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.