By Hinojosa                                     H.B. No. 1694

      75R6393 MI-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the limitation of liability for a water supply

 1-3     corporation.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter B, Chapter 101, Civil Practice and

 1-6     Remedies Code, is amended by adding Section 101.0235 to read as

 1-7     follows:

 1-8           Sec. 101.0235.  LIMITATION OF LIABILITY:  WATER SUPPLY

 1-9     CORPORATIONS.  (a)  The liability of a water supply corporation is

1-10     limited to money damages in a maximum amount of $250,000 for each

1-11     person and $500,000 for each single occurrence for bodily injury or

1-12     death and $100,000 for each single occurrence for injury to or

1-13     destruction of property.

1-14           (b)  The limitation of liability authorized by this section

1-15     applies only to a cause of action arising out of fire prevention or

1-16     fire protection activities for which the water supply corporation

1-17     supplied the water.

1-18           (c)  In this section, "water supply corporation" has the

1-19     meaning assigned by Section 13.002, Water Code.

1-20           SECTION 2.  (a) This Act takes effect September 1, 1997.

1-21           (b)  The change in law made by Section 101.0235, Civil

1-22     Practice and Remedies Code, as added by this Act, applies only to a

1-23     cause of action that accrues on or after September 1, 1997.  A

1-24     cause of action that accrued before September 1, 1997, is governed

 2-1     by the law as it existed immediately before the effective date of

 2-2     this Act, and that law is continued in effect for that purpose.

 2-3           SECTION 3.  The importance of this legislation and the

 2-4     crowded condition of the calendars in both houses create an

 2-5     emergency and an imperative public necessity that the

 2-6     constitutional rule requiring bills to be read on three several

 2-7     days in each house be suspended, and this rule is hereby suspended.