By Carona S.B. No. 980
77R3401 PAM-F
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. MORATORIUM ON PROPERTY DEVELOPMENT. (a) For
1-13 purposes of this subchapter, a municipality is considered to have
1-14 imposed a moratorium on property development if the municipality
1-15 routinely delays the issuance of or stops issuing permits,
1-16 authorizations, or approvals necessary for the subdivision of, site
1-17 planning of, or construction on real property.
1-18 (b) A municipality is not considered to have imposed a
1-19 moratorium on property development if the municipality denies or
1-20 delays a permit, authorization, or approval because the permit,
1-21 authorization, or approval is inconsistent with applicable
1-22 statutes, rules, or ordinances, including zoning ordinances.
1-23 Sec. 212.133. PROCEDURE FOR ADOPTING MORATORIUM. A
1-24 municipality may not adopt a moratorium on property development
2-1 unless the municipality:
2-2 (1) complies with the notice and hearing procedures
2-3 prescribed by Section 212.134; and
2-4 (2) makes written findings as provided by Section
2-5 212.135.
2-6 Sec. 212.134. NOTICE AND PUBLIC HEARING REQUIREMENTS. (a)
2-7 Before a moratorium on property development may be imposed, a
2-8 municipality must conduct public hearings as provided by this
2-9 section.
2-10 (b) A public hearing must provide municipal residents and
2-11 affected parties an opportunity to be heard. The municipality must
2-12 publish notice of the time and place of a hearing in a newspaper of
2-13 general circulation in the municipality before the 15th day before
2-14 the date of the hearing.
2-15 (c) 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 (d) If a general-law municipality does not have a zoning
2-20 commission, two public hearings separated by at least 14 days must
2-21 be held before the governing body of the municipality.
2-22 (e) Before an ordinance adopting a moratorium may be
2-23 imposed, the ordinance must be given at least two readings by the
2-24 governing body of the municipality. The readings must be separated
2-25 by at least seven days.
2-26 Sec. 212.135. JUSTIFICATION FOR MORATORIUM; WRITTEN FINDINGS
2-27 REQUIRED. (a) If a municipality adopts a moratorium on property
3-1 development, the moratorium may be justified by demonstrating a
3-2 need to prevent a shortage of essential public facilities that
3-3 would otherwise occur during the effective period of the
3-4 moratorium. The municipality must issue written findings based on
3-5 reasonably available information. The written findings must
3-6 include a summary of:
3-7 (1) evidence demonstrating the extent of need beyond
3-8 the estimated capacity of existing essential public facilities that
3-9 is expected to result from new property development, including
3-10 identifying:
3-11 (A) any essential public facilities currently
3-12 operating beyond capacity;
3-13 (B) the portion of that capacity committed to
3-14 development; and
3-15 (C) the impact fees allocated to address the
3-16 need;
3-17 (2) evidence demonstrating that the moratorium is
3-18 reasonably limited to:
3-19 (A) areas of the municipality where a shortage
3-20 of essential public facilities would otherwise occur; and
3-21 (B) property that has not been approved for
3-22 development because of the insufficiency of existing essential
3-23 public facilities; and
3-24 (3) evidence demonstrating that the housing and
3-25 economic development needs of the affected area have been
3-26 accommodated as much as possible by any programs that allocate
3-27 remaining essential public facilities capacity.
4-1 (b) A moratorium that is not based on a shortage of
4-2 essential public facilities may be justified only by demonstrating
4-3 a compelling need for other public facilities, including police and
4-4 fire facilities. For purposes of this subsection, a compelling
4-5 need for public facilities is established if the failure to provide
4-6 those public facilities would result in a clear and imminent danger
4-7 to public health and safety. The municipality must issue written
4-8 findings based on reasonably available information. The written
4-9 findings must include a summary of:
4-10 (1) evidence demonstrating that applying existing
4-11 development ordinances or regulations and other applicable law is
4-12 inadequate to prevent irrevocable public harm from development in
4-13 affected geographical areas;
4-14 (2) evidence demonstrating that the moratorium is
4-15 sufficiently limited to ensure that a needed supply of affected
4-16 housing types and the supply of commercial and industrial
4-17 facilities within or in proximity of the municipality are not
4-18 unreasonably restricted by the adoption of the moratorium;
4-19 (3) evidence demonstrating that alternative methods of
4-20 achieving the objectives of the moratorium are unsatisfactory;
4-21 (4) evidence demonstrating that the public harm
4-22 resulting from failing to impose a moratorium outweighs the adverse
4-23 impact on other affected local governments resulting from imposing
4-24 the moratorium, including public harm resulting from:
4-25 (A) shifts in demand for housing, economic
4-26 development, public facilities and services, and property suitable
4-27 for development; and
5-1 (B) the overall impact of the moratorium on
5-2 population distribution; and
5-3 (5) evidence demonstrating that the municipality has
5-4 developed a working plan and time schedule for achieving the
5-5 objectives of the moratorium.
5-6 Sec. 212.136. EXPIRATION OF MORATORIUM; EXTENSION. (a) A
5-7 moratorium adopted under this subchapter expires on the 120th day
5-8 after the date the moratorium is adopted unless the municipality
5-9 extends the moratorium by:
5-10 (1) holding a public hearing on the proposed extension
5-11 of the moratorium; and
5-12 (2) adopting written findings that:
5-13 (A) identify the problem requiring the need for
5-14 extending the moratorium;
5-15 (B) describe the reasonable progress made to
5-16 alleviate the problem; and
5-17 (C) specify a definite duration for the renewal
5-18 period of the moratorium.
5-19 (b) A municipality proposing an extension of a moratorium
5-20 must publish notice in a newspaper of general circulation in the
5-21 municipality not later than the 30th day before the date of the
5-22 hearing required by Subsection (a).
5-23 Sec. 212.137. WAIVER PROCEDURES REQUIRED. A moratorium
5-24 adopted under this subchapter must provide a procedure that permits
5-25 a landowner to apply for a waiver from the moratorium relating to
5-26 the landowner's property by:
5-27 (1) claiming a right obtained under a development
6-1 agreement;
6-2 (2) claiming a protected or vested right; or
6-3 (3) providing the public facilities that are the
6-4 subject of the moratorium at the landowner's cost.
6-5 Sec. 212.138. JUDICIAL REVIEW. (a) A landowner aggrieved by
6-6 a municipality's adoption of a moratorium under this subchapter may
6-7 file an action in district court to contest the adoption of the
6-8 moratorium not later than the 30th day after the date the ordinance
6-9 imposing the moratorium is adopted.
6-10 (b) The court shall award to the prevailing party in an
6-11 action under this section reasonable attorney's fees incurred in
6-12 the trial and appeal of the action.
6-13 Sec. 212.139. EFFECT ON OTHER LAW. A moratorium adopted
6-14 under this subchapter does not affect the rights acquired under
6-15 Chapter 245.
6-16 SECTION 2. Section 395.076, Local Government Code, is amended
6-17 to read as follows:
6-18 Sec. 395.076. MORATORIUM ON DEVELOPMENT PROHIBITED. A
6-19 moratorium may not be placed on new development for the purpose of
6-20 awaiting the completion of all or any part of the process necessary
6-21 to develop, adopt, or update land use assumptions, a capital
6-22 improvements plan, or an [the] impact fee.
6-23 SECTION 3. This Act takes effect immediately if it receives
6-24 a vote of two-thirds of all the members elected to each house, as
6-25 provided by Section 39, Article III, Texas Constitution. If this
6-26 Act does not receive the vote necessary for immediate effect, this
6-27 Act takes effect September 1, 2001.