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


Senate Research Center   S.B. 821
76R6661 DRH-DBy: Armbrister
Natural Resources
3/29/1999
As Filed


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 proposed, 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, 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. Provides that a county
operating a system authorized by this section is subject to Chapter 13,
Water Code. 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. Prohibits this
subsection from authorizing the issuance of general obligation bonds
payable from ad valorem taxes to finance a water or sewer utility system.
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.