BILL ANALYSIS



C.S.H.B. 2970
By: McCoulskey
5-3-95
Committee Report (Substituted)


BACKGROUND

Currently in the state of Texas, unincorporated areas have limited
access to an adequate purified water supply and sanitary sewer
facilities.  The law as it stands now does not allow counties to
incur debt to construct water and sewer facilities.  This bill
seeks to remedy that situation.

PURPOSE

If enacted, this bill would allow counties to address a public
health crisis as determined by state and local health authorities. 
This would enable a county to provide water and sanitary sewer in
the unincorporated areas of the county and with the city's consent
if an area is in the ETJ of a city.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Adds Section 412.015, Subchapter B of the Local
Government Code, to read as        follows:

           Section 412.015 COUNTY WATER AND SEWER FACILITY.  (a)
Allows a       county to operate a water or sewer utility systems
to serve an unincorporated area         of the county in the same
manner, and under the same regulations, as a           municipality
under Chapter 402.   

           (b)      Allows the county to issue bonds payable solely
from the revenue generated         by the water or sewer utility
system and disallows a county to issue bonds           payable from
ad valorem taxes.
           
           (c) Grants the county the use of eminent domain in
order to provide service.

           (d) Disallows a county from providing water or
sewer service to an area in the         extraterritorial
jurisdiction of a municipality or an area to which a holder of a           certificate of public convenience and necessity must
provide service under         Section 13.250, Water Code, without
the consent of the municipality or           the holder of the
certificate.

SECTION 2. Effective date.

SECTION 3. Emergency clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

The committee substitute puts the original bill in legislative
council draft form. In subsection (a), the committee substitute
specifies that the county may operate the system in the same manner
as a municipality under Chapter 402. The committee substitute adds
clarifying language in subsection (d) regarding where the county
may not provide service. The committee substitute deletes
subsection (e) found in the original bill.


SUMMARY OF COMMITTEE ACTION

HB 2970 was considered by the County Affairs Committee in a public
hearing on 4/26/95. Representative McCoulsky opened. The committee
considered a complete committee substitute. The following person
testified for HB 2970: Grady Prestage, representing himself. The
following person testified neutrally on HB 2970: Tom Brown,
representing the Texas Water Development Board. Representative
McCoulsky closed. HB 2970 was left pending. HB 2970 was considered
in a public hearing on 5/3/95. The committee considered a complete
committee substitute. The committee substitute was adopted without
objection. HB 2970 was reported favorably, as substituted, with the
recommendation that it do pass and be printed, by the record vote
of 6 ayes, 0 nays, 0 pnv, 3 absent.