AN ACT
 1-1     relating to the regulation of the subdivision or development of
 1-2     land in certain economically distressed areas, including colonias,
 1-3     and certain other areas; providing penalties.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 103.001, Local Government Code, is
 1-6     amended to read as follows:
 1-7           Sec. 103.001.  ANNUAL AUDIT; FINANCIAL STATEMENT.  (a)  A
 1-8     municipality shall have its records and accounts audited annually
 1-9     and shall have an annual financial statement prepared based on the
1-10     audit.
1-11           (b)  A municipality subject to Section 16.356, Water Code,
1-12     must include in its financial statement a specific report on
1-13     compliance with that section.
1-14           SECTION 2.  Section 212.012, Local Government Code, is
1-15     amended to read as follows:
1-16           Sec. 212.012.  CONNECTION OF UTILITIES.  (a)  Except as
1-17     provided by Subsection (c), an entity described by Subsection (b)
1-18     may not serve or connect any land with water, sewer, electricity,
1-19     gas, or other utility service unless the entity has been presented
1-20     with or otherwise holds a certificate applicable to the land issued
1-21     under Section 212.0115.
1-22           (b)  The prohibition established by Subsection (a)  applies
1-23     only to:
1-24                 (1)  a municipality and officials of a municipality
 2-1     that provides water, sewer, electricity, gas, or other utility
 2-2     service;
 2-3                 (2)  a municipally owned or municipally operated
 2-4     utility that provides any of those services;
 2-5                 (3)  a public utility that provides any of those
 2-6     services;
 2-7                 (4)  a water supply or sewer service corporation
 2-8     organized and operating under Chapter 67, Water Code [76, Acts of
 2-9     the 43rd Legislature, 1st Called Session, 1933 (Article 1434a,
2-10     Vernon's Texas Civil Statutes)], that provides any of those
2-11     services;
2-12                 (5)  a county that provides any of those services; and
2-13                 (6)  a special district or authority created by or
2-14     under state law that provides any of those services.
2-15           (c)  An entity described by Subsection (b) may serve or
2-16     connect land with water, sewer, electricity, gas, or other utility
2-17     service regardless of whether the entity is presented with or
2-18     otherwise holds a certificate applicable to the land issued under
2-19     Section 212.0115 if:
2-20                 (1)  the land is covered by a development plat approved
2-21     under Subchapter B or under an ordinance or rule relating to the
2-22     development plat;
2-23                 (2)  the land was first served or connected with
2-24     service by an entity described by Subsection (b)(1), (b)(2), or
2-25     (b)(3) before September 1, 1987;
2-26                 (3)  the land was first served or connected with
 3-1     service by an entity described by Subsection (b)(4), (b)(5), or
 3-2     (b)(6) before September 1, 1989; or
 3-3                 (4)  the municipal authority responsible for approving
 3-4     plats issues a certificate stating that:
 3-5                       (A)  the land:
 3-6                             (i)  [,] before September 1, 1995, was sold
 3-7     or conveyed to the person requesting service by any means of
 3-8     conveyance, including a contract for deed or executory contract;
 3-9                             (ii) [(B)  the land] is located in a
3-10     subdivision in which the entity has previously provided service;
3-11                             (iii) [(C)  the land] is located outside
3-12     the limits of the municipality;
3-13                             (iv) [(D)  the land] is located in a county
3-14     to which Subchapter B, Chapter 232, applies [an "affected county"
3-15     as that term is defined by Section 232.021]; and
3-16                             (v)  is the site of [(E)]  construction of
3-17     a residence [on the land], evidenced by at least the existence of a
3-18     completed foundation, that was begun on or before May 1, 1997; or
3-19                       (B)  the land was not subdivided after September
3-20     1, 1995, and:
3-21                             (i)  water service is available within 750
3-22     feet of the subdivided land; or
3-23                             (ii)  water service is available more than
3-24     750 feet from the subdivided land and the extension of water
3-25     service to the land may be feasible, subject to a final
3-26     determination by the water service provider.
 4-1           (d)  An entity described by Subsection (b) may provide
 4-2     utility service to land described by Subsection (c)(4)(A) only if
 4-3     the person requesting service:
 4-4                 (1)  is not the land's subdivider or the subdivider's
 4-5     agent; and
 4-6                 (2)  provides to the entity a certificate described by
 4-7     Subsection (c)(4)(A).
 4-8           (e)  A person requesting service may obtain a certificate
 4-9     under Subsection (c)(4)(A) only if the person provides to the
4-10     municipal authority responsible for approving plats either:
4-11                 (1)  a copy of the means of conveyance or other
4-12     documents that show that the land was sold or conveyed to the
4-13     person requesting service before September 1, 1995, and a notarized
4-14     affidavit by that person that states that construction of a
4-15     residence on the land, evidenced by at least the existence of a
4-16     completed foundation, was begun on or before May 1, 1997; or
4-17                 (2)  a notarized affidavit by the person requesting
4-18     service that states that the property was sold or conveyed to that
4-19     person before September 1, 1995, and that construction of a
4-20     residence on the land, evidenced by at least the existence of a
4-21     completed foundation, was begun on or before May 1, 1997.
4-22           (f)  A person requesting service may obtain a certificate
4-23     under Subsection (c)(4)(B) only if the person provides to the
4-24     municipal authority responsible for approving plats an affidavit
4-25     that states that the property was not sold or conveyed to that
4-26     person from a subdivider or the subdivider's agent after September
 5-1     1, 1995.
 5-2           (g)  On request, the municipal authority responsible for
 5-3     approving plats shall provide to the attorney general and any
 5-4     appropriate local, county, or state law enforcement official a copy
 5-5     of any document on which the municipal authority relied in
 5-6     determining the legality of providing service.
 5-7           (h) [(g)]  This section may not be construed to abrogate any
 5-8     civil or criminal proceeding or prosecution or to waive any penalty
 5-9     against a subdivider for a violation of a state or local law,
5-10     regardless of the date on which the violation occurred.
5-11           (i) [(h)]  In this section:
5-12                 (1)  "Foundation" means the lowest division of a
5-13     residence, usually consisting of a masonry slab or a pier and beam
5-14     structure, that is partly or wholly below the surface of the ground
5-15     and on which the residential structure rests.
5-16                 (2)  "Subdivider" has the meaning assigned by Section
5-17     232.021.
5-18           SECTION 3.  The heading to Subchapter B, Chapter 232, Local
5-19     Government Code, is amended to read as follows:
5-20       SUBCHAPTER B.  SUBDIVISION PLATTING REQUIREMENTS IN COUNTY NEAR
5-21           INTERNATIONAL BORDER [ECONOMICALLY DISTRESSED COUNTIES]
5-22           SECTION 4.  Section 232.021, Local Government Code, is
5-23     amended to read as follows:
5-24           Sec. 232.021.  DEFINITIONS.  In this subchapter:
5-25                 (1)  ["Affected county" means a county:]
5-26                       [(A)  that has a per capita income that averaged
 6-1     25 percent below the state average for the most recent three
 6-2     consecutive years for which statistics are available and an
 6-3     unemployment rate that averaged 25 percent above the state average
 6-4     for the most recent three consecutive years for which statistics
 6-5     are available; and]
 6-6                       [(B)  any part of which is within 50 miles of an
 6-7     international border.]
 6-8                 [(2)]  "Board" means the Texas Water Development Board.
 6-9                 (2) [(3)]  "Common promotional plan" means any plan or
6-10     scheme of operation undertaken by a single subdivider or a group of
6-11     subdividers acting in concert, either personally or through an
6-12     agent, to offer for sale or lease lots when the land is:
6-13                       (A)  contiguous or part of the same area of land;
6-14     or
6-15                       (B)  known, designated, or advertised as a common
6-16     unit or by a common name.
6-17                 (3) [(4)]  "Executive administrator" means the
6-18     executive administrator of the Texas Water Development Board.
6-19                 (4) [(5)]  "Floodplain" means any area in the 100-year
6-20     floodplain that is susceptible to being inundated by water from any
6-21     source or [and] that is identified by the Federal Emergency
6-22     Management Agency under the National Flood Insurance Act of 1968
6-23     (42 U.S.C. Sections 4001 through 4127).
6-24                 (5) [(6)]  "Lease" includes an offer to lease.
6-25                 (6) [(7)]  "Lot" means a parcel into which land that is
6-26     intended for residential use is divided.
 7-1                 (7) [(8)]  "Minimum state standards" means the minimum
 7-2     standards set out for:
 7-3                       (A)  adequate drinking water by or under Section
 7-4     16.343(b)(1), Water Code;
 7-5                       (B)  adequate sewer facilities by or under
 7-6     Section 16.343(c)(1), Water Code; or
 7-7                       (C)  the treatment, disposal, and management of
 7-8     solid waste by or under Chapters 361 and 364, Health and Safety
 7-9     Code.
7-10                 (8) [(9)]  "Plat" means a map, chart, survey, plan, or
7-11     replat containing a description of the subdivided land with ties to
7-12     permanent landmarks or monuments.
7-13                 (9) [(10)]  "Sell" includes an offer to sell.
7-14                 (10) [(11)]  "Sewer," "sewer services," or "sewer
7-15     facilities" means treatment works as defined by Section 17.001,
7-16     Water Code, or individual, on-site, or cluster treatment systems
7-17     such as septic tanks and includes drainage facilities and other
7-18     improvements for proper functioning of septic tank systems.
7-19                 (11) [(12)]  "Subdivide" means to divide the surface
7-20     area of land into lots intended primarily for residential use.
7-21                 (12) [(13)]  "Subdivider" means an individual, firm,
7-22     corporation, or other legal entity that owns any interest in land
7-23     and that directly or indirectly subdivides land into lots as part
7-24     of a common promotional plan in the ordinary course of business.
7-25                 (13) [(14)]  "Subdivision" means an area of land that
7-26     has been subdivided into lots for sale or lease.
 8-1                 (14) [(15)]  "Utility" means a person, including a
 8-2     legal entity or political subdivision, that provides the services
 8-3     of:
 8-4                       (A)  an electric utility, as defined by Section
 8-5     31.002, Utilities Code [3(c)(1), Public Utility Regulatory Act
 8-6     (Article 1446c, Vernon's Texas Civil Statutes)];
 8-7                       (B)  a gas utility, as defined by Section
 8-8     101.003, Utilities Code [1.03, Gas Utility Regulatory Act (Article
 8-9     1446e, Vernon's Texas Civil Statutes)]; and
8-10                       (C)  a water and sewer utility, as defined by
8-11     Section 13.002, Water Code.
8-12           SECTION 5.  Section 232.022, Local Government Code, is
8-13     amended to read as follows:
8-14           Sec. 232.022.  APPLICABILITY.  (a)  This subchapter applies
8-15     only to a county any part of which is located within 50 miles of an
8-16     international border.
8-17           (b)  This subchapter applies only to land that is subdivided
8-18     into two [four] or more lots that are intended primarily for
8-19     residential use in the jurisdiction of the [an affected] county.  A
8-20     lot is presumed to be intended for residential use if the lot is
8-21     five acres or less.  This subchapter does not apply if the
8-22     subdivision is incident to the conveyance of the land as a gift
8-23     between persons related to each other within the third degree by
8-24     affinity or consanguinity, as determined under Chapter 573,
8-25     Government Code.
8-26           (c) [(b)]  For purposes of this section, land is considered
 9-1     to be in the jurisdiction of a county if the land is located in the
 9-2     county and[,] outside the corporate limits of municipalities[, and
 9-3     outside the extraterritorial jurisdiction of municipalities, as
 9-4     determined under Chapter 42].
 9-5           SECTION 6.  Subsection (a), Section 232.023, Local Government
 9-6     Code, is amended to read as follows:
 9-7           (a)  A subdivider of land [in an affected county] must have a
 9-8     plat of the subdivision prepared.  A subdivision of a tract under
 9-9     this subsection includes a subdivision of real property by any
9-10     method of conveyance, including a contract for deed, oral contract,
9-11     contract of sale, or other type of executory contract, regardless
9-12     of whether the subdivision is made by using a metes and bounds
9-13     description.
9-14           SECTION 7.  Section 232.024, Local Government Code, is
9-15     amended by adding Subsection (d) to read as follows:
9-16           (d)  The commissioners court of the county in which the land
9-17     is located may establish a planning commission as provided by
9-18     Subchapter D.  The planning commission, including its findings and
9-19     decisions, is subject to the same provisions applicable to the
9-20     commissioners court under this subchapter, including Section
9-21     232.034 relating to conflicts of interest.
9-22           SECTION 8.  Subsection (c), Section 232.026, Local Government
9-23     Code, is amended to read as follows:
9-24           (c)  If the commissioners court provides an extension, the
9-25     commissioners court shall notify the attorney general of the
9-26     extension and the reason for the extension.  The attorney general
 10-1    shall notify all other state agencies having enforcement power over
 10-2    subdivisions [in affected counties] of the extension.
 10-3          SECTION 9.  Section 232.029, Local Government Code, is
 10-4    amended by amending Subsections (c), (d), and (e), adding a new
 10-5    Subsection (f), and relettering Subsections (f), (g), (h), and (i)
 10-6    as Subsections (g), (h), (i), and (j) to read as follows:
 10-7          (c)  An electric, gas, water, or sewer service utility may
 10-8    serve or connect subdivided land with water, sewer, electricity,
 10-9    gas, or other utility service regardless of whether the utility
10-10    receives a certificate issued by the commissioners court under
10-11    Section 232.028(a) or receives a determination from the
10-12    commissioners court under Section 232.028(b) if the utility is
10-13    provided with a certificate issued by the commissioners court that
10-14    states that:
10-15                (1)  [before July 1, 1995,] the subdivided land:
10-16                      (A)  before September 1, 1995, was sold or
10-17    conveyed to the person requesting service by any means of
10-18    conveyance, including a contract for deed or executory contract;
10-19                      (B) [(2)  the land] is located in a subdivision
10-20    in which the utility has previously provided service; and
10-21                      (C)  is the site of [(3)]  construction of a
10-22    residence [on the land], evidenced by at least the existence of a
10-23    completed foundation, that was begun on or before May 1, 1997; or
10-24                (2)  the land was not subdivided after September 1,
10-25    1995, and:
10-26                      (A)  water service is available within 750 feet
 11-1    of the subdivided land; or
 11-2                      (B)  water service is available more than 750
 11-3    feet from the subdivided land and the extension of water service to
 11-4    the land may be feasible, subject to a final determination by the
 11-5    water service provider.
 11-6          (d)  A utility may provide utility service to subdivided land
 11-7    described by Subsection (c)(1) only if the person requesting
 11-8    service:
 11-9                (1)  is not the land's subdivider or the subdivider's
11-10    agent; and
11-11                (2)  provides to the utility a certificate described by
11-12    Subsection (c)(1).
11-13          (e)  A person requesting service may obtain a certificate
11-14    under Subsection (c)(1) only if the person provides to the
11-15    commissioners court either:
11-16                (1)  a copy of the means of conveyance or other
11-17    documents that show that the land was sold or conveyed to the
11-18    person requesting service before September [July] 1, 1995, and a
11-19    notarized affidavit by that person that states that construction of
11-20    a residence on the land, evidenced by at least the existence of a
11-21    completed foundation, was begun on or before May 1, 1997; or
11-22                (2)  a notarized affidavit by the person requesting
11-23    service that states that the property was sold or conveyed to that
11-24    person before September [July] 1, 1995, and that construction of a
11-25    residence on the land, evidenced by at least the existence of a
11-26    completed foundation, was begun on or before May 1, 1997.
 12-1          (f)  A person requesting service may obtain a certificate
 12-2    under Subsection (c)(2) only if the person provides to the
 12-3    commissioners court an affidavit that states that the property was
 12-4    not sold or conveyed to that person from a subdivider or the
 12-5    subdivider's agent after September 1, 1995.
 12-6          (g)  On request, the commissioners court shall provide to the
 12-7    attorney general and any appropriate local, county, or state law
 12-8    enforcement official a copy of any document on which the
 12-9    commissioners court relied in determining the legality of providing
12-10    service.
12-11          (h) [(g)]  This section may not be construed to abrogate any
12-12    civil or criminal proceeding or prosecution or to waive any penalty
12-13    against a subdivider for a violation of a state or local law,
12-14    regardless of the date on which the violation occurred.
12-15          (i) [(h)]  The prohibition established by this section shall
12-16    not prohibit an electric or gas utility from providing electric or
12-17    gas utility connection or service to a lot being sold, conveyed, or
12-18    purchased through a contract for deed or executory contract or
12-19    other device by a subdivider prior to July 1, 1995, which is
12-20    located within a subdivision where the utility has previously
12-21    established service and was subdivided by a plat approved prior to
12-22    September 1, 1989.
12-23          (j) [(i)]  In this section, "foundation" means the lowest
12-24    division of a residence, usually consisting of a masonry slab or a
12-25    pier and beam structure, that is partly or wholly below the surface
12-26    of the ground and on which the residential structure rests.
 13-1          SECTION 10.  Subsection (b), Section 232.030, Local
 13-2    Government Code, is amended to read as follows:
 13-3          (b)  Except as provided by Section 16.350(d), Water Code, or
 13-4    Section 232.042 or 232.043, the commissioners court may not grant a
 13-5    variance or adopt regulations that waive any requirements of this
 13-6    subchapter.
 13-7          SECTION 11.  Subchapter B, Chapter 232, Local Government
 13-8    Code, is amended by adding Section 232.0305 to read as follows:
 13-9          Sec. 232.0305.  COUNTY INSPECTOR.  (a)  The commissioners
13-10    court may impose a fee on a subdivider of property under this
13-11    subchapter for an inspection of the property to ensure compliance
13-12    with the subdivision regulations adopted under this subchapter,
13-13    Section 16.343, Water Code, or other law.
