BILL ANALYSIS C.S.H.B. 2762 By: Kuempel May 5, 1995 Committee Report (Substituted) BACKGROUND Under current law, the review and approval of an application for a permit by a regulatory agency shall be considered by each regulatory agency on the basis of any orders, regulations, ordinances, or requirements in effect at the time the original application for the permit was filed. Additionally, current law provides that if a series of permits is required to complete a project, then the rules and requirements in effect when the first permit is filed shall be the basis for review and approval of all subsequent permits for the project. In the case of real estate development, there has been some confusion as to what constitutes a project and what constitutes a series of permits under the current law. Additionally, there is some question as to whether or not health and safety regulations may be changed after a permit for a real estate project has been filed. PURPOSE To clarify the existing law with regard to the uniformity of requirements for the approval of permits related to real estate development. 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. SECTION BY SECTION ANALYSIS SECTION 1 Amends Subchapter I, Chapter 481, Government Code, as follows: Sec. 481.141. LEGISLATIVE FINDING AND INTENT. Outlines legislative findings and intent. Sec. 481.142. DEFINITIONS. Amends the definition of "project" to mean an endeavor over which a regulatory agency exerts its jurisdiction and for which one or more permits are required to initiate or continue the endeavor. Also amends the definition of "regulatory agency" to include a board, commission, or governing body of a political subdivision in its capacity of processing, approving, or issuing permits. Sec. 481.143. UNIFORMITY OF REQUIREMENTS. (a) Amends this section to include rules and expiration dates in the list of requirements that are considered by each regulatory agency at the time the original permit for a project is filed. This section is also amended to clarify that preliminary plans and related subdivision plats, site plans, and all other development permits for land covered by such preliminary plans or subdivision plats are considered collectively to be one series of permits and that once an application for a project has been filed, a regulatory agency shall not shorten the duration of any permit required for the project. (b) Amended to clarify that Subchapter I applies to all projects in progress on or commenced after the effective date of the subchapter of the Government Code as originally enacted by Acts 1987, 70th Legislature. The amendment includes the provision that the subchapter shall be enforceable solely through declaratory, mandamus, or injunctive relief. (c) Expands the list of what this section does not apply to. This section is amended to state that Section 481.143 is not applicable to the following: (4) permits for the construction of buildings or structures intended for human occupancy or habitation that are issued pursuant to laws, ordinances, procedures, rules or regulations adopting solely the provisions of uniform building, fire, electrical, plumbing or mechanical codes promulgated by a recognized code organization, or local amendments to any such codes enacted solely to address eminent threats of destruction of property or injury to persons unless such permits are less than two years old. (5) municipal zoning regulations that do not affect lot size, lot dimensions, lot coverage, or building size. (6) regulations for the location of adult-oriented businesses; (7) regulations for colonias; (8) fees lawfully imposed in conjunction with development permits; (9) regulations for annexation; (10) regulations for utility connections; (11) regulations to prevent imminent destruction of property or injury to persons; or (12) construction standards for public works located on public lands and easements. (d) Amended to clarify that a permit holder shall have the right to take advantage of procedural changes to the laws, rules, regulations, or ordinances of a regulatory agency which enhance or protect the project including, without limitation, changes which lengthen the effective life of the permit after the date on which application for the permit was made. SECTION 2 Provides that nothing in this Act shall be construed to limit or otherwise affect the authority of a state agency with respect to the enforcement of rules or implementation of programs or plans which are funded or mandated by the federal government under the federal Coastal Zone Management Act of 1972 (16 U.S.C. Section 1451 et seq.) and its subsequent amendments; (2) limit or otherwise affect the authority of a state regulatory agency to implement or enforce statutory standards or state agency rules applicable to the coastal zone; or (3) apply to permits, orders, rules, regulations, or other actions issued or undertaken by a state regulatory agency in connection with federal