By:  Armbrister                                        S.B. No. 821
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the authority of a county to operate a water or sewer
 1-2     utility system; granting the power of eminent domain and the
 1-3     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, or operate a water or sewer utility system to
 1-9     serve an unincorporated area of the county in the same manner and
1-10     under the same regulations as a municipality under Chapter 402.
1-11     The county must comply with all provisions of Chapter 13, Water
1-12     Code, that apply to a municipality.
1-13           (b)  To finance the water or sewer utility system, a county
1-14     may issue bonds payable solely from the revenue generated by the
1-15     water or sewer utility system.  A bond issued under this section is
1-16     not a debt of the county but is only a charge on the revenues
1-17     pledged and is not considered in determining the ability of the
1-18     county to issue bonds for any other purpose authorized by law.
1-19     This subsection does not authorize the issuance of general
1-20     obligation bonds payable from ad valorem taxes to finance a water
1-21     or sewer utility system.
1-22           (c)  A county may acquire any interest in property necessary
1-23     to operate a system authorized by this section through any means
1-24     available to the county, including eminent domain.  A county may
 2-1     not use eminent domain under this subsection to acquire property in
 2-2     a municipality.
 2-3           SECTION 2.  The importance of this legislation and the
 2-4     crowded condition of the calendars in both houses create an
 2-5     emergency and an imperative public necessity that the
 2-6     constitutional rule requiring bills to be read on three several
 2-7     days in each house be suspended, and this rule is hereby suspended,
 2-8     and that this Act take effect and be in force from and after its
 2-9     passage, and it is so enacted.
2-10                          COMMITTEE AMENDMENT NO. 1
2-11           Amend SB 821 as follows:
2-12           On page 1, at the end of Section 1(b), add:
2-13     "However, a county with a population of 2.8 million or more and any
2-14     adjoining county may issue general obligation bonds with the
2-15     approval of qualified voters."
2-16                                                                 Farabee
2-17                          COMMITTEE AMENDMENT NO. 2
2-18           Amend SB 821 as follows:
2-19           On page 2, at the end of Section 1(c), add:
2-20     "Provided, however, a county with a population of 2.8 million or
2-21     more and any adjoining county may, with the municipality's
2-22     approval, use the power of eminent domain under this subsection to
2-23     acquire property within a municipality."
2-24                                                                  Ramsay