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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 76(R)

SENATE BILL 821

SENATE AUTHOR: Armbrister

EFFECTIVE: 5-24-99

HOUSE SPONSOR: Olivo

            Senate Bill 821 amends the Local Government Code to authorize a county to acquire, own, operate, or contract for the operation of a water or sewer utility system to serve an unincorporated area of the county. It authorizes a county to issue bonds payable solely from the revenue generated by the water or sewer utility system. Senate Bill 821 provides that the county is not authorized to issue general obligation bonds that are payable from ad valorem taxes to finance the water or sewer utility system. The act authorizes a county to acquire interest in property necessary to operate the system through any means, including eminent domain, but prohibits the use of eminent domain to acquire property in a municipality. Senate Bill 821 authorizes the use of eminent domain by a county with a population of 2.8 million or more and any adjoining county to acquire property within a municipality, with the municipality's approval, and also authorizes such counties to serve an area within a municipality, also with the municipality's approval.