1-1                                   AN ACT
 1-2     relating to the approval of certain permit applications by local
 1-3     governments.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  FINDINGS; INTENT.  (a)  The legislature finds
 1-6     that the former Subchapter I, Chapter 481, Government Code,
 1-7     relating to state and local permits, originally enacted by Section
 1-8     1, Chapter 374, Acts of the 70th Legislature, Regular Session,
 1-9     1987, and subsequently amended by Section 3.01, Chapter 4, Acts of
1-10     the 71st Legislature, Regular Session, 1989, Section 2, Chapter
1-11     118, Acts of the 71st Legislature, Regular Session, 1989, and
1-12     Section 1, Chapter 794, Acts of the 74th Legislature, Regular
1-13     Session, 1995, was inadvertently repealed by Section 51(b), Chapter
1-14     1041, Acts of the 75th Legislature, Regular Session, 1997.
1-15           (b)  The legislature finds that the repeal of former
1-16     Subchapter I, Chapter 481, Government Code, which became effective
1-17     September 1, 1997, resulted in the reestablishment of
1-18     administrative and legislative practices that often result in
1-19     unnecessary governmental regulatory uncertainty that inhibits the
1-20     economic development of the state and increases the cost of housing
1-21     and other forms of land development and often resulted in the
1-22     repeal of previously approved permits causing decreased property
1-23     and related values, bankruptcies, and failed projects.
1-24           (c)  The legislature finds that the restoration of
 2-1     requirements relating to the processing and issuance of permits and
 2-2     approvals by local governmental regulatory agencies is necessary to
 2-3     minimize to the extent possible the effect of the inadvertent
 2-4     repeal of the former Subchapter I, Chapter 481, Government Code,
 2-5     and to safeguard the general economy and welfare of the state and
 2-6     to protect property rights.
 2-7           (d)  It is the intent of the legislature that no project,
 2-8     permit, or series of permits that was protected by former
 2-9     Subchapter I, Chapter 481, Government Code, be prejudiced by or
2-10     required or allowed to expire because of the repeal of former
2-11     Subchapter I or an action taken by a regulatory agency after the
2-12     repeal.
2-13           SECTION 2.  AMENDMENT.  Subtitle C, Title 7, Local Government
2-14     Code, is amended by adding Chapter 245 to read as follows:
2-15                   CHAPTER 245.  ISSUANCE OF LOCAL PERMITS
2-16           Sec. 245.001.  DEFINITIONS.  In this chapter:
2-17                 (1)  "Permit" means a license, certificate, approval,
2-18     registration, consent, permit, or other form of authorization
2-19     required by law, rule, regulation, order, or ordinance that a
2-20     person must obtain to perform an action or initiate, continue, or
2-21     complete a project for which the permit is sought.
2-22                 (2)  "Political subdivision" means a political
2-23     subdivision of the state, including a county, a school district, or
2-24     a municipality.
2-25                 (3)  "Project" means an endeavor over which a
2-26     regulatory agency exerts its jurisdiction and for which one or more
2-27     permits are required to initiate, continue, or complete the
 3-1     endeavor.
 3-2                 (4)  "Regulatory agency" means the governing body of,
 3-3     or a bureau, department, division, board, commission, or other
 3-4     agency of, a political subdivision acting in its capacity of
 3-5     processing, approving, or issuing a permit.
 3-6           Sec. 245.002.  UNIFORMITY OF REQUIREMENTS.  (a)  Each
 3-7     regulatory agency shall consider the approval, disapproval, or
 3-8     conditional approval of an application for a permit solely on the
 3-9     basis of any orders, regulations, ordinances, rules, expiration
3-10     dates, or other properly adopted requirements in effect at the time
3-11     the original application for the permit is filed.
3-12           (b)  If a series of permits is required for a project, the
3-13     orders, regulations, ordinances, rules, expiration dates, or other
3-14     properly adopted requirements in effect at the time the original
3-15     application for the first permit in that series is filed shall be
3-16     the sole basis for consideration of all subsequent permits required
3-17     for the completion of the project.  All permits required for the
3-18     project are considered to be a single series of permits.
3-19     Preliminary plans and related subdivision plats, site plans, and
3-20     all other development permits for land covered by the preliminary
3-21     plans or subdivision plats are considered collectively to be one
3-22     series of permits for a project.
3-23           (c)  After an application for a project is filed, a
3-24     regulatory agency may not shorten the duration of any permit
3-25     required for the project.
3-26           (d)  Notwithstanding any provision of this chapter to the
3-27     contrary, a permit holder may take advantage of recorded
 4-1     subdivision plat notes, recorded restrictive covenants required by
 4-2     a regulatory agency, or a change to the laws, rules, regulations,
 4-3     or ordinances of a regulatory agency that enhance or protect the
 4-4     project, including changes that lengthen the effective life of the
 4-5     permit after the date the application for the permit was made,
 4-6     without forfeiting any rights under this chapter.
 4-7           Sec. 245.003.  APPLICABILITY OF CHAPTER.  This chapter
 4-8     applies only to a project in progress on or commenced after
 4-9     September 1, 1997.  For purposes of this chapter a project was in
4-10     progress on September 1, 1997, if:
4-11                 (1)  before September 1, 1997:
4-12                       (A)  a regulatory agency approved or issued one
4-13     or more permits for the project; or
4-14                       (B)  an application for a permit for the project
4-15     was filed with a regulatory agency; and
4-16                 (2)  on or after September 1, 1997, a regulatory agency
4-17     enacts, enforces, or otherwise imposes:
4-18                       (A)  an order, regulation, ordinance, or rule
4-19     that in effect retroactively changes the duration of a permit for
4-20     the project;
4-21                       (B)  a deadline for obtaining a permit required
4-22     to continue or complete the project that was not enforced or did
4-23     not apply to the project before September 1, 1997; or
4-24                       (C)  any requirement for the project that was not
4-25     applicable to or enforced on the project before September 1, 1997.
4-26           Sec. 245.004.  EXEMPTIONS.  This chapter does not apply to:
4-27                 (1)  a permit that is at least two years old, is issued
 5-1     for the construction of a building or structure intended for human
 5-2     occupancy or habitation, and is issued under laws, ordinances,
 5-3     procedures, rules, or regulations adopting only:
 5-4                       (A)  uniform building, fire, electrical,
 5-5     plumbing, or mechanical codes adopted by a recognized national code
 5-6     organization; or
 5-7                       (B)  local amendments to those codes enacted
 5-8     solely to address imminent threats of destruction of property or
 5-9     injury to persons;
5-10                 (2)  municipal zoning regulations that do not affect
5-11     lot size, lot dimensions, lot coverage, or building size or that do
5-12     not change development permitted by a restrictive covenant required
5-13     by a municipality;
5-14                 (3)  regulations that specifically control only the use
5-15     of land in a municipality that does not have zoning and that do not
5-16     affect lot size, lot dimensions, lot coverage, or building size;
5-17                 (4)  regulations for sexually oriented businesses;
5-18                 (5)  municipal or county ordinances, rules,
5-19     regulations, or other requirements affecting colonias;
5-20                 (6)  fees imposed in conjunction with development
5-21     permits;
5-22                 (7)  regulations for annexation;
5-23                 (8)  regulations for utility connections;
5-24                 (9)  regulations to prevent imminent destruction of
5-25     property or injury to persons, including regulations effective only
5-26     within a flood plain established by a federal flood control program
5-27     and enacted to prevent the flooding of buildings intended for
 6-1     public occupancy; or
 6-2                 (10)  construction standards for public works located
 6-3     on public lands or easements.
 6-4           Sec. 245.005.  DORMANT PROJECTS.  Notwithstanding any other
 6-5     provision of this chapter, after the first anniversary of the
 6-6     effective date of this chapter, a regulatory agency may enact an
 6-7     ordinance, rule, or regulation that places an expiration date on a
 6-8     permit if as of the first anniversary of the effective date of this
 6-9     chapter:  (i) the permit does not have an expiration date; and (ii)
6-10     no progress has been made towards completion of the project.  Any
6-11     ordinance, rule, or regulation enacted pursuant to this section
6-12     shall place an expiration date of no earlier than the fifth
6-13     anniversary of the effective date of this chapter.  Progress
6-14     towards completion of the project shall include any one or more of
6-15     the following:
6-16                 (1)  an application for a final plat or plan is
6-17     submitted to a regulatory agency;
6-18                 (2)  a good-faith attempt is made to file with a
6-19     regulatory agency an application for a permit necessary to begin or
6-20     continue towards completion of the project;
6-21                 (3)  costs have been incurred for developing the
6-22     project including, without limitation, costs associated with
6-23     roadway, utility, and other infrastructure facilities designed to
6-24     serve, in whole or in part, the project (but exclusive of land
6-25     acquisition) in the aggregate amount of five percent of the most
6-26     recent appraised market value of the real property on which the
6-27     project is located;
 7-1                 (4)  fiscal security is posted with a regulatory agency
 7-2     to ensure performance of an obligation required by the regulatory
 7-3     agency; or
 7-4                 (5)  utility connection fees or impact fees for the
 7-5     project have been paid to a regulatory agency.
 7-6           Sec. 245.006.  ENFORCEMENT OF CHAPTER.  This chapter may be
 7-7     enforced only through mandamus or declaratory or injunctive relief.
 7-8           SECTION 3.  EFFECT OF PRIOR LAW.  (a)  The repeal of
 7-9     Subchapter I, Chapter 481, Government Code, by Section 51(b),
7-10     Chapter 1041, Acts of the 75th Legislature, Regular Session, 1997,
7-11     and any actions taken by a regulatory agency for the issuance of a
7-12     permit, as those terms are defined by Section 245.001, Local
7-13     Government Code, as added by Section 2 of this Act, after that
7-14     repeal and before the effective date of this Act, shall not cause
7-15     or require the expiration or termination of a project, permit, or
7-16     series of permits to which Section 2 of this Act applies.  An
7-17     action by a regulatory agency that violates this section is void to
7-18     the extent necessary to give effect to this section.
7-19           (b)  This Act does not affect the rights or remedies of any
7-20     person or entity under a final judgment  rendered by a court before
7-21     the effective date of this Act, or in any litigation pending in a
7-22     court on the effective date of this Act, involving an
7-23     interpretation of Subchapter I, Chapter 481, Government Code, as it
7-24     existed before its repeal by the 75th Legislature.
7-25           SECTION 4.  CONSTRUCTION OF ACT.  Nothing in this Act shall
7-26     be construed to apply to a condition or provision of an ordinance,
7-27     rule, or regulation that is enacted by a regulatory agency, as that
 8-1     term is defined by Section 245.001, Local Government Code, as added
 8-2     by Section 2 of this Act, which is specifically required by
 8-3     uniformly applicable regulations adopted by a state agency after
 8-4     the effective date of this Act.
 8-5           SECTION 5.  EFFECT ON COASTAL ZONE MANAGEMENT ACT.  Nothing
 8-6     in this Act shall be construed to:
 8-7                 (1)  limit or otherwise affect the authority of a
 8-8     municipality, a county, another political subdivision, the state,
 8-9     or an agency of the state, with respect to the implementation or
8-10     enforcement of an ordinance, a rule, or a statutory standard of a
8-11     program, plan, or ordinance that was adopted under the federal
8-12     Coastal Zone Management Act of 1972 (16 U.S.C. Section 1451 et
8-13     seq.)  or its subsequent amendments or Subtitle E, Title 2, Natural
8-14     Resources Code; or
8-15                 (2)  apply to a permit, order, rule, regulation, or
8-16     other action issued, adopted, or undertaken by a municipality, a
8-17     county, another political subdivision, the state, or an agency of
8-18     the state in connection with the federal Coastal Zone Management
8-19     Act of 1972 (16 U.S.C. Section 1451 et seq.)  or its subsequent
8-20     amendments or Subtitle E, Title 2, Natural Resources Code.
8-21           SECTION 6.  EMERGENCY.  The importance of this legislation
8-22     and the crowded condition of the calendars in both houses create an
8-23     emergency and an imperative public necessity that the
8-24     constitutional rule requiring bills to be read on three several
8-25     days in each house be suspended, and this rule is hereby suspended,
8-26     and that this Act take effect and be in force from and after its
8-27     passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1704 was passed by the House on April
         21, 1999, by the following vote:  Yeas 140, Nays 5, 3 present, not
         voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1704 was passed by the Senate on
         April 29, 1999, by the following vote:  Yeas 26, Nays 3.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor