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