83R19884 JXC-F
By: Fraser S.B. No. 447
(King of Zavala)
Substitute the following for S.B. No. 447: No.
A BILL TO BE ENTITLED
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.