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          AN ACT
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        relating to the provision of water and certain equipment by water  | 
      
      
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        supply or sewer service corporations for use in fire suppression  | 
      
      
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        and the liability of those corporations. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
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               SECTION 1.  Section 67.0105, Water Code, is amended to read  | 
      
      
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        as follows: | 
      
      
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               Sec. 67.0105.  [CONTRACT FOR] WATER FOR FIRE SUPPRESSION.   | 
      
      
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        (a)  A corporation may provide a water supply to a governmental  | 
      
      
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        entity or volunteer fire department for use in fire suppression. | 
      
      
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               (a-1)  A corporation may enter into a contract with a  | 
      
      
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        governmental entity [municipality] or a volunteer fire department  | 
      
      
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        to supply water [either] to [municipally owned] fire hydrants owned  | 
      
      
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        by the governmental entity or the [or to] corporation [fire 
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          hydrants] for use in fire suppression by the governmental entity's  | 
      
      
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        [municipality's] fire department or a volunteer fire department.   | 
      
      
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        The contract must be under terms that are mutually beneficial to the  | 
      
      
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        contracting parties. | 
      
      
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               (b)  The furnishing of a water supply and fire hydrant  | 
      
      
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        equipment by a governmental entity [municipality] or a volunteer  | 
      
      
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        fire department directly or through another entity by a lease,  | 
      
      
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        contract, or any other manner is an essential governmental function  | 
      
      
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        and not a proprietary function for all purposes, including the  | 
      
      
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        application of Chapter 101, Civil Practice and Remedies Code. | 
      
      
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               (c)  A corporation that provides [contracts with] a  | 
      
      
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        governmental entity [municipality] or volunteer fire department  | 
      
      
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        with [to provide] a water supply or fire hydrant equipment to carry  | 
      
      
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        out the governmental function described by Subsection (b) may be  | 
      
      
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        liable for damages only to the extent that the governmental entity  | 
      
      
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        [municipality] or volunteer fire department would be liable if the  | 
      
      
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        governmental entity [municipality] or volunteer fire department  | 
      
      
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        were performing the governmental function directly. | 
      
      
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               SECTION 2.  Section 341.0358, Health and Safety Code, is  | 
      
      
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        amended by adding Subsection (g) to read as follows: | 
      
      
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               (g)  This section also applies to a municipality with a  | 
      
      
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        population of more than 36,000 and less than 41,000 located in two  | 
      
      
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        counties, one of which is a county with a population of more than  | 
      
      
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        1.8 million. | 
      
      
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               SECTION 3.  The change in law made by this Act applies only  | 
      
      
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        to a cause of action that accrues on or after the effective date of  | 
      
      
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        this Act.  A cause of action that accrues before the effective date  | 
      
      
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        of this Act is governed by the law in effect immediately before that  | 
      
      
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        date, and that law is continued in effect for that purpose. | 
      
      
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               SECTION 4.  This Act takes effect September 1, 2011. | 
      
      
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        ______________________________ | 
        ______________________________ | 
      
      
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           President of the Senate | 
        Speaker of the House      | 
      
      
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               I certify that H.B. No. 1814 was passed by the House on April  | 
      
      
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        14, 2011, by the following vote:  Yeas 142, Nays 0, 1 present, not  | 
      
      
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        voting; and that the House concurred in Senate amendments to H.B.  | 
      
      
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        No. 1814 on May 21, 2011, by the following vote:  Yeas 143, Nays 0,  | 
      
      
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        2 present, not voting. | 
      
      
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        ______________________________ | 
      
      
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        Chief Clerk of the House    | 
      
      
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               I certify that H.B. No. 1814 was passed by the Senate, with  | 
      
      
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        amendments, on May 19, 2011, by the following vote:  Yeas 31, Nays  | 
      
      
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        0. | 
      
      
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        ______________________________ | 
      
      
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        Secretary of the Senate    | 
      
      
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        APPROVED: __________________ | 
      
      
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                        Date        | 
      
      
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                 __________________ | 
      
      
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                      Governor        |