1-1     By:  Truan, Zaffirini                                 S.B. No. 1512

 1-2           (In the Senate - Filed March 13, 1997; March 20, 1997, read

 1-3     first time and referred to Committee on International Relations,

 1-4     Trade, and Technology; April 4, 1997, reported adversely, with

 1-5     favorable Committee Substitute by the following vote:  Yeas 8, Nays

 1-6     0; April 4, 1997, sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1512                   By:  Truan

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the provision of utility service in economically

1-11     distressed areas.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Section 212.012, Local Government Code, is

1-14     amended by amending Subsections (a), (c), and (d) and adding

1-15     Subsection (e) to read as follows:

1-16           (a)  Except as provided by Subsection (c), an [An] entity

1-17     described by Subsection (b) may not serve or connect any land with

1-18     water, sewer, electricity, gas, or other utility service unless the

1-19     entity has been presented with or otherwise holds a certificate

1-20     applicable to the land issued under Section 212.0115.

1-21           (c)  An entity described by Subsection (b) may serve or

1-22     connect land with water, sewer, electricity, gas, or other utility

1-23     service regardless of whether the entity is presented with or

1-24     otherwise holds a certificate applicable to the land issued under

1-25     Section 212.0115 if:

1-26                 (1)  the land is covered by a development plat approved

1-27     under Subchapter B or under an ordinance or rule relating to the

1-28     development plat;

1-29                 (2)  the land was first served or connected with

1-30     service by an entity described by Subsection (b)(1), (b)(2), or

1-31     (b)(3) before September 1, 1987;

1-32                 (3)  the land was first served or connected with

1-33     service by an entity described by Subsection (b)(4), (b)(5), or

1-34     (b)(6) before September 1, 1989; or

1-35                 (4)  a certificate has been issued by the municipal

1-36     authority that the land:

1-37                       (A)  before September 1, 1995, was sold or

1-38     conveyed  to the person requesting service by any means of

1-39     conveyance, including a contract for deed or executory contract;

1-40                       (B)  is located in a subdivision in which the

1-41     entity has previously provided service;

1-42                       (C)  is located outside the limits of the

1-43     municipality; and

1-44                       (D)  is located in an "affected county" as that

1-45     term is defined by Section 232.021.  [This section does not apply

1-46     to any area covered by a development plat duly approved under

1-47     Subchapter B or under an ordinance or rule relating to the

1-48     development plat.]

1-49           (d)  An entity described by Subsection (b) may provide

1-50     utility service to land described by Subsection (c)(4) only if the

1-51     person requesting service:

1-52                 (1)  is not the land's "subdivider," as that term is

1-53     defined by Section 232.021, or the subdivider's agent; and

1-54                 (2)  provides to the entity a certificate described in

1-55     Subsection (c)(4). To obtain such a certificate, the person

1-56     requesting service must provide to the municipal authority either:

1-57                       (A)  a copy of the means of conveyance or other

1-58     documents that show that the land was sold or conveyed to the

1-59     person before September 1, 1995; or

1-60                       (B)  a notarized affidavit that states that the

1-61     property was sold or conveyed to the person before September 1,

1-62     1995.

1-63           (e)  On request, the municipal authority shall provide to the

1-64     attorney general and any appropriate local, county, or state law

 2-1     enforcement official a copy of any document on which the municipal

 2-2     authority relied in determining the legality of providing service.

 2-3     [The prohibition established by Subsection (a)  applies only to

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

 2-5     first serves or first connects with services on or after September

 2-6     1, 1987.  The prohibition applies only to land that an entity

 2-7     described by Subsection (b)(4), (5), or (6) first serves or first

 2-8     connects with services on or after September 1, 1989.]

 2-9           SECTION 2.  Section 232.029, Local Government Code, is

2-10     amended to read as follows:

2-11           Sec. 232.029.  CONNECTION OF UTILITIES.  (a)  Except as

2-12     provided by Subsection (c) or Section 232.037(c), a utility may not

2-13     serve or connect any subdivided land with water or sewer services

2-14     unless the utility receives a certificate issued by the

2-15     commissioners court under Section 232.028(a) or receives a

2-16     determination from the commissioners court under Section

2-17     232.028(b)(1) that the plat has been reviewed and approved by the

2-18     commissioners court.

2-19           (b)  Except as provided by Subsection (c) or Section

2-20     232.037(c), a utility may not serve or connect any subdivided land

2-21     with electricity or gas unless the entity receives a determination

2-22     from the county commissioners court under Section 232.028(b)(2)

2-23     that adequate water and sewer services have been installed to

2-24     service the subdivision.

2-25           (c)  An electric, gas, water, or sewer service utility  may

2-26     serve or connect subdivided land with water, sewer, electricity,

2-27     gas, or other utility service regardless of whether the utility

2-28     receives a certificate issued by the commissioners court under

2-29     Section 232.028(a) or receives a determination from the

2-30     commissioners court under Section 232.028(b) if the utility is

2-31     provided with a certificate issued by the commissioners court

2-32     certifying that:

2-33                 (1)  before July 1, 1995,  the subdivided land was sold

2-34     or conveyed to the person requesting service by any means of

2-35     conveyance, including a contract for deed or  executory contract;

2-36     and

2-37                 (2)  the land is located in a subdivision in which the

2-38     utility has previously provided service.

2-39           (d)  A utility  may provide utility service to subdivided

2-40     land described by Subsection (c) only if the person requesting

2-41     service:

2-42                 (1)  is not the land's subdivider or the subdivider's

2-43     agent; and

2-44                 (2)  provides to the utility a certificate described in

2-45     Subsection (c) of this section.  To obtain such a certificate, the

2-46     person requesting services must provide to the commissioners court

2-47     either:

2-48                       (A)  a copy of the means of conveyance or other

2-49     documents that show that the land was sold or conveyed to the

2-50     person before July 1, 1995; or

2-51                       (B)  a notarized affidavit that states that the

2-52     property was sold or conveyed to the person before July 1, 1995.

2-53           (e)  On request, the commissioners court shall provide to the

2-54     attorney general and any appropriate local, county, or state law

2-55     enforcement official a copy of any document on which the

2-56     commissioners court relied in determining the legality of providing

2-57     service.  [The prohibition established by this section shall not

2-58     prohibit an electric or gas utility from providing electric or gas

2-59     utility connection or service to a lot being sold, conveyed, or

2-60     purchased through a contract for deed or executory contract or

2-61     other device by a subdivider prior to July 1, 1995, which is

2-62     located within a subdivision where the utility has previously

2-63     established service and was subdivided by a plat approved prior to

2-64     September 1, 1989.]

2-65           SECTION 3.  This Act takes effect September 1, 1997.

2-66           SECTION 4.  The importance of this legislation and the

2-67     crowded condition of the calendars in both houses create an

2-68     emergency and an imperative public necessity that the

2-69     constitutional rule requiring bills to be read on three several

 3-1     days in each house be suspended, and this rule is hereby suspended.

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