|
|
|
|
AN ACT
|
|
relating to annual and special meetings of and election procedures |
|
for members of boards of directors for water supply or sewer service |
|
corporations. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 67.0052, Water Code, is amended by |
|
amending Subsections (a) and (b) and adding Subsection (d) to read |
|
as follows: |
|
(a) To be listed on the ballot as a candidate for a |
|
director's position, a person must file an application with the |
|
corporation that includes: |
|
(1) the director's position sought, including any |
|
position number or other distinguishing number; |
|
(2) if the corporation has 1,500 or more members or |
|
shareholders, a petition[,] signed by [the lesser of] 20 members or |
|
shareholders [or five percent of the members or shareholders,] |
|
requesting that the person's name be placed on the ballot as a |
|
candidate for that position; |
|
(3) the person's written consent to serve, if elected; |
|
(4) biographical information about the person; and |
|
(5) a statement of the person's qualifications, |
|
including a statement that the person has the qualifications |
|
prescribed by Section 67.0051. |
|
(b) The application must be filed with the corporation not |
|
later than the 45th day before the date of the annual meeting. The |
|
corporation shall notify the members or shareholders of the |
|
application deadline not later than the 30th day before the |
|
deadline. |
|
(d) This section applies only to a corporation that provides |
|
retail water or sewer service. |
|
SECTION 2. Section 67.0053, Water Code, is amended by |
|
adding Subsection (c) to read as follows: |
|
(c) This section: |
|
(1) applies only to a corporation that provides retail |
|
water or sewer service; and |
|
(2) does not apply to an election in relation to a |
|
candidate for a director's position for which the board has adopted |
|
a resolution under Section 67.0055. |
|
SECTION 3. Section 67.0054, Water Code, is amended by |
|
amending Subsection (c) and adding Subsection (g) to read as |
|
follows: |
|
(c) For each director's position, the candidate who |
|
receives the highest number of votes or who is the subject of a |
|
resolution described by Section 67.0055 is elected. |
|
(g) This section applies only to a corporation that provides |
|
retail water or sewer service. |
|
SECTION 4. Subchapter A, Chapter 67, Water Code, is amended |
|
by adding Section 67.0055 to read as follows: |
|
Sec. 67.0055. ELECTION OF UNOPPOSED CANDIDATE. (a) This |
|
section applies only to an election for a director's position on a |
|
board of a corporation that provides retail water or sewer service |
|
in which a candidate who is to appear on the ballot for the position |
|
is unopposed. |
|
(b) The board by resolution may declare a candidate elected |
|
to a director's position if the board certifies in writing that the |
|
candidate is unopposed for the position. A copy of the resolution |
|
shall be posted at the corporation's main office. |
|
(c) If a declaration is made under Subsection (b), the |
|
election for that position is not held. |
|
(d) If the election for the unopposed candidate would have |
|
been held with an annual meeting of the members or shareholders of |
|
the corporation, the text of the declaration described by |
|
Subsection (b) shall be read into the record at the annual meeting. |
|
(e) The ballots used at a separate election that is held at |
|
the same time as an election for an unopposed candidate would have |
|
been held shall include after measures or contested races the |
|
position and name of a candidate declared elected under this |
|
section, under the heading "Unopposed Candidates Declared |
|
Elected." |
|
(f) A person may not, by intimidation or by means of |
|
coercion, influence or attempt to influence a person to withdraw as |
|
a candidate or not to file an application for a place on the ballot |
|
so that an election may be canceled. |
|
(g) The board may adopt necessary rules or bylaws to |
|
implement this section, including rules or bylaws to ensure the |
|
fairness, integrity, and openness of the process. |
|
SECTION 5. The heading to Section 67.007, Water Code, is |
|
amended to read as follows: |
|
Sec. 67.007. ANNUAL OR SPECIAL MEETING OF RETAIL |
|
CORPORATION. |
|
SECTION 6. Section 67.007, Water Code, is amended by adding |
|
Subsection (e) to read as follows: |
|
(e) This section applies only to a corporation that provides |
|
retail water or sewer service. |
|
SECTION 7. Subchapter A, Chapter 67, Water Code, is amended |
|
by adding Section 67.0075 to read as follows: |
|
Sec. 67.0075. ANNUAL OR SPECIAL MEETING OF OTHER |
|
CORPORATION. A corporation to which Section 67.007 does not apply |
|
shall comply with the annual meeting and director election |
|
provisions prescribed by Chapter 22, Business Organizations Code. |
|
SECTION 8. The change in law made by this Act applies only |
|
to an annual or special meeting or a director election held on or |
|
after the 75th day after the effective date of this Act. A meeting |
|
or an election held before the 75th day after the effective date of |
|
this Act is governed by the law in effect when the meeting or |
|
election was held, and that law is continued in effect for that |
|
purpose. |
|
SECTION 9. 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, 2013. |
|
|
|
|
|
|
|
|
______________________________ |
______________________________ |
|
President of the Senate |
Speaker of the House |
|
|
I hereby certify that S.B. No. 447 passed the Senate on |
|
March 13, 2013, by the following vote: Yeas 31, Nays 0; and that |
|
the Senate concurred in House amendment on May 7, 2013, by the |
|
following vote: Yeas 29, Nays 0. |
|
|
|
|
______________________________ |
|
Secretary of the Senate |
|
|
I hereby certify that S.B. No. 447 passed the House, with |
|
amendment, on April 25, 2013, by the following vote: Yeas 136, |
|
Nays 0, two present not voting. |
|
|
|
|
______________________________ |
|
Chief Clerk of the House |
|
|
|
|
|
Approved: |
|
|
|
______________________________ |
|
Date |
|
|
|
|
|
______________________________ |
|
Governor |