By Cuellar of Webb                                    H.B. No. 1001
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the regulation of subdivisions in economically
    1-3  distressed areas and the delivery of water and sewer services to
    1-4  economically distressed subdivisions; providing civil and criminal
    1-5  penalties.
    1-7        SECTION 1.  LEGISLATIVE FINDINGS.  The legislature finds
    1-8  that:
    1-9              (1)  economically distressed subdivisions commonly
   1-10  called "colonias" are found throughout the affected counties;
   1-11              (2)  in recent years, the number of people living in
   1-12  these economically distressed subdivisions in the affected counties
   1-13  has increased;
   1-14              (3)  due to the implementation of the North American
   1-15  Free Trade Agreement (NAFTA), the General Agreement on Tariffs and
   1-16  Trade (GATT), other economic incentives, and the increasingly
   1-17  robust economic development along the Texas-Mexico border, the
   1-18  population in economically distressed subdivisions in the affected
   1-19  counties will continue to increase;
   1-20              (4)  the residents of the economically distressed
   1-21  subdivisions in the affected counties constitute an unusually
   1-22  mobile population, moving to all parts of the state and beyond the
   1-23  state to seek employment;
    2-1              (5)  these conditions allow unscrupulous individuals,
    2-2  through the use of executory contracts, to take advantage of the
    2-3  residents of economically distressed subdivisions by charging
    2-4  usurious rates of interest as well as allowing unbridled discretion
    2-5  to evict;
    2-6              (6)  the vast majority of housing units in these
    2-7  economically distressed subdivisions lack an adequate potable water
    2-8  supply and concomitant wastewater or sewer services;
    2-9              (7)  the lack of an adequate potable water supply and
   2-10  concomitant wastewater or sewer services creates a serious and
   2-11  unacceptable health hazard from third world illnesses for the
   2-12  residents of the economically distressed subdivisions in the
   2-13  affected counties;
   2-14              (8)  many of the housing units in these economically
   2-15  distressed subdivisions are located in isolated rural segments in
   2-16  the affected counties where the land is inexpensive, located in
   2-17  floodplains, and subject to flooding after rains, leading to the
   2-18  overflow of pit privies and thus to the spreading of bacteria onto
   2-19  the land and into the water table;
   2-20              (9)  the location, proliferation, and conditions in
   2-21  these economically distressed subdivisions pose a clear and
   2-22  substantial threat to the environment of the border region, as well
   2-23  as to all Texas;
   2-24              (10)  the lack of an adequate potable water supply and
   2-25  concomitant wastewater or sewer services, coupled with the location
    3-1  of these subdivisions, erodes the economic stability of the
    3-2  affected counties, which are dependent upon a healthy public and a
    3-3  safe environment;
    3-4              (11)  the lack of an adequate potable water supply and
    3-5  concomitant wastewater or sewer services erodes the economic
    3-6  stability of the affected counties, which is required for the
    3-7  mutual development of trade, transportation, and commerce,
    3-8  affecting not only the border region, but all regions of the state
    3-9  where the trade, transportation, and commerce reach;
   3-10              (12)  the health risk created along the border in the
   3-11  affected counties, the expected increase in population during the
   3-12  next decade, and the mobility of the residents of these
   3-13  economically distressed subdivisions, coupled with the fact that
   3-14  the trade, transportation, and commerce along the border is the
   3-15  most intense in the United States, create the very substantial risk
   3-16  of third world epidemics spreading to the residents of this state
   3-17  and beyond;
   3-18              (13)  unless adequate remedial steps are taken
   3-19  immediately to alleviate the health risks to all Texans that are
   3-20  caused by the lack of basic services in the affected counties, the
   3-21  costs of containing an epidemic will be astronomical; and
   3-22              (14)  the need to address this public health and safety
   3-23  hazard is a compelling crisis that must be addressed through this
   3-24  legislation.
   3-25        SECTION 2.  Sections 232.001 through 232.010, Local
    4-1  Government Code, are designated as Subchapter A of Chapter 232,
    4-2  Local Government Code, and Chapter 232 is amended by adding a
    4-3  heading to Subchapter A to read as follows:
    4-5        SECTION 3.  Section 232.0015, Local Government Code, is
    4-6  amended to read as follows:
    4-7        Sec. 232.0015.  EXCEPTIONS <EXCEPTION> TO PLAT REQUIREMENT <:
    4-8  COUNTY DETERMINATION>.  (a)  To determine whether specific
    4-9  divisions of land are required to be platted, a county may define
   4-10  and classify the divisions.  A county need not require platting for
   4-11  every division of land otherwise within the scope of this
   4-12  subchapter <chapter>.
   4-13        (b)  This subchapter does not apply to a subdivision of land
   4-14  to which Subchapter B applies.
   4-15        SECTION 4.  Chapter 232, Local Government Code, is amended by
   4-16  adding Subchapter B to read as follows:
   4-19        Sec. 232.021.  DEFINITIONS.  In this subchapter:
   4-20              (1)  "Affected county" means a county:
   4-21                    (A)  that has a per capita income that averaged
   4-22  25 percent below the state average for the most recent three
   4-23  consecutive years for which statistics are available and an
   4-24  unemployment rate that averaged 25 percent above the state average
   4-25  for the most recent three consecutive years for which statistics
    5-1  are available; and
    5-2                    (B)  any part of which is within 50 miles of an
    5-3  international border.
    5-4              (2)  "Board" means the Texas Water Development Board.
    5-5              (3)  "Common promotional plan" means any plan or scheme
    5-6  of operation undertaken by a single subdivider or a group of
    5-7  subdividers acting in concert, either personally or through an
    5-8  agent, to offer for sale or lease lots when the land is:
    5-9                    (A)  contiguous or part of the same area of land;
   5-10  or
   5-11                    (B)  known, designated, or advertised as a common
   5-12  unit or by a common name.
   5-13              (4)  "Executive administrator" means the executive
   5-14  administrator of the Texas Water Development Board.
   5-15              (5)  "Floodplain" means any area in the 100-year
   5-16  floodplain that is susceptible to being inundated by water from any
   5-17  source and that is identified by the Federal Emergency Management
   5-18  Agency under the National Flood Insurance Act of 1968 (42 U.S.C.
   5-19  Sections 4001 through 4127).
   5-20              (6)  "Lease" includes an offer to lease.
   5-21              (7)  "Lot" means a parcel into which land that is
   5-22  intended for residential use is divided into one acre or less.
   5-23              (8)  "Minimum state standards" means the minimum
   5-24  standards set out for:
   5-25                    (A)  adequate drinking water by or under Section
    6-1  16.343(b)(1), Water Code;
    6-2                    (B)  adequate sewer facilities by or under
    6-3  Section 16.343(c)(1), Water Code; or
    6-4                    (C)  the treatment of solid waste by or under
    6-5  Chapters 361 and 364, Health and Safety Code.
    6-6              (9)  "Plat" means a map, chart, survey, plan, or replat
    6-7  containing a description of the subdivided land with ties to
    6-8  permanent landmarks or monuments.
    6-9              (10)  "Sell" includes an offer to sell.
   6-10              (11)  "Subdivide" means to divide the surface area of
   6-11  land into lots of one acre or less intended primarily for
   6-12  residential use.
   6-13              (12)  "Subdivider" means an individual, firm,
   6-14  corporation, or other legal entity, that owns any interest in land
   6-15  and that directly or indirectly  subdivides land into lots of one
   6-16  acre or less as part of a common promotional plan in the ordinary
   6-17  course of business.
   6-18              (13)  "Subdivision" means an area of land that has been
   6-19  subdivided into lots of one acre or less for sale or lease.
   6-20              (14)  "Utility" includes:
   6-21                    (A)  an electric utility, as defined by Section
   6-22  3(c)(1), Public Utility Regulatory Act (Article 1446c, Vernon's
   6-23  Texas Civil Statutes);
   6-24                    (B)  a gas utility, as defined by Section 1.03,
   6-25  Gas Utility Regulatory Act (Article 1446e, Vernon's Texas Civil
    7-1  Statutes); and
    7-2                    (C)  a water and sewer utility, as defined by
    7-3  Section 13.002, Water Code.
    7-4        Sec. 232.022.  APPLICABILITY.  (a)  This subchapter applies
    7-5  only to land in the jurisdiction of an affected county that is
    7-6  subdivided into four or more lots that are intended primarily for
    7-7  residential use.  A lot is presumed to be intended for residential
    7-8  use if the lot is one acre or less.  This subchapter does not apply
    7-9  if the subdivision is incident to the conveyance of the land as a
   7-10  gift.
   7-11        (b)  For purposes of this section, land is considered to be
   7-12  in the jurisdiction of a county if the land is located in the
   7-13  county, outside the corporate limits of municipalities, and outside
   7-14  the extraterritorial jurisdiction of municipalities, as determined
   7-15  under Chapter 42.
   7-16        Sec. 232.023.  PLAT REQUIRED.  (a)  A subdivider of land in
   7-17  an affected county must have a plat of the subdivision prepared.  A
   7-18  subdivision of a tract under this subsection includes a subdivision
   7-19  of real property by any method of conveyance, including a contract
   7-20  for deed, oral contract, contract of sale, or other type of
   7-21  executory contract, regardless of whether the subdivision is made
   7-22  by using a metes and bounds description.
   7-23        (b)  A plat required under this section must:
   7-24              (1)  be certified by an engineer registered to practice
   7-25  in this state;
    8-1              (2)  define the subdivision and all roads by metes and
    8-2  bounds;
    8-3              (3)  locate the subdivision with respect to an original
    8-4  corner of the original survey of which it is a part;
    8-5              (4)  describe each lot, number each lot in progression,
    8-6  and give the dimensions of each lot;
    8-7              (5)  state the dimensions of each lot, street, alley,
    8-8  square, park, or other part of the tract intended to be dedicated
    8-9  to public use or for the use of purchasers or owners of lots
   8-10  fronting on or adjacent to the street, alley, square, park, or
   8-11  other part;
   8-12              (6)  include or have attached a document containing a
   8-13  description in English and Spanish of the water and sewer
   8-14  facilities and roadways and easements dedicated for the provision
   8-15  of water and sewer facilities that will be constructed or installed
   8-16  to service the subdivision and a statement specifying the date by
   8-17  which the facilities will be fully operable;
   8-18              (7)  have attached a document prepared by an engineer
   8-19  registered to practice in this state certifying that the water and
   8-20  sewer service facilities proposed under Subdivision (6) are in
   8-21  compliance with the model rules adopted under Section 16.343, Water
   8-22  Code, and a certified estimate of the cost to install water and
   8-23  sewer service facilities;
   8-24              (8)  provide for drainage in the subdivision to:
   8-25                    (A)  avoid concentration of storm drainage water
    9-1  from each lot to adjacent lots;
    9-2                    (B) provide positive drainage away from all
    9-3  buildings; and
    9-4                    (C)  coordinate individual lot drainage with the
    9-5  general storm drainage pattern for the area;
    9-6              (9)  include a description of the drainage requirements
    9-7  as provided in Subdivision (8);
    9-8              (10)  identify the topography of the area;
    9-9              (11)  include a certification by an engineer registered
   9-10  to practice in this state describing any area of the subdivision
   9-11  that is in a floodplain or stating that no area is in a floodplain;
   9-12  and
   9-13              (12)  include certification that:
   9-14                    (A)  the water quality and connections to the
   9-15  lots meet, or will meet, the minimum state standards;
   9-16                    (B)  sewer connections to the lots or septic
   9-17  tanks meet, or will meet, the requirements of state standards;
   9-18                    (C)  electrical connections to the lot meet, or
   9-19  will meet, the minimum state standards; and
   9-20                    (D)  gas connections to the lot meet, or will
   9-21  meet, the minimum requirements under state law.
   9-22        (c)  The subdivider of the tract must acknowledge the plat by
   9-23  signing the plat and attached documents and attest to the veracity
   9-24  and completeness of the matters asserted in the attached documents
   9-25  and in the plat.
   10-1        (d)  The plat must be filed and recorded with the county
   10-2  clerk of the county in which the tract is located.  The plat is
   10-3  subject to the filing and recording provisions of Section 12.002,
   10-4  Property Code.
   10-5        (e)  The board shall develop the form of a plat required by
   10-6  this section in consultation with the attorney general.  The board
   10-7  shall provide each county clerk of an affected county with the
   10-8  form.
   10-9        Sec. 232.024.  APPROVAL BY COUNTY REQUIRED.  (a)  A plat
  10-10  filed under Section 232.023 is not valid unless the commissioners
  10-11  court of the county in which the land is located approves the plat
  10-12  by an order entered in the minutes of the court.  The commissioners
  10-13  court shall refuse to approve a plat if it does not meet the
  10-14  requirements prescribed by or under this subchapter or if any bond
  10-15  required under this subchapter is not filed with the county clerk.
  10-16        (b)  The commissioners court shall not approve a plat that is
  10-17  intended for residential housing and that lies in a floodplain
  10-18  unless:
  10-19              (1)  the plat evidences a restrictive covenant
  10-20  prohibiting construction of housing in any area of the subdivision
  10-21  that is in a floodplain; or
  10-22              (2)  the housing qualifies for insurance from the
  10-23  Federal Emergency Management Agency.
  10-24        Sec. 232.025.  SUBDIVISION REQUIREMENTS.  By an order adopted
  10-25  and entered in the minutes of the commissioners court, and after a
   11-1  notice is published in English and Spanish in a newspaper of
   11-2  general circulation in the county, the commissioners court shall
   11-3  for each subdivision:
   11-4              (1)  require a right-of-way on a street or road that
   11-5  functions as a main artery in a subdivision, of a width of not less
   11-6  than 50 feet or more than 100 feet;
   11-7              (2)  require a right-of-way on any other street or road
   11-8  in a subdivision of not less than 40 feet or more than 70 feet;
   11-9              (3)  require that the shoulder-to-shoulder width on
  11-10  collectors or main arteries within the right-of-way be not less
  11-11  than 32 feet or more than 56 feet, and that the
  11-12  shoulder-to-shoulder width on any other street or road be not less
  11-13  than 25 feet or more than 35 feet;
  11-14              (4)  adopt, based on the amount and kind of travel over
  11-15  each street or road in a subdivision, reasonable specifications
  11-16  relating to the construction of each street or road;
  11-17              (5)  adopt reasonable specifications to provide
  11-18  adequate drainage for each street or road in a subdivision in
  11-19  accordance with standard engineering practices;
  11-20              (6)  require that each purchase contract made between a
  11-21  subdivider and a purchaser of land in the subdivision contain a
  11-22  statement describing how and when water, sewer, electricity, and
  11-23  gas services will be made available to the subdivision; and
  11-24              (7)  require that the subdivider of the tract execute a
  11-25  bond in the manner provided by Section 232.027.
   12-1        Sec. 232.026.  WATER AND SEWER SERVICE EXTENSION.  (a)  The
   12-2  commissioners court may extend, beyond the date specified on the
   12-3  plat or on the document attached to the plat, the date by which the
   12-4  water and sewer service facilities must be fully operable if the
   12-5  commissioners court finds the extension is reasonable and not
   12-6  contrary to the public interest.
   12-7        (b)  The commissioners court may not grant an extension under
   12-8  Subsection (a) if it would allow an occupied residence to be
   12-9  without water or sewer services.
  12-10        (c)  If the commissioners court provides an extension, the
  12-11  commissioners court shall notify the attorney general of the
  12-12  extension and the reason for the extension.  The attorney general
  12-13  shall notify all other state agencies having enforcement power over
  12-14  subdivisions in affected counties of the extension.
  12-15        Sec. 232.027.  BOND REQUIREMENTS.  Unless a person has
  12-16  completed the installation of all water and sewer service
  12-17  facilities required by this subchapter on the date that person
  12-18  applies for approval of a plat under Section 232.024, the
  12-19  commissioners court shall require the subdivider of the tract to
  12-20  execute a bond or, in the alternative, make a cash deposit in an
  12-21  amount the county judge determines will ensure compliance with this
  12-22  subchapter.  The subdivider must comply with the requirement before
  12-23  subdividing the tract.  The bond must:
  12-24              (1)  be payable to the county judge of the county;
  12-25              (2)  be in an amount the county judge determines is
   13-1  adequate to ensure the proper construction or installation of the
   13-2  water and sewer service facilities to service the subdivision but
   13-3  not to exceed the estimated cost of the construction or
   13-4  installation of the facilities;
   13-5              (3)  be executed with sureties as may be approved by
   13-6  the court;
   13-7              (4)  be executed by a company authorized to do business
   13-8  as a surety in this state if the commissioners court requires a
   13-9  surety bond executed by a corporate surety; and
  13-10              (5)  be conditioned that the water and sewer service
  13-11  facilities will be constructed or installed:
  13-12                    (A)  in compliance with the model rules adopted
  13-13  under Section 16.343, Water Code; and
  13-14                    (B)  within the time stated on the plat or on the
  13-15  document attached to the plat for the subdivision or within any
  13-16  extension of that time.
  13-18  REQUIREMENTS.  (a)  On the approval of a plat by the commissioners
  13-19  court, the commissioners court shall issue to the person applying
  13-20  for the approval a certificate stating that the plat has been
  13-21  reviewed and approved by the commissioners court.
  13-22        (b)  On the written request of a subdivider, an owner of a
  13-23  lot in a subdivision, or an entity that provides a utility service,
  13-24  the commissioners court shall make the following determinations
  13-25  regarding the land in which the entity or commissioners court is
   14-1  interested that is located within the jurisdiction of the county:
   14-2              (1)  whether a plat has been prepared and whether it
   14-3  has been reviewed and approved by the commissioners court;
   14-4              (2)  whether water and sewer service facilities have
   14-5  been constructed or installed to service the subdivision under
   14-6  Section 232.023; and
   14-7              (3)  whether electrical and gas facilities have been
   14-8  constructed or installed to service the subdivision under Section
   14-9  232.023.
  14-10        (c)  The request made under Subsection (b) must identify by
  14-11  metes and bounds the land that is the subject of the request.
  14-12        (d)  Whenever a request is made under Subsection (b), the
  14-13  commissioners court shall issue the requesting party a written
  14-14  certification of its determinations under that subsection.
  14-15        (e)  The commissioners court shall make its determinations
  14-16  within 20 days after the date it receives the request under
  14-17  Subsection (b) and shall issue the certificate, if appropriate,
  14-18  within 10 days after the date the determinations are made.
  14-19        (f)  The commissioners court may adopt rules it considers
  14-20  necessary to administer its duties under this section.
  14-21        Sec. 232.029.  CONNECTION OF UTILITIES.  (a)  Except as
  14-22  provided by Section 232.037(c), an entity may not serve or connect
  14-23  any subdivided land with water or sewer services unless the entity
  14-24  receives a certificate issued by the commissioners court under
  14-25  Section 232.028(a) or receives a determination from the
   15-1  commissioners court under Section 232.028(b)(1) that the plat has
   15-2  been reviewed and approved by the commissioners court.
   15-3        (b)  Except as provided by Section 232.037(c), an entity may
   15-4  not serve or connect any subdivided land with electricity, gas, or
   15-5  other utility services unless the entity receives a determination
   15-6  from the county commissioners court under Section 232.028(b)(2)
   15-7  that adequate water and sewer services have been installed to
   15-8  service the subdivision.
   15-9        Sec. 232.030.  SUBDIVISION REGULATION; COUNTY AUTHORITY.  (a)
  15-10  The commissioners court for each county shall adopt and enforce the
  15-11  model rules developed under Section 16.343, Water Code.
  15-12        (b)  Except as provided by Section 16.350(d), Water Code, or
  15-13  Section 232.042, the commissioners court may not grant a variance
  15-14  or adopt regulations that waive any requirements of this
  15-15  subchapter.
  15-16        (c)  The commissioners court shall adopt regulations setting
  15-17  forth requirements for:
  15-18              (1)  potable water sufficient in quality and quantity
  15-19  to meet minimum state standards;
  15-20              (2)  solid waste disposal meeting minimum state
  15-21  standards and rules adopted by the county under Chapter 364, Health
  15-22  and Safety Code;
  15-23              (3)  sufficient and adequate roads that satisfy the
  15-24  standards adopted by the county;
  15-25              (4)  sewer facilities meeting minimum state standards;
   16-1              (5)  electric service and gas service; and
   16-2              (6)  standards for flood management meeting the minimum
   16-3  standards set forth by the Federal Emergency Management Agency
   16-4  under the National Flood Insurance Act of 1968 (42 U.S.C.  Sections
   16-5  4001 through 4127).
   16-6        Sec. 232.031.  REQUIREMENTS PRIOR TO SALE OR LEASE.  (a)  A
   16-7  subdivider may not sell or lease land in a subdivision unless the
   16-8  subdivision plat is approved by the commissioners court in
   16-9  accordance with Section 232.024.
  16-10        (b)  A subdivider may not sell or lease land in a subdivision
  16-11  unless the subdivider has furnished the commissioners court and
  16-12  filed with the county clerk a copy of the sales contracts, leases,
  16-13  and any other document that will convey an interest in the
  16-14  subdivided land.
  16-15        (c)  A document filed under Subsection (b) is a public
  16-16  record.
