By: Harris, Hunter, Gates, Metcalf, et al. H.B. No. 23
A BILL TO BE ENTITLED
AN ACT
relating to the authority of certain persons to obtain third-party
review of plats and property development plans, permits, and
similar documents, and the inspection of an improvement related to
such a document.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 247.001(4), Local Government Code, as
added by Chapter 654 (H.B. 14), Acts of the 88th Legislature,
Regular Session, 2023, is amended to read as follows:
(4) "Plan" means a subdivision development plan,
including a subdivision plan, subdivision construction plan, land
development application, and site development plan [has the meaning
assigned by Section 212.001].
SECTION 2. Chapter 247, Local Government Code, as added by
Chapter 654 (H.B. 14), Acts of the 88th Legislature, Regular
Session, 2023, is amended by adding Section 247.0015 to read as
follows:
Sec. 247.0015. CONSTRUCTION OF CHAPTER. This chapter may
not be construed to exempt an applicant or property owner from
compliance with:
(1) the requirements of Chapters 7 and 16, Water Code,
or health and safety requirements under state and federal law; or
(2) the requirements of the stormwater permitting
program under the national pollutant discharge elimination system
established by 33 U.S.C. Section 1342.
SECTION 3. Section 247.002, Local Government Code, as added
by Chapter 654 (H.B. 14), Acts of the 88th Legislature, Regular
Session, 2023, is amended to read as follows:
Sec. 247.002. OPTION FOR THIRD-PARTY REVIEW OR INSPECTION
[REQUIRED]. (a) Notwithstanding any other law and except as
provided by Section 247.0021, an applicant for [If a regulatory
authority does not approve, conditionally approve, or disapprove a
development document by the 15th day after the date prescribed by a
provision of this code for the approval, conditional approval, or
disapproval of the document,] any required review of a development
[the] document may obtain review of the document from [be performed
by] a person:
(1) other than:
(A) the applicant; or
(B) a person whose work is the subject of the
application; and
(2) who is:
(A) employed by the regulatory authority to
review development documents;
(B) employed by another political subdivision to
review development documents, if the regulatory authority has
approved the person to review development documents; or
(C) an engineer:
(i) licensed under Chapter 1001,
Occupations Code; and
(ii) competent in a branch of engineering
applicable to the development document and designated by the
engineer as an area of competency to the Texas Board of Professional
Engineers.
(b) Notwithstanding any other law and except as provided by
Section 247.0021, an owner of land or an improvement to the land
that requires a development [If a regulatory authority does not
conduct a required development inspection by the 15th day after the
date prescribed by a provision of this code for conducting the
inspection, the] inspection may obtain the inspection from [be
conducted by] a person:
(1) other than:
(A) the owner of the land or improvement to the
land that is the subject of the inspection; or
(B) a person whose work is the subject of the
inspection; and
(2) who is:
(A) certified to inspect buildings by the
International Code Council;
(B) employed by the regulatory authority as a
building inspector;
(C) employed by another political subdivision as
a building inspector, if the regulatory authority has approved the
person to perform inspections; or
(D) an engineer:
(i) licensed under Chapter 1001,
Occupations Code; and
(ii) competent in a branch of engineering
applicable to development inspection and designated by the engineer
as an area of competency to the Texas Board of Professional
Engineers.
(c) Notwithstanding any other law and except as provided by
Subsection (d), an applicant or owner of land or an improvement to
land who uses a person to conduct a review or inspection under this
section may rely on the determinations made by the person, and any
permits and approvals issued based on those determinations are
binding on the regulatory authority.
(d) A regulatory authority may rescind a development
document granted as the result of a review or development
inspection conducted by a person under Section 247.002 if the
review or inspection did not comply with this chapter or violated a
law, rule, standard, or other measure applicable to the regulatory
authority for the review or inspection. After the rescission, the
regulatory authority may prohibit a person from conducting another
review or inspection for the regulatory authority in accordance
with Section 247.007.
(e) This section does not limit the authority of a
municipally owned utility, as that term is defined under Section
11.003, Utilities Code, to review development documents to ensure
the safe interconnection of electrical installations within the
utility's service area.
SECTION 4. Chapter 247, Local Government Code, as added by
Chapter 654 (H.B. 14), Acts of the 88th Legislature, Regular
Session, 2023, is amended by adding Section 247.0021 to read as
follows:
Sec. 247.0021. CERTIFICATE OF OCCUPANCY INSPECTION BY
REGULATORY AUTHORITY. As the final approval required for a land
development or improvement, a regulatory authority may require and
conduct a development inspection as a condition to receive a
certificate of occupancy issued by the regulatory authority. If the
regulatory authority requires an inspection under this section, the
regulatory authority:
(1) shall conduct the inspection, make a final
determination on whether to issue a certificate of occupancy, issue
the certificate if approved, and notify the applicant of the
results of the determination not later than the 10th day after the
date the applicant requests the inspection; and
(2) except as provided by Section 247.002(d), may not
use the inspection to affect the validity of the review of a
development document or development inspection previously
conducted by a third party for the property that is the subject of
the inspection.
SECTION 5. Section 247.004, Local Government Code, as added
by Chapter 654 (H.B. 14), Acts of the 88th Legislature, Regular
Session, 2023, is amended to read as follows:
Sec. 247.004. THIRD-PARTY REQUIREMENTS. (a) A person who
reviews a development document or conducts a development inspection
under Section 247.002 shall:
(1) review the document, conduct the inspection, and
take all other related actions in accordance with all applicable
provisions of law as if the person is the regulatory authority; and
(2) not later than the 15th day after the date the
person completes the review or inspection, provide notice to the
regulatory authority of the results of the review or inspection.
(b) A regulatory authority may:
(1) prescribe a reasonable format for the notice
required under Subsection (a); and
(2) require a person who reviews a development
document or conducts a development inspection to provide to the
regulatory authority a copy of any development document or
inspection-related note or report the person creates as part of the
review or inspection.
(c) A person who reviews a development document or conducts
a development inspection under Section 247.002 shall maintain
commercially reasonable professional liability insurance with a
minimum annual limit of $500,000 per occurrence and $1 million in
the aggregate and that names the regulatory authority and the
applicant as additional insureds. The person shall provide a
certificate of the required insurance to the regulatory authority
before the person may commence a review or inspection under Section
247.002.
SECTION 6. Chapter 247, Local Government Code, as added by
Chapter 654 (H.B. 14), Acts of the 88th Legislature, Regular
Session, 2023, is amended by adding Section 247.0043 to read as
follows:
Sec. 247.0043. LIABILITY. (a) A regulatory authority is
not liable for a review or inspection conducted by a person under
Section 247.002.
(b) A person reviewing a development document or conducting
a development inspection under Section 247.002 is liable for
damages resulting from the person's acts or omissions in conducting
the review or inspection.
SECTION 7. Chapter 247, Local Government Code, as added by
Chapter 654 (H.B. 14), Acts of the 88th Legislature, Regular
Session, 2023, is amended by adding Section 247.0047 to read as
follows:
Sec. 247.0047. REQUIRED PROVISION OF NECESSARY
INFORMATION; RELIANCE. (a) A regulatory authority shall:
(1) post on the regulatory authority's Internet
website each law, rule, standard, fee schedule, and other document
necessary for a person to review a development document or conduct a
development inspection under Section 247.002; or
(2) provide an electronic copy of the information
described by Subdivision (1) on request not later than the second
business day after the date the request is made.
(b) A person who reviews a development document or conducts
a development inspection under Section 247.002 may rely on the
accuracy and completeness of the information provided by a
regulatory authority under Subsection (a).
SECTION 8. Section 247.005, Local Government Code, as added
by Chapter 654 (H.B. 14), Acts of the 88th Legislature, Regular
Session, 2023, is amended to read as follows:
Sec. 247.005. WAIVER AND ADDITIONAL APPROVAL PROHIBITED. A
regulatory authority may not request or require an applicant to:
(1) waive:
(A) the applicant's right to obtain third-party
review under Section 247.002; or
(B) a deadline or other procedure under this
chapter; or
(2) obtain the regulatory authority's approval for a
development document or development inspection that a third-party
reviewer has approved.
SECTION 9. Chapter 247, Local Government Code, as added by
Chapter 654 (H.B. 14), Acts of the 88th Legislature, Regular
Session, 2023, is amended by adding Section 247.007 to read as
follows:
Sec. 247.007. REGULATORY AUTHORITY ENFORCEMENT. A
regulatory authority may prohibit a person from performing a
development document review or conducting a development inspection
under Section 247.002 for the regulatory authority if the person:
(1) has repeatedly violated this chapter or a relevant
law, rule, standard, or measure applicable to the regulatory
authority for a review or inspection for the regulatory authority
not fewer than five times; or
(2) knowingly or intentionally makes a
misrepresentation, as determined by the regulatory authority,
related to a review of a development document or development
inspection conducted under Section 247.002 for any regulatory
authority.
SECTION 10. Chapter 247, Local Government Code, as added by
Chapter 654 (H.B. 14), Acts of the 88th Legislature, Regular
Session, 2023, is amended by adding Section 247.008 to read as
follows:
Sec. 247.008. AUTHORIZED REGULATORY AUTHORITY DISAPPROVAL
OF LAND DEVELOPMENT. A regulatory authority may disapprove land
development for which a person is reviewing a development document
or performing a development inspection under Section 247.002 if:
(1) the regulatory authority believes that the
fundamental constitutional rights of persons in the area of the
development are being violated by the approval of the development;
or
(2) the applicant or owner of the land or improvement
that is the subject of a development inspection under Section
247.002 is under a felony criminal investigation or an
investigation for violating fundamental constitutional rights by
the attorney general, a county attorney, or a district attorney.
SECTION 11. (a) Except as provided by Subsection (b) of
this section, Chapter 247, Local Government Code, as amended by
this Act, applies only to a development document or a request for a
development inspection, as those terms are defined by Section
247.001 of that chapter, that was not final on the effective date of
this Act. A development document or request for a development
inspection that was final before the effective date of this Act is
governed by the law applicable to the document or inspection
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
(b) Section 247.004(c), Local Government Code, as added by
this Act, applies only to the review of a development document or
development inspection, as those terms are defined by Section
247.001, Local Government Code, that begins on or after September
1, 2025.
SECTION 12. 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, 2025.