BILL ANALYSIS



S.B. 1462
By: Armbrister (McCoulskey)
May 18, 1995
Committee Report (Unamended)


BACKGROUND

Currently, unincorporated areas in Texas have limited access to an
adequate water supply and sanitary sewer facilities.  Current law
does not allow counties to incur debt to construct water and sewer
facilities.

PURPOSE

As proposed, S.B. 1462 authorizes a county commissioners court to
own, operate, and maintain water and sewer systems for
unincorporated areas inside and outside the county and grants the
county the power of eminent domain.

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. Amends Chapter 412B, Local Government Code, by adding
Section 412.015, as follows:

     Sec. 412.015.  COUNTY WATER AND SEWER SYSTEM.  (a)  Authorizes
     a county to acquire, own, or operate a water or sewer utility
     system to serve an unincorporated area of the county in the
     same manner, and under the same regulations, as a municipality
     under Chapter 402.
     
     (b)  Provides that a county may issue bonds payable solely
     from the revenue generated by the water or sewer utility
     system and such revenue bonds and notes of the county shall
     not be deemed an indebtedness, liability, general, special, or
     moral obligation or pledge or loan of the faith or credit or
     taxing power of the state, the county, or any other political
     subdivision or governmental unit, nor shall such revenue bonds
     and notes constitute an indebtedness within the meaning of any
     constitutional or statutory debt limitation or restriction or
     an agreement, obligation, or indebtedness of the county or the
     state within the meaning of any constitutional or statutory
     provision.  Provides that nothing in this subsection shall be
     construed to mean that a county is authorized to issue general
     obligation bonds payable from ad valorem taxes for the purpose
     of acquiring, owning, or operating a water or sewer utility
     system to serve an unincorporated area of the county, a county
     being specifically prohibited from issuing general obligation
     bonds payable from ad valorem taxes for such purposes.
     
     (c)  Authorizes a county to acquire any interest in property
     necessary to operate a system authorized by this section
     through any means, including eminent domain. A county shall
     not exercise the power of eminent domain inside the corporate
     limits of a municipality.
     
     (d)  Prohibits 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: September 1, 1995.

SECTION 3. Emergency clause.

SUMMARY OF COMMITTEE ACTION

SB 1462 was considered by the County Affairs Committee in a formal
meeting on 5/19/95. SB 1462 was reported favorably with the
recommendation that it do pass and be printed, by the record vote
of 7 ayes, 0 nays, 0 pnv, 2 absent.