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  H.B. No. 1314
 
 
 
 
AN ACT
  relating to the regulation and financing of water and sewer utility
  systems in certain counties; providing a civil penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 412.016, Local Government Code, is
  amended to read as follows:
         Sec. 412.016.  COUNTY WATER AND SEWER SYSTEM.  (a)  A county
  may acquire, own, finance, operate, or contract for the operation
  of, 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. The county must comply with all
  provisions of Chapter 13, Water Code, that apply to a municipality.
  However, a county with a population of two [2.8] million or more and
  any adjoining county may, with the municipality's approval, serve
  an area within a municipality.
         (b)  To finance the water or sewer utility system, a county
  may issue bonds payable solely from the revenue generated by the
  water or sewer utility system. 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. This
  subsection does not authorize the issuance of general obligation
  bonds payable from ad valorem taxes to finance a water or sewer
  utility system. However, a county with a population of two [2.8]
  million or more and any adjoining county may issue general
  obligation bonds with the approval of qualified voters.
         (c)  A county may acquire any interest in property necessary
  to operate a system authorized by this section through any means
  available to the county, including eminent domain. A county may not
  use eminent domain under this subsection to acquire property in a
  municipality. Provided, however, a county with a population of two
  [2.8] million or more and any adjoining county may, with the
  municipality's approval, use the power of eminent domain under this
  subsection to acquire property within a municipality.
         SECTION 2.  Subchapter B, Chapter 412, Local Government
  Code, is amended by adding Section 412.017 to read as follows:
         Sec. 412.017.  REGULATION OF WATER AND SEWER UTILITY IN
  POPULOUS COUNTIES. (a)  In this section, "water or sewer utility
  system" means a water or sewer utility system that serves:
               (1)  an economically distressed area as defined by
  Section 15.001, Water Code; or
               (2)  an area listed on:
                     (A)  the state registry by the Texas Commission on
  Environmental Quality under Subchapter F, Chapter 361, Health and
  Safety Code; or
                     (B)  the National Priorities List by the federal
  Environmental Protection Agency under the federal Comprehensive
  Environmental Response, Compensation, and Liability Act of 1980, 42
  U.S.C. Sections 9601-9675, as amended by the Superfund Amendments
  and Reauthorization Act of 1986.
         (b)  A county with a population of 3.3 million or more may by
  order:
               (1)  prohibit a person from installing an on-site
  sewage disposal system, as defined by Section 366.002, Health and
  Safety Code, or installing a water well, if the lot or parcel of
  land on which the on-site sewage disposal system or water well is to
  be installed has access to service from a water or sewer system; and
               (2)  prohibit a person from installing another water or
  sewer utility system to serve a lot or parcel of land within the
  area if the lot or parcel of land has access to service from a water
  or sewer utility system.
         (c)  A county that adopts an order under Subsection (b) may
  adopt the order only if the area that has access to service from a
  water or sewer utility system:
               (1)  is not served by another legally operating water
  or sewer utility system at the time the order is adopted; and
               (2)  was developed before September 1, 1987.
         (d)  A person who violates an order adopted under this
  section is liable to the county for a civil penalty of not more than
  $1,000 for each violation. Each day a violation continues is a
  separate violation for purposes of assessing the civil penalty.
         (e)  A county may bring suit in a district court to restrain a
  violation or threatened violation of an order adopted under this
  section, recover a civil penalty, or both. The county is not
  required to give bond as a condition to issuing injunctive relief.
         (f)  Except as provided in Subsection (g), a county that is
  involved in selecting a water or sewer utility system and that
  adopts an order under Subsection (b) may adopt the order only if the
  county complies with Chapter 262 in selecting the water or sewer
  utility system.
         (g)  Section 262.024 does not apply to this section.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1314 was passed by the House on May 4,
  2007, by the following vote:  Yeas 144, Nays 0, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 1314 on May 25, 2007, by the following vote:  Yeas 138, Nays 0,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 1314 was passed by the Senate, with
  amendments, on May 22, 2007, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor