By: Zaffirini S.B. No. 278
A BILL TO BE ENTITLED
AN ACT
1-1 relating to conferring authority on commissioners courts in
1-2 affected counties to regulate subdivisions in economically
1-3 distressed areas; imposing certain platting requirements and
1-4 service requirements on economically distressed subdivisions;
1-5 imposing changes affecting certain local tax authorities by
1-6 conferring authority on affected counties to create economically
1-7 distressed area tax increment zones and conferring authority on
1-8 counties to offer certain ad valorem tax abatements, conferring
1-9 authority to issue bonds and create public debt; and imposing civil
1-10 and criminal penalties.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 ARTICLE I.
1-13 SECTION 1. (a) The following sections of Chapter 232, Local
1-14 Government Code, are renumbered: Section 232.0035 of the code is
1-15 Section 232.027; Section 232.0036 of the code is Section 232.030;
1-16 Section 232.0046 of the code is Section 232.033; Section 232.047 of
1-17 the code is Section 232.034; and Section 232.0049 of the code is
1-18 Section 232.039.
1-19 (b) Sections 232.001 through Section 232.010 of the code
1-20 comprise Subchapter A of Chapter 232, whose heading is to read as
1-21 follows:
1-22 SUBCHAPTER A. SUBDIVISIONS GENERALLY.
1-23 SECTION 2. Chapter 232, Local Government Code, is amended by
2-1 the addition of Subchapter B to read as follows:
2-2 SUBCHAPTER B. SUBDIVISION PLATTING REQUIREMENTS: ELIGIBLE
2-3 COUNTIES PLATTING REQUIREMENTS.
2-4 Sec. 232.021. LEGISLATIVE FINDINGS. The legislature finds
2-5 that:
2-6 (1) economically distressed subdivisions (commonly
2-7 called "colonias") are found throughout the affected counties;
2-8 (2) in recent years, the number of people living in
2-9 these economically distressed subdivisions in the affected counties
2-10 has increased;
2-11 (3) due to the implementation of NAFTA, GATT, other
2-12 economic incentives, and the increasingly robust economic
2-13 development along the Texas-Mexico border, the population in
2-14 economically distressed subdivisions in the affected counties will
2-15 continue to increase;
2-16 (4) the residents of the economically distressed
2-17 subdivisions in the affected counties constitute an unusually
2-18 mobile population, moving to all parts of the state and beyond to
2-19 seek employment;
2-20 (5) these conditions allow unscrupulous individuals,
2-21 through the use of executory contracts, to take advantage of the
2-22 residents of economically distressed subdivisions by charging
2-23 usurious rates of interest as well as allowing unbridled discretion
2-24 to evict;
2-25 (6) the vast majority of housing units in these
3-1 economically distressed subdivisions lack of adequate potable water
3-2 supply and concomitant waste water or sewer services;
3-3 (7) the lack of an adequate potable water supply and
3-4 concomitant waste water or sewer services creates a serious and
3-5 unacceptable health hazard from third world illnesses for the
3-6 residents of the economically distressed subdivisions in the
3-7 affected counties;
3-8 (8) many of the housing units in these economically
3-9 distressed subdivisions are located in isolated rural segments in
3-10 the affected counties where the land is inexpensive, located in
3-11 floodplains, and subject to flooding after rains, leading to the
3-12 overflow of pit privies and thus to the spreading of bacteria onto
3-13 the land and into the water table;
3-14 (9) the location, proliferation, and conditions in
3-15 these economically distressed subdivisions pose a clear and
3-16 substantial threat to the environment of the border region, as well
3-17 as to all Texas;
3-18 (10) the lack of an adequate potable water supply and
3-19 concomitant waste water or sewer services, coupled with the
3-20 location of these subdivisions erodes the economic stability of the
3-21 affected counties, which are dependent upon a healthy public and a
3-22 safe environment;
3-23 (11) the lack of an adequate potable water supply and
3-24 concomitant waste water or sewer services erodes the economic
3-25 stability of the affected counties, which is required for the
4-1 mutual development of trade, transportation, and commerce that
4-2 affects, not only the border region, but all regions of the state
4-3 where the trade, transportation, and commerce reach;
4-4 (12) the health risk created along the border in the
4-5 affected counties, the expected increase in population during the
4-6 next decade, and the mobility of the residents of these
4-7 economically distressed subdivisions, coupled with the fact that
4-8 the trade, transportation, and commerce along the border is the
4-9 most intense in the United States, creates the very substantial
4-10 risk of third world epidemics spreading to the residents of this
4-11 state and beyond;
4-12 (13) unless adequate remedial steps are taken
4-13 immediately to alleviate the health risks to all Texans that are
4-14 caused by the lack of basic services in the affected counties, the
4-15 costs of containing an epidemic will be astronomical; and
4-16 (14) the need to address this public health and safety
4-17 hazard is a compelling crisis that must be addressed through this
4-18 legislation.
4-19 Sec. 232.022. SHORT TITLE. This act may be cited as the
4-20 Distressed Areas Subdivision Act.
4-21 Sec. 232.023. APPLICABILITY. (a) This subchapter applies
4-22 to all real property within the jurisdiction of an affected county.
4-23 (b) For purposes of this section, land is considered to be
4-24 within the jurisdiction of a county if the land is located in the
4-25 county and outside the corporate limits of a municipality, as
5-1 determined under Chapter 42 of this code.
5-2 Sec. 232.024. DEFINITIONS: In this subchapter:
5-3 (1) "Affected county" means a county:
5-4 (A) that has a per capita income that averaged
5-5 25 percent below the state average for the most recent three
5-6 consecutive years for which statistics are available and an
5-7 unemployment rate that averaged 25 percent above the state average
5-8 for the most recent three consecutive years for which statistics
5-9 are available; or
5-10 (B) that is adjacent to an international border.
5-11 (2) "Division" means to subdivide.
5-12 (3) "Economically distressed subdivision" or
5-13 economically distressed subdivisions" mean a subdivision or any
5-14 portion of any subdivision located within a county that is eligible
5-15 for assistance under Subchapter K, Chapter 17, Water Code, which
5-16 subdivision:
5-17 (a) meets the criteria of an economically
5-18 distressed subdivision, defined by the Texas Water Development
5-19 Board; or
5-20 (b) does not have approved public water and
5-21 water services to all lots within that subdivision; or
5-22 (c) does not meet all minimum platting
5-23 requirements applicable to such subdivision pursuant to Title 7,
5-24 Local Government Code.
5-25 (4) "Eligible county" means a county that is
6-1 contiguous to an international border, or a county in which a
6-2 political subdivision has received financial assistance through
6-3 Subchapter K, Chapter 17, Water Code.
6-4 (5) "Floodplain" means any area susceptible to being
6-5 inundated by water from any source and which is identified by the
6-6 Federal Emergency Management Agency pursuant to the National Flood
6-7 Insurance Act of 1968 (42 U.S.C. Sections 4001 through 4127).
6-8 (6) "Land" means real property.
6-9 (7) "Lease" means to lease, or offer to lease, land.
6-10 (8) "Minimum state standards" means the minimum
6-11 standard set out for adequate drinking water in Section
6-12 16.343(b)(1), Water Code, or for the minimum standards set out for
6-13 adequate sewer facilities and treatment of solid waste in Chapters
6-14 361 and 364, Health and Safety Code.
6-15 (9) "Parcel" means any parcel of land not dedicated
6-16 for public or common use.
6-17 (10) "Plat" means a map, chart, survey, plan or replat
6-18 certified by a licensed, registered land surveyor or engineer
6-19 containing a description of the subdivided land with ties to
6-20 permanent landmarks or monuments.
6-21 (11) "Person" means an individual, corporation,
6-22 partnership, or association.
6-23 (12) "Sell" means to sell, or offer to sell, land.
6-24 (13) "Subdivide" means to divide the surface area of
6-25 land into lots or parcels.
7-1 (14) "Subdivider" means any developer or person
7-2 creating or who has created a subdivision, individually or as part
7-3 of a common promotional plan, or any person engaged in the sale or
7-4 lease of subdivided land that is being sold or in the ordinary
7-5 course of business.
7-6 (15) "Subdivision" means an area of land within an
7-7 affected county, the surface of which has been divided by a
7-8 subdivider for sale or lease.
7-9 Sec. 232.025. PLAT REQUIRED. (a) The owner of a tract of
7-10 land located outside the corporate city limits of a municipality
7-11 who divides the tract into two or more parts to lay out lots,
7-12 suburban lots, or building lots must have a plat of the subdivision
7-13 prepared. A division of a tract under this subsection includes a
7-14 division of real property by any method of conveyance, including,
7-15 but not limited to contract for deeds, contract of sale, or other
7-16 types executory contracts. Regardless of whether the division is
7-17 made by using a metes and bounds description in a deed of
7-18 conveyance, a contract for deed, a contract of sale, or other
7-19 executory contract to convey, or any other conveyance or
7-20 instrument.
7-21 (b) To be recorded, the plat must:
7-22 (1) describe the subdivision by metes and bounds;
7-23 (2) locate the subdivision with respect to an original
7-24 corner of the original survey of which it is a part;
7-25 (3) state the dimensions of the subdivision and of
8-1 each lot, street, alley, square, park, or other part of the tract
8-2 intended to be dedicated to public use or for the use of purchasers
8-3 or owners of lots fronting on or adjacent to the street, alley,
8-4 square, park, or other part;
8-5 (4) include the topography of the area;
8-6 (5) identify any area within the subdivision that is
8-7 within a floodplain; and
8-8 (6) meet the requirements of Section 232.028 of this
8-9 code.
8-10 (c) The owner or proprietor of the tract must acknowledge
8-11 the plat by signing the plat and attached documents described in
8-12 232.028 and attest to the veracity and completeness of the matters
8-13 asserted in the attached documents and in the plat.
8-14 (d) The plat must be filed and recorded with the county
8-15 clerk of the county in which the tract is located.
8-16 Sec. 232.026. FILING WITH THE COUNTY CLERK. The plat is
8-17 subject to the filing and recording provisions of Section 12.002,
8-18 Property Code.
8-19 Sec. 232.027. APPROVAL BY COUNTY REQUIRED. (a) The
8-20 commissioners court of the county in which the land is located must
8-21 approve, by an order entered in the minutes of the court, a plat
8-22 required by Section 232.001 of this code. The commissioners court
8-23 shall refuse to approve a plat if it does not meet the requirements
8-24 prescribed by or under this chapter or if any bond required under
8-25 this chapter is not filed with the county clerk.
9-1 (b) The commissioners court shall not approve a plat unless
9-2 the plat and other documents have been prepared as required by
9-3 Section 232.029 of this code.
9-4 (c) The commissioners court shall not approve a plat which
9-5 is intended for residential housing which lies within a floodplain.
9-6 Sec. 232.028. SUBDIVISION REQUIREMENTS. By an order adopted
9-7 and entered in the minutes of the commissioners court, and after a
9-8 notice is published in English or Spanish in a newspaper of general
9-9 circulation in the county, the commissioners court shall:
9-10 (1) require a right-of-way on a street or road that
9-11 functions as a main artery in a subdivision, of a width of not less
9-12 than 50 feet or not more than 100 feet;
9-13 (2) require a right-of-way on any other street or road
9-14 in a subdivision of not less than 40 feet or more than 70 feet;
9-15 (3) require that the shoulder-to-shoulder width on
9-16 collectors or main arteries within the right-of-way be not less
9-17 than 32 feet or more than 56 feet, and that the
9-18 shoulder-to-shoulder width on any other street or road be not less
9-19 than 25 feet or more than 35 feet;
9-20 (4) adopt, based on the amount and kind of travel over
9-21 each street or road in a subdivision, reasonable specifications
9-22 relating to the construction of each street or road;
9-23 (5) adopt reasonable specifications to provide
9-24 adequate drainage for each street or road in a subdivision in
9-25 accordance with standard engineering practices;
10-1 (6) require that each purchase contract made between a
10-2 subdivider and a purchaser of land in the subdivision contain a
10-3 statement describing how and when water, sewer, service,
10-4 electricity, and gas will be made available to the subdivision; and
10-5 (7) require that the owner of the tract to be
10-6 subdivided execute a good and sufficient bond in the manner
10-7 provided by Section 232.004 of this code.
10-8 Sec. 232.029. SUBDIVISION DESCRIPTION. Any person desiring
10-9 to subdivide land shall have a plat of the proposed subdivision
10-10 certified by a registered, licensed surveyor. The plat shall meet
10-11 the following requirements:
10-12 (1) The plat shall define the subdivision and all
10-13 roads by metes and bounds;
10-14 (2) The plat shall accurately describe each parcel,
10-15 number each parcel in progression, give its dimensions and the
10-16 dimensions of all land dedicated for public use or for the use of
10-17 the owners of parcels fronting or adjacent to the land;
10-18 (3) The plat shall include on the plat or have
10-19 attached to the plat a document containing a description in English
10-20 and Spanish of the water and sewer facilities, roadways and
10-21 easement dedicated for the provision of water and sewer facilities,
10-22 that will be constructed or installed to service the subdivision
10-23 and a statement specifying the date by which the facilities will be
10-24 fully operable;
10-25 (4) The plat shall have attached a document prepared
11-1 by an engineer registered to practice in this state certifying that
11-2 the water and sewer service facilities described by the plat or the
11-3 document attached to the plat are in compliance with the model
11-4 rules adopted under Section 16.343, Water Code, and a certified
11-5 estimate of the cost to install water and sewer service facilities;
11-6 (5) The plat shall include a description of the
11-7 drainage pattern such that drainage is designed so as to avoid
11-8 concentration of storm drainage water from each lot to adjacent
11-9 lots;
11-10 (6) The lots shall be laid out so as to provide
11-11 positive drainage away from all buildings and individual lot
11-12 drainage shall be coordinated with the general storm drainage
11-13 pattern for the area;
11-14 (7) The plat shall include a certification by an
11-15 engineer that the lot or subdivision is not within a floodplain;
11-16 and
11-17 (8) The plat shall also include certification that the
11-18 water quality and connections to the lots meet, or will meet, the
11-19 minimum state standards; sewer connections to the lots or septic
11-20 tanks meet, or will meet, the requirements of state standards,
11-21 electrical connections to the lot meet, or will meet, the minimum
11-22 state standards, and gas connections to the lot meet, or will meet,
11-23 the minimum requirements under state law.
11-24 Sec. 232.030. WATER AND SEWER SERVICE EXTENSION. (a) The
11-25 commissioners court of the county may extend, beyond the date
12-1 specified on the plat or on the document attached to the plat, the
12-2 date by which the water and sewer service facilities must be fully
12-3 operable if the court finds the extension is reasonable and not
12-4 contrary to the public interest.
12-5 (b) The court may not grant an extension if it would allow a
12-6 residence in the subdivision to be inhabited without water or sewer
12-7 services such an attempted extension is not reasonable and contrary
12-8 to the public interest and the intent of this legislation;
12-9 (c) If the commissioners court provides any extensions, the
12-10 commissioners court shall notify the executive administrator of the
12-11 Texas Water Development Board and the attorney general of the
12-12 extension and the reason for the extension;
12-13 (d) If the facilities are fully operable and meet all
12-14 minimum state requirements before the date specified in Section
12-15 232.028(c) of this code, the facilities are considered to have been
12-16 made fully operable in a timely manner.
12-17 Sec. 232.031. BOND REQUIREMENTS. Unless a person has
12-18 completed the installation of all water and sewer service
12-19 facilities required by Section 232.028 of this code on the date
12-20 that person applies for approval of a plat pursuant to Section
12-21 232.002 of this code, the commissioners court of an affected county
12-22 shall require the owner of the tract to execute a bond. The owner
12-23 must do so before subdividing the tract. The bond shall:
12-24 (1) be payable to the county judge of the county;
12-25 (2) be in an amount adequate to ensure the proper
13-1 construction or installation of the water and sewer service
13-2 facilities to service the subdivision but not to exceed the
13-3 estimated cost of the construction or installation of the
13-4 facilities;
13-5 (3) be executed with sureties as may be approved by
13-6 the court;
13-7 (4) be executed by a company authorized to do business
13-8 as a surety in this state if the court requires a surety bond
13-9 executed by a corporate surety; and
13-10 (5) be conditioned that the water and sewer service
13-11 facilities will be constructed or installed:
13-12 (A) in compliance with the model rules adopted
13-13 under Section 16.343, Water Code; and
13-14 (B) within the time stated on the plat or on the
13-15 document attached to the plat for the subdivision or within any
13-16 extension of that time.
13-17 Sec. 232.032. CERTIFICATION REGARDING COMPLIANCE WITH PLAT
13-18 REQUIREMENTS IN CERTAIN COUNTIES. (a) On the approval of a plat
13-19 by the commissioners court, the court shall issue to the person
13-20 applying for the approval a certificate stating that the plat has
13-21 been reviewed and approved by the court.
13-22 (b) On the written request of an owner of land or an entity
13-23 that provides a utility service, the court shall make the following
13-24 determinations regarding the owner's land or the land in which the
13-25 entity or court is interested that is located within the
14-1 jurisdiction of the county:
14-2 (1) whether a plat has been prepared and whether it
14-3 has been reviewed and approved by the court;
14-4 (2) whether water and sewer service facilities have
14-5 been constructed or installed to service the subdivision pursuant
14-6 to Sections 232.028 and 232.029 of this code; and
14-7 (3) whether electrical and gas facilities have been
14-8 constructed or installed to service the subdivision pursuant to
14-9 Sections 232.028 and 232.029 of this code.
14-10 (c) The request made under Subsection (b) must identify the
14-11 land by metes and bounds that is the subject of the request.
14-12 (d) Whenever a request is made pursuant to Subsection (b),
14-13 the court shall issue the requesting party a written certification
14-14 of its determination and whether water and sewer facility service
14-15 has been constructed and installed, and whether electrical and gas
14-16 facilities have been instructed and installed.
14-17 (e) The commissioners court shall make its determination
14-18 within 20 days after the date it receives the request under
14-19 Subsection (b) and shall issue the certificate, if appropriate,
14-20 within 10 days after the date the determination is made.
14-21 (f) The commissioners court may adopt rules it considers
14-22 necessary to administer its duties under this section.
14-23 Sec. 232.033. CONNECTION OF UTILITIES. (a) Except as
14-24 provided in Section 232.038(b) of this code, an entity may not
14-25 serve or connect any land with water, sewer, electricity, gas, or
15-1 other utility service unless the entity has been presented with or
15-2 otherwise holds a certificate prepared by the commissioners court
15-3 in accordance with Section 232.032 of this code evidencing that a
15-4 plat has been prepared and that the plat meets the requirements of
15-5 Section 232.029.
15-6 (b) Except as provided in Section 232.038(b) of this code,
15-7 an entity may not serve or connect any land with water,
15-8 electricity, gas or other utility service unless the entity has
15-9 been presented with or otherwise holds a certificate prepared by
15-10 the commissioners court in accordance with Section 232.032 of this
15-11 code evidencing that sewer service facilities have been installed
15-12 or constructed and that the sewer services meet the minimum
15-13 requirements of state standards.
15-14 (c) Except as provided in Section 232.038(b) of this code,
15-15 an entity may not serve or connect any land with electricity, gas
15-16 or other utility service unless the entity has been presented with
15-17 or otherwise holds a certificate prepared by the commissioners
15-18 court in accordance with Section 232.032 of this code evidencing
15-19 that water and sewer service facilities have been installed or
15-20 constructed and that the water and sewer facilities meet minimum
15-21 state standards.
15-22 Sec. 232.034. CONFLICT OF INTEREST; PENALTY. (a) In this
15-23 section, "subdivided tract" means a tract of land, as a whole, that
15-24 is subdivided into tracts or lots. The term does not mean an
15-25 individual lot in a subdivided tract of land.
16-1 (b) A person has a conflict of interest in a subdivided
16-2 tract if the person:
16-3 (1) has an equitable or legal ownership interest in
16-4 the tract;
16-5 (2) acts as a developer of the tract;
16-6 (3) owns voting stock or shares of a business entity
16-7 that:
16-8 (A) has an equitable or legal ownership interest
16-9 in the tract; or
16-10 (B) acts as a developer of the tract; or
16-11 (4) receives in a calendar year money of any thing or
16-12 value from a business entity described by Subdivision (3).
16-13 (c) A person also is considered to have a conflict of
16-14 interest in a subdivided tract if the person is related in the
16-15 first degree by consanguinity or affinity, as determined under
16-16 Chapter 573, Government Code, to a person who, under Subsection
16-17 (b), has a conflict of interest in the tract.
16-18 (d) If a member of the commissioners court of a county has a
16-19 conflict of interest in a subdivided tract, the member shall file,
16-20 before a vote or decision regarding the approval of a plat for the
16-21 tract, an affidavit with the county clerk stating the nature and
16-22 extent of the interest and shall abstain from further participation
16-23 in the matter.
16-24 (e) A member of the commissioners court of a county commits
16-25 an offense if the member violates Subsection (d). An offense under
17-1 this subsection is a Class A misdemeanor.
17-2 (f) The finding by a court of a violation of this section
17-3 does not render voidable an action of the commissioners court
17-4 unless the measure would not have passed the commissioners court
17-5 but for the vote of the member who violated this section.
17-6 Sec. 232.035. CIVIL PENALTIES. (a) A person may not cause,
17-7 suffer, allow, or permit a residence in a subdivision in an
17-8 affected county to be inhabited without water service, sewer
17-9 service, and gas service or electrical service.
17-10 (b) A person who fails to provide, in the time and manner
17-11 described in the plat, for the construction or installation of
17-12 water or sewer service facilities described on the plat or on the
17-13 document attached to the plat or who otherwise violates Section
17-14 232.029 or 232.032 of this code or a rule or requirement adopted by
17-15 the commissioners court under this chapter is subject to a civil
17-16 penalty of not less than $500 nor more than $1,000 for each
17-17 violation and for each day of a continuing violation but not to
17-18 exceed $5,000 each day and shall also pay court costs,
17-19 investigative costs, and attorney's fees.
17-20 (c) A person who violates subsection (a) of this section is
17-21 subject to a civil penalty of not less than $10,000 nor more than
17-22 $15,000 for each lot conveyed.
17-23 Sec. 232.036. VENUE. Venue for an action under this chapter
17-24 is in Travis County District Court, the county in which the
17-25 defendant resides, or in the county in which the violation or
18-1 threat of violation occurs.
18-2 Sec. 232.037. CRIMINAL PENALTIES. (a) An owner of a tract
18-3 of land commits an offense if the owner knowingly or intentionally
18-4 fails to timely provide for the construction or installation of
18-5 water and sewer service, electrical or gas service that the person
18-6 described on a plat or on a document attached to a plat, as
18-7 required by Section 232.028 of this code. An offense under this
18-8 subsection is a Class A misdemeanor.
18-9 (b) A person who commits an offense under subsection (a) of
18-10 this section causes five or more residences to be inhabited, the
18-11 person is subject to a felony in the third degree.
18-12 (c) Venue for prosecution for a violation under this section
18-13 is in the county in which the violation is alleged to have occurred
18-14 or in Travis County.
18-15 Sec. 232.038. ENFORCEMENT. (a) The attorney general, or
18-16 the district attorney, criminal district attorney, county attorney
18-17 with felony responsibilities, or county attorney of an affected
18-18 county, at the request of the attorney general, may take any action
18-19 necessary in a court of competent jurisdiction on behalf of the
18-20 state or on behalf of residents to:
18-21 (1) enjoin the violation or threatened violation of
18-22 the model rules adopted under Section 16.343, Water Code;
18-23 (2) enjoin the violation or threatened violation of a
18-24 requirement adopted by the commissioners court under this chapter;
18-25 (3) recover as damages payable to the attorney in an
19-1 amount adequate for the county to undertake the construction or
19-2 other activity necessary to bring about compliance with a
19-3 requirement of this Subchapter or rule adopted by the commissioners
19-4 court under this chapter; and
19-5 (4) assess and recover civil or criminal penalties,
19-6 attorney's fees, litigation costs, and investigation costs; and
19-7 (5) may file an action to require replatting pursuant
19-8 to Section 232.042 of this code.
19-9 (b) During the pendency of any enforcement action brought,
19-10 any resident of the affected subdivision may file a motion against
19-11 the provider of utilities to halt termination of pre-existing
19-12 utility services; these services may not be terminated, if the
19-13 court makes an affirmative finding after hearing said motion that
19-14 termination poses a threat to public health, safety, or welfare of
19-15 the residents.
19-16 Sec. 232.039. WAIVER OF GOVERNMENTAL IMMUNITY; PERMISSION TO
19-17 SUE. (a) Sovereign immunity to suit is waived and abolished to
19-18 the extent of liability created by this subchapter.
19-19 (b) Any person may commence a civil action on his own behalf
19-20 against any person or county commissioner who is alleged to be in
19-21 violation of the provisions of this subchapter.
19-22 Sec. 232.040. CANCELLATION OF SUBDIVISION. (a) A person
19-23 owning real property in this state that has been subdivided into
19-24 lots and blocks or into a subdivision may apply to the
19-25 commissioners court of the county in which the property is located
20-1 for permission to cancel all or part of the subdivision, including
20-2 a dedicated easement or roadway, to reestablish the property as
20-3 acreage tracts as it existed before the subdivision. If, on the
20-4 application, it is shown that the cancellation of all or part of
20-5 the subdivision does not interfere with the established rights of
20-6 any purchaser who owns any part of the subdivision, or it is shown
20-7 that the affected purchaser agrees to the cancellation, the
20-8 commissioners court by order shall authorize the owner of the
20-9 subdivision to file an instrument canceling the subdivision in
20-10 whole or in part. The instrument must describe the subdivision or
20-11 the part of it that is canceled and shall include copies of the
20-12 original materials subdividing the property. The court shall enter
20-13 the order in its minutes and publish the order in English and
20-14 Spanish in a newspaper of general circulation in the county. After
20-15 the cancellation instrument is filed and recorded in the deed
20-16 records of the county, the county tax assessor-collector shall
20-17 assess the property as if it had never been subdivided.
20-18 (b) The commissioners court shall publish notice of an
20-19 application for cancellation. The notice must be published in a
20-20 newspaper, published in English and Spanish, in the county for at
20-21 least three weeks before the date on which action is taken on the
20-22 application. The court shall take action on an application at a
20-23 regular term. The published notice must direct any person who is
20-24 interested in the property and who wishes to protest the proposed
20-25 cancellation to appear at the time specified in the notice.
21-1 (c) If delinquent taxes are owed on the subdivided tract for
21-2 any preceding year, and if the application to cancel the
21-3 subdivision is granted as provided by this section, the owner of
21-4 the tract may pay the delinquent taxes on an acreage basis as if
21-5 the tract had not been subdivided. For the purpose of assessing
21-6 the tract for a preceding year, the county tax assessor-collector
21-7 shall back assess the tract on an acreage basis.
21-8 (d) On application for cancellation of a subdivision or any
21-9 phase or identifiable part of a subdivision, including a dedicated
21-10 easement or roadway, by the owners of 75 percent of the property
21-11 included in the subdivision, phase, or identifiable part, the
21-12 commissioners court by order shall authorize the cancellation in
21-13 the manner and after notice and a hearing as provided by Subsection
21-14 (b) and (c). However, if the owners of at least 10 percent of the
21-15 property affected by the proposed cancellation file written
21-16 objections to the cancellation with the court, the grant of an
21-17 order of cancellation is at the discretion of the court.
21-18 (e) To maintain an action to enjoin the cancellation or
21-19 closing of a roadway or easement in a subdivision, a person must
21-20 own a lot or have an interest in part of the subdivision that:
21-21 (1) abuts directly on the part of the roadway or
21-22 easement to be canceled or closed; or
21-23 (2) is connected by the part of the roadway or
21-24 easement to be canceled or closed, by the most direct feasible
21-25 route, to:
22-1 (A) the nearest remaining public highway, county
22-2 road, or access road to the public highway or county road; or
22-3 (B) any uncanceled common amenity of the
22-4 subdivision.
22-5 (f) A person who appears before the commissioners court to
22-6 protest the cancellation of all or part of a subdivision may
22-7 maintain an action for damages against the person applying for the
22-8 cancellation and may recover as damages an amount not to exceed an
22-9 amount equal to the sum of the total payments made under the
22-10 contract toward the purchase price in the canceled subdivision or
22-11 part of the subdivision. The person must bring the action within
22-12 one year after the date of the entry of the commissioners court's
22-13 order granting the cancellation.
22-14 Sec. 232.041. REVISION OF PLAT. (a) A person who has
22-15 subdivided land that is subject to the subdivision controls of the
22-16 county in which the land is located may apply in writing to the
22-17 commissioners court of the county for permission to revise the
22-18 subdivision plat filed for record with the county clerk.
22-19 (b) After the application is filed with the commissioners
22-20 court, the court shall publish a notice in English and in Spanish
22-21 of the application in a newspaper of general circulation in the
22-22 county. The notice must include a statement of the time and place
22-23 at which the court will meet to consider the application and to
22-24 hear protests to the revision of the plat. The notice must be
22-25 published at least three times during the period that begins on the
23-1 30th day and ends on the seventh day before the date of the
23-2 meeting. If all or part of the subdivided tract has been sold to
23-3 nondeveloper owners or residents, the court shall also give notice
23-4 to each of those individuals by certified or registered mail,
23-5 return receipt requested, at the address of the resident or
23-6 residents in the subdivided tract.
23-7 (c) During a regular term of the commissioners court, the
23-8 court shall adopt an order to permit the revision of the
23-9 subdivision plat if it is shown to the court that:
23-10 (1) the revision will not interfere with the
23-11 established rights of any nondeveloper owner or resident of a part
23-12 of the subdivided land; or
23-13 (2) each nondeveloper owner or resident whose rights
23-14 may be interfered with has agreed to the revision.
23-15 (d) If the commissioners court permits a person to revise a
23-16 subdivision plat, the person may make the revision by filing for
23-17 record with the county clerk a revised plat or part of a plat that
23-18 indicates the changes made to the original plat.
23-19 Sec. 232.042. REPLATTING. (a) A subdivision plat must
23-20 accurately reflect the subdivision as it develops. Any change,
23-21 either by the intentional act of the developer or by the forces of
23-22 nature, including, but not limited to changes in the size or
23-23 dimension of lots or the direction or condition of the roads, must
23-24 be recorded in a new plat in accordance with Section 232.001 of
23-25 this code.
24-1 (b) If a subdivision does not have conforming water and
24-2 wastewater and other utilities and thus presents a substantial
24-3 endangerment to the public health and safety or to the environment,
24-4 the subdivision must be replatted in accordance with Section
24-5 232.001 of this code.
24-6 (c) The division of property that has never been platted
24-7 must be platted in accordance with Section 232.001 of this code.
24-8 (d) An undeveloped plat or partially undeveloped plat must
24-9 be replatted.
24-10 (1) The plat shall be considered to be entirely or
24-11 partially undeveloped if said plat has been recorded with the
24-12 county clerk's office prior to 1989 and there are still one or more
24-13 lots available for sale; or
24-14 (2) If all of the lots have been sold, the lots for
24-15 which there have not been a transfer of title constitute a
24-16 partially developed plat.
24-17 SECTION 3. Chapter 232, Local Government Code, is amended by
24-18 the addition of Subchapter C to read as follows:
24-19 SUBCHAPTER C. SUBDIVISION REQUIREMENTS IN AFFECTED COUNTIES;
24-20 ADDITIONAL REQUIREMENTS.
24-21 Sec. 232.061. SHORT TITLE. This subchapter may be called
24-22 the Distressed Areas Land Sales Act.
24-23 Sec. 232.062. APPLICABILITY OF SUBCHAPTER. (a) This
24-24 subchapter applies to all real property within the jurisdiction of
24-25 an affected county.
25-1 (b) For purposes of this section, land is considered to be
25-2 within the jurisdiction of a county if the land is located in the
25-3 county and outside the corporate limits of a municipality, as
25-4 determined under Chapter 42 of this code.
25-5 Sec. 232.063. DEFINITIONS. In the State Land Sales Act:
25-6 (1) "Executive administrator" means the executive
25-7 administrator of the Texas Water Development Board.
25-8 (2) "Division" means to subdivide.
25-9 (3) "Eligible county" means a county that is
25-10 contiguous to an international border, or a county in which a
25-11 political subdivision has received financial assistance through
25-12 Subchapter K, Chapter 17, Water Code.
25-13 (4) "Floodplain" means any area susceptible to being
25-14 inundated by water from any source and which is identified by the
25-15 Federal Emergency Management Agency pursuant to the National Flood
25-16 Insurance Act of 1968 (42 U.S.C. Sections 4001 through 4127).
25-17 (5) "Land" means real property;
25-18 (6) "Lease" means to lease, or offer to lease, land;
25-19 (7) "Parcel" means any parcel of land not dedicated
25-20 for public or common use.
25-21 (8) "Plat" means a map, chart, survey, plan or replat
25-22 certified by a licensed, registered land surveyor or engineer
25-23 containing a description of the subdivided lands.
25-24 (9) "Person" means any individual, corporation,
25-25 organization, business trust, partnership, association or any other
26-1 legal entity.
26-2 (10) "Sell" means to sell, offer to sell, land.
26-3 (11) "Subdivide" means to divide the surface area of
26-4 land into a subdivision;
26-5 (12) "Subdivider" means any developer or person
26-6 creating or who has created a subdivision, individually or as part
26-7 of a common promotional plan or any person engaged in the sale or
26-8 lease of subdivided land which is being sold or leased in the
26-9 ordinary course of business.
26-10 (13) "Subdivision" means an area of land within an
26-11 affected county, the surface of which has been divided by a
26-12 subdivider for the purpose of sale or lease.
26-13 (14) "Common Promotional Plan" means any plan or
26-14 scheme of operation, undertaken by a single subdivider or a group
26-15 of subdividers acting in concert, either individually or through an
26-16 agent, to offer for sale or lease, parcels of land where such land
26-17 is either contiguous, or part of the same area of land, or is
26-18 known, designated or advertised as a common unit or by a common
26-19 name.
26-20 Sec. 232.064. ADVERTISING STANDARDS. Brochures,
26-21 publications and advertising of any form relating to subdivided
26-22 land shall:
26-23 (1) not contain any misrepresentations;
26-24 (2) if illustrations of the subdivision are used,
26-25 accurately portray the subdivision in its present state.
27-1 (3) not contain maps unless accurately drawn to scale
27-2 and the scale is indicated; and
27-3 (4) accurately describe the availability of water and
27-4 sewer service facilities, electric and gas utilities.
27-5 Sec. 232.065. FRAUD. Any officer, partner, agent or
27-6 employee of any firm or corporation, or any other person who
27-7 knowingly authorizes or assists in the publication, advertising,
27-8 distribution or circulation of any false statement or
27-9 representation concerning any subdivided land offered for sale or
27-10 lease, and any person, firm, corporation, or partner who, with
27-11 knowledge that any written statement relating to the subdivided
27-12 land is false or fraudulent, issues, circulates, publishes or
27-13 distributes that statement in this state, is guilty of a felony in
27-14 the third degree.
27-15 Sec. 232.066. REQUIREMENTS PRIOR TO SALE OR LEASE. (a) It
27-16 is unlawful to sell or lease land from within a subdivision unless
27-17 the subdivision plat is approved by the commissioners court in
27-18 accordance with Section 232.002, Local Government Code.
27-19 (b) It is unlawful to sell or lease land in a subdivision
27-20 until the subdivider has furnished the commissioners court and
27-21 filed with the county clerk a copy of the sales contracts, leases
27-22 and any other document that will convey an interest in the
27-23 subdivided land.
27-24 Sec. 232.067. SUBDIVISION REGULATION; COUNTY AUTHORITY.
27-25 (a) The commissioners court for each county shall regulate
28-1 subdivisions within the county's boundaries. In regulating
28-2 subdivisions, the commissioners court of each county shall adopt
28-3 and enforce the model rules developed pursuant to Section 16.343,
28-4 Water Code.
28-5 (b) Except as provided in Section 16.350(d), Water Code, the
28-6 commissioners court may not grant a variance or promulgate
28-7 regulations which waive or void any requirements of this or any
28-8 other act or law.
28-9 (c) The commissioners court shall adopt regulations setting
28-10 forth requirements for:
28-11 (1) potable water sufficient in quality and quantity
28-12 to meet minimum state standards;
28-13 (2) solid waste disposal meeting minimum state
28-14 standards and rules promulgated by the county pursuant to Chapter
28-15 364, Health and Safety Code;
28-16 (3) sufficient and adequate roads that satisfy the
28-17 standards adopted by the county;
28-18 (4) sewer facilities meeting minimum state standards;
28-19 (5) electric service and gas service; and
28-20 (6) standards for flood management meeting the minimum
28-21 standards set forth by the Federal Emergency Management Agency
28-22 pursuant to the National Flood Insurance Act of 1968 (42 U.S.C.
28-23 Sections 4001 through 4127);
28-24 Sec. 232.068. DISCLOSURE PRIOR TO SALE. (a) Before
28-25 offering subdivided land for sale or lease, the subdivider shall
29-1 notify the attorney general and the Executive Administrator in
29-2 writing of his intention to subdivide.
29-3 (b) The disclosure notice shall contain the following:
29-4 (1) the name and address of the owner;
29-5 (2) the name and address of the subdivider;
29-6 (3) the name and address of the owner or subdivider's
29-7 agent;
29-8 (4) the legal description and area of land;
29-9 (5) a true statement of the condition of the title to
29-10 the land, including all encumbrances on the land. If an
29-11 encumbrance is a lien, then the statement shall include the holder
29-12 of the lien and the terms with which the lien is held. Such
29-13 statement shall include the following:
29-14 (A) a description of the sewer service or septic
29-15 systems in the subdivision;
29-16 (B) a description of the drinking water in the
29-17 subdivision;
29-18 (C) a description of the quality and quantity of
29-19 the drinking water in the subdivision; and
29-20 (D) a description of the electricity and gas
29-21 utilities in the subdivision.
29-22 (6) the terms and conditions on which it is intended
29-23 to dispose of the land, together with copies of any real estate
29-24 sales contract, conveyance, lease, assignment or other instrument
29-25 intended to be used, and such other information the owner or his
30-1 agent or subdivider desires to present;
30-2 (7) a map of the subdivision which has been filed in
30-3 the office of the county recorder in the county in which the
30-4 subdivision is located;
30-5 (8) a detailed description of the land in metes and
30-6 bounds of the location of the subdivision;
30-7 (9) a statement of any easements dedicated to ensure
30-8 adequate permanent access to the subdivision;
30-9 (10) a statement of the approved preexisting sewer
30-10 service, solid waste collection and disposal, and public utilities
30-11 in the proposed subdivision, including water, electricity, gas, and
30-12 telephone facilities;
30-13 (11) a statement as to the location of the nearest
30-14 public common and high schools available for the attendance of
30-15 school age pupils residing on the subdivision property;
30-16 (12) a statement of the use or uses for which the
30-17 proposed subdivision will be offered;
30-18 (13) the name and business address of the principal
30-19 agent or broker selling or leasing, within this state, lots or
30-20 parcels in the subdivision; and
30-21 (14) a statement of the approximate amount of annual
30-22 taxes, special assessments of fees to be paid by the purchaser for
30-23 the proposed annual maintenance of common facilities in the
30-24 subdivision.
30-25 (c) The statement required in Subsection (4) shall be in
31-1 both English and Spanish.
31-2 Sec. 232.069. SUBDIVISION APPROVAL. Any subdivider having
31-3 an approved plat for a subdivision shall furnish:
31-4 (1) water, sufficient in quality and quantity, to
31-5 fulfill the use of water as proposed by the subdivider in his
31-6 disclosure statement;
31-7 (2) water of an acceptable quality for drinking,
31-8 meeting the minimum standards under state law and for the use of
31-9 water proposed by the subdivider in his disclosure statement;
31-10 (3) sewage treatment facilities that meet minimum
31-11 state standards to fulfill the solid waste requirements of the
31-12 subdivision;
31-13 (4) roads satisfying minimum standards as adopted by
31-14 the county;
31-15 (5) adequate drainage meeting standard engineering
31-16 practices; and
31-17 (6) electric utility service and gas utility service.
31-18 Sec. 232.070. CIVIL PENALTIES. (a) A person may not cause,
31-19 suffer, allow, or permit the sale of a residence in a subdivision
31-20 in an affected county if the subdivision has not been platted as
31-21 required by Section 232.066 and before filing a disclosure notice
31-22 as required by Section 232.068.
31-23 (b) A person may not cause, suffer, allow, or permit the
31-24 sale of a residence in a subdivision in an affected county in
31-25 violation of rules promulgated pursuant to Section 232.067.
32-1 (c) A person may not cause, suffer, allow, or permit the
32-2 sale of a residence in a subdivision without providing the services
32-3 described in Section 232.069.
32-4 (d) A person who violates Subsection (a), (b), or (c) of
32-5 this Section, or any other provision of this Subchapter is subject
32-6 to a civil penalty of not less than $10,000 nor more than $15,000
32-7 for each lot conveyed.
32-8 Sec. 232.071. CRIMINAL PENALTIES. (a) A person commits an
32-9 offense if the person, acting intentionally or knowingly, conveys
32-10 or causes a subdivision of an affected county to be inhabited
32-11 without appropriate water, sewer, and electric utilities as
32-12 required by Section 232.069. An offense under this section is a
32-13 Class A misdemeanor. Each sale or conveyance constitutes a
32-14 separate offense.
32-15 (b) A person who commits an offense under Subsection (a) of
32-16 this section and causes five or more residences to be inhabited is
32-17 subject to a felony in the third degree.
32-18 Sec. 232.072. ENFORCEMENT. (a) The attorney general, or
32-19 the district attorney, criminal district attorney, county attorney
32-20 with felony responsibilities, or county attorney of an affected
32-21 county, at the request of the attorney general, may take any action
32-22 necessary in a court of competent jurisdiction on behalf of the
32-23 state or on behalf of residents to:
32-24 (1) enjoin the violation or threatened violation of a
32-25 requirement adopted by the commissioners court under this
33-1 subchapter;
33-2 (2) recover as damages payable to the state or to the
33-3 affected county in an amount adequate for the county to undertake
33-4 the construction or other activity necessary to bring about
33-5 compliance with a requirement adopted by the commissioners court
33-6 under this chapter; and
33-7 (3) assess and recover civil or criminal penalties.
