By:  Baxter (Senate Sponsor - Wentworth)                          H.B. No. 1204
	(In the Senate - Received from the House April 25, 2003; 
April 28, 2003, read first time and referred to Committee on 
Intergovernmental Relations; May 23, 2003, reported adversely, 
with favorable Committee Substitute by the following vote:  Yeas 4, 
Nays 0; May 23, 2003, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 1204                                   By:  Wentworth

A BILL TO BE ENTITLED
AN ACT
relating to the authority of municipalities and counties to regulate subdivisions and certain development in a municipality's extraterritorial jurisdiction. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The heading of Section 242.001, Local Government Code, is amended to read as follows: Sec. 242.001. REGULATION OF SUBDIVISIONS IN EXTRATERRITORIAL JURISDICTION GENERALLY. SECTION 2. (a) Section 242.001(a), Local Government Code, as amended by Chapters 736 and 1028, Acts of the 77th Legislature, Regular Session, 2001, is reenacted and amended to read as follows: (a) This section applies only to a county operating under Sections 232.001-232.005 or Subchapter B, C, or E, Chapter 232, and a municipality that has extraterritorial jurisdiction in that county. Subsections (b)-(g) [(b)-(e)] do not apply: (1) within a county that contains extraterritorial jurisdiction of a municipality with a population of 1.9 million or more; or (2) within a county within 50 miles of an international border, or to which Subchapter C, Chapter 232, applies. (b) This section takes effect only if House Bill No. 1197, Acts of the 78th Legislature, Regular Session, 2003, does not become law. If that bill becomes law, this section has no effect. SECTION 3. (a) Section 242.001(a), Local Government Code, as amended by Chapters 736 and 1028, Acts of the 77th Legislature, Regular Session, 2001, is reenacted and amended to read as follows: (a) This section applies only to a county operating under Sections 232.001-232.005 or Subchapter B, C, or E, Chapter 232, and a municipality that has extraterritorial jurisdiction in that county. Subsections (b)-(g) [(b)-(e)] do not apply: (1) within a county that contains extraterritorial jurisdiction of a municipality with a population of 1.9 million or more; [or] (2) within a county within 50 miles of an international border, or to which Subchapter C, Chapter 232, applies; or (3) to a tract of land subject to a development agreement under Subchapter G, Chapter 212, or other provisions of this code. (b) This section takes effect only if House Bill No. 1197, Acts of the 78th Legislature, Regular Session, 2003, becomes law. If that bill does not become law, this section has no effect. SECTION 4. Section 242.001, Local Government Code, is amended by reenacting and amending Subsection (c), as amended by Chapters 736 and 1028, Acts of the 77th Legislature, Regular Session, 2001, and by amending Subsections (d), (f), and (g) and adding Subsections (h) and (i) to read as follows: (c) Except as provided by Subsections (d)(3) and (4), a municipality and a county may not both regulate subdivisions and approve related permits in the extraterritorial jurisdiction of a municipality after an agreement under Subsection (d) is executed. The municipality and the county shall enter into a written agreement that identifies the governmental entity authorized to regulate subdivision plats and approve related permits in the extraterritorial jurisdiction. For a municipality in existence on September 1, 2001, the municipality and county shall enter into a written agreement under this subsection on or before April 1, 2002. For a municipality incorporated after September 1, 2001, the municipality and county shall enter into a written agreement under this subsection not later than the 120th day after the date the municipality incorporates. On reaching an agreement, the municipality and county shall certify that the agreement complies with the requirements of this chapter. The municipality and the county shall adopt the agreement by order, ordinance, or resolution. The agreement must be amended by the municipality and the county if necessary to take into account an expansion or reduction in the extraterritorial jurisdiction of the municipality. The municipality shall notify the county of any expansion or reduction in the municipality's extraterritorial jurisdiction. Any expansion or reduction in the municipality's extraterritorial jurisdiction that affects property that is subject to a preliminary or final plat, a plat application, or an application for a related permit filed with the municipality or the county or that was previously approved under Section 212.009 or Chapter 232 does not affect any rights accrued under Chapter 245. The approval of the plat, [or] any permit, a plat application, or an application for a related permit remains effective as provided by Chapter 245 regardless of the change in designation as extraterritorial jurisdiction of the municipality. (d) An agreement under Subsection (c) may grant the authority to regulate subdivision plats and approve related permits in the extraterritorial jurisdiction of a municipality as follows: (1) the municipality may be granted exclusive jurisdiction to regulate subdivision plats and approve related permits in the extraterritorial jurisdiction and may regulate subdivisions under Subchapter A of Chapter 212 and other statutes applicable to municipalities; (2) the county may be granted exclusive jurisdiction to regulate subdivision plats and approve related permits in the extraterritorial jurisdiction and may regulate subdivisions under Sections 232.001-232.005, Subchapter B or C, Chapter 232, and other statutes applicable to counties; (3) the municipality and the county may apportion the area within the extraterritorial jurisdiction of the municipality with the municipality regulating subdivision plats and approving related permits in the area assigned to the municipality and the county regulating subdivision plats and approving related permits in the area assigned to the county; or (4) the municipality and the county may enter into an interlocal agreement that: (A) establishes one office that is authorized to: (i) accept plat applications for tracts of land located in the extraterritorial jurisdiction; (ii) collect municipal and county plat application fees in a lump-sum amount; and (iii) provide applicants one response indicating approval or denial of the plat application; and (B) establishes a single set of consolidated and consistent [set of] regulations related to plats, subdivision construction plans, and subdivisions of land as authorized by Chapter 212, Sections 232.001-232.005, Subchapters B and C, Chapter 232, and other statutes applicable to municipalities and counties that will be enforced in the extraterritorial jurisdiction. (f) If a certified agreement between a county and municipality as required by Subsection (c) is not in effect on or before the applicable date prescribed by Section 242.0015(a), the municipality and the county must enter into arbitration as provided by Section 242.0015. If the arbitrator or arbitration panel, as applicable, has not reached a decision in the 60-day period as provided by Section 242.0015, the arbitrator or arbitration panel, as applicable, shall issue an interim decision regarding the regulation of plats and subdivisions and approval of related permits in the extraterritorial jurisdiction of the municipality. The interim decision shall provide for a single set of regulations and authorize a single entity to regulate plats and subdivisions. The interim decision remains in effect only until the arbitrator or arbitration panel reaches a final decision. [This subsection applies until an agreement is reached under Subsection (d). For an area in a municipality's extraterritorial jurisdiction, as defined by Section 212.001, a plat may not be filed with the county clerk without the approval of both the municipality and the county. If a municipal regulation and a county regulation relating to plats and subdivisions of land conflict, the more stringent regulation prevails. However, if one governmental entity requires a plat to be filed for the subdivision of a particular tract of land in the extraterritorial jurisdiction of the municipality and the other governmental entity does not require the filing of a plat for that subdivision, the authority responsible for approving plats for the governmental entity that does not require the filing shall issue on request of the subdivider a written certification stating that a plat is not required to be filed for that subdivision of the land. The certification must be attached to a plat required to be filed under this subsection.] (g) If a regulation or agreement adopted under this section relating to plats and subdivisions of land or subdivision development establishes a plan for future roads that conflicts with a proposal or plan for future roads adopted by a metropolitan planning organization, the proposal or plan of the metropolitan planning organization prevails [Subsection (f) applies to a county and area to which Subsections (b)-(e) do not apply]. (h) This subsection applies only to a county to which Subsections (b)-(g) do not apply, except that this subsection does not apply to a county subject to Section 242.002. For an area in a municipality's extraterritorial jurisdiction, as defined by Section 212.001, a plat may not be filed with the county clerk without the approval of both the municipality and the county. If a municipal regulation and a county regulation relating to plats and subdivisions of land conflict, the more stringent regulation prevails. However, if one governmental entity requires a plat to be filed for the subdivision of a particular tract of land in the extraterritorial jurisdiction of the municipality and the other governmental entity does not require the filing of a plat for that subdivision, the authority responsible for approving plats for the governmental entity that does not require the filing shall issue on request of the subdivider a written certification stating that a plat is not required to be filed for that subdivision of the land. The certification must be attached to a plat required to be filed under this subsection. (i) Property subject to pending approval of a preliminary or final plat application filed after September 1, 2002, that is released from the extraterritorial jurisdiction of a municipality shall be subject only to county approval of the plat application and related permits and county regulation of that plat. This subsection does not apply to the simultaneous exchange of extraterritorial jurisdiction between two or more municipalities or an exchange of extraterritorial jurisdiction that is contingent on the subsequent approval by the releasing municipality. SECTION 5. Chapter 242, Local Government Code, is amended by adding Section 242.0015 to read as follows: Sec. 242.0015. ARBITRATION REGARDING SUBDIVISION REGULATION AGREEMENT. (a) This section applies only to a county and a municipality that are required to make an agreement as described under Section 242.001(f). If a certified agreement between a county and a municipality with an extraterritorial jurisdiction that extends 3.5 miles or more from the corporate boundaries of the municipality is not in effect on or before January 1, 2004, the parties must arbitrate the disputed issues. If a certified agreement between a county and a municipality with an extraterritorial jurisdiction that extends less than 3.5 miles from the corporate boundaries of the municipality is not in effect on or before January 1, 2006, the parties must arbitrate the disputed issues. A party may not refuse to participate in arbitration requested under this section. An arbitration decision under this section is binding on the parties. (b) The county and the municipality must agree on an individual to serve as arbitrator. If the county and the municipality cannot agree on an individual to serve as arbitrator, the county and the municipality shall each select an arbitrator and the arbitrators selected shall select a third arbitrator. (c) The third arbitrator selected under Subsection (b) presides over the arbitration panel. (d) Not later than the 30th day after the date the county and the municipality are required to have an agreement in effect under Section 242.001(f), the arbitrator or arbitration panel, as applicable, must be selected. (e) The authority of the arbitrator or arbitration panel is limited to issuing a decision relating only to the disputed issues between the county and the municipality regarding the authority of the county or municipality to regulate plats, subdivisions, or development plans. (f) Each party is equally liable for the costs of an arbitration conducted under this section. (g) The arbitrator or arbitration panel, as applicable, shall render a decision under this section not later than the 60th day after the date the arbitrator or arbitration panel is selected. If after a good faith effort the arbitrator or panel has not reached a decision as provided under this subsection, the arbitrator or panel shall continue to arbitrate the matter until the arbitrator or panel reaches a decision. (h) A municipality and a county may not arbitrate the subdivision of an individual plat under this section. SECTION 6. Subchapter A, Chapter 212, Local Government Code, is amended by adding Section 212.0025 to read as follows: Sec. 212.0025. CHAPTER-WIDE PROVISION RELATING TO REGULATION OF PLATS AND SUBDIVISIONS IN EXTRATERRITORIAL JURISDICTION. The authority of a municipality under this chapter relating to the regulation of plats or subdivisions in the municipality's extraterritorial jurisdiction is subject to any applicable limitation prescribed by an agreement under Section 242.001. SECTION 7. The heading of Chapter 232, Local Government Code, is amended to read as follows:
CHAPTER 232. COUNTY REGULATION OF SUBDIVISIONS AND PROPERTY DEVELOPMENT
SECTION 8. Subchapter A, Chapter 232, Local Government Code, is amended by adding Section 232.0013 to read as follows: Sec. 232.0013. CHAPTER-WIDE PROVISION RELATING TO REGULATION OF PLATS AND SUBDIVISIONS IN EXTRATERRITORIAL JURISDICTION. The authority of a county under this chapter relating to the regulation of plats or subdivisions in the extraterritorial jurisdiction of a municipality is subject to any applicable limitation prescribed by an agreement under Section 242.001 or by Section 242.002. SECTION 9. Section 232.0015(b), Local Government Code, is amended to read as follows: (b) Except as provided by Section 232.0013, this [This] subchapter does not apply to a subdivision of land to which Subchapter B applies. SECTION 10. Section 232.022(a), Local Government Code, is amended to read as follows: (a) This subchapter applies only to: (1) a county any part of which is located within 50 miles of an international border; or (2) a county in which an election has been held under Section 232.0221 on the question of whether the county shall operate under this subchapter and the majority of the votes cast in the election were in the affirmative. SECTION 11. Subchapter B, Chapter 232, Local Government Code, is amended by adding Section 232.0221 to read as follows: Sec. 232.0221. ELECTION. (a) The commissioners court of a county may order and hold an election in the county on the question of granting the commissioners court the authority to regulate the subdivision of land under this subchapter. (b) For an election under this section, the ballot shall be prepared to permit voting for or against the proposition: "Granting (name of county) the authority to regulate the subdivision of land in the unincorporated area of the county." SECTION 12. Subchapter B, Chapter 232, Local Government Code, is amended by adding Section 232.0225 to read as follows: Sec. 232.0225. MINIMUM STATE STANDARDS. (a) To the extent this subchapter refers to minimum state standards or refers to the application of a provision of Chapter 16, Water Code, the references apply to all counties regardless of any limitation established by Chapter 16, Water Code, including the limitation established by Section 16.343(f), Water Code. (b) This section and the other provisions of this subchapter do not authorize a county to participate in any financial assistance program or any other program authorized by Chapter 15, 16, or 17, Water Code, unless the county qualifies under the Water Code. SECTION 13. Section 232.025, Local Government Code, is amended to read as follows: Sec. 232.025. SUBDIVISION REQUIREMENTS. By an order adopted and entered in the minutes of the commissioners court, and after a notice is published in English and Spanish in a newspaper of general circulation in the county, the commissioners court shall for each subdivision: (1) require a right-of-way on a street or road that functions as a main artery in a subdivision, of a width of not less than 50 feet or more than 100 feet; (2) require a right-of-way on any other street or road in a subdivision of not less than 40 feet or more than 70 feet; (3) require that the shoulder-to-shoulder width on collectors or main arteries within the right-of-way be not less than 32 feet or more than 56 feet, and that the shoulder-to-shoulder width on any other street or road be not less than 25 feet or more than 35 feet; (4) adopt, based on the amount and kind of travel over each street or road in a subdivision, reasonable specifications relating to the construction of each street or road; (5) adopt reasonable specifications to provide adequate drainage for each street or road in a subdivision in accordance with standard engineering practices; (6) require that each purchase contract made between a subdivider and a purchaser of land in the subdivision contain a statement describing how and when water, sewer, electricity, and gas services will be made available to the subdivision; [and] (7) require that the subdivider of the tract execute a bond in the manner provided by Section 232.027; (8) adopt reasonable specifications that provide for drainage in the subdivision to: (A) efficiently manage the flow of stormwater runoff in the subdivision; and (B) coordinate subdivision drainage with the general storm drainage pattern for the area; and (9) require lot and block monumentation to be set by a registered professional surveyor before recordation of the plat. SECTION 14. Subchapter B, Chapter 232, Local Government Code, is amended by adding Sections 232.0255 and 232.0256 to read as follows: Sec. 232.0255. STANDARD FOR ROADS IN SUBDIVISION. A county may not impose under Section 232.025 a higher standard for streets or roads in a subdivision than the county imposes on itself for the construction of streets or roads with a similar type and amount of traffic. Sec. 232.0256. ADDITIONAL REQUIREMENTS: USE OF GROUNDWATER. (a) If a person submits a plat for the subdivision of a tract of land for which the source of the water supply intended for the subdivision is groundwater under that land, the commissioners court of a county by order may require the plat application to have attached to it a statement that: (1) is prepared by an engineer licensed to practice in this state or a geoscientist licensed to practice in this state; and (2) certifies that adequate groundwater is available for the subdivision. (b) The Texas Commission on Environmental Quality by rule shall establish the appropriate form and content of a certification to be attached to a plat application under this section. SECTION 15. Section 232.038, Local Government Code, is amended to read as follows: Sec. 232.038. SUIT BY PRIVATE PERSON [IN ECONOMICALLY DISTRESSED AREA]. (a) This section applies only to: (1) a [A] person who has purchased or is purchasing from a subdivider a lot after July 1, 1995, in a subdivision for residential purposes that does not have water and sewer services as required by this subchapter and is located in an economically distressed area, as defined by Section 17.921, Water Code; or (2) a person who has purchased or is purchasing from a subdivider a lot after September 1, 2003, in a subdivision for residential purposes that does not have water and sewer services as required by this subchapter. (b) A person described by Subsection (a)[, from a subdivider,] may bring suit in the district court in which the property is located [or in a district court in Travis County] to: (1) declare the sale of the property void and require the subdivider to return the purchase price of the property; and (2) recover from the subdivider: (A) the market value of any permanent improvements the person placed on the property; (B) actual expenses incurred as a direct result of the failure to provide adequate water and sewer facilities; (C) court costs; and (D) reasonable attorney's fees. SECTION 16. Chapter 232, Local Government Code, is amended by adding Subchapter F to read as follows:
SUBCHAPTER F. REGULATION OF LAND DEVELOPMENT
Sec. 232.151. SCOPE OF REGULATORY AUTHORITY. The commissioners court of a county that is granted authority in accordance with this subchapter may regulate, by order, land development in the unincorporated area of the county by: (1) requiring a subdivision to use a central water or wastewater system under standards adopted by the county; (2) requiring that a subdivision have a minimum fire suppression system, including the use of fire hydrants, storage tanks, or ponds; (3) requiring improvements to roadways serving a subdivision; (4) requiring a minimum amount of open space or imposing a limit on the amount of impervious cover for recharge and runoff purposes; (5) imposing impact fees under Chapter 395; or (6) adopting any other regulation necessary to regulate or manage land development. Sec. 232.152. COMPLIANCE WITH CERTAIN LAWS. A county adopting a regulation under this subchapter relating to the location, design, construction, installation, size, or extension of an on-site sewage disposal system: (1) must be an authorized agent as defined by Section 366.002, Health and Safety Code; and (2) must adopt regulations in accordance with Chapter 366, Health and Safety Code. Sec. 232.153. ELECTION TO GRANT REGULATORY AUTHORITY. The commissioners court of a county may order and hold an election in the unincorporated area of the county on the question of granting the commissioners court the authority to regulate land development in the unincorporated area of the county. Only voters who reside in the unincorporated area of the county are eligible to vote in an election held under this subchapter. Sec. 232.154. BALLOT PROPOSITION. For an election under this subchapter, the ballot shall be prepared to permit voting for or against the proposition: "Granting (name of county) the authority to regulate land development in the unincorporated area of the county." Sec. 232.155. EFFECT OF ELECTION. If a majority of the votes received on the question at the election approve the grant of authority, the commissioners court of the county may adopt a regulation under this subchapter. SECTION 17. Section 395.001(7), Local Government Code, is amended to read as follows: (7) "Political subdivision" means: (A) a municipality; (B) [,] a district or authority created under Article III, Section 52, or Article XVI, Section 59, of the Texas Constitution; (C) [, or,] for the purposes set forth by Section 395.079, certain counties described by that section; or (D) a county authorized to regulate land development under Subchapter F, Chapter 232. SECTION 18. Section 395.011(b), Local Government Code, is amended to read as follows: (b) Political subdivisions may enact or impose impact fees on land within their [corporate] boundaries or extraterritorial jurisdictions only by complying with this chapter, except that impact fees may not be enacted or imposed in the extraterritorial jurisdiction for roadway facilities. SECTION 19. Sections 395.016(c) and (d), Local Government Code, are amended to read as follows: (c) This subsection applies only to impact fees adopted after June 20, 1987. For new development which is platted in accordance with Subchapter A, Chapter 212, or Subchapter A or B, Chapter 232, or the subdivision or platting procedures of any other [a] political subdivision before the adoption of an impact fee, an impact fee may not be collected on any service unit for which a valid building permit is issued within one year after the date of adoption of the impact fee. (d) This subsection applies only to land platted in accordance with Subchapter A, Chapter 212, or Subchapter A or B, Chapter 232, or the subdivision or platting procedures of any other [a] political subdivision after adoption of an impact fee adopted after June 20, 1987. The political subdivision shall assess the impact fees before or at the time of recordation of a subdivision plat or other plat under Subchapter A, Chapter 212, or Subchapter A or B, Chapter 232, or the subdivision or platting ordinance or procedures of any other political subdivision in the official records of the county clerk of the county in which the tract is located. Except as provided by Section 395.019, if the political subdivision has water and wastewater capacity available: (1) the political subdivision shall collect the fees at the time the political subdivision issues a building permit; (2) for land platted outside the corporate boundaries of a municipality, the municipality shall collect the fees at the time an application for an individual meter connection to the municipality's water or wastewater system is filed; or (3) a political subdivision that lacks authority to issue building permits in the area where the impact fee applies shall collect the fees at the time an application is filed for an individual meter connection to the political subdivision's water or wastewater system. SECTION 20. Section 13.002(26), Water Code, is amended to read as follows: (26) "Affected county" is a county any part of which is located within 50 miles of an international border [to which Subchapter B, Chapter 232, Local Government Code, applies]. SECTION 21. Section 13.2501, Water Code, is amended to read as follows: Sec. 13.2501. CONDITIONS REQUIRING REFUSAL OF SERVICE. The holder of a certificate of public convenience and necessity shall refuse to serve a customer within its certified area if the holder of the certificate is prohibited from providing the service under Section 212.012 or 232.029 [232.0047], Local Government Code. SECTION 22. Section 26.001(26), Water Code, as added by Section 24, Chapter 979, Acts of the 74th Legislature, Regular Session, 1995, is amended to read as follows: (26) "Affected county" is a county any part of which is located within 50 miles of an international border [to which Subchapter B, Chapter 232, Local Government Code, applies]. SECTION 23. If any provision of this Act or its application to any county, municipality, or circumstance is held invalid, the invalidity does not affect other provisions or applications of this Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are declared to be severable. SECTION 24. Except as provided by Section 242.001(i), Local Government Code, as added by this Act, the changes in law made by this Act to Chapters 212, 232, and 242, Local Government Code, apply only to a development agreement or subdivision plat that is filed on or after the effective date of this Act, and to the subdivision covered by the plat. A development agreement or subdivision plat that is filed before the effective date of this Act, and the subdivision covered by the plat, are governed by the law in effect immediately preceding that date, and the former law is continued in effect for that purpose. SECTION 25. The changes in law made by this Act to Chapter 232, Local Government Code, and other statutes apply only to a tract of land subdivided on or after September 1, 2003. A tract of land subdivided before that date is governed by the law in effect immediately before that date, and the former law is continued in effect for that purpose. SECTION 26. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.
* * * * *