By Bailey                                       H.B. No. 3291

      75R6557 MI-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to performance bonds for on-site sewage disposal systems.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 366.032, Health and Safety Code, is

 1-5     amended to read as follows:

 1-6           Sec. 366.032. ORDER OR RESOLUTION;  REQUIREMENTS.  (a) The

 1-7     local governmental entity's order or resolution must:

 1-8                 (1)  incorporate the commission's rules on abatement or

 1-9     prevention of pollution and the prevention of injury to the public

1-10     health;

1-11                 (2)  meet the commission's minimum requirements for

1-12     on-site sewage disposal systems;  and

1-13                 (3)  include a written enforcement plan.

1-14           (b)  A local governmental entity in its order or resolution

1-15     may provide that a property owner may not connect an on-site sewage

1-16     disposal system with water, sewer, electricity, gas, or other

1-17     utility service if the on-site sewage disposal system does not

1-18     comply with a rule, requirement, or standard included in or adopted

1-19     by the order or resolution under this section.  If a local

1-20     governmental entity prohibits the connection of an on-site sewage

1-21     disposal system with water, sewer, electricity, gas, or other

1-22     utility service under this section, the person providing those

1-23     utility services may not connect the on-site sewage disposal system

1-24     with utility services until the person obtains written

 2-1     certification from the local governmental entity that the on-site

 2-2     sewage disposal system complies with the rules adopted under this

 2-3     section.

 2-4           (c)  If the order or resolution adopts more stringent

 2-5     standards for on-site sewage disposal systems than this chapter or

 2-6     the commission's standards and provides greater public health and

 2-7     safety protection, the authorized agent's order or resolution

 2-8     prevails over this chapter or the standards.

 2-9           (d) [(c)]  An authorized agent must obtain commission

2-10     approval of substantive amendments to the agent's order or

2-11     resolution if the  amendment results in a standard less stringent

2-12     than  standards adopted by the authorized agent that are subject to

2-13     Subsection (c).

2-14           SECTION 2.  Subchapter D, Chapter 366, Health and Safety

2-15     Code, is amended by adding Section 366.0515 to read as follows:

2-16           Sec. 366.0515.  PERFORMANCE BOND REQUIRED.  (a)  An

2-17     authorized agent or the commission may not approve a permit for an

2-18     on-site sewage disposal system unless the owner of the on-site

2-19     sewage disposal system has submitted to the permitting authority:

2-20                 (1)  a signed contract for the maintenance of the

2-21     on-site sewage disposal facility; and

2-22                 (2)  a performance bond obtained from the person with

2-23     whom the owner of the on-site sewage disposal facility has

2-24     contracted for maintenance of the facility.

2-25           (b)  A performance bond required by Subsection (a) must be:

2-26                 (1)  solely for the protection of the owner of the

2-27     on-site sewage disposal system;

 3-1                 (2)  conditioned on the faithful performance of the

 3-2     maintenance of the on-site sewage disposal system in accordance

 3-3     with plans, specifications, laws, regulations, and ordinances of

 3-4     the state and the authorized agent;

 3-5                 (3)  in an amount reasonably related to the cost that

 3-6     the owner of the on-site sewage disposal system  would incur if the

 3-7     maintenance company did not adhere to maintenance standards or

 3-8     comply with applicable statutes, rules, or ordinances;

 3-9                 (4)  executed by a corporate surety in accordance with

3-10     Section 1, Chapter 87, Acts of the 56th Legislature, Regular

3-11     Session, 1959 (Article 7.19-1, Vernon's Texas Insurance Code);

3-12                 (5)  in a form approved by the permitting authority;

3-13     and

3-14                 (6)  payable to the owner of the on-site sewage

3-15     disposal system.

3-16           (c)  If the owner of the on-site sewage disposal system

3-17     enters into a new maintenance contract or revises the original

3-18     maintenance contract, the owner must submit a copy of the new or

3-19     revised maintenance contract and a new performance bond to the

3-20     permitting authority not later than the 30th day after the date on

3-21     which the original contract terminates or is modified.

3-22           (d)  The permitting authority may establish and collect a

3-23     reasonable fee to cover the cost of administering the performance

3-24     bond program.

3-25           SECTION 3.  (a)  This Act takes effect September 1, 1997.

3-26           (b)  The change in law made by Section 366.0515, Health and

3-27     Safety Code, as added by this Act, applies only to an application

 4-1     for a permit for an on-site sewage disposal system that is filed on

 4-2     or after September 1, 1997, with the Texas Natural Resource

 4-3     Conservation Commission or with an authorized agent designated by

 4-4     the commission under Section 366.031, Health and Safety Code.

 4-5           SECTION 4.  The importance of this legislation and the

 4-6     crowded condition of the calendars in both houses create an

 4-7     emergency and an imperative public necessity that the

 4-8     constitutional rule requiring bills to be read on three several

 4-9     days in each house be suspended, and this rule is hereby suspended.