1-1     By:  Ratliff                                           S.B. No. 899

 1-2           (In the Senate - Filed March 3, 1997; March 6, 1997, read

 1-3     first time and referred to Committee on Intergovernmental

 1-4     Relations; April 1, 1997, reported favorably by the following vote:

 1-5     Yeas 11, Nays 0; April 1, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the organization and governance of water supply and

 1-9     sewer service corporations.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Section 5, Chapter 76, Acts of the 43rd

1-12     Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's

1-13     Texas Civil Statutes), is amended to read as follows:

1-14           Sec. 5.  After the issuance of a charter and annually

1-15     thereafter following the annual membership or stockholders meeting,

1-16     the board of directors shall elect a president, a vice president,

1-17     and a secretary-treasurer and may require of such officers bonds

1-18     for the faithful performance of their duties.  At the meeting, each

1-19     member or stockholder shall be allowed only one vote regardless of

1-20     the number of memberships or stock certificates held by the person.

1-21     The annual meeting of the members or stockholders of the

1-22     corporation shall be held at any time between January 1 and May 1

1-23     of each year, at such time as shall be specified by the by-laws or

1-24     the board of directors of the corporation.  The salaries of all the

1-25     officers of said corporation except that of the secretary-treasurer

1-26     and of the manager whose salary is hereinafter referred to, shall

1-27     not exceed Five Thousand Dollars ($5,000) per year.  The salary of

1-28     the secretary-treasurer shall be fixed by the board of directors at

1-29     a sum commensurate with the duties required of him.

1-30           SECTION 2.  The importance of this legislation and the

1-31     crowded condition of the calendars in both houses create an

1-32     emergency and an imperative public necessity that the

1-33     constitutional rule requiring bills to be read on three several

1-34     days in each house be suspended, and this rule is hereby suspended,

1-35     and that this Act take effect and be in force from and after its

1-36     passage, and it is so enacted.

1-37                                  * * * * *