1-1                                   AN ACT

 1-2     relating to certain contracts for fire hydrant service.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 2, Chapter 76, Acts of the 43rd

 1-5     Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's

 1-6     Texas Civil Statutes), is amended by adding Subsections (e) and (f)

 1-7     to read as follows:

 1-8           (e)  Water supply and sewer service corporations may enter

 1-9     into a contract with a municipality or a volunteer fire department

1-10     under which the water supply or sewer service corporation may

1-11     supply water either to municipally owned fire hydrants or to water

1-12     supply or sewer service corporation fire hydrants for the purposes

1-13     of fire suppression by the municipality's fire department or a

1-14     volunteer fire department.  The contract shall be under such terms

1-15     and conditions as shall be mutually beneficial to the contracting

1-16     parties.

1-17           (f)  The furnishing of a water supply and fire hydrant

1-18     equipment by a municipality or a volunteer fire department directly

1-19     or through another entity by a lease, contract, or any other manner

1-20     is an essential governmental function and not a proprietary

1-21     function for all purposes, including the application of Chapter

1-22     101, Civil Practice and Remedies Code.  A water supply or sewer

1-23     service corporation that contracts with a municipality or volunteer

1-24     fire department to provide a water supply or fire hydrant equipment

 2-1     shall be liable for damages only to the extent that the

 2-2     municipality or volunteer fire department would be liable if the

 2-3     municipality or volunteer fire department were performing the

 2-4     governmental function directly.

 2-5           SECTION 2.  The importance of this legislation and the

 2-6     crowded condition of the calendars in both houses create an

 2-7     emergency and an imperative public necessity that the

 2-8     constitutional rule requiring bills to be read on three several

 2-9     days in each house be suspended, and this rule is hereby suspended,

2-10     and that this Act take effect and be in force from and after its

2-11     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1217 was passed by the House on April

         10, 1997, by the following vote:  Yeas 144, Nays 0, 1 present, not

         voting; and that the House concurred in Senate amendments to H.B.

         No. 1217 on May 19, 1997, by the following vote:  Yeas 142, Nays 0,

         2 present, not voting.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 1217 was passed by the Senate, with

         amendments, on May 15, 1997, by the following vote:  Yeas 31, Nays

         0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor