1-1 By: Armbrister S.B. No. 834 1-2 (In the Senate - Filed February 27, 1997; March 4, 1997, read 1-3 first time and referred to Committee on Intergovernmental 1-4 Relations; April 1, 1997, reported favorably, as amended, by the 1-5 following vote: Yeas 11, Nays 0; April 1, 1997, sent to printer.) 1-6 COMMITTEE AMENDMENT NO. 1 By: Lucio 1-7 Amend S.B. No. 834 beginning on page , line , by striking 1-8 proposed Subsection (d) and inserting proposed Subsection (d) in 1-9 lieu thereof: 1-10 (d) A county must comply with all requirements of a public 1-11 utility under Chapter 13, Water Code. 1-12 A BILL TO BE ENTITLED 1-13 AN ACT 1-14 relating to the authority of a county to operate a water or sewer 1-15 utility in unincorporated areas of a county, including the 1-16 authority to issue bonds and to acquire property through eminent 1-17 domain. 1-18 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-19 SECTION 1. Subchapter B, Chapter 412, Local Government Code, 1-20 is amended by adding Section 412.016 to read as follows: 1-21 Sec. 412.016. COUNTY WATER AND SEWER SYSTEM. (a) Except as 1-22 provided by this section, a county may acquire, own, or operate a 1-23 water or sewer utility system to serve an unincorporated area of 1-24 the county in the same manner and under the same regulations as a 1-25 municipality under Chapter 402. 1-26 (b) A county may issue bonds payable solely from the revenue 1-27 generated by the water or sewer utility system, and such revenue 1-28 bonds and notes of the county shall not be deemed an indebtedness, 1-29 a liability, a general, special, or moral obligation, or a pledge 1-30 or loan of the faith or credit or taxing power of the state, the 1-31 county, or any other political subdivision or governmental unit, 1-32 nor shall such revenue bonds and notes constitute an indebtedness 1-33 within the meaning of any constitutional or statutory debt 1-34 limitation or restriction or an agreement, obligation, or 1-35 indebtedness of the county or the state within the meaning of any 1-36 constitutional or statutory provision. Nothing in this subsection 1-37 shall be construed to mean that a county is authorized to issue 1-38 general obligation bonds payable from ad valorem taxes for the 1-39 purpose of acquiring, owning, or operating a water or sewer utility 1-40 system to serve an unincorporated area of the county, a county 1-41 being specifically prohibited from issuing general obligation bonds 1-42 payable from ad valorem taxes for such purposes. 1-43 (c) A county may acquire any interest in property necessary 1-44 to operate a system authorized by this section through any means, 1-45 including eminent domain. A county shall not exercise the power of 1-46 eminent domain inside the corporate limits of a municipality. 1-47 (d) A county may not provide water or sewer service to an 1-48 area in the extraterritorial jurisdiction of a municipality or an 1-49 area to which a holder of a certificate of public convenience and 1-50 necessity must provide service under Section 13.250, Water Code, 1-51 without the consent of the municipality or the holder of the 1-52 certificate. 1-53 SECTION 2. This Act takes effect September 1, 1997. 1-54 SECTION 3. The importance of this legislation and the 1-55 crowded condition of the calendars in both houses create an 1-56 emergency and an imperative public necessity that the 1-57 constitutional rule requiring bills to be read on three several 1-58 days in each house be suspended, and this rule is hereby suspended. 1-59 * * * * *