BWH S.B. 834 75(R)BILL ANALYSIS


COUNTY AFFAIRS
S.B. 834
By: Armbrister (Lewis, Glenn)
4-10-97
Committee Report (Amended)


DIGEST 

Currently, in Texas, unincorporated areas have limited access to a
purified water supply and sanitary sewer facilities.  Current law does not
authorize a county to incur debt to construct water and sewer facilities.
S.B. 834 would authorize a county to operate a water or sewer utility in
unincorporated areas of a county. 

PURPOSE

As proposed, S.B. 834 outlines provisions regarding the authority of a
county to operate a water or sewer utility in unincorporated areas of a
county, including the authority to issue bonds and to acquire property
through eminent domain. 

RULEMAKING AUTHORITY

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
412.016, as follows: 

Sec. 412.016. 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, except as provided by
this section. 

(b) Authorizes a county to issue bonds payable solely from the revenue
generated by the water or sewer utility system, and such revenue bonds and
notes of the county are prohibited from being deemed an indebtedness, a
liability, a general, special, or moral obligation, or a pledge or loan of
the faith or credit or taxing power of the state, the county, or any other
political subdivision or governmental unit.  Prohibits such revenue bonds
and notes from constituting 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.  Prohibits a county from exercising the power of eminent
domain inside the corporate limits of a municipality. 

(d)  Requires a county to comply with all requirements of a public utility
in Chapter 13 of the Texas Water Code. 

SECTION 2. Effective date: September 1, 1997.
 
SECTION 3. Emergency clause.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Chapter 412B, Section 412.016(d), Local Government Code, to strike
proposed Subsection (d) and insert a new proposed Subsection (d),
regarding compliance with requirements of a public utility. 



EXPLANATION OF AMENDMENTS

Committee Amendment No. 1 amends Section 421.016(a) as follows:
 1) Brackets the bill to a county with a population of 225,000 or more,
which is located adjacent to a county with a population of 2.8 million or
more; and  
 2) Strikes the requirement for the county to follow the same guidelines
as municipalities under Chapter 402.