13-14          (b)  Fees collected under this section may be used only to
13-15    fund inspections conducted under this section.
13-16          SECTION 12.  Subsection (b), Section 232.035, Local
13-17    Government Code, is amended to read as follows:
13-18          (b)  Notwithstanding any other remedy at law or equity, a
13-19    subdivider or an agent of a subdivider may not cause, suffer,
13-20    allow, or permit any part of a subdivision [in an affected county]
13-21    over which the subdivider or an agent of the subdivider has
13-22    control, or a right of ingress and egress, to become a public
13-23    health nuisance as defined by Section 341.011, Health and Safety
13-24    Code.
13-25          SECTION 13.  Subsection (a), Section 232.037, Local
13-26    Government Code, is amended to read as follows:
 14-1          (a)  The attorney general, or the district attorney, criminal
 14-2    district attorney, county attorney with felony responsibilities, or
 14-3    county attorney of the [an affected] county may take any action
 14-4    necessary in a court of competent jurisdiction on behalf of the
 14-5    state or on behalf of residents to:
 14-6                (1)  enjoin the violation or threatened violation of
 14-7    the model rules adopted under Section 16.343, Water Code;
 14-8                (2)  enjoin the violation or threatened violation of a
 14-9    requirement of this subchapter or a rule adopted by the
14-10    commissioners court under this subchapter;
14-11                (3)  recover civil or criminal penalties, attorney's
14-12    fees, litigation costs, and investigation costs; and
14-13                (4)  require platting or replatting under Section
14-14    232.040.
14-15          SECTION 14.  Section 232.037, Local Government Code, is
14-16    amended by adding Subsection (d) to read as follows:
14-17          (d)  This subchapter is subject to the applicable enforcement
14-18    provisions prescribed by Sections 16.352, 16.353, 16.354, and
14-19    16.3545, Water Code.
14-20          SECTION 15.  Section 232.038, Local Government Code, is
14-21    amended to read as follows:
14-22          Sec. 232.038.  SUIT BY PRIVATE PERSON IN ECONOMICALLY
14-23    DISTRESSED AREA.  A person who has purchased or is purchasing a lot
14-24    after July 1, 1995, in a subdivision for residential purposes that
14-25    does not have water and sewer services as required by this
14-26    subchapter and is located in an economically distressed area, as
 15-1    defined by Section 17.921, Water Code, [in an affected county,]
 15-2    from a subdivider, may bring suit in the district court in which
 15-3    the property is located or in a district court in Travis County to:
 15-4                (1)  declare the sale of the property void and require
 15-5    the subdivider to return the purchase price of the property; and
 15-6                (2)  recover from the subdivider:
 15-7                      (A)  the market value of any permanent
 15-8    improvements the person placed on the property;
 15-9                      (B)  actual expenses incurred as a direct result
15-10    of the failure to provide adequate water and sewer facilities;
15-11                      (C)  court costs; and
15-12                      (D)  reasonable attorney's fees.
15-13          SECTION 16.  Subsection (a), Section 232.039, Local
15-14    Government Code, is amended to read as follows:
15-15          (a)  A subdivider of land [in an affected county] may apply
15-16    to the commissioners court to cancel all or part of the subdivision
15-17    in the manner provided by Section 232.008 after notice and hearing
15-18    as provided by this section.
15-19          SECTION 17.  Subsection (c), Section 232.040, Local
15-20    Government Code, is amended to read as follows:
15-21          (c)  Subsection (b) does not apply if a seller other than a
15-22    subdivider or agent of a subdivider[:]
15-23                [(1)]  resides on the lot[; or]
15-24                [(2)  purchases the lot through a contract for deed].
15-25          SECTION 18.  The heading to Section 232.042, Local Government
15-26    Code, is amended to read as follows:
 16-1          Sec. 232.042.  VARIANCES FROM REPLATTING REQUIREMENTS.
 16-2          SECTION 19.  Subchapter B, Chapter 232, Local Government
 16-3    Code, is amended by adding Section 232.043 to read as follows:
 16-4          Sec. 232.043.  VARIANCES FROM PLATTING REQUIREMENTS.  (a)  On
 16-5    the request of a subdivider who created an unplatted subdivision or
 16-6    a resident purchaser of a lot in the subdivision, the commissioners
 16-7    court of a county may grant:
 16-8                (1)  a delay or variance from compliance with the
 16-9    subdivision requirements prescribed by Section 232.023(b)(8) or
16-10    (9), 232.025(1), (2), (3), (4), or (5), or 232.030(c)(2), (3), (5),
16-11    or (6); or
16-12                (2)  a delay or variance for an individual lot from
16-13    compliance with the requirements prescribed by the model
16-14    subdivision rules adopted under Section 16.343, Water Code, for:
16-15                      (A)  the distance that a structure must be set
16-16    back from roads or property lines; or
16-17                      (B)  the number of single-family, detached
16-18    dwellings that may be located on a lot.
16-19          (b)  If the commissioners court makes a written finding that
16-20    the subdivider who created the unplatted subdivision no longer owns
16-21    property in the subdivision, the commissioners court may grant a
16-22    delay or variance under this section only if:
16-23                (1)  a majority of the lots in the subdivision were
16-24    sold before September 1, 1995;
16-25                (2)  a majority of the resident purchasers in the
16-26    subdivision sign a petition supporting the delay or variance;
 17-1                (3)  the person requesting the delay or variance
 17-2    submits to the commissioners court:
 17-3                      (A)  a description of the water and sewer service
 17-4    facilities that will be constructed or installed to service the
 17-5    subdivision;
 17-6                      (B)  a statement specifying the date by which the
 17-7    water and sewer service facilities will be fully operational; and
 17-8                      (C)  a statement signed by an engineer licensed
 17-9    in this state certifying that the plans for the water and sewer
17-10    facilities meet the minimum state standards;
17-11                (4)  the commissioners court finds that the unplatted
17-12    subdivision at the time the delay or variance is requested is
17-13    developed in a manner and to an extent that compliance with
17-14    specific platting requirements is impractical or contrary to the
17-15    health or safety of the residents of the subdivision; and
17-16                (5)  the subdivider who created the unplatted
17-17    subdivision has not violated local law, federal law, or state law,
17-18    excluding this chapter, in subdividing the land for which the delay
17-19    or variance is requested, if the subdivider is the person
17-20    requesting the delay or variance.
17-21          (c)  If the commissioners court makes a written finding that
17-22    the subdivider who created the unplatted subdivision owns property
17-23    in the subdivision, the commissioners court may grant a provisional
17-24    delay or variance only if the requirements of Subsection (b) are
17-25    satisfied.  The commissioners court may issue a final grant of the
17-26    delay or variance only if the commissioners court has not received
 18-1    objections from the attorney general before the 91st day after the
 18-2    date the commissioners court submits the record of its proceedings
 18-3    to the attorney general as prescribed by Subsection (d).
 18-4          (d)  If the commissioners court grants a delay or variance
 18-5    under this section, the commissioners court shall:
 18-6                (1)  make findings specifying the reason compliance
 18-7    with each requirement is impractical or contrary to the health or
 18-8    safety of residents of the subdivision;
 18-9                (2)  keep a record of its proceedings and include in
18-10    the record documentation of the findings and the information
18-11    submitted under Subsection (b); and
18-12                (3)  submit a copy of the record to the attorney
18-13    general.
18-14          (e)  The failure of the attorney general to comment or object
18-15    to a delay or variance granted under this section does not
18-16    constitute a waiver of or consent to the validity of the delay or
18-17    variance granted.
18-18          (f)  This section does not affect a civil suit filed against,
18-19    a criminal prosecution of, or the validity of a penalty imposed on
18-20    a subdivider for a violation of law, regardless of the date on
18-21    which the violation occurred.
18-22          SECTION 20.  The heading to Subchapter C, Chapter 232, Local
18-23    Government Code, is amended to read as follows:
18-24      SUBCHAPTER C.  [ALTERNATE] SUBDIVISION PLATTING REQUIREMENTS IN
18-25             CERTAIN [OTHER] ECONOMICALLY DISTRESSED COUNTIES
18-26          SECTION 21.  Section 232.071, Local Government Code, is
 19-1    amended to read as follows:
 19-2          Sec. 232.071.  APPLICABILITY.  This subchapter applies only
 19-3    to the subdivision of land located:
 19-4                (1)  outside the corporate limits of a municipality [or
 19-5    the extraterritorial jurisdiction of a municipality]; and
 19-6                (2)  in a county:
 19-7                      (A)  eligible for financial assistance under
 19-8    Section 15.407, Water Code, or Subchapter K, Chapter 17, Water
 19-9    Code; and
19-10                      (B)  to which Subchapter B does not apply.
19-11          SECTION 22.  Section 232.073, Local Government Code, is
19-12    amended to read as follows:
19-13          Sec. 232.073.  APPROVAL BY COUNTY REQUIRED.  (a)  A plat
19-14    filed under Section 232.072 is not valid unless the commissioners
19-15    court of the county in which the land is located approves the plat
19-16    by an order entered in the minutes of the court.  The commissioners
19-17    court shall refuse to approve a plat if it does not meet the
19-18    requirements prescribed by or under this subchapter or if any bond
19-19    required under this subchapter is not filed with the county clerk.
19-20          (b)  The commissioners court of the county in which the land
19-21    is located may establish a planning commission as provided by
19-22    Subchapter D.  The planning commission, including its findings and
19-23    decisions, is subject to the same provisions applicable to the
19-24    commissioners court under this subchapter, including Section
19-25    232.078 relating to conflicts of interest.
19-26          SECTION 23.  Subchapter C, Chapter 232, Local Government
 20-1    Code, is amended by adding Section 232.0775 to read as follows:
 20-2          Sec. 232.0775.  COUNTY INSPECTOR.  (a)  The commissioners
 20-3    court may impose a fee on a subdivider of property under this
 20-4    subchapter for an inspection of the property to ensure compliance
 20-5    with the subdivision regulations adopted under this subchapter,
 20-6    Section 16.343, Water Code, or other law.
 20-7          (b)  Fees collected under this section may be used only to
 20-8    fund inspections conducted under this section.
 20-9          SECTION 24.  Section 232.080, Local Government Code, is
20-10    amended by adding Subsection (c) to read as follows:
20-11          (c)  This subchapter is subject to the applicable enforcement
20-12    provisions prescribed by Sections 16.352, 16.353, 16.354, and
20-13    16.3545, Water Code.
20-14          SECTION 25.  Chapter 232, Local Government Code, is amended
20-15    by adding Subchapter D to read as follows:
20-16                 SUBCHAPTER D.  COUNTY PLANNING COMMISSION
20-17          Sec. 232.091.  APPLICABILITY.  This subchapter applies only
20-18    to a county:
20-19                (1)  authorized to establish a planning commission
20-20    under Subchapter B or C; and
20-21                (2)  in which the commissioners court by order elects
20-22    to operate under this subchapter.
20-23          Sec. 232.092.  ESTABLISHMENT AND ABOLITION OF PLANNING
20-24    COMMISSION.  (a)  To promote the general public welfare, the
20-25    commissioners court of a county by order may:
20-26                (1)  establish a planning commission under this
 21-1    section; and
 21-2                (2)  abolish a planning commission established under
 21-3    this section.
 21-4          (b)  The commissioners court may authorize the planning
 21-5    commission to act on behalf of the commissioners court in matters
 21-6    relating to:
 21-7                (1)  the duties and authority of the commissioners
 21-8    court under Subchapter A, B, or C; and
 21-9                (2)  land use, health and safety, planning and
21-10    development, or other enforcement provisions specifically
21-11    authorized by law.
21-12          (c)  If the commissioners court establishes a planning
21-13    commission, the commissioners court by order shall adopt reasonable
21-14    rules and procedures necessary to administer this subchapter.
21-15          (d)  This subchapter does not grant a commissioners court or
21-16    a planning commission the power to regulate the use of property for
21-17    which a permit has been issued to engage in a federally licensed
21-18    activity.
21-19          Sec. 232.093.  APPOINTMENT OF MEMBERS OF PLANNING COMMISSION.
21-20    (a)  The commissioners court may appoint a planning commission
21-21    consisting of five members.  Members are appointed for staggered
21-22    terms of two years.
21-23          (b)  A person appointed as a member of the planning
21-24    commission must be a citizen of the United States and reside in the
21-25    county.
21-26          (c)  The commissioners court shall file with the county clerk
 22-1    a certificate of appointment for each commission member.
 22-2          (d)  The commissioners court shall fill any vacancy on the
 22-3    commission.
 22-4          (e)  Before a planning commission member undertakes the
 22-5    duties of the office, the member must:
 22-6                (1)  take the official oath; and
 22-7                (2)  swear in writing that the member will promote the
 22-8    interest of the county as a whole and not only a private interest
 22-9    or the interest of a special group or location in the county.
22-10          (f)  A member of the planning commission serves at the
22-11    pleasure of the commissioners court and is subject to removal as
22-12    provided by Chapter 87.
22-13          Sec. 232.094.  FINANCIAL DISCLOSURE.  (a)  A member of the
22-14    planning commission shall file a financial disclosure report in the
22-15    same manner as required for county officers under Subchapter B,
22-16    Chapter 159.
22-17          (b)  If the commissioners court of the county in which the
22-18    planning commission member serves has not adopted a financial
22-19    disclosure reporting system under Subchapter B, Chapter 159, the
22-20    planning commission member shall file a financial disclosure report
22-21    in the same manner as required for county officers under Subchapter
22-22    A, Chapter 159.
22-23          Sec. 232.095.  OFFICERS, QUORUM, AND MEETINGS.  (a)  At the
22-24    first meeting of each calendar year, the planning commission shall
22-25    elect a presiding officer and assistant presiding officer.  The
22-26    presiding officer presides over the meetings and executes all
 23-1    documentation required on behalf of the planning commission.  The
 23-2    assistant presiding officer represents the presiding officer during
 23-3    the presiding officer's absence.
 23-4          (b)  There is no limitation on the number of terms a member
 23-5    may serve on the commission.
 23-6          (c)  Minutes of the planning commission's proceedings must be
 23-7    filed with the county clerk or other county officer or employee
 23-8    designated by the commissioners court.  The minutes of the planning
 23-9    commission's proceedings are a public record.
23-10          (d)  The planning commission is subject to Chapters 551 and
23-11    552, Government Code.
23-12          (e)  The planning commission may adopt rules necessary to
23-13    administer this subchapter.  Rules adopted under this subsection
23-14    are subject to approval by the commissioners court.
23-15          Sec. 232.096.  TIMELY APPROVAL OF PLATS.  (a)  The planning
23-16    commission shall issue a written list of the documentation and
23-17    other information that must be submitted with a plat application.
23-18    The documentation or other information must relate to a requirement
23-19    authorized by law.  An application submitted to the planning
23-20    commission that contains the documents and other information on the
23-21    list is considered complete.
23-22          (b)  If a person submits an incomplete plat application to
23-23    the planning commission, the planning commission or its designee
23-24    shall, not later than the 15th business day after the date the
23-25    planning commission or its designee receives the application,
23-26    notify the applicant of the missing documents or other information.
 24-1    The planning commission or its designee shall allow an applicant to
 24-2    timely submit the missing documents or other information.
 24-3          (c)  An application is considered complete on the date all
 24-4    documentation and other information required by Subsection (a) is
 24-5    received by the planning commission.
 24-6          (d)  If the approval of the plat is within the exclusive
 24-7    jurisdiction of the planning commission, the planning commission
 24-8    shall take final action on a plat application, including the
 24-9    resolution of all appeals, not later than the 60th day after the
24-10    date a completed plat application is received by the planning
24-11    commission.
24-12          (e)  The time period prescribed by Subsection (d) may be
24-13    extended for:
24-14                (1)  a reasonable period if requested by the applicant;
24-15    and
24-16                (2)  an additional 60 days if the county is required
24-17    under Chapter 2007, Government Code, to perform a takings impact
24-18    assessment in connection with a plat submitted for approval.
24-19          (f)  The planning commission may not compel an applicant to
24-20    waive the time limits prescribed by this section.
24-21          (g)  If the planning commission fails to take final action on
24-22    the completed plat application as required by this section, the
24-23    applicant may apply to a district court in the county in which the
24-24    land is located for a mandamus order to compel the planning
24-25    commission to approve or disapprove the plat.  A planning
24-26    commission subject to a mandamus order under this subsection shall
 25-1    make a decision approving or disapproving the plat not later than
 25-2    the 20th business day after the date a copy of the mandamus order
 25-3    is served on the presiding officer of the planning commission.  If
 25-4    the planning commission approves the plat, the planning commission,
 25-5    within the 20-day period prescribed by this subsection, shall:
 25-6                (1)  refund the greater of the unexpended portion of
 25-7    any plat application fee or deposit or 50 percent of a plat
 25-8    application fee or deposit that has been paid;
 25-9                (2)  determine the appropriate amount of any bond or
25-10    other financial guarantee required in connection with the plat
25-11    approval; and
25-12                (3)  issue documents recognizing the plat's approval.
25-13          (h)  Except as provided by this subsection, an approval of a
25-14    plat by the planning commission is final on the 31st day after the
25-15    date the planning commission votes to approve the plat.  On the
25-16    request of a county commissioner, the commissioners court shall
25-17    review a plat approved by the planning commission not later than
25-18    the 30th day after the date the planning commission votes to
25-19    approve the plat.  The commissioners court may disapprove the plat
25-20    if the plat fails to comply with state law or rules adopted by the
25-21    county or the planning commission.  If the commissioners court
25-22    fails to take action within the 30-day period prescribed by this
25-23    subsection, the decision of the planning commission is final.
25-24          (i)  In this section, "business day" means a day other than a
25-25    Saturday, Sunday, or holiday recognized by this state.
