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  S.B. No. 447
 
 
 
 
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