H.B. No. 1001
    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.
    1-6        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    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:
    4-4      SUBCHAPTER A.  SUBDIVISION PLATTING REQUIREMENTS IN GENERAL
    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:
   4-17          SUBCHAPTER B.  SUBDIVISION PLATTING REQUIREMENTS IN
   4-18                   ECONOMICALLY DISTRESSED COUNTIES
   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.
   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, disposal, and management of
    6-5  solid waste by or under Chapters 361 and 364, Health and Safety
    6-6  Code.
    6-7              (9)  "Plat" means a map, chart, survey, plan, or replat
    6-8  containing a description of the subdivided land with ties to
    6-9  permanent landmarks or monuments.
   6-10              (10)  "Sell" includes an offer to sell.
   6-11              (11)  "Sewer," "sewer services," or "sewer facilities"
   6-12  means treatment works as defined by Section 17.001, Water Code, or
   6-13  individual, on-site, or cluster treatment systems such as septic
   6-14  tanks and includes drainage facilities and other improvements for
   6-15  proper functioning of septic tank systems.
   6-16              (12)  "Subdivide" means to divide the surface area of
   6-17  land into lots intended primarily for residential use.
   6-18              (13)  "Subdivider" means an individual, firm,
   6-19  corporation, or other legal entity that owns any interest in land
   6-20  and that directly or indirectly  subdivides land into lots as part
   6-21  of a common promotional plan in the ordinary course of business.
   6-22              (14)  "Subdivision" means an area of land that has been
   6-23  subdivided into lots for sale or lease.
   6-24              (15)  "Utility" means a person, including a legal
   6-25  entity or political subdivision, that provides the services of:
    7-1                    (A)  an electric utility, as defined by Section
    7-2  3(c)(1), Public Utility Regulatory Act (Article 1446c, Vernon's
    7-3  Texas Civil Statutes);
    7-4                    (B)  a gas utility, as defined by Section 1.03,
    7-5  Gas Utility Regulatory Act (Article 1446e, Vernon's Texas Civil
    7-6  Statutes); and
    7-7                    (C)  a water and sewer utility, as defined by
    7-8  Section 13.002, Water Code.
    7-9        Sec. 232.022.  APPLICABILITY.  (a)  This subchapter applies
   7-10  only to land that is subdivided into four or more lots that are
   7-11  intended primarily for residential use in the jurisdiction of an
   7-12  affected county.  A lot is presumed to be intended for residential
   7-13  use if the lot is five acres or less.  This subchapter does not
   7-14  apply if the subdivision is incident to the conveyance of the land
   7-15  as a gift.
   7-16        (b)  For purposes of this section, land is considered to be
   7-17  in the jurisdiction of a county if the land is located in the
   7-18  county, outside the corporate limits of municipalities, and outside
   7-19  the extraterritorial jurisdiction of municipalities, as determined
   7-20  under Chapter 42.
   7-21        Sec. 232.023.  PLAT REQUIRED.  (a)  A subdivider of land in
   7-22  an affected county must have a plat of the subdivision prepared.  A
   7-23  subdivision of a tract under this subsection includes a subdivision
   7-24  of real property by any method of conveyance, including a contract
   7-25  for deed, oral contract, contract of sale, or other type of
    8-1  executory contract, regardless of whether the subdivision is made
    8-2  by using a metes and bounds description.
    8-3        (b)  A plat required under this section must:
    8-4              (1)  be certified by a surveyor or engineer registered
    8-5  to practice in this state;
    8-6              (2)  define the subdivision by metes and bounds;
    8-7              (3)  locate the subdivision with respect to an original
    8-8  corner of the original survey of which it is a part;
    8-9              (4)  describe each lot, number each lot in progression,
   8-10  and give the dimensions of each lot;
   8-11              (5)  state the dimensions of and accurately describe
   8-12  each lot, street, alley, square, park, or other part of the tract
   8-13  intended to be dedicated to public use or for the use of purchasers
   8-14  or owners of lots fronting on or adjacent to the street, alley,
   8-15  square, park, or other part;
   8-16              (6)  include or have attached a document containing a
   8-17  description in English and Spanish of the water and sewer
   8-18  facilities and roadways and easements dedicated for the provision
   8-19  of water and sewer facilities that will be constructed or installed
   8-20  to service the subdivision and a statement specifying the date by
   8-21  which the facilities will be fully operable;
   8-22              (7)  have attached a document prepared by an engineer
   8-23  registered to practice in this state certifying that the water and
   8-24  sewer service facilities proposed under Subdivision (6) are in
   8-25  compliance with the model rules adopted under Section 16.343, Water
    9-1  Code, and a certified estimate of the cost to install water and
    9-2  sewer service facilities;
    9-3              (8)  provide for drainage in the subdivision to:
    9-4                    (A)  avoid concentration of storm drainage water
    9-5  from each lot to adjacent lots;
    9-6                    (B) provide positive drainage away from all
    9-7  buildings; and
    9-8                    (C)  coordinate individual lot drainage with the
    9-9  general storm drainage pattern for the area;
   9-10              (9)  include a description of the drainage requirements
   9-11  as provided in Subdivision (8);
   9-12              (10)  identify the topography of the area;
   9-13              (11)  include a certification by a surveyor or engineer
   9-14  registered to practice in this state describing any area of the
   9-15  subdivision that is in a floodplain or stating that no area is in a
   9-16  floodplain; and
   9-17              (12)  include certification that the subdivider has
   9-18  complied with the requirements of Section 232.032 and that:
   9-19                    (A)  the water quality and connections to the
   9-20  lots meet, or will meet, the minimum state standards;
   9-21                    (B)  sewer connections to the lots or septic
   9-22  tanks meet, or will meet, the minimum requirements of state
   9-23  standards;
   9-24                    (C)  electrical connections provided to the lot
   9-25  meet, or will meet, the minimum state standards; and
   10-1                    (D)  gas connections, if available, provided to
   10-2  the lot meet, or will meet, the minimum state standards.
   10-3        (c)  A subdivider may meet the requirements of Subsection
   10-4  (b)(12)(B) through the use of a certificate issued by the
   10-5  appropriate county or state official having jurisdiction over the
   10-6  approval of septic systems stating that lots in the subdivision can
   10-7  be adequately and legally served by septic systems.
   10-8        (d)  The subdivider of the tract must acknowledge the plat by
   10-9  signing the plat and attached documents and attest to the veracity
  10-10  and completeness of the matters asserted in the attached documents
  10-11  and in the plat.
  10-12        (e)  The plat must be filed and recorded with the county
  10-13  clerk of the county in which the tract is located.  The plat is
  10-14  subject to the filing and recording provisions of Section 12.002,
  10-15  Property Code.
  10-16        Sec. 232.024.  APPROVAL BY COUNTY REQUIRED.  (a)  A plat
  10-17  filed under Section 232.023 is not valid unless the commissioners
  10-18  court of the county in which the land is located approves the plat
  10-19  by an order entered in the minutes of the court.  The commissioners
  10-20  court shall refuse to approve a plat if it does not meet the
  10-21  requirements prescribed by or under this subchapter or if any bond
  10-22  required under this subchapter is not filed with the county clerk.
  10-23        (b)  If any part of a plat applies to land intended for
  10-24  residential housing and any part of that land lies in a floodplain,
  10-25  the commissioners court shall not approve the plat unless the plat
   11-1  evidences a restrictive covenant as required by this subsection.
   11-2  The restrictive covenant shall prohibit the construction of
   11-3  residential housing in any area of the subdivision that is in a
   11-4  floodplain unless the housing qualifies for insurance under the
   11-5  National Flood Insurance Act of 1968 (42 U.S.C. Sections 4001
   11-6  through 4127).
   11-7        (c)  On request, the county clerk shall provide the attorney
   11-8  general or the Texas Water Development Board:
   11-9              (1)  a copy of each plat that is approved under this
  11-10  subchapter; or
  11-11              (2)  the reasons in writing and any documentation that
  11-12  support a variance granted under Section 232.042.
  11-13        Sec. 232.025.  SUBDIVISION REQUIREMENTS.  By an order adopted
  11-14  and entered in the minutes of the commissioners court, and after a
  11-15  notice is published in English and Spanish in a newspaper of
  11-16  general circulation in the county, the commissioners court shall
  11-17  for each subdivision:
  11-18              (1)  require a right-of-way on a street or road that
  11-19  functions as a main artery in a subdivision, of a width of not less
  11-20  than 50 feet or more than 100 feet;
  11-21              (2)  require a right-of-way on any other street or road
  11-22  in a subdivision of not less than 40 feet or more than 70 feet;
  11-23              (3)  require that the shoulder-to-shoulder width on
  11-24  collectors or main arteries within the right-of-way be not less
  11-25  than 32 feet or more than 56 feet, and that the
   12-1  shoulder-to-shoulder width on any other street or road be not less
   12-2  than 25 feet or more than 35 feet;
   12-3              (4)  adopt, based on the amount and kind of travel over
   12-4  each street or road in a subdivision, reasonable specifications
   12-5  relating to the construction of each street or road;
   12-6              (5)  adopt reasonable specifications to provide
   12-7  adequate drainage for each street or road in a subdivision in
   12-8  accordance with standard engineering practices;
   12-9              (6)  require that each purchase contract made between a
  12-10  subdivider and a purchaser of land in the subdivision contain a
  12-11  statement describing how and when water, sewer, electricity, and
  12-12  gas services will be made available to the subdivision; and
  12-13              (7)  require that the subdivider of the tract execute a
  12-14  bond in the manner provided by Section 232.027.
  12-15        Sec. 232.026.  WATER AND SEWER SERVICE EXTENSION.  (a)  The
  12-16  commissioners court may extend, beyond the date specified on the
  12-17  plat or on the document attached to the plat, the date by which the
  12-18  water and sewer service facilities must be fully operable if the
  12-19  commissioners court finds the extension is reasonable and not
  12-20  contrary to the public interest.
  12-21        (b)  The commissioners court may not grant an extension under
  12-22  Subsection (a) if it would allow an occupied residence to be
  12-23  without water or sewer services.
  12-24        (c)  If the commissioners court provides an extension, the
  12-25  commissioners court shall notify the attorney general of the
   13-1  extension and the reason for the extension.  The attorney general
   13-2  shall notify all other state agencies having enforcement power over
   13-3  subdivisions in affected counties of the extension.
   13-4        Sec. 232.027.  BOND REQUIREMENTS.  (a)  Unless a person has
   13-5  completed the installation of all water and sewer service
   13-6  facilities required by this subchapter on the date that person
   13-7  applies for final approval of a plat under Section 232.024, the
   13-8  commissioners court shall require the subdivider of the tract to
   13-9  execute and maintain in effect a bond or, in the alternative, a
  13-10  person may make a cash deposit in an amount the commissioners court
  13-11  determines will ensure compliance with this subchapter.  A person
  13-12  may not meet the requirements of this subsection through the use of
  13-13  a letter of credit unless that letter of credit is irrevocable and
  13-14  issued by an institution guaranteed by the FDIC.  The subdivider
  13-15  must comply with the requirement before subdividing the tract.
  13-16        (b)  The bond must be conditioned on the construction or
  13-17  installation of water and sewer service facilities that will be in
  13-18  compliance with the model rules adopted under Section 16.343, Water
  13-19  Code.
  13-20        Sec. 232.028.  CERTIFICATION REGARDING COMPLIANCE WITH PLAT
  13-21  REQUIREMENTS.  (a)  On the approval of a plat by the commissioners
  13-22  court, the commissioners court shall issue to the person applying
  13-23  for the approval a certificate stating that the plat has been
  13-24  reviewed and approved by the commissioners court.
  13-25        (b)  On the written request of a subdivider, an owner or
   14-1  resident of a lot in a subdivision, or an entity that provides a
   14-2  utility service, the commissioners court shall make the following
   14-3  determinations regarding the land in which the entity or
   14-4  commissioners court is interested that is located within the
   14-5  jurisdiction of the county:
   14-6              (1)  whether a plat has been prepared and whether it
   14-7  has been reviewed and approved by the commissioners court;
   14-8              (2)  whether water service facilities have been
   14-9  constructed or installed to service the subdivision under Section
  14-10  232.023 and are fully operable;
  14-11              (3)  whether sewer service facilities have been
  14-12  constructed or installed to service the subdivision under Section
  14-13  232.023 and are fully operable, or if septic systems are used,
  14-14  whether lots in the subdivision can be adequately and legally
  14-15  served by septic systems under Section 232.023; and
  14-16              (4)  whether electrical and gas facilities, if
  14-17  available, have been constructed or installed to service the
  14-18  subdivision under Section 232.023.
  14-19        (c)  The request made under Subsection (b) must identify the
  14-20  land that is the subject of the request.
  14-21        (d)  Whenever a request is made under Subsection (b), the
  14-22  commissioners court shall issue the requesting party a written
  14-23  certification of its determinations under that subsection.
  14-24        (e)  The commissioners court shall make its determinations
  14-25  within 20 days after the date it receives the request under
   15-1  Subsection (b) and shall issue the certificate, if appropriate,
   15-2  within 10 days after the date the determinations are made.
   15-3        (f)  The commissioners court may adopt rules it considers
   15-4  necessary to administer its duties under this section.
   15-5        Sec. 232.029.  CONNECTION OF UTILITIES.  (a)  Except as
   15-6  provided by Section 232.037(c), a utility may not serve or connect
   15-7  any subdivided land with water or sewer services unless the utility
   15-8  receives a certificate issued by the commissioners court under
   15-9  Section 232.028(a) or receives a determination from the
  15-10  commissioners court under Section 232.028(b)(1) that the plat has
  15-11  been reviewed and approved by the commissioners court.
  15-12        (b)  Except as provided by Section 232.037(c), a utility may
  15-13  not serve or connect any subdivided land with electricity or gas
  15-14  unless the entity receives a determination from the county
  15-15  commissioners court under Section 232.028(b)(2) that adequate water
  15-16  and sewer services have been installed to service the subdivision.
  15-17        (c)  The prohibition established by this section shall not
  15-18  prohibit an electric or gas utility from providing electric or gas
  15-19  utility connection or service to a lot being sold, conveyed, or
  15-20  purchased through a contract for deed or executory contract or
  15-21  other device by a subdivider prior to July 1, 1995, which is
  15-22  located within a subdivision where the utility has previously
  15-23  established service and was subdivided by a plat approved prior to
  15-24  September 1, 1989.
  15-25        Sec. 232.030.  SUBDIVISION REGULATION; COUNTY AUTHORITY.  (a)
   16-1  The commissioners court for each county shall adopt and enforce the
   16-2  model rules developed under Section 16.343, Water Code.
   16-3        (b)  Except as provided by Section 16.350(d), Water Code, or
   16-4  Section 232.042, the commissioners court may not grant a variance
   16-5  or adopt regulations that waive any requirements of this
   16-6  subchapter.
   16-7        (c)  The commissioners court shall adopt regulations setting
   16-8  forth requirements for:
   16-9              (1)  potable water sufficient in quality and quantity
  16-10  to meet minimum state standards;
  16-11              (2)  solid waste disposal meeting minimum state
  16-12  standards and rules adopted by the county under Chapter 364, Health
  16-13  and Safety Code;
  16-14              (3)  sufficient and adequate roads that satisfy the
  16-15  standards adopted by the county;
  16-16              (4)  sewer facilities meeting minimum state standards;
  16-17              (5)  electric service and gas service; and
  16-18              (6)  standards for flood management meeting the minimum
  16-19  standards set forth by the Federal Emergency Management Agency
  16-20  under the National Flood Insurance Act of 1968 (42 U.S.C.  Sections
  16-21  4001 through 4127).
  16-22        (d)  In adopting regulations under Subsection (c)(2), the
  16-23  commissioners court may allow one or more commercial providers to
  16-24  provide solid waste disposal services as an alternative to having
  16-25  the service provided by the county.
   17-1        Sec. 232.031.  REQUIREMENTS PRIOR TO SALE OR LEASE.  (a)  A
   17-2  subdivider may not sell or lease land in a subdivision first
   17-3  platted or replatted after July 1, 1995, unless the subdivision
   17-4  plat is approved by the commissioners court in accordance with
   17-5  Section 232.024.
   17-6        (b)  Not later than the 30th day after the date a lot is
   17-7  sold, a subdivider shall record with the county clerk all sales
   17-8  contracts, including the attached disclosure statement required by
   17-9  Section 232.033, leases, and any other documents that convey an
  17-10  interest in the subdivided land.
  17-11        (c)  A document filed under Subsection (b) is a public
  17-12  record.
  17-13        Sec. 232.032.  SERVICES PROVIDED BY SUBDIVIDER.  A subdivider
  17-14  having an approved plat for a subdivision shall:
  17-15              (1)  furnish a certified letter from the utility
  17-16  provider stating that water is available to the subdivision
  17-17  sufficient in quality and quantity to meet minimum state standards
  17-18  required by Section 16.343, Water Code, and consistent with the
  17-19  certification in the letter, and that water of that quality and
  17-20  quantity will be made available to the point of delivery to all
  17-21  lots in the subdivision;
  17-22              (2)  furnish sewage treatment facilities that meet
  17-23  minimum state standards to fulfill the wastewater requirements of
  17-24  the subdivision or furnish certification by the appropriate county
  17-25  or state official having jurisdiction over the approval of the
   18-1  septic systems indicating that lots in the subdivision can be
   18-2  adequately and legally served by septic systems as provided under
   18-3  Chapter 366, Health and Safety Code;
   18-4              (3)  furnish roads satisfying minimum standards as
   18-5  adopted by the county;
   18-6              (4)  furnish adequate drainage meeting standard
   18-7  engineering practices; and
   18-8              (5)  make a reasonable effort to have electric utility
   18-9  service and gas utility service installed by a utility.
  18-10        Sec. 232.033.  ADVERTISING STANDARDS AND OTHER REQUIREMENTS
  18-11  BEFORE SALE; OFFENSE.  (a)  Brochures, publications, and
  18-12  advertising of any form relating to subdivided land:
  18-13              (1)  may not contain any misrepresentation; and
  18-14              (2)  except for a for-sale sign posted on the property
  18-15  that is no larger than three feet by three feet, must accurately
  18-16  describe the availability of water and sewer service facilities and
  18-17  electric and gas utilities.
  18-18        (b)  The subdivider shall provide a copy in Spanish of all
  18-19  written documents relating to the sale of subdivided land under an
  18-20  executory contract, including the contract, disclosure notice, and
  18-21  annual statement required by this section and a notice of default
  18-22  required by Subchapter D, Chapter 5, Property Code, if:
  18-23              (1)  negotiations that precede the execution of the
  18-24  executory contract are conducted primarily in Spanish; or
  18-25              (2)  the purchaser requests the written documents to be
   19-1  provided in Spanish.
   19-2        (c)  Before an executory contract is signed by the purchaser,
   19-3  the subdivider shall provide the purchaser with a written notice,
   19-4  which must be attached to the executory contract, informing the
   19-5  purchaser of the condition of the property that must, at a minimum,
   19-6  be executed by the subdivider and purchaser, be acknowledged, and
   19-7  read substantially similar to the following:
   19-8                                WARNING
   19-9        IF ANY OF THE ITEMS BELOW HAVE NOT BEEN
  19-10        CHECKED, YOU MAY NOT BE ABLE TO LIVE ON THE
  19-11        PROPERTY.
  19-12        CONCERNING THE PROPERTY AT (street address or legal
  19-13        description and city)
  19-14        THIS DOCUMENT STATES THE TRUE FACTS ABOUT THE LAND YOU ARE
  19-15        CONSIDERING PURCHASING.
  19-16        CHECK OFF THE ITEMS THAT ARE TRUE:
  19-17         ___ The property is in a recorded subdivision.
  19-18         ___ The property has water service that provides potable
  19-19              water.
  19-20         ___ The property has sewer service or a septic system.
  19-21         ___ The property has electric service.
  19-22         ___ The property is not in a flood-prone area.
  19-23         ___ The roads are paved.
  19-24         ___ No person other than the subdivider:
  19-25              (1)  owns the property;
   20-1              (2)  has a claim of ownership to the property; or
   20-2              (3)  has an interest in the property.
   20-3         ___ No person has a lien filed against the property.
   20-4         ___ There are no back taxes owed on the property.
   20-5                                NOTICE
   20-6        SELLER ADVISES PURCHASER TO:
   20-7              (1)  OBTAIN A TITLE ABSTRACT OR TITLE
   20-8              COMMITMENT REVIEWED BY AN ATTORNEY BEFORE
   20-9              SIGNING A CONTRACT OF THIS TYPE; AND
  20-10              (2)  PURCHASE AN OWNER'S POLICY OF TITLE
  20-11              INSURANCE COVERING THE PROPERTY.
  20-12         _______________________________________________________
  20-13         (Date)                        (Signature of Subdivider)
  20-14         _______________________________________________________
  20-15         (Date)                         (Signature of Purchaser)
  20-16        (d)  The subdivider shall provide any purchaser who is sold a
  20-17  lot under an executory contract with an annual statement in January
  20-18  of each year for the term of the executory contract.  If the
  20-19  subdivider mails the statement to the purchaser, the statement must
  20-20  be postmarked not later than January 31.
  20-21        (e)  The statement under Subsection (d) must include the
  20-22  following information:
  20-23              (1)  the amount paid under the contract;
  20-24              (2)  the remaining amount owed under the contract;
  20-25              (3)  the annual interest rate charged under the
   21-1  contract during the preceding 12-month period; and
   21-2              (4)  the number of payments remaining under the
   21-3  contract.
   21-4        (f)  If the subdivider fails to comply with Subsections (d)
   21-5  and (e), the purchaser may:
   21-6              (1)  notify the subdivider that the purchaser has not
   21-7  received the statement and will deduct 15 percent of each monthly
   21-8  payment due until the statement is received; and
   21-9              (2)  not earlier than the 25th day after the date the
  21-10  purchaser provides the subdivider notice under this subsection,
  21-11  deduct 15 percent of each monthly payment due until the statement
  21-12  is received by the purchaser.
  21-13        (g)  A purchaser who makes a deduction under Subsection (f)
  21-14  is not required to reimburse the subdivider for the amount
  21-15  deducted.
  21-16        (h)  A person who is a seller of lots in a subdivision, or a
  21-17  subdivider or an agent of a seller or subdivider, commits an
  21-18  offense if the person knowingly authorizes or assists in the
  21-19  publication, advertising, distribution, or circulation of any
  21-20  statement or representation that the person knows is false
  21-21  concerning any subdivided land offered for sale or lease.  An
  21-22  offense under this section is a Class A misdemeanor.
  21-23        Sec. 232.034.  CONFLICT OF INTEREST; PENALTY.  (a)  In this
  21-24  section, "subdivided tract" means a tract of land, as a whole, that
  21-25  is subdivided into tracts or lots.  The term does not mean an
   22-1  individual lot in a subdivided tract of land.
   22-2        (b)  A person has an interest in a subdivided tract if the
   22-3  person:
   22-4              (1)  has an equitable or legal ownership interest in
   22-5  the tract;
   22-6              (2)  acts as a developer of the tract;
   22-7              (3)  owns voting stock or shares of a business entity
   22-8  that:
   22-9                    (A)  has an equitable or legal ownership interest
  22-10  in the tract; or
  22-11                    (B)  acts as a developer of the tract; or
  22-12              (4)  receives in a calendar year money or any thing of
  22-13  value from a business entity described by Subdivision (3).
  22-14        (c)  A person also is considered to have an interest in a
  22-15  subdivided tract if the person is related in the second degree by
  22-16  consanguinity or affinity, as determined under Chapter 573,
  22-17  Government Code, to a person who, under Subsection (b), has an
  22-18  interest in the tract.
  22-19        (d)  If a member of the commissioners court has an interest
  22-20  in a subdivided tract, the member shall file, before a vote or
  22-21  decision regarding the approval of a plat for the tract, an
  22-22  affidavit with the county clerk stating the nature and extent of
  22-23  the interest and shall abstain from further participation in the
  22-24  matter.  The affidavit must be filed with the county clerk.
  22-25        (e)  A member of the commissioners court of a county commits
   23-1  an offense if the member violates Subsection (d).  An offense under
   23-2  this subsection is a Class A misdemeanor.
   23-3        (f)  The finding by a court of a violation of this section
   23-4  does not render voidable an action of the commissioners court
   23-5  unless the measure would not have passed the commissioners court
   23-6  but for the vote of the member who violated this section.
   23-7        (g)  A conviction under Subsection (e) constitutes official
   23-8  misconduct by the member and is grounds for removal from office.
   23-9        Sec. 232.035.  CIVIL PENALTIES.  (a)  A subdivider or an
  23-10  agent of a subdivider may not cause, suffer, allow, or permit a lot
  23-11  to be sold in a subdivision if the subdivision has not been platted
  23-12  as required by this subchapter.
  23-13        (b)  Notwithstanding any other remedy at law or equity, a
  23-14  subdivider or an agent of a subdivider may not cause, suffer,
  23-15  allow, or permit any part of a subdivision in an affected county
  23-16  over which the subdivider or an agent of the subdivider has
  23-17  control, or a right of ingress and egress, to become a public
  23-18  health nuisance as defined by Section 341.011, Health and Safety
  23-19  Code.
  23-20        (c)  A subdivider who fails to provide, in the time and
  23-21  manner described in the plat, for the construction or installation
  23-22  of water or sewer service facilities described on the plat or on
  23-23  the document attached to the plat or who otherwise violates this
  23-24  subchapter or a rule or requirement adopted by the commissioners
  23-25  court under this subchapter is subject to a civil penalty of not
   24-1  less than $500 or more than $1,000 for each violation and for each
   24-2  day of a continuing violation but not to exceed $5,000 each day and
   24-3  shall also pay court costs, investigative costs, and attorney's
   24-4  fees for the governmental entity bringing the suit.
   24-5        (d)  Except as provided by Subsection (e), a person who
   24-6  violates Subsection (a) or (b) is subject to a civil penalty of not
   24-7  less than $10,000 or more than $15,000 for each lot conveyed or
   24-8  each subdivision that becomes a nuisance. The person must also pay
   24-9  court costs, investigative costs, and attorney's fees for the
  24-10  governmental entity bringing the suit.
  24-11        (e)  A person who violates Subsection (b) is not subject to a
  24-12  fine under Subsection (d) if the person corrects the nuisance not
  24-13  later than the 30th day after the date the person receives notice
  24-14  from the attorney general or a local health authority of the
  24-15  nuisance.
  24-16        (f)  Venue for an action under this section is in a district
  24-17  court of Travis County, a district court in the county in which the
  24-18  defendant resides, or a district court in the county in which the
  24-19  violation or threat of violation occurs.
  24-20        Sec. 232.036.  CRIMINAL PENALTIES.  (a)  A subdivider commits
  24-21  an offense if the subdivider knowingly fails to file a plat
  24-22  required by this subchapter.  An offense under this subsection is a
  24-23  Class A misdemeanor.
  24-24        (b)  A subdivider who owns a subdivision commits an offense
  24-25  if the subdivider knowingly fails to timely provide for the
   25-1  construction or installation of water or sewer service as required
   25-2  by Section 232.032 or fails to make a reasonable effort to have
   25-3  electric utility service and gas utility service installed by a
   25-4  utility as required by Section 232.032.  An offense under this
   25-5  subsection is a Class A misdemeanor.
   25-6        (c)  If it is shown at the trial of an offense under
   25-7  Subsection (a) that the defendant caused five or more residences in
   25-8  the subdivision to be inhabited, the offense is a state jail
   25-9  felony.
  25-10        (d)  A subdivider commits an offense if the subdivider allows
  25-11  the conveyance of a lot in the subdivision without the appropriate
  25-12  water and sewer utilities as required by Section 232.032 or without
  25-13  having made a reasonable effort to have electric utility service
  25-14  and gas utility service installed by a utility as required by
  25-15  Section 232.032.  An offense under this section is a Class A
  25-16  misdemeanor.  Each lot conveyed constitutes a separate offense.
  25-17        (e)  Venue for prosecution for a violation under this section
  25-18  is in the county in which any element of the violation is alleged
  25-19  to have occurred or in Travis County.
  25-20        Sec. 232.037.  ENFORCEMENT.  (a)  The attorney general, or
  25-21  the district attorney, criminal district attorney, county attorney
  25-22  with felony responsibilities, or county attorney of an affected
  25-23  county may take any action necessary in a court of competent
  25-24  jurisdiction on behalf of the state or on behalf of residents to:
  25-25              (1)  enjoin the violation or threatened violation of
   26-1  the model rules adopted under Section 16.343, Water Code;
   26-2              (2)  enjoin the violation or threatened violation of a
   26-3  requirement of this subchapter or a rule adopted by the
   26-4  commissioners court under this subchapter;
   26-5              (3)  recover civil or criminal penalties, attorney's
   26-6  fees, litigation costs, and investigation costs; and
   26-7              (4)  require platting or replatting under Section
   26-8  232.040.
   26-9        (b)  The attorney general, at the request of the district or
  26-10  county attorney with jurisdiction, may conduct a criminal
  26-11  prosecution under Section 232.033(h) or 232.036.
  26-12        (c)  During the pendency of any enforcement action brought,
  26-13  any resident of the affected subdivision, or the attorney general,
  26-14  district attorney, or county attorney on behalf of a resident, may
  26-15  file a motion against the provider of utilities to halt termination
  26-16  of pre-existing utility services. The services may not be
  26-17  terminated if the court makes an affirmative finding after hearing
  26-18  the motion that termination poses a threat to public health,
  26-19  safety, or welfare of the residents.
  26-20        Sec. 232.038.  SUIT BY PRIVATE PERSON IN ECONOMICALLY
  26-21  DISTRESSED AREA.  A person who has purchased or is purchasing a lot
  26-22  after July 1, 1995, in a subdivision for residential purposes that
  26-23  does not have water and sewer services as required by this
  26-24  subchapter and is located in an economically distressed area, as
  26-25  defined by Section 17.921, Water Code, in an affected county, from
   27-1  a subdivider, may bring suit in the district court in which the
   27-2  property is located or in a district court in Travis County to:
   27-3              (1)  declare the sale of the property void and require
   27-4  the subdivider to return the purchase price of the property; and
   27-5              (2)  recover from the subdivider:
   27-6                    (A)  the market value of any permanent
   27-7  improvements the person placed on the property;
   27-8                    (B)  actual expenses incurred as a direct result
   27-9  of the failure to provide adequate water and sewer facilities;
  27-10                    (C)  court costs; and
  27-11                    (D)  reasonable attorney's fees.
  27-12        Sec. 232.039.  CANCELLATION OF SUBDIVISION.  (a)  A
  27-13  subdivider of land in an affected county may apply to the
  27-14  commissioners court to cancel all or part of the subdivision in the
  27-15  manner provided by Section 232.008 after notice and hearing as
  27-16  provided by this section.
  27-17        (b)  A resident of a subdivision for which the subdivider has
  27-18  applied for cancellation under Subsection (a) has the same rights
  27-19  as a purchaser of land under Section 232.008.
  27-20        (c)  The notice required by Section 232.008(c) must also be
  27-21  published in Spanish in the newspaper of highest circulation and in
  27-22  a Spanish-language newspaper in the county if available.
  27-23        (d)  Not later than the 14th day before the date of the
  27-24  hearing, the county chief appraiser shall by regular and certified
  27-25  mail provide notice containing the information described by Section
   28-1  232.008(c) to:
   28-2              (1)  each person who pays property taxes in the
   28-3  subdivision, as determined by the most recent tax roll; and
   28-4              (2)  each person with an interest in the property.
   28-5        (e)  The commissioners court may require a subdivider to
   28-6  provide the court with the name and last known address of each
   28-7  person with an interest in the property.  For purposes of this
   28-8  subsection, a person residing on a lot purchased through an
   28-9  executory contract has an interest in the property.
  28-10        (f)  A person who fails to provide information requested
  28-11  under Subsection (e) before the 31st day after the date the request
  28-12  is made is liable to the state for a penalty of $500 for each week
  28-13  the person fails to provide the information.
  28-14        (g)  The commissioners court may cancel a subdivision only
  28-15  after a public hearing.  At the hearing, the commissioners court
  28-16  shall permit any interested person to be heard.  At the conclusion
  28-17  of the hearing, the commissioners court shall adopt an order on
  28-18  whether to cancel the subdivision.
  28-19        Sec. 232.040.  REPLATTING.  (a)  A subdivision plat must
  28-20  accurately reflect the subdivision as it develops.   If there is
  28-21  any change, either by the intentional act of the subdivider or by
  28-22  the forces of nature, including changes in the size or dimension of
  28-23  lots or the direction or condition of the roads, a plat must be
  28-24  revised in accordance with Section 232.041.
  28-25        (b)  Except as provided by Subsection (c), a lot in a
   29-1  subdivision may not be sold if the lot lacks water and sewer
   29-2  services as required by this subchapter unless the lot is platted
   29-3  or replatted as required by this subchapter.  A subdivider or agent
   29-4  of a subdivider may not transfer a lot through an executory
   29-5  contract or other similar conveyance to evade the requirements of
   29-6  this subchapter.  The prohibition in this subsection includes the
   29-7  sale of a lot:
   29-8              (1)  by a subdivider who regains possession of a lot
   29-9  previously exempt under Subsection (c) through the exercise of a
  29-10  remedy described in Section 5.061, Property Code; or
  29-11              (2)  for which it is shown at a proceeding brought in
  29-12  the district court in which the property is located that the sale
  29-13  of a lot otherwise exempt under Subsection (c) was made for the
  29-14  purpose of evading the requirements of this subchapter.
  29-15        (c)  Subsection (b) does not apply if a seller other than a
  29-16  subdivider or agent of a subdivider:
  29-17              (1)  resides on the lot; or
  29-18              (2)  purchases the lot through a contract for deed.
  29-19        (d)  The attorney general or a district or county attorney
  29-20  with jurisdiction may bring a proceeding under Subsection (b).
  29-21        (e)  Existing utility services to a subdivision that must be
  29-22  platted or replatted under this section may not be terminated under
  29-23  Section 232.029.
  29-24        Sec. 232.041.  REVISION OF PLAT.  (a)  A person who has
  29-25  subdivided land that is subject to the subdivision controls of the
   30-1  county in which the land is located may apply in writing to the
   30-2  commissioners court of the county for permission to revise the
   30-3  subdivision plat filed for record with the county clerk.
   30-4        (b)  After the application is filed with the commissioners
   30-5  court, the court shall publish a notice of the application in a
   30-6  newspaper of general circulation in the county.  The notice must
   30-7  include a statement of the time and place at which the court will
   30-8  meet to consider the application and to hear protests to the
   30-9  revision of the plat.  The notice must be published at least three
  30-10  times during the period that begins on the 30th day and ends on the
  30-11  seventh day before the date of the meeting.  If all or part of the
  30-12  subdivided tract has been sold to nondeveloper owners, the court
  30-13  shall also give notice to each of those owners by certified or
  30-14  registered mail, return receipt requested, at the owner's address
  30-15  in the subdivided tract.
  30-16        (c)  During a regular term of the commissioners court, the
  30-17  court shall adopt an order to permit the revision of the
  30-18  subdivision plat if it is shown to the court that:
  30-19              (1)  the revision will not interfere with the
  30-20  established rights of any owner of a part of the subdivided land;
  30-21  or
  30-22              (2)  each owner whose rights may be interfered with has
  30-23  agreed to the revision.
  30-24        (d)  If the commissioners court permits a person to revise a
  30-25  subdivision plat, the person may make the revision by filing for
   31-1  record with the county clerk a revised plat or part of a plat that
   31-2  indicates the changes made to the original plat.
   31-3        Sec. 232.042.  VARIANCES.  (a)  On request of a subdivider or
   31-4  resident purchaser, the commissioners court may grant a delay or a
   31-5  variance from compliance with Section 232.040 as provided by this
   31-6  section.
   31-7        (b)  The commissioners court may grant a delay of two years
   31-8  if the reason for the delay is to install utilities.  A person may
   31-9  apply for one renewal of a delay under this subsection.  To obtain
  31-10  an initial delay under this subsection, a subdivider must:
  31-11              (1)  identify the affected utility providers;
  31-12              (2)  provide the terms and conditions on which service
  31-13  may be provided; and
  31-14              (3)  provide a certified letter from each utility
  31-15  provider stating that it has the right to serve the area and it
  31-16  will serve the area.
  31-17        (c)  The commissioners court may grant a delay or a variance
  31-18  for a reason other than a reason described by Subsection (b) if it
  31-19  is shown that compliance would be impractical or would be contrary
  31-20  to the health and safety of residents of the subdivision.  The
  31-21  commissioners court must issue written findings stating the reasons
  31-22  why compliance is impractical.
  31-23        (d)  A delay or a variance granted by the commissioners court
  31-24  is valid only if the commissioners court notifies the attorney
  31-25  general of the delay or variance and the reasons for the delay or
   32-1  variance not later than the 30th day after the date the
   32-2  commissioners court grants the delay or variance.
   32-3        (e)  Until approved water and sewer services are made
   32-4  available to the subdivision, the subdivider of land for which a
   32-5  delay is granted under this section must provide at no cost to
   32-6  residents:
   32-7              (1)  25 gallons of potable water a day for each
   32-8  resident and a suitable container for storing the water; and
   32-9              (2)  suitable temporary sanitary wastewater disposal
  32-10  facilities.
  32-11        SECTION 5.  Subchapter B, Chapter 412, Local Government Code,
  32-12  is amended by adding Section 412.015 to read as follows:
  32-13        Sec. 412.015.  COUNTY WATER AND SEWER UTILITY.  An affected
  32-14  county, as defined by Section 16.341, Water Code, may own, operate,
  32-15  or maintain  a water or sewer utility in the same manner as a
  32-16  municipality under Chapter 402.
  32-17        SECTION 6.  Section 13.002, Water Code, is amended by
  32-18  amending Subdivision (23) and adding Subdivision (26) to read as
  32-19  follows:
  32-20              (23)  "Water and sewer utility," "public utility," or
  32-21  "utility" means any person, corporation, cooperative corporation,
  32-22  affected county, or any combination of these persons or entities,
  32-23  other than a municipal corporation, water supply or sewer service
  32-24  corporation, or a political subdivision of the state, except an
  32-25  affected county, or their lessees, trustees, and receivers, owning
   33-1  or operating for compensation in this state equipment or facilities
   33-2  for the transmission, storage, distribution, sale, or provision of
   33-3  potable water to the public or for the resale of potable water to
   33-4  the public for any use or for the collection, transportation,
   33-5  treatment, or disposal of sewage or other operation of a sewage
   33-6  disposal service for the public, other than equipment or facilities
   33-7  owned and operated for either purpose by a municipality or other
   33-8  political subdivision of this state or a water supply or sewer
   33-9  service corporation, but does not include any person or corporation
  33-10  not otherwise a public utility that furnishes the services or
  33-11  commodity only to itself or its employees or tenants as an incident
  33-12  of that employee service or tenancy when that service or commodity
  33-13  is not resold to or used by others.
  33-14              (26)  "Affected county" has the meaning assigned by
  33-15  Section 232.021, Local Government Code.
  33-16        SECTION 7.  Section 13.043, Water Code, is amended by
  33-17  amending Subsections (b), (c), (f), and (g) and adding Subsection
  33-18  (k) to read as follows:
  33-19        (b)  Ratepayers of the following entities may appeal the
  33-20  decision of the governing body of the entity affecting their water,
  33-21  drainage, or sewer rates to the commission:
  33-22              (1)  a nonprofit water supply or sewer service
  33-23  corporation created and operating under Chapter 76, Acts of the
  33-24  43rd Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's
  33-25  Texas Civil Statutes);
   34-1              (2)  a utility under the jurisdiction of a municipality
   34-2  inside the corporate limits of the municipality;
   34-3              (3)  a municipally owned utility, if the ratepayers
   34-4  reside outside the corporate limits of the municipality; <and>
   34-5              (4)  a district or authority created under Article III,
   34-6  Section 52, or Article XVI, Section 59, of the Texas Constitution
   34-7  that provides water or sewer service to household users; and
   34-8              (5)  a utility owned by an affected county, if the
   34-9  ratepayer's rates are actually or may be adversely affected.  For
  34-10  the purposes of this section ratepayers who reside outside the
  34-11  boundaries of the district or authority shall be considered a
  34-12  separate class from ratepayers who reside inside those boundaries.
  34-13        (c)  An appeal under Subsection (b) of this section must be
  34-14  initiated by filing a petition for review with the commission and
  34-15  the entity providing service within 90 days after the effective day
  34-16  of the rate change or, if appealing under Subdivision (b)(2) or (5)
  34-17  of this section, within 90 days after the date on which the
  34-18  governing body of the municipality or affected county makes a final
  34-19  decision. The petition must be signed by the lesser of 10,000 or 10
  34-20  percent of those ratepayers whose rates have been changed and who
  34-21  are eligible to appeal under Subsection (b) of this section.
  34-22        (f)  A retail public utility that receives water or sewer
  34-23  service from another retail public utility or political subdivision
  34-24  of the state, including an affected county, may appeal to the
  34-25  commission a decision of the provider of water or sewer service
   35-1  affecting the amount paid for water or sewer service.  An appeal
   35-2  under this subsection must be initiated within 90 days after the
   35-3  date of notice of the decision is received from the provider of
   35-4  water or sewer service by the filing of a petition by the retail
   35-5  public utility.
   35-6        (g)  An applicant for service from an affected county or a
   35-7  water supply or sewer service corporation may appeal to the
   35-8  commission a decision of the county or water supply or sewer
   35-9  service corporation affecting the amount to be paid to obtain
  35-10  service in addition to the regular membership or tap fees.  If the
  35-11  commission finds the amount charged to be unreasonable, it shall
  35-12  establish the fee to be paid for that applicant.  An appeal under
  35-13  this subsection must be initiated within 90 days after the date
  35-14  written notice is provided to the applicant or member of the
  35-15  decision of an affected county or water supply or sewer service
  35-16  corporation <corporation's decision> relating to the applicant's
  35-17  initial request for that service.
  35-18        (k)  Not later than the 30th day after the date of a final
  35-19  decision on a rate change, the commissioners court of an affected
  35-20  county shall provide  written notice to each ratepayer eligible to
  35-21  appeal.  The notice must include the effective date of the new
  35-22  rates, the new rates, and the location where additional information
  35-23  on rates may be obtained.
  35-24        SECTION 8.  The heading to Subchapter D, Chapter 13, Water
  35-25  Code, is amended to read as follows:
   36-1              SUBCHAPTER D.  MUNICIPALITIES AND COUNTIES
   36-2        SECTION 9.  Section 13.084, Water Code, is amended to read as
   36-3  follows:
   36-4        Sec. 13.084.  AUTHORITY OF GOVERNING BODY; COST
   36-5  REIMBURSEMENT.  The governing body of any municipality or the
   36-6  commissioners court of an affected county shall have the right to
   36-7  select and engage rate consultants, accountants, auditors,
   36-8  attorneys, engineers, or any combination of these experts to
   36-9  conduct investigations, present evidence, advise and represent the
  36-10  governing body, and assist with litigation on water and sewer
  36-11  utility ratemaking proceedings.  The water and sewer utility
  36-12  engaged in those proceedings shall be required to reimburse the
  36-13  governing body or the commissioners court for the reasonable costs
  36-14  of those services and shall be allowed to recover those expenses
  36-15  through its rates with interest during the period of recovery.
  36-16        SECTION 10.  Section 13.085, Water Code, is amended to read
  36-17  as follows:
  36-18        Sec. 13.085.  ASSISTANCE BY COMMISSION.  On request, the
  36-19  commission may advise and assist municipalities and affected
  36-20  counties in connection with questions and proceedings arising under
  36-21  this chapter.  This assistance may include aid to municipalities or
  36-22  an affected county in connection with matters pending before the
  36-23  commission, the courts, <or> the governing body of any
  36-24  municipality, or the commissioners court of an affected county,
  36-25  including making members of the staff available to them as
   37-1  witnesses and otherwise providing evidence.
   37-2        SECTION 11.  Section 13.139(a), Water Code, is amended to
   37-3  read as follows:
   37-4        (a)  Every retail public utility that possesses or is
   37-5  required to possess a certificate of public convenience and
   37-6  necessity and every district and affected county that furnishes
   37-7  retail water or sewer utility service, shall furnish the service,
   37-8  instrumentalities, and facilities as are safe, adequate, efficient,
   37-9  and reasonable.
  37-10        SECTION 12.  Section 13.141, Water Code, is amended to read
  37-11  as follows:
  37-12        Sec. 13.141.  BILLING FOR SERVICE TO STATE.  A utility,
  37-13  utility owned by an affected county, or municipally owned utility
  37-14  may not bill or otherwise require the state or a state agency or
  37-15  institution to pay for service before the service is rendered.
  37-16        SECTION 13.  Section 13.181, Water Code, is amended to read
  37-17  as follows:
  37-18        Sec. 13.181.  POWER TO ENSURE COMPLIANCE; RATE REGULATION.
  37-19  Subject to this chapter, the commission has all authority and power
  37-20  of the state to ensure compliance with the obligations of utilities
  37-21  under this chapter. For this purpose the regulatory authority may
  37-22  fix and regulate rates of utilities, including rules and
  37-23  regulations for determining the classification of customers and
  37-24  services and for determining the applicability of rates.  A rule or
  37-25  order of the regulatory authority may not conflict with the rulings
   38-1  of any federal regulatory body.  Except Section 13.192, this
   38-2  subchapter shall apply only to a utility and shall not be applied
   38-3  to municipalities, counties, districts, or water supply or sewer
   38-4  service corporations.  The commission may adopt rules which
   38-5  authorize a utility which is permitted under Section 13.242(c) to
   38-6  provide service without a certificate of public convenience and
   38-7  necessity to request or implement a rate increase and operate
   38-8  according to rules, regulations, and standards of service other
   38-9  than those otherwise required under this chapter provided that
  38-10  rates are just and reasonable for customers and the utility and
  38-11  that service is safe, adequate, efficient, and reasonable.
