78R5843 SMH-D
By: Pitts H.B. No. 1309
A BILL TO BE ENTITLED
AN ACT
relating to the applicability of the Texas Non-Profit Corporation
Act to nonprofit water supply or sewer service corporations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section B, Article 2.01, Texas Non-Profit
Corporation Act (Article 1396-2.01, Vernon's Texas Civil
Statutes), is amended to read as follows:
B. This Act shall not apply to any corporation, nor may any
corporation be organized under this Act or obtain authority to
conduct its affairs in this State under this Act:
(1) If any one or more of its purposes for the conduct
of its affairs in this State is expressly forbidden by any law of
this State.
(2) If any one or more of its purposes for the conduct
of its affairs in this State is to engage in any activity which
cannot lawfully be engaged in without first obtaining a license
under the authority of the laws of this State to engage in such
activity and such license cannot lawfully be granted to a
corporation, except as provided by Subsection C.
(3) If any one or more of its purposes for the conduct
of its affairs in this State is to organize Group Hospital Service,
Rural Credit Unions, Agricultural and Livestock Pools, Mutual Loan
Corporations, Co-operative Credit Associations, Farmers'
Co-operative Societies, Co-operative Marketing Act Corporations,
Rural Electric Co-operative Corporations, Telephone Co-operative
Corporations, or fraternal organizations operating under the lodge
system and heretofore or hereafter incorporated under Articles 1399
through 1407, both inclusive, of Revised Civil Statutes of Texas,
1925.
(4) If any one or more of its purposes for the conduct
of its affairs in this State is to operate a bank under the banking
laws of this State or to operate an insurance company of any type or
character that operates under the insurance laws of this State.
[(5) If any one or more of its purposes for the conduct
of its affairs in this State is to engage in water or sewer service
and it has heretofore or is hereafter incorporated under the Acts of
1933, Forty-third Legislature, First Called Session, Chapter 76, as
amended, Acts of 1941, Forty-seventh Legislature, page 666, Chapter
407, being presently identified as Article 1434(a), Revised Civil
Statutes of Texas, 1925.]
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.