By Williams                                           H.B. No. 2851

         75R6645 JJT-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

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

 1-3     validating certain actions of water supply corporations.

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

 1-5           SECTION 1.  Section 65.001(10), Water Code, is amended to

 1-6     read as follows:

 1-7                 (10)  "Water supply corporation" means any

 1-8     member-owned, consumer-owned water supply corporation created and

 1-9     operating under Chapter 76, Acts of the 43rd Legislature, 1st

1-10     Called Session, 1933 (Article 1434a, Vernon's Texas Civil

1-11     Statutes), that:

1-12                       (A)  provides water supply services to

1-13     noncontiguous subdivisions in two or more counties, at least one of

1-14     which counties has a population greater than two million; or

1-15                       (B)  on or before January 1, 1985, was providing

1-16     the services of a water supply corporation under a certificate of

1-17     convenience and necessity issued by the Public Utility Commission

1-18     of Texas.

1-19           SECTION 2.  The legislature validates and confirms in all

1-20     respects the following acts and proceedings of a water supply

1-21     corporation, as defined by Section 65.001, Water Code, as amended

1-22     by this Act:

1-23                 (1)  all acts and obligations authorized or undertaken

1-24     before the effective date of this Act and all proceedings of the

 2-1     water supply corporation regarding those acts or obligations that

 2-2     were completed before the effective date of this Act; and

 2-3                 (2)  the exercise before the effective date of this Act

 2-4     of any power of a water supply corporation provided by Chapter 76,

 2-5     Acts of the 43rd Legislature, 1st Called Session, 1933 (Article

 2-6     1434a, Vernon's Texas Civil Statutes), regardless of the population

 2-7     of the county in which the water supply corporation or any of its

 2-8     assets are located or in which the water supply corporation

 2-9     exercised the power.

2-10           SECTION 3.  Section 2 of this Act does not apply to an act,

2-11     proceeding, corporation, obligation, or exercise of power  that on

2-12     the effective date of this Act is the subject of litigation pending

2-13     on that date.

2-14           SECTION 4.  The importance of this legislation and the

2-15     crowded condition of the calendars in both houses create an

2-16     emergency and an imperative public necessity that the

2-17     constitutional rule requiring bills to be read on three several

2-18     days in each house be suspended, and this rule is hereby suspended,

2-19     and that this Act take effect and be in force from and after its

2-20     passage, and it is so enacted.

2-21                          COMMITTEE AMENDMENT NO. 1

2-22           Amend H.B. 2851 as follows:

2-23           (1)  Strike Sections 2 and 3 of the bill.

2-24           (2)  Renumber existing Section 4 as Section 2.

2-25                                                         Lewis of Orange