76R14763 PAM-D                          
         By Lucio, et al.                                      S.B. No. 1421
         Substitute the following for S.B. No. 1421:
         By Walker                                         C.S.S.B. No. 1421
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the regulation of the subdivision or development of
 1-3     land in certain economically distressed areas, including colonias,
 1-4     and certain other areas; providing penalties.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 103.001, Local Government Code, is
 1-7     amended to read as follows:
 1-8           Sec. 103.001.  ANNUAL AUDIT; FINANCIAL STATEMENT.  (a)  A
 1-9     municipality shall have its records and accounts audited annually
1-10     and shall have an annual financial statement prepared based on the
1-11     audit.
1-12           (b)  A municipality subject to Section 16.356, Water Code,
1-13     must include in its financial statement a specific report on
1-14     compliance with that section.
1-15           SECTION 2.  Section 212.012, Local Government Code, is
1-16     amended to read as follows:
1-17           Sec. 212.012.  CONNECTION OF UTILITIES.  (a)  Except as
1-18     provided by Subsection (c), an entity described by Subsection (b)
1-19     may not serve or connect any land with water, sewer, electricity,
1-20     gas, or other utility service unless the entity has been presented
1-21     with or otherwise holds a certificate applicable to the land issued
1-22     under Section 212.0115.
1-23           (b)  The prohibition established by Subsection (a)  applies
 2-1     only to:
 2-2                 (1)  a municipality and officials of a municipality
 2-3     that provides water, sewer, electricity, gas, or other utility
 2-4     service;
 2-5                 (2)  a municipally owned or municipally operated
 2-6     utility that provides any of those services;
 2-7                 (3)  a public utility that provides any of those
 2-8     services;
 2-9                 (4)  a water supply or sewer service corporation
2-10     organized and operating under Chapter 67, Water Code [76, Acts of
2-11     the 43rd Legislature, 1st Called Session, 1933 (Article 1434a,
2-12     Vernon's Texas Civil Statutes)], that provides any of those
2-13     services;
2-14                 (5)  a county that provides any of those services; and
2-15                 (6)  a special district or authority created by or
2-16     under state law that provides any of those services.
2-17           (c)  An entity described by Subsection (b) may serve or
2-18     connect land with water, sewer, electricity, gas, or other utility
2-19     service regardless of whether the entity is presented with or
2-20     otherwise holds a certificate applicable to the land issued under
2-21     Section 212.0115 if:
2-22                 (1)  the land is covered by a development plat approved
2-23     under Subchapter B or under an ordinance or rule relating to the
2-24     development plat;
2-25                 (2)  the land was first served or connected with
2-26     service by an entity described by Subsection (b)(1), (b)(2), or
2-27     (b)(3) before September 1, 1987;
 3-1                 (3)  the land was first served or connected with
 3-2     service by an entity described by Subsection (b)(4), (b)(5), or
 3-3     (b)(6) before September 1, 1989; or
 3-4                 (4)  the municipal authority responsible for approving
 3-5     plats issues a certificate stating that:
 3-6                       (A)  the land:
 3-7                             (i)  [,] before September 1, 1995, was sold
 3-8     or conveyed to the person requesting service by any means of
 3-9     conveyance, including a contract for deed or executory contract;
3-10                             (ii) [(B)  the land] is located in a
3-11     subdivision in which the entity has previously provided service;
3-12                             (iii) [(C)  the land] is located outside
3-13     the limits of the municipality;
3-14                             (iv) [(D)  the land] is located in a county
3-15     to which Subchapter B, Chapter 232, applies [an "affected county"
3-16     as that term is defined by Section 232.021]; and
3-17                             (v)  is the site of [(E)]  construction of
3-18     a residence [on the land], evidenced by at least the existence of a
3-19     completed foundation, that was begun on or before May 1, 1997; or
3-20                       (B)  the land was not subdivided after September
3-21     1, 1995, and:
3-22                             (i)  water service is available within
3-23     1,000 feet of the subdivided land; or
3-24                             (ii)  water service is available more than
3-25     1,000 feet from the subdivided land and the extension of water
3-26     service to the land may be feasible, subject to a final
3-27     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
4-27     1, 1995.
 5-1           (g)  On request, the municipal authority responsible for
 5-2     approving plats shall provide to the attorney general and any
 5-3     appropriate local, county, or state law enforcement official a copy
 5-4     of any document on which the municipal authority relied in
 5-5     determining the legality of providing service.
 5-6           (h) [(g)]  This section may not be construed to abrogate any
 5-7     civil or criminal proceeding or prosecution or to waive any penalty
 5-8     against a subdivider for a violation of a state or local law,
 5-9     regardless of the date on which the violation occurred.
5-10           (i) [(h)]  In this section:
5-11                 (1)  "Foundation" means the lowest division of a
5-12     residence, usually consisting of a masonry slab or a pier and beam
5-13     structure, that is partly or wholly below the surface of the ground
5-14     and on which the residential structure rests.
5-15                 (2)  "Subdivider" has the meaning assigned by Section
5-16     232.021.
5-17           SECTION 3.  The heading to Subchapter B, Chapter 232, Local
5-18     Government Code, is amended to read as follows:
5-19       SUBCHAPTER B.  SUBDIVISION PLATTING REQUIREMENTS IN COUNTY NEAR
5-20           INTERNATIONAL BORDER [ECONOMICALLY DISTRESSED COUNTIES]
5-21           SECTION 4.  Section 232.021, Local Government Code, is
5-22     amended to read as follows:
5-23           Sec. 232.021.  DEFINITIONS.  In this subchapter:
5-24                 (1)  ["Affected county" means a county:]
5-25                       [(A)  that has a per capita income that averaged
5-26     25 percent below the state average for the most recent three
5-27     consecutive years for which statistics are available and an
 6-1     unemployment rate that averaged 25 percent above the state average
 6-2     for the most recent three consecutive years for which statistics
 6-3     are available; and]
 6-4                       [(B)  any part of which is within 50 miles of an
 6-5     international border.]
 6-6                 [(2)]  "Board" means the Texas Water Development Board.
 6-7                 (2) [(3)]  "Common promotional plan" means any plan or
 6-8     scheme of operation undertaken by a single subdivider or a group of
 6-9     subdividers acting in concert, either personally or through an
6-10     agent, to offer for sale or lease lots when the land is:
6-11                       (A)  contiguous or part of the same area of land;
6-12     or
6-13                       (B)  known, designated, or advertised as a common
6-14     unit or by a common name.
6-15                 (3) [(4)]  "Executive administrator" means the
6-16     executive administrator of the Texas Water Development Board.
6-17                 (4) [(5)]  "Floodplain" means any area in the 100-year
6-18     floodplain that is susceptible to being inundated by water from any
6-19     source or [and] that is identified by the Federal Emergency
6-20     Management Agency under the National Flood Insurance Act of 1968
6-21     (42 U.S.C.  Sections 4001 through 4127).
6-22                 (5) [(6)]  "Lease" includes an offer to lease.
6-23                 (6) [(7)]  "Lot" means a parcel into which land that is
6-24     intended for residential use is divided.
6-25                 (7) [(8)]  "Minimum state standards" means the minimum
6-26     standards set out for:
6-27                       (A)  adequate drinking water by or under Section
 7-1     16.343(b)(1), Water Code;
 7-2                       (B)  adequate sewer facilities by or under
 7-3     Section 16.343(c)(1), Water Code; or
 7-4                       (C)  the treatment, disposal, and management of
 7-5     solid waste by or under Chapters 361 and 364, Health and Safety
 7-6     Code.
 7-7                 (8) [(9)]  "Plat" means a map, chart, survey, plan, or
 7-8     replat containing a description of the subdivided land with ties to
 7-9     permanent landmarks or monuments.
7-10                 (9) [(10)]  "Sell" includes an offer to sell.
7-11                 (10) [(11)]  "Sewer," "sewer services," or "sewer
7-12     facilities" means treatment works as defined by Section 17.001,
7-13     Water Code, or individual, on-site, or cluster treatment systems
7-14     such as septic tanks and includes drainage facilities and other
7-15     improvements for proper functioning of septic tank systems.
7-16                 (11) [(12)]  "Subdivide" means to divide the surface
7-17     area of land into lots intended primarily for residential use.
7-18                 (12) [(13)]  "Subdivider" means an individual, firm,
7-19     corporation, or other legal entity that owns any interest in land
7-20     and that directly or indirectly subdivides land into lots as part
7-21     of a common promotional plan in the ordinary course of business.
7-22                 (13) [(14)]  "Subdivision" means an area of land that
7-23     has been subdivided into lots for sale or lease.
