HBA-RBT H.B. 1674 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1674
By: Denny
Natural Resources
3/27/1999
Introduced



BACKGROUND AND PURPOSE 

Nonprofit water supply and sewer service corporations are required to hold
annual meetings between specified dates.  Procedures for holding the annual
meeting are not currently set out by statute. General meeting management
relies on the by-laws of the individual corporation.   

H.B. 1674 requires the board of directors of a water supply and sewer
service corporation to adopt written procedures for conducting meetings and
to adopt proxy and ballot forms to be used at an annual or special meeting. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 67.007, Water Code, to require the board of
directors of a water supply and sewer service corporation (board) to adopt
written procedures for conducting an annual or special meeting of the
members or shareholders.  Sets forth procedures the board must include.
Requires the board to adopt proxy and ballot forms to be used at an annual
or special meeting. Provides that a member or share holder must use a proxy
or ballot form adopted by the board. Provides that a proxy vote or ballot
cast by a member or shareholder is confidential and is exempt from
disclosure by the corporation until the election has been held. 

SECTION 2.  Emergency clause.
  Effective date: upon passage.