  16-17        Sec. 232.032.  SERVICES PROVIDED BY SUBDIVIDER.  A subdivider
  16-18  having an approved plat for a subdivision shall furnish:
  16-19              (1)  water sufficient in quality and quantity to meet
  16-20  the minimum state standards required by Section 16.343, Water Code;
  16-21              (2)  sewage treatment facilities that meet minimum
  16-22  state standards to fulfill the solid waste requirements of the
  16-23  subdivision;
  16-24              (3)  roads satisfying minimum standards as adopted by
  16-25  the county;
   17-1              (4)  adequate drainage meeting standard engineering
   17-2  practices; and
   17-3              (5)  electric utility service and gas utility service.
   17-5  BEFORE SALE; OFFENSE.  (a)  Brochures, publications, and
   17-6  advertising of any form relating to subdivided land:
   17-7              (1)  may not contain any misrepresentation; and
   17-8              (2)  must accurately describe the availability of water
   17-9  and sewer service facilities and electric and gas utilities.
  17-10        (b)  The subdivider shall provide a copy in Spanish of all
  17-11  written documents relating to the sale of subdivided land under an
  17-12  executory contract, including the contract, disclosure notice, and
  17-13  annual statement required by this section and a notice of default
  17-14  required by Subchapter D, Chapter 5, Property Code, if:
  17-15              (1)  negotiations that precede the execution of the
  17-16  executory contract are conducted primarily in Spanish; or
  17-17              (2)  the purchaser requests the written documents to be
  17-18  provided in Spanish.
  17-19        (c)  Before an executory contract is signed by the purchaser,
  17-20  the subdivider shall provide the purchaser with a written notice,
  17-21  which must be attached to the executory contract, informing the
  17-22  purchaser of the condition of the property that must, at a minimum,
  17-23  be executed by the subdivider and purchaser, be acknowledged, and
  17-24  read substantially similar to the following:
  17-25                    SUBDIVIDER'S DISCLOSURE NOTICE
   18-1        CONCERNING THE PROPERTY AT (street address or legal
   18-2        description and city)
   18-6         ___ The property is in a recorded subdivision.
   18-7         ___ The property has water service that provides potable
   18-8              water.
   18-9         ___ The property has sewer service or a septic system.
  18-10         ___ The property has electric service.
  18-11         ___ The property is not in a flood-prone area.
  18-12         ___ The roads are paved.
  18-13         ___ No person other than the subdivider:
  18-14              (1)  owns the property;
  18-15              (2)  has a claim of ownership to the property; or
  18-16              (3)  has an interest in the property.
  18-17         ___ No person has a lien filed against the property.
  18-18         ___ There are no back taxes owed on the property.
  18-19         _______________________________________________________
  18-20         (Date)                        (Signature of Subdivider)
  18-21         _______________________________________________________
  18-22         (Date)                         (Signature of Purchaser)
  18-23        (d)  The subdivider shall provide the purchaser with an
  18-24  annual statement in January of each year for the term of the
  18-25  executory contract.  The statement must include the amount of
   19-1  annual interest to be charged under the contract during the next
   19-2  12-month period and, if the subdivider collects from and pays
   19-3  property taxes for the purchaser, the amount to be collected by the
   19-4  subdivider during the next 12-month period.
   19-5        (e)  A person commits an offense if the person knowingly
   19-6  authorizes or assists in the publication, advertising,
   19-7  distribution, or circulation of any statement or representation
   19-8  that the person knows is false concerning any subdivided land
   19-9  offered for sale or lease.  An offense under this section is a
  19-10  Class A misdemeanor.
  19-11        Sec. 232.034.  CONFLICT OF INTEREST; PENALTY.  (a)  In this
  19-12  section, "subdivided tract" means a tract of land, as a whole, that
  19-13  is subdivided into tracts or lots.  The term does not mean an
  19-14  individual lot in a subdivided tract of land.
  19-15        (b)  A person has a conflict of interest in a subdivided
  19-16  tract if the person:
  19-17              (1)  has an equitable or legal ownership interest in
  19-18  the tract;
  19-19              (2)  acts as a developer of the tract;
  19-20              (3)  owns voting stock or shares of a business entity
  19-21  that:
  19-22                    (A)  has an equitable or legal ownership interest
  19-23  in the tract; or
  19-24                    (B)  acts as a developer of the tract; or
  19-25              (4)  receives in a calendar year money or any thing of
   20-1  value from a business entity described by Subdivision (3).
   20-2        (c)  A person also is considered to have a conflict of
   20-3  interest in a subdivided tract if the person is related in the
   20-4  first degree by consanguinity or affinity, as determined under
   20-5  Chapter 573, Government Code, to a person who, under Subsection
   20-6  (b), has a conflict of interest in the tract.
   20-7        (d)  If a member of the commissioners court has a conflict of
   20-8  interest in a subdivided tract, the member shall file, before a
   20-9  vote or decision regarding the approval of a plat for the tract, an
  20-10  affidavit with the county clerk stating the nature and extent of
  20-11  the interest and shall abstain from further participation in the
  20-12  matter.  The affidavit must be filed with the county clerk.
  20-13        (e)  A member of the commissioners court of a county commits
  20-14  an offense if the member violates Subsection (d).  An offense under
  20-15  this subsection is a Class A misdemeanor.
  20-16        (f)  The finding by a court of a violation of this section
  20-17  does not render voidable an action of the commissioners court
  20-18  unless the measure would not have passed the commissioners court
  20-19  but for the vote of the member who violated this section.
  20-20        (g)  A conviction under Subsection (e) constitutes official
  20-21  misconduct by the member and is grounds for removal from office.
  20-22        Sec. 232.035.  CIVIL PENALTIES.  (a)  A subdivider or an
  20-23  agent of a subdivider may not cause, suffer, allow, or permit a lot
  20-24  to be sold in a subdivision if the subdivision has not been platted
  20-25  as required by this subchapter or if the lot is without water,
   21-1  sewer, gas, or electrical services.
   21-2        (b)  A subdivider or an agent of a subdivider may not cause,
   21-3  suffer, allow, or permit a subdivision or any part of a subdivision
   21-4  in an affected county to become a public health nuisance as defined
   21-5  by Section 341.011, Health and Safety Code.
   21-6        (c)  A subdivider who fails to provide, in the time and
   21-7  manner described in the plat, for the construction or installation
   21-8  of water or sewer service facilities described on the plat or on
   21-9  the document attached to the plat or who otherwise violates this
  21-10  subchapter or a rule or requirement adopted by the commissioners
  21-11  court under this subchapter is subject to a civil penalty of not
  21-12  less than $500 or more than $1,000 for each violation and for each
  21-13  day of a continuing violation but not to exceed $5,000 each day and
  21-14  shall also pay court costs, investigative costs, and attorney's
  21-15  fees for the governmental entity bringing the suit.
  21-16        (d)  A person who violates Subsection (a) or (b) of this
  21-17  section is subject to a civil penalty of not less than $10,000 or
  21-18  more than $15,000 for each lot conveyed or each subdivision that
  21-19  becomes a nuisance. The person must also pay court costs,
  21-20  investigative costs, and attorney's fees for the governmental
  21-21  entity bringing the suit.
  21-22        (e)  Venue for an action under this section is in a district
  21-23  court of Travis County, a district court in the county in which the
  21-24  defendant resides, or a district court in the county in which the
  21-25  violation or threat of violation occurs.
   22-1        Sec. 232.036.  CRIMINAL PENALTIES.  (a)  A subdivider commits
   22-2  an offense if the subdivider knowingly fails to file a plat
   22-3  required by this subchapter.  An offense under this subsection is a
   22-4  Class A misdemeanor.
   22-5        (b)  A subdivider who owns a subdivision commits an offense
   22-6  if the subdivider knowingly fails to timely provide for the
   22-7  construction or installation of a water, sewer, electrical, or gas
   22-8  service described on the plat or on a document attached to the plat
   22-9  as required by Section 232.023.  An offense under this subsection
  22-10  is a Class A misdemeanor.
  22-11        (c)  If it is shown at the trial of an offense under
  22-12  Subsection (a) that the defendant caused five or more residences in
  22-13  the subdivision to be inhabited, the offense is a state jail
  22-14  felony.
  22-15        (d)  A subdivider commits an offense if the subdivider allows
  22-16  the conveyance of a lot in the subdivision without the appropriate
  22-17  water, sewer, electric, and gas utilities as required by Section
  22-18  232.032.  An offense under this section is a Class A misdemeanor.
  22-19  Each lot conveyed constitutes a separate offense.
  22-20        (e)  Venue for prosecution for a violation under this section
  22-21  is in the county in which any element of the violation is alleged
  22-22  to have occurred or in Travis County.
  22-23        Sec. 232.037.  ENFORCEMENT.  (a)  The attorney general, or
  22-24  the district attorney, criminal district attorney, county attorney
  22-25  with felony responsibilities, or county attorney of an affected
   23-1  county, at the request of the attorney general, may take any action
   23-2  necessary in a court of competent jurisdiction on behalf of the
   23-3  state or on behalf of residents to:
   23-4              (1)  enjoin the violation or threatened violation of
   23-5  the model rules adopted under Section 16.343, Water Code;
   23-6              (2)  enjoin the violation or threatened violation of a
   23-7  requirement of this subchapter or a rule adopted by the
   23-8  commissioners court under this subchapter;
   23-9              (3)  assess and recover civil or criminal penalties,
  23-10  attorney's fees, litigation costs, and investigation costs; and
  23-11              (4)  require replatting under Section 232.041.
  23-12        (b)  The attorney general, at the request of the district or
  23-13  county attorney with jurisdiction, may conduct a criminal
  23-14  prosecution under Section 232.033(b) or 232.036.
  23-15        (c)  During the pendency of any enforcement action brought,
  23-16  any resident of the affected subdivision may file a motion against
  23-17  the provider of utilities to halt termination of pre-existing
  23-18  utility services. The services may not be terminated if the court
  23-19  makes an affirmative finding after hearing the motion that
  23-20  termination poses a threat to public health, safety, or welfare of
  23-21  the residents.
  23-23  SUE.  (a)  Sovereign immunity to suit is waived and abolished to
  23-24  the extent of liability created by this subchapter.
  23-25        (b)  Any person may commence a civil action on the person's
   24-1  own behalf against any other person, including a county
   24-2  commissioner, who is alleged to be in violation of this subchapter.
   24-3        (c)  A cause of action authorized by this section may not be
   24-4  brought:
   24-5              (1)  if the attorney general has brought a civil or
   24-6  criminal action against the subdivider of the land to require
   24-7  compliance with this subchapter; or
   24-8              (2)  until after the 90th day after the date the
   24-9  plaintiff provides notice of an alleged violation to:
  24-10                    (A)  the attorney general;
  24-11                    (B)  the commissioners court of the county in
  24-12  which the alleged violation occurred; and
  24-13                    (C)  the subdivider of the land in which the
  24-14  alleged violation occurred.
  24-15        (d)  The attorney general may intervene as a matter of right
  24-16  in any action authorized by this section.
  24-17        (e)  A court may award reasonable attorney's fees to the
  24-18  party prevailing in an action authorized by this section.
  24-19        Sec. 232.039.  SUIT BY PRIVATE PERSON IN ECONOMICALLY
  24-20  DISTRESSED AREA.  A person who is purchasing a residence through a
  24-21  contract for deed or similar conveyance in a subdivision that does
  24-22  not have water and sewer services as required by this subchapter
  24-23  and is located in an economically distressed area, as defined by
  24-24  Section 17.921, Water Code, in an affected county, from a
  24-25  subdivider, may bring suit in the district court in which the
   25-1  property is located to:
   25-2              (1)  declare the sale of the property void and require
   25-3  the subdivider to return the purchase price of the property; and
   25-4              (2)  recover from the subdivider:
   25-5                    (A)  the market value of any permanent
   25-6  improvements the person placed on the property;
   25-7                    (B)  actual expenses incurred as a direct result
   25-8  of the failure to provide adequate water and sewer facilities;
   25-9                    (C)  court costs; and
  25-10                    (D)  reasonable attorney's fees.
  25-11        Sec. 232.040.  CANCELLATION OF SUBDIVISION.  (a)  A
  25-12  subdivider of land in an affected county may apply to the
  25-13  commissioners court to cancel all or part of the subdivision in the
  25-14  manner provided by Section 232.008.
  25-15        (b)  A resident of a subdivision for which the subdivider has
  25-16  applied for cancellation under Subsection (a) has the same rights
  25-17  as a purchaser of land under Section 232.008.
  25-18        Sec. 232.041.  REPLATTING.  (a)  A subdivision plat must
  25-19  accurately reflect the subdivision as it develops.   Any change,
  25-20  either by the intentional act of the subdivider or by the forces of
  25-21  nature, including changes in the size or dimension of lots or the
  25-22  direction or condition of the roads, must be recorded in a new plat
  25-23  in accordance with Section 232.023.
  25-24        (b)  If a subdivision does not have water and sewer services
  25-25  and other utilities as required by this subchapter, the subdivision
   26-1  must be replatted in accordance with this subchapter.
   26-2        (c)  The subdivision of property that has never been platted
   26-3  must be platted in accordance with this subchapter.
   26-4        (d)  A plat that has not been fully developed must be
   26-5  replatted under this subchapter.  A plat is considered to be not
   26-6  fully developed if:
   26-7              (1)  there are one or more lots available for sale and
   26-8  the plat was recorded with the county clerk before 1989; or
   26-9              (2)  all of the lots have been sold, but a transfer of
  26-10  title to the lots has not taken place.
  26-11        (e)  A subdivision is not required to be replatted under this
  26-12  section if:
  26-13              (1)  a plat conforming to all applicable state and
  26-14  local standards effective at the time the plat was filed was
  26-15  approved by the commissioners court; and
  26-16              (2)  the subdivision has water and sewer services that
  26-17  comply with current minimum state standards.
  26-18        (f)  Existing utility services to a subdivision that must be
  26-19  platted or replatted under this section may not be terminated under
  26-20  Section 232.029.
  26-21        Sec. 232.042.  VARIANCES.  (a)  On request of a subdivider or
  26-22  resident purchaser, the commissioners court may grant a delay from
  26-23  compliance with Section 232.041 as provided by this section.
  26-24        (b)  The commissioners court may grant a delay of two years
  26-25  if the reason for the delay is to install utilities.  A person may
   27-1  apply for one renewal of a delay under this subsection.
   27-2        (c)  The commissioners court may grant a delay for a reason
   27-3  other than a reason described by Subsection (b) if it is shown that
   27-4  compliance would be impractical.  The commissioners court must
   27-5  issue written findings stating the reasons why compliance is
   27-6  impractical.
   27-7        (d)  A delay granted by the commissioners court is valid only
   27-8  if the commissioners court notifies the attorney general of the
   27-9  delay and the reasons for the delay not later than the 30th day
  27-10  after the date the commissioners court grants the delay.
  27-11        (e)  Until approved water and sewer services are made
  27-12  available to the subdivision, the subdivider of land for which a
  27-13  delay is granted under this section must provide at no cost to
  27-14  residents:
  27-15              (1)  five gallons of potable water a day for each
  27-16  resident; and
  27-17              (2)  portable sanitary wastewater disposal facilities.
  27-18        SECTION 5.  Subchapter B, Chapter 412, Local Government Code,
  27-19  is amended by adding Section 412.015 to read as follows:
  27-20        Sec. 412.015.  COUNTY WATER AND SEWER UTILITY.  An affected
  27-21  county, as defined by Section 16.341, Water Code, may operate a
  27-22  water or sewer utility in the same manner as a municipality under
  27-23  Chapter 402.
  27-24        SECTION 6.  Sections 43.056(b) and (d), Local Government
  27-25  Code, are amended to read as follows:
   28-1        (b)  The service plan must include a program under which the
   28-2  municipality will provide full municipal services in the annexed
   28-3  area no later than <4 1/2 years after> the end of the period
   28-4  provided for making capital improvements under <effective date of
   28-5  the annexation, in accordance with> Subsection (d).  However, under
   28-6  the program the municipality must provide the following services in
   28-7  the area within 60 days after the effective date of the annexation
   28-8  of the area:
   28-9              (1)  police protection;
  28-10              (2)  fire protection;
  28-11              (3)  solid waste collection;
  28-12              (4)  maintenance of water and wastewater facilities in
  28-13  the annexed area that are not within the service area of another
  28-14  water or wastewater utility;
  28-15              (5)  maintenance of roads and streets, including road
  28-16  and street lighting;
  28-17              (6)  maintenance of parks, playgrounds, and swimming
  28-18  pools; and
  28-19              (7)  maintenance of any other publicly owned facility,
  28-20  building, or service.
  28-21        (d)  The service plan must also include a program under which
  28-22  the municipality will initiate the acquisition or construction of
  28-23  capital improvements necessary for providing municipal services
  28-24  adequate to serve the area.  The construction shall begin within
  28-25  two years after the effective date of the annexation of the area
   29-1  and shall be substantially completed within 4-1/2 years after that
   29-2  date.  The construction shall be substantially completed within six
   29-3  years after the date of annexation if the annexed area is an
   29-4  economically distressed area under Section 17.921, Water Code.  The
   29-5  acquistion or construction of the facilities shall be accomplished
   29-6  by purchase, lease, or other contract or by the municipality
   29-7  succeeding to the powers, duties, assets, and obligations of a
   29-8  conservation and reclamation district as authorized or required by
   29-9  law.  The construction of the facilities shall be accomplished in a
  29-10  continuous process and shall be completed as soon as reasonably
  29-11  possible, consistent with generally accepted local engineering and
  29-12  architectural standards and practices.  However, the municipality
  29-13  does not violate this subsection if the construction process is
  29-14  interrupted for any reason by circumstances beyond the direct
  29-15  control of the municipality.  The requirement that construction of
  29-16  capital improvements must be substantially completed within 4-1/2
  29-17  or 6 years does not apply to a development project or proposed
  29-18  development project within an annexed area if the annexation of the
  29-19  area was initiated by petition or request of the owners of land in
  29-20  the annexed area and the municipality and the landowners have
  29-21  agreed in writing that the development project within that area,
  29-22  because of its size or projected manner of development by the
  29-23  developer, is not reasonably expected to be completed within that
  29-24  period.
  29-25        SECTION 7.  Section 13.002, Water Code, is amended by
   30-1  amending Subdivision (23) and adding Subdivision (26) to read as
   30-2  follows:
   30-3              (23)  "Water and sewer utility," "public utility," or
   30-4  "utility" means any person, corporation, cooperative corporation,
   30-5  affected county, or any combination of these persons or entities,
   30-6  other than a municipal corporation, water supply or sewer service
   30-7  corporation, or a political subdivision of the state, except an
   30-8  affected county, or their lessees, trustees, and receivers, owning
   30-9  or operating for compensation in this state equipment or facilities
  30-10  for the transmission, storage, distribution, sale, or provision of
  30-11  potable water to the public or for the resale of potable water to
  30-12  the public for any use or for the collection, transportation,
  30-13  treatment, or disposal of sewage or other operation of a sewage
  30-14  disposal service for the public, other than equipment or facilities
  30-15  owned and operated for either purpose by a municipality or other
  30-16  political subdivision of this state or a water supply or sewer
  30-17  service corporation, but does not include any person or corporation
  30-18  not otherwise a public utility that furnishes the services or
  30-19  commodity only to itself or its employees or tenants as an incident
  30-20  of that employee service or tenancy when that service or commodity
  30-21  is not resold to or used by others.
  30-22              (26)  "Affected county" has the meaning assigned by
  30-23  Section 232.021, Local Government Code.
  30-24        SECTION 8.  Section 13.043, Water Code, is amended by
  30-25  amending Subsections (b), (c), (f), and (g) and adding Subsection
   31-1  (k) to read as follows:
   31-2        (b)  Ratepayers of the following entities may appeal the
   31-3  decision of the governing body of the entity affecting their water,
   31-4  drainage, or sewer rates to the commission:
   31-5              (1)  a nonprofit water supply or sewer service
   31-6  corporation created and operating under Chapter 76, Acts of the
   31-7  43rd Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's
   31-8  Texas Civil Statutes);
   31-9              (2)  a utility under the jurisdiction of a municipality
  31-10  inside the corporate limits of the municipality;
  31-11              (3)  a municipally owned utility, if the ratepayers
  31-12  reside outside the corporate limits of the municipality; <and>
  31-13              (4)  a district or authority created under Article III,
  31-14  Section 52, or Article XVI, Section 59, of the Texas Constitution
  31-15  that provides water or sewer service to household users; and
  31-16              (5)  a utility owned by an affected county, if the
  31-17  ratepayer's rates are actually adversely affected.  For the
  31-18  purposes of this section ratepayers who reside outside the
  31-19  boundaries of the district or authority shall be considered a
  31-20  separate class from ratepayers who reside inside those boundaries.
  31-21        (c)  An appeal under Subsection (b) of this section must be
  31-22  initiated by filing a petition for review with the commission and
  31-23  the entity providing service within 90 days after the effective day
  31-24  of the rate change or, if appealing under Subdivision (b)(2) or (5)
  31-25  of this section, within 90 days after the date on which the
   32-1  governing body of the municipality or affected county makes a final
   32-2  decision. The petition must be signed by the lesser of 10,000 or 10
   32-3  percent of those ratepayers whose rates have been changed and who
   32-4  are eligible to appeal under Subsection (b) of this section.
   32-5        (f)  A retail public utility that receives water or sewer
   32-6  service from another retail public utility or political subdivision
   32-7  of the state, including an affected county, may appeal to the
   32-8  commission a decision of the provider of water or sewer service
   32-9  affecting the amount paid for water or sewer service.  An appeal
  32-10  under this subsection must be initiated within 90 days after the
  32-11  date of notice of the decision is received from the provider of
  32-12  water or sewer service by the filing of a petition by the retail
  32-13  public utility.
  32-14        (g)  An applicant for service from an affected county or a
  32-15  water supply or sewer service corporation may appeal to the
  32-16  commission a decision of the county or water supply or sewer
  32-17  service corporation affecting the amount to be paid to obtain
  32-18  service in addition to the regular membership or tap fees.  If the
  32-19  commission finds the amount charged to be unreasonable, it shall
  32-20  establish the fee to be paid for that applicant.  An appeal under
  32-21  this subsection must be initiated within 90 days after the date
  32-22  written notice is provided to the applicant or member of the
  32-23  decision of an affected county or water supply or sewer service
  32-24  corporation <corporation's decision> relating to the applicant's
  32-25  initial request for that service.
   33-1        (k)  Not later than the 30th day after the date of a final
   33-2  decision on a rate change, the commissioners court of an affected
   33-3  county shall provide  written notice to each ratepayer eligible to
   33-4  appeal.  The notice must include the effective date of the new
   33-5  rates, the new rates, and the location where additional information
   33-6  on rates may be obtained.
   33-7        SECTION 9.  The heading to Subchapter D, Chapter 13, Water
   33-8  Code, is amended to read as follows:
  33-10        SECTION 10.  Section 13.084, Water Code, is amended to read
  33-11  as follows:
  33-12        Sec. 13.084.  AUTHORITY OF GOVERNING BODY; COST
  33-13  REIMBURSEMENT.  The governing body of any municipality or the
  33-14  commissioners court of an affected county shall have the right to
  33-15  select and engage rate consultants, accountants, auditors,
  33-16  attorneys, engineers, or any combination of these experts to
  33-17  conduct investigations, present evidence, advise and represent the
  33-18  governing body, and assist with litigation on water and sewer
  33-19  utility ratemaking proceedings.  The water and sewer utility
  33-20  engaged in those proceedings shall be required to reimburse the
  33-21  governing body or the commissioners court for the reasonable costs
  33-22  of those services and shall be allowed to recover those expenses
  33-23  through its rates with interest during the period of recovery.
  33-24        SECTION 11.  Section 13.085, Water Code, is amended to read
  33-25  as follows:
   34-1        Sec. 13.085.  ASSISTANCE BY COMMISSION.  On request, the
   34-2  commission may advise and assist municipalities and affected
   34-3  counties in connection with questions and proceedings arising under
   34-4  this chapter.  This assistance may include aid to municipalities or
   34-5  an affected county in connection with matters pending before the
   34-6  commission, the courts, <or> the governing body of any
   34-7  municipality, or the commissioners court of an affected county,
   34-8  including making members of the staff available to them as
   34-9  witnesses and otherwise providing evidence.
  34-10        SECTION 12.  Section 13.139(a), Water Code, is amended to
  34-11  read as follows:
  34-12        (a)  Every retail public utility that possesses or is
  34-13  required to possess a certificate of public convenience and
  34-14  necessity and every district and affected county that furnishes
  34-15  retail water or sewer utility service, shall furnish the service,
  34-16  instrumentalities, and facilities as are safe, adequate, efficient,
  34-17  and reasonable.
  34-18        SECTION 13.  Section 13.141, Water Code, is amended to read
  34-19  as follows:
  34-20        Sec. 13.141.  BILLING FOR SERVICE TO STATE.  A utility,
  34-21  utility owned by an affected county, or municipally owned utility
  34-22  may not bill or otherwise require the state or a state agency or
  34-23  institution to pay for service before the service is rendered.
  34-24        SECTION 14.  Section 13.181, Water Code, is amended to read
  34-25  as follows:
   35-2  Subject to this chapter, the commission has all authority and power
   35-3  of the state to ensure compliance with the obligations of utilities
   35-4  under this chapter. For this purpose the regulatory authority may
   35-5  fix and regulate rates of utilities, including rules and
   35-6  regulations for determining the classification of customers and
   35-7  services and for determining the applicability of rates.  A rule or
   35-8  order of the regulatory authority may not conflict with the rulings
   35-9  of any federal regulatory body.  Except Section 13.192, this
  35-10  subchapter shall apply only to a utility and shall not be applied
  35-11  to municipalities, counties, districts, or water supply or sewer
  35-12  service corporations.  The commission may adopt rules which
  35-13  authorize a utility which is permitted under Section 13.242(c) to
  35-14  provide service without a certificate of public convenience and
  35-15  necessity to request or implement a rate increase and operate
  35-16  according to rules, regulations, and standards of service other
  35-17  than those otherwise required under this chapter provided that
  35-18  rates are just and reasonable for customers and the utility and
  35-19  that service is safe, adequate, efficient, and reasonable.
  35-20        SECTION 15.  Section 13.242(a), Water Code, is amended to
  35-21  read as follows:
  35-22        (a)  Unless otherwise specified, a utility, a utility
  35-23  operated by an affected county, or a water supply or sewer service
  35-24  corporation may not in any way render retail water or sewer utility
  35-25  service directly or indirectly to the public without first having
   36-1  obtained from the commission a certificate that the present or
   36-2  future public convenience and necessity will require that
   36-3  installation, operation, or extension, and except as otherwise
   36-4  provided by this subchapter, a retail public utility may not
   36-5  furnish, make available, render, or extend retail water or sewer
   36-6  utility service to any area to which retail water or sewer utility
   36-7  service is being lawfully furnished by another retail public
   36-8  utility without first having obtained a certificate of public
   36-9  convenience and necessity that includes the area in which the
  36-10  consuming facility is located.
  36-11        SECTION 16.  Section 15.407, Water Code, is amended by adding
  36-12  Subsection (g) to read as follows:
  36-13        (g)  If after making an application under this section a
  36-14  county no longer meets the criteria for an affected county, as
  36-15  defined by Section 16.341, the county remains eligible to receive
  36-16  funds under this section.
  36-17        SECTION 17.  Section 16.342(a), Water Code, is amended to
  36-18  read as follows:
  36-19        (a)  In consultation with the attorney general, the <The>
  36-20  board shall adopt rules that are necessary to carry out the program
  36-21  provided by Subchapter K, Chapter 17, of this code and rules:
  36-22              (1)  incorporating existing minimum state standards and
  36-23  rules for water supply and sewer services established by the Texas
  36-24  Department of Health and the Texas Natural Resource Conservation
  36-25  <Water> Commission; and
   37-1              (2)  requiring compliance with existing rules of any
   37-2  state agency relating to septic tanks and other waste disposal
   37-3  systems.
   37-4        SECTION 18.  Section 16.343(g), Water Code, is amended to
   37-5  read as follows:
   37-6        (g)  Before filing an application for funds for facility
   37-7  engineering under Section 15.407 of this code or financial
   37-8  assistance under Subchapter K, Chapter 17, of this code, a
   37-9  political subdivision must adopt the model rules pursuant to this
  37-10  section or, in the case of a district or nonprofit water supply
  37-11  corporation, must be located in a city or county that has adopted
  37-12  such rules.  An affected county may not receive funds under either
  37-13  Section 15.407 of this code or Subchapter K, Chapter 17, of this
  37-14  code unless the county adopts and enforces the model rules.
