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A BILL TO BE ENTITLED
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AN ACT
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relating to county authority to acquire a water or sewer utility |
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system and provide water and sewer services within a municipality. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 412.016, Local Government Code, is |
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amended to read as follows: |
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Sec. 412.016. COUNTY WATER AND SEWER SYSTEM. (a) A county |
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may acquire, own, finance, operate, or contract for the operation |
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of, a water or sewer utility system to serve an unincorporated area |
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of the county in the same manner and under the same regulations as a |
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municipality under Chapter 402. The county must comply with all |
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provisions of Chapter 13, Water Code, that apply to a municipality. |
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However, a county with a population of two [2.8] million or more and |
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any adjoining county may, with the municipality's approval, serve |
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an area within a municipality. |
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(b) To finance the water or sewer utility system, a county |
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may issue bonds payable solely from the revenue generated by the |
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water or sewer utility system. A bond issued under this section is |
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not a debt of the county but is only a charge on the revenues pledged |
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and is not considered in determining the ability of the county to |
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issue bonds for any other purpose authorized by law. This |
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subsection does not authorize the issuance of general obligation |
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bonds payable from ad valorem taxes to finance a water or sewer |
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utility system. However, a county with a population of two [2.8] |
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million or more and any adjoining county may issue general |
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obligation bonds with the approval of qualified voters. |
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(c) A county may acquire any interest in property necessary |
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to operate a system authorized by this section through any means |
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available to the county, including eminent domain. A county may not |
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use eminent domain under this subsection to acquire property in a |
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municipality. Provided, however, a county with a population of two |
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[2.8] million or more and any adjoining county may, with the |
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municipality's approval, use the power of eminent domain under this |
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subsection to acquire property within a municipality. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |