AN ACT 1-1 relating to the regulation of subdivisions in certain economically 1-2 distressed counties; providing civil and criminal penalties. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Chapter 232, Local Government Code, is amended by 1-5 adding Subchapter C to read as follows: 1-6 SUBCHAPTER C. ALTERNATE SUBDIVISION PLATTING REQUIREMENTS 1-7 IN CERTAIN OTHER ECONOMICALLY DISTRESSED COUNTIES 1-8 Sec. 232.071. APPLICABILITY. This subchapter applies only 1-9 to the subdivision of land located: 1-10 (1) outside a municipality or the extraterritorial 1-11 jurisdiction of a municipality; and 1-12 (2) in a county: 1-13 (A) eligible for financial assistance under 1-14 Section 15.407, Water Code, or Subchapter K, Chapter 17, Water 1-15 Code; and 1-16 (B) to which Subchapter B does not apply. 1-17 Sec. 232.072. PLAT REQUIRED. (a) The owner of a tract of 1-18 land that divides the tract in any manner that creates lots of five 1-19 acres or less intended for residential purposes must have a plat of 1-20 the subdivision prepared. A subdivision of a tract under this 1-21 section includes a subdivision of real property by any method of 1-22 conveyance, including a contract for deed, oral contract, contract 1-23 of sale, or other type of executory contract, regardless of whether 2-1 the subdivision is made by using a metes and bounds description. 2-2 (b) A plat required under this section must: 2-3 (1) include on the plat or have attached to the plat a 2-4 document containing a description of the water and sewer service 2-5 facilities that will be constructed or installed to service the 2-6 subdivision and a statement of the date by which the facilities 2-7 will be fully operable; and 2-8 (2) have attached to the plat a document prepared by 2-9 an engineer registered to practice in this state certifying that 2-10 the water and sewer service facilities described by the plat or the 2-11 document attached to the plat are in compliance with the model 2-12 rules adopted under Section 16.343, Water Code. 2-13 (c) A plat required under this section must be filed and 2-14 recorded with the county clerk of the county in which the tract is 2-15 located. The plat is subject to the filing and recording 2-16 provisions of Section 12.002, Property Code. 2-17 Sec. 232.073. APPROVAL BY COUNTY REQUIRED. A plat filed 2-18 under Section 232.072 is not valid unless the commissioners court 2-19 of the county in which the land is located approves the plat by an 2-20 order entered in the minutes of the court. The commissioners court 2-21 shall refuse to approve a plat if it does not meet the requirements 2-22 prescribed by or under this subchapter or if any bond required 2-23 under this subchapter is not filed with the county clerk. 2-24 Sec. 232.074. BOND REQUIREMENTS. (a) Unless a person has 2-25 completed the installation of all water and sewer service 3-1 facilities required by this subchapter on the date that person 3-2 applies for final approval of a plat under Section 232.073, the 3-3 commissioners court shall require the subdivider of the tract to 3-4 execute and maintain in effect a bond or, in the alternative, a 3-5 person may make a cash deposit in an amount the commissioners court 3-6 determines will ensure compliance with this subchapter. A person 3-7 may not meet the requirements of this subsection through the use of 3-8 a letter of credit unless that letter of credit is irrevocable and 3-9 issued by an institution guaranteed by the Federal Deposit 3-10 Insurance Corporation. The subdivider must comply with the 3-11 requirement before subdividing the tract. 3-12 (b) The bond must be conditioned on the construction or 3-13 installation of water and sewer service facilities that will be in 3-14 compliance with the model rules adopted under Section 16.343, Water 3-15 Code. 3-16 Sec. 232.075. WATER AND SEWER SERVICE EXTENSION. (a) The 3-17 commissioners court may extend, beyond the date specified on the 3-18 plat or on the document attached to the plat, the date by which the 3-19 water and sewer service facilities must be fully operable if the 3-20 commissioners court finds the extension is reasonable and not 3-21 contrary to the public interest. 3-22 (b) The commissioners court may not grant an extension under 3-23 Subsection (a) if it would allow an occupied residence to be 3-24 without water or sewer services. 