75R11896 CBH-F                          

         By Truan                                              S.B. No. 1512

         Substitute the following for S.B. No. 1512:

         By Howard                                         C.S.S.B. No. 1512

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the provision of utility service in economically

 1-3     distressed areas.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 212.012, Local Government Code, is

 1-6     amended by amending Subsections (a), (c), and (d) and by adding

 1-7     Subsections (e), (f), (g), and (h) to read as follows:

 1-8           (a)  Except as provided by Subsection (c), an [An] entity

 1-9     described by Subsection (b) may not serve or connect any land with

1-10     water,  sewer, electricity, gas, or other utility service unless

1-11     the entity has been presented with or otherwise holds a certificate

1-12     applicable to the land issued under Section 212.0115.

1-13           (c)  An entity described by Subsection (b) may serve or

1-14     connect land with water, sewer, electricity, gas, or other utility

1-15     service  regardless of whether the entity is presented with or

1-16     otherwise holds a certificate applicable to the land issued under

1-17     Section 212.0115 if:

1-18                 (1)  the land is covered by a development plat approved

1-19     under Subchapter B or under an ordinance or rule relating to the

1-20     development plat;

1-21                 (2)  the land was first served or connected with

1-22     service by an entity described by Subsection (b)(1), (b)(2), or

1-23     (b)(3) before September 1, 1987;

1-24                 (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

2-26     Subsection (c)(4).

2-27           (e)  A person requesting service may obtain a certificate

 3-1     under Subsection (c)(4) only if the person provides to the

 3-2     municipal authority responsible for approving plats either:

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

 3-4     documents that show that the land was sold or conveyed to the

 3-5     person requesting service before September 1, 1995, and a notarized

 3-6     affidavit by that person that states that construction of a

 3-7     residence on the land, evidenced by at least the existence of a

 3-8     completed foundation, was begun on or before May 1, 1997; or

 3-9                 (2)  a notarized affidavit by the person requesting

3-10     service that states that the property was sold or conveyed to that

3-11     person before September 1, 1995, and that construction of a

3-12     residence on the land, evidenced by at least the existence of a

3-13     completed foundation, was begun on or before May 1, 1997.

3-14           (f)  On request, the municipal authority responsible for

3-15     approving plats shall provide to the attorney general and any

3-16     appropriate local, county, or state law enforcement official a copy

3-17     of any document on which the municipal authority relied in

3-18     determining the legality of providing service.

3-19           (g)  This section may not be construed to abrogate any civil

3-20     or criminal proceeding or prosecution or to waive any penalty

3-21     against a subdivider for a violation of a state or local law,

3-22     regardless of the date on which the violation occurred.

3-23           (h)  In this section:

3-24                 (1)  "Foundation" means the lowest division of a

3-25     residence, usually consisting of a masonry slab or a pier and beam

3-26     structure, that is partly or wholly below the surface of the ground

3-27     and on which the residential structure rests.

 4-1                 (2)  "Subdivider" has the meaning assigned by Section

 4-2     232.021.  [The prohibition established by Subsection (a)  applies

 4-3     only to land that an entity described by  Subsection (b)(1), (2),

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

 4-5     September 1, 1987.  The prohibition applies only to land that an

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

 4-7     first connects with services on or after September 1, 1989.]

 4-8           SECTION 2.  Section 232.029, Local Government Code, is

 4-9     amended to read as follows:

4-10           Sec. 232.029.  CONNECTION OF UTILITIES.  (a)  Except as

4-11     provided by Subsection (c) or Section 232.037(c), a utility may not

4-12     serve or connect any subdivided land with water or sewer services

4-13     unless the utility receives a certificate issued by the

4-14     commissioners court under Section 232.028(a) or receives a

4-15     determination from the commissioners court under Section

4-16     232.028(b)(1) that the plat has been reviewed and approved by the

4-17     commissioners  court.

4-18           (b)  Except as provided by Subsection (c) or Section

4-19     232.037(c), a utility may not serve or connect any subdivided land

4-20     with  electricity or gas unless the entity receives a determination

4-21     from the county commissioners court under Section 232.028(b)(2)

4-22     that adequate water and sewer services have been installed to

4-23     service the subdivision.

4-24           (c)  An electric, gas, water, or sewer service utility  may

4-25     serve or connect subdivided land with water, sewer, electricity,

4-26     gas, or  other utility service regardless of whether the utility

4-27     receives a certificate issued by the commissioners court under

 5-1     Section 232.028(a) or receives a determination from the

 5-2     commissioners court under Section 232.028(b) if the utility is

 5-3     provided with a certificate issued by the commissioners court that

 5-4     states that:

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

 5-6     or conveyed to the person requesting service by any means of

 5-7     conveyance, including a contract for deed or executory contract;

 5-8                 (2)  the land is located in a subdivision in which the

 5-9     utility has previously provided service; and

5-10                 (3)  construction of a residence on the land, evidenced

5-11     by at least the existence of a completed foundation, was begun on

5-12     or before May 1, 1997.

5-13           (d)  A utility  may provide utility service to subdivided

5-14     land described by Subsection (c) only if the person requesting

5-15     service:

5-16                 (1)  is not the land's subdivider or the subdivider's

5-17     agent; and

5-18                 (2)  provides to the utility a certificate described by

5-19     Subsection (c).

5-20           (e)  A person requesting service may obtain a certificate

5-21     under Subsection (c) only if the person provides to the

5-22     commissioners court either:

5-23                 (1)  a copy of the means of conveyance or other

5-24     documents that show that the land was sold or conveyed to the

5-25     person requesting service before July 1, 1995, and a notarized

5-26     affidavit by that person that states that construction of a

5-27     residence on the land, evidenced by at least the existence of a

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

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

 6-3     service that states that the property was sold or conveyed to that

 6-4     person before July 1, 1995, and that construction of a residence on

 6-5     the land, evidenced by at least the existence of a completed

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

 6-7           (f)  On request, the commissioners court shall provide to the

 6-8     attorney general and any appropriate local, county, or state law

 6-9     enforcement official a copy of any document on which the

6-10     commissioners court relied in determining the legality of providing

6-11     service.

6-12           (g)  This section may not be construed to abrogate any civil

6-13     or criminal proceeding or prosecution or to waive any penalty

6-14     against a subdivider for a violation of a state or local law,

6-15     regardless of the date on which the violation occurred.

6-16           (h)  The prohibition established by this section shall not

6-17     prohibit an electric or gas utility from providing  electric or gas

6-18     utility connection or service to a lot being sold, conveyed, or

6-19     purchased through a contract for deed or executory contract or

6-20     other device by a subdivider prior to July 1, 1995, which is

6-21     located within a subdivision where the utility has previously

6-22     established service and was subdivided by a plat approved prior to

6-23     September 1, 1989.

6-24           (i)  In this section, "foundation" means the lowest division

6-25     of a residence, usually consisting of a masonry slab or a pier and

6-26     beam structure, that is partly or wholly below the surface of the

6-27     ground and on which the residential structure rests.

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

 7-2           SECTION 4.  The importance of this legislation and the

 7-3     crowded condition of the calendars in both houses create an

 7-4     emergency and an imperative public necessity that the

 7-5     constitutional rule requiring bills to be read on three several

 7-6     days in each house be suspended, and this rule is hereby suspended.