1-1     By:  Armbrister                                        S.B. No. 821
 1-2           (In the Senate - Filed March 2, 1999; March 4, 1999, read
 1-3     first time and referred to Committee on Natural Resources;
 1-4     April 6, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 6, Nays 0; April 6, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 821               By:  Armbrister
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the authority of a county to operate a water or sewer
1-11     utility system; granting the power of eminent domain and the
1-12     authority to issue bonds.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14           SECTION 1.  Subchapter B, Chapter 412, Local Government Code,
1-15     is amended by adding Section 412.016 to read as follows:
1-16           Sec. 412.016.  COUNTY WATER AND SEWER SYSTEM.  (a)  A county
1-17     may acquire, own, or operate a water or sewer utility system to
1-18     serve an unincorporated area of the county in the same manner and
1-19     under the same regulations as a municipality under Chapter 402.
1-20     The county must comply with all provisions of Chapter 13, Water
1-21     Code, that apply to a municipality.
1-22           (b)  To finance the water or sewer utility system, a county
1-23     may issue bonds payable solely from the revenue generated by the
1-24     water or sewer utility system.  A bond issued under this section is
1-25     not a debt of the county but is only a charge on the revenues
1-26     pledged and is not considered in determining the ability of the
1-27     county to issue bonds for any other purpose authorized by law.
1-28     This subsection does not authorize the issuance of general
1-29     obligation bonds payable from ad valorem taxes to finance a water
1-30     or sewer utility system.
1-31           (c)  A county may acquire any interest in property necessary
1-32     to operate a system authorized by this section through any means
1-33     available to the county, including eminent domain.  A county may
1-34     not use eminent domain under this subsection to acquire property in
1-35     a municipality.
1-36           SECTION 2.  The importance of this legislation and the
1-37     crowded condition of the calendars in both houses create an
1-38     emergency and an imperative public necessity that the
1-39     constitutional rule requiring bills to be read on three several
1-40     days in each house be suspended, and this rule is hereby suspended,
1-41     and that this Act take effect and be in force from and after its
1-42     passage, and it is so enacted.
1-43                                  * * * * *