SRC-ARR S.B. 821 76(R)BILL ANALYSIS


Senate Research CenterS.B. 821
By: Armbrister
Natural Resources
8/5/1999
Enrolled


DIGEST 

Currently, Texas law provides that unincorporated areas have limited access
to adequate purified water supply and sanitary sewer facilities. S.B. 821
authorizes a county to operate a water or sewer utility system and grants
the power of eminent domain. 

PURPOSE

As enrolled, S.B. 821 authorizes a county to operate a water or sewer
utility system and grants the power of 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. Authorizes a county to
acquire, own, operate, or contract for the operation of, 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.
Requires the county to comply with all provisions of Chapter 13, Water
Code, that apply to a municipality. Authorizes a county with a population
of 2.8 million or more and any adjoining county to serve an area within a
municipality, with the municipality's approval. Authorizes a county to
issue bonds payable solely from the revenue generated by the water or sewer
utility system, to finance 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. Provides 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. Authorizes a county with a population of 2.8
million or more and any adjoining county to issue general obligation bonds
with the approval of qualified voters. 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. Provides that a county with a
population of 2.8 million or more and any adjoining county may, with the
municipality's approval, use the power of eminent domain under this
subsection to acquire property within a municipality.  

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