25-26          Sec. 232.097.  REASONS FOR DISAPPROVAL OF PLAT REQUIRED.  If
 26-1    the planning commission refuses to approve a plat, the planning
 26-2    commission shall provide to the person requesting approval a notice
 26-3    specifying the reason for the disapproval.
 26-4          SECTION 26.  Subsections (a) and (c), Section 242.001, Local
 26-5    Government Code, are amended to read as follows:
 26-6          (a)  This section applies only to a county operating under
 26-7    Sections 232.001-232.005 or Subchapter B or C, Chapter 232.
 26-8          (c)  In the extraterritorial jurisdiction of a municipality,
 26-9    the municipality may regulate subdivisions under Subchapter A of
26-10    Chapter 212 and other statutes applicable to municipalities, and
26-11    the county may regulate subdivisions under Sections
26-12    232.001-232.005, Subchapter B or C, Chapter 232, and other statutes
26-13    applicable to counties.  If a municipal regulation conflicts with a
26-14    county regulation, the more stringent provisions prevail.
26-15          SECTION 27.  Subsection (d), Section 12.002, Property Code,
26-16    is amended to read as follows:
26-17          (d)  Except in the case of a subdivision located in a county
26-18    to which Subchapter B, Chapter 232 [an "affected county," as
26-19    defined by Section 232.021], Local Government Code, applies,
26-20    Subsection (c) does not apply to using a subdivision's description
26-21    in a contract to convey real property before the plat or replat of
26-22    the subdivision is approved and is filed for record with the county
26-23    clerk if:
26-24                (1)  the conveyance is expressly contingent on approval
26-25    and recording of the final plat; and
26-26                (2)  the purchaser is not given use or occupancy of the
 27-1    real property conveyed before the recording of the final plat.
 27-2          SECTION 28.  Subchapter D, Chapter 5, Water Code, is amended
 27-3    by adding Section 5.124 to read as follows:
 27-4          Sec. 5.124.  AUTHORITY TO AWARD GRANTS.  (a)  With the
 27-5    consent of the commission, the executive director may award grants
 27-6    for any purpose regarding resource conservation or environmental
 27-7    protection in accordance with this section.
 27-8          (b)  The commission by rule shall establish procedures for
 27-9    awarding a grant, for making any determination related to awarding
27-10    a grant, and for making grant payments.
27-11          (c)  Each activity funded by a grant must directly relate to
27-12    a purpose specified in the grant.  A grant may be awarded only for
27-13    a purpose consistent with the commission's jurisdiction and
27-14    purposes under law, including:
27-15                (1)  the development or implementation of a
27-16    comprehensive conservation and management plan under Section 320,
27-17    Federal Water Pollution Control Act (33 U.S.C. Section 1330), for a
27-18    designated national estuary in this state;
27-19                (2)  a demonstration project that involves new
27-20    techniques for pollution prevention, energy or resource
27-21    conservation, or waste management;
27-22                (3)  an environmental purpose identified in a federal
27-23    grant that is intended as a pass-through grant;
27-24                (4)  development or improvement of monitoring or
27-25    modeling techniques for water or air quality;
27-26                (5)  support of a local air pollution program; or
 28-1                (6)  a study or program related to efforts to  prevent
 28-2    an area that is near nonattainment with federal air quality
 28-3    standards from reaching nonattainment status.
 28-4          (d)  A grant may be awarded to any person that meets the
 28-5    eligibility requirements of the grant.  The executive director
 28-6    shall establish eligibility requirements for each grant appropriate
 28-7    to the purposes of and activities under the grant and the method of
 28-8    selecting the recipient.
 28-9          (e)  Selection of grant recipients must be by solicitation of
28-10    a proposal or application except as provided by Subsections (f) and
28-11    (g).  The executive director may specify any selection criterion
28-12    the executive director considers relevant to the grant.  Selection
28-13    criteria must address:
28-14                (1)  evaluation and scoring of:
28-15                      (A)  fiscal controls;
28-16                      (B)  project effectiveness;
28-17                      (C)  project cost; and
28-18                      (D)  previous experience with grants and
28-19    contracts; and
28-20                (2)  the possibility and method of making multiple
28-21    awards.
28-22          (f)  A grant may be made by direct award only if:
28-23                (1)  the executive director determines that:
28-24                      (A)  selection of recipients by the solicitation
28-25    of proposals or applications is not feasible; and
28-26                      (B)  awarding the grant directly is in the best
 29-1    interest of the state;
 29-2                (2)  eligibility for the grant is limited to:
 29-3                      (A)  an agency or political subdivision of this
 29-4    state or of another state;
 29-5                      (B)  a state institution of higher learning of
 29-6    this state or of another state, including any part or service of
 29-7    the institution; or
 29-8                      (C)  an agency of the United States; or
 29-9                (3)  the grant is awarded to a person established or
29-10    authorized to develop or implement a comprehensive conservation and
29-11    management plan under Section 320, Federal Water Pollution Control
29-12    Act (33 U.S.C. Section 1330), for a national estuary in this state.
29-13          (g)  If a solicitation of a proposal is made for the purpose
29-14    of identifying a partner for a joint application for a federal
29-15    grant that is subsequently awarded to the commission, the executive
29-16    director is not required to make an additional solicitation for
29-17    entering into a pass-through grant with an identified partner.
29-18          (h)  The executive director shall publish information
29-19    regarding a solicitation related to a grant to be awarded under
29-20    this section on the commission's electronic business daily in the
29-21    manner provided by Section 2155.074, Government Code, as added by
29-22    Section 1, Chapter 508, Acts of the 75th Legislature, Regular
29-23    Session, 1997.
29-24          (i)  For a grant awarded under this section, the commission
29-25    may use:
29-26                (1)  money appropriated for grant-making purposes;
 30-1                (2)  federal money granted for making pass-through
 30-2    grants; and
 30-3                (3)  state or federal grant money appropriated for a
 30-4    purpose that the executive director determines is consistent with a
 30-5    purpose of the grant from the commission.
 30-6          SECTION 29.  Subdivision (26), Section 13.002, Water Code, is
 30-7    amended to read as follows:
 30-8                (26)  "Affected county" is a county to which Subchapter
 30-9    B, Chapter 232 [has the meaning assigned by Section 232.021], Local
30-10    Government Code, applies.
30-11          SECTION 30.  Section 13.241, Water Code, is amended by adding
30-12    Subsection (e) to read as follows:
30-13          (e)  The commission by rule shall develop a standardized
30-14    method for determining under Section 13.246(f) which of two or more
30-15    retail public utilities or water supply or sewer service
30-16    corporations that apply for a certificate of public convenience and
30-17    necessity to provide water or sewer utility service to an
30-18    uncertificated area located in an economically distressed area is
30-19    more capable financially, managerially, and technically of
30-20    providing continuous and adequate service.  In this subsection,
30-21    "economically distressed area" has the meaning assigned by Section
30-22    15.001.
30-23          SECTION 31.  Section 13.246, Water Code, is amended by
30-24    amending Subsection (e) and adding Subsections (f) and (g) to read
30-25    as follows:
30-26          (e)  Where applicable, in addition to the other factors in
 31-1    this section the commission shall consider the efforts of the
 31-2    applicant:
 31-3                (1)  to extend service to any economically distressed
 31-4    areas located within the service areas certificated to the
 31-5    applicant; and
 31-6                (2)  to enforce the rules adopted under Section 16.343.
 31-7    [For the purposes of this subsection, "economically distressed
 31-8    area" has the meaning assigned by Section 15.001.]
 31-9          (f)  If two or more retail public utilities or water supply
31-10    or sewer service corporations apply for a certificate of public
31-11    convenience and necessity to provide water or sewer utility service
31-12    to an uncertificated area located in an economically distressed
31-13    area and otherwise meet the requirements for obtaining a new
31-14    certificate, the commission shall grant the certificate to the
31-15    retail public utility or water supply or sewer service corporation
31-16    that is more capable financially, managerially, and technically of
31-17    providing continuous and adequate service.
31-18          (g)  In this section, "economically distressed area" has the
31-19    meaning assigned by Section 15.001.
31-20          SECTION 32.  Section 15.407, Water Code, is amended by adding
31-21    new Subsections (c) and (d), relettering existing Subsections (c),
31-22    (d), (e), (f), and (g) as Subsections (e), (f), (g), (h), and (i),
31-23    and adding Subsection (j) to read as follows:
31-24          (c)  The selection process used by a political subdivision to
31-25    procure engineering services necessary for facility engineering is
31-26    subject to review by and approval of the executive administrator.
 32-1    The executive administrator may assist a political subdivision in
 32-2    the selection of the provider of engineering services necessary for
 32-3    facility engineering in economically distressed areas.
 32-4          (d)  The board shall adopt rules governing the procurement of
 32-5    facility engineering services by a political subdivision awarded
 32-6    funds under this subchapter and may adopt other rules necessary to
 32-7    carry out the board's powers and duties under this subchapter.
 32-8          (e)  A political subdivision that desires money from the
 32-9    research and planning fund for facility engineering in an
32-10    economically distressed area shall submit a written application to
32-11    the board in the manner and form required by board rules.
