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.