AN ACT
 1-1     relating to the authority of a county to operate, or contract for
 1-2     the operation of, a water or sewer utility system; granting the
 1-3     power of eminent domain and the authority to issue bonds.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 412, Local Government Code,
 1-6     is amended by adding Section 412.016 to read as follows:
 1-7           Sec. 412.016.  COUNTY WATER AND SEWER SYSTEM.  (a)  A county
 1-8     may acquire, own, operate, or contract for the operation of, a
 1-9     water or sewer utility system to serve an unincorporated area of
1-10     the county in the same manner and under the same regulations as a
1-11     municipality under Chapter 402.  The county must comply with all
1-12     provisions of Chapter 13, Water Code, that apply to a municipality.
1-13     However, a county with a population of 2.8 million or more and any
1-14     adjoining county may, with the municipality's approval, serve an
1-15     area within a municipality.
1-16           (b)  To finance the water or sewer utility system, a county
1-17     may issue bonds payable solely from the revenue generated by the
1-18     water or sewer utility system.  A bond issued under this section is
1-19     not a debt of the county but is only a charge on the revenues
1-20     pledged and is not considered in determining the ability of the
1-21     county to issue bonds for any other purpose authorized by law.
1-22     This subsection does not authorize the issuance of general
1-23     obligation bonds payable from ad valorem taxes to finance a water
1-24     or sewer utility system.  However, a county with a population of
 2-1     2.8 million or more and any adjoining county may issue general
 2-2     obligation bonds with the approval of qualified voters.
 2-3           (c)  A county may acquire any interest in property necessary
 2-4     to operate a system authorized by this section through any means
 2-5     available to the county, including eminent domain.  A county may
 2-6     not use eminent domain under this subsection to acquire property in
 2-7     a municipality.  Provided, however, a county with a population of
 2-8     2.8 million or more and any adjoining county may, with the
 2-9     municipality's approval, use the power of eminent domain under this
2-10     subsection to acquire property within a municipality.
2-11           SECTION 2.  The importance of this legislation and the
2-12     crowded condition of the calendars in both houses create an
2-13     emergency and an imperative public necessity that the
2-14     constitutional rule requiring bills to be read on three several
2-15     days in each house be suspended, and this rule is hereby suspended,
2-16     and that this Act take effect and be in force from and after its
2-17     passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 821 passed the Senate on
         April 15, 1999, by the following vote:  Yeas 30, Nays 0; and that
         the Senate concurred in House amendments on May 11, 1999, by the
         following vote:  Yeas 30, Nays 0.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 821 passed the House, with
         amendments, on May 5, 1999, by the following vote:  Yeas 128,
         Nays 18, two present not voting.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor