By:  Baxter                                                       H.B. No. 3461


A BILL TO BE ENTITLED
AN ACT
relating to the manner in which a municipality may impose a moratorium on certain property development. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 212.131, Local Government Code, is amended by amending Subdivision (3) and adding Subdivision (4) to read as follows: (3) "Property development" means the [new] construction, reconstruction, or other alteration or improvement of residential or commercial buildings or the subdivision or replatting of a subdivision of residential or commercial property [on vacant land]. (4) "Commercial property" means property zoned for or otherwise authorized for use other than single-family use, multi-family use, heavy industrial use, or use as a quarry. SECTION 2. Subchapter E, Chapter 212, Local Government Code, is amended by amending Sections 212.132, 212.133, 212.135, 212.136, and 212.137 and adding Sections 212.1351, 212.1352, 212.1361, 212.1362, and 212.139 to read as follows: Sec. 212.132. APPLICABILITY. This subchapter applies only to a moratorium imposed on property development affecting only residential property, commercial property, or both residential and commercial property. Sec. 212.133. PROCEDURE FOR ADOPTING MORATORIUM. A municipality may not adopt a moratorium on property development unless the municipality: (1) complies with the notice and hearing procedures prescribed by Section 212.134; and (2) makes written findings as provided by Section 212.135, 212.1351, or 212.1352, as applicable. Sec. 212.135. JUSTIFICATION FOR MORATORIUM: SHORTAGE OF ESSENTIAL PUBLIC FACILITIES; WRITTEN FINDINGS REQUIRED. (a) If a municipality adopts a moratorium on property development, the moratorium is justified by demonstrating a need to prevent a shortage of essential public facilities. The municipality must issue written findings based on reasonably available information. (b) The written findings must include a summary of: (1) evidence demonstrating the extent of need beyond the estimated capacity of existing essential public facilities that is expected to result from new property development, including identifying: (A) any essential public facilities currently operating near, at, or beyond capacity; (B) the portion of that capacity committed to the development subject to the moratorium; and (C) the impact fee revenue allocated to address the facility need; and (2) evidence demonstrating that the moratorium is reasonably limited to: (A) areas of the municipality where a shortage of essential public facilities would otherwise occur; and (B) property that has not been approved for development because of the insufficiency of existing essential public facilities. Sec. 212.1351. JUSTIFICATION FOR MORATORIUM: SIGNIFICANT NEED FOR PUBLIC FACILITIES; WRITTEN FINDINGS REQUIRED. (a) Except as provided by Section 212.1352, a [(b) A] moratorium that is not based on a shortage of essential public facilities is justified only by demonstrating a significant need for other public facilities, including police and fire facilities. For purposes of this subsection, a significant need for public facilities is established if the failure to provide those public facilities would result in an overcapacity of public facilities or would be detrimental to the health, safety, and welfare of the residents of the municipality. The municipality must issue written findings based on reasonably available information. (b) The written findings must include a summary of: (1) evidence demonstrating that applying existing development ordinances or regulations and other applicable laws is inadequate to prevent the new development from causing the overcapacity of municipal infrastructure or being detrimental to the public health, safety, and welfare in an affected geographical area; (2) evidence demonstrating that alternative methods of achieving the objectives of the moratorium are unsatisfactory; and (3) evidence demonstrating that the municipality has approved a working plan and time schedule for achieving the objectives of the moratorium. Sec. 212.1352. JUSTIFICATION FOR COMMERCIAL MORATORIUM IN CERTAIN CIRCUMSTANCES; WRITTEN FINDINGS REQUIRED. (a) If a municipality adopts a moratorium on commercial property development that is not based on a demonstrated shortage of essential public facilities, the municipality must issue written findings based on reasonably available information that the moratorium is justified by demonstrating that applying existing commercial development ordinances or regulations and other applicable laws is inadequate to prevent the new development from being detrimental to the public health, safety, or welfare of the residents of the municipality. (b) The written findings must include a summary of: (1) evidence demonstrating the need to adopt new ordinances or regulations or to amend existing ordinances, including identification of the harm to the public health, safety, or welfare that will occur if a moratorium is not adopted; (2) the geographical boundaries in which the moratorium will apply; (3) the specific types of commercial property to which the moratorium will apply; and (4) the objectives or goals to be achieved by adopting new ordinances or regulations or amending existing ordinances or regulations during the period the moratorium is in effect. Sec. 212.136. EXPIRATION OF MORATORIUM; EXTENSION. [(a)] A moratorium adopted under Section 212.135 or 212.1351 [this subchapter] expires on the 120th day after the date the moratorium is adopted unless the municipality extends the moratorium by: (1) holding a public hearing on the proposed extension of the moratorium; and (2) adopting written findings that: (A) identify the problem requiring the need for extending the moratorium; (B) describe the reasonable progress made to alleviate the problem; and (C) specify a definite duration for the renewal period of the moratorium. Sec. 212.1361. NOTICE FOR EXTENSION REQUIRED. [(b)] A municipality proposing an extension of a moratorium under this subchapter must publish notice in a newspaper of general circulation in the municipality not later than the 15th day before the date of the hearing required by this subchapter [Subsection (a)]. Sec. 212.1362. EXPIRATION OF MORATORIUM ON COMMERCIAL PROPERTY IN CERTAIN CIRCUMSTANCES; EXTENSION. (a) A moratorium on commercial property adopted under Section 212.1352 expires on the 90th day after the date the moratorium is adopted unless the municipality extends the moratorium by: (1) holding a public hearing on the proposed extension of the moratorium; and (2) adopting written findings that: (A) identify the problem requiring the need for extending the moratorium; (B) describe the reasonable progress made to alleviate the problem; (C) specify a definite duration for the renewal period of the moratorium; and (D) include a summary of evidence demonstrating that the problem will be resolved within the extended duration of the moratorium. (b) A municipality may not adopt a moratorium on commercial property under Section 212.1352 that exceeds an aggregate of 180 days. A municipality may not adopt a moratorium on commercial property under Section 212.1352 before the second anniversary of the expiration date of a previous moratorium if the subsequent moratorium addresses the same harm, affects the same type of commercial property, or affects the same geographical area identified by the previous moratorium. Sec. 212.137. WAIVER PROCEDURES REQUIRED. (a) A moratorium adopted under this subchapter must allow a permit applicant to apply for a waiver from the moratorium relating to the property subject to the permit by: (1) claiming a right obtained under a development agreement; or (2) [claiming a vested right under Chapter 245 or common law; or [(3)] providing the public facilities that are the subject of the moratorium at the landowner's cost. (b) The permit applicant must submit the reasons for the request to the governing body of the municipality in writing. The governing body of the municipality must vote on whether to grant the waiver request within 10 days after the date of receiving the written request. Sec. 212.139. LIMITATION ON MORATORIUM. (a) A moratorium adopted under this subchapter does not affect an application for a project in progress under Chapter 245. (b) A municipality may not adopt a moratorium under this subchapter that: (1) prohibits a person from filing or processing an application for a project in progress under Chapter 245; or (2) prohibits or delays the processing of an application for zoning filed before the effective date of the moratorium. SECTION 3. (a) This Act applies to a moratorium adopted on or after the effective date of this Act. (b) If a moratorium affecting commercial property was adopted by a municipality before the effective date of this Act and, under the terms of the moratorium, remains in effect later than the 120th day after the effective date of this Act, the municipality must comply with Section 212.136, Local Government Code, as amended by this Act, or Section 212.1362(a), Local Government Code, as added by this Act, as applicable, to continue the moratorium in effect later than the 120th day after the effective date of this Act. SECTION 4. This Act takes effect September 1, 2005.