33-8 (b) During the pendency of any enforcement action brought
33-9 under this code, any resident of the affected subdivision may file
33-10 a motion to halt disconnection of pre-existing utility services;
33-11 these services may not be terminated, if the court makes an
33-12 affirmative finding after hearing said motion that disconnection
33-13 poses a threat to public health, safety, or welfare of the
33-14 residents.
33-15 Sec. 232.073. WAIVER OF GOVERNMENTAL IMMUNITY; PERMISSION TO
33-16 SUE. (a) Sovereign immunity to suit is waived and abolished to
33-17 the extent of liability created by this chapter.
33-18 (b) Any person may commence a civil action on his own behalf
33-19 against any person or county commissioner who is alleged to be in
33-20 violation of the provisions of this subchapter.
33-21 Sec. 232.074. VENUE. Venue for an action under this chapter
33-22 is in Travis County District Court, the district court in the
33-23 county in which the defendant resides, or in the district court
33-24 of the county in which the violation or threat of violation occurs.
33-25 ARTICLE II.
34-1 SECTION 4. Subtitle A, Title 3, Tax Code, is amended by the
34-2 addition of Chapter 313 to read as follows:
34-3 Sec. 313.001. SHORT TITLE. This chapter may be cited as the
34-4 Economically Distressed Area Tax Increment Financing Act.
34-5 Sec. 313.002. PURPOSE. This Act is designed to provide
34-6 affected counties, as defined by Section 232.024, Local Government
34-7 Code, or municipalities located within affected counties a means to
34-8 finance the construction of necessary improvements, including
34-9 necessary improvements for the provision of water supply and sewer
34-10 services that meet the standards of the model rules, as required by
34-11 Section 16.350, Water Code.
34-12 Sec. 313.003. DEFINITIONS. In this chapter:
34-13 (1) "Economically distressed area reinvestment zone
34-14 financing plan" means the financing plan for an economically
34-15 distressed area reinvestment zone described by this chapter.
34-16 (2) "Project costs" means the expenditures made or
34-17 estimated to be made and monetary obligations incurred or estimated
34-18 to be incurred by an affected county or a municipality located
34-19 within an affected county establishing an economically distressed
34-20 area reinvestment zone that are listed in the project plan as costs
34-21 incidental to those expenditures and obligations. "Project costs"
34-22 include:
34-23 (A) capital costs, including the actual costs of
34-24 the acquisition and construction of public works, public
34-25 improvements, new buildings, structures, and fixtures; the actual
35-1 costs of the acquisition, demolition, alteration, remodeling,
35-2 repair, renovation, or reconstruction of existing buildings,
35-3 structures, and fixtures; and the actual costs of the acquisition
35-4 of land and equipment and the clearing and grading of land;
35-5 (B) financing costs, including all interest paid
35-6 to holders of evidences of indebtedness or other obligations issued
35-7 to pay for project costs and any premium paid over the principal
35-8 amount of the obligations because of the redemption of the
35-9 obligations before maturity;
35-10 (C) real property assembly costs;
35-11 (D) professional service costs, including those
35-12 incurred for architectural, planning, engineering, and legal advice
35-13 and services;
35-14 (E) imputed administrative costs, including
35-15 reasonable charges for the time spent by employees of the affected
35-16 county or municipality in connection with the implementation of a
35-17 project plan;
35-18 (F) relocation costs;
35-19 (G) organizational costs, including the costs of
35-20 conducting environmental impact studies or other studies, the cost
35-21 of publicizing the creation of the zone, and the cost of
35-22 implementing the project plan for the zone;
35-23 (H) interest before and during construction and
35-24 for one year after completion of construction, whether or not
35-25 capitalized;
36-1 (I) the cost of operating the economically
36-2 distressed area reinvestment zone and project facilities;
36-3 (J) the amount of any contributions made by the
36-4 taxing unit creating the zone from general revenue for the
36-5 implementation of the project plan; and
36-6 (K) payments made at the discretion of the
36-7 taxing unit creating the zone that the taxing unit finds necessary
36-8 or convenient to the creation of the zone or to the implementation
36-9 of the project plans for the zone.
36-10 (3) "Project plan" means the project plan for the
36-11 development or redevelopment of an economically distressed area
36-12 reinvestment zone approved under this chapter, including all
36-13 amendments of the plan approved as provided by this chapter.
36-14 (4) "Taxing unit" has the meaning assigned by Section
36-15 1.04.
36-16 Sec. 311.004. PROCEDURE FOR CREATING ECONOMICALLY DISTRESSED
36-17 AREA REINVESTMENT ZONE. (a) The commissioners court of an
36-18 affected county by order or the governing body of a municipality
36-19 located in an affected county by ordinance may designate a
36-20 contiguous geographic area within its jurisdiction to be an
36-21 economically distressed area reinvestment zone to finance the
36-22 construction of necessary improvements, including necessary
36-23 improvements for the provision of water supply and sewer services
36-24 that meet the standards of the model rules, as required by Section
36-25 16.350, Water Code. For purposes of this section, land is
37-1 considered to be within the jurisdiction of a county if the land is
37-2 located in the county and outside the corporate limits of a
37-3 municipality, as determined under Chapter 42 of this code. For
37-4 purposes of this section, land is considered within the
37-5 jurisdiction of a municipality if it is located within the
37-6 corporate limits of the municipality, as determined under Chapter
37-7 42 of this code.
37-8 (b) Before adopting an ordinance providing for an
37-9 economically distressed area reinvestment zone, the governing body
37-10 of the taxing unit creating the zone must prepare a preliminary
37-11 economically distressed area reinvestment zone financing plan. As
37-12 soon as the plan is completed, a copy of the plan must be sent to
37-13 the government body of each taxing unit that levies taxes on real
37-14 property in the proposed zone.
37-15 (c) Before adopting an order of an ordinance providing for
37-16 an economically distressed area reinvestment zone, the taxing unit
37-17 creating the zone must hold a public hearing on the creation of the
37-18 zone and its benefits to the taxing unit and to property in the
37-19 proposed zone. At the hearing an interested person may speak for
37-20 or against the creation of the zone, its boundaries, or the concept
37-21 of tax increment financing. Not later than the seventh day before
37-22 the date of the hearing, notice of the hearing must be published in
37-23 English and Spanish in a newspaper having general circulation in
37-24 the taxing unit.
37-25 (d) The governing body of a taxing unit creating the zone
38-1 must provide a reasonable opportunity for the owner of property to
38-2 protest the inclusion of the property in a proposed economically
38-3 distressed area reinvestment zone.
38-4 (e) Not later than the 60th day before the date of the
38-5 public hearing required by Subsection (c), the governing body of
38-6 the taxing unit must notify in writing the governing body of every
38-7 other taxing unit that levies real property taxes in the proposed
38-8 economically distressed area reinvestment zone that it intends to
38-9 establish the zone. The notice must contain a description of the
38-10 proposed boundaries of the zone, the tentative plans for the
38-11 development or redevelopment of the zone, and an estimate of the
38-12 general impact of the proposed zone on property values, and tax
38-13 revenue. The notice may be given later than the 60th day before
38-14 the date of the public hearing if the governing body of each taxing
38-15 unit that levies real property taxes in the proposed zone agrees to
38-16 waive the requirement.
38-17 (f) A taxing unit may request additional information from
38-18 the governing body of the taxing unit creating the zone. The
38-19 governing body of the taxing unit creating the zone shall provide
38-20 the information requested to the extent practicable. In addition
38-21 to the notice required by Subsection (e), the governing body of the
38-22 taxing unit creating the zone shall make a formal presentation to
38-23 the governing body of every other taxing unit that levies real
38-24 property taxes in the proposed economically distressed area
38-25 reinvestment zone. The presentation must include a description of
39-1 the proposed boundaries of the zone, the tentative plans for the
39-2 development or redevelopment of the zone, and an estimate of the
39-3 general impact of the proposed zone on property values and tax
39-4 revenues. The governing body of the taxing unit creating the zone
39-5 shall notify every other taxing unit that levies real property
39-6 taxes in the proposed zone of each presentation to be made to a
39-7 taxing unit under this subsection. Members of the governing body
39-8 of each taxing unit that levies real property taxes in the proposed
39-9 zone may attend a presentation under this subsection. If agreed to
39-10 by the taxing units involved, the governing body of the taxing unit
39-11 creating the zone may make a single presentation to more than one
39-12 taxing unit.
39-13 (g) Not later than the 15th day after the date on which the
39-14 notice required by Subsection (e) is given, each taxing unit that
39-15 levies real property taxes in the proposed economically distressed
39-16 area reinvestment zone shall designate a representative to meet
39-17 with the governing body of the taxing unit creating the zone to
39-18 discuss the project plan and the economically distressed area
39-19 reinvestment zone financing plan and shall notify the governing
39-20 body of the taxing unit creating the zone of its designation. At
39-21 any time after the 15th day after the date on which the notice
39-22 required by Subsection (e) has been given to every taxing unit, the
39-23 governing body of the taxing unit creating the zone may call a
39-24 meeting of the representatives of the taxing units. The governing
39-25 body of the taxing unit creating the zone may call as many meetings
40-1 as it considers necessary. Each representative shall be notified
40-2 of each meeting in advance. At the meetings, the governing body of
40-3 the taxing unit creating the zone and the representatives of the
40-4 other taxing units may discuss the boundaries of the zone,
40-5 development in the zone, the tax increment that each taxing unit
40-6 will contribute to the tax increment fund, the retention by a
40-7 taxing unit of a portion of its tax increment as permitted by
40-8 Section 313.014, the exclusion of particular parcels of property
40-9 from the zone, and tax collection for the zone. On the motion of
40-10 the governing body of the taxing unit creating the zone calling the
40-11 meeting, any other matter relevant to the proposed economically
40-12 distressed area reinvestment zone may be discussed.
40-13 Sec. 311.005. CONTENTS OF ECONOMICALLY DISTRESSED AREA
40-14 REINVESTMENT ZONE ORDER OR ORDINANCE. (a) The order or ordinance
40-15 designating an area as an economically distressed area reinvestment
40-16 zone must:
40-17 (1) describe the boundaries of the zone with
40-18 sufficient definiteness to identify with ordinary and reasonable
40-19 certainty the territory included in the zone;
40-20 (2) provide that the zone take effect on January 1 of
40-21 the year following the year in which the order or ordinance is
40-22 adopted;
40-23 (3) provide a date for termination of the zone;
40-24 (4) assign a name to the zone for identification, with
40-25 the first zone created by a county as "Economically distressed area
41-1 reinvestment zone, Number One, County" and with the first zone
41-2 created by a municipality as "Economically distressed area
41-3 reinvestment zone Number One, City (or Town, as applicable) of
41-4 (name of municipality)" and subsequently creating zones assigned
41-5 names in the same form numbered consecutively in the order of their
41-6 creation;
41-7 (5) establish an economically distressed area tax
41-8 increment fund for the zone; and
41-9 (6) contain findings that:
41-10 (A) improvements in the zone will significantly
41-11 enhance the value of all the taxable real property in the zone and
41-12 will be of general benefit to the taxing unit creating the zone;
41-13 and
41-14 (B) the area meets the requirement of Section
41-15 313.006.
41-16 (b) For purposes of complying with Subsection (a)(7)(A), the
41-17 order or ordinance is not required to identify the specific parcels
41-18 of real property to be enhanced in value.
41-19 (c) To designate an economically distressed area
41-20 reinvestment zone under Section 313.006(a)(4), the governing body
41-21 of the taxing unit creating the zone must specify in the order or
41-22 ordinance that the economically distressed area reinvestment zone
41-23 is designated under that section.
41-24 Sec. 311.006. CRITERIA FOR ECONOMICALLY DISTRESSED AREA
41-25 REINVESTMENT ZONE. (a) To be designated as a distressed area
42-1 reinvestment zone, an area must:
42-2 (1) substantially arrest or impair the sound growth of
42-3 the taxing unit creating the zone, retard the provision of housing
42-4 accommodations, or constitute an economic or social liability and
42-5 be a menace to the public health, safety, morals, or welfare in its
42-6 present condition and use because of the presence of:
42-7 (A) a substantial number of substandard,
42-8 deteriorated, or deteriorating structures;
42-9 (B) the predominance of defective or inadequate
42-10 sidewalk or street layout;
42-11 (C) faulty lot layout in relation to size,
42-12 adequacy, accessibility, or usefulness;
42-13 (D) unsanitary or unsafe conditions;
42-14 (E) no, or substandard, water or sewer services
42-15 and no conforming electric and gas connections;
42-16 (F) the deterioration of site or other
42-17 improvements;
42-18 (G) tax or special assessment delinquency
42-19 exceeding the fair value of the land;
42-20 (H) defective or unusual conditions of title; or
42-21 (I) conditions that endanger life or property by
42-22 fire or other cause;
42-23 (2) be predominately open and, because of obsolete,
42-24 incomplete, defective, or misleading platting, deterioration of
42-25 structures or site improvements, or other factors, substantially
43-1 impair or arrest the sound growth of the taxing unit creating the
43-2 unit;
43-3 (3) be in a federally assisted new community located
43-4 in a municipality or in an area immediately adjacent to a federally
43-5 assisted new community; or
43-6 (4) be an area described in a petition requesting that
43-7 the area be designated as an economically distressed area
43-8 reinvestment zone, if the petition is submitted to the governing
43-9 body of an affected county or a municipality located in an affected
43-10 county by at least 50 percent of the resident purchasers of
43-11 property the area.
43-12 (b) In this section, "federally assisted new community"
43-13 means a federally assisted area that has received or will receive
43-14 assistance in the form of loan guarantees under Title X of the
43-15 National Housing Act, if a portion of the federally assisted area
43-16 has received grants under Section 107(a)(1) of the Housing and
43-17 Community Development Act of 1974.
43-18 Sec. 313.007. CHANGING BOUNDARIES OF EXISTING ZONE.
43-19 (a) The boundaries of an existing economically distressed area
43-20 reinvestment zone may be reduced or enlarged by order, ordinance or
43-21 resolution, whichever is applicable, of the governing body of the
43-22 taxing unit creating the zone.
43-23 (b) The governing body of the taxing unit creating the zone
43-24 may enlarge an existing economically distressed area reinvestment
43-25 zone to include an area described in a petition requesting that the
44-1 area be included in the zone if the petition is submitted to the
44-2 governing body of that taxing unit by the resident purchasers of
44-3 property in the area. The composition of the board of directors of
44-4 the zone continues to be governed by Section 313.009.
44-5 Sec. 311.008. POWERS OF A TAXING UNIT CREATING A ZONE.
44-6 (a) A taxing unit creating a zone may exercise any power necessary
44-7 and convenient to carry out this chapter, including the power to:
44-8 (1) cause project plans to be prepared, approve and
44-9 implement the plans, and otherwise achieve the purposes of the
44-10 plan;
44-11 (2) acquire real property by purchase, condemnation,
44-12 or other means, in the manner provided by law, to implement project
44-13 plans and sell that property on the terms and conditions and in the
44-14 manner it considers advisable, in the manner provided by law;
44-15 (3) enter into agreements, including agreements with
44-16 bondholders, determined by the governing body of the taxing unit
44-17 creating the zone to be necessary or convenient to implement
44-18 project plans and achieve their purposes, which agreements may
44-19 include conditions, restrictions, or covenants that run with the
44-20 land or that by other means regulate or restrict the use of land;
44-21 and
44-22 (4) consistent with the project plan for the zone;
44-23 (A) acquire economically distressed,
44-24 deteriorated, deteriorating, undeveloped, or inappropriately
44-25 developed real property or other property in an economically
45-1 distressed area or in a federally assisted new community in the
45-2 zone for the preservation or restoration of historic sites,
45-3 beautification or conservation, the provision of public works or
45-4 public facilities, or other public purposes, or
45-5 (B) acquire, construct, reconstruct, or install
45-6 public works, facilities, or sites or other public improvements,
45-7 including utilities, streets, street lights, water and sewer
45-8 facilities, pedestrian malls and walkways, parks, flood and
45-9 drainage facilities, educational facilities, or parking facilities.
45-10 (b) The powers authorized by Subsection (a)(2) prevail over
45-11 any law or municipal charter to the contrary.
45-12 (c) A taxing unit creating the zone may make available to
45-13 the public on request financial information regarding the
45-14 acquisition by the taxing unit of land in the zone when the taxing
45-15 unit acquires the land.
45-16 Sec. 311.009. COMPOSITION OF BOARD OF DIRECTORS. The
45-17 members of the governing body of the taxing unit creating the zone
45-18 shall perform the duties and exercise the powers of the board of
45-19 directors of the zone, in addition to any other duties imposed by
45-20 law.
45-21 Sec. 311.010. POWERS AND DUTIES OF BOARD OF DIRECTORS.
45-22 (a) The board of directors of an economically distressed area
45-23 reinvestment zone shall administer the zone.
45-24 (b) The board of directors of an economically distressed
45-25 area reinvestment zone may enter into agreements as the board
46-1 considers necessary or convenient to implement the project plan and
46-2 economically distressed area reinvestment zone financing plan and
46-3 achieve their purposes. An agreement may provide for the
46-4 regulation or restriction of the use of land by imposing
46-5 conditions, restrictions, or covenants that run with the land. An
46-6 agreement may dedicate revenue from the tax increment fund to pay
46-7 costs of replacing housing or areas of public assembly in or out of
46-8 the zone. An agreement may dedicate revenue from the economically
46-9 distressed area tax increment fund to pay a neighborhood enterprise
46-10 association for providing services or carrying out projects
46-11 authorized under Section 21, Texas Enterprise Zone Act (Article
46-12 5190.7, Vernon's Texas Civil Statutes), in the zone. The term of
46-13 an agreement with a neighborhood enterprise association may not
46-14 exceed 10 years.
46-15 Sec. 313.0101. PARTICIPATION OF DISADVANTAGE BUSINESSES IN
46-16 CERTAIN AREAS. (a) It is the goal of the legislature, subject to
46-17 the constitutional requirements spelled out by the United States
46-18 Supreme Court in J.A. Croson Company v. City of Richmond (822F.2d
46-19 1355) and as hereafter further elaborated by federal and state
46-20 courts, that all disadvantaged businesses in the one designated
46-21 under Section 311.005(a)(5) be given full and complete access of
46-22 the procurement process whereby supplies materials, services, and
46-23 equipment are acquired by the board. It is also the intent of the
46-24 legislature that to the extent constitutionally permissible, a
46-25 preference be given to disadvantaged businesses. The board and
47-1 general contractor shall give preference, among bids or other
47-2 proposals that are otherwise comparable, to a bid or other proposal
47-3 by a disadvantaged business having its home office located in this
47-4 state.
47-5 (b) It is the intent of the legislature that the zone shall:
47-6 (1) implement a program or programs targeted to
47-7 disadvantaged businesses in order to inform them fully about the
47-8 zone procurement process and the requirements for their
47-9 participation in the process;
47-10 (2) implement such steps as are necessary to ensure
47-11 that all disadvantaged businesses are made fully aware of
47-12 opportunities in the zone, including but not limited to specific
47-13 opportunities to submit bids and proposals. Steps that may be
47-14 appropriate in certain circumstances include mailing requests for
47-15 proposals or notices inviting bids to all disadvantaged businesses
47-16 in the county;
47-17 (3) require prime contractors, as part of their
47-18 responses to requests for proposals or bids, to make a specific
47-19 showing of how they intend to maximize participation by
47-20 disadvantaged businesses as subcontractors. The zone shall be
47-21 required to evaluate such actions by prime contractors as a factor
47-22 in the award of contracts within the zone procurement process;
47-23 (4) identify disadvantaged businesses in the county
47-24 that provide or have the potential to provide supplies, materials,
47-25 services, and equipment to the zone; and
48-1 (5) identify barriers to participation by disadvantage
48-2 businesses in the zone procurement process, such as bonding,
48-3 insurance, and working capital requirements that may be imposed on
48-4 businesses.
48-5 (c) It is the intent of the legislature that the zone shall
48-6 be required to develop a program pursuant to this Act for the
48-7 purchase of supplies, materials, services, and equipment and that
48-8 the board of the zone compile a report on an annual basis listing
48-9 the total number and dollar amount of contracts awarded to
48-10 disadvantaged businesses during the previous year as well as the
48-11 total number and dollar amount of all contracts awarded. Such
48-12 annual report shall be available for inspection by the general
48-13 public during regular business hours.
48-14 (d) The board by rule shall adopt goals for the
48-15 participation of minority business enterprises and women-owned
48-16 business enterprises fin the awarding of state contracts for
48-17 professional services. To implement the participation goals, the
48-18 board shall encourage each issuer to award to minority business
48-19 enterprises and women-owned business enterprises not less than 15
48-20 percent of the total value of all professional services contract
48-21 awards that the issuer expects to make in its fiscal year.
48-22 Sec. 311.011. PROJECT AND FINANCING PLANS. (a) The board
48-23 of directors of an economically distressed area reinvestment zone
48-24 shall prepare and adopt a project plan and an economically
48-25 distressed area reinvestment zone financing plan for the zone. The
49-1 plans must be as consistent as possible with the preliminary plans
49-2 developed for the zone before the creation of the board.
49-3 (b) The project plan must include:
49-4 (1) a map showing existing uses and conditions of real
49-5 property in the zone and a map showing proposed improvements to and
49-6 proposed uses of that property;
49-7 (2) proposed changes of zoning ordinances, the master
49-8 plan of the municipality, building codes, and other municipal
49-9 ordinances;
49-10 (3) a list of estimated non-project costs; and
49-11 (4) a statement of a method of relocating persons to
49-12 be displaced as a result of implementing the plan.
49-13 (c) The economically distressed area reinvestment zone
49-14 financing plan must include:
49-15 (1) a detailed list describing the estimated project
49-16 costs of the zone, including administrative expenses;
49-17 (2) a statement listing the kind, number, and location
49-18 of all proposed public works or public improvements in the zone;
49-19 (3) an economic feasibility study;
49-20 (4) the estimated amount of bonded indebtedness to be
49-21 incurred;
49-22 (5) the time when related costs or monetary
49-23 obligations are to be incurred;
49-24 (6) a description of the methods of financing all
49-25 estimated project costs and the expected sources of revenue to
50-1 finance or pay project costs, including the percentage of tax
50-2 increment to be derived from the property taxes of each taxing unit
50-3 that levies taxes on real property in the zone;
50-4 (7) the current total appraised value of taxable real
50-5 property in the zone;
50-6 (8) the estimated captured appraised value of the zone
50-7 during each year of its existence; and
50-8 (9) the duration of the zone.
50-9 (d) The governing body of the taxing unit creating the zone
50-10 must approve a project plan or economically distressed area
50-11 reinvestment zone financing plan by order or ordinance that finds
50-12 that the plan is feasible and conforms to the master plan, if any,
50-13 of that taxing unit.
50-14 (e) The board of directors of the zone at any time may adopt
50-15 an amendment to the project plan consistent with the requirements
50-16 and limitations of this chapter. The amendment takes effect on
50-17 approval. That approval must be by either order or ordinance,
50-18 which ever is applicable. If an amendment reduces or increases the
50-19 geographic area of the zone, increases the amount of bonded
50-20 indebtedness to be incurred, increases or decreases the percentage
50-21 of an economically distressed area tax increment to be contributed
50-22 by a taxing unit, increases the total estimated project costs, or
50-23 designates additional property in the zone to be acquired by the
50-24 taxing unit creating the zone, the approval must be by order or
50-25 ordinance adopted after a public hearing that satisfies the
51-1 procedural requirements of Sections 313.003(c) and (d).
51-2 Sec. 311.012. DETERMINATION OF AMOUNT OF ECONOMICALLY
51-3 DISTRESSED AREA TAX INCREMENT. (a) The amount of a taxing unit's
51-4 economically distressed area tax increment for a year is the amount
51-5 of property taxes levied by the unit for that year on the captured
51-6 appraised value of real property taxable by the unit and located in
51-7 an economically distressed area reinvestment zone.
51-8 (b) The captured appraised value of real property taxable by
51-9 a taxing unit for a year is the total appraised value of the
51-10 property for that year less the economically distressed area tax
51-11 increment base of the unit.
51-12 (c) The economically distressed area tax increment base of a
51-13 taxing unit is the total appraised value of all real property
51-14 taxable by the unit and located in an economically distressed area
51-15 reinvestment zone for the year in which the zone was designated
51-16 under this chapter.
51-17 Sec. 311.013. COLLECTION AND DEPOSIT OF TAX INCREMENTS.
51-18 (a) Each taxing unit that taxes real property located in an
51-19 economically distressed area reinvestment zone shall provide for
51-20 the collection of its taxes in the zone as for any other property
51-21 taxed by the unit.
51-22 (b) Each taxing unit shall pay into the economically
51-23 distressed area tax increment fund for the zone an amount equal to
51-24 the economically distressed area tax increment produced by the
51-25 unit, less the sum of:
52-1 (1) property taxes produced from the economically
52-2 distressed area tax increments that are, by contract executed
52-3 before the designation of the area as an economically distressed
52-4 area reinvestment zone, required to be paid by the unit to another
52-5 political subdivision; and
52-6 (2) a portion, not to exceed 15 percent, of the
52-7 economically distressed area tax increment produced by the unit as
52-8 provided by the economically distressed area reinvestment zone
52-9 financing plan or a larger portion as provided by Subsection (f) or
52-10 (g).
52-11 (c) A taxing unit shall make a payment required by
52-12 Subsection (b) not later than the 90th day after the delinquency
52-13 date for the unit's property taxes. A delinquent payment incurs a
52-14 penalty of five percent of the amount delinquent and accrues
52-15 interest at an annual rate of 10 percent.
52-16 (d) A taxing unit is not required to pay a tax increment
52-17 into the tax increment fund of the zone after three years from the
52-18 date the zone is creating unless the following conditions exist or
52-19 have been met within the three-year period:
52-20 (1) bonds have been issued for the zone under Section
52-21 313.015;
52-22 (2) the taxing unit creating the zone has acquired
52-23 property in the zone pursuant to the project plan; or
52-24 (3) construction of improvements pursuant to the
52-25 project plan has begun in the zone.
53-1 (e) The governing body of a taxing unit that taxes real
53-2 property located in the zone may determine the portion of the
53-3 economically distressed area tax increment produced by the taxing
53-4 unit that the taxing unit will retain from the economically
53-5 distressed area tax increment and may decide to retain all of that
53-6 tax increment. The determination is not effective unless the
53-7 governing body of the taxing unit notifies the board of directors
53-8 of the zone in writing of its determination under this subsection
53-9 on or before the 60th day after the date on which the governing
53-10 body of the taxing unit creating the zone approves the distressed
53-11 area reinvestment zone financing plan as provided by Section
53-12 313.011 (d). The governing body of the taxing unit may not
53-13 decrease the portion of the economically distressed area tax
53-14 increment that it has determined to dedicate to an economically
53-15 distressed area reinvestment zone fund after the project plan is
53-16 approved.
53-17 (g) A taxing unit is not required to pay into the
53-18 economically distressed area tax increment fund any of its tax
53-19 increment produced from property located in an economically
53-20 distressed area reinvestment zone designated under Section
53-21 313.006(a)(4) or in an area added to a distressed area reinvestment
53-22 zone under Section 313.008(b) unless the taxing unit enters into an
53-23 agreement to do so with the governing body of the taxing unit
53-24 creating the zone. A taxing unit may enter into an agreement under
53-25 this subsection at any time before or after the zone is created or
54-1 enlarged. The agreement may include conditions for payment of that
54-2 economically distressed area tax increment into the fund and must
54-3 specify the portion of the tax increment to be paid into the fund
54-4 and the years for which that economically distressed area tax
54-5 increment is to be paid into the fund. The agreement and the
54-6 conditions in the agreement are binding on the taxing unit and the
54-7 taxing unit creating the zone.
54-8 (h) In lieu of permitting a portion of its economically
54-9 distressed area tax increment to be paid into the economically
54-10 distressed area tax increment fund, and notwithstanding the
54-11 provisions of Section 312.203, a taxing unit, other than a city,
54-12 may elect to offer the owners of taxable real property in an
54-13 economically distressed area reinvestment zone created under this
54-14 chapter an exemption from taxation of all or part of the value of
54-15 the property. Any agreement concerning an exemption from ad
54-16 valorem taxes shall be executed in the manner and subject to the
54-17 limitations of Chapter 314; provided, however, the property covered
54-18 by the agreement need not be in a zone created pursuant to Chapter
54-19 314. A taxing unit may not offer a tax abatement agreement to
54-20 property owners in the zone after it has entered into an agreement
54-21 that its economically distressed area tax increments would be paid
54-22 into the tax fund pursuant to Subsection (g).
