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