1-1        By:  Cuellar of Webb (Senate Sponsor - Zaffirini)    H.B. No.
    1-2  1001
    1-3        (In the Senate - Received from the House April 28, 1995;
    1-4  May 1, 1995, read first time and referred to Committee on
    1-5  International Relations, Trade, and Technology; May 17, 1995,
    1-6  reported adversely, with favorable Committee Substitute by the
    1-7  following vote:  Yeas 9, Nays 0; May 17, 1995, sent to printer.)
    1-8  COMMITTEE SUBSTITUTE FOR H.B. No. 1001                   By:  Truan
    1-9                         A BILL TO BE ENTITLED
   1-10                                AN ACT
   1-11  relating to the regulation of subdivisions in economically
   1-12  distressed areas and the delivery of water and sewer services to
   1-13  economically distressed subdivisions; providing civil and criminal
   1-14  penalties.
   1-15        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-16        SECTION 1.  LEGISLATIVE FINDINGS.  The legislature finds
   1-17  that:
   1-18              (1)  economically distressed subdivisions commonly
   1-19  called "colonias" are found throughout the affected counties;
   1-20              (2)  in recent years, the number of people living in
   1-21  these economically distressed subdivisions in the affected counties
   1-22  has increased;
   1-23              (3)  due to the implementation of the North American
   1-24  Free Trade Agreement (NAFTA), the General Agreement on Tariffs and
   1-25  Trade (GATT), other economic incentives, and the increasingly
   1-26  robust economic development along the Texas-Mexico border, the
   1-27  population in economically distressed subdivisions in the affected
   1-28  counties will continue to increase;
   1-29              (4)  the residents of the economically distressed
   1-30  subdivisions in the affected counties constitute an unusually
   1-31  mobile population, moving to all parts of the state and beyond the
   1-32  state to seek employment;
   1-33              (5)  these conditions allow unscrupulous individuals,
   1-34  through the use of executory contracts, to take advantage of the
   1-35  residents of economically distressed subdivisions by charging
   1-36  usurious rates of interest as well as allowing unbridled discretion
   1-37  to evict;
   1-38              (6)  the vast majority of housing units in these
   1-39  economically distressed subdivisions lack an adequate potable water
   1-40  supply and concomitant wastewater or sewer services;
   1-41              (7)  the lack of an adequate potable water supply and
   1-42  concomitant wastewater or sewer services creates a serious and
   1-43  unacceptable health hazard from third world illnesses for the
   1-44  residents of the economically distressed subdivisions in the
   1-45  affected counties;
   1-46              (8)  many of the housing units in these economically
   1-47  distressed subdivisions are located in isolated rural segments in
   1-48  the affected counties where the land is inexpensive, located in
   1-49  floodplains, and subject to flooding after rains, leading to the
   1-50  overflow of pit privies and thus to the spreading of bacteria onto
   1-51  the land and into the water table;
   1-52              (9)  the location, proliferation, and conditions in
   1-53  these economically distressed subdivisions pose a clear and
   1-54  substantial threat to the environment of the border region, as well
   1-55  as to all Texas;
   1-56              (10)  the lack of an adequate potable water supply and
   1-57  concomitant wastewater or sewer services, coupled with the location
   1-58  of these subdivisions, erodes the economic stability of the
   1-59  affected counties, which are dependent upon a healthy public and a
   1-60  safe environment;
   1-61              (11)  the lack of an adequate potable water supply and
   1-62  concomitant wastewater or sewer services erodes the economic
   1-63  stability of the affected counties, which is required for the
   1-64  mutual development of trade, transportation, and commerce,
   1-65  affecting not only the border region, but all regions of the state
   1-66  where the trade, transportation, and commerce reach;
   1-67              (12)  the health risk created along the border in the
   1-68  affected counties, the expected increase in population during the
    2-1  next decade, and the mobility of the residents of these
    2-2  economically distressed subdivisions, coupled with the fact that
    2-3  the trade, transportation, and commerce along the border is the
    2-4  most intense in the United States, create the very substantial risk
    2-5  of third world epidemics spreading to the residents of this state
    2-6  and beyond;
    2-7              (13)  unless adequate remedial steps are taken
    2-8  immediately to alleviate the health risks to all Texans that are
    2-9  caused by the lack of basic services in the affected counties, the
   2-10  costs of containing an epidemic will be astronomical; and
   2-11              (14)  the need to address this public health and safety
   2-12  hazard is a compelling crisis that must be addressed through this
   2-13  legislation.
   2-14        SECTION 2.  Sections 232.001 through 232.010, Local
   2-15  Government Code, are designated as Subchapter A of Chapter 232,
   2-16  Local Government Code, and Chapter 232 is amended by adding a
   2-17  heading to Subchapter A to read as follows:
   2-18      SUBCHAPTER A.  SUBDIVISION PLATTING REQUIREMENTS IN GENERAL
   2-19        SECTION 3.  Section 232.0015, Local Government Code, is
   2-20  amended to read as follows:
   2-21        Sec. 232.0015.  EXCEPTIONS <EXCEPTION> TO PLAT REQUIREMENT<:
   2-22  COUNTY DETERMINATION>.  (a)  To determine whether specific
   2-23  divisions of land are required to be platted, a county may define
   2-24  and classify the divisions.  A county need not require platting for
   2-25  every division of land otherwise within the scope of this
   2-26  subchapter <chapter>.
   2-27        (b)  This subchapter does not apply to a subdivision of land
   2-28  to which Subchapter B applies.
   2-29        SECTION 4.  Chapter 232, Local Government Code, is amended by
   2-30  adding Subchapter B to read as follows:
   2-31          SUBCHAPTER B.  SUBDIVISION PLATTING REQUIREMENTS IN
   2-32                   ECONOMICALLY DISTRESSED COUNTIES
   2-33        Sec. 232.021.  DEFINITIONS.  In this subchapter:
   2-34              (1)  "Affected county" means a county:
   2-35                    (A)  that has a per capita income that averaged
   2-36  25 percent below the state average for the most recent three
   2-37  consecutive years for which statistics are available and an
   2-38  unemployment rate that averaged 25 percent above the state average
   2-39  for the most recent three consecutive years for which statistics
   2-40  are available; and
   2-41                    (B)  any part of which is within 50 miles of an
   2-42  international border.
   2-43              (2)  "Board" means the Texas Water Development Board.
   2-44              (3)  "Common promotional plan" means any plan or scheme
   2-45  of operation undertaken by a single subdivider or a group of
   2-46  subdividers acting in concert, either personally or through an
   2-47  agent, to offer for sale or lease lots when the land is:
   2-48                    (A)  contiguous or part of the same area of land;
   2-49  or
   2-50                    (B)  known, designated, or advertised as a common
   2-51  unit or by a common name.
   2-52              (4)  "Executive administrator" means the executive
   2-53  administrator of the Texas Water Development Board.
   2-54              (5)  "Floodplain" means any area in the 100-year
   2-55  floodplain that is susceptible to being inundated by water from any
   2-56  source and that is identified by the Federal Emergency Management
   2-57  Agency under the National Flood Insurance Act of 1968 (42 U.S.C.
   2-58  Sections 4001 through 4127).
   2-59              (6)  "Lease" includes an offer to lease.
   2-60              (7)  "Lot" means a parcel into which land that is
   2-61  intended for residential use is divided.
   2-62              (8)  "Minimum state standards" means the minimum
   2-63  standards set out for:
   2-64                    (A)  adequate drinking water by or under Section
   2-65  16.343(b)(1), Water Code;
   2-66                    (B)  adequate sewer facilities by or under
   2-67  Section 16.343(c)(1), Water Code; or
   2-68                    (C)  the treatment, disposal, and management of
   2-69  solid waste by or under Chapters 361 and 364, Health and Safety
   2-70  Code.
    3-1              (9)  "Plat" means a map, chart, survey, plan, or replat
    3-2  containing a description of the subdivided land with ties to
    3-3  permanent landmarks or monuments.
    3-4              (10)  "Sell" includes an offer to sell.
    3-5              (11)  "Sewer," "sewer services," or "sewer facilities"
    3-6  means treatment works as defined by Section 17.001, Water Code, or
    3-7  individual, on-site, or cluster treatment systems such as septic
    3-8  tanks and includes drainage facilities and other improvements for
    3-9  proper functioning of septic tank systems.
   3-10              (12)  "Subdivide" means to divide the surface area of
   3-11  land into lots intended primarily for residential use.
   3-12              (13)  "Subdivider" means an individual, firm,
   3-13  corporation, or other legal entity that owns any interest in land
   3-14  and that directly or indirectly  subdivides land into lots as part
   3-15  of a common promotional plan in the ordinary course of business.
   3-16              (14)  "Subdivision" means an area of land that has been
   3-17  subdivided into lots for sale or lease.
   3-18              (15)  "Utility" means a person, including a legal
   3-19  entity or political subdivision, that provides the services of:
   3-20                    (A)  an electric utility, as defined by Section
   3-21  3(c)(1), Public Utility Regulatory Act (Article 1446c, Vernon's
   3-22  Texas Civil Statutes);
   3-23                    (B)  a gas utility, as defined by Section 1.03,
   3-24  Gas Utility Regulatory Act (Article 1446e, Vernon's Texas Civil
   3-25  Statutes); and
   3-26                    (C)  a water and sewer utility, as defined by
   3-27  Section 13.002, Water Code.
   3-28        Sec. 232.022.  APPLICABILITY.  (a)  This subchapter applies
   3-29  only to land that is subdivided into four or more lots that are
   3-30  intended primarily for residential use in the jurisdiction of an
   3-31  affected county.  A lot is presumed to be intended for residential
   3-32  use if the lot is five acres or less.  This subchapter does not
   3-33  apply if the subdivision is incident to the conveyance of the land
   3-34  as a gift.
   3-35        (b)  For purposes of this section, land is considered to be
   3-36  in the jurisdiction of a county if the land is located in the
   3-37  county, outside the corporate limits of municipalities, and outside
   3-38  the extraterritorial jurisdiction of municipalities, as determined
   3-39  under Chapter 42.
   3-40        Sec. 232.023.  PLAT REQUIRED.  (a)  A subdivider of land in
   3-41  an affected county must have a plat of the subdivision prepared.  A
   3-42  subdivision of a tract under this subsection includes a subdivision
   3-43  of real property by any method of conveyance, including a contract
   3-44  for deed, oral contract, contract of sale, or other type of
   3-45  executory contract, regardless of whether the subdivision is made
   3-46  by using a metes and bounds description.
   3-47        (b)  A plat required under this section must:
   3-48              (1)  be certified by a surveyor or engineer registered
   3-49  to practice in this state;
   3-50              (2)  define the subdivision by metes and bounds;
   3-51              (3)  locate the subdivision with respect to an original
   3-52  corner of the original survey of which it is a part;
   3-53              (4)  describe each lot, number each lot in progression,
   3-54  and give the dimensions of each lot;
   3-55              (5)  state the dimensions of and accurately describe
   3-56  each lot, street, alley, square, park, or other part of the tract
   3-57  intended to be dedicated to public use or for the use of purchasers
   3-58  or owners of lots fronting on or adjacent to the street, alley,
   3-59  square, park, or other part;
   3-60              (6)  include or have attached a document containing a
   3-61  description in English and Spanish of the water and sewer
   3-62  facilities and roadways and easements dedicated for the provision
   3-63  of water and sewer facilities that will be constructed or installed
   3-64  to service the subdivision and a statement specifying the date by
   3-65  which the facilities will be fully operable;
   3-66              (7)  have attached a document prepared by an engineer
   3-67  registered to practice in this state certifying that the water and
   3-68  sewer service facilities proposed under Subdivision (6) are in
   3-69  compliance with the model rules adopted under Section 16.343, Water
   3-70  Code, and a certified estimate of the cost to install water and
    4-1  sewer service facilities;
    4-2              (8)  provide for drainage in the subdivision to:
    4-3                    (A)  avoid concentration of storm drainage water
    4-4  from each lot to adjacent lots;
    4-5                    (B) provide positive drainage away from all
    4-6  buildings; and
    4-7                    (C)  coordinate individual lot drainage with the
    4-8  general storm drainage pattern for the area;
    4-9              (9)  include a description of the drainage requirements
   4-10  as provided in Subdivision (8);
   4-11              (10)  identify the topography of the area;
   4-12              (11)  include a certification by a surveyor or engineer
   4-13  registered to practice in this state describing any area of the
   4-14  subdivision that is in a floodplain or stating that no area is in a
   4-15  floodplain; and
   4-16              (12)  include certification that the subdivider has
   4-17  complied with the requirements of Section 232.032 and that:
   4-18                    (A)  the water quality and connections to the
   4-19  lots meet, or will meet, the minimum state standards;
   4-20                    (B)  sewer connections to the lots or septic
   4-21  tanks meet, or will meet, the minimum requirements of state
   4-22  standards;
   4-23                    (C)  electrical connections provided to the lot
   4-24  meet, or will meet, the minimum state standards; and
   4-25                    (D)  gas connections, if available, provided to
   4-26  the lot meet, or will meet, the minimum state standards.
   4-27        (c)  A subdivider may meet the requirements of Subsection
   4-28  (b)(12)(B) through the use of a certificate issued by the
   4-29  appropriate county or state official having jurisdiction over the
   4-30  approval of septic systems stating that lots in the subdivision can
   4-31  be adequately and legally served by septic systems.
   4-32        (d)  The subdivider of the tract must acknowledge the plat by
   4-33  signing the plat and attached documents and attest to the veracity
   4-34  and completeness of the matters asserted in the attached documents
   4-35  and in the plat.
   4-36        (e)  The plat must be filed and recorded with the county
   4-37  clerk of the county in which the tract is located.  The plat is
   4-38  subject to the filing and recording provisions of Section 12.002,
   4-39  Property Code.
   4-40        Sec. 232.024.  APPROVAL BY COUNTY REQUIRED.  (a)  A plat
   4-41  filed under Section 232.023 is not valid unless the commissioners
   4-42  court of the county in which the land is located approves the plat
   4-43  by an order entered in the minutes of the court.  The commissioners
   4-44  court shall refuse to approve a plat if it does not meet the
   4-45  requirements prescribed by or under this subchapter or if any bond
   4-46  required under this subchapter is not filed with the county clerk.
   4-47        (b)  If any part of a plat applies to land intended for
   4-48  residential housing and any part of that land lies in a floodplain,
   4-49  the commissioners court shall not approve the plat unless the plat
   4-50  evidences a restrictive covenant as required by this subsection.
   4-51  The restrictive covenant shall prohibit the construction of
   4-52  residential housing in any area of the subdivision that is in a
   4-53  floodplain unless the housing qualifies for insurance under the
   4-54  National Flood Insurance Act of 1968 (42 U.S.C. Sections 4001
   4-55  through 4127).
   4-56        (c)  On request, the county clerk shall provide the attorney
   4-57  general or the Texas Water Development Board:
   4-58              (1)  a copy of each plat that is approved under this
   4-59  subchapter; or
   4-60              (2)  the reasons in writing and any documentation that
   4-61  support a variance granted under Section 232.042.
   4-62        Sec. 232.025.  SUBDIVISION REQUIREMENTS.        By an order
   4-63  adopted and entered in the minutes of the commissioners court, and
   4-64  after a notice is published in English and Spanish in a newspaper
   4-65  of general circulation in the county, the commissioners court shall
   4-66  for each subdivision:
   4-67              (1)  require a right-of-way on a street or road that
   4-68  functions as a main artery in a subdivision, of a width of not less
   4-69  than 50 feet or more than 100 feet;
   4-70              (2)  require a right-of-way on any other street or road
    5-1  in a subdivision of not less than 40 feet or more than 70 feet;
    5-2              (3)  require that the shoulder-to-shoulder width on
    5-3  collectors or main arteries within the right-of-way be not less
    5-4  than 32 feet or more than 56 feet, and that the
    5-5  shoulder-to-shoulder width on any other street or road be not less
    5-6  than 25 feet or more than 35 feet;
    5-7              (4)  adopt, based on the amount and kind of travel over
    5-8  each street or road in a subdivision, reasonable specifications
    5-9  relating to the construction of each street or road;
   5-10              (5)  adopt reasonable specifications to provide
   5-11  adequate drainage for each street or road in a subdivision in
   5-12  accordance with standard engineering practices;
   5-13              (6)  require that each purchase contract made between a
   5-14  subdivider and a purchaser of land in the subdivision contain a
   5-15  statement describing how and when water, sewer, electricity, and
   5-16  gas services will be made available to the subdivision; and
   5-17              (7)  require that the subdivider of the tract execute a
   5-18  bond in the manner provided by Section 232.027.
   5-19        Sec. 232.026.  WATER AND SEWER SERVICE EXTENSION.  (a)  The
   5-20  commissioners court may extend, beyond the date specified on the
   5-21  plat or on the document attached to the plat, the date by which the
   5-22  water and sewer service facilities must be fully operable if the
   5-23  commissioners court finds the extension is reasonable and not
   5-24  contrary to the public interest.
   5-25        (b)  The commissioners court may not grant an extension under
   5-26  Subsection (a) if it would allow an occupied residence to be
   5-27  without water or sewer services.
   5-28        (c)  If the commissioners court provides an extension, the
   5-29  commissioners court shall notify the attorney general of the
   5-30  extension and the reason for the extension.  The attorney general
   5-31  shall notify all other state agencies having enforcement power over
   5-32  subdivisions in affected counties of the extension.
   5-33        Sec. 232.027.  BOND REQUIREMENTS.  (a)  Unless a person has
   5-34  completed the installation of all water and sewer service
   5-35  facilities required by this subchapter on the date that person
   5-36  applies for final approval of a plat under Section 232.024, the
   5-37  commissioners court shall require the subdivider of the tract to
   5-38  execute and maintain in effect a bond or, in the alternative, a
   5-39  person may make a cash deposit in an amount the commissioners court
   5-40  determines will ensure compliance with this subchapter.  A person
   5-41  may not meet the requirements of this subsection through the use of
   5-42  a letter of credit unless that letter of credit is irrevocable and
   5-43  issued by an institution guaranteed by the FDIC.  The subdivider
   5-44  must comply with the requirement before subdividing the tract.
   5-45        (b)  The bond must be conditioned on the construction or
   5-46  installation of water and sewer service facilities that will be in
   5-47  compliance with the model rules adopted under Section 16.343, Water
   5-48  Code.
   5-49        Sec. 232.028.  CERTIFICATION REGARDING COMPLIANCE WITH PLAT
   5-50  REQUIREMENTS.  (a)  On the approval of a plat by the commissioners
   5-51  court, the commissioners court shall issue to the person applying
   5-52  for the approval a certificate stating that the plat has been
   5-53  reviewed and approved by the commissioners court.
   5-54        (b)  On the written request of a subdivider, an owner or
   5-55  resident of a lot in a subdivision, or an entity that provides a
   5-56  utility service, the commissioners court shall make the following
   5-57  determinations regarding the land in which the entity or
   5-58  commissioners court is interested that is located within the
   5-59  jurisdiction of the county:
   5-60              (1)  whether a plat has been prepared and whether it
   5-61  has been reviewed and approved by the commissioners court;
   5-62              (2)  whether water service facilities have been
   5-63  constructed or installed to service the subdivision under Section
   5-64  232.023 and are fully operable;
   5-65              (3)  whether sewer service facilities have been
   5-66  constructed or installed to service the subdivision under Section
   5-67  232.023 and are fully operable, or if septic systems are used,
   5-68  whether lots in the subdivision can be adequately and legally
   5-69  served by septic systems under Section 232.023; and
   5-70              (4)  whether electrical and gas facilities, if
    6-1  available, have been constructed or installed to service the
    6-2  subdivision under Section 232.023.
    6-3        (c)  The request made under Subsection (b) must identify the
    6-4  land that is the subject of the request.
    6-5        (d)  Whenever a request is made under Subsection (b), the
    6-6  commissioners court shall issue the requesting party a written
    6-7  certification of its determinations under that subsection.
    6-8        (e)  The commissioners court shall make its determinations
    6-9  within 20 days after the date it receives the request under
   6-10  Subsection (b) and shall issue the certificate, if appropriate,
   6-11  within 10 days after the date the determinations are made.
   6-12        (f)  The commissioners court may adopt rules it considers
   6-13  necessary to administer its duties under this section.
   6-14        Sec. 232.029.  CONNECTION OF UTILITIES.  (a)  Except as
   6-15  provided by Section 232.037(c), a utility may not serve or connect
   6-16  any subdivided land with water or sewer services unless the utility
   6-17  receives a certificate issued by the commissioners court under
   6-18  Section 232.028(a) or receives a determination from the
   6-19  commissioners court under Section 232.028(b)(1) that the plat has
   6-20  been reviewed and approved by the commissioners court.
   6-21        (b)  Except as provided by Section 232.037(c), a utility may
   6-22  not serve or connect any subdivided land with electricity or gas
   6-23  unless the entity receives a determination from the county
   6-24  commissioners court under Section 232.028(b)(2) that adequate water
   6-25  and sewer services have been installed to service the subdivision.
   6-26        (c)  The prohibition established by this section shall not
   6-27  prohibit an electric or gas utility from providing electric or gas
   6-28  utility connection or service to a lot being sold, conveyed or
   6-29  purchased through a contract for deed or executory contract or
   6-30  other device by a subdivider prior to July 1, 1995, which is
   6-31  located within a subdivision where the utility has previously
   6-32  established service and was subdivided by a plat approved prior to
   6-33  September 1, 1989.
   6-34        Sec. 232.030.  SUBDIVISION REGULATION; COUNTY AUTHORITY.  (a)
   6-35  The commissioners court for each county shall adopt and enforce the
   6-36  model rules developed under Section 16.343, Water Code.
   6-37        (b)  Except as provided by Section 16.350(d), Water Code, or
   6-38  Section 232.042, the commissioners court may not grant a variance
   6-39  or adopt regulations that waive any requirements of this
   6-40  subchapter.
   6-41        (c)  The commissioners court shall adopt regulations setting
   6-42  forth requirements for:
   6-43              (1)  potable water sufficient in quality and quantity
   6-44  to meet minimum state standards;
   6-45              (2)  solid waste disposal meeting minimum state
   6-46  standards and rules adopted by the county under Chapter 364, Health
   6-47  and Safety Code;
   6-48              (3)  sufficient and adequate roads that satisfy the
   6-49  standards adopted by the county;
   6-50              (4)  sewer facilities meeting minimum state standards;
   6-51              (5)  electric service and gas service; and
   6-52              (6)  standards for flood management meeting the minimum
   6-53  standards set forth by the Federal Emergency Management Agency
   6-54  under the National Flood Insurance Act of 1968 (42 U.S.C.  Sections
   6-55  4001 through 4127).
   6-56        (d)  In adopting regulations under Subsection (c)(2), the
   6-57  commissioners court may allow one or more commercial providers to
   6-58  provide solid waste disposal services as an alternative to having
   6-59  the service provided by the county if the commercial provider is
   6-60  more efficient or is a more cost-effective alternative to county
   6-61  provision of the service.
   6-62        Sec. 232.031.  REQUIREMENTS PRIOR TO SALE OR LEASE.  (a)  A
   6-63  subdivider may not sell or lease land in a subdivision first
   6-64  platted or replatted after July 1, 1995, unless the subdivision
   6-65  plat is approved by the commissioners court in accordance with
   6-66  Section 232.024.
   6-67        (b)  Not later than the 30th day after the date a lot is
   6-68  sold, a subdivider shall record with the county clerk all sales
   6-69  contracts, including the attached disclosure statement required by
   6-70  Section 232.033, leases, and any other documents that convey an
    7-1  interest in the subdivided land.
    7-2        (c)  A document filed under Subsection (b) is a public
    7-3  record.
    7-4        Sec. 232.032.  SERVICES PROVIDED BY SUBDIVIDER.  A subdivider
    7-5  having an approved plat for a subdivision shall:
    7-6              (1)  furnish a certified letter from the utility
    7-7  provider stating that water is available to the subdivision
    7-8  sufficient in quality and quantity to meet minimum state standards
    7-9  required by Section 16.343, Water Code, and consistent with the
   7-10  certification in the letter, and that water of that quality and
   7-11  quantity will be made available to the point of delivery to all
   7-12  lots in the subdivision;
   7-13              (2)  furnish sewage treatment facilities that meet
   7-14  minimum state standards to fulfill the wastewater requirements of
   7-15  the subdivision or furnish certification by the appropriate county
   7-16  or state official having jurisdiction over the approval of the
   7-17  septic systems indicating that lots in the subdivision can be
   7-18  adequately and legally served by septic systems as provided under
   7-19  Chapter 366, Health and Safety Code;
   7-20              (3)  furnish roads satisfying minimum standards as
   7-21  adopted by the county;
   7-22              (4)  furnish adequate drainage meeting standard
   7-23  engineering practices; and
   7-24              (5)  make a reasonable effort to have electric utility
   7-25  service and gas utility service installed by a utility.
   7-26        Sec. 232.033.  ADVERTISING STANDARDS AND OTHER REQUIREMENTS
   7-27  BEFORE SALE; OFFENSE.  (a)  Brochures, publications, and
   7-28  advertising of any form relating to subdivided land:
   7-29              (1)  may not contain any misrepresentation; and
   7-30              (2)  except for a for-sale sign posted on the property
   7-31  that is no larger than three feet by three feet, must accurately
   7-32  describe the availability of water and sewer service facilities and
   7-33  electric and gas utilities.
   7-34        (b)  The subdivider shall provide a copy in Spanish of all
   7-35  written documents relating to the sale of subdivided land under an
   7-36  executory contract, including the contract, disclosure notice, and
   7-37  annual statement required by this section and a notice of default
   7-38  required by Subchapter D, Chapter 5, Property Code, if:
   7-39              (1)  negotiations that precede the execution of the
   7-40  executory contract are conducted primarily in Spanish; or
   7-41              (2)  the purchaser requests the written documents to be
   7-42  provided in Spanish.
   7-43        (c)  Before an executory contract is signed by the purchaser,
   7-44  the subdivider shall provide the purchaser with a written notice,
   7-45  which must be attached to the executory contract, informing the
   7-46  purchaser of the condition of the property that must, at a minimum,
   7-47  be executed by the subdivider and purchaser, be acknowledged, and
   7-48  read substantially similar to the following:
   7-49                                WARNING
   7-50        IF ANY OF THE ITEMS BELOW HAVE NOT BEEN
   7-51        CHECKED, YOU MAY NOT BE ABLE TO LIVE ON THE
   7-52        PROPERTY.
   7-53        CONCERNING THE PROPERTY AT (street address or legal
   7-54        description and city)
   7-55        THIS DOCUMENT STATES THE TRUE FACTS ABOUT THE LAND YOU ARE
   7-56        CONSIDERING PURCHASING.
   7-57        CHECK OFF THE ITEMS THAT ARE TRUE:
   7-58         ___ The property is in a recorded subdivision.
   7-59         ___ The property has water service that provides potable
   7-60              water.
   7-61         ___ The property has sewer service or a septic system.
   7-62         ___ The property has electric service.
   7-63         ___ The property is not in a flood-prone area.
   7-64         ___ The roads are paved.
   7-65         ___ No person other than the subdivider:
   7-66              (1)  owns the property;
   7-67              (2)  has a claim of ownership to the property; or
   7-68              (3)  has an interest in the property.
   7-69         ___ No person has a lien filed against the property.
   7-70         ___ There are no back taxes owed on the property.
    8-1                                NOTICE
    8-2        SELLER ADVISES PURCHASER TO:
    8-3              (1)  OBTAIN A TITLE ABSTRACT OR TITLE
    8-4              COMMITMENT REVIEWED BY AN ATTORNEY BEFORE
    8-5              SIGNING A CONTRACT OF THIS TYPE; AND
    8-6              (2)  PURCHASE AN OWNER'S POLICY OF TITLE
    8-7              INSURANCE COVERING THE PROPERTY.
    8-8         _______________________________________________________
    8-9         (Date)                        (Signature of Subdivider)
   8-10         _______________________________________________________
   8-11         (Date)                         (Signature of Purchaser)
   8-12        (d)  The subdivider shall provide any purchaser who is sold a
   8-13  lot under an executory contract with an annual statement in January
   8-14  of each year for the term of the executory contract.  If the
   8-15  subdivider mails the statement to the purchaser, the statement must
   8-16  be postmarked not later than January 31.
   8-17        (e)  The statement under Subsection (d) must include the
   8-18  following information:
   8-19              (1)  the amount paid under the contract;
   8-20              (2)  the remaining amount owed under the contract;
   8-21              (3)  the annual interest rate charged under the
   8-22  contract during the preceding 12-month period; and
   8-23              (4)  the number of payments remaining under the
   8-24  contract.
   8-25        (f)  If the subdivider fails to comply with Subsections (d)
   8-26  and (e), the purchaser may:
   8-27              (1)  notify the subdivider that the purchaser has not
   8-28  received the statement and will deduct 15 percent of each monthly
   8-29  payment due until the statement is received; and
   8-30              (2)  not earlier than the 25th day after the date the
   8-31  purchaser provides the subdivider notice under this subsection,
   8-32  deduct 15 percent of each monthly payment due until the statement
   8-33  is received by the purchaser.
   8-34        (g)  A purchaser who makes a deduction under Subsection (f)
   8-35  is not required to reimburse the subdivider for the amount
   8-36  deducted.
   8-37        (h)  A person who is a seller of lots in a subdivision, or a
   8-38  subdivider or an agent of a seller or subdivider, commits an
   8-39  offense if the person knowingly authorizes or assists in the
   8-40  publication, advertising, distribution, or circulation of any
   8-41  statement or representation that the person knows is false
   8-42  concerning any subdivided land offered for sale or lease.  An
   8-43  offense under this section is a Class A misdemeanor.
   8-44        Sec. 232.034.  CONFLICT OF INTEREST; PENALTY.  (a)  In this
   8-45  section, "subdivided tract" means a tract of land, as a whole, that
   8-46  is subdivided into tracts or lots.  The term does not mean an
   8-47  individual lot in a subdivided tract of land.
   8-48        (b)  A person has an interest in a subdivided tract if the
   8-49  person:
   8-50              (1)  has an equitable or legal ownership interest in
   8-51  the tract;
   8-52              (2)  acts as a developer of the tract;
   8-53              (3)  owns voting stock or shares of a business entity
   8-54  that:
   8-55                    (A)  has an equitable or legal ownership interest
   8-56  in the tract; or
   8-57                    (B)  acts as a developer of the tract; or
   8-58              (4)  receives in a calendar year money or any thing of
   8-59  value from a business entity described by Subdivision (3).
   8-60        (c)  A person also is considered to have an interest in a
   8-61  subdivided tract if the person is related in the second degree by
   8-62  consanguinity or affinity, as determined under Chapter 573,
   8-63  Government Code, to a person who, under Subsection (b), has an
   8-64  interest in the tract.
   8-65        (d)  If a member of the commissioners court has an interest
   8-66  in a subdivided tract, the member shall file, before a vote or
   8-67  decision regarding the approval of a plat for the tract, an
   8-68  affidavit with the county clerk stating the nature and extent of
   8-69  the interest and shall abstain from further participation in the
   8-70  matter.  The affidavit must be filed with the county clerk.
    9-1        (e)  A member of the commissioners court of a county commits
    9-2  an offense if the member violates Subsection (d).  An offense under
    9-3  this subsection is a Class A misdemeanor.
    9-4        (f)  The finding by a court of a violation of this section
    9-5  does not render voidable an action of the commissioners court
    9-6  unless the measure would not have passed the commissioners court
    9-7  but for the vote of the member who violated this section.
    9-8        (g)  A conviction under Subsection (e) constitutes official
    9-9  misconduct by the member and is grounds for removal from office.
   9-10        Sec. 232.035.  CIVIL PENALTIES.  (a)  A subdivider or an
   9-11  agent of a subdivider may not cause, suffer, allow, or permit a lot
   9-12  to be sold in a subdivision if the subdivision has not been platted
   9-13  as required by this subchapter.
   9-14        (b)  A subdivider or an agent of a subdivider may not cause,
   9-15  suffer, allow, or permit a subdivision or any part of a subdivision
   9-16  in an affected county to become a public health nuisance as defined
   9-17  by Section 341.011, Health and Safety Code.  This subsection does
   9-18  not apply to a lot for which a subdivider has conveyed title to a
   9-19  purchaser.
   9-20        (c)  A subdivider who fails to provide, in the time and
   9-21  manner described in the plat, for the construction or installation
   9-22  of water or sewer service facilities described on the plat or on
   9-23  the document attached to the plat or who otherwise violates this
   9-24  subchapter or a rule or requirement adopted by the commissioners
   9-25  court under this subchapter is subject to a civil penalty of not
   9-26  less than $500 or more than $1,000 for each violation and for each
   9-27  day of a continuing violation but not to exceed $5,000 each day and
   9-28  shall also pay court costs, investigative costs, and attorney's
   9-29  fees for the governmental entity bringing the suit.
   9-30        (d)  Except as provided by Subsection (e), a person who
   9-31  violates Subsection (a) or (b) is subject to a civil penalty of not
   9-32  less than $10,000 or more than $15,000 for each lot conveyed or
   9-33  each subdivision that becomes a nuisance. The person must also pay
   9-34  court costs, investigative costs, and attorney's fees for the
   9-35  governmental entity bringing the suit.
   9-36        (e)  A person who violates Subsection (b) is not subject to a
   9-37  fine under Subsection (d) if the person corrects the nuisance not
   9-38  later than the 30th day after the date the person receives notice
   9-39  from the attorney general or a local health authority of the
   9-40  nuisance.
   9-41        (f)  Venue for an action under this section is in a district
   9-42  court of Travis County, a district court in the county in which the
   9-43  defendant resides, or a district court in the county in which the
   9-44  violation or threat of violation occurs.
   9-45        Sec. 232.036.  CRIMINAL PENALTIES.  (a)  A subdivider commits
   9-46  an offense if the subdivider knowingly fails to file a plat
   9-47  required by this subchapter.  An offense under this subsection is a
   9-48  Class A misdemeanor.
   9-49        (b)  A subdivider who owns a subdivision commits an offense
   9-50  if the subdivider knowingly fails to timely provide for the
   9-51  construction or installation of water or sewer service as required
   9-52  by Section 232.032 or fails to make a reasonable effort to have
   9-53  electric utility service and gas utility service installed by a
   9-54  utility as required by Section 232.032.  An offense under this
   9-55  subsection is a Class A misdemeanor.
   9-56        (c)  If it is shown at the trial of an offense under
   9-57  Subsection (a) that the defendant caused five or more residences in
   9-58  the subdivision to be inhabited, the offense is a state jail
   9-59  felony.
   9-60        (d)  A subdivider commits an offense if the subdivider allows
   9-61  the conveyance of a lot in the subdivision without the appropriate
   9-62  water and sewer utilities as required by Section 232.032 or without
   9-63  having made a reasonable effort to have electric utility service
   9-64  and gas utility service installed by a utility as required by
   9-65  Section 232.032.  An offense under this section is a Class A
   9-66  misdemeanor.  Each lot conveyed constitutes a separate offense.
   9-67        (e)  Venue for prosecution for a violation under this section
   9-68  is in the county in which any element of the violation is alleged
   9-69  to have occurred or in Travis County.
   9-70        Sec. 232.037.  ENFORCEMENT.  (a)  The attorney general, or
   10-1  the district attorney, criminal district attorney, county attorney
   10-2  with felony responsibilities, or county attorney of an affected
   10-3  county may take any action necessary in a court of competent
   10-4  jurisdiction on behalf of the state or on behalf of residents to:
   10-5              (1)  enjoin the violation or threatened violation of
   10-6  the model rules adopted under Section 16.343, Water Code;
   10-7              (2)  enjoin the violation or threatened violation of a
   10-8  requirement of this subchapter or a rule adopted by the
   10-9  commissioners court under this subchapter;
  10-10              (3)  recover civil or criminal penalties, attorney's
  10-11  fees, litigation costs, and investigation costs; and
  10-12              (4)  require platting or replatting under Section
  10-13  232.040.
  10-14        (b)  The attorney general, at the request of the district or
  10-15  county attorney with jurisdiction, may conduct a criminal
  10-16  prosecution under Section 232.033(h) or 232.036.
  10-17        (c)  During the pendency of any enforcement action brought,
  10-18  any resident of the affected subdivision, or the attorney general,
  10-19  district attorney, or county attorney on behalf of a resident, may
  10-20  file a motion against the provider of utilities to halt termination
  10-21  of pre-existing utility services. The services may not be
  10-22  terminated if the court makes an affirmative finding after hearing
  10-23  the motion that termination poses a threat to public health,
  10-24  safety, or welfare of the residents.
  10-25        Sec. 232.038.  SUIT BY PRIVATE PERSON IN ECONOMICALLY
  10-26  DISTRESSED AREA.  A person who has purchased or is purchasing a lot
  10-27  after July 1, 1995, in a subdivision for residential purposes that
  10-28  does not have water and sewer services as required by this
  10-29  subchapter and is located in an economically distressed area, as
  10-30  defined by Section 17.921, Water Code, in an affected county, from
  10-31  a subdivider, may bring suit in the district court in which the
  10-32  property is located or in a district court in Travis County to:
  10-33              (1)  declare the sale of the property void and require
  10-34  the subdivider to return the purchase price of the property; and
  10-35              (2)  recover from the subdivider:
  10-36                    (A)  the market value of any permanent
  10-37  improvements the person placed on the property;
  10-38                    (B)  actual expenses incurred as a direct result
  10-39  of the failure to provide adequate water and sewer facilities;
  10-40                    (C)  court costs; and
  10-41                    (D)  reasonable attorney's fees.
  10-42        Sec. 232.039.  CANCELLATION OF SUBDIVISION.  (a)  A
  10-43  subdivider of land in an affected county may apply to the
  10-44  commissioners court to cancel all or part of the subdivision in the
  10-45  manner provided by Section 232.008 after notice and hearing as
  10-46  provided by this section.
  10-47        (b)  A resident of a subdivision for which the subdivider has
  10-48  applied for cancellation under Subsection (a) has the same rights
  10-49  as a purchaser of land under Section 232.008.
  10-50        (c)  The notice required by Section 232.008(c) must also be
  10-51  published in Spanish in the newspaper of highest circulation and in
  10-52  a Spanish-language newspaper in the county if available.
  10-53        (d)  Not later than the 14th day before the date of the
  10-54  hearing, the county chief appraiser shall by regular and certified
  10-55  mail provide notice containing the information described by Section
  10-56  232.008(c) to:
  10-57              (1)  each person who pays property taxes in the
  10-58  subdivision, as determined by the most recent tax roll; and
  10-59              (2)  each person with an interest in the property.
  10-60        (e)  The commissioners court may require a subdivider to
  10-61  provide the court with the name and last known address of each
  10-62  person with an interest in the property.  For purposes of this
  10-63  subsection, a person residing on a lot purchased through an
  10-64  executory contract has an interest in the property.
  10-65        (f)  A person who fails to provide information requested
  10-66  under Subsection (e) before the 31st day after the date the request
  10-67  is made is liable to the state for a penalty of $500 for each week
  10-68  the person fails to provide the information.
  10-69        (g)  The commissioners court may cancel a subdivision only
  10-70  after a public hearing.  At the hearing, the commissioners court
   11-1  shall permit any interested person to be heard.  At the conclusion
   11-2  of the hearing, the commissioners court shall adopt an order on
   11-3  whether to cancel the subdivision.
   11-4        Sec. 232.040.  REPLATTING.  (a)  A subdivision plat must
   11-5  accurately reflect the subdivision as it develops.   If there is
   11-6  any change, either by the intentional act of the subdivider or by
   11-7  the forces of nature, including changes in the size or dimension of
   11-8  lots or the direction or condition of the roads, a plat must be
   11-9  revised in accordance with Section 232.041.
  11-10        (b)  Except as provided by Subsection (c), a lot in a
  11-11  subdivision may not be sold if the lot lacks water and sewer
  11-12  services as required by this subchapter unless the lot is platted
  11-13  or replatted as required by this subchapter.  A subdivider or agent
  11-14  of a subdivider may not transfer a lot through an executory
  11-15  contract or other similar conveyance to evade the requirements of
  11-16  this subchapter.  The prohibition in this subsection includes the
  11-17  sale of a lot:
  11-18              (1)  by a subdivider who regains possession of a lot
  11-19  previously exempt under Subsection (c) through the exercise of a
  11-20  remedy described in Section 5.061, Property Code; or
  11-21              (2)  for which it is shown at a proceeding brought in
  11-22  the district court in which the property is located that the sale
  11-23  of a lot otherwise exempt under Subsection (c) was made for the
  11-24  purpose of evading the requirements of this subchapter.
  11-25        (c)  Subsection (b) does not apply if a seller other than a
  11-26  subdivider or agent of a subdivider:
  11-27              (1)  resides on the lot; or
  11-28              (2)  purchases the lot through a contract for deed.
  11-29        (d)  The attorney general or a district or county attorney
  11-30  with jurisdiction may bring a proceeding under Subsection (b).
  11-31        (e)  Existing utility services to a subdivision that must be
  11-32  platted or replatted under this section may not be terminated under
  11-33  Section 232.029.
  11-34        Sec. 232.041.  REVISION OF PLAT.  (a)  A person who has
  11-35  subdivided land that is subject to the subdivision controls of the
  11-36  county in which the land is located may apply in writing to the
  11-37  commissioners court of the county for permission to revise the
  11-38  subdivision plat filed for record with the county clerk.
  11-39        (b)  After the application is filed with the commissioners
  11-40  court, the court shall publish a notice of the application in a
  11-41  newspaper of general circulation in the county.  The notice must
  11-42  include a statement of the time and place at which the court will
  11-43  meet to consider the application and to hear protests to the
  11-44  revision of the plat.  The notice must be published at least three
  11-45  times during the period that begins on the 30th day and ends on the
  11-46  seventh day before the date of the meeting.  If all or part of the
  11-47  subdivided tract has been sold to nondeveloper owners, the court
  11-48  shall also give notice to each of those owners by certified or
  11-49  registered mail, return receipt requested, at the owner's address
  11-50  in the subdivided tract.
  11-51        (c)  During a regular term of the commissioners court, the
  11-52  court shall adopt an order to permit the revision of the
  11-53  subdivision plat if it is shown to the court that:
  11-54              (1)  the revision will not interfere with the
  11-55  established rights of any owner of a part of the subdivided land;
  11-56  or
  11-57              (2)  each owner whose rights may be interfered with has
  11-58  agreed to the revision.
  11-59        (d)  If the commissioners court permits a person to revise a
  11-60  subdivision plat, the person may make the revision by filing for
  11-61  record with the county clerk a revised plat or part of a plat that
  11-62  indicates the changes made to the original plat.
