Texas 2023 88th Regular

Texas Senate Bill SB1786 Introduced / Bill

Filed 03/07/2023

                    88R2894 SCL-D
 By: Bettencourt S.B. No. 1786


 A BILL TO BE ENTITLED
 AN ACT
 relating to approval procedures for property development review by
 a municipality.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 212.0065(c), Local Government Code, is
 amended to read as follows:
 (c)  The person or persons shall not disapprove the plat and
 shall be required to refer any plat which the person or persons
 refuse to approve to the municipal authority responsible for
 approving plats within the time period specified in Section 212.023
 [212.009].
 SECTION 2.  Chapter 212, Local Government Code, is amended
 by adding Subchapter A-1 to read as follows:
 SUBCHAPTER A-1. APPROVAL PROCEDURES FOR PROPERTY DEVELOPMENT
 REVIEW
 Sec. 212.021.  DEFINITIONS. In this subchapter:
 (1)  "Development application" means an application
 made to a municipal authority for property development review.
 (2)  "Development inspection" means the inspection of
 an improvement to land required to be conducted as part of a project
 to develop the land or construct or improve an improvement to the
 land.
 (3)  "Development permit" means a permit required to be
 obtained to develop land or construct or improve an improvement to
 land.
 (4)  "Municipal authority" means the municipal
 authority responsible for conducting a property development review
 under law.
 (5)  "Plan" and "plat" have the meanings assigned by
 Section 212.001.
 (6)  "Property development review" means the process of
 granting municipal approval to subdivide land, develop land, or
 construct or improve an improvement to land. The term includes the
 review of a development application.
 Sec. 212.028.  DELEGATION OF APPROVAL RESPONSIBILITY TO
 THIRD-PARTY REVIEWER.  (a)  Except as provided by Subsection (b),
 the appropriate municipal authority may delegate to a third-party
 reviewer the ability to approve a development application or
 conduct a development inspection.
 (b)  If a municipality fails to complete at least 80 percent
 of the total number of development applications and requests for
 development inspections the municipality receives in a calendar
 year in accordance with the deadlines prescribed by this subchapter
 for two consecutive years, the governing body of the municipality
 must delegate to third-party reviewers the ability to approve all
 development applications and conduct all development inspections
 for the five calendar years following that second consecutive year.
 (c)  A third-party reviewer shall process a development
 application or complete a development inspection in accordance with
 the deadlines and other approval procedures prescribed by this
 subchapter as if the reviewer is the municipal authority.
 (d)  A municipality may audit the work of a third-party
 reviewer with a third-party auditor.  The auditor must be an
 architect, engineer, or other appropriate professional who is
 licensed, certified, or regulated by this state.
 (e)  A development application or development inspection
 that is begun by a third-party reviewer must be completed by the
 reviewer regardless of whether the governing body of the
 municipality elects to discontinue delegation authorized by
 Subsection (a) or the mandatory period of delegation prescribed by
 Subsection (b) expires.
 Sec. 212.029.  THIRD-PARTY AUDITOR TRAINING.  (a)  The Texas
 Department of Housing and Community Affairs, in coordination with
 the Texas Department of Licensing and Regulation and other
 appropriate state agencies, shall:
 (1)  develop requirements for certifying, insuring,
 and auditing third-party reviewers; and
 (2)  develop and offer training programs for
 third-party reviewers that establish best practices.
 (b)  The Texas Department of Housing and Community Affairs
 may adopt rules necessary to implement this section.
 SECTION 3.  Sections 212.0085, 212.009, 212.0091, 212.0093,
 212.0095, 212.0096, 212.0097, and 212.0099, Local Government Code,
 are transferred to Subchapter A-1, Chapter 212, Local Government
 Code, as added by this Act, redesignated as Sections 212.022,
 212.023, 212.024, 212.025, 212.026, 212.027, 212.030, and 212.031,
 respectively, and amended to read as follows:
 Sec. 212.022  [212.0085].  [APPROVAL PROCEDURE:]
 APPLICABILITY OF SUBCHAPTER.  The approval procedures under this
 subchapter apply to a municipality regardless of whether the
 municipality has entered into an interlocal agreement, including an
 interlocal agreement between a municipality and county under
 Section 242.001(d).
 Sec. 212.023  [212.009].  [APPROVAL PROCEDURE:] INITIAL
 APPROVAL.  (a) A [The] municipal authority [responsible for
 approving plats] shall approve, approve with conditions, or
 disapprove a plan or plat, approve or disapprove a development
 permit, or complete a development inspection not later than the
 30th day [within 30 days] after the date the plan, [or] plat, or
 permit application is filed or the inspection is requested.  A plan,
 [or] plat, or development permit is approved by the municipal
 authority unless it is disapproved within that period and in
 accordance with this subchapter [Section 212.0091].  A development
 inspection requirement is waived unless the inspection is completed
 within that period and in accordance with this subchapter.
 (b)  If an ordinance requires that a plan, [or] plat, or
 development permit be approved by the governing body of the
 municipality in addition to any other municipal authority [the
 planning commission], the governing body shall approve, approve
 with conditions, or disapprove the plan or plat, or approve or
 disapprove the permit, as applicable, not later than the 30th day
 [within 30 days] after the date the plan, [or] plat, or permit is
 approved by the other authority [planning commission] or is
 approved by the inaction of that authority [the commission].  A
 plan, [or] plat, or development permit is approved by the governing
 body unless it is disapproved within that period and in accordance
 with this subchapter [Section 212.0091].
 (c) [(b-1)]  Notwithstanding Subsection (a) or (b), if a
 groundwater availability certification is required under Section
 212.0101, the 30-day period described by those subsections to
 approve, approve with conditions, or disapprove a plat begins on
 the date the applicant submits the groundwater availability
 certification to the applicable municipal authority [responsible
 for approving plats or the governing body of the municipality, as
 applicable].
 (d) [(b-2)]  Notwithstanding Subsection (a) or (b), the
 parties may extend the 30-day period described by those subsections
 for a period not to exceed 30 days if:
 (1)  the applicant requests the extension in writing to
 the applicable municipal authority [responsible for approving
 plats or the governing body of the municipality, as applicable];
 and
 (2)  the [municipal] authority [or governing body, as
 applicable,] approves the extension request.
 (e) [(c)]  If a plan or plat is approved, the municipal
 authority giving the approval shall endorse the plan or plat with a
 certificate indicating the approval.  The certificate must be
 signed by:
 (1)  the authority's presiding officer and attested by
 the authority's secretary; or
 (2)  a majority of the members of the authority.
 (f) [(d)]  If the municipal authority [responsible for
 approving plats] fails to approve, approve with conditions, or
 disapprove a plan or plat within the prescribed period, the
 authority on the applicant's request shall issue a certificate
 stating the date the plan or plat was filed and that the authority
 failed to act on the plan or plat within the period.  The
 certificate is effective in place of the endorsement required by
 Subsection (e) [(c)].
 (g) [(e)]  The municipal authority [responsible for
 approving plats] shall maintain a record of each development
 application and request for a development inspection made to the
 authority and the authority's action taken on it.  On request of an
 owner of an affected tract, the authority shall certify the reasons
 for the action taken on an application.
 Sec. 212.024  [212.0091].  [APPROVAL PROCEDURE:]
 CONDITIONAL APPROVAL OR DISAPPROVAL REQUIREMENTS.  (a)  A municipal
 authority [or governing body] that conditionally approves or
 disapproves a plan or plat, or disapproves a development permit,
 under this subchapter shall provide the applicant a written
 statement of the conditions for the conditional approval or reasons
 for disapproval, as applicable, that clearly articulates each
 specific condition for the conditional approval or reason for
 disapproval.
 (b)  Each condition or reason specified in the written
 statement:
 (1)  must:
 (A)  be directly related to the requirements
 prescribed by law for the applicable development project [under
 this subchapter]; and
 (B)  include a citation to the law, including a
 statute or municipal ordinance, that is the basis for the
 conditional approval or disapproval, if applicable; and
 (2)  may not be arbitrary.
 Sec. 212.025  [212.0093].  [APPROVAL PROCEDURE:] APPLICANT
 RESPONSE TO CONDITIONAL APPROVAL OR DISAPPROVAL.  After the
 conditional approval or disapproval of a plan or plat, or
 disapproval of a development permit, under Section 212.024
 [212.0091], the applicant may submit to the municipal authority [or
 governing body] that conditionally approved or disapproved the
 plan, [or] plat, or permit a written response that satisfies each
 condition for the conditional approval or remedies each reason for
 disapproval provided.  The municipal authority [or governing body]
 may not establish a deadline for an applicant to submit the
 response.
 Sec. 212.026  [212.0095].  [APPROVAL PROCEDURE:] APPROVAL OR
 DISAPPROVAL OF RESPONSE.  (a)  A municipal authority [or governing
 body] that receives a response under Section 212.025 [212.0093]
 shall determine whether to approve or disapprove the applicant's
 previously conditionally approved or disapproved plan or plat, or
 disapproved development permit, not later than the 15th day after
 the date the response was submitted.
 (b)  A municipal authority [or governing body] that
 conditionally approves or disapproves a plan or plat, or
 disapproves a development permit, following the submission of a
 response under Section 212.025 [212.0093]:
 (1)  must comply with Section 212.024 [212.0091]; and
 (2)  may disapprove the plan, [or] plat, or permit only
 for a specific condition or reason provided to the applicant under
 Section 212.024 [212.0091].
 (c)  A municipal authority [or governing body] that receives
 a response under Section 212.025 [212.0093] shall approve a
 previously conditionally approved or disapproved plan or plat, or
 disapproved development permit, if the response adequately
 addresses each condition of the conditional approval or each reason
 for the disapproval.
 (d)  A previously conditionally approved or disapproved plan
 or plat, or disapproved development permit, is approved if:
 (1)  the applicant filed a response that meets the
 requirements of Subsection (c); and
 (2)  the municipal authority [or governing body] that
 received the response does not disapprove the plan, [or] plat, or
 permit on or before the date required by Subsection (a) and in
 accordance with Section 212.024 [212.0091].
 Sec. 212.027  [212.0096].  [APPROVAL PROCEDURE:]
 ALTERNATIVE APPROVAL PROCESS.  (a)  Notwithstanding Sections
 212.023 [212.009], 212.024 [212.0091], 212.025 [212.0093], and
 212.026 [212.0095], an applicant may elect at any time to seek
 approval for a plan, [or] plat, or development permit under an
 alternative approval process adopted by a municipality if the
 process allows for a shorter approval period than the approval
 process described by Sections 212.023 [212.009], 212.024
 [212.0091], 212.025 [212.0093], and 212.026 [212.0095].
 (b)  An applicant that elects to seek approval under the
 alternative approval process described by Subsection (a) is not:
 (1)  required to satisfy the requirements of Sections
 212.023 [212.009], 212.024 [212.0091], 212.025 [212.0093], and
 212.026 [212.0095] before bringing an action challenging a
 disapproval of a plan, [or] plat, or development permit under this
 subchapter; and
 (2)  prejudiced in any manner in bringing the action
 described by Subdivision (1), including satisfying a requirement to
 exhaust any and all remedies.
 Sec. 212.030  [212.0097].  [APPROVAL PROCEDURE:] WAIVER
 PROHIBITED.  A municipal authority [responsible for approving plats
 or the governing body of a municipality] may not request or require
 an applicant to waive a deadline or other approval procedure under
 this subchapter.
 Sec. 212.031  [212.0099].  JUDICIAL REVIEW OF DISAPPROVAL.
 In a legal action challenging a disapproval of a plan, [or] plat, or
 development permit under this subchapter, the municipality has the
 burden of proving by clear and convincing evidence that the
 disapproval meets the requirements of this subchapter or any
 applicable case law.  The court may not use a deferential standard.
 SECTION 4.  Section 212.0155(e), Local Government Code, is
 amended to read as follows:
 (e)  The municipal authority may not approve the new plat
 without adequate consideration of testimony and the record from the
 public hearings and making the findings required by Subsection (k).
 Not later than the 30th day after the date on which all proceedings
 necessary for the public hearings have concluded, the municipal
 authority shall take action on the application for the new plat.
 Sections 212.023(a) [212.009(a)] and (b) do not apply to the
 approval of plats under this section.
 SECTION 5.  Section 242.001(c), Local Government Code, is
 amended 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 212.023
 [212.009] or Chapter 232 does not affect any rights accrued under
 Chapter 245.  The approval of the plat, 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.
 SECTION 6.  Section 242.003(c), Local Government Code, is
 amended to read as follows:
 (c)  The agreement must be amended by the county and the
 municipality 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 212.023
 [212.009] or Chapter 232 does not affect any rights accrued under
 Chapter 245. The approval of the plat, 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.
 SECTION 7.  Section 214.904, Local Government Code, is
 repealed.
 SECTION 8.  The requirement that a municipality process a
 certain percentage of development applications and development
 inspections in a calendar year as prescribed by Section 212.028(b),
 Local Government Code, as added by this Act, applies only to a
 calendar year that begins on or after the effective date of this
 Act.
 SECTION 9.  Not later than the effective date of this Act,
 the Texas Department of Housing and Community Affairs shall comply
 with the requirements of Section 212.029, Local Government Code, as
 added by this Act.
 SECTION 10.  The changes in law made by this Act apply only
 to a development application or request for a development
 inspection, as those terms are defined by Section 212.021, Local
 Government Code, as added by this Act, submitted on or after the
 effective date of this Act.
 SECTION 11.  This Act takes effect January 1, 2024.