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A BILL TO BE ENTITLED
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AN ACT
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relating to annual and special meetings of and election procedures |
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for members of boards of directors for water supply or sewer service |
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corporations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 67.0052, Water Code, is amended by |
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amending Subsection (a) and adding Subsection (d) to read as |
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follows: |
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(a) To be listed on the ballot as a candidate for a |
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director's position, a person must file an application with the |
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corporation that includes: |
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(1) the director's position sought, including any |
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position number or other distinguishing number; |
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(2) if the corporation has 1,500 or more members or |
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shareholders, a petition[,] signed by [the lesser of] 20 members or |
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shareholders [or five percent of the members or shareholders,] |
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requesting that the person's name be placed on the ballot as a |
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candidate for that position; |
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(3) the person's written consent to serve, if elected; |
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(4) biographical information about the person; and |
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(5) a statement of the person's qualifications, |
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including a statement that the person has the qualifications |
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prescribed by Section 67.0051. |
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(d) This section applies only to a corporation that provides |
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retail water or sewer service. |
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SECTION 2. Section 67.0053, Water Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) This section: |
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(1) applies only to a corporation that provides retail |
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water or sewer service; and |
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(2) does not apply to an election in relation to a |
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candidate for a director's position for which the board has adopted |
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a resolution under Section 67.0055. |
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SECTION 3. Section 67.0054, Water Code, is amended by |
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amending Subsection (c) and adding Subsection (g) to read as |
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follows: |
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(c) For each director's position, the candidate who |
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receives the highest number of votes or who is the subject of a |
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resolution described by Section 67.0055 is elected. |
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(g) This section applies only to a corporation that provides |
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retail water or sewer service. |
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SECTION 4. Subchapter A, Chapter 67, Water Code, is amended |
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by adding Section 67.0055 to read as follows: |
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Sec. 67.0055. ELECTION OF UNOPPOSED CANDIDATE. (a) This |
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section applies only to an election for a director's position on a |
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board of a corporation that provides retail water or sewer service |
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in which a candidate who is to appear on the ballot for the position |
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is unopposed. |
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(b) The board by resolution may declare a candidate elected |
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to a director's position if the board certifies in writing that the |
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candidate is unopposed for the position. A copy of the resolution |
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shall be posted at the corporation's main office. |
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(c) If a declaration is made under Subsection (b), the |
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election for that position is not held. |
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(d) If the election for the unopposed candidate would have |
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been held with an annual meeting of the members or shareholders of |
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the corporation, the text of the declaration described by |
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Subsection (b) shall be read into the record at the annual meeting. |
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(e) The ballots used at a separate election that is held at |
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the same time as an election for an unopposed candidate would have |
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been held shall include after measures or contested races the |
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position and name of a candidate declared elected under this |
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section, under the heading "Unopposed Candidates Declared |
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Elected." |
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(f) A person may not, by intimidation or by means of |
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coercion, influence or attempt to influence a person to withdraw as |
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a candidate or not to file an application for a place on the ballot |
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so that an election may be canceled. |
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(g) The board may adopt necessary rules or bylaws to |
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implement this section, including rules or bylaws to ensure the |
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fairness, integrity, and openness of the process. |
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SECTION 5. The heading to Section 67.007, Water Code, is |
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amended to read as follows: |
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Sec. 67.007. ANNUAL OR SPECIAL MEETING OF RETAIL |
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CORPORATION. |
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SECTION 6. Section 67.007, Water Code, is amended by adding |
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Subsection (e) to read as follows: |
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(e) This section applies only to a corporation that provides |
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retail water or sewer service. |
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SECTION 7. Subchapter A, Chapter 67, Water Code, is amended |
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by adding Section 67.0075 to read as follows: |
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Sec. 67.0075. ANNUAL OR SPECIAL MEETING OF OTHER |
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CORPORATION. A corporation to which Section 67.007 does not apply |
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shall comply with the annual meeting and director election |
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provisions prescribed by Chapter 22, Business Organizations Code. |
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SECTION 8. The change in law made by this Act applies only |
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to an annual or special meeting or a director election held on or |
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after the effective date of this Act. A meeting or an election held |
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before the effective date of this Act is governed by the law in |
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effect when the meeting or election was held, and that law is |
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continued in effect for that purpose. |
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SECTION 9. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |