AN ACT

 1-1     relating to the provision of utility service in economically

 1-2     distressed areas.

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

 1-4           SECTION 1.  Section 212.012, Local Government Code, is

 1-5     amended by amending Subsections (a), (c), and (d) and by adding

 1-6     Subsections (e), (f), (g), and (h) to read as follows:

 1-7           (a)  Except as provided by Subsection (c), an [An] entity

 1-8     described by Subsection (b) may not serve or connect any land with

 1-9     water, sewer, electricity, gas, or other utility service unless the

1-10     entity has been presented with or otherwise holds a certificate

1-11     applicable to the land issued under Section 212.0115.

1-12           (c)  An entity described by Subsection (b) may serve or

1-13     connect land with water, sewer, electricity, gas, or other utility

1-14     service regardless of whether the entity is presented with or

1-15     otherwise holds a certificate applicable to the land issued under

1-16     Section 212.0115 if:

1-17                 (1)  the land is covered by a development plat approved

1-18     under Subchapter B or under an ordinance or rule relating to the

1-19     development plat;

1-20                 (2)  the land was first served or connected with

1-21     service by an entity described by Subsection (b)(1), (b)(2), or

1-22     (b)(3) before September 1, 1987;

1-23                 (3)  the land was first served or connected with

 2-1     service by an entity described by Subsection (b)(4), (b)(5), or

 2-2     (b)(6) before September 1, 1989; or

 2-3                 (4)  the municipal authority responsible for approving

 2-4     plats issues a certificate stating that:

 2-5                       (A)  the land, before September 1, 1995, was sold

 2-6     or conveyed to the person requesting service by any means of

 2-7     conveyance, including a contract for deed or executory contract;

 2-8                       (B)  the land is located in a subdivision in

 2-9     which the entity has previously provided service;

2-10                       (C)  the land is located outside the limits of

2-11     the municipality;

2-12                       (D)  the land is located in an "affected county"

2-13     as that term is defined by Section 232.021; and

2-14                       (E)  construction of a residence on the land,

2-15     evidenced by at least the existence of a completed foundation, was

2-16     begun on or before May 1, 1997.  [This section does not apply to

2-17     any area covered by a development plat duly approved under

2-18     Subchapter B or under an ordinance or rule relating to the

2-19     development plat.]

2-20           (d)  An entity described by Subsection (b) may provide

2-21     utility service to land described by Subsection (c)(4) only if the

2-22     person requesting service:

2-23                 (1)  is not the land's subdivider or the subdivider's

2-24     agent; and

2-25                 (2)  provides to the entity a certificate described by

 3-1     Subsection (c)(4).

 3-2           (e)  A person requesting service may obtain a certificate

 3-3     under Subsection (c)(4) only if the person provides to the

 3-4     municipal authority responsible for approving plats either:

 3-5                 (1)  a copy of the means of conveyance or other

 3-6     documents that show that the land was sold or conveyed to the

 3-7     person requesting service before September 1, 1995, and a notarized

 3-8     affidavit by that person that states that construction of a

 3-9     residence on the land, evidenced by at least the existence of a

3-10     completed foundation, was begun on or before May 1, 1997; or

3-11                 (2)  a notarized affidavit by the person requesting

3-12     service that states that the property was sold or conveyed to that

3-13     person before September 1, 1995, and that construction of a

3-14     residence on the land, evidenced by at least the existence of a

3-15     completed foundation, was begun on or before May 1, 1997.

3-16           (f)  On request, the municipal authority responsible for

3-17     approving plats shall provide to the attorney general and any

3-18     appropriate local, county, or state law enforcement official a copy

3-19     of any document on which the municipal authority relied in

3-20     determining the legality of providing service.

3-21           (g)  This section may not be construed to abrogate any civil

3-22     or criminal proceeding or prosecution or to waive any penalty

3-23     against a subdivider for a violation of a state or local law,

3-24     regardless of the date on which the violation occurred.

3-25           (h)  In this section:

 4-1                 (1)  "Foundation" means the lowest division of a

 4-2     residence, usually consisting of a masonry slab or a pier and beam

 4-3     structure, that is partly or wholly below the surface of the ground

 4-4     and on which the residential structure rests.

 4-5                 (2)  "Subdivider" has the meaning assigned by Section

 4-6     232.021.  [The prohibition established by Subsection (a)  applies

 4-7     only to land that an entity described by Subsection (b)(1), (2), or

 4-8     (3) first serves or first connects with services on or after

 4-9     September 1, 1987.  The prohibition applies only to land that an

4-10     entity described by Subsection (b)(4), (5), or (6) first serves or

4-11     first connects with services on or after September 1, 1989.]