funding or federal programs relating to the coastal zone. SECTION 3 Provides that nothing in this Act shall be construed to diminish or impair the rights or remedies of any person or entity under a final judgment rendered by, or in any pending litigation brought in, any court concerning an interpretation of the provisions of Subchapter I, Chapter 481, Government Code. SECTION 4 Emergency clause. Effective upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE The committee substitute is different from the filed version of House Bill 2762 as follows: The definition of "project" is clarified to state that a project is an endeavor over which a regulatory agency exerts its jurisdiction and from which one or more permits are required to initiate or continue the endeavor. This substitute deletes the references to preliminary plans, related subdivision plats, and site plans from the definition of project and deletes all reference to a project being all continuous property that is under common or affiliated ownership or control which is subject to one or more applications for subdivision. The definition of "regulatory agency" in the substituteis the same as the filed version. The substitute amends Sec. 481.143 (UNIFORMITY OF REQUIREMENTS) to provide that preliminary plans and related subdivision plats, site plans, and all other development permits for land are a single series of permits and that the regulatory agency shall not shorten the duration of any permit required for the project once an application has been made. The substitute deletes (i) the requirement that a project be initiated within two years, (ii) that an application for a permit to amend a previously applied for permit may be filed under the same rules and regulations as the original permit, (iii) the definition of initiation of a project, and (iv) the requirement that a project must be in a continuous process of completion. The substitute also clarifies that enforcement of Subchapter I shall be enforceable solely through declaratory, mandamus, or injunctive relief. The substitute adds permits or regulations that are not subject to Subchapter I. The additions are as follows: (i) municipal zoning regulations that do not affect lot size, lot dimensions, lot coverage, or building size; (ii) fees lawfully imposed in conjunction with development permits; (iii) regulations for annexation; (iv) regulations for utility connections; (v) regulations to prevent imminent destruction of property or injury to persons; and (vi) construction standards for public works located on public lands and easements. The substitute includes all persons or entities in the prohibition of the Act from diminishing or impairing the rights or remedies under a final judgement rendered by or any impending litigation brought in any court concerning an interpretation of the provision of Subchapter I. SUMMARY OF COMMITTEE ACTION H.B. 2762 was considered by the committee in a public hearing on April 18, 1995. For the purposes of testimony, the committee considered the following related bills together: H.B. 2481, H.B. 2762, and H.B. 3092. The following persons testified in favor of one or more of the bills: Representative Edmund Kuempel (H.B. 2762); Richard Suttle, representing F.M. Properties (H.B. 2762); John Condon, representing himself (H.B. 2481 and H.B. 3092); Jimmy Gaines, representing the Texas Landowners Council (H.B. 2481 and H.B. 3092); William Terry Bray, representing Highland Resources, Inc. (H.B. 3092); David Bodenman, representing Highland Resources, Inc. (H.B. 3092); and Shayne Woodard, representing the Texas Association of Builders (H.B. 2481 and H.B. 2762). The following persons testified against one or more of the bills: John Condon, representing himself (H.B. 2762); Frank Turner, representing himself, the Texas Municipal League, and the City Planners Association of Texas (H.B. 2481 and H.B. 2762); Mary Arnold, representing herself (H.B. 2762); Tracy Watson, representing the City of Austin (H.B. 3092); Greg Vick, representing the City of Cedar Hill (H.B. 2762 and H.B. 2481); and Danielle Milam, representing the San Antonio Water System (H.B. 2481). The following persons testified neutrally on one or more of the bills: Jimmy Gaines, representing the Texas Landowners Council (H.B. 2762); and Danielle Milam, representing the San Antonio Water System (H.B. 3092). The bill was left pending. H.B. 2762 was considered by the committee in a formal meeting on April 24, 1995. The committee considered one amendment to the bill. The amendment was withdrawn without objection. The bill was left pending. H.B. 2762 was considered by the committee in a formal meeting on May 5, 1995. The committee considered a complete substitute to the bill. The substitute was adopted without objection adopted without objection. The bill was reported favorably as substituted, with the recommendation that it do pass and be printed, by a record vote of 5 ayes, 0 nays, 0 pnv, 4 absent.