1-1                                   AN ACT

 1-2     relating to the powers and duties of water supply corporations.

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

 1-4           SECTION 1.  Section 65.001(10), Water Code, is amended to

 1-5     read as follows:

 1-6                 (10)  "Water supply corporation" means any

 1-7     member-owned, consumer-owned water supply corporation created and

 1-8     operating under Chapter 76, Acts of the 43rd Legislature, 1st

 1-9     Called Session, 1933 (Article 1434a, Vernon's Texas Civil

1-10     Statutes), that:

1-11                       (A)  provides water supply services to

1-12     noncontiguous subdivisions in two or more counties, at least one of

1-13     which counties has a population greater than two million; or

1-14                       (B)  on or before January 1, 1985, was providing

1-15     the services of a water supply corporation under a certificate of

1-16     convenience and necessity issued by the Public Utility Commission

1-17     of Texas.

1-18           SECTION 2.  The importance of this legislation and the

1-19     crowded condition of the calendars in both houses create an

1-20     emergency and an imperative public necessity that the

1-21     constitutional rule requiring bills to be read on three several

1-22     days in each house be suspended, and this rule is hereby suspended,

1-23     and that this Act take effect and be in force from and after its

1-24     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 2851 was passed by the House on April

         11, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 2851 was passed by the Senate on May

         15, 1997, by the following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor