1-1 By: Carona S.B. No. 980
1-2 (In the Senate - Filed February 28, 2001; March 1, 2001, read
1-3 first time and referred to Committee on Business and Commerce;
1-4 April 24, 2001, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 6, Nays 0; April 24, 2001,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 980 By: Carona
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the imposition by a municipality of a moratorium on
1-11 property development in certain circumstances.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Chapter 212, Local Government Code, is amended by
1-14 adding Subchapter E to read as follows:
1-15 SUBCHAPTER E. MORATORIUM ON PROPERTY DEVELOPMENT IN CERTAIN
1-16 CIRCUMSTANCES
1-17 Sec. 212.131. DEFINITION. In this subchapter, "essential
1-18 public facilities" means water or sewer facilities or street
1-19 improvements provided by a municipality or private utility.
1-20 Sec. 212.132. APPLICABILITY. This subchapter applies only
1-21 to a moratorium imposed on property development affecting only
1-22 residential property.
1-23 Sec. 212.133. PROCEDURE FOR ADOPTING MORATORIUM. A
1-24 municipality may not adopt a moratorium on property development
1-25 unless the municipality:
1-26 (1) complies with the notice and hearing procedures
1-27 prescribed by Section 212.134; and
1-28 (2) makes written findings as provided by Section
1-29 212.135.
1-30 Sec. 212.134. NOTICE AND PUBLIC HEARING REQUIREMENTS.
1-31 (a) Before a moratorium on property development may be imposed, a
1-32 municipality must conduct public hearings as provided by this
1-33 section.
1-34 (b) A public hearing must provide municipal residents and
1-35 affected parties an opportunity to be heard. The municipality must
1-36 publish notice of the time and place of a hearing in a newspaper of
1-37 general circulation in the municipality on the fourth day before
1-38 the date of the hearing.
1-39 (c) Beginning on the fifth business day after the date a
1-40 notice is published under Subsection (b), a temporary moratorium
1-41 takes effect. During the period of the temporary moratorium, a
1-42 municipality may stop accepting permits, authorizations, and
1-43 approvals necessary for the subdivision of, site planning of, or
1-44 construction on real property.
1-45 (d) One public hearing must be held before the governing
1-46 body of the municipality. Another public hearing must be held
1-47 before the municipal zoning commission, if the municipality has a
1-48 zoning commission.
1-49 (e) If a general-law municipality does not have a zoning
1-50 commission, two public hearings separated by at least four days
1-51 must be held before the governing body of the municipality.
1-52 (f) Within 12 days after the date of the first public
1-53 hearing, the municipality shall make a final determination on the
1-54 imposition of a moratorium. Before an ordinance adopting a
1-55 moratorium may be imposed, the ordinance must be given at least two
1-56 readings by the governing body of the municipality. The readings
1-57 must be separated by at least four days. If the municipality fails
1-58 to adopt an ordinance imposing a moratorium within the period
1-59 prescribed by this subsection, an ordinance imposing a moratorium
1-60 may not be adopted, and the temporary moratorium imposed under
1-61 Subsection (c) expires.
1-62 Sec. 212.135. JUSTIFICATION FOR MORATORIUM; WRITTEN FINDINGS
1-63 REQUIRED. (a) If a municipality adopts a moratorium on property
1-64 development, the moratorium may be justified by demonstrating a
2-1 need to prevent a shortage of essential public facilities that
2-2 would otherwise occur during the effective period of the
2-3 moratorium. The municipality must issue written findings based on
2-4 reasonably available information. The written findings must
2-5 include a summary of:
2-6 (1) evidence demonstrating the extent of need beyond
2-7 the estimated capacity of existing essential public facilities that
2-8 is expected to result from new property development, including
2-9 identifying:
2-10 (A) any essential public facilities currently
2-11 operating beyond capacity;
2-12 (B) the portion of that capacity committed to
2-13 development; and
2-14 (C) the impact fees allocated to address the
2-15 need;
2-16 (2) evidence demonstrating that the moratorium is
2-17 reasonably limited to:
2-18 (A) areas of the municipality where a shortage
2-19 of essential public facilities would otherwise occur; and
2-20 (B) property that has not been approved for
2-21 development because of the insufficiency of existing essential
2-22 public facilities; and
2-23 (3) evidence demonstrating that the housing and
2-24 economic development needs of the affected area have been
2-25 accommodated as much as possible by any programs that allocate
2-26 remaining essential public facilities capacity.
2-27 (b) A moratorium that is not based on a shortage of
2-28 essential public facilities may be justified only by demonstrating
2-29 a significant need for other public facilities, including police
2-30 and fire facilities. For purposes of this subsection, a
2-31 significant need for public facilities is established if the
2-32 failure to provide those public facilities would result in an
2-33 overcapacity of public facilities proximately caused by the new
2-34 development. The municipality must issue written findings based on
2-35 reasonably available information. The written findings must
2-36 include a summary of:
2-37 (1) evidence demonstrating that applying existing
2-38 development ordinances or regulations and other applicable laws is
2-39 inadequate to prevent the new development from proximately causing
2-40 the overcapacity of municipal infrastructure in an affected
2-41 geographical area;
2-42 (2) evidence demonstrating that the moratorium is
2-43 sufficiently limited to ensure that a needed supply of affected
2-44 housing types and the supply of commercial and industrial
2-45 facilities within or in proximity of the municipality are not
2-46 unreasonably restricted by the adoption of the moratorium;
2-47 (3) evidence demonstrating that alternative methods of
2-48 achieving the objectives of the moratorium are unsatisfactory;
2-49 (4) evidence demonstrating that the public harm
2-50 resulting from failing to impose a moratorium outweighs the adverse
2-51 impact on other affected local governments resulting from imposing
2-52 the moratorium, including public harm resulting from:
2-53 (A) shifts in demand for housing, economic
2-54 development, public facilities and services, and property suitable
2-55 for development; and
2-56 (B) the overall impact of the moratorium on
2-57 population distribution; and
2-58 (5) evidence demonstrating that the municipality has
2-59 developed a working plan and time schedule for achieving the
2-60 objectives of the moratorium.
2-61 Sec. 212.136. EXPIRATION OF MORATORIUM; EXTENSION. (a) A
2-62 moratorium adopted under this subchapter expires on the 120th day
2-63 after the date the moratorium is adopted unless the municipality
2-64 extends the moratorium by:
2-65 (1) holding a public hearing on the proposed extension
2-66 of the moratorium; and
2-67 (2) adopting written findings that:
2-68 (A) identify the problem requiring the need for
2-69 extending the moratorium;
3-1 (B) describe the reasonable progress made to
3-2 alleviate the problem; and
3-3 (C) specify a definite duration for the renewal
3-4 period of the moratorium.
3-5 (b) A municipality proposing an extension of a moratorium
3-6 must publish notice in a newspaper of general circulation in the
3-7 municipality not later than the 15th day before the date of the
3-8 hearing required by Subsection (a).
3-9 Sec. 212.137. WAIVER PROCEDURES REQUIRED. (a) A moratorium
3-10 adopted under this subchapter must allow a permit applicant to
3-11 apply for a waiver from the moratorium relating to the property
3-12 subject to the permit by:
3-13 (1) claiming a right obtained under a development
3-14 agreement;
3-15 (2) claiming a vested right under Chapter 245 or
3-16 common law; or
3-17 (3) providing the public facilities that are the
3-18 subject of the moratorium at the landowner's cost.
3-19 (b) The permit applicant must submit the reasons for the
3-20 request to the governing body of the municipality in writing. The
3-21 governing body of the municipality must vote on whether to grant
3-22 the waiver request within 10 days after receiving the written
3-23 request.
3-24 Sec. 212.138. EFFECT ON OTHER LAW. A moratorium adopted
3-25 under this subchapter does not affect the rights acquired under
3-26 Chapter 245 or common law.
3-27 SECTION 2. Section 395.076, Local Government Code, is
3-28 amended to read as follows:
3-29 Sec. 395.076. MORATORIUM ON DEVELOPMENT PROHIBITED. A
3-30 moratorium may not be placed on new development for the purpose of
3-31 awaiting the completion of all or any part of the process necessary
3-32 to develop, adopt, or update land use assumptions, a capital
3-33 improvements plan, or an [the] impact fee.
3-34 SECTION 3. This Act takes effect immediately if it receives
3-35 a vote of two-thirds of all the members elected to each house, as
3-36 provided by Section 39, Article III, Texas Constitution. If this
3-37 Act does not receive the vote necessary for immediate effect, this
3-38 Act takes effect September 1, 2001.
3-39 * * * * *