  38-12        SECTION 14.  Section 13.242(a), Water Code, is amended to
  38-13  read as follows:
  38-14        (a)  Unless otherwise specified, a utility, a utility
  38-15  operated by an affected county, or a water supply or sewer service
  38-16  corporation may not in any way render retail water or sewer utility
  38-17  service directly or indirectly to the public without first having
  38-18  obtained from the commission a certificate that the present or
  38-19  future public convenience and necessity will require that
  38-20  installation, operation, or extension, and except as otherwise
  38-21  provided by this subchapter, a retail public utility may not
  38-22  furnish, make available, render, or extend retail water or sewer
  38-23  utility service to any area to which retail water or sewer utility
  38-24  service is being lawfully furnished by another retail public
  38-25  utility without first having obtained a certificate of public
   39-1  convenience and necessity that includes the area in which the
   39-2  consuming facility is located.
   39-3        SECTION 15.  Sections 16.343(a) and (g), Water Code, are
   39-4  amended to read as follows:
   39-5        (a)  The Texas Natural Resource Conservation <Water>
   39-6  Commission and the Texas Department of Health shall, in conjunction
   39-7  with the board and after consultation with the attorney general,
   39-8  prepare model rules to assure that minimum standards for safe and
   39-9  sanitary water supply and sewer services in residential areas of
  39-10  political subdivisions, including rules of any state agency
  39-11  relating to septic tanks and other waste disposal systems, are met.
  39-12        (g)  Before filing an application for funds for facility
  39-13  engineering under Section 15.407 of this code or financial
  39-14  assistance under Subchapter K, Chapter 17, of this code, a
  39-15  political subdivision must adopt the model rules pursuant to this
  39-16  section or, in the case of a district or nonprofit water supply
  39-17  corporation, must be located in a city or county that has adopted
  39-18  such rules.  An affected county may not receive funds under either
  39-19  Section 15.407 of this code or Subchapter K, Chapter 17, of this
  39-20  code unless the county adopts and enforces the model rules.
  39-21        SECTION 16.  Section 16.349, Water Code, is amended by
  39-22  amending Subsection (b) and adding Subsection (c) to read as
  39-23  follows:
  39-24        (b)  Except as provided by Subsection (c), the <The> amount
  39-25  charged under Subsection (a) of this section may be equal to or
   40-1  less than the rates paid for water supply and sewer services by
   40-2  residents of the political subdivision <and without regard to
   40-3  whether the economically distressed area is located in the
   40-4  boundaries of the political subdivision>.
   40-5        (c)  A political subdivision holding a certificate of
   40-6  convenience and necessity described by Section 13.242, that extends
   40-7  service to an economically distressed area outside the boundaries
   40-8  of the political subdivision, may not charge the residents of the
   40-9  area rates that exceed the lesser of:
  40-10              (1)  the cost of providing service to the area; or
  40-11              (2)  the rates charged other residents of the political
  40-12  subdivision plus 15 percent.
  40-13        SECTION 17.  Section 16.352, Water Code, is amended to read
  40-14  as follows:
  40-15        Sec. 16.352.  ENFORCEMENT OF RULES.  (a) A person who
  40-16  violates a rule adopted by a county or municipality pursuant to
  40-17  Section 16.343 of this code is subject to a civil penalty of not
  40-18  less than $1,000 <$50> nor more than $10,000 <$1,000> for each
  40-19  violation and for each day of a continuing violation but not in
  40-20  excess of $50,000 <$5,000> per day.
  40-21        (b)  A person commits an offense if the person knowingly or
  40-22  intentionally violates a rule adopted under this subchapter
  40-23  <pursuant to Section 16.343 of this code by a county or a
  40-24  municipality>.
  40-25        (c)  An offense under Subsection (b) of this section is a
   41-1  Class A <B> misdemeanor.
   41-2        (d)  Venue for prosecution of an offense under Subsection (b)
   41-3  is in a county in which any element of the offense is alleged to
   41-4  have occurred or in Travis County.
   41-5        SECTION 18.  Section 16.353, Water Code, is amended to read
   41-6  as follows:
   41-7        Sec. 16.353.  INJUNCTION.  In addition to other remedies, the
   41-8  attorney general or<,> the county or district attorney of the
   41-9  county in which the violation occurred is<, or other local
  41-10  officials are> authorized to apply to the district court for and
  41-11  the court in its discretion may grant the state or political
  41-12  subdivision, without bond or other undertaking, any injunction that
  41-13  the facts may warrant including temporary restraining orders,
  41-14  temporary injunctions after notice and hearing, and permanent
  41-15  injunctions enjoining a violation of the rules.
  41-16        SECTION 19.  Subchapter J, Chapter 16, Water Code, is amended
  41-17  by adding Section 16.356 to read as follows:
  41-18        Sec. 16.356.  VENUE.  A suit under this subchapter for
  41-19  injunctive relief or for the recovery of a civil penalty may be
  41-20  brought in a district court in:
  41-21              (1)  the county in which the defendant resides;
  41-22              (2)  the county in which the alleged violation or
  41-23  threat of violation occurs; or
  41-24              (3)  Travis County.
  41-25        SECTION 20.  Section 17.921(1), Water Code, is amended to
   42-1  read as follows:
   42-2              (1)  "Economically distressed area" means an area in
   42-3  which:
   42-4                    (A)  water supply or sewer services are
   42-5  inadequate to meet minimal needs of residential users as defined by
   42-6  board rules;
   42-7                    (B)  financial resources are inadequate to
   42-8  provide water supply or sewer services that will satisfy those
   42-9  needs; and
  42-10                    (C)  the percentage <80 percent> of the dwellings
  42-11  occupied on June 1, 1989, to be served by financial assistance
  42-12  under this subchapter was at least:
  42-13                          (i)  80 percent; or
  42-14                          (ii)  50 percent, if the services provided
  42-15  by financial assistance under this subchapter can be provided by
  42-16  common or regional facilities in a cost-effective manner in
  42-17  conjunction with service provided to an economically distressed
  42-18  area as determined under the other provisions of this subdivision
  42-19  <were occupied on June 1, 1989>.
  42-20        SECTION 21.  Section 17.933, Water Code, is amended by adding
  42-21  Subsection (g) to read as follows:
  42-22        (g)  The amount of financial assistance provided by the board
  42-23  to a political subdivision for service to areas defined in Section
  42-24  17.921(1)(C)(ii) for which repayment is not required is 50 percent
  42-25  of the state bond proceeds used for the design and construction of
   43-1  the service.
   43-2        SECTION 22.  Subchapter K, Chapter 17, Water Code, is amended
   43-3  by adding Section 17.936 to read as follows:
   43-4        Sec. 17.936.  RECOVERY OF ECONOMICALLY DISTRESSED AREA IMPACT
   43-5  FEES.  (a)  It is the intent of the legislature that a private
   43-6  developer not unduly benefit from the expenditure by the state of
   43-7  public funds on infrastructure for public benefit.
   43-8        (b)  In this section:
   43-9              (1)  "Capital improvement costs" includes:
  43-10                    (A)  the construction contract price;
  43-11                    (B)  surveying and engineering fees;
  43-12                    (C)  land acquisition costs, including land
  43-13  purchases, court awards and costs, attorney's fees, and expert
  43-14  witness fees;
  43-15                    (D)  fees actually paid or contracted to be paid
  43-16  to an independent, qualified engineer or financial consultant who
  43-17  is:
  43-18                          (i)  preparing or updating the capital
  43-19  improvements plan; and
  43-20                          (ii)  not an employee of the subdivision;
  43-21  and
  43-22                    (E)  projected interest charges and other finance
  43-23  costs that are used for the payment of principal and interest on
  43-24  bonds, notes, or other obligations issued by or on behalf of the
  43-25  political subdivision to finance the capital improvements plan and
   44-1  that are not used to reimburse bond funds expended for facilities
   44-2  that are not identified in the capital improvements plan of the
   44-3  subdivision.