4-12           SECTION 2.  Section 232.029, Local Government Code, is

4-13     amended to read as follows:

4-14           Sec. 232.029.  CONNECTION OF UTILITIES.  (a)  Except as

4-15     provided by Subsection (c) or Section 232.037(c), a utility may not

4-16     serve or connect any subdivided land with water or sewer services

4-17     unless the utility receives a certificate issued by the

4-18     commissioners court under Section 232.028(a) or receives a

4-19     determination from the commissioners court under Section

4-20     232.028(b)(1) that the plat has been reviewed and approved by the

4-21     commissioners court.

4-22           (b)  Except as provided by Subsection (c) or Section

4-23     232.037(c), a utility may not serve or connect any subdivided land

4-24     with electricity or gas unless the entity receives a determination

4-25     from the county commissioners court under Section 232.028(b)(2)

 5-1     that adequate water and sewer services have been installed to

 5-2     service the subdivision.

 5-3           (c)  An electric, gas, water, or sewer service utility  may

 5-4     serve or connect subdivided land with water, sewer, electricity,

 5-5     gas, or other utility service regardless of whether the utility

 5-6     receives a certificate issued by the commissioners court under

 5-7     Section 232.028(a) or receives a determination from the

 5-8     commissioners court under Section 232.028(b) if the utility is

 5-9     provided with a certificate issued by the commissioners court that

5-10     states that:

5-11                 (1)  before July 1, 1995, the subdivided land was sold

5-12     or conveyed to the person requesting service by any means of

5-13     conveyance, including a contract for deed or executory contract;

5-14                 (2)  the land is located in a subdivision in which the

5-15     utility has previously provided service; and

5-16                 (3)  construction of a residence on the land, evidenced

5-17     by at least the existence of a completed foundation, was begun on

5-18     or before May 1, 1997.

5-19           (d)  A utility  may provide utility service to subdivided

5-20     land described by Subsection (c) only if the person requesting

5-21     service:

5-22                 (1)  is not the land's subdivider or the subdivider's

5-23     agent; and

5-24                 (2)  provides to the utility a certificate described by

5-25     Subsection (c).

 6-1           (e)  A person requesting service may obtain a certificate

 6-2     under Subsection (c) only if the person provides to the

 6-3     commissioners court either:

 6-4                 (1)  a copy of the means of conveyance or other

 6-5     documents that show that the land was sold or conveyed to the

 6-6     person requesting service before July 1, 1995, and a notarized

 6-7     affidavit by that person that states that construction of a

 6-8     residence on the land, evidenced by at least the existence of a

 6-9     completed foundation, was begun on or before May 1, 1997; or

6-10                 (2)  a notarized affidavit by the person requesting

6-11     service that states that the property was sold or conveyed to that

6-12     person before July 1, 1995, and that construction of a residence on

6-13     the land, evidenced by at least the existence of a completed

6-14     foundation, was begun on or before May 1, 1997.

6-15           (f)  On request, the commissioners court shall provide to the

6-16     attorney general and any appropriate local, county, or state law

6-17     enforcement official a copy of any document on which the

6-18     commissioners court relied in determining the legality of providing

6-19     service.

6-20           (g)  This section may not be construed to abrogate any civil

6-21     or criminal proceeding or prosecution or to waive any penalty

6-22     against a subdivider for a violation of a state or local law,

6-23     regardless of the date on which the violation occurred.

6-24           (h)  The prohibition established by this section shall not

6-25     prohibit an electric or gas utility from providing electric or gas

 7-1     utility connection or service to a lot being sold, conveyed, or

 7-2     purchased through a contract for deed or executory contract or

 7-3     other device by a subdivider prior to July 1, 1995, which is

 7-4     located within a subdivision where the utility has previously

 7-5     established service and was subdivided by a plat approved prior to

 7-6     September 1, 1989.

 7-7           (i)  In this section, "foundation" means the lowest division

 7-8     of a residence, usually consisting of a masonry slab or a pier and

 7-9     beam structure, that is partly or wholly below the surface of the

7-10     ground and on which the residential structure rests.

7-11           SECTION 3.  This Act takes effect September 1, 1997.

7-12           SECTION 4.  The importance of this legislation and the

7-13     crowded condition of the calendars in both houses create an

7-14     emergency and an imperative public necessity that the

7-15     constitutional rule requiring bills to be read on three several

7-16     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1512 passed the Senate on

         April 9, 1997, by a viva-voce vote; and that the Senate concurred

         in House amendment on May 29, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1512 passed the House, with

         amendment, on May 26, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor