By: Fraser S.B. No. 1741 (In the Senate - Filed March 11, 2011; March 23, 2011, read first time and referred to Committee on Natural Resources; April 13, 2011, reported favorably by the following vote: Yeas 7, Nays 0; April 13, 2011, sent to printer.) A BILL TO BE ENTITLED AN ACT relating to tree mitigation fees imposed by municipalities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 212, Local Government Code, is amended by adding Subchapter H to read as follows: SUBCHAPTER H. MUNICIPAL TREE MITIGATION FEE Sec. 212.191. APPLICABILITY. This subchapter applies to a municipality that requires as a condition for approval of a permit that an applicant pay the municipality or a third party a tree mitigation fee. Sec. 212.192. AMOUNT OF MUNICIPAL TREE MITIGATION FEE. A municipality that requires a tree mitigation fee to offset the impact of an activity that a municipal permit authorizes must set the fee in an amount that is roughly proportionate to the impact that the activity will have on the public. Sec. 212.193. FILING OF APPEAL WITH MUNICIPALITY. A permit applicant may appeal the amount of a tree mitigation fee set by a municipality under this subchapter by filing an appeal with the governing body of the municipality. The appeal must be in writing and specify the grounds for the appeal. Sec. 212.194. HEARING ON APPEAL TO MUNICIPALITY. (a) Not later than the 30th day after the date the notice of appeal is filed under Section 212.193, the governing body of the municipality shall set a hearing for the appeal. (b) At the hearing the permit applicant may present evidence and witness testimony that is relevant to the tree mitigation fee determination. (c) The permit applicant may appear at the hearing in person or by agent or attorney. (d) Not later than the 30th day after the date the hearing concludes, the governing body shall make a final determination regarding the amount of the tree mitigation fee. Sec. 212.195. APPEAL TO COUNTY OR DISTRICT COURT. (a) Not later than the 30th day after the date the final determination is made under Section 212.194, a permit applicant may appeal the determination to a county or district court in the county in which the activity to be permitted will occur. (b) The municipality shall have the burden of proof to establish that the amount of the tree mitigation fee is roughly proportionate to the impact that the activity to be permitted will have on the public. (c) The court shall award attorney's fees and costs of court to a permit applicant who prevails in a suit under this section. Sec. 212.196. NO WAIVER OF RIGHT TO APPEAL. (a) A municipality may not require a permit applicant to waive a right of appeal under this subchapter as a condition for approval of a permit. (b) A permit applicant who pays a contested tree mitigation fee does not waive a right of appeal under this subchapter by taking an action authorized by a permit issued by the municipality. Sec. 212.197. APPLICATION OF LAW RELATED TO CAPITAL IMPROVEMENTS. This subchapter does not diminish the authority or modify the procedures specified by Chapter 395. SECTION 2. (a) Except as provided by Subsection (b) of this section, the changes in law made by Subchapter H, Chapter 212, Local Government Code, as added by this Act, apply only to a tree mitigation fee assessed by a municipality on or after the effective date of this Act. (b) The changes in law made by Subchapter H, Chapter 212, Local Government Code, as added by this Act, apply to a contested tree mitigation fee assessed by a municipality before the effective date of this Act if an appeal of the amount of the fee has not been finally determined or adjudicated on the effective date of this Act. SECTION 3. 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, 2011. * * * * *