54-23 Sec. 311.014. ECONOMICALLY DISTRESSED AREA TAX INCREMENT
54-24 FUND. (a) In addition to the deposits required by Section
54-25 313.013, all revenues from the sale of economically distressed area
55-1 tax increment bonds or notes, revenues from the sale of any
55-2 property acquired as part of the economically distressed area tax
55-3 increment financing plan, and other revenues to be used in the
55-4 economically distressed area reinvestment zone shall be deposited
55-5 in the economically distressed area tax increment fund for the
55-6 zone.
55-7 (b) Money may be disbursed from the fund only to satisfy
55-8 claims of holders of economically distressed area tax increment
55-9 bonds or notes issued for the zone, to pay project costs for the
55-10 zone, or to make payments pursuant to an agreement made under
55-11 Section 313.010(b) dedicating revenue from the economically
55-12 distressed area tax increment fund.
55-13 (c) Subject to an agreement with the holders of economically
55-14 distressed area tax increment bonds or notes, money in an
55-15 economically distressed area tax increment fund may be temporarily
55-16 invested in the same manner as other funds of the taxing unit
55-17 creating the zone.
55-18 (d) After all project costs and all economically distressed
55-19 area tax increment bonds or notes issued for an economically
55-20 distressed area reinvestment zone have been paid, and subject to
55-21 any agreement with bondholders, any money remaining in the
55-22 economically distressed area tax increment fund shall be paid to
55-23 the taxing unit creating the zone and other taxing units levying
55-24 taxes on property in the zone in proportion to that taxing unit's
55-25 and each other unit's respective share of the total amount of
56-1 economically distressed area tax increments derived from taxable
56-2 real property in the zone that were deposited in the fund during
56-3 the fund's existence.
56-4 Sec. 311.015. ECONOMICALLY DISTRESSED AREA TAX INCREMENT
56-5 BONDS AND NOTES. (a) A taxing unit creating an economically
56-6 distressed area reinvestment zone may issue tax increment bonds or
56-7 notes, the proceeds of which may be used to pay project costs for
56-8 the economically distressed area reinvestment zone on behalf of
56-9 which the bonds or notes were issued or to satisfy claims of
56-10 holders of the bonds or notes. The taxing unit creating the zone
56-11 may issue refunding bonds or notes for the payment or retirement of
56-12 economically distressed area tax increment bonds or notes
56-13 previously issued by it.
56-14 (b) Economically distressed area tax increment bonds, and
56-15 notes are payable, as to both principal and interest, solely from
56-16 the economically distressed area tax increment fund established for
56-17 the economically distressed area reinvestment zone. The governing
56-18 body of the taxing unit creating the zone may pledge irrevocably
56-19 all or part of the fund for payment of economically distressed area
56-20 tax increment bonds or notes. The part of the fund pledge in
56-21 payment may be used only for the payment of the bonds or notes or
56-22 interest on the bonds or notes until the bonds or notes have been
56-23 fully paid. A holder of the bonds or notes or of coupons issued on
56-24 the bonds has a lien against the fund for payment of the bonds or
56-25 notes and interest on the bonds or notes and may protect or enforce
57-1 the lien at law or in equity.
57-2 (c) Economically distressed area tax increment bonds are
57-3 issued by order of the commissioners court or ordinance of the
57-4 municipality creating the zone without any additional approval
57-5 other than that of the attorney general.
57-6 (d) Economically distressed area tax increment bonds or
57-7 notes, together with the interest on and income from those bonds or
57-8 notes, are exempt from all taxes.
57-9 (e) The issuing taxing unit may provide in the contract with
57-10 the owners or holders of economically distressed area tax increment
57-11 bonds that it will pay into the economically distressed area tax
57-12 increment fund all or any part of the revenue produced or received
57-13 from the operation or sale of a facility acquired, improved, or
57-14 constructed pursuant to a project plan, to be used to pay principal
57-15 and interest on the bonds. If the taxing unit agrees, the owners
57-16 or holders of economically distressed area tax increment bonds may
57-17 have a lien or mortgage on a facility acquired, improved, or
57-18 constructed with the proceeds of the bonds.
57-19 (f) Economically distressed area tax increment bonds may be
57-20 issued in one or more series. The order or ordinance approving an
57-21 economically distressed area tax increment bond or note, or the
57-22 trust indenture or mortgage issued in connection with the bond or
57-23 note, shall provide:
57-24 (1) the date that the bond or note bears;
57-25 (2) that the bond or note is payable on demand or at a
58-1 specified time;
58-2 (3) the interest rate that the bond or note bears;
58-3 (4) the denomination of the bond or note;
58-4 (5) whether the bond or note is in coupon or
58-5 registered form;
58-6 (6) the conversion or registration privileges of the
58-7 bond or note;
58-8 (7) the rank or priority of the bond or note;
58-9 (8) the manner of execution of the bond or note;
58-10 (9) the medium of payment in which and the place or
58-11 places at which the bond or note is payable;
58-12 (10) the terms of redemption, with or without premium,
58-13 to which the bond or note is subject;
58-14 (11) the manner in which the bond or note is secured;
58-15 and
58-16 (12) any other characteristic of the bond or note.
58-17 (g) A bond or note issued under this chapter is fully
58-18 negotiable. In a suit, action, or other proceeding involving the
58-19 validity or enforceability of a bond or note issued under this
58-20 chapter or the security of a bond or note issued under this
58-21 chapter, if the bond recites in substance that it was issued by the
58-22 taxing unit creating the zone for an economically distressed area
58-23 reinvestment zone, the bond or note is conclusively deemed to have
58-24 been issued for that purpose, and the development or redevelopment
58-25 if the zone is conclusively deemed to have been planned, located,
59-1 and carried out as provided by this chapter.
59-2 (h) A bank, trust company, savings bank or institution,
59-3 savings and loan association, investment company or other person
59-4 carrying on a banking or investment business, an insurance company,
59-5 insurance association, or other person carrying on an insurance
59-6 business; or an executor, administrator, curator, trustee, or other
59-7 fiduciary may invest any sinking funds, money, or other funds
59-8 belonging to it or in its control in economically distressed area
59-9 tax increment bonds or notes issued under this chapter.
59-10 Economically distressed area tax increment bonds or notes are
59-11 authorized security for all public deposits. A person, political
59-12 subdivision, or public or private officer may use funds owned or
59-13 controlled by the person, political subdivision, or officer to
59-14 purchase economically distressed area tax increment bonds or notes.
59-15 This chapter does not relieve any person of the duty to exercise
59-16 reasonable care in selecting securities.
59-17 (i) An economically distressed area tax increment bond or
59-18 note is not a general obligation of the taxing unit issuing the
59-19 bond or note. An economically distressed area tax increment bond
59-20 or note does not give rise to a charge against the general credit
59-21 or taxing powers of the issuing taxing unit and is not payable
59-22 except as provided by this chapter. An economically distressed
59-23 area tax increment bond or note issued under this chapter must
59-24 state the restrictions of this subsection on its face.
59-25 (j) An economically distressed area tax increment bond or
60-1 note may not be included in any computation of the debt of the
60-2 issuing taxing unit.
60-3 (k) A taxing unit may not issue economically distressed area
60-4 tax increment bonds or notes in an amount that exceeds the total
60-5 cost of implementing the project plan for the economically
60-6 distressed area reinvestment zone for which the bonds or notes are
60-7 issued.
60-8 (l) An economically distressed area tax increment bond or
60-9 note must mature within 30 years of the date of issue.
60-10 Sec. 311.016. ANNUAL REPORT. (a) On or before the 90th day
60-11 following the end of the fiscal year of the taxing unit creating
60-12 the zone, the governing body of that taxing unit shall submit to
60-13 the chief executive officer of each taxing unit that levies
60-14 property taxes on real property in an economically distressed area
60-15 reinvestment zone created by the taxing unit a report on the status
60-16 of the zone. The report must include:
60-17 (1) the amount and source of revenue in the
60-18 economically distressed area tax increment fund established for the
60-19 zone;
60-20 (2) the amount and purpose of expenditures from the
60-21 fund;
60-22 (3) the amount of principal and interest due on
60-23 outstanding bonded indebtedness;
60-24 (4) the economically distressed area tax increment
60-25 base and current captured appraised value retained by the zone; and
61-1 (5) the captured appraised value shared by the taxing
61-2 unit creating the zone and other taxing units, the total amount of
61-3 economically distressed area tax increments received, and any
61-4 additional information necessary to demonstrate compliance with the
61-5 economically distressed area tax increment financing plan adopted
61-6 by the governing body of the taxing unit creating the zone.
61-7 (b) A copy of a report made under this section shall be sent
61-8 to the attorney general.
61-9 Sec. 311.017. TERMINATION OF ECONOMICALLY DISTRESSED AREA
61-10 REINVESTMENT ZONE. (a) An economically distressed area
61-11 reinvestment zone terminates on the earlier of:
61-12 (1) the termination date designated in the order or
61-13 ordinance creating the zone or an earlier termination date
61-14 designated by an order or ordinance adopted subsequent to the order
61-15 or ordinance creating the zone; or
61-16 (2) the date on which all project costs, economically
61-17 distressed area tax increment bonds, and interest on those bonds
61-18 have been paid in full.
61-19 (b) The economically distressed area tax increment pledged
61-20 to the payment of bonds and interest on the bonds may be discharged
61-21 and the economically distressed area reinvestment zone may be
61-22 terminated if the taxing unit that created the zone deposits or
61-23 causes to be deposited with a trustee or other escrow agent
61-24 authorized by law funds in an amount that, together with the
61-25 interest on the investment of the funds in direct obligations of
62-1 the United States, will be sufficient to pay the principal of,
62-2 premium, if any, and interest on all bonds issued on behalf of the
62-3 economically distressed area reinvestment zone at maturity or at
62-4 the date fixed for redemption of the bonds, and to pay any other
62-5 amounts that may become due, including compensation due or to
62-6 become due to the trustee or escrow agent.
62-7 SECTION 5. Subtitle A, Title 3, Tax Code, is amended by the
62-8 addition of Chapter 314 to read as follows:
62-9 CHAPTER 314. TAX ABATEMENT IN ECONOMICALLY DISTRESSED AREA
62-10 REINVESTMENT ZONES IN CERTAIN COUNTIES FOR ECONOMICALLY DISTRESSED
62-11 AREA DEVELOPMENT.
62-12 Sec. 314.001. DESIGNATION OF ECONOMICALLY DISTRESSED AREA
62-13 REINVESTMENT ZONE IN CERTAIN COUNTIES. (a) The commissioners
62-14 court of an affected county, as defined at Section 232.024, Local
62-15 Government Code, that is eligible to do so under Section 314.002 of
62-16 this code by order may designate as an economically distressed area
62-17 reinvestment zone an area of the county that does not include area
62-18 in the taxing jurisdiction of a municipality.
62-19 (b) The commissioners court may not designate an area as an
62-20 economically distressed area reinvestment zone until it holds a
62-21 public hearing on the designation and finds that the designation
62-22 would contribute to the health, safety, and welfare of resident of
62-23 the zone, the retention or expansion of primary employment in the
62-24 area, or would attract major investment in the zone that would be a
62-25 benefit to the property to be included in the zone and would
63-1 contribute to the economic development of the county. At the
63-2 hearing, interested persons are entitled to speak and present
63-3 evidence for or against the designation. Notice of the hearing
63-4 must be given in the same manner as provided for notice of a
63-5 hearing to be held by a municipality under Section 312.201 of this
63-6 code.
63-7 (c) The designation of an economically distressed area
63-8 reinvestment zone under this section expires 30 years after the
63-9 date of the designation or the date on which loans for development
63-10 and construction are repaid and may be renewed for periods not to
63-11 exceed 10 years. The expiration of the designation does not affect
63-12 existing agreements made under this subchapter.
63-13 (d) Property may be located both in an economically
63-14 distressed area reinvestment zone designated by a county under this
63-15 subchapter and in a reinvestment zone designated by a municipality
63-16 under Subchapter B.
63-17 Sec. 314.002. COUNTY TAX ABATEMENT AGREEMENT FOR
63-18 ECONOMICALLY DISTRESSED AREA DEVELOPMENT. (a) The commissioners
63-19 court of an affected county as defined at Section 232.024, Local
63-20 Government Code, may execute a tax abatement agreement for an
63-21 economically distressed area development with the owner of taxable
63-22 real property located in an economically distressed reinvestment
63-23 zone designated under this subchapter. The execution, duration,
63-24 and other terms of an agreement made under this section are
63-25 governed by the provisions of Sections 312.204 and 312.205
64-1 applicable to a municipality. Section 312.2041 applies to an
64-2 agreement made by a county under this section in the same manner as
64-3 it applies to an agreement made by a municipality under Section
64-4 312.204.
64-5 (b) A tax abatement agreement for economically distressed
64-6 area development made by a county has the same effect on the school
64-7 districts and other taxing units in which the property subject to
64-8 the agreement is located as is provided by Sections 312.206(a) and
64-9 (b) for an agreement made by a municipality to abate taxes on
64-10 property located in the taxing jurisdiction of the municipality.
64-11 (c) If property subject to an agreement with a county under
64-12 this section is annexed by a municipality during the existence of
64-13 the agreement, the terms of the county agreement regarding the
64-14 share of the property to be exempt in each year of the agreement
64-15 apply to the taxation of the property by the municipality if before
64-16 the annexation the governing body of the municipality by official
64-17 action expresses an intent to enter into an agreement with the
64-18 owner of the property to abate taxes on the property if it is
64-19 annexed or to be bound by the terms of the county agreement after
64-20 annexation.
64-21 (d) Property that is located in an economically distressed
64-22 area reinvestment zone designated by a county under this subchapter
64-23 and that is owned or leased by a member of the commissioners court
64-24 may not be subject to a tax abatement agreement made under this
64-25 section.
65-1 (e) An agreement made under this section by a county or
65-2 other taxing unit may be modified or terminated in the same manner
65-3 and subject to the same limitations as provided by Section 312.208
65-4 for an agreement made under Subchapter B of this chapter.
65-5 ARTICLE III.
65-6 SECTION 6. Section 13.002, Water Code, is amended by the
65-7 amendment of Subdivision (23) and the addition of Subdivision (26)
65-8 to read as follows:
65-9 (23) "Water and sewer utility," "water or sewer utility
65-10 operated by an affected county," "public utility," or utility means
65-11 any persons, corporation, cooperative corporation, or any
65-12 combination of these persons or entities, other than a municipal
65-13 corporation, water supply or sewer service corporation, or a
65-14 political subdivision in this state, or their lessees, trustees,
65-15 employees or agents, receivers, owning or operating for
65-16 compensation in this state equipment or facilities for the
65-17 transmission, storage, distribution, sale, or provision of potable
65-18 water to the public or for the resale of potable water to the
65-19 public for any use or for the collection, transportation,
65-20 treatment, or disposal of sewage or other operation of a sewage
65-21 disposal service for the public, other than equipment or facilities
65-22 owned and operated for either purpose by a municipality or other
65-23 political subdivision of this state or a water supply or sewer
65-24 service corporation, but does not include any person or corporation
65-25 not otherwise a public utility that furnishes the services or
66-1 commodity only to itself or its employees or tenants as an incident
66-2 of that employee service or tenancy when that service or commodity
66-3 is not resold to or used by others.
66-4 (26) "Affected county" means a county:
66-5 (A) that has a per capita income that averaged
66-6 25 percent below the state average for the most recent three
66-7 consecutive years for which statistics are available and an
66-8 unemployment rate that averaged 25 percent above the state average
66-9 for the most recent three consecutive years for which statistics
66-10 are available; or
66-11 (B) that is adjacent to an international border.
66-12 SECTION 7. Section 13.043, Water Code is amended by the
66-13 amendment of Subsections (b), (c), (f), (g), and (j) and by the
66-14 addition of a new Subsection (j) to read as follows:
66-15 (b) Ratepayers of the following entities may appeal the
66-16 decision of the governing body of entity affecting their water,
66-17 drainage, or sewer rates to the commission:
66-18 (1) a nonprofit water supply or sewer service
66-19 corporation created and operating under Chapter 76, Acts of the
66-20 43rd Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's
66-21 Texas Civil Statutes);
66-22 (2) a utility under the jurisdiction of a municipality
66-23 inside the corporate limits of the municipality;
66-24 (3) a utility under the jurisdiction of an affected
66-25 county;
67-1 (4) <(3)> a municipally owned utility, if the
67-2 ratepayers reside outside the corporate limits of the municipality;
67-3 and
67-4 (5) <(4)> a district or authority created under
67-5 Article III, Section 52, or Article XVI, Section 59, of the Texas
67-6 Constitution that provides water or sewer service to household
67-7 users. For purposes of this section ratepayers who reside outside
67-8 the boundaries of the district or authority shall be considered a
67-9 separate class form ratepayers who reside inside those boundaries.
67-10 (c) An appeal under Subsection (b) of this section must be
67-11 initiated by filing a petition for review with the commission and
67-12 the entity providing service within 90 days after the days after
67-13 the effective day of the rate change, or if appealing under
67-14 Subdivision (b)(2) or (3) of this section, within 90 days after the
67-15 date on which the governing body of the municipality or the
67-16 commissioners court makes a final decision. The petition must be
67-17 signed by the lesser of 10,000 or 10 percent of those ratepayers
67-18 whose rates have been changed and who are eligible to appeal under
67-19 Subsection (b) of this section. A ratepayer in an affected county
67-20 is eligible to appeal only if his or her rates were actually
67-21 affected adversely.
67-22 (f) A retail public utility that receives water or sewer
67-23 service from another retail public utility or political subdivision
67-24 of the state, including an affected county, may appeal to the
67-25 commission a decision of the provider of water or sewer service
68-1 affecting the amount paid for water or sewer service. An appeal
68-2 under this subsection must be initiated within 90 days after the
68-3 date of notice of the decision is received from the provider of
68-4 water or sewer service by the filing of a petition by the retail
68-5 public utility.
68-6 (g) An applicant for service from an affected county or a
68-7 water supply or sewer service corporation may appeal to the
68-8 commission a decision of the water supply or sewer service
68-9 corporation affecting the amount to be paid to obtain service in
68-10 addition to the regular membership or tap fees. If the commission
68-11 finds the amount charged to be unreasonable, it shall establish the
68-12 fee to be paid for that applicant. An appeal under this subsection
68-13 must be initiated within 90 days after the date written notice is
68-14 provided to the applicant or member of the water supply or sewer
68-15 service corporation's decision or the decision of an affected
68-16 county relating to the applicant's initial request for that
68-17 service.
68-18 (j) The commissioners court of an affected county, within 30
68-19 days after the date of a final decision on a rate change, shall
68-20 provide individual written notice to each ratepayer eligible to
68-21 appeal. The notice must include, at a minimum, the effective date
68-22 of the new rates, the new rates, and the location where additional
68-23 information on rates can be obtained.
68-24 (k) <(j)> In an appeal under this section, the commission
68-25 shall ensure that every rate made, demanded, or received by any
69-1 retail public utility or by any to or more retail public utilities
69-2 jointly shall be just and reasonable. Rates shall not be
69-3 unreasonably preferential, prejudicial, or discriminatory but shall
69-4 be sufficient, equitable, and consistent in application to each
69-5 class of customers. The commission shall use a methodology that
69-6 preserves the financial integrity of the retail public utility.
69-7 For agreements between municipalities the commission shall consider
69-8 the terms of any wholesale water or sewer service agreement in an
69-9 appellate rate proceeding.
69-10 SECTION 8. Chapter 13, Texas Water Code, is amended by
69-11 adding Sections 13.102 and 13.103 to read as follows:
69-12 Sec. 13.102. AUTHORITY OF COMMISSIONERS COURT; COST
69-13 REIMBURSEMENT. The commissioners court of an affected county shall
69-14 have the right to select and engage rate consultants, accountants,
69-15 auditors, attorneys, engineers, or any combination of these experts
69-16 to conduct investigations, present evidence, advise and represent
69-17 the commissioners court, and assist with litigation on water and
69-18 sewer utility ratemaking proceedings.
69-19 Sec. 13.103. ASSISTANCE BY COMMISSION. On request, the
69-20 commission may advise and assist affected counties in connection
69-21 with questions and proceedings arising under this chapter.
69-22 SECTION 9. Subsection (a), Section 13.139, Texas Water Code,
69-23 is amended to read as follows:
69-24 (a) Every retail public utility that possesses or is
69-25 required to possess a certificate of public convenience and
70-1 necessity and every district and every affected county that
70-2 furnishes retail water or sewer utility service, shall furnish the
70-3 service, instrumentality's, and facilities as are safe, adequate,
70-4 efficient, and reasonable.
70-5 SECTION 10. Section 13.141, Texas Water Code, is amended to
70-6 read as follows:
70-7 A utility or municipally owned utility, or a utility operated
70-8 by an affected county, may not bill or otherwise require the state
70-9 or a state agency or institution to pay for service before the
70-10 service is rendered.
70-11 SECTION 11. Section 13.181, Texas Water Code, is amended to
70-12 read as follows:
70-13 Subject to this chapter, the commission, in consultation with
70-14 the attorney general, has all authority and power of the state to
70-15 ensure compliance with the obligations of utilities under this
70-16 chapter. For this purpose the regulatory authority may fix and
70-17 regulate rates of utilities, including rules and regulations for
70-18 determining the classification of customers and services and for
70-19 determining the applicability of rates. A rule or order of the
70-20 regulatory authority may not conflict with the rulings of any
70-21 federal regulatory body. Except Section 13.192, this subchapter
70-22 shall apply only to a utility and shall not be applied to
70-23 municipalities, counties, districts, or water supply or sewer
70-24 service corporations. The commission may adopt rules which
70-25 authorize a utility which is permitted under Section 13.342(c) to
71-1 provide service without a certificate of public convenience and
71-2 necessity to request or implement a rate increase and operate
71-3 according to rules, regulations, and standards of service other
71-4 than those otherwise required under this chapter provided that
71-5 rates are just and reasonable for customers and the utility and
71-6 that service is safe, adequate, efficient, and reasonable.
71-7 SECTION 12. Subsection (a), Section 13.242, Texas Water
71-8 Code, is amended to read as follows:
71-9 (a) Unless otherwise specified, a utility or water supply or
71-10 sewer service corporation or a utility operated by an affected
71-11 county may not in any way render retail water render retail water
71-12 or sewer utility service directly or indirectly to the public
71-13 without first having obtained from the commission a certificate
71-14 that the present or future public convenience and necessity will
71-15 require that installation, operation, or extension, and except as
71-16 otherwise provided by this subchapter, a retail public utility may
71-17 not furnish, make available, render, or extend retail water or
71-18 sewer utility service to any area to which retail water or sewer
71-19 utility service is being lawfully furnished by another retail
71-20 public utility without first having obtained a certificate of
71-21 public convenience and necessity that includes the area in which
71-22 the consuming facility is located.
71-23 SECTION 13. Section 26.01, Water Code, is amended by the
71-24 addition of Subdivision (26) to read as follows:
71-25 (26) "Affected county" means a county:
72-1 (A) that has a per capita income that averaged
72-2 25 percent below the state average for the most recent three
72-3 consecutive years for which statistics are available and an
72-4 employment rate that averaged 25 percent above the state average
72-5 for the most recent three consecutive years for which statistics
72-6 are available; or
72-7 (B) that is adjacent to an international border.
72-8 SECTION 14. Section 26.123, Water Code, is amended by the
72-9 addition of Subsections (j) and (k) to read as follows:
72-10 (j) Whenever it appears to the Office of the Attorney
72-11 General that a person, in an affected county, has violated or is in
72-12 violation or is threatening to violate any provision of this
72-13 chapter, or has violated or is violating, or is threatening to
72-14 violate, any rule, permit, or order of the commission, the attorney
72-15 general may request that the executive administrator initiate an
72-16 investigation of the alleged violation.
72-17 (k) The executive administrator, when requested by the
72-18 attorney general, shall initiate an investigation of the alleged
72-19 violation and consult with the attorney general as the
72-20 investigation progresses to determine the appropriate remedial
72-21 action.
72-22 SECTION 15. Section 26.124, Water Code, is amended by the
72-23 addition of Subsection (c) to read as follows:
72-24 (c) Whenever it appears that a violation or threat of
72-25 violation of any provision of Section 26.121 of this code or any
73-1 rule, permit, or order of the commission has occurred or is
73-2 occurring within an affected county, the attorney general may
73-3 institute a civil suit in a district court for the injunctive
73-4 relief or civil penalties or both, against the person who committed
73-5 or is committing or threatening to commit the violation. In a suit
73-6 brought by the attorney general under this section, the commission
73-7 is a necessary and indispensable party.
73-8 SECTION 16. Subchapter J, Water Code, is amended by the
73-9 addition of Section 16.343 to read as follows:
73-10 Sec. 16.343. RULES PROMULGATED BY BOARD. (a) The rules
73-11 should be adopted by the board, in consultation with the office of
73-12 the attorney general, pursuant to the requirements of Chapter X,
73-13 Subtitle A, Chapter 2001, Government Code.
73-14 (b) Suit is available by private persons.
73-15 SECTION 17. Section 16.352, Water Code, is amended to read
73-16 as follows:
73-17 Sec. 16.352. CIVIL ENFORCEMENT OF RULES. <(a)> A person
73-18 who violates a rule adopted by a county or municipality pursuant to
73-19 Section 16.343 of this code is subject to a civil penalty of not
73-20 less than $1,000 <$50> more than $10,000 <$1,000> for each
73-21 violation and for each day of a continuing violation but not in
73-22 excess of $50,000 <$5,000> per day.
73-23 <(b) A person commits an offense if the person knowingly or
73-24 intentionally violates a rule adopted pursuant to Section 16.343 of
73-25 this code by a county or a municipality.>
74-1 <(c) An offense under Subsection (b) of this section is a
74-2 Class B misdemeanor.>
74-3 SECTION 18. Subchapter J, Water Code, is amended by the
74-4 addition of Section 16.3521 to read as follows:
74-5 Sec. 16.3521. CRIMINAL ENFORCEMENT OF RULES. (a) A person
74-6 commits an offense if the person knowingly or intentionally
74-7 violates a rule adopted pursuant to this Subchapter.
74-8 (b) An offense under this Subchapter is a Class A
74-9 misdemeanor.
74-10 SECTION 19. Section 16.353, Water Code, is amended to read
74-11 as follows:
74-12 In addition to other remedies, the attorney general<,> or the
74-13 county or district attorney of the county in which the violation
74-14 occurred<, or other local officials> are authorized to apply to the
74-15 district court for and the court in its discretion may grant the
74-16 state or political subdivision, without bond or other undertaking,
74-17 any injunction that the facts may warrant including temporary
74-18 restraining orders, temporary injunctions after notice and hearing,
74-19 and permanent injunctions enjoining a violation of the rules.
74-20 SECTION 20. Section 16.354, Water Code, is amended to read
74-21 as follows:
74-22 In addition to enforcement by a political subdivision, the
74-23 attorney general may bring suit to enforce a rule adopted under
74-24 Section 16.350 of this code, to assess and recover the penalty
74-25 provided by Section 16.352 of this code, to obtain injunctive
75-1 relief to prevent the violation or continued violation of a
75-2 county's <political subdivision's> rules, or to enforce the rules,
75-3 recover the criminal penalty, and obtain injunctive relief.
75-4 SECTION 21. Subchapter J, Water Code, is amended by the
75-5 addition of Section 16.356 to read as follows:
75-6 Sec. 16.356. VENUE. A suit for injunctive relief or for
75-7 recovery of a civil penalty, or both, may be brought in a district
75-8 court:
75-9 (1) in the county in which the defendant resides;
75-10 (2) in the county in which the violation or threat of
75-11 violation occurs; or
75-12 (3) in Travis County.
75-13 ARTICLE IV.
75-14 SECTION 22. Subsection (a), Section 5.62, Property Code, is
75-15 amended to read as follows:
75-16 (a) Notice under Section 5.061 of this code must be in
75-17 writing. If the notice is mailed, it must be by registered or
75-18 certified mail.
75-19 (1) The notice must be conspicuous and printed in
75-20 12-point boldfaced type or uppercase typewritten letters, and must
75-21 include the statement:
75-22 NOTICE
75-23 YOU ARE LATE IN MAKING YOUR PAYMENT UNDER THE CONTRACT
75-24 TO BUY YOUR PROPERTY <HOME>. UNLESS YOU MAKE THE
75-25 PAYMENT BY (DATE) THE SELLER HAS THE RIGHT TO TAKE
76-1 POSSESSION OF YOUR PROPERTY <HOME> AND TO KEEP ALL
76-2 PAYMENTS YOU HAVE MADE TO DATE.
76-3 (2) If the transaction was conducted in a language
76-4 other than English, in addition to the statement above, the notice
76-5 must include the same statement in the language in which the
76-6 transaction was conducted.
76-7 SECTION 23. Subchapter D, Chapter 5, Property Code, is
76-8 amended by the addition of Section 5.064 to read as follows:
76-9 Sec. 5.064. RECORDING CONTRACT FOR DEED. (a) Any contract
76-10 for deed entered into for the purchase of real property located in
76-11 an affected county as defined in Section 16.341(1), Water Code
76-12 shall be filed for recording with the county clerk.
76-13 (b) If the transaction for property is negotiated in a
76-14 language other than English and executed with a contract for deed,
76-15 the seller shall file for record or have recorded in the county
76-16 clerk's office copies of the contract in both English and the
76-17 language in which the transaction is conducted.
76-18 (c) The seller shall attach to the contract for deed a
76-19 disclosure of any outstanding liens on the property, the
76-20 availability of utility service to the property, whether the
76-21 property is located in a floodplain as defined by the Federal
76-22 Emergency Management Agency, and proof in the form of a copy of a
76-23 warranty deed that the seller has title to the property.
76-24 (d) A person commits an offense if the person violates
76-25 Subsection (a), (b), or (c). An offense under this subsection is a
77-1 misdemeanor punishable by a fine of not less than $10 or more than
77-2 $500, by confinement in the county jail for a term not to exceed 90
77-3 days, or both the fine and confinement. Each violation constitutes
77-4 a separate offense and also constitutes prima facie evidence of an
77-5 attempt to defraud.
77-6 SECTION 24. Subchapter D, Chapter 5, Property Code, is
77-7 amended by the addition of Section 5.065 to read as follows:
77-8 Sec. 5.065. EXECUTORY CONTRACTS IN AFFECTED COUNTIES.
77-9 Because of the exigent circumstances described in Section 232.021,
77-10 Local Government Code, the use of fraudulent misrepresentations
77-11 made to residents of economically distressed subdivisions, as
77-12 defined in Section 232.024, Local Government Code, and the use of
77-13 executory contracts to enable this fraud to proliferate, executory
77-14 contracts are declared to be against the public policy of the state
77-15 when used by developers of economically distressed subdivisions and
77-16 are looked upon with disfavor in affected counties of this state,
77-17 as defined by Section 232.024, Local Government Code. A court
77-18 whenever possible should hold these executory contracts
77-19 unenforceable and exercise its equitable powers to reform these
77-20 executory contracts to maximize and protect the interests held by
77-21 the purchasers.
77-22 ARTICLE V.
77-23 SECTION 25. Section 17.42, Business and Commerce Code, is
77-24 amended by the addition of Subsection (c) to read as follows:
77-25 (c) The provisions of paragraphs (a) and (b) above do not
78-1 apply to transactions involving property within an economically
78-2 distressed subdivision, as that phrase is defined in Section
78-3 232.024, Local Government Code. A consumer involved in a
78-4 transaction related to property located in an economically
78-5 distressed subdivision may not waive any provision of this
78-6 subchapter, and any such waiver is contrary to public policy, and
78-7 as such, is unenforceable and void.
78-8 SECTION 26. Section 17.43. Business and Commerce Code, is
78-9 amended to read as follows:
78-10 The provisions of this subchapter are not exclusive. The
78-11 remedies provided in this subchapter are in addition to any other
78-12 procedures or remedies provided for in any other law; provided
78-13 however, that, except in a transaction involving property located
78-14 within an economically distressed subdivision, as that phrase is
78-15 defined in Section 232.024, Local Government Code, no recovery
78-16 shall be permitted under both this subchapter and another law of
78-17 both actual damages and penalties for the same act or practice. A
78-18 violation of a provision of law other than this subchapter is not
78-19 in and of itself a violation of this subchapter. An act or
78-20 practice that is a violation of a provision of law other than this
78-21 subchapter may be made the basis of an action under this subchapter
78-22 if the act or practice is proscribed by a provision of this
78-23 subchapter or is declared by such other law to be actionable under
78-24 this subchapter. The provisions of this subchapter do not in any
78-25 way preclude other political subdivisions of this state from
79-1 dealing with deceptive trade practices; provided, however, that any
79-2 action related to transactions involving property located within an
79-3 economically distressed subdivision, as that phrase is defined in
79-4 Section 232.024, Local Government Code, by any political
79-5 subdivision of this state other than the consumer protection
79-6 division is subject to the provisions of Section 17.48(b).
79-7 SECTION 27. Section 17.44, Business and Commerce Code, is
79-8 amended to read as follows:
79-9 This subchapter shall be liberally construed and applied to
79-10 promote its underlying purposes, which are to protect consumers
79-11 against false, misleading, and deceptive business practices,
79-12 unconscionable actions, unfair treatment of consumers in connection
79-13 with property located within an economically distressed
79-14 subdivision, as that phrase is defined in Section 232.024, Local
79-15 Government Code, and breaches of warranty and to provide efficient
79-16 and economical procedures to secure such protection.
79-17 SECTION 28. Subsection (b), Section 17.46, Business and
79-18 Commerce Code, is amended by the addition of Subdivision (25) to
79-19 read as follows:
79-20 (25) advertising, marketing, selling, transferring, leasing,
79-21 receiving consideration for, or otherwise affecting possession,
79-22 ownership or control of any parcel of land located within an
79-23 economically distressed subdivision unless the subdivision is in
79-24 compliance with all minimum platting requirements applicable to
79-25 such subdivision pursuant to Subchapter B, Chapter 232, Local
80-1 Government Code, and any applicable county or municipal subdivision
80-2 regulations enacted pursuant to Title 7, Local Government Code.
80-3 SECTION 29. Subsections (b), (c), (d), and (e), Section
80-4 17.47, Business and Commerce Code, are amended to read as follows:
80-5 (b) An action brought under Subsection (a) of this section
80-6 which alleges a claim to relief under this section may be commenced
80-7 in the district court of the county in which the person against
80-8 whom it is brought resides, has his principal place of business,
80-9 has done business, <or> in the district court of the county where
80-10 the transaction occurred, or<, on the consent of the parties,> in a
80-11 district court of Travis County. The court may issue temporary
80-12 restraining orders, temporary or permanent injunctions to restrain
80-13 and prevent violations of this subchapter and such injunctive
80-14 relief shall be issued without bond.
80-15 (c) In addition to the request for a temporary restraining
80-16 order, or permanent injunction in a proceeding brought under
80-17 Subsection (a) of this section, the consumer protection division
80-18 may request a civil penalty of not more than $2,000 per violation,
80-19 not to exceed a total of $10,000, to be paid to the state. Each
80-20 day of continuing violation of this subchapter constitutes a
80-21 separate violation for purposes of calculating the civil penalty
80-22 provided for herein. In all cases involving economically
80-23 distressed subdivisions, as that phrase is defined in Section
80-24 232.024, Local Government Code, or involving violations of Section
80-25 17.46(b)(25) of this subchapter, the civil penalty shall be paid to
81-1 the office of the attorney general for use in enforcing state laws
81-2 relating to economically distressed subdivisions or in providing
81-3 relief to residents of such subdivisions, generally.
81-4 (d) The court may make such additional orders or judgments
81-5 as are necessary to compensate identifiable persons for actual
81-6 damages or to restore money or property, real or personal, which
81-7 may have been acquired by means of any unlawful act or practice.
81-8 Damages may not include any damage incurred beyond a point two
81-9 years prior to the institution of the action by the consumer
81-10 protection division; provided, however, that in actions relating to
81-11 economically distressed subdivisions, damages may include all
81-12 damages regardless of when incurred.
81-13 (e) Any person who violates the terms of an injunction under
81-14 this section shall forfeit and pay to the state a civil penalty of
81-15 not more than $10,000 per violation, not to exceed $50,000. Each
81-16 act or instance of violation of the terms of an injunction under
81-17 this section constitutes a separate violation for purposes of
81-18 calculating the civil penalty provided for herein. In all cases
81-19 involving economically distressed subdivisions, as that term is
81-20 defined in Section 232.024, Local Government Code, where the terms
81-21 of an injunction under this section have been violated, the civil
81-22 penalty shall be paid to the office of the attorney general for use
81-23 in enforcing state laws relating to economically distressed
81-24 subdivisions or in providing relief to residents of such
81-25 subdivisions, generally. In determining whether or not an
82-1 injunction has been violated the court shall take into
82-2 consideration the maintenance of procedures reasonably adapted to
82-3 insure compliance with the injunction. For the purposes of this
82-4 section, the district court issuing the injunction shall retain
82-5 jurisdiction, and the cause shall be continued, and in these cases,
82-6 the consumer protection division, or the district or county
82-7 attorney after consultation with and upon written approval of the
82-8 attorney general, acting in the name of the state, may petition for
82-9 recovery of civil penalties under this section. In any action
82-10 taken by a district attorney or county attorney, after consultation
82-11 with and upon written approval of the attorney general, any civil
82-12 penalty recovered shall be paid to the office of the attorney
82-13 general for use in enforcing state laws relating to economically
82-14 distressed subdivisions or in providing relief to residents of such
82-15 subdivisions, generally. Any costs incurred by the district or
82-16 county attorney, however, including reasonable attorneys' fees and
82-17 investigative costs, shall be recovered by said district or county
82-18 attorney.
82-19 SECTION 30. Subsection (b), Section 17.48, Business and
82-20 Commerce Code, is amended to read as follows:
82-21 A district or county attorney, after consultation with and
82-22 upon written approval of the attorney general, may institute and
82-23 prosecute actions seeking injunctive relief under this subchapter,
82-24 after complying with the prior contact provisions of Subsection (a)
82-25 of Section 17.47 of this subchapter. The attorney general may
83-1 assist the district or county attorney in any action taken under
83-2 this subchapter; provided, however, that in cases involving
83-3 economically distressed subdivisions as that term is defined in
83-4 Section 232.024, Local Government Code, the attorney general may
83-5 enter an appearance as attorney of record for the state at any time
83-6 that the attorney general deems appropriate. If an action is
83-7 prosecuted by a district or county attorney alone, he shall make a
83-8 full report to the consumer protection division including the final
83-9 disposition of the matter; provided, however, that in cases
83-10 involving economically distressed subdivisions, as that term is
83-11 defined in Section 232.024, Local Government Code, the matter may
83-12 not be finally disposed of by a district or county attorney without
83-13 prior written approval of the attorney general. No district or
83-14 county attorney may bring an action under this section against any
83-15 licensed insurer or licensed insurance agent transacting business
83-16 under the authority and jurisdiction of the State Board of
83-17 Insurance unless first requested in writing to do so by the State
83-18 Board of Insurance, the commissioner of insurance, or the consumer
83-19 protection division pursuant to a request by the State Board of
83-20 Insurance or commissioner of insurance.
83-21 SECTION 31. Section 17.565, Business and Commerce Code, is
83-22 amended to read as follows:
83-23 All actions brought under this subchapter must be commenced
83-24 within two years after the date on which the false, misleading, or
83-25 deceptive trade act or practice occurred or within two years after
84-1 the consumer discovered or in the exercise of reasonable diligence
84-2 should have discovered the occurrence of the false, misleading, or
84-3 deceptive act or practice. The period of limitation provided in
84-4 this section may be extended for a period of 180 days if the
84-5 plaintiff proves that failure timely to commence the action was
84-6 caused by the defendant's knowingly engaging in conduct solely
84-7 calculated to induce the plaintiff to refrain from or postpone the
84-8 commencement of the action. The period of limitation provided in
84-9 this section does not apply to actions commenced in the public
84-10 interest by the attorney general nor to actions by district or
84-11 county attorneys commenced pursuant to Section 17.48 of this
84-12 subchapter, with prior approval of the attorney general.
84-13 ARTICLE VI.
84-14 SECTION 32. SEVERABILITY. If any section, sentence, clause,
84-15 or part of this Act shall, for any reason, be held invalid, such
84-16 invalidity shall not affect the remaining portions of the Act, and
84-17 it is hereby declared to be the intention of this legislature to
84-18 have passed each section, sentence, clause, or part irrespective of
84-19 the fact that any other section, sentence, clause, or part may be
84-20 declared invalid.
84-21 SECTION 33. CIVIL CAUSES OF ACTION. The changes in law made
84-22 by this Act apply only to a cause of action that accrues on or
84-23 after the effective date of this article. A cause of action that
84-24 accrues before the effective date of this article is governed by
84-25 the law in effect on the date the cause of action accrues, and that
85-1 law is continued in effect for this purpose.
85-2 SECTION 34. CRIMINAL OFFENSES OR VIOLATIONS. (a) The
85-3 changes in law made by this Act apply only to a criminal offense
85-4 committed or a violation that occurs on or after the effective date
85-5 of this Act. For the purposes of this Act, a criminal offense is
85-6 committed or a violation occurs before the effective of this Act if
85-7 any element of the offense or violation occurs before that date.
85-8 (b) A criminal offense committed or violation that occurs
85-9 before the effective date of this Act is covered by the law in
85-10 effect when the criminal offense was committed or the violation
85-11 occurred, and the former law is continued in effect for this
85-12 purpose.
85-13 SECTION 35. EFFECTIVE DATE. This Act takes effect on
85-14 September 1, 1995.
85-15 SECTION 36. EMERGENCY. The importance of this legislation
85-16 and the crowded condition of the calendars in both houses create an
85-17 emergency and an imperative public necessity that the
85-18 constitutional rule requiring bills to be read on three several
85-19 days in each house be suspended, and this rule is hereby suspended,
85-20 and that this Act take effect and be in force from and after its
85-21 passage, and it is so enacted.