SRC-TNM S.B. 834 75(R)BILL ANALYSIS


Senate Research CenterS.B. 834
By: Armbrister
Intergovernmental Relations
3-30-97
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