32-12          (f) [(d)]  The application shall include:
32-13                (1)  the name of the political subdivision;
32-14                (2)  a citation to the laws under which the political
32-15    subdivision was created and is operating;
32-16                (3)  the amount requested from the board for facility
32-17    engineering in an economically distressed area; and
32-18                (4)  any other information required by the board in its
32-19    rules or specifically requested by the board.
32-20          (g) [(e)]  After notice and hearing, the board may award the
32-21    applicant all or part of the requested funds that are considered
32-22    necessary by the board for the political subdivision to carry out
32-23    adequate facility engineering in an economically distressed area.
32-24          (h) [(f)]  If the board grants an application under this
32-25    section and awards funds for facility engineering in an
32-26    economically distressed area, the board shall enter into a contract
 33-1    with the political subdivision that includes:
 33-2                (1)  a detailed statement of the purpose for which the
 33-3    money is to be used;
 33-4                (2)  the total amount of money to be paid from the
 33-5    research and planning fund under the contract; and
 33-6                (3)  any other terms and conditions required by board
 33-7    rules or agreed to by the contracting parties.
 33-8          (i) [(g)]  If, after submission of an application under this
 33-9    section, a county has an increase in average per capita income or a
33-10    decrease in unemployment rate average so that the county no longer
33-11    meets the definition of an affected county in Section 16.341, the
33-12    political subdivision that submits the application continues to be
33-13    eligible for the funds under this section, and the board shall
33-14    process the application for facility engineering and, if the
33-15    application is approved, shall provide funds for the facility
33-16    engineering plan to the political subdivision.
33-17          (j)  If the board determines that planning activities
33-18    undertaken by a political subdivision for which the board has
33-19    committed funds under this subchapter have been inadequate or not
33-20    completed in a timely manner, the board may terminate the contract
33-21    with the political subdivision and on behalf of and in consultation
33-22    with the political subdivision may perform or contract for facility
33-23    engineering in the economically distressed area.
33-24          SECTION 33.  Subdivision (2), Section 16.341, Water Code, is
33-25    amended to read as follows:
33-26                (2)  "Economically distressed area" means an area in
 34-1    which:
 34-2                      (A)  water supply or sewer services are
 34-3    inadequate to meet minimal needs of residential users as defined by
 34-4    board rules;
 34-5                      (B)  financial resources are inadequate to
 34-6    provide water supply or sewer services that will satisfy those
 34-7    needs; and
 34-8                      (C)  an established residential subdivision was
 34-9    located [80 percent of the dwellings covered by an application for
34-10    funds or financial assistance were occupied] on June 1, 1989, as
34-11    determined by the board.
34-12          SECTION 34.  Subsection (a), Section 16.343, Water Code, is
34-13    amended to read as follows:
34-14          (a)  The board [Texas Natural Resource Conservation
34-15    Commission] shall, [in conjunction with the board and] after
34-16    consultation with the attorney general and the commission, prepare
34-17    and adopt model rules to assure that minimum standards for safe and
34-18    sanitary water supply and sewer services in residential areas of
34-19    political subdivisions, including rules of any state agency
34-20    relating to septic tanks and other waste disposal systems, are met.
34-21          SECTION 35.  Subsection (b), Section 16.345, Water Code, is
34-22    amended to read as follows:
34-23          (b)  In addition to any other authority to issue bonds or
34-24    other obligations or incur any debt, an affected county or another
34-25    [a] political subdivision, other than a nonprofit water supply
34-26    corporation, eligible for financial assistance under Subchapter K,
 35-1    Chapter 17, of this code may issue bonds payable from and secured
 35-2    by a pledge of the revenues derived or to be derived from the
 35-3    operation of water supply or sewer service systems for the purpose
 35-4    of acquiring, constructing, improving, extending, or repairing
 35-5    water supply or sewer facilities.  The bonds shall be issued in
 35-6    accordance with and an affected county or another [a] political
 35-7    subdivision may exercise the powers granted by:  Articles 1111
 35-8    through 1118, Revised Statutes; Chapters 249 and 250, Acts of the
 35-9    51st Legislature, Regular Session, 1949 (Articles 1111a and 1111b,
35-10    Vernon's Texas Civil Statutes); Chapter 428, Acts of the 52nd
35-11    Legislature, 1951 (Article 1111c, Vernon's Texas Civil Statutes);
35-12    Chapter 122, Acts of the 43rd Legislature, Regular Session, 1933
35-13    (Articles 1114a, 1114b, and 1114c, Vernon's Texas Civil Statutes);
35-14    and Chapter 56, Acts of the 45th Legislature, 2nd Called Session,
35-15    1937 (Article 1114d, Vernon's Texas Civil Statutes); by the Bond
35-16    Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil
35-17    Statutes); by Chapter 656, Acts of the 68th Legislature, Regular
35-18    Session, 1983 (Article 717q, Vernon's Texas Civil Statutes); and by
35-19    other laws of the state.
35-20          SECTION 36.  Subchapter J, Chapter 16, Water Code, is amended
35-21    by adding Sections 16.352, 16.353, 16.3535, 16.354, and 16.3545 to
35-22    read as follows:
35-23          Sec. 16.352.  ENFORCEMENT OF RULES.  A person who violates a
35-24    rule adopted by a municipality or county under this subchapter or
35-25    under Subchapter B or C, Chapter 232, Local Government Code, is
35-26    liable to the municipality or county for a civil penalty of not
 36-1    less than $500 and not more than $1,000 for each violation and for
 36-2    each day of a violation.  The maximum civil penalty that may accrue
 36-3    each day is $5,000.  The appropriate attorney representing the
 36-4    municipality or county may sue to collect the penalty.  The
 36-5    recovered penalty shall be deposited in the general fund of the
 36-6    municipality or county.
 36-7          Sec. 16.353.  INJUNCTION.  (a)  In addition to any other
 36-8    remedy, the attorney general, the municipal attorney of the
 36-9    municipality in which a violation under Section 16.352 occurs, or
36-10    the county or district attorney of the county in which a violation
36-11    under Section 16.352 occurs may apply to a district court for, and
36-12    the district court may grant, the state or the political
36-13    subdivision an appropriate prohibitory or mandatory order,
36-14    including a temporary restraining order or a temporary or permanent
36-15    injunction, enjoining a violation of this subchapter, the rules
36-16    described by Section 16.352, or Subchapter B or C, Chapter 232,
36-17    Local Government Code.
36-18          (b)  An injunction issued under this section may be issued
36-19    without the requirement of a bond or other undertaking.
36-20          Sec. 16.3535.  DAMAGES.  In addition to any other remedy, the
36-21    attorney general, the municipal attorney of the municipality in
36-22    which a violation under Section 16.352 occurs, or the county or
36-23    district attorney of the county in which a violation under Section
36-24    16.352 occurs may apply to a district court for, and the district
36-25    court may grant, monetary damages to cover the cost of enforcing
36-26    this subchapter, rules adopted under this subchapter, or Subchapter
 37-1    B or C, Chapter 232, Local Government Code.
 37-2          Sec. 16.354.  ATTORNEY GENERAL ENFORCEMENT.  In addition to
 37-3    the ability of any political subdivision to enforce this
 37-4    subchapter, the attorney general may file suit to:
 37-5                (1)  enforce a rule adopted under Section 16.350;
 37-6                (2)  recover a civil penalty under Section 16.352;
 37-7                (3)  obtain injunctive relief under Section 16.353;
 37-8                (4)  recover damages under Section 16.3535;
 37-9                (5)  enforce a political subdivision's rules, recover
37-10    any penalty, recover any damages, and obtain any injunctive relief;
37-11    or
37-12                (6)  recover attorney's fees, investigative costs, and
37-13    court costs.
37-14          Sec. 16.3545.  VENUE.  A suit brought under this subchapter
37-15    for injunctive relief or the recovery of a civil penalty or damages
37-16    may be brought in a district court in:
37-17                (1)  the county in which the defendant resides;
37-18                (2)  the county in which the alleged violation or
37-19    threat of violation occurs; or
37-20                (3)  Travis County.
37-21          SECTION 37.  Subchapter J, Chapter 16, Water Code, is amended
37-22    by adding Section 16.356 to read as follows:
37-23          Sec. 16.356.  USE OF REVENUE FROM OPERATION OF WATER SUPPLY
37-24    OR SEWER SERVICE PROJECTS.  (a)  A political subdivision that
37-25    receives financial assistance from the economically distressed
37-26    areas program under Subchapter K, Chapter 17, may not use any
 38-1    revenue received from fees collected from a water supply or sewer
 38-2    service constructed in whole or in part from funds from the
 38-3    economically distressed areas program account for purposes other
 38-4    than utility purposes.  The annual financial statement prepared by
 38-5    a municipality under Section 103.001, Local Government Code, must
 38-6    include a specific report on compliance with this section.
 38-7          (b)  At the request of the board or on the attorney general's
 38-8    own initiative, the attorney general may file suit to enjoin an
 38-9    actual or threatened violation of this section.
38-10          SECTION 38.  Subdivision (1) Section 17.921, Water Code, is
38-11    amended to read as follows:
38-12                (1)  "Economically distressed area" means an area in
38-13    which:
38-14                      (A)  water supply or sewer services are
38-15    inadequate to meet minimal needs of residential users as defined by
38-16    board rules;
38-17                      (B)  financial resources are inadequate to
38-18    provide water supply or sewer services that will satisfy those
38-19    needs; and
38-20                      (C)  an established residential subdivision was
38-21    located [the percentage of the dwellings occupied] on June 1, 1989,
38-22    as determined by the board [to be served by financial assistance
38-23    under this subchapter was at least:]
38-24                            [(i)  80 percent; or]
38-25                            [(ii)  50 percent, if the services provided
38-26    by financial assistance under this subchapter can be provided by
 39-1    common or regional facilities in a cost-effective manner in
 39-2    conjunction with service provided to an economically distressed
 39-3    area as determined under the other provisions of this subdivision].
 39-4          SECTION 39.  Subsection (b), Section 17.927, Water Code, is
 39-5    amended to read as follows:
 39-6          (b)  The application and plan must:
 39-7                (1)  comply with board requirements;
 39-8                (2)  describe in detail the method for delivering water
 39-9    supply and sewer services and the persons to whom the services will
39-10    be provided;
39-11                (3)  describe the method for complying with minimum
39-12    state standards for water supply and sewer services adopted by the
39-13    board under Section 16.342 of this code;
39-14                (4)  include a budget that estimates the total cost of
39-15    providing water supply and sewer services to the economically
39-16    distressed area and a proposed schedule and method for repayment of
39-17    financial assistance consistent with board rules and guidelines;
39-18                (5)  describe existing water supply and sewer
39-19    facilities located in the economically distressed area and include
39-20    with the description:
39-21                      (A)  the county map required by Section 366.036,
39-22    Health and Safety Code; or
39-23                      (B)  a document prepared and certified by an
39-24    engineer registered to practice in this state describing the plan
39-25    for providing water supply and sewer services to the economically
39-26    distressed area;
 40-1                (6)  provide proof that the appropriate political
 40-2    subdivision has adopted the model rules developed under Section
 40-3    16.343 of this code;
 40-4                (7)  include information on the ability of potential
 40-5    customers to pay for the services provided by the project including
 40-6    composite data prepared by the applicant pursuant to board rules
 40-7    and guidelines from surveys of those potential customers covering
 40-8    income, family size, personal expenses, employment status, and
 40-9    other information required by board rule;
40-10                (8)  include an estimate of the per household cost of
40-11    providing the services contemplated by the project with supporting
40-12    data;
40-13                (9)  describe the procedures to be used to collect
40-14    money from residents who use the proposed water supply and sewer
40-15    services including procedures for collection of delinquent
40-16    accounts;
40-17                (10)  include a requirement that a contractor who
40-18    agrees to acquire, construct, extend, or provide water supply and
40-19    sewer services executes a performance bond in the amount of 100
40-20    percent of the contract price;
40-21                (11)  contain an agreement to comply with applicable
40-22    procurement procedures in contract awards for water supply and
40-23    sewer services;
40-24                (12)  if located in the service area of a retail public
40-25    utility or public utility that has a certificate of public
40-26    convenience and necessity under Chapter 13 of this code, include a
 41-1    document in the form of an affidavit signed by the chief executive
 41-2    officer of the utility, which shall cooperate with the political
 41-3    subdivision, stating that the utility does not object to the
 41-4    construction and operation of the services and facilities in its
 41-5    service area;
 41-6                (13)  include a map of the economically distressed area
 41-7    together with supporting information relating to dwellings in the
 41-8    area;
 41-9                (14)  describe in detail the methods for incorporating
41-10    water conservation into the provision of water and sewer services
41-11    to the economically distressed area; [and]
41-12                (15)  include, on request of the board, a written
41-13    determination by the commission on the managerial, financial, and
41-14    technical capacity of the applicant to operate the system for which
41-15    assistance is being requested; and
41-16                (16)  include any other information required by the
41-17    board.
41-18          SECTION 40.  Subsections (b) and (c), Section 17.930, Water
41-19    Code, are amended to read as follows:
41-20          (b)  After making the considerations provided by Section
41-21    17.929 of this code, the board by resolution shall:
41-22                (1)  approve [or disapprove] the plan and application
41-23    as submitted;
41-24                (2)  approve the plan and application subject to the
41-25    requirements identified by the commission for the applicant to
41-26    obtain the managerial, financial, and technical capacity to operate
 42-1    the system and any other requirements the board considers
 42-2    appropriate;
 42-3                (3)  deny the application and identify the requirements
 42-4    or remedial steps the applicant must complete before the applicant
 42-5    may be reconsidered for financial assistance;
 42-6                (4)  if the board finds that the applicant will be
 42-7    unable to obtain the managerial, financial, or technical capacity
 42-8    to build and operate a system, deny the application and issue a
 42-9    determination that a service provider other than the applicant is
42-10    necessary or appropriate to undertake the proposed project; or
42-11                (5)  deny the application.
42-12          (c)  The board [and] shall notify the applicant in writing of
42-13    its decision.
42-14          (d) [(c)]  The board may require the applicant to provide
42-15    local funds in an amount approved by the board under this
42-16    subchapter, and the board shall provide the remaining funds from
42-17    the economically distressed areas account.
42-18          SECTION 41.  Subsection (b), Section 17.933, Water Code, is
42-19    amended to read as follows:
42-20          (b)  In providing financial assistance to an applicant under
42-21    this subchapter, the board may not provide to the applicant
42-22    financial assistance for which repayment is not required in an
42-23    amount that exceeds 50 percent of the total amount of the financial
42-24    assistance plus interest on any amount that must be repaid, unless
42-25    the Texas Department of Health [commission] issues a finding that a
42-26    nuisance dangerous to the public health and safety exists resulting
 43-1    from water supply and sanitation problems in the area to be served
 43-2    by the proposed project.  The board and the applicant shall provide
 43-3    to the Texas Department of Health [commission] information
 43-4    necessary to make a determination, and the board and the Texas
 43-5    Department of Health [commission] may enter into necessary
 43-6    memoranda of understanding to carry out this subsection.
 43-7          SECTION 42.  Subdivision (20), Section 26.001, Water Code, as
 43-8    added by Section 23, Chapter 979, Acts of the 74th Legislature,
 43-9    Regular Session, 1995, is amended to read as follows:
43-10                (20)  "Affected county" is a county to which Subchapter
43-11    B, Chapter 232 [has the meaning assigned by Section 232.021], Local
43-12    Government Code, applies.
43-13          SECTION 43.  Subdivision (26), Section 26.001, Water Code, as
43-14    added by Section 24, Chapter 979, Acts of the 74th Legislature,
43-15    Regular Session, 1995, is amended to read as follows:
43-16                (26)  "Affected county" is a county to which Subchapter
43-17    B, Chapter 232 [has the meaning assigned by Section 232.021], Local
43-18    Government Code, applies.
43-19          SECTION 44.  Title 7, Government Code, is amended by adding
43-20    Chapter 775 to read as follows:
43-21             CHAPTER 775.  COORDINATION OF COLONIA INITIATIVES
43-22          Sec. 775.001.  DEFINITIONS.  In this chapter:
43-23                (1)  "Agency" means a state office, institution, or
43-24    other state governmental entity.
43-25                (2)  "Colonia" means a geographic area that:
43-26                      (A)  is an economically distressed area as
 44-1    defined by Section 17.921, Water Code; and
 44-2                      (B)  is located in a county any part of which is
 44-3    within 50 miles of an international border.
 44-4          Sec. 775.002.  INTERAGENCY COORDINATION OF COLONIA
 44-5    INITIATIVES.  (a)  The governor may designate an agency to act as
 44-6    the state's colonia initiatives coordinator.
 44-7          (b)  If appointed under Subsection (a), the colonia
 44-8    initiatives coordinator shall coordinate colonia initiatives within
 44-9    the agency and with the other agencies and local officials involved
44-10    in colonia projects in the state.
44-11          (c)  The colonia initiatives coordinator may work with the
44-12    other agencies and local officials involved in colonia projects in
44-13    the state to:
44-14                (1)  coordinate efforts to address colonia issues;
44-15                (2)  identify nonprofit self-help groups to help with
44-16    colonia initiatives;
44-17                (3)  set goals for each state fiscal year for colonia
44-18    initiatives in the state, including goals to:
44-19                      (A)  address easement problems; and
44-20                      (B)  ensure that water and wastewater connections
44-21    are extended from distribution lines to houses located in colonias;
44-22    and
44-23                (4)  ensure that the goals set under this subsection
44-24    are met each state fiscal year.
44-25          (d)  The following agencies shall designate an officer or
44-26    employee of the agency to serve as the agency's liaison for colonia
 45-1    initiatives:
 45-2                (1)  the office of the attorney general;
 45-3                (2)  the Texas Department of Health;
 45-4                (3)  the Texas Department of Housing and Community
 45-5    Affairs;
 45-6                (4)  the Texas Natural Resource Conservation
 45-7    Commission; and
 45-8                (5)  the Texas Water Development Board.
 45-9          (e)  Each agency's liaison for colonia initiatives under
45-10    Subsection (d) must be a deputy executive director or a person of
45-11    equivalent or higher authority at the agency.  This subsection does
45-12    not authorize the creation of a new position for colonia
45-13    coordination at a state agency.
45-14          Sec. 775.003.  COLONIA OMBUDSMAN PROGRAM.  The colonia
45-15    initiatives coordinator may appoint a colonia ombudsman in each of
45-16    the six border counties that the coordinator determines have the
45-17    largest colonia populations.
45-18          SECTION 45.  Section 3, The Plumbing License Law (Article
45-19    6243-101, Vernon's Texas Civil Statutes), is amended to read as
45-20    follows:
45-21          Sec. 3.  ACTS PERMITTED WITHOUT A LICENSE.  (a)  The
45-22    following acts, work and conduct shall be expressly permitted
45-23    without license:
45-24                (1) [(a)]  Plumbing work done by a property owner in a
45-25    building owned or occupied by him as his homestead;
45-26                (2) [(b)]  Plumbing work done outside the municipal
 46-1    limits of any organized city, town or village in this state, or
 46-2    within any such city, town or village of less than five thousand
 46-3    (5,000) inhabitants, unless required by ordinance in such city,
 46-4    town or village of less than five thousand (5,000) inhabitants;
 46-5                (3) [(c)]  Plumbing work done by anyone who is
 46-6    regularly employed as or acting as a maintenance man or maintenance
 46-7    engineer, incidental to and in connection with the business in
 46-8    which he is employed or engaged, and who does not engage in the
 46-9    occupation of a plumber for the general public; construction,
46-10    installation and maintenance work done upon the premises or
46-11    equipment of a railroad by an employee thereof who does not engage
46-12    in the occupation of a plumber for the general public; and plumbing
46-13    work done by persons engaged by any public service company in the
46-14    laying, maintenance and operation of its service mains or lines to
46-15    the point of measurement and the installation, alteration,
46-16    adjustment, repair, removal and renovation of all types of
46-17    appurtenances, equipment and appliances, including doing all that
46-18    is necessary to render the appliances useable or serviceable;
46-19    appliance installation and service work done by anyone who is an
46-20    appliance dealer or is employed by an appliance dealer, and acting
46-21    as an appliance installation man or appliance service man in
46-22    connecting appliances to existing piping installations;  water
46-23    treatment installations, exchanges, services, or repairs.
46-24    Provided, however, that all work and service herein named or
46-25    referred to shall be subject to inspection and approval in
46-26    accordance with the terms of all local valid city or municipal
 47-1    ordinances;
 47-2                (4) [(d)]  Plumbing work done by an [a licensed]
 47-3    irrigator licensed under Chapter 34, Water Code, or an [licensed]
 47-4    installer licensed under Chapter 33, Water Code [when working and
 47-5    licensed under Chapter 197, Acts of the 66th Legislature, Regular
 47-6    Session, 1979 (Article 8751, Vernon's Texas Civil Statutes)].  A
 47-7    person holding a valid license from the Texas State Board of
 47-8    Plumbing Examiners shall not be required to be licensed by any
 47-9    other board or agency when installing or working on a lawn
47-10    irrigation system;
47-11                (5) [(e)]  Plumbing work done by an LP Gas installer
47-12    when working and licensed under Chapter 113, Natural Resources
47-13    Code, as amended;
47-14                (6)  Plumbing work, limited to the provision of a
47-15    residential potable water supply or residential sanitary sewer
47-16    connections, for a project in a geographic area that is located in
47-17    a county any part of which is within 50 miles of an international
47-18    border that is done by an organization that:
47-19                      (A)  is certified by the Texas Natural Resource
47-20    Conservation Commission to provide "self-help" project assistance;
47-21    and
47-22                      (B)  provides the board with the following
47-23    information before the 30th day before the date the project begins:
47-24                            (i)  a specific project location;
47-25                            (ii)  the intended duration of the project;
47-26    and
 48-1                            (iii)  other information the board may
 48-2    require, including a post-construction report signed by a plumbing
 48-3    inspector that the plumbing facilities are safe.
 48-4          (b)  Any failure by an organization to meet the requirements
 48-5    of Subsection (a)(6) of this section, including the requirement to
 48-6    obtain certification from the Texas Natural Resource Conservation
 48-7    Commission under Subsection (a)(6)(A) of this section or the
 48-8    requirement to provide a report to the board under Subsection
 48-9    (a)(6)(B) of this section:
48-10                (1)  invalidates the exception granted under Subsection
48-11    (a)(6) of this section for the plumbing work performed by that
48-12    organization in relation to the specific project on which the
48-13    plumbing work is performed; and
48-14                (2)  makes any unlicensed individual or entity that
48-15    performs the plumbing work for that project subject to all
48-16    penalties ordinarily available to the board against an individual
48-17    or entity that performs plumbing work without a license.
48-18          (c)  The board may provide training to an organization that
48-19    provides "self-help" project assistance under Subsection (a)(6) of
48-20    this section.
48-21          SECTION 46.  On or before November 1, 1999, the agencies
48-22    designated by Subsection (d), Section 775.002, Government Code, as
48-23    added by this Act, shall designate an officer or employee to serve
48-24    as that agency's colonia initiative liaison as provided by that
48-25    section.
48-26          SECTION 47.  (a)  The changes in law made by Section 5.124,
 49-1    Water Code, as added by this Act, apply only to a grant made by the
 49-2    Texas Natural Resource Conservation Commission on or after the
 49-3    effective date of this Act and to a grant being considered by the
 49-4    Texas Natural Resource Conservation Commission on the effective
 49-5    date of this Act.
 49-6          (b)  The changes in law made by Section 5.124, Water Code, as
 49-7    added by this Act, do not affect the validity of or apply to a
 49-8    grant the Texas Natural Resource Conservation Commission made
 49-9    before the effective date of this Act.
49-10          (c)  The Texas Natural Resource Conservation Commission may
49-11    award a grant that, on the effective date of this Act, is being
49-12    considered under, or for which a solicitation for proposals has
49-13    been issued or an application has been received under, authority
49-14    other than Section 5.124, Water Code, as added by this Act:
49-15                (1)  under the other authority without regard to the
49-16    requirements of Section 5.124, Water Code; or
49-17                (2)  under the authority of Section 5.124, Water Code,
49-18    notwithstanding that the grant was considered, the solicitation was
49-19    issued, or the application was received under the other authority.
49-20          SECTION 48.  The changes in law made by this Act to Sections
49-21    13.241 and 13.246, Water Code, apply only to an application for a
49-22    new certificate of public convenience and necessity filed on or
49-23    after the effective date of this Act.  An application for a new
49-24    certificate of public convenience and necessity filed before the
49-25    effective date of this Act is governed by the law in effect on the
49-26    date the application was filed, and that law is continued in effect
 50-1    for that purpose.
 50-2          SECTION 49.  The changes in law made by this Act to Sections
 50-3    15.407, 17.927, and 17.930, Water Code, apply only to:
 50-4                (1)  an application for assistance under those
 50-5    provisions that is pending before or submitted to the Texas Water
 50-6    Development Board on or after September 1, 1999; and
 50-7                (2)  a contract under Section 15.407, Water Code,
 50-8    regardless of the date the contract was made.
 50-9          SECTION 50.  (a)  The change in law made by this Act by
50-10    adding Section 16.352, Water Code, applies only to the violation of
50-11    a rule adopted by a municipality or county under Subchapter J,
50-12    Chapter 16, Water Code, or Section 232.030, Local Government Code,
50-13    that occurs on or after the effective date of this Act.  For
50-14    purposes of this section, a violation occurs before the effective
50-15    date of this Act if any element of the violation occurs before that
50-16    date.
50-17          (b)  A violation of a rule adopted by a municipality or
50-18    county under Subchapter J, Chapter 16, Water Code, or Section
50-19    232.030, Local Government Code, that occurs before the effective
50-20    date of this Act is governed by the law in effect when the
50-21    violation occurred, and the former law is continued in effect for
50-22    that purpose.
50-23          SECTION 51.  The change in law made by Section 16.356, Water
50-24    Code, as added by this Act, applies only to a political subdivision
50-25    subject to that section beginning on the first day of the fiscal
50-26    year of the political subdivision that begins on or after the
 51-1    effective date of this Act.
 51-2          SECTION 52.  This Act takes effect September 1, 1999.
 51-3          SECTION 53.  The importance of this legislation and the
 51-4    crowded condition of the calendars in both houses create an
 51-5    emergency and an imperative public necessity that the
 51-6    constitutional rule requiring bills to be read on three several
 51-7    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. 1421 passed the Senate on
         April 22, 1999, by a viva-voce vote; and that the Senate concurred
         in House amendments on May 24, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 1421 passed the House, with
         amendments, on May 20, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor