77R12550 PAM-F                           
         By Walker                                             H.B. No. 2117
         Substitute the following for H.B. No. 2117:
         By Turner of Coleman                              C.S.H.B. No. 2117
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the imposition by a municipality of a moratorium on
 1-3     property development in certain circumstances.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Chapter 212, Local Government Code, is amended by
 1-6     adding Subchapter E to read as follows:
 1-7        SUBCHAPTER E.  MORATORIUM ON PROPERTY DEVELOPMENT IN CERTAIN
 1-8                                CIRCUMSTANCES
 1-9           Sec. 212.131.  DEFINITION. In this subchapter, "essential
1-10     public facilities" means water or sewer facilities or street
1-11     improvements provided by a municipality or private utility.
1-12           Sec. 212.132.  APPLICABILITY. This subchapter applies only to
1-13     a moratorium imposed on property development affecting only
1-14     residential property.
1-15           Sec. 212.133.  MORATORIUM ON PROPERTY DEVELOPMENT. (a)  For
1-16     purposes of this subchapter, a municipality is considered to have
1-17     imposed a moratorium on property development if the municipality
1-18     routinely delays the issuance of or stops issuing permits,
1-19     authorizations, or approvals necessary for the subdivision of, site
1-20     planning of, or construction on real property.
1-21           (b)  A municipality is not considered to have imposed a
1-22     moratorium on property development if the municipality denies or
1-23     delays a permit, authorization, or approval because the permit,
1-24     authorization, or approval is inconsistent with applicable
 2-1     statutes, rules, or ordinances, including zoning ordinances.
 2-2           Sec. 212.134.  PROCEDURE FOR ADOPTING MORATORIUM.  A
 2-3     municipality may not adopt a moratorium on property development
 2-4     unless the municipality:
 2-5                 (1)  complies with the notice and hearing procedures
 2-6     prescribed by Section 212.135; and
 2-7                 (2)  makes written findings as provided by Section
 2-8     212.136.
 2-9           Sec. 212.135.  NOTICE AND PUBLIC HEARING REQUIREMENTS. (a)
2-10     Before a moratorium on property development may be imposed, a
2-11     municipality must conduct public hearings as provided by this
2-12     section.
2-13           (b)  A public hearing must provide municipal residents and
2-14     affected parties an opportunity to be heard.  The municipality must
2-15     publish notice of the time and place of a hearing in a newspaper of
2-16     general circulation in the municipality on the fourth day before
2-17     the date of the hearing.
2-18           (c)  Beginning on the fifth business day after the date a
2-19     notice is published under Subsection (b), a temporary moratorium
2-20     takes effect.  During the period of the temporary moratorium, a
2-21     municipality may stop accepting applications for permits,
2-22     authorizations, and approvals necessary for the subdivision of,
2-23     site planning of, or construction on real property.
2-24           (d)  One public hearing must be held before the governing
2-25     body of the municipality.  Another public hearing must be held
2-26     before the municipal zoning commission, if the municipality has a
2-27     zoning commission.
 3-1           (e)  If a general-law municipality does not have a zoning
 3-2     commission, two public hearings separated by at least four days
 3-3     must be held before the governing body of the municipality.
 3-4           (f)  Within 12 days after the date of the first public
 3-5     hearing, the municipality shall make a final determination on the
 3-6     imposition of a moratorium.   Before an ordinance adopting a
 3-7     moratorium may be imposed, the ordinance must be given at least two
 3-8     readings by the governing body of the municipality.  The readings
 3-9     must be separated by at least four days.  If the municipality fails
3-10     to adopt an ordinance imposing a moratorium within the period
3-11     prescribed by this subsection, an ordinance imposing a moratorium
3-12     may not be adopted, and the temporary moratorium imposed under
3-13     Subsection (c) expires.
3-14           Sec. 212.136.  JUSTIFICATION FOR MORATORIUM; WRITTEN FINDINGS
3-15     REQUIRED. (a)  If a municipality adopts a moratorium on property
3-16     development, the moratorium may be justified by demonstrating a
3-17     need to prevent a shortage of essential public facilities that
3-18     would otherwise occur during the effective period of the
3-19     moratorium.  The municipality must issue written findings based on
3-20     reasonably available information.  The written findings must
3-21     include a summary of:
3-22                 (1)  evidence demonstrating the extent of need beyond
3-23     the estimated capacity of existing essential public facilities that
3-24     is expected to result from new property development, including
3-25     identifying:
3-26                       (A)  any essential public facilities currently
3-27     operating beyond capacity;
 4-1                       (B)  the portion of that capacity committed to
 4-2     development; and
 4-3                       (C)  the impact fees allocated to address the
 4-4     need;
 4-5                 (2)  evidence demonstrating that the moratorium is
 4-6     reasonably limited to:
 4-7                       (A)  areas of the municipality where a shortage
 4-8     of essential public facilities would otherwise occur; and
 4-9                       (B)  property that has not been approved for
4-10     development because of the insufficiency of existing essential
4-11     public facilities; and
4-12                 (3)  evidence demonstrating that the housing and
4-13     economic development needs of the affected area have been
4-14     accommodated as much as possible by any programs that allocate
4-15     remaining essential public facilities capacity.
4-16           (b)  A moratorium that is not based on a shortage of
4-17     essential public facilities may be justified only by demonstrating
4-18     a compelling need for other public facilities, including police and
4-19     fire facilities.  For purposes of this subsection, a compelling
4-20     need for public facilities is established if the failure to provide
4-21     those public facilities would result in a clear and imminent danger
4-22     to public health and safety.  The municipality must issue written
4-23     findings based on reasonably available information.  The written
4-24     findings must include a summary of:
4-25                 (1)  evidence demonstrating that applying existing
4-26     development ordinances or regulations and other applicable law is
4-27     inadequate to prevent irrevocable public harm from development in
 5-1     affected geographical areas;
 5-2                 (2)  evidence demonstrating that the moratorium is
 5-3     sufficiently limited to ensure that a needed supply of affected
 5-4     housing types and the supply of commercial and industrial
 5-5     facilities within or in proximity of the municipality are not
 5-6     unreasonably restricted by the adoption of the moratorium;
 5-7                 (3)  evidence demonstrating that alternative methods of
 5-8     achieving the objectives of the moratorium are unsatisfactory;
 5-9                 (4)  evidence demonstrating that the public harm
5-10     resulting from failing to impose a moratorium outweighs the adverse
5-11     impact on other affected local governments resulting from imposing
5-12     the moratorium, including public harm resulting from:
5-13                       (A)  shifts in demand for housing, economic
5-14     development, public facilities and services, and property suitable
5-15     for development; and
5-16                       (B)  the overall impact of the moratorium on
5-17     population distribution; and
5-18                 (5)  evidence demonstrating that the municipality has
5-19     developed a working plan and time schedule for achieving the
5-20     objectives of the moratorium.
5-21           Sec. 212.137.  EXPIRATION OF MORATORIUM; EXTENSION. (a)  A
5-22     moratorium adopted under this subchapter expires on the 120th day
5-23     after the date the moratorium is adopted unless the municipality
5-24     extends the moratorium by:
5-25                 (1)  holding a public hearing on the proposed extension
5-26     of the moratorium; and
5-27                 (2)  adopting written findings that:
 6-1                       (A)  identify the problem requiring the need for
 6-2     extending the moratorium;
 6-3                       (B)  describe the reasonable progress made to
 6-4     alleviate the problem; and
 6-5                       (C)  specify a definite duration for the renewal
 6-6     period of the moratorium.
 6-7           (b)  A municipality proposing an extension of a moratorium
 6-8     must publish notice in a newspaper of general circulation in the
 6-9     municipality not later than the 15th day before the date of the
6-10     hearing required by Subsection (a).
6-11           Sec. 212.138.  WAIVER PROCEDURES REQUIRED. A moratorium
6-12     adopted under this subchapter must provide a procedure that permits
6-13     a landowner to apply for a waiver from the moratorium relating to
6-14     the landowner's property by:
6-15                 (1)  claiming a right obtained under a development
6-16     agreement;
6-17                 (2)  claiming a protected or vested right; or
6-18                 (3)  providing the public facilities that are the
6-19     subject of the moratorium at the landowner's cost.
6-20           Sec. 212.139.  EFFECT ON OTHER LAW.  A moratorium adopted
6-21     under this subchapter does not affect the rights acquired under
6-22     Chapter 245.
6-23           SECTION 2. Section 395.076, Local Government Code, is amended
6-24     to read as follows:
6-25           Sec. 395.076.  MORATORIUM ON DEVELOPMENT PROHIBITED. A
6-26     moratorium may not be placed on new development for the purpose of
6-27     awaiting the completion of all or any part of the process necessary
 7-1     to develop, adopt, or update land use assumptions, a capital
 7-2     improvements plan, or an [the] impact fee.
 7-3           SECTION 3.  This Act takes effect immediately if it receives
 7-4     a vote of two-thirds of all the members elected to each house, as
 7-5     provided by Section 39, Article III, Texas Constitution.  If this
 7-6     Act does not receive the vote necessary for immediate effect, this
 7-7     Act takes effect September 1, 2001.