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79R7292 DWS-D

By:  Puente                                                       H.B. No. 2045



A BILL TO BE ENTITLED

AN ACT

relating to incorporation of a water supply and sewer service 
corporation as a nonprofit corporation.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 2.010, Business Organizations Code, is 
amended to read as follows:
	Sec. 2.010.  PROHIBITED ACTIVITIES OF NONPROFIT 
CORPORATION.  A nonprofit corporation may not be organized or 
registered under this code to conduct its affairs in this state to[:
		[(1)]  engage in or operate as a group hospital 
service, rural credit union, agricultural and livestock pool, 
mutual loan corporation, cooperative association under Chapter 
251, cooperative credit association, farmers' cooperative society, 
Co-operative Marketing Act corporation, rural electric cooperative 
corporation, telephone cooperative corporation, or fraternal 
organization operating under the lodge system and incorporated 
under Subchapter C, Chapter 23[; or
		[(2)  engage in water supply or sewer service as an 
entity incorporated under Chapter 67, Water Code].
	SECTION 2.  This Act takes effect January 1, 2006.