By Lewis of Orange                                    H.B. No. 1069
         76R4179 SKT-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the eligibility of a water supply or sewer service
 1-3     corporation to be converted into a special utility district.
 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 or sewer service corporation" means
 1-8     any member-owned, member-controlled, nonprofit [consumer-owned]
 1-9     water supply or sewer service corporation created and operating
1-10     under Chapter 67 [76, Acts of the 43rd Legislature, 1st Called
1-11     Session, 1933 (Article 1434a, Vernon's Texas Civil Statutes)],
1-12     that:
1-13                       (A)  provides water supply services to
1-14     noncontiguous subdivisions in two or more counties, at least one of
1-15     which counties has a population greater than two million; or
1-16                       (B)  is [on or before January 1, 1985, was]
1-17     providing the services of a water supply or sewer service
1-18     corporation under a certificate of convenience and necessity issued
1-19     by the commission or a predecessor agency [Public Utility
1-20     Commission of Texas].
1-21           SECTION 2.  Sections 65.014, 65.015, and 65.022, Water Code,
1-22     are amended to read as follows:
1-23           Sec. 65.014.  CERTIFIED RESOLUTION SEEKING CREATION OF
1-24     DISTRICT.  (a)  If creation of a district is proposed by a water
 2-1     supply or sewer service corporation, a certified copy of a
 2-2     resolution requesting creation must be filed with the commission.
 2-3           (b)  The resolution shall be signed by the president and
 2-4     secretary of the board of directors of a water supply or sewer
 2-5     service corporation and shall state that the water supply or sewer
 2-6     service corporation, acting through its board of directors, has
 2-7     found that it is necessary and desirable for the water supply or
 2-8     sewer service corporation to be converted into a district.
 2-9           Sec. 65.015.  CONTENTS OF RESOLUTION.  In addition to the
2-10     requirements stated in Section 65.014 [of this code], the
2-11     resolution shall:
2-12                 (1)  describe the boundaries of the proposed district
2-13     by metes and bounds or by lot and block number, if there is a
2-14     recorded map or plat and survey of the area, or by any other
2-15     commonly recognized means in a certificate attached to the
2-16     resolution executed by a registered professional engineer;
2-17                 (2)  state the general nature of the services presently
2-18     performed by the water supply or sewer service corporation, the
2-19     general nature of the  services proposed to be provided by the
2-20     district, and the necessity for the services provided by the
2-21     district;
2-22                 (3)  include a name of the district that is generally
2-23     descriptive of the location of the district followed by the words
2-24     special utility district, but may not be the same name as any other
2-25     district in the same county; and
2-26                 (4)  include the names of not less than five and not
2-27     more than 11 qualified persons to serve as the initial board of
 3-1     directors of the district.
 3-2           Sec. 65.022.  TEMPORARY DIRECTORS.  If the commission
 3-3     authorizes the creation of the district, it shall appoint those
 3-4     persons whose names are listed in the resolution filed with the
 3-5     commission by the water supply or sewer service corporation to
 3-6     serve as temporary directors until initial directors are elected as
 3-7     provided by this subchapter.
 3-8           SECTION 3.  The importance of this legislation and the
 3-9     crowded condition of the calendars in both houses create an
3-10     emergency and an imperative public necessity that the
3-11     constitutional rule requiring bills to be read on three several
3-12     days in each house be suspended, and this rule is hereby suspended,
3-13     and that this Act take effect and be in force from and after its
3-14     passage, and it is so enacted.