7-24                 (14) [(15)]  "Utility" means a person, including a
7-25     legal entity or political subdivision, that provides the services
7-26     of:
7-27                       (A)  an electric utility, as defined by Section
 8-1     31.002, Utilities Code [3(c)(1), Public Utility Regulatory Act
 8-2     (Article 1446c, Vernon's Texas Civil Statutes)];
 8-3                       (B)  a gas utility, as defined by Section
 8-4     101.003, Utilities Code [1.03, Gas Utility Regulatory Act (Article
 8-5     1446e, Vernon's Texas Civil Statutes)]; and
 8-6                       (C)  a water and sewer utility, as defined by
 8-7     Section 13.002, Water Code.
 8-8           SECTION 5.  Section 232.022, Local Government Code, is
 8-9     amended to read as follows:
8-10           Sec. 232.022.  APPLICABILITY.  (a)  This subchapter applies
8-11     only to a county any part of which is located within 50 miles of an
8-12     international border.
8-13           (b)  This subchapter applies only to land that is subdivided
8-14     into two [four] or more lots that are intended primarily for
8-15     residential use in the jurisdiction of the [an affected] county.  A
8-16     lot is presumed to be intended for residential use if the lot is
8-17     five acres or less.  This subchapter does not apply if the
8-18     subdivision is incident to the conveyance of the land as a gift
8-19     between persons related to each other within the third degree by
8-20     affinity or consanguinity, as determined under Chapter 573,
8-21     Government Code.
8-22           (c) [(b)]  For purposes of this section, land is considered
8-23     to be in the jurisdiction of a county if the land is located in the
8-24     county and[,] outside the corporate limits of municipalities[, and
8-25     outside the extraterritorial jurisdiction of municipalities, as
8-26     determined under Chapter 42].
8-27           SECTION 6.  Subsection (a), Section 232.023, Local Government
 9-1     Code, is amended to read as follows:
 9-2           (a)  A subdivider of land [in an affected county] must have a
 9-3     plat of the subdivision prepared.  A subdivision of a tract under
 9-4     this subsection includes a subdivision of real property by any
 9-5     method of conveyance, including a contract for deed, oral contract,
 9-6     contract of sale, or other type of executory contract, regardless
 9-7     of whether the subdivision is made by using a metes and bounds
 9-8     description.
 9-9           SECTION 7.  Section 232.024, Local Government Code, is
9-10     amended by adding Subsection (d) to read as follows:
9-11           (d)  The commissioners court of the county in which the land
9-12     is located may establish a planning commission as provided by
9-13     Subchapter D.  The planning commission, including its findings and
9-14     decisions, is subject to the same provisions applicable to the
9-15     commissioners court under this subchapter, including Section
9-16     232.034 relating to conflicts of interest.
9-17           SECTION 8.  Subsection (c), Section 232.026, Local Government
9-18     Code, is amended to read as follows:
9-19           (c)  If the commissioners court provides an extension, the
9-20     commissioners court shall notify the attorney general of the
9-21     extension and the reason for the extension.  The attorney general
9-22     shall notify all other state agencies having enforcement power over
9-23     subdivisions [in affected counties] of the extension.
9-24           SECTION 9.  Section 232.029, Local Government Code, is
9-25     amended by amending Subsections (c), (d), and (e), adding a new
9-26     Subsection (f), and relettering Subsections (f), (g), (h), and (i)
9-27     as Subsections (g), (h), (i), and (j) to read as follows:
 10-1          (c)  An electric, gas, water, or sewer service utility may
 10-2    serve or connect subdivided land with water, sewer, electricity,
 10-3    gas, or other utility service regardless of whether the utility
 10-4    receives a certificate issued by the commissioners court under
 10-5    Section 232.028(a) or receives a determination from the
 10-6    commissioners court under Section 232.028(b) if the utility is
 10-7    provided with a certificate issued by the commissioners court that
 10-8    states that:
 10-9                (1)  [before July 1, 1995,] the subdivided land:
10-10                      (A)  before September 1, 1995, was sold or
10-11    conveyed to the person requesting service by any means of
10-12    conveyance, including a contract for deed or executory contract;
10-13                      (B) [(2)  the land] is located in a subdivision
10-14    in which the utility has previously provided service; and
10-15                      (C)  is the site of [(3)]  construction of a
10-16    residence [on the land], evidenced by at least the existence of a
10-17    completed foundation, that was begun on or before May 1, 1997; or
10-18                (2)  the land was not subdivided after September 1,
10-19    1995, and:
10-20                      (A)  water service is available within 1,000 feet
10-21    of the subdivided land; or
10-22                      (B)  water service is available more than 1,000
10-23    feet from the subdivided land and the extension of water service to
10-24    the land may be feasible, subject to a final determination by the
10-25    water service provider.
10-26          (d)  A utility may provide utility service to subdivided land
10-27    described by Subsection (c)(1) only if the person requesting
 11-1    service:
 11-2                (1)  is not the land's subdivider or the subdivider's
 11-3    agent; and
 11-4                (2)  provides to the utility a certificate described by
 11-5    Subsection (c)(1).
 11-6          (e)  A person requesting service may obtain a certificate
 11-7    under Subsection (c)(1) only if the person provides to the
 11-8    commissioners court either:
 11-9                (1)  a copy of the means of conveyance or other
11-10    documents that show that the land was sold or conveyed to the
11-11    person requesting service before September [July] 1, 1995, and a
11-12    notarized affidavit by that person that states that construction of
11-13    a residence on the land, evidenced by at least the existence of a
11-14    completed foundation, was begun on or before May 1, 1997; or
11-15                (2)  a notarized affidavit by the person requesting
11-16    service that states that the property was sold or conveyed to that
11-17    person before September [July] 1, 1995, and that construction of a
11-18    residence on the land, evidenced by at least the existence of a
11-19    completed foundation, was begun on or before May 1, 1997.
11-20          (f)  A person requesting service may obtain a certificate
11-21    under Subsection (c)(2) only if the person provides to the
11-22    commissioners court an affidavit that states that the property was
11-23    not sold or conveyed to that person from a subdivider or the
11-24    subdivider's agent after September 1, 1995.
11-25          (g)  On request, the commissioners court shall provide to the
11-26    attorney general and any appropriate local, county, or state law
11-27    enforcement official a copy of any document on which the
 12-1    commissioners court relied in determining the legality of providing
 12-2    service.
 12-3          (h) [(g)]  This section may not be construed to abrogate any
 12-4    civil or criminal proceeding or prosecution or to waive any penalty
 12-5    against a subdivider for a violation of a state or local law,
 12-6    regardless of the date on which the violation occurred.
 12-7          (i) [(h)]  The prohibition established by this section shall
 12-8    not prohibit an electric or gas utility from providing electric or
 12-9    gas utility connection or service to a lot being sold, conveyed, or
12-10    purchased through a contract for deed or executory contract or
12-11    other device by a subdivider prior to July 1, 1995, which is
12-12    located within a subdivision where the utility has previously
12-13    established service and was subdivided by a plat approved prior to
12-14    September 1, 1989.
12-15          (j) [(i)]  In this section, "foundation" means the lowest
12-16    division of a residence, usually consisting of a masonry slab or a
12-17    pier and beam structure, that is partly or wholly below the surface
12-18    of the ground and on which the residential structure rests.
12-19          SECTION 10.  Subsection (b), Section 232.030, Local
12-20    Government Code, is amended to read as follows:
12-21          (b)  Except as provided by Section 16.350(d), Water Code, or
12-22    Section 232.042 or 232.043, the commissioners court may not grant a
12-23    variance or adopt regulations that waive any requirements of this
12-24    subchapter.
12-25          SECTION 11.  Subchapter B, Chapter 232, Local Government
12-26    Code, is amended by adding Section 232.0305 to read as follows:
12-27          Sec. 232.0305.  COUNTY INSPECTOR.  (a)  The commissioners
 13-1    court may impose a fee on a subdivider of property under this
 13-2    subchapter for an inspection of the property to ensure compliance
 13-3    with the subdivision regulations adopted under this subchapter,
 13-4    Section 16.343, Water Code, or other law.
 13-5          (b)  Fees collected under this section may be used only to
 13-6    fund inspections conducted under this section.
 13-7          SECTION 12.  Subsection (b), Section 232.035, Local
 13-8    Government Code, is amended to read as follows:
 13-9          (b)  Notwithstanding any other remedy at law or equity, a
13-10    subdivider or an agent of a subdivider may not cause, suffer,
13-11    allow, or permit any part of a subdivision [in an affected county]
13-12    over which the subdivider or an agent of the subdivider has
13-13    control, or a right of ingress and egress, to become a public
13-14    health nuisance as defined by Section 341.011, Health and Safety
13-15    Code.
13-16          SECTION 13.  Subsection (a), Section 232.037, Local
13-17    Government Code, is amended to read as follows:
13-18          (a)  The attorney general, or the district attorney, criminal
13-19    district attorney, county attorney with felony responsibilities, or
13-20    county attorney of the [an affected] county may take any action
13-21    necessary in a court of competent jurisdiction on behalf of the
13-22    state or on behalf of residents to:
13-23                (1)  enjoin the violation or threatened violation of
13-24    the model rules adopted under Section 16.343, Water Code;
13-25                (2)  enjoin the violation or threatened violation of a
13-26    requirement of this subchapter or a rule adopted by the
13-27    commissioners court under this subchapter;
 14-1                (3)  recover civil or criminal penalties, attorney's
 14-2    fees, litigation costs, and investigation costs; and
 14-3                (4)  require platting or replatting under Section
 14-4    232.040.
 14-5          SECTION 14.  Section 232.037, Local Government Code, is
 14-6    amended by adding Subsection (d) to read as follows:
 14-7          (d)  This subchapter is subject to the applicable enforcement
 14-8    provisions prescribed by Sections 16.352, 16.353, 16.354, and
 14-9    16.3545, Water Code.
14-10          SECTION 15.  Section 232.038, Local Government Code, is
14-11    amended to read as follows:
14-12          Sec. 232.038.  SUIT BY PRIVATE PERSON IN ECONOMICALLY
14-13    DISTRESSED AREA.  A person who has purchased or is purchasing a lot
14-14    after July 1, 1995, in a subdivision for residential purposes that
14-15    does not have water and sewer services as required by this
14-16    subchapter and is located in an economically distressed area, as
14-17    defined by Section 17.921, Water Code, [in an affected county,]
14-18    from a subdivider, may bring suit in the district court in which
14-19    the property is located or in a district court in Travis County to:
14-20                (1)  declare the sale of the property void and require
14-21    the subdivider to return the purchase price of the property; and
14-22                (2)  recover from the subdivider:
14-23                      (A)  the market value of any permanent
14-24    improvements the person placed on the property;
14-25                      (B)  actual expenses incurred as a direct result
14-26    of the failure to provide adequate water and sewer facilities;
14-27                      (C)  court costs; and
 15-1                      (D)  reasonable attorney's fees.
 15-2          SECTION 16.  Subsection (a), Section 232.039, Local
 15-3    Government Code, is amended to read as follows:
 15-4          (a)  A subdivider of land [in an affected county] may apply
 15-5    to the commissioners court to cancel all or part of the subdivision
 15-6    in the manner provided by Section 232.008 after notice and hearing
 15-7    as provided by this section.
 15-8          SECTION 17.  Subsection (c), Section 232.040, Local
 15-9    Government Code, is amended to read as follows:
15-10          (c)  Subsection (b) does not apply if a seller other than a
15-11    subdivider or agent of a subdivider[:]
15-12                [(1)]  resides on the lot[; or]
15-13                [(2)  purchases the lot through a contract for deed].
15-14          SECTION 18.  The heading to Section 232.042, Local Government
15-15    Code, is amended to read as follows:
15-16          Sec. 232.042.  VARIANCES FROM REPLATTING REQUIREMENTS.
15-17          SECTION 19.  Subchapter B, Chapter 232, Local Government
15-18    Code, is amended by adding Section 232.043 to read as follows:
15-19          Sec. 232.043.  VARIANCES FROM PLATTING REQUIREMENTS.  (a)  On
15-20    the request of a subdivider who created an unplatted subdivision or
15-21    a resident purchaser of a lot in the subdivision, the commissioners
15-22    court of a county may grant:
15-23                (1)  a delay or variance from compliance with the
15-24    subdivision requirements prescribed by Section 232.023(b)(8) or
15-25    (9), 232.025(1), (2), (3), (4), or (5), or 232.030(c)(2), (3), (5),
15-26    or (6); or
15-27                (2)  a delay or variance for an individual lot from
 16-1    compliance with the requirements prescribed by the model
 16-2    subdivision rules adopted under Section 16.343, Water Code, for:
 16-3                      (A)  the distance that a structure must be set
 16-4    back from roads or property lines; or
 16-5                      (B)  the number of single-family, detached
 16-6    dwellings that may be located on a lot.
 16-7          (b)  If the commissioners court makes a written finding that
 16-8    the subdivider who created the unplatted subdivision no longer owns
 16-9    property in the subdivision, the commissioners court may grant a
16-10    delay or variance under this section only if:
16-11                (1)  a majority of the lots in the subdivision were
16-12    sold before September 1, 1995;
16-13                (2)  a majority of the resident purchasers in the
16-14    subdivision sign a petition supporting the delay or variance;
16-15                (3)  the person requesting the delay or variance
16-16    submits to the commissioners court:
16-17                      (A)  a description of the water and sewer service
16-18    facilities that will be constructed or installed to service the
16-19    subdivision;
16-20                      (B)  a statement specifying the date by which the
16-21    water and sewer service facilities will be fully operational; and
16-22                      (C)  a statement signed by an engineer licensed
16-23    in this state certifying that the plans for the water and sewer
16-24    facilities meet the minimum state standards;
16-25                (4)  the commissioners court finds that the unplatted
16-26    subdivision at the time the delay or variance is requested is
16-27    developed in a manner and to an extent that compliance with
 17-1    specific platting requirements is impractical or contrary to the
 17-2    health or safety of the residents of the subdivision; and
 17-3                (5)  the  subdivider who created the unplatted
 17-4    subdivision has not violated local law, federal law, or state law,
 17-5    excluding this chapter, in subdividing the land for which the delay
 17-6    or variance is requested, if the subdivider is the person
 17-7    requesting the delay or variance.
 17-8          (c)  If the commissioners court makes a written finding that
 17-9    the subdivider who created the unplatted subdivision owns property
17-10    in the subdivision, the commissioners court may grant a provisional
17-11    delay or variance only if the requirements of Subsection (b) are
17-12    satisfied.  The commissioners court may issue a final grant of the
17-13    delay or variance only if the commissioners court has not received
17-14    objections from the attorney general before the 91st day after the
17-15    date the commissioners court submits the record of its proceedings
17-16    to the attorney general as prescribed by Subsection (d).
17-17          (d)  If the commissioners court grants a delay or variance
17-18    under this section, the commissioners court shall:
17-19                (1)  make findings specifying the reason compliance
17-20    with each requirement is impractical or contrary to the health or
17-21    safety of residents of the subdivision;
17-22                (2)  keep a record of its proceedings and include in
17-23    the record documentation of the findings and the information
17-24    submitted under Subsection (b); and
17-25                (3)  submit a copy of the record to the attorney
17-26    general.
17-27          (e)  The failure of the attorney general to comment or object
 18-1    to a delay or variance granted under this section does not
 18-2    constitute a waiver of or consent to the validity of the delay or
 18-3    variance granted.
 18-4          (f)  This section does not affect a civil suit filed against,
 18-5    a criminal prosecution of, or the validity of a penalty imposed on
 18-6    a subdivider for a violation of law, regardless of the date on
 18-7    which the violation occurred.
 18-8          SECTION 20.  The heading to Subchapter C, Chapter 232, Local
 18-9    Government Code, is amended to read as follows:
18-10      SUBCHAPTER C.  [ALTERNATE] SUBDIVISION PLATTING REQUIREMENTS IN
18-11             CERTAIN [OTHER] ECONOMICALLY DISTRESSED COUNTIES
18-12          SECTION 21.  Section 232.071, Local Government Code, is
18-13    amended to read as follows:
18-14          Sec. 232.071.  APPLICABILITY.  This subchapter applies only
18-15    to the subdivision of land located:
18-16                (1)  outside the corporate limits of a municipality [or
18-17    the extraterritorial jurisdiction of a municipality]; and
18-18                (2)  in a county:
18-19                      (A)  eligible for financial assistance under
18-20    Section 15.407, Water Code, or Subchapter K, Chapter 17, Water
18-21    Code; and
18-22                      (B)  to which Subchapter B does not apply.
18-23          SECTION 22.  Section 232.073, Local Government Code, is
18-24    amended to read as follows:
18-25          Sec. 232.073.  APPROVAL BY COUNTY REQUIRED.  (a)  A plat
18-26    filed under Section 232.072 is not valid unless the commissioners
18-27    court of the county in which the land is located approves the plat
 19-1    by an order entered in the minutes of the court.  The commissioners
 19-2    court shall refuse to approve a plat if it does not meet the
 19-3    requirements prescribed by or under this subchapter or if any bond
 19-4    required under this subchapter is not filed with the county clerk.
 19-5          (b)  The commissioners court of the county in which the land
 19-6    is located may establish a planning commission as provided by
 19-7    Subchapter D.  The planning commission, including its findings and
 19-8    decisions, is subject to the same provisions applicable to the
 19-9    commissioners court under this subchapter, including Section
19-10    232.078 relating to conflicts of interest.
19-11          SECTION 23.  Subchapter C, Chapter 232, Local Government
19-12    Code, is amended by adding Section 232.0775 to read as follows:
19-13          Sec. 232.0775.  COUNTY INSPECTOR.  (a)  The commissioners
19-14    court may impose a fee on a subdivider of property under this
19-15    subchapter for an inspection of the property to ensure compliance
19-16    with the subdivision regulations adopted under this subchapter,
19-17    Section 16.343, Water Code, or other law.
19-18          (b)  Fees collected under this section may be used only to
19-19    fund inspections conducted under this section.
19-20          SECTION 24.  Section 232.080, Local Government Code, is
19-21    amended by adding Subsection (c) to read as follows:
19-22          (c)  This subchapter is subject to the applicable enforcement
19-23    provisions prescribed by Sections 16.352, 16.353, 16.354, and
19-24    16.3545, Water Code.
19-25          SECTION 25.  Chapter 232, Local Government Code, is amended
19-26    by adding Subchapter D to read as follows:
 20-1                 SUBCHAPTER D.  COUNTY PLANNING COMMISSION
 20-2          Sec. 232.091.  APPLICABILITY.  This subchapter applies only
 20-3    to a county:
 20-4                (1)  authorized to establish a planning commission
 20-5    under Subchapter B or C; and
 20-6                (2)  in which the commissioners court by order elects
 20-7    to operate under this subchapter.
 20-8          Sec. 232.092.  ESTABLISHMENT AND ABOLITION OF PLANNING
 20-9    COMMISSION.  (a)  To promote the general public welfare, the
20-10    commissioners court of a county by order may:
20-11                (1)  establish a planning commission under this
20-12    section; and
20-13                (2)  abolish a planning commission established under
20-14    this section.
20-15          (b)  The commissioners court may authorize the planning
20-16    commission to act on behalf of the commissioners court in matters
20-17    relating to:
20-18                (1)  the duties and authority of the commissioners
20-19    court under Subchapter A, B, or C; and
20-20                (2)  land use, health and safety, planning and
20-21    development, or other enforcement provisions specifically
20-22    authorized by law.
20-23          (c)  If the commissioners court establishes a planning
20-24    commission, the commissioners court by order shall adopt reasonable
20-25    rules and procedures necessary to administer this subchapter.
20-26          (d)  This subchapter does not grant a commissioners court or
20-27    a planning commission the power to regulate the use of property for
 21-1    which a permit has been issued to engage in a federally licensed
 21-2    activity.
 21-3          Sec. 232.093.  APPOINTMENT OF MEMBERS OF PLANNING COMMISSION.
 21-4    (a)  The commissioners court may appoint a planning commission
 21-5    consisting of five members.  Members are appointed for staggered
 21-6    terms of two years.
 21-7          (b)  A person appointed as a member of the planning
 21-8    commission must be a citizen of the United States and reside in the
 21-9    county.
21-10          (c)  The commissioners court shall file with the county clerk
21-11    a certificate of appointment for each commission member.
21-12          (d)  The commissioners court shall fill any vacancy on the
21-13    commission.
21-14          (e)  Before a planning commission member undertakes the
21-15    duties of the office, the member must:
21-16                (1)  take the official oath; and
21-17                (2)  swear in writing that the member will promote the
21-18    interest of the county as a whole and  not only a private interest
21-19    or the interest of a special group or location in the county.
21-20          (f)  A member of the planning commission serves at the
21-21    pleasure of the commissioners court and is subject to removal as
21-22    provided by Chapter 87.
21-23          Sec. 232.094.  FINANCIAL DISCLOSURE.  (a)  A member of the
21-24    planning commission shall file a financial disclosure report in the
21-25    same manner as required for county officers under Subchapter B,
21-26    Chapter 159.
21-27          (b)  If the commissioners court of the county in which the
 22-1    planning commission member serves has not adopted a financial
 22-2    disclosure reporting system under Subchapter B, Chapter 159, the
 22-3    planning commission member shall file a financial disclosure report
 22-4    in the same manner as required for county officers under Subchapter
 22-5    A, Chapter 159.
 22-6          Sec. 232.095.  OFFICERS, QUORUM, AND MEETINGS.  (a)  At the
 22-7    first meeting of each calendar year, the planning commission shall
 22-8    elect a presiding officer and assistant presiding officer.  The
 22-9    presiding officer presides over the meetings and executes all
22-10    documentation required on behalf of the planning commission.  The
22-11    assistant presiding officer represents the presiding officer during
22-12    the presiding officer's absence.
22-13          (b)  There is no limitation on the number of terms a member
22-14    may serve on the commission.
22-15          (c)  Minutes of the planning commission's proceedings must be
22-16    filed with the county clerk or other county officer or employee
22-17    designated by the commissioners court.  The minutes of the planning
22-18    commission's proceedings are a public record.
22-19          (d)  The planning commission is subject to Chapters 551 and
22-20    552, Government Code.
22-21          (e)  The planning commission may adopt rules necessary to
22-22    administer this subchapter.  Rules adopted under this subsection
22-23    are subject to approval by the commissioners court.
22-24          Sec. 232.096.  TIMELY APPROVAL OF PLATS.  (a)  The planning
22-25    commission shall issue a written list of the documentation and
22-26    other information that must be submitted with a plat application.
22-27    The documentation or other information must relate to a requirement
 23-1    authorized by law.  An application submitted to the planning
 23-2    commission that contains the documents and other information on the
 23-3    list is considered complete.
 23-4          (b)  If a person submits an incomplete plat application to
 23-5    the planning commission, the planning commission or its designee
 23-6    shall, not later than the 15th business day after the date the
 23-7    planning commission or its designee receives the application,
 23-8    notify the applicant of the missing documents or other information.
 23-9    The planning commission or its designee shall allow an applicant to
23-10    timely submit the missing documents or other information.
23-11          (c)  An application is considered complete on the date all
23-12    documentation and other information required by Subsection (a) is
23-13    received by the planning commission.
23-14          (d)  If the approval of the plat is within the exclusive
23-15    jurisdiction of the planning commission, the planning commission
23-16    shall take final action on a plat application, including the
23-17    resolution of all appeals, not later than the 60th day after the
23-18    date a completed plat application is received by the planning
23-19    commission.
23-20          (e)  The time period prescribed by Subsection (d) may be
23-21    extended for:
23-22                (1)  a reasonable period if requested by the applicant;
23-23    and
23-24                (2)  an additional 60 days if the county is required
23-25    under Chapter 2007, Government Code, to perform a takings impact
23-26    assessment in connection with a plat submitted for approval.
23-27          (f)  The planning commission may not compel an applicant to
 24-1    waive the time limits prescribed by this section.
 24-2          (g)  If the planning commission fails to take final action on
 24-3    the completed plat application as required by this section, the
 24-4    applicant may apply to a district court in the county in which the
 24-5    land is located for a mandamus order to compel the planning
 24-6    commission to approve or disapprove the plat.  A planning
 24-7    commission subject to a mandamus order under this subsection shall
 24-8    make a decision approving or disapproving the plat not later than
 24-9    the 20th business day after the date a copy of the mandamus order
24-10    is served on the presiding officer of the planning commission.  If
24-11    the planning commission approves the plat, the planning commission,
24-12    within the 20-day period prescribed by this subsection, shall:
24-13                (1)  refund the greater of the unexpended portion of
24-14    any plat application fee or deposit or 50 percent of a plat
24-15    application fee or deposit that has been paid;
24-16                (2)  determine the appropriate amount of any bond or
24-17    other financial guarantee required in connection with the plat
24-18    approval; and
24-19                (3)  issue documents recognizing the plat's approval.
24-20          (h)  Except as provided by this subsection, an approval of a
24-21    plat by the planning commission is final on the 31st day after the
24-22    date the planning commission votes to approve the plat.  On the
24-23    request of a county commissioner, the commissioners court shall
24-24    review a plat approved by the planning commission not later than
24-25    the 30th day after the date the planning commission votes to
24-26    approve the plat.  The commissioners court may disapprove the plat
24-27    if the plat fails to comply with state law or rules adopted by the
 25-1    county or the planning commission.  If the commissioners court
 25-2    fails to take action within the 30-day period prescribed by this
 25-3    subsection, the decision of the planning commission is final.
 25-4          (i)  In this section, "business day" means a day other than a
 25-5    Saturday, Sunday, or holiday recognized by this state.
 25-6          Sec. 232.097.  REASONS FOR DISAPPROVAL OF PLAT REQUIRED.  If
 25-7    the planning commission refuses to approve a plat, the planning
 25-8    commission shall provide to the person requesting approval a notice
 25-9    specifying the reason for the disapproval.
25-10          SECTION 26.  Subsections (a) and (c), Section 242.001, Local
25-11    Government Code, are amended to read as follows:
25-12          (a)  This section applies only to a county operating under
25-13    Sections 232.001-232.005 or Subchapter B or C, Chapter 232.
25-14          (c)  In the extraterritorial jurisdiction of a municipality,
25-15    the municipality may regulate subdivisions under Subchapter A of
25-16    Chapter 212 and other statutes applicable to municipalities, and
25-17    the county may regulate subdivisions under Sections
25-18    232.001-232.005, Subchapter B or C, Chapter 232, and other statutes
25-19    applicable to counties.  If a municipal regulation conflicts with a
25-20    county regulation, the more stringent provisions prevail.
25-21          SECTION 27.  Subsection (d), Section 12.002, Property Code,
25-22    is amended to read as follows:
25-23          (d)  Except in the case of a subdivision located in a county
25-24    to which Subchapter B, Chapter 232 [an "affected county," as
25-25    defined by Section 232.021], Local Government Code, applies,
25-26    Subsection (c) does not apply to using a subdivision's description
25-27    in a contract to convey real property before the plat or replat of
 26-1    the subdivision is approved and is filed for record with the county
 26-2    clerk if:
 26-3                (1)  the conveyance is expressly contingent on approval
 26-4    and recording of the final plat; and
 26-5                (2)  the purchaser is not given use or occupancy of the
 26-6    real property conveyed before the recording of the final plat.
 26-7          SECTION 28.  Subchapter D, Chapter 5, Water Code, is amended
 26-8    by adding Section 5.124 to read as follows:
 26-9          Sec. 5.124.  AUTHORITY TO AWARD GRANTS.  (a)  With the
26-10    consent of the commission, the executive director may award grants
26-11    for any purpose regarding resource conservation or environmental
26-12    protection in accordance with this section.
26-13          (b)  The commission by rule shall establish procedures for
26-14    awarding a grant, for making any determination related to awarding
26-15    a grant, and for making grant payments.
26-16          (c)  Each activity funded by a grant must directly relate to
26-17    a purpose specified in the grant.  A grant may be awarded only for
26-18    a purpose consistent with the commission's jurisdiction and
26-19    purposes under law, including:
26-20                (1)  the development or implementation of a
26-21    comprehensive conservation and management plan under Section 320,
26-22    Federal Water Pollution Control Act (33 U.S.C. Section 1330), for a
26-23    designated national estuary in this state;
26-24                (2)  a demonstration project that involves new
26-25    techniques for pollution prevention, energy or resource
26-26    conservation, or waste management;
26-27                (3)  an environmental purpose identified in a federal
 27-1    grant that is intended as a pass-through grant;
 27-2                (4)  development or improvement of monitoring or
 27-3    modeling techniques for water or air quality;
 27-4                (5)  support of a local air pollution program; or
 27-5                (6)  a study or program related to efforts to  prevent
 27-6    an area that is near nonattainment with federal air quality
 27-7    standards from reaching nonattainment status.
 27-8          (d)  A grant may be awarded to any person that meets the
 27-9    eligibility requirements of the grant.  The executive director
27-10    shall establish eligibility requirements for each grant appropriate
27-11    to the purposes of and activities under the grant and the method of
27-12    selecting the recipient.
27-13          (e)  Selection of grant recipients must be by solicitation of
27-14    a proposal or application except as provided by Subsections (f) and
27-15    (g).  The executive director may specify any selection criterion
27-16    the executive director considers relevant to the grant.  Selection
27-17    criteria must address:
27-18                (1)  evaluation and scoring of:
27-19                      (A)  fiscal controls;
27-20                      (B)  project effectiveness;
27-21                      (C)  project cost; and
27-22                      (D)  previous experience with grants and
27-23    contracts; and
27-24                (2)  the possibility and method of making multiple
27-25    awards.
27-26          (f)  A grant may be made by direct award only if:
27-27                (1)  the executive director determines that:
 28-1                      (A)  selection of recipients by the solicitation
 28-2    of proposals or applications is not feasible; and
 28-3                      (B)  awarding the grant directly is in the best
 28-4    interest of the state;
 28-5                (2)  eligibility for the grant is limited to:
 28-6                      (A)  an agency or political subdivision of this
 28-7    state or of another state;
 28-8                      (B)  a state institution of higher learning of
 28-9    this state or of another state, including any part or service of
28-10    the institution; or
28-11                      (C)  an agency of the United States; or
28-12                (3)  the grant is awarded to a person established or
28-13    authorized to develop or implement a comprehensive conservation and
28-14    management plan under Section 320, Federal Water Pollution Control
28-15    Act (33 U.S.C. Section 1330), for a national estuary in this state.
28-16          (g)  If a solicitation of a proposal is made for the purpose
28-17    of identifying a partner for a joint application for a federal
28-18    grant that is subsequently awarded to the commission, the executive
28-19    director is not required to make an additional solicitation for
28-20    entering into a pass-through grant with an identified partner.
28-21          (h)  The executive director shall publish information
28-22    regarding a solicitation related to a grant to be awarded under
28-23    this section on the commission's electronic business daily in the
28-24    manner provided by Section 2155.074, Government Code, as added by
28-25    Section 1, Chapter 508, Acts of the 75th Legislature, Regular
28-26    Session, 1997.
28-27          (i)  For a grant awarded under this section, the commission
 29-1    may use:
 29-2                (1)  money appropriated for grant-making purposes;
 29-3                (2)  federal money granted for making pass-through
 29-4    grants; and
 29-5                (3)  state or federal grant money appropriated for a
 29-6    purpose that the executive director determines is consistent with a
 29-7    purpose of the grant from the commission.
 29-8          SECTION 29.  Subdivision (26), Section 13.002, Water Code, is
 29-9    amended to read as follows:
29-10                (26)  "Affected county" is a county to which Subchapter
29-11    B, Chapter 232 [has the meaning assigned by Section 232.021], Local
29-12    Government Code, applies.
29-13          SECTION 30.  Section 13.241, Water Code, is amended by adding
29-14    Subsection (e) to read as follows:
29-15          (e)  The commission by rule shall develop a standardized
29-16    method for determining under Section 13.246(f) which of two or more
29-17    retail public utilities or water supply or sewer service
29-18    corporations that apply for a certificate of public convenience and
29-19    necessity to provide water or sewer utility service to an
29-20    uncertificated area located in an economically distressed area is
29-21    more capable financially, managerially, and technically of
29-22    providing continuous and adequate service.  In this subsection,
29-23    "economically distressed area" has the meaning assigned by Section
29-24    15.001.
29-25          SECTION 31.  Section 13.246, Water Code, is amended by
29-26    amending Subsection (e) and adding Subsections (f) and (g) to read
29-27    as follows:
 30-1          (e)  Where applicable, in addition to the other factors in
 30-2    this section the commission shall consider the efforts of the
 30-3    applicant:
 30-4                (1)  to extend service to any economically distressed
 30-5    areas located within the service areas certificated to the
 30-6    applicant; and
 30-7                (2)  to enforce the rules adopted under Section 16.343.
 30-8    [For the purposes of this subsection, "economically distressed
 30-9    area" has the meaning assigned by Section 15.001.]
30-10          (f)  If two or more retail public utilities or water supply
30-11    or sewer service corporations apply for a certificate of public
30-12    convenience and necessity to provide water or sewer utility service
30-13    to an uncertificated area located in an economically distressed
30-14    area and otherwise meet the requirements for obtaining a new
30-15    certificate, the commission shall grant the certificate to the
30-16    retail public utility or water supply or sewer service corporation
30-17    that is more capable financially, managerially, and technically of
30-18    providing continuous and adequate service.
30-19          (g)  In this section, "economically distressed area" has the
30-20    meaning assigned by Section 15.001.
30-21          SECTION 32.  Section 15.407, Water Code, is amended by adding
30-22    new Subsections (c) and (d), relettering existing Subsections (c),
30-23    (d), (e), (f), and (g) as Subsections (e), (f), (g), (h), and (i),
30-24    and adding Subsection (j) to read as follows:
30-25          (c)  The selection process used by a political subdivision to
30-26    procure engineering services necessary for facility engineering is
30-27    subject to review by and approval of the executive administrator.
 31-1    The executive administrator may assist a political subdivision in
 31-2    the selection of the provider of engineering services necessary for
 31-3    facility engineering in economically distressed areas.
 31-4          (d)  The board shall adopt rules governing the procurement of
 31-5    facility engineering services by a political subdivision awarded
 31-6    funds under this subchapter and may adopt other rules necessary to
 31-7    carry out the board's powers and duties under this subchapter.
 31-8          (e)  A political subdivision that desires money from the
 31-9    research and planning fund for facility engineering in an
31-10    economically distressed area shall submit a written application to
31-11    the board in the manner and form required by board rules.
31-12          (f) [(d)]  The application shall include:
31-13                (1)  the name of the political subdivision;
31-14                (2)  a citation to the laws under which the political
31-15    subdivision was created and is operating;
31-16                (3)  the amount requested from the board for facility
31-17    engineering in an economically distressed area; and
31-18                (4)  any other information required by the board in its
31-19    rules or specifically requested by the board.
31-20          (g) [(e)]  After notice and hearing, the board may award the
31-21    applicant all or part of the requested funds that are considered
31-22    necessary by the board for the political subdivision to carry out
31-23    adequate facility engineering in an economically distressed area.
31-24          (h) [(f)]  If the board grants an application under this
31-25    section and awards funds for facility engineering in an
31-26    economically distressed area, the board shall enter into a contract
31-27    with the political subdivision that includes:
 32-1                (1)  a detailed statement of the purpose for which the
 32-2    money is to be used;
 32-3                (2)  the total amount of money to be paid from the
 32-4    research and planning fund under the contract; and
 32-5                (3)  any other terms and conditions required by board
 32-6    rules or agreed to by the contracting parties.
 32-7          (i) [(g)]  If, after submission of an application under this
 32-8    section, a county has an increase in average per capita income or a
 32-9    decrease in unemployment rate average so that the county no longer
32-10    meets the definition of an affected county in Section 16.341, the
32-11    political subdivision that submits the application continues to be
32-12    eligible for the funds under this section, and the board shall
32-13    process the application for facility engineering and, if the
32-14    application is approved, shall provide funds for the facility
32-15    engineering plan to the political subdivision.
32-16          (j)  If the board determines that planning activities
32-17    undertaken by a political subdivision for which the board has
32-18    committed funds under this subchapter have been inadequate or not
32-19    completed in a timely manner, the board may terminate the contract
32-20    with the political subdivision and on behalf of and in consultation
32-21    with the political subdivision may perform or contract for facility
32-22    engineering in the economically distressed area.
32-23          SECTION 33.  Section 16.341(2), Water Code, is amended to
32-24    read as follows:
32-25                (2)  "Economically distressed area" means an area in
32-26    which:
32-27                      (A)  water supply or sewer services are
 33-1    inadequate to meet minimal needs of residential users as defined by
 33-2    board rules;
 33-3                      (B)  financial resources are inadequate to
 33-4    provide water supply or sewer services that will satisfy those
 33-5    needs; and
 33-6                      (C)  an established residential subdivision was
 33-7    located [80 percent of the dwellings covered by an application for
 33-8    funds or financial assistance were occupied] on June 1, 1989, as
 33-9    determined by the board.
33-10          SECTION 34.  Subsection (a), Section 16.343, Water Code, is
33-11    amended to read as follows:
33-12          (a)  The board [Texas Natural Resource Conservation
33-13    Commission] shall, [in conjunction with the board and] after
33-14    consultation with the attorney general and the commission, prepare
33-15    and adopt model rules to assure that minimum standards for safe and
33-16    sanitary water supply and sewer services in residential areas of
33-17    political subdivisions, including rules of any state agency
33-18    relating to septic tanks and other waste disposal systems, are met.
33-19          SECTION 35.  Subsection (b), Section 16.345, Water Code, is
33-20    amended to read as follows:
33-21          (b)  In addition to any other authority to issue bonds or
33-22    other obligations or incur any debt, an affected county or another
33-23    [a] political subdivision, other than a nonprofit water supply
33-24    corporation, eligible for financial assistance under Subchapter K,
33-25    Chapter 17, of this code may issue bonds payable from and secured
33-26    by a pledge of the revenues derived or to be derived from the
33-27    operation of water supply or sewer service systems for the purpose
 34-1    of acquiring, constructing, improving, extending, or repairing
 34-2    water supply or sewer facilities.  The bonds shall be issued in
 34-3    accordance with and an affected county or another [a] political
 34-4    subdivision may exercise the powers granted by:  Articles 1111
 34-5    through 1118, Revised Statutes; Chapters 249 and 250, Acts of the
 34-6    51st Legislature, Regular Session, 1949 (Articles 1111a and 1111b,
 34-7    Vernon's Texas Civil Statutes); Chapter 428, Acts of the 52nd
 34-8    Legislature, 1951 (Article 1111c, Vernon's Texas Civil Statutes);
 34-9    Chapter 122, Acts of the 43rd Legislature, Regular Session, 1933
34-10    (Articles 1114a, 1114b, and 1114c, Vernon's Texas Civil Statutes);
34-11    and Chapter 56, Acts of the 45th Legislature, 2nd Called Session,
34-12    1937 (Article 1114d, Vernon's Texas Civil Statutes); by the Bond
34-13    Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil
34-14    Statutes); by Chapter 656, Acts of the 68th Legislature, Regular
34-15    Session, 1983 (Article 717q, Vernon's Texas Civil Statutes); and by
34-16    other laws of the state.
34-17          SECTION 36.  Subchapter J, Chapter 16, Water Code, is amended
34-18    by adding Sections 16.352, 16.353, 16.3535, 16.354, and 16.3545 to
34-19    read as follows:
34-20          Sec. 16.352.  ENFORCEMENT OF RULES.  A person who violates a
34-21    rule adopted by a municipality or county under this subchapter or
34-22    under Subchapter B or C, Chapter 232, Local Government Code, is
34-23    liable to the municipality or county for a civil penalty of not
34-24    less than $500 and not more than $1,000 for each violation and for
34-25    each day of a violation.  The maximum civil penalty that may accrue
34-26    each day is $5,000.  The appropriate attorney representing the
34-27    municipality or county may sue to collect the penalty.  The
 35-1    recovered penalty shall be deposited in the general fund of the
 35-2    municipality or county.
 35-3          Sec. 16.353.  INJUNCTION.  (a)  In addition to any other
 35-4    remedy, the attorney general, the municipal attorney of the
 35-5    municipality in which a violation under Section 16.352 occurs, or
 35-6    the county or district attorney of the county in which a violation
 35-7    under Section 16.352 occurs may apply to a district court for, and
 35-8    the district court may grant, the state or the political
 35-9    subdivision an appropriate prohibitory or mandatory order,
35-10    including a temporary restraining order or a temporary or permanent
35-11    injunction, enjoining a violation of this subchapter, the rules
35-12    described by Section 16.352, or Subchapter B or C, Chapter 232,
35-13    Local Government Code.
35-14          (b)  An injunction issued under this section may be issued
35-15    without the requirement of a bond or other undertaking.
35-16          Sec. 16.3535.  DAMAGES.  In addition to any other remedy, the
35-17    attorney general, the municipal attorney of the municipality in
35-18    which a violation under Section 16.352 occurs, or the county or
35-19    district attorney of the county in which a violation under Section
35-20    16.352 occurs may apply to a district court for, and the district
35-21    court may grant, monetary damages to cover the cost of enforcing
35-22    this subchapter, rules adopted under this subchapter, or Subchapter
35-23    B or C, Chapter 232, Local Government Code.
35-24          Sec. 16.354.  ATTORNEY GENERAL ENFORCEMENT.  In addition to
35-25    the ability of any political subdivision to enforce this
35-26    subchapter, the attorney general may file suit to:
35-27                (1)  enforce a rule adopted under Section 16.350;
 36-1                (2)  recover a civil penalty under Section 16.352;
 36-2                (3)  obtain injunctive relief under Section 16.353;
 36-3                (4)  recover damages under Section 16.3535;
 36-4                (5)  enforce a political subdivision's rules, recover
 36-5    any penalty, recover any damages, and obtain any injunctive relief;
 36-6    or
 36-7                (6)  recover attorney's fees, investigative costs, and
 36-8    court costs.
 36-9          Sec. 16.3545.  VENUE.  A suit brought under this subchapter
36-10    for injunctive relief or the recovery of a civil penalty or damages
36-11    may be brought in a district court in:
36-12                (1)  the county in which the defendant resides;
36-13                (2)  the county in which the alleged violation or
36-14    threat of violation occurs; or
36-15                (3)  Travis County.
36-16          SECTION 37.  Subchapter J, Chapter 16, Water Code, is amended
36-17    by adding Section 16.356 to read as follows:
36-18          Sec. 16.356.  USE OF REVENUE FROM OPERATION OF WATER SUPPLY
36-19    OR SEWER SERVICE PROJECTS.  (a)  A political subdivision that
36-20    receives financial assistance from the economically distressed
36-21    areas program under Subchapter K, Chapter 17, may not use any
36-22    revenue received from fees collected from a water supply or sewer
36-23    service constructed in whole or in part from funds from the
36-24    economically distressed areas program account for purposes other
36-25    than utility purposes.  The annual financial statement prepared by
36-26    a municipality under Section 103.001, Local Government Code, must
36-27    include a specific report on compliance with this section.
 37-1          (b)  At the request of the board or on the attorney general's
 37-2    own initiative, the attorney general may file suit to enjoin an
 37-3    actual or threatened violation of this section.
 37-4          SECTION 38.  Section 17.921(1), Water Code, is amended to
 37-5    read as follows:
 37-6                (1)  "Economically distressed area" means an area in
 37-7    which:
 37-8                      (A)  water supply or sewer services are
 37-9    inadequate to meet minimal needs of residential users as defined by
37-10    board rules;
37-11                      (B)  financial resources are inadequate to
37-12    provide water supply or sewer services that will satisfy those
37-13    needs; and
37-14                      (C)  an established residential subdivision was
37-15    located [the percentage of the dwellings occupied] on June 1, 1989,
37-16    as determined by the board [to be served by financial assistance
37-17    under this subchapter was at least:]
37-18                            [(i)  80 percent; or]
37-19                            [(ii)  50 percent, if the services provided
37-20    by financial assistance under this subchapter can be provided by
37-21    common or regional facilities in a cost-effective manner in
37-22    conjunction with service provided to an economically distressed
37-23    area as determined under the other provisions of this subdivision].
37-24          SECTION 39.  Subsection (b), Section 17.927, Water Code, is
37-25    amended to read as follows:
37-26          (b)  The application and plan must:
37-27                (1)  comply with board requirements;
 38-1                (2)  describe in detail the method for delivering water
 38-2    supply and sewer services and the persons to whom the services will
 38-3    be provided;
 38-4                (3)  describe the method for complying with minimum
 38-5    state standards for water supply and sewer services adopted by the
 38-6    board under Section 16.342 of this code;
 38-7                (4)  include a budget that estimates the total cost of
 38-8    providing water supply and sewer services to the economically
 38-9    distressed area and a proposed schedule and method for repayment of
38-10    financial assistance consistent with board rules and guidelines;
38-11                (5)  describe existing water supply and sewer
38-12    facilities located in the economically distressed area and include
38-13    with the description:
38-14                      (A)  the county map required by Section 366.036,
38-15    Health and Safety Code; or
38-16                      (B)  a document prepared and certified by an
38-17    engineer registered to practice in this state describing the plan
38-18    for providing water supply and sewer services to the economically
38-19    distressed area;
38-20                (6)  provide proof that the appropriate political
38-21    subdivision has adopted the model rules developed under Section
38-22    16.343 of this code;
38-23                (7)  include information on the ability of potential
38-24    customers to pay for the services provided by the project including
38-25    composite data prepared by the applicant pursuant to board rules
38-26    and guidelines from surveys of those potential customers covering
38-27    income, family size, personal expenses, employment status, and
 39-1    other information required by board rule;
 39-2                (8)  include an estimate of the per household cost of
 39-3    providing the services contemplated by the project with supporting
 39-4    data;
 39-5                (9)  describe the procedures to be used to collect
 39-6    money from residents who use the proposed water supply and sewer
 39-7    services including procedures for collection of delinquent
 39-8    accounts;
 39-9                (10)  include a requirement that a contractor who
39-10    agrees to acquire, construct, extend, or provide water supply and
39-11    sewer services executes a performance bond in the amount of 100
39-12    percent of the contract price;
39-13                (11)  contain an agreement to comply with applicable
39-14    procurement procedures in contract awards for water supply and
39-15    sewer services;
39-16                (12)  if located in the service area of a retail public
39-17    utility or public utility that has a certificate of public
39-18    convenience and necessity under Chapter 13 of this code, include a
39-19    document in the form of an affidavit signed by the chief executive
39-20    officer of the utility, which shall cooperate with the political
39-21    subdivision, stating that the utility does not object to the
39-22    construction and operation of the services and facilities in its
39-23    service area;
39-24                (13)  include a map of the economically distressed area
39-25    together with supporting information relating to dwellings in the
39-26    area;
39-27                (14)  describe in detail the methods for incorporating
 40-1    water conservation into the provision of water and sewer services
 40-2    to the economically distressed area; [and]
 40-3                (15)  include, on request of the board, a written
 40-4    determination by the commission on the managerial, financial, and
 40-5    technical capacity of the applicant to operate the system for which
 40-6    assistance is being requested; and
 40-7                (16)  include any other information required by the
 40-8    board.
 40-9          SECTION 40.  Subsections (b) and (c), Section 17.930, Water
40-10    Code, are amended to read as follows:
40-11          (b)  After making the considerations provided by Section
40-12    17.929 of this code, the board by resolution shall:
40-13                (1)  approve [or disapprove] the plan and application
40-14    as submitted;
40-15                (2)  approve the plan and application subject to the
40-16    requirements identified by the commission for the applicant to
40-17    obtain the managerial, financial, and technical capacity to operate
40-18    the system and any other requirements the board considers
40-19    appropriate;
40-20                (3)  deny the application and identify the requirements
40-21    or remedial steps the applicant must complete before the applicant
40-22    may be reconsidered for financial assistance;
40-23                (4)  if the board finds that the applicant will be
40-24    unable to obtain the managerial, financial, or technical capacity
40-25    to build and operate a system, deny the application and issue a
40-26    determination that a service provider other than the applicant is
40-27    necessary or appropriate to undertake the proposed project; or
 41-1                (5)  deny the application.
 41-2          (c)  The board [and] shall notify the applicant in writing of
 41-3    its decision.
 41-4          (d) [(c)]  The board may require the applicant to provide
 41-5    local funds in an amount approved by the board under this
 41-6    subchapter, and the board shall provide the remaining funds from
 41-7    the economically distressed areas account.
 41-8          SECTION 41.  Section 17.933(b), Water Code, is amended to
 41-9    read as follows:
41-10          (b)  In providing financial assistance to an applicant under
41-11    this subchapter, the board may not provide to the applicant
41-12    financial assistance for which repayment is not required in an
41-13    amount that exceeds 50 percent of the total amount of the financial
41-14    assistance plus interest on any amount that must be repaid, unless
41-15    the Texas Department of Health [commission] issues a finding that a
41-16    nuisance dangerous to the public health and safety exists resulting
41-17    from water supply and sanitation problems in the area to be served
41-18    by the proposed project.  The board and the applicant shall provide
41-19    to the Texas Department of Health [commission] information
41-20    necessary to make a determination, and the board and the Texas
41-21    Department of Health [commission] may enter into necessary
41-22    memoranda of understanding to carry out this subsection.
41-23          SECTION 42.  Subdivision (20), Section 26.001, Water Code, as
41-24    added by Section 23, Chapter 979, Acts of the 74th Legislature,
41-25    Regular Session, 1995, is amended to read as follows:
41-26                (20)  "Affected county" is a county to which Subchapter
41-27    B, Chapter 232 [has the meaning assigned by Section 232.021], Local
 42-1    Government Code, applies.
 42-2          SECTION 43.  Subdivision (26), Section 26.001, Water Code, as
 42-3    added by Section 24, Chapter 979, Acts of the 74th Legislature,
 42-4    Regular Session, 1995, is amended to read as follows:
 42-5                (26)  "Affected county" is a county to which Subchapter
 42-6    B, Chapter 232 [has the meaning assigned by Section 232.021], Local
 42-7    Government Code, applies.
 42-8          SECTION 44.  Title 7, Government Code, is amended by adding
 42-9    Chapter 775 to read as follows:
42-10             CHAPTER 775.  COORDINATION OF COLONIA INITIATIVES
42-11          Sec. 775.001.  DEFINITIONS.  In this chapter:
42-12                (1)  "Agency" means a state office, institution, or
42-13    other state governmental entity.
42-14                (2)  "Colonia" means a geographic area that:
42-15                      (A)  is an economically distressed area as
42-16    defined by Section 17.921, Water Code; and
42-17                      (B)  is located in a county any part of which is
42-18    within 50 miles of an international border.
42-19          Sec. 775.002.  INTERAGENCY COORDINATION OF COLONIA
42-20    INITIATIVES.  (a)  The governor may designate an agency to act as
42-21    the state's colonia initiatives coordinator.
42-22          (b)  If appointed under Subsection (a), the colonia
42-23    initiatives coordinator shall coordinate colonia initiatives within
42-24    the agency and with the other agencies and local officials involved
42-25    in colonia projects in the state.
42-26          (c)  The colonia initiatives coordinator may work with the
42-27    other agencies and local officials involved in colonia projects in
 43-1    the state to:
 43-2                (1)  coordinate efforts to address colonia issues;
 43-3                (2)  identify nonprofit self-help groups to help with
 43-4    colonia initiatives;
 43-5                (3)  set goals for each state fiscal year for colonia
 43-6    initiatives in the state, including goals to:
 43-7                      (A)  address easement problems; and
 43-8                      (B)  ensure that water and wastewater connections
 43-9    are extended from distribution lines to houses located in colonias;
43-10    and
43-11                (4)  ensure that the goals set under this subsection
43-12    are met each state fiscal year.
43-13          (d)  The following agencies shall designate an officer or
43-14    employee of the agency to serve as the agency's liaison for colonia
43-15    initiatives:
43-16                (1)  the office of the attorney general;
43-17                (2)  the Texas Department of Health;
43-18                (3)  the Texas Department of Housing and Community
43-19    Affairs;
43-20                (4)  the Texas Natural Resource Conservation
43-21    Commission; and
43-22                (5)  the Texas Water Development Board.
43-23          (e)  Each agency's liaison for colonia initiatives under
43-24    Subsection (d) must be a deputy executive director or a person of
43-25    equivalent or higher authority at the agency.  This subsection does
43-26    not authorize the creation of a new position for colonia
43-27    coordination at a state agency.
 44-1          Sec. 775.003.  COLONIA OMBUDSMAN PROGRAM.  The colonia
 44-2    initiatives coordinator may appoint a colonia ombudsman in each of
 44-3    the six border counties that the coordinator determines have the
 44-4    largest colonia populations.
 44-5          SECTION 45.  Section 3, The Plumbing License Law (Article
 44-6    6243-101, Vernon's Texas Civil Statutes), is amended to read as
 44-7    follows:
 44-8          Sec. 3.  ACTS PERMITTED WITHOUT A LICENSE.  (a)  The
 44-9    following acts, work and conduct shall be expressly permitted
44-10    without license:
44-11                (1) [(a)]  Plumbing work done by a property owner in a
44-12    building owned or occupied by him as his homestead;
44-13                (2) [(b)]  Plumbing work done outside the municipal
44-14    limits of any organized city, town or village in this state, or
44-15    within any such city, town or village of less than five thousand
44-16    (5,000) inhabitants, unless required by ordinance in such city,
44-17    town or village of less than five thousand (5,000) inhabitants;
44-18                (3) [(c)]  Plumbing work done by anyone who is
44-19    regularly employed as or acting as a maintenance man or maintenance
44-20    engineer, incidental to and in connection with the business in
44-21    which he is employed or engaged, and who does not engage in the
44-22    occupation of a plumber for the general public;  construction,
44-23    installation and maintenance work done upon the premises or
44-24    equipment of a railroad by an employee thereof who does not engage
44-25    in the occupation of a plumber for the general public; and plumbing
44-26    work done by persons engaged by any public service company in the
44-27    laying, maintenance and operation of its service mains or lines to
 45-1    the point of measurement and the installation, alteration,
 45-2    adjustment, repair, removal and renovation of all types of
 45-3    appurtenances, equipment and appliances, including doing all that
 45-4    is necessary to render the appliances useable or serviceable;
 45-5    appliance installation and service work done by anyone who is an
 45-6    appliance dealer or is employed by an appliance dealer, and acting
 45-7    as an appliance installation man or appliance service man in
 45-8    connecting appliances to existing piping installations;  water
 45-9    treatment installations, exchanges, services, or repairs.
45-10    Provided, however, that all work and service herein named or
45-11    referred to shall be subject to inspection and approval in
45-12    accordance with the terms of all local valid city or municipal
45-13    ordinances;
45-14                (4) [(d)]  Plumbing work done by an [a licensed]
45-15    irrigator licensed under Chapter 34, Water Code, or an [licensed]
45-16    installer licensed under Chapter 33, Water Code [when working and
45-17    licensed under Chapter 197, Acts of the 66th Legislature, Regular
45-18    Session, 1979 (Article 8751, Vernon's Texas Civil Statutes)].  A
45-19    person holding a valid license from the Texas State Board of
45-20    Plumbing Examiners shall not be required to be licensed by any
45-21    other board or agency when installing or working on a lawn
45-22    irrigation system;
45-23                (5) [(e)]  Plumbing work done by an LP Gas installer
45-24    when working and licensed under Chapter 113, Natural Resources
45-25    Code, as amended;
45-26                (6)  Plumbing work, limited to the provision of a
45-27    residential potable water supply or residential sanitary sewer
 46-1    connections, for a project in a geographic area that is located in
 46-2    a county any part of which is within 50 miles of an international
 46-3    border that is done by an organization that:
 46-4                      (A)  is certified by the Texas Natural Resource
 46-5    Conservation Commission to provide "self-help" project assistance;
 46-6    and
 46-7                      (B)  provides the board with the following
 46-8    information before the 30th day before the date the project begins:
 46-9                            (i)  a specific project location;
46-10                            (ii)  the intended duration of the project;
46-11    and
46-12                            (iii)  other information the board may
46-13    require.
46-14          (b)  Any failure by an organization to meet the requirements
46-15    of Subsection (a)(6) of this section, including the requirement to
46-16    obtain certification from the Texas Natural Resource Conservation
46-17    Commission under Subsection (a)(6)(A) of this section or the
46-18    requirement to provide a report to the board under Subsection
46-19    (a)(6)(B) of this section:
46-20                (1)  invalidates the exception granted under Subsection
46-21    (a)(6) of this section for the plumbing work performed by that
46-22    organization in relation to the specific project on which the
46-23    plumbing work is performed; and
46-24                (2)  makes any unlicensed individual or entity that
46-25    performs the plumbing work for that project subject to all
46-26    penalties ordinarily available to the board against an individual
46-27    or entity that performs plumbing work without a license.
 47-1          (c)  The board may provide training to an organization that
 47-2    provides "self-help" project assistance under Subsection (a)(6) of
 47-3    this section.
 47-4          SECTION 46.  On or before November 1, 1999, the agencies
 47-5    designated by Subsection (d), Section 775.002, Government Code, as
 47-6    added by this Act, shall designate an officer or employee to serve
 47-7    as that agency's colonia initiative liaison as provided by that
 47-8    section.
 47-9          SECTION 47.  (a)  The changes in law made by Section 5.124,
47-10    Water Code, as added by this Act, apply only to a grant made by the
47-11    Texas Natural Resource Conservation Commission on or after the
47-12    effective date of this Act and to a grant being considered by the
47-13    Texas Natural Resource Conservation Commission on the effective
47-14    date of this Act.
47-15          (b)  The changes in law made by Section 5.124, Water Code, as
47-16    added by this Act, do not affect the validity of or apply to a
47-17    grant the Texas Natural Resource Conservation Commission made
47-18    before the effective date of this Act.
47-19          (c)  The Texas Natural Resource Conservation Commission may
47-20    award a grant that, on the effective date of this Act, is being
47-21    considered under, or for which a solicitation for proposals has
47-22    been issued or an application has been received under, authority
47-23    other than Section 5.124, Water Code, as added by this Act:
47-24                (1)  under the other authority without regard to the
47-25    requirements of Section 5.124, Water Code; or
47-26                (2)  under the authority of Section 5.124, Water Code,
47-27    notwithstanding that the grant was considered, the solicitation was
 48-1    issued, or the application was received under the other authority.
 48-2          SECTION 48.  The changes in law made by this Act to Sections
 48-3    13.241 and 13.246, Water Code, apply only to an application for a
 48-4    new certificate of public convenience and necessity filed on or
 48-5    after the effective date of this Act.  An application for a new
 48-6    certificate of public convenience and necessity filed before the
 48-7    effective date of this Act is governed by the law in effect on the
 48-8    date the application was filed, and that law is continued in effect
 48-9    for that purpose.
48-10          SECTION 49.  The changes in law made by this Act to Sections
48-11    15.407, 17.927, and 17.930, Water Code, apply only to:
48-12                (1)  an application for assistance under those
48-13    provisions that is pending before or submitted to the Texas Water
48-14    Development Board on or after September 1, 1999; and
48-15                (2)  a contract under Section 15.407, Water Code,
48-16    regardless of the date the contract was made.
48-17          SECTION 50.  (a)  The change in law made by this Act by
48-18    adding Section 16.352, Water Code, applies only to the violation of
48-19    a rule adopted by a municipality or county under Subchapter J,
48-20    Chapter 16, Water Code, or Section 232.030, Local Government Code,
48-21    that occurs on or after the effective date of this Act.  For
48-22    purposes of this section, a violation occurs before the effective
48-23    date of this Act if any element of the violation occurs before that
48-24    date.
48-25          (b)  A violation of a rule adopted by a municipality or
48-26    county under Subchapter J, Chapter 16, Water Code, or Section
48-27    232.030, Local Government Code, that occurs before the effective
 49-1    date of this Act is governed by the law in effect when the
 49-2    violation occurred, and the former law is continued in effect for
 49-3    that purpose.
 49-4          SECTION 51.  The change in law made by Section 16.356, Water
 49-5    Code, as added by this Act, applies only to a political subdivision
 49-6    subject to that section beginning on the first day of the fiscal
 49-7    year of the political subdivision that begins on or after the
 49-8    effective date of this Act.
 49-9          SECTION 52.  This Act takes effect September 1, 1999.
49-10          SECTION 53.  The importance of this legislation and the
49-11    crowded condition of the calendars in both houses create an
49-12    emergency and an imperative public necessity that the
49-13    constitutional rule requiring bills to be read on three several
49-14    days in each house be suspended, and this rule is hereby suspended.