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.  DEFINITIONS.  In this subchapter:
1-10                 (1)  "Essential public facilities" means water, sewer,
1-11     or storm drainage facilities or street improvements provided by a
1-12     municipality or private utility.
1-13                 (2)  "Residential property" means property zoned for or
1-14     otherwise authorized for single-family or multi-family use.
1-15                 (3)  "Property development" means the new construction
1-16     of residential buildings on vacant land.
1-17           Sec. 212.132.  APPLICABILITY.  This subchapter applies only
1-18     to a moratorium imposed on property development affecting only
1-19     residential property.
1-20           Sec. 212.133.  PROCEDURE FOR ADOPTING MORATORIUM.  A
1-21     municipality may not adopt a moratorium on property development
1-22     unless the municipality:
1-23                 (1)  complies with the notice and hearing procedures
1-24     prescribed by Section 212.134; and
1-25                 (2)  makes written findings as provided by Section
 2-1     212.135.
 2-2           Sec. 212.134.  NOTICE AND PUBLIC HEARING REQUIREMENTS.
 2-3     (a)  Before a moratorium on property development may be imposed, a
 2-4     municipality must conduct public hearings as provided by this
 2-5     section.
 2-6           (b)  A public hearing must provide municipal residents and
 2-7     affected parties an opportunity to be heard.  The municipality must
 2-8     publish notice of the time and place of a hearing in a newspaper of
 2-9     general circulation in the municipality on the fourth day before
2-10     the date of the hearing.
2-11           (c)  Beginning on the fifth business day after the date a
2-12     notice is published under Subsection (b), a temporary moratorium
2-13     takes effect.  During the period of the temporary moratorium, a
2-14     municipality may stop accepting permits, authorizations, and
2-15     approvals necessary for the subdivision of, site planning of, or
2-16     construction on real property.
2-17           (d)  One public hearing must be held before the governing
2-18     body of the municipality.  Another public hearing must be held
2-19     before the municipal zoning commission, if the municipality has a
2-20     zoning commission.
2-21           (e)  If a general-law municipality does not have a zoning
2-22     commission, two public hearings separated by at least four days
2-23     must be held before the governing body of the municipality.
2-24           (f)  Within 12 days after the date of the first public
2-25     hearing, the municipality shall make a final determination on the
2-26     imposition of a moratorium.  Before an ordinance adopting a
 3-1     moratorium may be imposed, the ordinance must be given at least two
 3-2     readings by the governing body of the municipality.  The readings
 3-3     must be separated by at least four days.  If the municipality fails
 3-4     to adopt an ordinance imposing a moratorium within the period
 3-5     prescribed by this subsection, an ordinance imposing a moratorium
 3-6     may not be adopted, and the temporary moratorium imposed under
 3-7     Subsection (c) expires.
 3-8           Sec. 212.135.  JUSTIFICATION FOR MORATORIUM; WRITTEN FINDINGS
 3-9     REQUIRED.  (a)  If a municipality adopts a moratorium on property
3-10     development, the moratorium is justified by demonstrating a need to
3-11     prevent a shortage of essential public facilities.  The
3-12     municipality must issue written findings based on reasonably
3-13     available information.  The written findings must include a summary
3-14     of:
3-15                 (1)  evidence demonstrating the extent of need beyond
3-16     the estimated capacity of existing essential public facilities that
3-17     is expected to result from new property development, including
3-18     identifying:
3-19                       (A)  any essential public facilities currently
3-20     operating near, at, or beyond capacity;
3-21                       (B)  the portion of that capacity committed to
3-22     the development subject to the moratorium; and
3-23                       (C)  the impact fee revenue allocated to address
3-24     the facility need; and
3-25                 (2)  evidence demonstrating that the moratorium is
3-26     reasonably limited to:
 4-1                       (A)  areas of the municipality where a shortage
 4-2     of essential public facilities would otherwise occur; and
 4-3                       (B)  property that has not been approved for
 4-4     development because of the insufficiency of existing essential
 4-5     public facilities.
 4-6           (b)  A moratorium that is not based on a shortage of
 4-7     essential public facilities is justified only by demonstrating a
 4-8     significant need for other public facilities, including police and
 4-9     fire facilities.  For purposes of this subsection, a significant
4-10     need for public facilities is established if the failure to provide
4-11     those public facilities would result in an overcapacity of public
4-12     facilities or would be detrimental to the health, safety, and
4-13     welfare of the residents of the municipality.  The municipality
4-14     must issue written findings based on reasonably available
4-15     information.  The written findings must include a summary of:
4-16                 (1)  evidence demonstrating that applying existing
4-17     development ordinances or regulations and other applicable laws is
4-18     inadequate to prevent the new development from causing the
4-19     overcapacity of municipal infrastructure or being detrimental to
4-20     the public health, safety, and welfare in an affected geographical
4-21     area;
4-22                 (2)  evidence demonstrating that alternative methods of
4-23     achieving the objectives of the moratorium are unsatisfactory; and
4-24                 (3)  evidence demonstrating that the municipality has
4-25     approved a working plan and time schedule for achieving the
4-26     objectives of the moratorium.
 5-1           Sec. 212.136.  EXPIRATION OF MORATORIUM; EXTENSION.  (a)  A
 5-2     moratorium adopted under this subchapter expires on the 120th day
 5-3     after the date the moratorium is adopted unless the municipality
 5-4     extends the moratorium by:
 5-5                 (1)  holding a public hearing on the proposed extension
 5-6     of the moratorium; and
 5-7                 (2)  adopting written findings that:
 5-8                       (A)  identify the problem requiring the need for
 5-9     extending the moratorium;
5-10                       (B)  describe the reasonable progress made to
5-11     alleviate the problem; and
5-12                       (C)  specify a definite duration for the renewal
5-13     period of the moratorium.
5-14           (b)  A municipality proposing an extension of a moratorium
5-15     must publish notice in a newspaper of general circulation in the
5-16     municipality not later than the 15th day before the date of the
5-17     hearing required by Subsection (a).
5-18           Sec. 212.137.  WAIVER PROCEDURES REQUIRED.  (a)  A moratorium
5-19     adopted under this subchapter must allow a permit applicant to
5-20     apply for a waiver from the moratorium relating to the property
5-21     subject to the permit by:
5-22                 (1)  claiming a right obtained under a development
5-23     agreement;
5-24                 (2)  claiming a vested right under Chapter 245 or
5-25     common law; or
5-26                 (3)  providing the public facilities that are the
 6-1     subject of the moratorium at the landowner's cost.
 6-2           (b)  The permit applicant must submit the reasons for the
 6-3     request to the governing body of the municipality in writing.  The
 6-4     governing body of the municipality must vote on whether to grant
 6-5     the waiver request within 10 days after receiving the written
 6-6     request.
 6-7           Sec. 212.138.  EFFECT ON OTHER LAW.  A moratorium adopted
 6-8     under this subchapter does not affect the rights acquired under
 6-9     Chapter 245 or common law.
6-10           SECTION 2.  Section 395.076, Local Government Code, is
6-11     amended to read as follows:
6-12           Sec. 395.076.  MORATORIUM ON DEVELOPMENT PROHIBITED.  A
6-13     moratorium may not be placed on new development for the purpose of
6-14     awaiting the completion of all or any part of the process necessary
6-15     to develop, adopt, or update land use assumptions, a capital
6-16     improvements plan, or an [the] impact fee.
6-17           SECTION 3.  This Act takes effect immediately if it receives
6-18     a vote of two-thirds of all the members elected to each house, as
6-19     provided by Section 39, Article III, Texas Constitution.  If this
6-20     Act does not receive the vote necessary for immediate effect, this
6-21     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 980 passed the Senate on
         April 30, 2001, by the following vote:  Yeas 27, Nays 2, one
         present, not voting; and that the Senate concurred in House
         amendment on May 15, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 980 passed the House, with
         amendment, on May 10, 2001, by a non-record vote.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor