to comply with any other
   1-52  condition placed on the receipt of water or sewer service under the
   1-53  stock, membership, or other right of participation authorized under
   1-54  Subsection (c) of this section.  The corporation may, consistent
   1-55  with the limitations prescribed by Subsection (a) of this section,
   1-56  reassign canceled stock, or a canceled membership, or other right
   1-57  of participation to any person or entity that has legal title to
   1-58  the real estate from which the canceled membership or other right
   1-59  of participation arose and for which water or sewer service is
   1-60  requested, subject to compliance with the conditions for water or
   1-61  sewer service prescribed by the corporation's published rates,
   1-62  charges, and conditions of service.
   1-63        (e)  The corporation shall reassign, without limitation under
   1-64  Subsection (a), canceled stock, or a canceled membership or other
   1-65  right of participation to a person or entity that acquires the real
   1-66  estate from which the membership or other right of participation
   1-67  arose through judicial or nonjudicial foreclosure, subject to
   1-68  compliance with the conditions for water or sewer service
    2-1  prescribed by the corporation's published rates, charges, and
    2-2  conditions of service.  The corporation may require proof of
    2-3  ownership resulting from such foreclosure.
    2-4        SECTION 2.  The importance of this legislation and the
    2-5  crowded condition of the calendars in both houses create an
    2-6  emergency and an imperative public necessity that the
    2-7  constitutional rule requiring bills to be read on three several
    2-8  days in each house be suspended, and this rule is hereby suspended,
    2-9  and that this Act take effect and be in force from and after its
   2-10  passage, and it is so enacted.
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