SRC-ARR S.B. 533 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 533
By: Ratliff
Natural Resources
3/6/1999
As Filed


DIGEST 

Currently, Texas nonprofit water supply and sewer service corporations have
adopted bylaws relating to the annual meetings and elections. Most of the
corporations by-laws contain standard procedures for annual meetings and
elections that have served their corporations well, Chapter 67 of the water
code does not specifically address this issue. Absent legislative
directives regarding written procedures for annual meetings and elections,
a corporation might not adequately fulfill its responsibility to conduct
annual meetings and elections in a fair, impartial, and non-discriminatory
manner. S.B. 533 requires  the board of directors of a nonprofit water
supply or sewer corporation to adopt written procedures regarding
notification of annual meetings, establishment of a quorum, nomination and
election procedures, and the establishment and validation of ballots and
proxies.   
 
PURPOSE

As proposed, S.B. 533 requires  certain procedures for annual or special
meetings and elections for water supply and sewer services corporations. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 67.007, Water Code, as follows:

Sec. 67.007. New heading: ANNUAL OR SPECIAL MEETING. Requires the board of
directors of a nonprofit water supply or sewer service corporation (board)
to adopt written procedures for conducting an annual or special meeting of
the members or shareholders, which shall include certain procedures.
Requires the board to adopt an official proxy and ballot form to be used in
conducting the business of the corporation at any  annual or special
meeting. Provides that no other proxy or ballot form will be valid.
Provides that proxies and ballots from members or shareholders are
confidential and are exempted from disclosure by the corporation until
after the date of the relevant election.  

SECTION 2. Emergency clause.
                      Effective date: upon passage.