1-1 By: Armbrister S.B. No. 1462 1-2 (In the Senate - Filed March 13, 1995; March 21, 1995, read 1-3 first time and referred to Committee on Intergovernmental 1-4 Relations; May 3, 1995, reported adversely, with favorable 1-5 Committee Substitute by the following vote: Yeas 8, Nays 0; 1-6 May 3, 1995, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1462 By: Wentworth 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the authority of a county to operate a water or sewer 1-11 utility in unincorporated areas of a county, including the 1-12 authority to acquire property through eminent domain. 1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-14 SECTION 1. Subchapter B, Chapter 412, Local Government Code, 1-15 is amended by adding Section 412.015 to read as follows: 1-16 Sec. 412.015. COUNTY WATER AND SEWER SYSTEM. (a) Except as 1-17 provided by this section, a county may acquire, own, or operate a 1-18 water or sewer utility system to serve an unincorporated area of 1-19 the county in the same manner, and under the same regulations, as a 1-20 municipality under Chapter 402. 1-21 (b) A county may issue bonds payable solely from the revenue 1-22 generated by the water or sewer utility system and such revenue 1-23 bonds and notes of the county shall not be deemed an indebtedness, 1-24 a liability, a general, special, or moral obligation, or a pledge 1-25 or loan of the faith or credit or taxing power of the state, the 1-26 county, or any other political subdivision or governmental unit, 1-27 nor shall such revenue bonds and notes constitute an indebtedness 1-28 within the meaning of any constitutional or statutory debt 1-29 limitation or restriction or an agreement, obligation, or 1-30 indebtedness of the county or the state within the meaning of any 1-31 constitutional or statutory provision. Nothing in this subsection 1-32 shall be construed to mean that a county is authorized to issue 1-33 general obligation bonds payable from ad valorem taxes for the 1-34 purpose of acquiring, owning, or operating a water or sewer utility 1-35 system to serve an unincorporated area of the county, a county 1-36 being specifically prohibited from issuing general obligation bonds 1-37 payable from ad valorem taxes for such purposes. 1-38 (c) A county may acquire any interest in property necessary 1-39 to operate a system authorized by this section through any means, 1-40 including eminent domain. 1-41 (d) A county may not provide water or sewer service to an 1-42 area in the extraterritorial jurisdiction of a municipality or an 1-43 area to which a holder of a certificate of public convenience and 1-44 necessity must provide service under Section 13.250, Water Code, 1-45 without the consent of the municipality or the holder of the 1-46 certificate. 1-47 SECTION 2. This Act takes effect September 1, 1995. 1-48 SECTION 3. The importance of this legislation and the 1-49 crowded condition of the calendars in both houses create an 1-50 emergency and an imperative public necessity that the 1-51 constitutional rule requiring bills to be read on three several 1-52 days in each house be suspended, and this rule is hereby suspended. 1-53 * * * * *