  11-63        Sec. 232.042.  VARIANCES.  (a)  On request of a subdivider or
  11-64  resident purchaser, the commissioners court may grant a delay or a
  11-65  variance from compliance with Section 232.040 as provided by this
  11-66  section.
  11-67        (b)  The commissioners court may grant a delay of two years
  11-68  if the reason for the delay is to install utilities.  A person may
  11-69  apply for one renewal of a delay under this subsection.  To obtain
  11-70  an initial delay under this subsection, a subdivider must:
   12-1              (1)  identify the affected utility providers;
   12-2              (2)  provide the terms and conditions on which service
   12-3  may be provided; and
   12-4              (3)  provide a certified letter from each utility
   12-5  provider stating that it has the right to serve the area and it
   12-6  will serve the area.
   12-7        (c)  The commissioners court may grant a delay or a variance
   12-8  for a reason other than a reason described by Subsection (b) if it
   12-9  is shown that compliance would be impractical or would be contrary
  12-10  to the health and safety of residents of the subdivision.  The
  12-11  commissioners court must issue written findings stating the reasons
  12-12  why compliance is impractical.
  12-13        (d)  A delay or a variance granted by the commissioners court
  12-14  is valid only if the commissioners court notifies the attorney
  12-15  general of the delay or variance and the reasons for the delay or
  12-16  variance not later than the 30th day after the date the
  12-17  commissioners court grants the delay or variance.
  12-18        (e)  Until approved water and sewer services are made
  12-19  available to the subdivision, the subdivider of land for which a
  12-20  delay is granted under this section must provide at no cost to
  12-21  residents:
  12-22              (1)  25 gallons of potable water a day for each
  12-23  resident and a suitable container for storing the water; and
  12-24              (2)  suitable temporary sanitary wastewater disposal
  12-25  facilities.
  12-26        SECTION 5.  Subchapter B, Chapter 412, Local Government Code,
  12-27  is amended by adding Section 412.015 to read as follows:
  12-28        Sec. 412.015.  COUNTY WATER AND SEWER UTILITY.  An affected
  12-29  county, as defined by Section 16.341, Water Code, may own, operate,
  12-30  or maintain  a water or sewer utility in the same manner as a
  12-31  municipality under Chapter 402.
  12-32        SECTION 6.  Section 13.002, Water Code, is amended by
  12-33  amending Subdivision (23) and adding Subdivision (26) to read as
  12-34  follows:
  12-35              (23)  "Water and sewer utility," "public utility," or
  12-36  "utility" means any person, corporation, cooperative corporation,
  12-37  affected county, or any combination of these persons or entities,
  12-38  other than a municipal corporation, water supply or sewer service
  12-39  corporation, or a political subdivision of the state, except an
  12-40  affected county, or their lessees, trustees, and receivers, owning
  12-41  or operating for compensation in this state equipment or facilities
  12-42  for the transmission, storage, distribution, sale, or provision of
  12-43  potable water to the public or for the resale of potable water to
  12-44  the public for any use or for the collection, transportation,
  12-45  treatment, or disposal of sewage or other operation of a sewage
  12-46  disposal service for the public, other than equipment or facilities
  12-47  owned and operated for either purpose by a municipality or other
  12-48  political subdivision of this state or a water supply or sewer
  12-49  service corporation, but does not include any person or corporation
  12-50  not otherwise a public utility that furnishes the services or
  12-51  commodity only to itself or its employees or tenants as an incident
  12-52  of that employee service or tenancy when that service or commodity
  12-53  is not resold to or used by others.
  12-54              (26)  "Affected county" has the meaning assigned by
  12-55  Section 232.021, Local Government Code.
  12-56        SECTION 7.  Section 13.043, Water Code, is amended by
  12-57  amending Subsections (b), (c), (f), and (g) and adding Subsection
  12-58  (k) to read as follows:
  12-59        (b)  Ratepayers of the following entities may appeal the
  12-60  decision of the governing body of the entity affecting their water,
  12-61  drainage, or sewer rates to the commission:
  12-62              (1)  a nonprofit water supply or sewer service
  12-63  corporation created and operating under Chapter 76, Acts of the
  12-64  43rd Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's
  12-65  Texas Civil Statutes);
  12-66              (2)  a utility under the jurisdiction of a municipality
  12-67  inside the corporate limits of the municipality;
  12-68              (3)  a municipally owned utility, if the ratepayers
  12-69  reside outside the corporate limits of the municipality; <and>
  12-70              (4)  a district or authority created under Article III,
   13-1  Section 52, or Article XVI, Section 59, of the Texas Constitution
   13-2  that provides water or sewer service to household users; and
   13-3              (5)  a utility owned by an affected county, if the
   13-4  ratepayer's rates are actually or may be adversely affected.  For
   13-5  the purposes of this section ratepayers who reside outside the
   13-6  boundaries of the district or authority shall be considered a
   13-7  separate class from ratepayers who reside inside those boundaries.
   13-8        (c)  An appeal under Subsection (b) of this section must be
   13-9  initiated by filing a petition for review with the commission and
  13-10  the entity providing service within 90 days after the effective day
  13-11  of the rate change or, if appealing under Subdivision (b)(2) or (5)
  13-12  of this section, within 90 days after the date on which the
  13-13  governing body of the municipality or affected county makes a final
  13-14  decision. The petition must be signed by the lesser of 10,000 or 10
  13-15  percent of those ratepayers whose rates have been changed and who
  13-16  are eligible to appeal under Subsection (b) of this section.
  13-17        (f)  A retail public utility that receives water or sewer
  13-18  service from another retail public utility or political subdivision
  13-19  of the state, including an affected county, may appeal to the
  13-20  commission a decision of the provider of water or sewer service
  13-21  affecting the amount paid for water or sewer service.  An appeal
  13-22  under this subsection must be initiated within 90 days after the
  13-23  date of notice of the decision is received from the provider of
  13-24  water or sewer service by the filing of a petition by the retail
  13-25  public utility.
  13-26        (g)  An applicant for service from an affected county or a
  13-27  water supply or sewer service corporation may appeal to the
  13-28  commission a decision of the county or water supply or sewer
  13-29  service corporation affecting the amount to be paid to obtain
  13-30  service in addition to the regular membership or tap fees.  If the
  13-31  commission finds the amount charged to be unreasonable, it shall
  13-32  establish the fee to be paid for that applicant.  An appeal under
  13-33  this subsection must be initiated within 90 days after the date
  13-34  written notice is provided to the applicant or member of the
  13-35  decision of an affected county or water supply or sewer service
  13-36  corporation <corporation's decision> relating to the applicant's
  13-37  initial request for that service.
  13-38        (k)  Not later than the 30th day after the date of a final
  13-39  decision on a rate change, the commissioners court of an affected
  13-40  county shall provide  written notice to each ratepayer eligible to
  13-41  appeal.  The notice must include the effective date of the new
  13-42  rates, the new rates, and the location where additional information
  13-43  on rates may be obtained.
  13-44        SECTION 8.  The heading to Subchapter D, Chapter 13, Water
  13-45  Code, is amended to read as follows:
  13-46              SUBCHAPTER D.  MUNICIPALITIES AND COUNTIES
  13-47        SECTION 9.  Section 13.084, Water Code, is amended to read as
  13-48  follows:
  13-49        Sec. 13.084.  AUTHORITY OF GOVERNING BODY; COST
  13-50  REIMBURSEMENT.  The governing body of any municipality or the
  13-51  commissioners court of an affected county shall have the right to
  13-52  select and engage rate consultants, accountants, auditors,
  13-53  attorneys, engineers, or any combination of these experts to
  13-54  conduct investigations, present evidence, advise and represent the
  13-55  governing body, and assist with litigation on water and sewer
  13-56  utility ratemaking proceedings.  The water and sewer utility
  13-57  engaged in those proceedings shall be required to reimburse the
  13-58  governing body or the commissioners court for the reasonable costs
  13-59  of those services and shall be allowed to recover those expenses
  13-60  through its rates with interest during the period of recovery.
  13-61        SECTION 10.  Section 13.085, Water Code, is amended to read
  13-62  as follows:
  13-63        Sec. 13.085.  ASSISTANCE BY COMMISSION.  On request, the
  13-64  commission may advise and assist municipalities and affected
  13-65  counties in connection with questions and proceedings arising under
  13-66  this chapter.  This assistance may include aid to municipalities or
  13-67  an affected county in connection with matters pending before the
  13-68  commission, the courts, <or> the governing body of any
  13-69  municipality, or the commissioners court of an affected county,
  13-70  including making members of the staff available to them as
   14-1  witnesses and otherwise providing evidence.
   14-2        SECTION 11.  Section 13.139(a), Water Code, is amended to
   14-3  read as follows:
   14-4        (a)  Every retail public utility that possesses or is
   14-5  required to possess a certificate of public convenience and
   14-6  necessity and every district and affected county that furnishes
   14-7  retail water or sewer utility service, shall furnish the service,
   14-8  instrumentalities, and facilities as are safe, adequate, efficient,
   14-9  and reasonable.
  14-10        SECTION 12.  Section 13.141, Water Code, is amended to read
  14-11  as follows:
  14-12        Sec. 13.141.  BILLING FOR SERVICE TO STATE.  A utility,
  14-13  utility owned by an affected county, or municipally owned utility
  14-14  may not bill or otherwise require the state or a state agency or
  14-15  institution to pay for service before the service is rendered.
  14-16        SECTION 13.  Section 13.181, Water Code, is amended to read
  14-17  as follows:
  14-18        Sec. 13.181.  POWER TO ENSURE COMPLIANCE; RATE REGULATION.
  14-19  Subject to this chapter, the commission has all authority and power
  14-20  of the state to ensure compliance with the obligations of utilities
  14-21  under this chapter. For this purpose the regulatory authority may
  14-22  fix and regulate rates of utilities, including rules and
  14-23  regulations for determining the classification of customers and
  14-24  services and for determining the applicability of rates.  A rule or
  14-25  order of the regulatory authority may not conflict with the rulings
  14-26  of any federal regulatory body.  Except Section 13.192, this
  14-27  subchapter shall apply only to a utility and shall not be applied
  14-28  to municipalities, counties, districts, or water supply or sewer
  14-29  service corporations.  The commission may adopt rules which
  14-30  authorize a utility which is permitted under Section 13.242(c) to
  14-31  provide service without a certificate of public convenience and
  14-32  necessity to request or implement a rate increase and operate
  14-33  according to rules, regulations, and standards of service other
  14-34  than those otherwise required under this chapter provided that
  14-35  rates are just and reasonable for customers and the utility and
  14-36  that service is safe, adequate, efficient, and reasonable.
  14-37        SECTION 14.  Section 13.242(a), Water Code, is amended to
  14-38  read as follows:
  14-39        (a)  Unless otherwise specified, a utility, a utility
  14-40  operated by an affected county, or a water supply or sewer service
  14-41  corporation may not in any way render retail water or sewer utility
  14-42  service directly or indirectly to the public without first having
  14-43  obtained from the commission a certificate that the present or
  14-44  future public convenience and necessity will require that
  14-45  installation, operation, or extension, and except as otherwise
  14-46  provided by this subchapter, a retail public utility may not
  14-47  furnish, make available, render, or extend retail water or sewer
  14-48  utility service to any area to which retail water or sewer utility
  14-49  service is being lawfully furnished by another retail public
  14-50  utility without first having obtained a certificate of public
  14-51  convenience and necessity that includes the area in which the
  14-52  consuming facility is located.
  14-53        SECTION 15.  Sections 16.343(a) and (g), Water Code, are
  14-54  amended to read as follows:
  14-55        (a)  The Texas Natural Resource Conservation <Water>
  14-56  Commission and the Texas Department of Health shall, in conjunction
  14-57  with the board and after consultation with the attorney general,
  14-58  prepare model rules to assure that minimum standards for safe and
  14-59  sanitary water supply and sewer services in residential areas of
  14-60  political subdivisions, including rules of any state agency
  14-61  relating to septic tanks and other waste disposal systems, are met.
  14-62        (g)  Before filing an application for funds for facility
  14-63  engineering under Section 15.407 of this code or financial
  14-64  assistance under Subchapter K, Chapter 17, of this code, a
  14-65  political subdivision must adopt the model rules pursuant to this
  14-66  section or, in the case of a district or nonprofit water supply
  14-67  corporation, must be located in a city or county that has adopted
  14-68  such rules.  An affected county may not receive funds under either
  14-69  Section 15.407 of this code or Subchapter K, Chapter 17, of this
  14-70  code unless the county adopts and enforces the model rules.
   15-1        SECTION 16.  Section 16.349, Water Code, is amended by
   15-2  amending Subsection (b) and adding Subsection (c) to read as
   15-3  follows:
   15-4        (b)  Except as provided by Subsection (c), the <The> amount
   15-5  charged under Subsection (a) of this section may be equal to or
   15-6  less than the rates paid for water supply and sewer services by
   15-7  residents of the political subdivision <and without regard to
   15-8  whether the economically distressed area is located in the
   15-9  boundaries of the political subdivision>.
  15-10        (c)  A political subdivision holding a certificate of
  15-11  convenience and necessity described by Section 13.242, that extends
  15-12  service to an economically distressed area outside the boundaries
  15-13  of the political subdivision, may not charge the residents of the
  15-14  area rates that exceed the lesser of:
  15-15              (1)  the cost of providing service to the area; or
  15-16              (2)  the rates charged other residents of the political
  15-17  subdivision plus 15 percent.
  15-18        SECTION 17.  Section 16.352, Water Code, is amended to read
  15-19  as follows:
  15-20        Sec. 16.352.  ENFORCEMENT OF RULES.  (a) A person who
  15-21  violates a rule adopted by a county or municipality pursuant to
  15-22  Section 16.343 of this code is subject to a civil penalty of not
  15-23  less than $1,000 <$50> nor more than $10,000 <$1,000> for each
  15-24  violation and for each day of a continuing violation but not in
  15-25  excess of $50,000 <$5,000> per day.
  15-26        (b)  A person commits an offense if the person knowingly or
  15-27  intentionally violates a rule adopted under this subchapter
  15-28  <pursuant to Section 16.343 of this code by a county or a
  15-29  municipality>.
  15-30        (c)  An offense under Subsection (b) of this section is a
  15-31  Class A <B> misdemeanor.
  15-32        (d)  Venue for prosecution of an offense under Subsection (b)
  15-33  is in a county in which any element of the offense is alleged to
  15-34  have occurred or in Travis County.
  15-35        SECTION 18.  Section 16.353, Water Code, is amended to read
  15-36  as follows:
  15-37        Sec. 16.353.  INJUNCTION.  In addition to other remedies, the
  15-38  attorney general or<,> the county or district attorney of the
  15-39  county in which the violation occurred is<, or other local
  15-40  officials are> authorized to apply to the district court for and
  15-41  the court in its discretion may grant the state or political
  15-42  subdivision, without bond or other undertaking, any injunction that
  15-43  the facts may warrant including temporary restraining orders,
  15-44  temporary injunctions after notice and hearing, and permanent
  15-45  injunctions enjoining a violation of the rules.
  15-46        SECTION 19.  Subchapter J, Chapter 16, Water Code, is amended
  15-47  by adding Section 16.356 to read as follows:
  15-48        Sec. 16.356.  VENUE.  A suit under this subchapter for
  15-49  injunctive relief or for the recovery of a civil penalty may be
  15-50  brought in a district court in:
  15-51              (1)  the county in which the defendant resides;
  15-52              (2)  the county in which the alleged violation or
  15-53  threat of violation occurs; or
  15-54              (3)  Travis County.
  15-55        SECTION 20.  Section 17.921(1), Water Code, is amended to
  15-56  read as follows:
  15-57              (1)  "Economically distressed area" means an area in
  15-58  which:
  15-59                    (A)  water supply or sewer services are
  15-60  inadequate to meet minimal needs of residential users as defined by
  15-61  board rules;
  15-62                    (B)  financial resources are inadequate to
  15-63  provide water supply or sewer services that will satisfy those
  15-64  needs; and
  15-65                    (C)  the percentage <80 percent> of the dwellings
  15-66  occupied on June 1, 1989, to be served by financial assistance
  15-67  under this subchapter was at least:
  15-68                          (i)  80 percent; or
  15-69                          (ii)  50 percent, if the services provided
  15-70  by financial assistance under this subchapter can be provided by
   16-1  common or regional facilities in a cost-effective manner in
   16-2  conjunction with service provided to an economically distressed
   16-3  area as determined under the other provisions of this subdivision
   16-4  <were occupied on June 1, 1989>.
   16-5        SECTION 21.  Section 17.933, Water Code, is amended by adding
   16-6  Subsection (g) to read as follows:
   16-7        (g)  The amount of financial assistance provided by the board
   16-8  to a political subdivision for service to areas defined in Section
   16-9  17.921(1)(C)(ii) for which repayment is not required is 50 percent
  16-10  of the state bond proceeds used for the design and construction of
  16-11  the service.
  16-12        SECTION 22.  Subchapter K, Chapter 17, Water Code, is amended
  16-13  by adding Section 17.936 to read as follows:
  16-14        Sec. 17.936.  RECOVERY OF ECONOMICALLY DISTRESSED AREA IMPACT
  16-15  FEES.  (a)  It is the intent of the legislature that a private
  16-16  developer not unduly benefit from the expenditure by the state of
  16-17  public funds on infrastructure for public benefit.
  16-18        (b)  In this section:
  16-19              (1)  "Capital improvement costs" includes:
  16-20                    (A)  the construction contract price;
  16-21                    (B)  surveying and engineering fees;
  16-22                    (C)  land acquisition costs, including land
  16-23  purchases, court awards and costs, attorney's fees, and expert
  16-24  witness fees;
  16-25                    (D)  fees actually paid or contracted to be paid
  16-26  to an independent, qualified engineer or financial consultant who
  16-27  is:
  16-28                          (i)  preparing or updating the capital
  16-29  improvements plan; and
  16-30                          (ii)  not an employee of the subdivision;
  16-31  and
  16-32                    (E)  projected interest charges and other finance
  16-33  costs that are used for the payment of principal and interest on
  16-34  bonds, notes, or other obligations issued by or on behalf of the
  16-35  political subdivision to finance the capital improvements plan and
  16-36  that are not used to reimburse bond funds expended for facilities
  16-37  that are not identified in the capital improvements plan of the
  16-38  subdivision.
  16-39              (2)  "Economically distressed areas program impact
  16-40  fees" means the pro rata share of the capital improvement costs
  16-41  attributable to each lot in an economically distressed area.
  16-42        (c)  This section applies only to property located in:
  16-43              (1)  the unincorporated area of an affected county, as
  16-44  defined by Section 16.341; and
  16-45              (2)  an economically distressed area, as defined by
  16-46  Section 16.341.
  16-47        (d)  The provider of water or wastewater utility service to
  16-48  an economically distressed area may recover from a developer or
  16-49  owner of an undeveloped lot economically distressed areas program
  16-50  impact fees as provided by rules adopted by the board.
  16-51        SECTION 23.  Section 26.001, Water Code, effective until
  16-52  delegation of NPDES permit authority, is amended by adding
  16-53  Subdivision (20) to read as follows:
  16-54              (20)  "Affected county" has the meaning assigned by
  16-55  Section 232.021, Local Government Code.
  16-56        SECTION 24.  Section 26.001, Water Code, effective upon
  16-57  delegation of NPDES permit authority, is amended by adding
  16-58  Subdivision (26) to read as follows:
  16-59              (26)  "Affected county" has the meaning assigned by
  16-60  Section 232.021, Local Government Code.
  16-61        SECTION 25.  Section 26.123, Water Code, effective until
  16-62  delegation of NPDES permit authority, is amended by adding
  16-63  Subsection (e) to read as follows:
  16-64        (e)  If the attorney general determines that a subdivider, as
  16-65  defined by Section 232.021, Local Government Code, of land in an
  16-66  affected county has violated or is threatening to violate a
  16-67  provision of this chapter, or a rule adopted by the commission
  16-68  under this chapter, the executive director on the request of the
  16-69  attorney general shall conduct an investigation of the alleged
  16-70  violation.  The executive director shall consult with the attorney
   17-1  general during the investigation to determine appropriate remedial
   17-2  action.
   17-3        SECTION 26.  Section 26.123, Water Code, effective upon
   17-4  delegation of NPDES permit authority, is amended by adding
   17-5  Subsection (j) to read as follows:
   17-6        (j)  If the attorney general determines that a subdivider, as
   17-7  defined by Section 232.021, Local Government Code, of land in an
   17-8  affected county has violated or is threatening to violate a
   17-9  provision of this chapter, or a rule adopted by the commission
  17-10  under this chapter, the executive director on the request of the
  17-11  attorney general shall conduct an investigation of the alleged
  17-12  violation.  The executive director shall consult with the attorney
  17-13  general during the investigation to determine appropriate remedial
  17-14  action.
  17-15        SECTION 27.  Section 26.124, Water Code, is amended by adding
  17-16  Subsection (c) to read as follows:
  17-17        (c)  If the attorney general determines that a violation of
  17-18  Section 26.121 or a rule adopted under that section has occurred or
  17-19  is about to occur in an affected county, the attorney general may
  17-20  institute a civil suit in district court for injunctive relief or
  17-21  civil penalties against the person who has or is about to commit a
  17-22  violation.
  17-23        SECTION 28.  Subchapter E, Chapter 2306, Government Code, is
  17-24  amended by adding Section 2306.0985 to read as follows:
  17-25        Sec. 2306.0985.  RECOVERY OF FUNDS FROM CERTAIN SUBDIVISIONS.
  17-26  (a)  It is the intent of the legislature that a private developer
  17-27  not unduly benefit from the expenditure by the state of public
  17-28  funds on infrastructure for public benefit.
  17-29        (b)  This section applies only to property located in:
  17-30              (1)  the unincorporated area of an affected county, as
  17-31  defined by Section 16.341, Water Code; and
  17-32              (2)  an economically distressed area, as defined by
  17-33  Section 16.341, Water Code.
  17-34        (c)  As a condition for the receipt of state funds, and to
  17-35  the extent permitted by law, federal funds, the department may
  17-36  require a political entity with authority to tax and place a lien
  17-37  on property to place a lien or assessment on property that benefits
  17-38  from the expenditure of state or federal funds for water,
  17-39  wastewater, or drainage improvements affecting the property.  The
  17-40  lien or assessment may not exceed an amount equal to the cost of
  17-41  making the improvements as those costs relate to the property.  The
  17-42  lien or assessment expires 10 years after the date the improvements
  17-43  are completed.
  17-44        (d)  If property subject to a lien or assessment under
  17-45  Subsection (c) is sold, the seller must pay to the political entity
  17-46  from the proceeds of the sale an amount equal to the value of the
  17-47  lien or assessment.  This subsection does not apply if:
  17-48              (1)  the reason for the sale is:
  17-49                    (A)  the disposition of the estate following the
  17-50  death of the owner of the property; or
  17-51                    (B)  the owner because of physical condition must
  17-52  reside in a continuous care facility and no longer resides on the
  17-53  property; or
  17-54              (2)  the owner of the property is a person of low or
  17-55  moderate income.
  17-56        (e)  If property subject to a lien or assessment under
  17-57  Subsection (c) is repossessed by the holder of a note or a contract
  17-58  for deed, the holder must pay to the political entity an amount
  17-59  equal to the value of the lien or assessment before taking
  17-60  possession of the property.
  17-61        (f)  Subject to rules adopted by the department, a political
  17-62  entity shall collect payments made under this section and remit the
  17-63  funds for deposit in the treasury to the credit of a special
  17-64  account in the general revenue fund that may be appropriated only
  17-65  to the department for use in administering a program under Section
  17-66  2306.098.
  17-67        (g)  After public notice and comment, the department shall
  17-68  adopt rules to administer this section.  The department may provide
  17-69  by rule for the reduction or waiver of a fee authorized by this
  17-70  section.
   18-1        SECTION 29.  The following sections of the Local Government
   18-2  Code are repealed: Sections 232.001(f), 232.0035, 232.0036,
   18-3  232.0046, 232.0047, and 232.0049.
   18-4        SECTION 30.  (a)  The changes in law made in Sections 4 and
   18-5  17 of this Act relating to criminal offenses apply only to an
   18-6  offense committed on or after the effective date of this Act.  For
   18-7  purposes of this subsection, an offense is committed before the
   18-8  effective date of this Act if any element of the offense occurs
   18-9  before that date.  An offense committed before the effective date
  18-10  of this Act is governed by the law in effect when the offense was
  18-11  committed, and the former law is continued in effect for this
  18-12  purpose.
  18-13        (b)  The changes in law made in Sections 4 and 17 of this Act
  18-14  relating to civil penalties apply only to a violation that occurs
  18-15  on or after the effective date of this Act.  For purposes of this
  18-16  subsection, a violation is committed before the effective date of
  18-17  this Act if any element of the violation occurs before that date.
  18-18  A violation committed before the effective date of this Act is
  18-19  governed by the law in effect when the violation occurred, and the
  18-20  former law is continued in effect for this purpose.
  18-21        SECTION 31.  This Act does not exempt the deliberations of a
  18-22  political subdivision from the requirements of Chapter 551,
  18-23  Government Code.
  18-24        SECTION 32.  The importance of this legislation and the
  18-25  crowded condition of the calendars in both houses create an
  18-26  emergency and an imperative public necessity that the
  18-27  constitutional rule requiring bills to be read on three several
  18-28  days in each house be suspended, and this rule is hereby suspended,
  18-29  and that this Act take effect and be in force from and after its
  18-30  passage, and it is so enacted.
  18-31                               * * * * *