3-25 Sec. 232.076. CERTIFICATION REGARDING COMPLIANCE WITH PLAT 4-1 REQUIREMENTS. (a) On the approval of a plat by the commissioners 4-2 court, the commissioners court shall issue to the person applying 4-3 for the approval a certificate stating that the plat has been 4-4 reviewed and approved by the commissioners court. 4-5 (b) On its own motion or on the written request of a 4-6 subdivider, an owner or resident of a lot in a subdivision, or an 4-7 entity that provides a utility service, the commissioners court 4-8 shall: 4-9 (1) determine whether a plat is required under this 4-10 subchapter for an identified tract of land that is located within 4-11 the jurisdiction of the county; and 4-12 (2) if a plat is required for the identified tract, 4-13 determine whether a plat has been reviewed and approved by the 4-14 commissioners court. 4-15 (c) The request made under Subsection (b) must adequately 4-16 identify the land that is the subject of the request. 4-17 (d) Whenever a request is made under Subsection (b), the 4-18 commissioners court shall issue the requesting party a written 4-19 certification of its determinations. 4-20 (e) The commissioners court shall make its determinations 4-21 within 20 days after the date it receives the request under 4-22 Subsection (b) and shall issue the certificate, if appropriate, 4-23 within 10 days after the date the determinations are made. 4-24 (f) The commissioners court may adopt rules it considers 4-25 necessary to administer its duties under this section. 5-1 Sec. 232.077. CONNECTION OF UTILITIES IN CERTAIN COUNTIES. 5-2 (a) This section applies only to a tract of land for which a plat 5-3 is required under this subchapter. 5-4 (b) An entity described by Subsection (c) may not serve or 5-5 connect any land with water, sewer, electricity, gas, or other 5-6 utility service unless the entity has been presented with or 5-7 otherwise holds a certificate applicable to the land issued under 5-8 Section 232.076 stating that a plat has been reviewed and approved 5-9 for the land. 5-10 (c) The prohibition established by Subsection (b) applies 5-11 only to: 5-12 (1) a municipality, and officials of the municipality, 5-13 that provides water, sewer, electricity, gas, or other utility 5-14 service; 5-15 (2) a municipally owned or municipally operated 5-16 utility that provides any of those services; 5-17 (3) a public utility that provides any of those 5-18 services; 5-19 (4) a water supply or sewer service corporation 5-20 organized and operating under Chapter 76, Acts of the 43rd 5-21 Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's 5-22 Texas Civil Statutes), that provides any of those services; 5-23 (5) a county that provides any of those services; and 5-24 (6) a special district or authority created by or 5-25 under state law that provides any of those services. 6-1 (d) The prohibition established by Subsection (b) applies 6-2 only to land that an entity described by Subsection (c) first 6-3 serves or first connects with services: 6-4 (1) between September 1, 1989, and June 16, 1995; or 6-5 (2) after the effective date of this subchapter. 6-6 Sec. 232.078. CONFLICT OF INTEREST; PENALTY. (a) In this 6-7 section, "subdivided tract" means a tract of land, as a whole, that 6-8 is subdivided into tracts or lots. The term does not mean an 6-9 individual lot in a subdivided tract of land. 6-10 (b) A person has an interest in a subdivided tract if the 6-11 person: 6-12 (1) has an equitable or legal ownership interest in 6-13 the tract; 6-14 (2) acts as a developer of the tract; 6-15 (3) owns voting stock or shares of a business entity 6-16 that: 6-17 (A) has an equitable or legal ownership interest 6-18 in the tract; or 6-19 (B) acts as a developer of the tract; or 6-20 (4) receives in a calendar year money or any thing of 6-21 value from a business entity described by Subdivision (3). 6-22 (c) A person also is considered to have an interest in a 6-23 subdivided tract if the person is related in the second degree by 6-24 consanguinity or affinity, as determined under Chapter 573, 6-25 Government Code, to a person who, under Subsection (b), has an 7-1 interest in the tract. 7-2 (d) If a member of the commissioners court has an interest 7-3 in a subdivided tract, the member shall file, before a vote or 7-4 decision regarding the approval of a plat for the tract, an 7-5 affidavit with the county clerk stating the nature and extent of 7-6 the interest and shall abstain from further participation in the 7-7 matter. The affidavit must be filed with the county clerk. 7-8 (e) A member of the commissioners court of a county commits 7-9 an offense if the member violates Subsection (d). An offense under 7-10 this subsection is a Class A misdemeanor. 7-11 (f) The finding by a court of a violation of this section 7-12 does not render voidable an action of the commissioners court 7-13 unless the measure would not have passed the commissioners court 7-14 but for the vote of the member who violated this section. 7-15 (g) A conviction under Subsection (e) constitutes official 7-16 misconduct by the member and is grounds for removal from office. 7-17 Sec. 232.079. CIVIL PENALTIES. (a) A subdivider or an 7-18 agent of a subdivider may not cause, suffer, allow, or permit a lot 7-19 to be sold in a subdivision if the subdivision has not been platted 7-20 as required by this subchapter. 7-21 (b) A subdivider who fails to provide, in the time and 7-22 manner described in the plat, for the construction or installation 7-23 of water or sewer service facilities described on the plat or on 7-24 the document attached to the plat or who otherwise violates this 7-25 subchapter or a rule or requirement adopted by the commissioners 8-1 court under this subchapter is subject to a civil penalty of not 8-2 less than $500 or more than $1,000 for each violation and for each 8-3 day of a continuing violation but not to exceed $5,000 each day and 8-4 shall also pay court costs, investigative costs, and attorney's 8-5 fees for the governmental entity bringing the suit. 8-6 (c) Venue for an action under this section is in a district 8-7 court of Travis County, a district court in the county in which the 8-8 defendant resides, or a district court in the county in which the 8-9 violation or threat of violation occurs. 8-10 Sec. 232.080. ENFORCEMENT. (a) The attorney general, or 8-11 the district attorney, criminal district attorney, or county 8-12 attorney, may take any action necessary in a court of competent 8-13 jurisdiction on behalf of the state or on behalf of residents to: 8-14 (1) enjoin the violation or threatened violation of 8-15 applicable model rules adopted under Section 16.343, Water Code; 8-16 (2) enjoin the violation or threatened violation of a 8-17 requirement of this subchapter or a rule adopted by the 8-18 commissioners court under this subchapter; 8-19 (3) recover civil or criminal penalties, attorney's 8-20 fees, litigation costs, and investigation costs; and 8-21 (4) require platting as required by this subchapter. 8-22 (b) During the pendency of any enforcement action brought, 8-23 any resident of the affected subdivision, or the attorney general, 8-24 district attorney, or county attorney on behalf of a resident, may 8-25 file a motion against the provider of utilities to halt termination 9-1 of preexisting utility services. The services may not be 9-2 terminated if the court makes an affirmative finding after hearing 9-3 the motion that termination poses a threat to public health or to 9-4 the health, safety, or welfare of the residents. This subsection 9-5 does not prohibit a provider of utilities from terminating services 9-6 under other law to a resident who has failed to timely pay for 9-7 services. 9-8 SECTION 2. The importance of this legislation and the 9-9 crowded condition of the calendars in both houses create an 9-10 emergency and an imperative public necessity that the 9-11 constitutional rule requiring bills to be read on three several 9-12 days in each house be suspended, and this rule is hereby suspended, 9-13 and that this Act take effect and be in force from and after its 9-14 passage, and it is so enacted. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 570 passed the Senate on March 26, 1997, by the following vote: Yeas 31, Nays 0. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 570 passed the House on May 13, 1997, by a non-record vote. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor