1 | 1 | | H.B. No. 3492 |
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2 | 2 | | |
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3 | 3 | | |
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4 | 4 | | AN ACT |
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5 | 5 | | relating to county and municipal authority to impose certain |
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6 | 6 | | value-based fees and require disclosure of certain information |
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7 | 7 | | related to subdivision construction. |
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8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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9 | 9 | | SECTION 1. Subchapter Z, Chapter 212, Local Government |
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10 | 10 | | Code, is amended by adding Section 212.906 to read as follows: |
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11 | 11 | | Sec. 212.906. CERTAIN VALUE-BASED FEES AND DISCLOSURE OF |
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12 | 12 | | CERTAIN INFORMATION PROHIBITED. (a) This section applies only to |
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13 | 13 | | an application, review, engineering, inspection, acceptance, |
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14 | 14 | | administrative, or other fee imposed by a municipality related to |
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15 | 15 | | the acceptance, review, or processing of engineering or |
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16 | 16 | | construction plans or for the inspection of improvements for |
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17 | 17 | | construction of a subdivision or lot or a related improvement |
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18 | 18 | | associated with or required in conjunction with that construction. |
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19 | 19 | | (b) A municipality may not consider the cost of constructing |
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20 | 20 | | or improving the public infrastructure for a subdivision, lot, or |
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21 | 21 | | related property development in determining the amount of a fee |
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22 | 22 | | subject to this section. The municipality shall determine the fee |
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23 | 23 | | by considering the municipality's actual cost to, as applicable, |
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24 | 24 | | review and process the engineering or construction plan or to |
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25 | 25 | | inspect the public infrastructure improvement. |
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26 | 26 | | (c) In determining the municipality's actual cost for |
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27 | 27 | | reviewing and processing an engineering or construction plan or |
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28 | 28 | | inspecting a public infrastructure improvement under Subsection |
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29 | 29 | | (b), a municipality may consider: |
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30 | 30 | | (1) the fee that would be charged by a qualified, |
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31 | 31 | | independent third-party entity for those services; |
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32 | 32 | | (2) the hourly rate for the estimated actual direct |
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33 | 33 | | time of the municipality's employees performing those services; or |
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34 | 34 | | (3) the actual costs assessed to the municipality by a |
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35 | 35 | | third-party entity that provides those services to the |
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36 | 36 | | municipality. |
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37 | 37 | | (d) A municipality may not require the disclosure of |
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38 | 38 | | information related to the value of or cost of constructing or |
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39 | 39 | | improving a residential dwelling or the public infrastructure |
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40 | 40 | | improvements for a subdivision, lot, or related property |
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41 | 41 | | development as a condition of obtaining approval for subdivision |
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42 | 42 | | construction or for the acceptance of those public infrastructure |
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43 | 43 | | improvements except as required by the Federal Emergency Management |
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44 | 44 | | Agency for participation in the National Flood Insurance Program. |
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45 | 45 | | (e) A municipality that imposes a fee for reviewing or |
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46 | 46 | | processing an engineering or construction plan or inspecting a |
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47 | 47 | | public infrastructure improvement shall annually publish the fee |
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48 | 48 | | and the hourly rate and estimated direct time incurred by municipal |
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49 | 49 | | employees for a fee calculated under Subsection (c)(2). The |
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50 | 50 | | municipality must publish the information: |
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51 | 51 | | (1) on the municipality's Internet website; or |
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52 | 52 | | (2) if the municipality does not maintain an Internet |
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53 | 53 | | website, in a newspaper of general circulation in the county in |
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54 | 54 | | which the municipality is primarily located. |
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55 | 55 | | SECTION 2. Chapter 232, Local Government Code, is amended |
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56 | 56 | | by adding Subchapter Z to read as follows: |
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57 | 57 | | SUBCHAPTER Z. MISCELLANEOUS PROVISIONS |
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58 | 58 | | Sec. 232.901. CERTAIN VALUE-BASED FEES AND DISCLOSURE OF |
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59 | 59 | | CERTAIN INFORMATION PROHIBITED. (a) This section applies only to |
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60 | 60 | | an application, review, engineering, inspection, acceptance, |
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61 | 61 | | administrative, or other fee imposed by a county related to the |
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62 | 62 | | acceptance, review, or processing of engineering or construction |
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63 | 63 | | plans or for the inspection of improvements for construction in a |
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64 | 64 | | subdivision or a related improvement associated with or required in |
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65 | 65 | | conjunction with that construction. |
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66 | 66 | | (b) A county may not consider the cost of constructing or |
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67 | 67 | | improving the public infrastructure for a subdivision, lot, or |
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68 | 68 | | related property development in determining the amount of a fee |
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69 | 69 | | subject to this section. The county shall determine the fee by |
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70 | 70 | | considering the county's actual cost to, as applicable, review and |
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71 | 71 | | process the engineering or construction plan or to inspect the |
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72 | 72 | | public infrastructure improvement. |
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73 | 73 | | (c) In determining the county's actual cost for reviewing |
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74 | 74 | | and processing an engineering or construction plan or inspecting a |
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75 | 75 | | public infrastructure improvement under Subsection (b), a county |
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76 | 76 | | may consider: |
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77 | 77 | | (1) the fee that would be charged by a qualified, |
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78 | 78 | | independent third-party entity for those services; |
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79 | 79 | | (2) the hourly rate for the estimated actual direct |
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80 | 80 | | time of the county's employees performing those services; or |
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81 | 81 | | (3) the actual costs assessed to the county by a |
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82 | 82 | | third-party entity that provides those services to the county. |
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83 | 83 | | (d) A county may not require the disclosure of information |
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84 | 84 | | related to the value of or cost of constructing or improving a |
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85 | 85 | | residential dwelling or the public infrastructure improvements for |
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86 | 86 | | a subdivision, lot, or related property development as a condition |
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87 | 87 | | of obtaining approval for subdivision construction or for the |
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88 | 88 | | acceptance of those public infrastructure improvements except as |
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89 | 89 | | required by the Federal Emergency Management Agency for |
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90 | 90 | | participation in the National Flood Insurance Program. |
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91 | 91 | | (e) A county that imposes a fee for reviewing or processing |
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92 | 92 | | an engineering or construction plan or inspecting a public |
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93 | 93 | | infrastructure improvement shall annually publish the fee and the |
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94 | 94 | | hourly rate and estimated direct time incurred by county employees |
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95 | 95 | | for a fee calculated under Subsection (c)(2). The county must |
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96 | 96 | | publish the information: |
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97 | 97 | | (1) on the county's Internet website; or |
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98 | 98 | | (2) if the county does not maintain an Internet |
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99 | 99 | | website, in a newspaper of general circulation in the county. |
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100 | 100 | | SECTION 3. The changes in law made by this Act apply only to |
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101 | 101 | | a fee subject to Section 212.906 or 232.901, Local Government Code, |
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102 | 102 | | as added by this Act, assessed by a county or municipality on or |
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103 | 103 | | after the effective date of this Act. |
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104 | 104 | | SECTION 4. This Act takes effect September 1, 2023. |
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105 | 105 | | ______________________________ ______________________________ |
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106 | 106 | | President of the Senate Speaker of the House |
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107 | 107 | | I certify that H.B. No. 3492 was passed by the House on May 2, |
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108 | 108 | | 2023, by the following vote: Yeas 142, Nays 3, 1 present, not |
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109 | 109 | | voting. |
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110 | 110 | | ______________________________ |
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111 | 111 | | Chief Clerk of the House |
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112 | 112 | | I certify that H.B. No. 3492 was passed by the Senate on May |
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113 | 113 | | 19, 2023, by the following vote: Yeas 23, Nays 8. |
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114 | 114 | | ______________________________ |
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115 | 115 | | Secretary of the Senate |
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116 | 116 | | APPROVED: _____________________ |
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117 | 117 | | Date |
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118 | 118 | | _____________________ |
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119 | 119 | | Governor |
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