HBA- MPA S.B. 821 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 821
By: Armbrister
County Affairs
4/26/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, some residents of unincorporated areas have limited access to
adequate purified water supplies and sanitary sewer facilities. Under
current law, counties are not allowed to incur debt in order to construct
water and sewer facilities.  

S.B. 821 authorizes a county to acquire, own, or operate a water or sewer
utility system in order to serve an unincorporated area of the county. This
bill authorizes a county to issue bonds payable solely from the revenue
generated by the water or sewer utility system, in order to finance the
water or sewer utility system. This bill also does not authorize the
issuance of general obligation bonds payable from ad valorem taxes to
finance a water or sewer utility system. S.B. 821 authorizes a county to
acquire any interest in property necessary to operate a system through any
means available to the county, including eminent domain. In addition, this
bill prohibits a county from using eminent domain to acquire property in a
municipality.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter B, Chapter 412, 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 (Municipal Utilities),
Local Government Code. Subjects a county operating a system authorized by
this section to Chapter 13 (Water Rates and Services), Water Code.  

(b) Authorizes a county, in order to finance the water or sewer utility
system, to issue bonds payable solely from the revenue generated by the
water or sewer utility system. Provides that a bond issued under this
section is not a debt of the county but is only a charge on the revenues
pledged and is not considered in determining the ability of the county to
issue bonds for any other purpose authorized by law. Sets forth that this
subsection does not authorize the issuance of general obligation bonds
payable from ad valorem taxes to finance a water or sewer utility system.  

(c) Authorizes a county to acquire any interest in property necessary to
operate a system authorized by this section through any means available to
the county, including eminent domain. Prohibits a county from using eminent
domain under this subsection to acquire property in a municipality.  

SECTION 2.Emergency clause.
  Effective date: upon passage.