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               AN ACT
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            relating to county and municipal authority to impose certain  | 
         
         
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            value-based fees and require disclosure of certain information  | 
         
         
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            related to subdivision construction. | 
         
         
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                   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
         
         
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                   SECTION 1.  Subchapter Z, Chapter 212, Local Government  | 
         
         
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            Code, is amended by adding Section 212.906 to read as follows: | 
         
         
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                   Sec. 212.906.  CERTAIN VALUE-BASED FEES AND DISCLOSURE OF  | 
         
         
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            CERTAIN INFORMATION PROHIBITED.  (a)  This section applies only to  | 
         
         
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            an application, review, engineering, inspection, acceptance,  | 
         
         
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            administrative, or other fee imposed by a municipality related to  | 
         
         
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            the acceptance, review, or processing of engineering or  | 
         
         
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            construction plans or for the inspection of improvements for  | 
         
         
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            construction of a subdivision or lot or a related improvement  | 
         
         
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            associated with or required in conjunction with that construction. | 
         
         
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                   (b)  A municipality may not consider the cost of constructing  | 
         
         
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            or improving the public infrastructure for a subdivision, lot, or  | 
         
         
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            related property development in determining the amount of a fee  | 
         
         
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            subject to this section.  The municipality shall determine the fee  | 
         
         
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            by considering the municipality's actual cost to, as applicable,  | 
         
         
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            review and process the engineering or construction plan or to  | 
         
         
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            inspect the public infrastructure improvement. | 
         
         
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                   (c)  In determining the municipality's actual cost for  | 
         
         
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            reviewing and processing an engineering or construction plan or  | 
         
         
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            inspecting a public infrastructure improvement under Subsection  | 
         
         
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            (b), a municipality may consider: | 
         
         
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                         (1)  the fee that would be charged by a qualified,  | 
         
         
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            independent third-party entity for those services; | 
         
         
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                         (2)  the hourly rate for the estimated actual direct  | 
         
         
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            time of the municipality's employees performing those services; or | 
         
         
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                         (3)  the actual costs assessed to the municipality by a  | 
         
         
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            third-party entity that provides those services to the  | 
         
         
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            municipality. | 
         
         
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                   (d)  A municipality may not require the disclosure of  | 
         
         
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            information related to the value of or cost of constructing or  | 
         
         
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            improving a residential dwelling or the public infrastructure  | 
         
         
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            improvements for a subdivision, lot, or related property  | 
         
         
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            development as a condition of obtaining approval for subdivision  | 
         
         
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            construction or for the acceptance of those public infrastructure  | 
         
         
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            improvements except as required by the Federal Emergency Management  | 
         
         
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            Agency for participation in the National Flood Insurance Program. | 
         
         
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                   (e)  A municipality that imposes a fee for reviewing or  | 
         
         
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            processing an engineering or construction plan or inspecting a  | 
         
         
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            public infrastructure improvement shall annually publish the fee  | 
         
         
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            and the hourly rate and estimated direct time incurred by municipal  | 
         
         
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            employees for a fee calculated under Subsection (c)(2).  The  | 
         
         
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            municipality must publish the information: | 
         
         
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                         (1)  on the municipality's Internet website; or | 
         
         
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                         (2)  if the municipality does not maintain an Internet  | 
         
         
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            website, in a newspaper of general circulation in the county in  | 
         
         
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            which the municipality is primarily located. | 
         
         
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                   SECTION 2.  Chapter 232, Local Government Code, is amended  | 
         
         
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            by adding Subchapter Z to read as follows: | 
         
         
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            SUBCHAPTER Z.  MISCELLANEOUS PROVISIONS | 
         
         
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                   Sec. 232.901.  CERTAIN VALUE-BASED FEES AND DISCLOSURE OF  | 
         
         
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            CERTAIN INFORMATION PROHIBITED.  (a)  This section applies only to  | 
         
         
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            an application, review, engineering, inspection, acceptance,  | 
         
         
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            administrative, or other fee imposed by a county related to the  | 
         
         
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            acceptance, review, or processing of engineering or construction  | 
         
         
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            plans or for the inspection of improvements for construction in a  | 
         
         
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            subdivision or a related improvement associated with or required in  | 
         
         
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            conjunction with that construction. | 
         
         
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                   (b)  A county may not consider the cost of constructing or  | 
         
         
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            improving the public infrastructure for a subdivision, lot, or  | 
         
         
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            related property development in determining the amount of a fee  | 
         
         
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            subject to this section.  The county shall determine the fee by  | 
         
         
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            considering the county's actual cost to, as applicable, review and  | 
         
         
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            process the engineering or construction plan or to inspect the  | 
         
         
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            public infrastructure improvement. | 
         
         
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                   (c)  In determining the county's actual cost for reviewing  | 
         
         
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            and processing an engineering or construction plan or inspecting a  | 
         
         
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            public infrastructure improvement under Subsection (b), a county  | 
         
         
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            may consider: | 
         
         
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                         (1)  the fee that would be charged by a qualified,  | 
         
         
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            independent third-party entity for those services; | 
         
         
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                         (2)  the hourly rate for the estimated actual direct  | 
         
         
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            time of the county's employees performing those services; or | 
         
         
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                         (3)  the actual costs assessed to the county by a  | 
         
         
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            third-party entity that provides those services to the county. | 
         
         
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                   (d)  A county may not require the disclosure of information  | 
         
         
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            related to the value of or cost of constructing or improving a  | 
         
         
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            residential dwelling or the public infrastructure improvements for  | 
         
         
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            a subdivision, lot, or related property development as a condition  | 
         
         
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            of obtaining approval for subdivision construction or for the  | 
         
         
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            acceptance of those public infrastructure improvements except as  | 
         
         
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            required by the Federal Emergency Management Agency for  | 
         
         
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            participation in the National Flood Insurance Program. | 
         
         
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                   (e)  A county that imposes a fee for reviewing or processing  | 
         
         
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            an engineering or construction plan or inspecting a public  | 
         
         
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            infrastructure improvement shall annually publish the fee and the  | 
         
         
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            hourly rate and estimated direct time incurred by county employees  | 
         
         
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            for a fee calculated under Subsection (c)(2).  The county must  | 
         
         
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            publish the information: | 
         
         
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                         (1)  on the county's Internet website; or | 
         
         
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                         (2)  if the county does not maintain an Internet  | 
         
         
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            website, in a newspaper of general circulation in the county. | 
         
         
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                   SECTION 3.  The changes in law made by this Act apply only to  | 
         
         
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            a fee subject to Section 212.906 or 232.901, Local Government Code,  | 
         
         
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            as added by this Act, assessed by a county or municipality on or  | 
         
         
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            after the effective date of this Act. | 
         
         
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                   SECTION 4.  This Act takes effect September 1, 2023. | 
         
         
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            ______________________________ | 
            ______________________________ | 
         
         
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               President of the Senate | 
            Speaker of the House      | 
         
         
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                   I certify that H.B. No. 3492 was passed by the House on May 2,  | 
         
         
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            2023, by the following vote:  Yeas 142, Nays 3, 1 present, not  | 
         
         
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            voting. | 
         
         
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            ______________________________ | 
         
         
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            Chief Clerk of the House    | 
         
         
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                   I certify that H.B. No. 3492 was passed by the Senate on May  | 
         
         
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            19, 2023, by the following vote:  Yeas 23, Nays 8. | 
         
         
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            ______________________________ | 
         
         
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            Secretary of the Senate     | 
         
         
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            APPROVED:  _____________________ | 
         
         
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                               Date           | 
         
         
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                      _____________________ | 
         
         
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                             Governor        |