BILL ANALYSIS H.B. 2559 By: Patterson Land & Resource Management Committee Report (Unamended) BACKGROUND AND PURPOSE Under current law, a municipality has the power to institute a moratorium on property development affecting residential property and commercial property, but there are different procedural requirements for the two types of property, which, the bill author has informed the committee, denies developers equitable due process and transparency. Thus, additional transparency and notice requirements are needed to prevent municipalities from unfairly imposing moratoriums on property developments. H.B. 2559 seeks to address this issue by revising provisions relating to moratoriums on property development in order to impose additional transparency, notice, and approval requirements and provide fairness and due process to developers. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 2559 amends the Local Government Code to change the time in which a municipality is required to publish newspaper notice of a public hearing on a moratorium on property development affecting residential or commercial property from on the 4th day before the hearing date to not later than the 30th day before such date. The bill requires the municipality, by such deadline, to send notice of the hearing by certified mail to any person who has given written notice by certified or registered mail to the municipal secretary requesting notice of the hearing within two years preceding the date of adoption of the ordinance or resolution setting the public hearing. The bill removes provisions that establish that a temporary moratorium takes effect beginning on the fifth business day after the date the newspaper notice is published and that authorize a municipality, during the period of the temporary moratorium, to stop accepting permits, authorizations, and approvals necessary for the subdivision of, site planning of, or construction on real property. H.B. 2559, with respect to the requirement that two public hearings be held before the governing body of the municipality, does the following: removes the condition that such requirement only applies if a general-law municipality does not have a zoning commission; and changes the time of separation between the two hearings from a separation of at least four days to a prohibition against the second public hearing being held before the 30th day after the date of the first public hearing. The bill, relatedly, repeals provisions that require that one public hearing be held before the governing body of the municipality and, if the municipality has a zoning commission, another public hearing be held before that commission. H.B. 2559 replaces the requirement for the municipality to make a final determination on the imposition of a moratorium within 12 days after the date of the first public hearing with a requirement for the municipality's governing body to begin a final determination on such imposition not later than the 12th day after the date of the second public hearing. The bill lengthens the minimum separation between the minimum two readings of the ordinance imposing the moratorium from a separation of at least 4 days to a separation of not less than 28 days. The bill requires the ordinance to receive the affirmative vote of at least three-fourths of all members of the governing body on final reading in order to take effect. H.B. 2559 makes provisions relating to the expiration and extension of a moratorium on commercial property that is not based on a demonstrated shortage of essential public facilities applicable to any residential or commercial property development moratorium. The bill, relatedly, repeals provisions relating to the expiration and extension of a moratorium that is based on a shortage of essential public facilities or based on a significant need for public facilities. H.B. 2559 repeals Sections 212.134(d) and (e) and Section 212.136, Local Government Code. EFFECTIVE DATE September 1, 2025.
BILL ANALYSIS
# BILL ANALYSIS
H.B. 2559
By: Patterson
Land & Resource Management
Committee Report (Unamended)
H.B. 2559
By: Patterson
Land & Resource Management
Committee Report (Unamended)
BACKGROUND AND PURPOSE Under current law, a municipality has the power to institute a moratorium on property development affecting residential property and commercial property, but there are different procedural requirements for the two types of property, which, the bill author has informed the committee, denies developers equitable due process and transparency. Thus, additional transparency and notice requirements are needed to prevent municipalities from unfairly imposing moratoriums on property developments. H.B. 2559 seeks to address this issue by revising provisions relating to moratoriums on property development in order to impose additional transparency, notice, and approval requirements and provide fairness and due process to developers.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS H.B. 2559 amends the Local Government Code to change the time in which a municipality is required to publish newspaper notice of a public hearing on a moratorium on property development affecting residential or commercial property from on the 4th day before the hearing date to not later than the 30th day before such date. The bill requires the municipality, by such deadline, to send notice of the hearing by certified mail to any person who has given written notice by certified or registered mail to the municipal secretary requesting notice of the hearing within two years preceding the date of adoption of the ordinance or resolution setting the public hearing. The bill removes provisions that establish that a temporary moratorium takes effect beginning on the fifth business day after the date the newspaper notice is published and that authorize a municipality, during the period of the temporary moratorium, to stop accepting permits, authorizations, and approvals necessary for the subdivision of, site planning of, or construction on real property. H.B. 2559, with respect to the requirement that two public hearings be held before the governing body of the municipality, does the following: removes the condition that such requirement only applies if a general-law municipality does not have a zoning commission; and changes the time of separation between the two hearings from a separation of at least four days to a prohibition against the second public hearing being held before the 30th day after the date of the first public hearing. The bill, relatedly, repeals provisions that require that one public hearing be held before the governing body of the municipality and, if the municipality has a zoning commission, another public hearing be held before that commission. H.B. 2559 replaces the requirement for the municipality to make a final determination on the imposition of a moratorium within 12 days after the date of the first public hearing with a requirement for the municipality's governing body to begin a final determination on such imposition not later than the 12th day after the date of the second public hearing. The bill lengthens the minimum separation between the minimum two readings of the ordinance imposing the moratorium from a separation of at least 4 days to a separation of not less than 28 days. The bill requires the ordinance to receive the affirmative vote of at least three-fourths of all members of the governing body on final reading in order to take effect. H.B. 2559 makes provisions relating to the expiration and extension of a moratorium on commercial property that is not based on a demonstrated shortage of essential public facilities applicable to any residential or commercial property development moratorium. The bill, relatedly, repeals provisions relating to the expiration and extension of a moratorium that is based on a shortage of essential public facilities or based on a significant need for public facilities. H.B. 2559 repeals Sections 212.134(d) and (e) and Section 212.136, Local Government Code.
EFFECTIVE DATE September 1, 2025.
BACKGROUND AND PURPOSE
Under current law, a municipality has the power to institute a moratorium on property development affecting residential property and commercial property, but there are different procedural requirements for the two types of property, which, the bill author has informed the committee, denies developers equitable due process and transparency. Thus, additional transparency and notice requirements are needed to prevent municipalities from unfairly imposing moratoriums on property developments. H.B. 2559 seeks to address this issue by revising provisions relating to moratoriums on property development in order to impose additional transparency, notice, and approval requirements and provide fairness and due process to developers.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 2559 amends the Local Government Code to change the time in which a municipality is required to publish newspaper notice of a public hearing on a moratorium on property development affecting residential or commercial property from on the 4th day before the hearing date to not later than the 30th day before such date. The bill requires the municipality, by such deadline, to send notice of the hearing by certified mail to any person who has given written notice by certified or registered mail to the municipal secretary requesting notice of the hearing within two years preceding the date of adoption of the ordinance or resolution setting the public hearing. The bill removes provisions that establish that a temporary moratorium takes effect beginning on the fifth business day after the date the newspaper notice is published and that authorize a municipality, during the period of the temporary moratorium, to stop accepting permits, authorizations, and approvals necessary for the subdivision of, site planning of, or construction on real property.
H.B. 2559, with respect to the requirement that two public hearings be held before the governing body of the municipality, does the following:
removes the condition that such requirement only applies if a general-law municipality does not have a zoning commission; and
changes the time of separation between the two hearings from a separation of at least four days to a prohibition against the second public hearing being held before the 30th day after the date of the first public hearing.
The bill, relatedly, repeals provisions that require that one public hearing be held before the governing body of the municipality and, if the municipality has a zoning commission, another public hearing be held before that commission.
H.B. 2559 replaces the requirement for the municipality to make a final determination on the imposition of a moratorium within 12 days after the date of the first public hearing with a requirement for the municipality's governing body to begin a final determination on such imposition not later than the 12th day after the date of the second public hearing. The bill lengthens the minimum separation between the minimum two readings of the ordinance imposing the moratorium from a separation of at least 4 days to a separation of not less than 28 days. The bill requires the ordinance to receive the affirmative vote of at least three-fourths of all members of the governing body on final reading in order to take effect.
H.B. 2559 makes provisions relating to the expiration and extension of a moratorium on commercial property that is not based on a demonstrated shortage of essential public facilities applicable to any residential or commercial property development moratorium. The bill, relatedly, repeals provisions relating to the expiration and extension of a moratorium that is based on a shortage of essential public facilities or based on a significant need for public facilities.
H.B. 2559 repeals Sections 212.134(d) and (e) and Section 212.136, Local Government Code.
EFFECTIVE DATE
September 1, 2025.