  37-15        SECTION 19.  Section 16.344, Water Code, is amended by adding
  37-16  Subsection (d) to read as follows:
  37-17        (d)  Once every three months, the board shall prepare and
  37-18  file with the governor, the lieutenant governor, the speaker of the
  37-19  house of representatives, the attorney general, and the state
  37-20  auditor, a detailed written report describing the activities of the
  37-21  board under this section.
  37-22        SECTION 20.  Section 16.349, Water Code, is amended by
  37-23  amending Subsection (b) and adding Subsection (c) to read as
  37-24  follows:
  37-25        (b)  Except as provided by Subsection (c), the <The> amount
   38-1  charged under Subsection (a) of this section may be equal to or
   38-2  less than the rates paid for water supply and sewer services by
   38-3  residents of the political subdivision <and without regard to
   38-4  whether the economically distressed area is located in the
   38-5  boundaries of the political subdivision>.
   38-6        (c)  A political subdivision holding a certificate of
   38-7  convenience and necessity described by Section 13.242, that extends
   38-8  service to an economically distressed area outside the boundaries
   38-9  of the political subdivision, may not charge the residents of the
  38-10  area rates that exceed:
  38-11              (1)  the cost of providing service to the area; or
  38-12              (2)  the rates charged other residents of the political
  38-13  subdivision plus 15 percent.
  38-14        SECTION 21.  Section 16.352, Water Code, is amended to read
  38-15  as follows:
  38-16        Sec. 16.352.  ENFORCEMENT OF RULES.  (a) A person who
  38-17  violates a rule adopted by a county or municipality pursuant to
  38-18  Section 16.343 of this code is subject to a civil penalty of not
  38-19  less than $1,000 <$50> nor more than $10,000 <$1,000> for each
  38-20  violation and for each day of a continuing violation but not in
  38-21  excess of $50,000 <$5,000> per day.
  38-22        (b)  A person commits an offense if the person knowingly or
  38-23  intentionally violates a rule adopted under this subchapter
  38-24  <pursuant to Section 16.343 of this code by a county or a
  38-25  municipality>.
   39-1        (c)  An offense under Subsection (b) of this section is a
   39-2  Class A <B> misdemeanor.
   39-3        (d)  Venue for prosecution of an offense under Subsection (b)
   39-4  is in a county in which any element of the offense is alleged to
   39-5  have occurred or in Travis County.
   39-6        SECTION 22.  Section 16.353, Water Code, is amended to read
   39-7  as follows:
   39-8        Sec. 16.353.  INJUNCTION.  In addition to other remedies, the
   39-9  attorney general or <,> the county or district attorney of the
  39-10  county in which the violation occurred is <, or other local
  39-11  officials are> authorized to apply to the district court for and
  39-12  the court in its discretion may grant the state or political
  39-13  subdivision, without bond or other undertaking, any injunction that
  39-14  the facts may warrant including temporary restraining orders,
  39-15  temporary injunctions after notice and hearing, and permanent
  39-16  injunctions enjoining a violation of the rules.
  39-17        SECTION 23.  Section 16.354, Water Code, is amended to read
  39-18  as follows:
  39-19        Sec. 16.354.  ENFORCEMENT BY ATTORNEY GENERAL.  In addition
  39-20  to enforcement by a political subdivision, the attorney general may
  39-21  bring suit to enforce a rule adopted under Section 16.350 of this
  39-22  code, to assess and recover the penalty provided by Section 16.352
  39-23  of this code, to obtain injunctive relief to prevent the violation
  39-24  or continued violation of a political subdivision's rules, or to
  39-25  enforce the rules, recover the criminal penalty, and obtain
   40-1  injunctive relief.
   40-2        SECTION 24.  Subchapter J, Chapter 16, Water Code, is amended
   40-3  by adding Section 16.356 to read as follows:
   40-4        Sec. 16.356.  VENUE.  A suit under this subchapter for
   40-5  injunctive relief or for the recovery of a civil penalty may be
   40-6  brought in a district court in:
   40-7              (1)  the county in which the defendant resides;
   40-8              (2)  the county in which the alleged violation or
   40-9  threat of violation occurs; or
  40-10              (3)  Travis County.
  40-11        SECTION 25.  Section 26.001, Water Code, is amended by adding
  40-12  Subdivision (26) to read as follows:
  40-13              (26)  "Affected county" has the meaning assigned by
  40-14  Section 232.021, Local Government Code.
  40-15        SECTION 26.  Section 26.123, Water Code, is amended by adding
  40-16  Subsection (j) to read as follows:
  40-17        (j)  If the attorney general determines that a subdivider, as
  40-18  defined by Section 232.021, Local Government Code, of land in an
  40-19  affected county has violated or is threatening to violate a
  40-20  provision of this chapter, or a rule adopted by the commission
  40-21  under this chapter, the executive director on the request of the
  40-22  attorney general shall conduct an investigation of the alleged
  40-23  violation.  The executive director shall consult with the attorney
  40-24  general during the investigation to determine appropriate remedial
  40-25  action.
   41-1        SECTION 27.  Section 26.124, Water Code, is amended by adding
   41-2  Subsection (c) to read as follows:
   41-3        (c)  If the attorney general determines that a violation of
   41-4  Section 26.121 or a rule adopted under that section has occurred or
   41-5  is about to occur in an affected county, the attorney general may
   41-6  institute a civil suit in district court for injunctive relief or
   41-7  civil penalties against the person who has or is about to commit a
   41-8  violation.
   41-9        SECTION 28.  The following sections of the Local Government
  41-10  Code are repealed: Sections 232.001(f), 232.0035, 232.0036,
  41-11  232.0046, 232.0047, and 232.0049.
  41-12        SECTION 29.  (a)  The changes in law made in Sections 4 and
  41-13  21 of this Act relating to criminal offenses apply only to an
  41-14  offense committed on or after the effective date of this Act.  For
  41-15  purposes of this subsection, an offense is committed before the
  41-16  effective date of this Act if any element of the offense occurs
  41-17  before that date.  An offense committed before the effective date
  41-18  of this Act is governed by the law in effect when the offense was
  41-19  committed, and the former law is continued in effect for this
  41-20  purpose.
  41-21        (b)  The changes in law made in Sections 4 and 21 of this Act
  41-22  relating to civil penalties apply only to a violation that occurs
  41-23  on or after the effective date of this Act.  For purposes of this
  41-24  subsection, a violation is committed before the effective date of
  41-25  this Act if any element of the violation occurs before that date.
   42-1  A violation committed before the effective date of this Act is
   42-2  governed by the law in effect when the violation occurred, and the
   42-3  former law is continued in effect for this purpose.
   42-4        SECTION 30.  This Act takes effect September 1, 1995.
   42-5        SECTION 31.  The importance of this legislation and the
   42-6  crowded condition of the calendars in both houses create an
   42-7  emergency and an imperative public necessity that the
   42-8  constitutional rule requiring bills to be read on three several
   42-9  days in each house be suspended, and this rule is hereby suspended.