1-1     By:  Lewis of Orange (Senate Sponsor - Brown)         H.B. No. 1069
 1-2           (In the Senate - Received from the House March 29, 1999;
 1-3     March 30, 1999, read first time and referred to Committee on
 1-4     Natural Resources; May 10, 1999, reported favorably by the
 1-5     following vote:  Yeas 6, Nays 0; May 10, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the eligibility of a water supply or sewer service
 1-9     corporation to be converted into a special utility district.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 65.001(10), Water Code, is amended to
1-12     read as follows:
1-13                 (10)  "Water supply or sewer service corporation" means
1-14     any member-owned, member-controlled, nonprofit [consumer-owned]
1-15     water supply or sewer service corporation created and operating
1-16     under Chapter 67 [76, Acts of the 43rd Legislature, 1st Called
1-17     Session, 1933 (Article 1434a, Vernon's Texas Civil Statutes)],
1-18     that:
1-19                       (A)  provides water supply services to
1-20     noncontiguous subdivisions in two or more counties, at least one of
1-21     which counties has a population greater than two million; or
1-22                       (B)  is [on or before January 1, 1985, was]
1-23     providing the services of a water supply or sewer service
1-24     corporation under a certificate of convenience and necessity issued
1-25     by the commission or a predecessor agency [Public Utility
1-26     Commission of Texas].
1-27           SECTION 2.  Sections 65.014, 65.015, and 65.022, Water Code,
1-28     are amended to read as follows:
1-29           Sec. 65.014.  CERTIFIED RESOLUTION SEEKING CREATION OF
1-30     DISTRICT.  (a)  If creation of a district is proposed by a water
1-31     supply or sewer service corporation, a certified copy of a
1-32     resolution requesting creation must be filed with the commission.
1-33           (b)  The resolution shall be signed by the president and
1-34     secretary of the board of directors of a water supply or sewer
1-35     service corporation and shall state that the water supply or sewer
1-36     service corporation, acting through its board of directors, has
1-37     found that it is necessary and desirable for the water supply or
1-38     sewer service corporation to be converted into a district.
1-39           Sec. 65.015.  CONTENTS OF RESOLUTION.  In addition to the
1-40     requirements stated in Section 65.014 [of this code], the
1-41     resolution shall:
1-42                 (1)  describe the boundaries of the proposed district
1-43     by metes and bounds or by lot and block number, if there is a
1-44     recorded map or plat and survey of the area, or by any other
1-45     commonly recognized means in a certificate attached to the
1-46     resolution executed by a registered professional engineer;
1-47                 (2)  state the general nature of the services presently
1-48     performed by the water supply or sewer service corporation, the
1-49     general nature of the  services proposed to be provided by the
1-50     district, and the necessity for the services provided by the
1-51     district;
1-52                 (3)  include a name of the district that is generally
1-53     descriptive of the location of the district followed by the words
1-54     special utility district, but may not be the same name as any other
1-55     district in the same county; and
1-56                 (4)  include the names of not less than five and not
1-57     more than 11 qualified persons to serve as the initial board of
1-58     directors of the district.
1-59           Sec. 65.022.  TEMPORARY DIRECTORS.  If the commission
1-60     authorizes the creation of the district, it shall appoint those
1-61     persons whose names are listed in the resolution filed with the
1-62     commission by the water supply or sewer service corporation to
1-63     serve as temporary directors until initial directors are elected as
1-64     provided by this subchapter.
 2-1           SECTION 3.  The importance of this legislation and the
 2-2     crowded condition of the calendars in both houses create an
 2-3     emergency and an imperative public necessity that the
 2-4     constitutional rule requiring bills to be read on three several
 2-5     days in each house be suspended, and this rule is hereby suspended,
 2-6     and that this Act take effect and be in force from and after its
 2-7     passage, and it is so enacted.
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