   44-4              (2)  "Economically distressed areas program impact
   44-5  fees" means the pro rata share of the capital improvement costs
   44-6  attributable to each lot in an economically distressed area.
   44-7        (c)  This section applies only to property located in:
   44-8              (1)  the unincorporated area of an affected county, as
   44-9  defined by Section 16.341; and
  44-10              (2)  an economically distressed area, as defined by
  44-11  Section 16.341.
  44-12        (d)  The provider of water or wastewater utility service to
  44-13  an economically distressed area may recover from a developer or
  44-14  owner of an undeveloped lot economically distressed areas program
  44-15  impact fees as provided by rules adopted by the board.
  44-16        SECTION 23.  Section 26.001, Water Code, effective until
  44-17  delegation of NPDES permit authority, is amended by adding
  44-18  Subdivision (20) to read as follows:
  44-19              (20)  "Affected county" has the meaning assigned by
  44-20  Section 232.021, Local Government Code.
  44-21        SECTION 24.  Section 26.001, Water Code, effective upon
  44-22  delegation of NPDES permit authority, is amended by adding
  44-23  Subdivision (26) to read as follows:
  44-24              (26)  "Affected county" has the meaning assigned by
  44-25  Section 232.021, Local Government Code.
   45-1        SECTION 25.  Section 26.123, Water Code, effective until
   45-2  delegation of NPDES permit authority, is amended by adding
   45-3  Subsection (f) to read as follows:
   45-4        (f)  If the attorney general determines that a subdivider, as
   45-5  defined by Section 232.021, Local Government Code, of land in an
   45-6  affected county has violated or is threatening to violate a
   45-7  provision of this chapter, or a rule adopted by the commission
   45-8  under this chapter, the executive director on the request of the
   45-9  attorney general shall conduct an investigation of the alleged
  45-10  violation.  The executive director shall consult with the attorney
  45-11  general during the investigation to determine appropriate remedial
  45-12  action.
  45-13        SECTION 26.  Section 26.123, Water Code, effective upon
  45-14  delegation of NPDES permit authority, is amended by adding
  45-15  Subsection (j) to read as follows:
  45-16        (j)  If the attorney general determines that a subdivider, as
  45-17  defined by Section 232.021, Local Government Code, of land in an
  45-18  affected county has violated or is threatening to violate a
  45-19  provision of this chapter, or a rule adopted by the commission
  45-20  under this chapter, the executive director on the request of the
  45-21  attorney general shall conduct an investigation of the alleged
  45-22  violation.  The executive director shall consult with the attorney
  45-23  general during the investigation to determine appropriate remedial
  45-24  action.
  45-25        SECTION 27.  Section 26.124, Water Code, is amended by adding
   46-1  Subsection (c) to read as follows:
   46-2        (c)  If the attorney general determines that a violation of
   46-3  Section 26.121 or a rule adopted under that section has occurred or
   46-4  is about to occur in an affected county, the attorney general may
   46-5  institute a civil suit in district court for injunctive relief or
   46-6  civil penalties against the person who has or is about to commit a
   46-7  violation.
   46-8        SECTION 28.  Subchapter E, Chapter 2306, Government Code, is
   46-9  amended by adding Section 2306.0985 to read as follows:
  46-10        Sec. 2306.0985.  RECOVERY OF FUNDS FROM CERTAIN SUBDIVISIONS.
  46-11  (a)  It is the intent of the legislature that a private developer
  46-12  not unduly benefit from the expenditure by the state of public
  46-13  funds on infrastructure for public benefit.
  46-14        (b)  This section applies only to property located in:
  46-15              (1)  the unincorporated area of an affected county, as
  46-16  defined by Section 16.341, Water Code; and
  46-17              (2)  an economically distressed area, as defined by
  46-18  Section 16.341, Water Code.
  46-19        (c)  As a condition for the receipt of state funds, and to
  46-20  the extent permitted by law, federal funds, the department may
  46-21  require a political entity with authority to tax and place a lien
  46-22  on property to place a lien or assessment on property that benefits
  46-23  from the expenditure of state or federal funds for water,
  46-24  wastewater, or drainage improvements affecting the property.  The
  46-25  lien or assessment may not exceed an amount equal to the cost of
   47-1  making the improvements as those costs relate to the property.  The
   47-2  lien or assessment expires 10 years after the date the improvements
   47-3  are completed.
   47-4        (d)  If property subject to a lien or assessment under
   47-5  Subsection (c) is sold, the seller must pay to the political entity
   47-6  from the proceeds of the sale an amount equal to the value of the
   47-7  lien or assessment.  This subsection does not apply if:
   47-8              (1)  the reason for the sale is:
   47-9                    (A)  the disposition of the estate following the
  47-10  death of the owner of the property; or
  47-11                    (B)  the owner because of physical condition must
  47-12  reside in a continuous care facility and no longer resides on the
  47-13  property; or
  47-14              (2)  the owner of the property is a person of low or
  47-15  moderate income.
  47-16        (e)  If property subject to a lien or assessment under
  47-17  Subsection (c) is repossessed by the holder of a note or a contract
  47-18  for deed, the holder must pay to the political entity an amount
  47-19  equal to the value of the lien or assessment before taking
  47-20  possession of the property.
  47-21        (f)  Subject to rules adopted by the department, a political
  47-22  entity shall collect payments made under this section and remit the
  47-23  funds for deposit in the treasury to the credit of a special
  47-24  account in the general revenue fund that may be appropriated only
  47-25  to the department for use in administering a program under Section
   48-1  2306.098.
   48-2        (g)  After public notice and comment, the department shall
   48-3  adopt rules to administer this section.  The department may provide
   48-4  by rule for the reduction or waiver of a fee authorized by this
   48-5  section.
   48-6        SECTION 29.  The following sections of the Local Government
   48-7  Code are repealed: Sections 232.001(f), 232.0035, 232.0036,
   48-8  232.0046, 232.0047, and 232.0049.
   48-9        SECTION 30.  (a)  The changes in law made in Sections 4 and
  48-10  17 of this Act relating to criminal offenses apply only to an
  48-11  offense committed on or after the effective date of this Act.  For
  48-12  purposes of this subsection, an offense is committed before the
  48-13  effective date of this Act if any element of the offense occurs
  48-14  before that date.  An offense committed before the effective date
  48-15  of this Act is governed by the law in effect when the offense was
  48-16  committed, and the former law is continued in effect for this
  48-17  purpose.
  48-18        (b)  The changes in law made in Sections 4 and 17 of this Act
  48-19  relating to civil penalties apply only to a violation that occurs
  48-20  on or after the effective date of this Act.  For purposes of this
  48-21  subsection, a violation is committed before the effective date of
  48-22  this Act if any element of the violation occurs before that date.
  48-23  A violation committed before the effective date of this Act is
  48-24  governed by the law in effect when the violation occurred, and the
  48-25  former law is continued in effect for this purpose.
   49-1        SECTION 31.  This Act does not exempt the deliberations of a
   49-2  political subdivision from the requirements of Chapter 551,
   49-3  Government Code.
   49-4        SECTION 32.  Counties must comply with the requirements of
   49-5  this Act by July 1, 1995.  Section 232.033, Local Government Code,
   49-6  as added by this Act, relating to advertising standards, is
   49-7  effective on July 1, 1995.
   49-8        SECTION 33.  The importance of this legislation and the
   49-9  crowded condition of the calendars in both houses create an
  49-10  emergency and an imperative public necessity that the
  49-11  constitutional rule requiring bills to be read on three several
  49-12  days in each house be suspended, and this rule is hereby suspended,
  49-13  and that this Act take effect and be in force from and after its
  49-14  passage, and it is so enacted.