H.B. 1204 78(R) Page  of 2BILL ANALYSIS


C.S.H.B. 1204
By: Baxter
Urban Affairs
Committee Report (Substituted)


BACKGROUND AND PURPOSE

Committee Substitute House Bill 1204 proposes to amend the subdivision
statutes, chapters 212, 232, and 242 of the Local Government Code.
Chapter 212 is entitled Municipal Regulation of Subdivisions and Property
Development.  It contains the statutory requirements for city approval of
subdivision plats, including matters related to utilities, developer
participation, procedures, and enforcement authority.  Chapter 232 is
entitled County Regulation of Subdivisions, and generally requires county
approval of subdivisions in unincorporated areas.  Chapter 242 addresses
the approval of subdivisions within the extraterritorial jurisdiction of a
city, which may vary up to five miles.  Chapter 242 is entitled Authority
of Municipality and County to Regulate Subdivisions In and Outside
Municipality's Extraterritorial Jurisdiction. 

Historically, the competing interests of approving subdivision plats
within a city's ETJ has been the subject of debate and legislative action.
Under current law, both cities and counties may approve subdivision plats
within the ETJ and in the event of a conflict, the "more stringent"
regulations apply.  C.S.H.B. 1204 proposes to clarify who approves
subdivision plats in the ETJ. 

Under current law, enacted in 2001, cities and counties were required to
enter into written agreements regarding the regulation of subdivisions in
the ETJ.  These agreements were generally required to be executed by April
1, 2002.  Under these agreements, either the county or the city could be
granted "exclusive jurisdiction" to approve ETJ subdivision plats, or the
county could apportion geographical areas of the ETJ, or the city and
county could establish "one office" for subdivision plat applications and
adopt "a consolidated and consistent set of regulations" for subdivisions.
Until these agreements are reached, approval of both the municipality and
county are required and the "more stringent regulation" applies in the
event of conflict. 

Municipalities and their counties who have complied with the 2001
legislation (HB 1445, 77th Legislature) would not be affected by this
bill.  Municipalities and their counties who have not complied will be
required to reach an agreement under Chapter 242.  If no agreement is
reached, regulation of subdivisions in the ETJ would either become the
exclusive responsibility of the county or the city or county could call
for binding arbitration. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends heading, Local Government Code   242.001.

SECTION 2. This section exempts municipalities with a population of 1.9
million or more and counties within 50 miles of an international border,
or to which subchapter C (economically distressed counties), Chapter 232,
applies. 

 This section also clarifies that municipalities and counties that choose
to adopt an interlocal agreement must establish a single set of
development regulations in the ETJ; it prohibits dual regulation in the
ETJ and deletes the "more stringent" language. 
 
 This section establishes that if a municipality and county do not reach a
valid agreement, the county is granted exclusive regulatory control in ETJ
after the 60-day period as provided by Section 3; requires arbitration. 

 This section clarifies that a regulation or an agreement adopted that
conflicts with a metropolitan planning organization's plan, the
metropolitan planning organizations's plan prevails. 

SECTION 3. This section adds a provision to provide a method for binding
arbitration in the event that a municipality and county do not agree on
regulatory controls.  It provides the method for selecting an arbitrator
or arbitration panel. 

 This section also limits the authority of the arbitration panel to the
authority of the municipality and county to establish a process for
establishing a single set of development regulations and not individual
plats.  Both the city and county are required to participate in the
arbitration. 

 The cost of the arbitration are assessed equally to the city and county
in arbitration.  The prevailing party in arbitration is required to assume
the maintenance of that infrastructure covered by regulation.  Arbitration
is limited to the authority to regulate plats and precludes arbitration of
individual plats.  This section expires on September 1, 2005. 

SECTION 4. This section adds a chapter-wide provision to make conforming
changes. 

SECTION 5. This section makes conforming changes to other sections of the
statute. 

SECTION 6. This section makes conforming changes to other sections of the
statute. 

SECTION 7. This section establishes a severability provision so that if
any portion of the statute is held invalid, the invalidity does not affect
the rest of the Act. 

SECTION 8. This section states that this bill only applies to subdivision
plats that are filed on or after the effective date of the Act, and
continues prior law in effect for subdivision plats filed before that
date. 

SECTION 9.Effective date

EFFECTIVE DATE:  September 1, 2003.

COMPARISON OF ORIGINAL TO SUBSTITUTE:
C.S.H.B. 1204 modifies the original bill by restoring language in Section
242.001 that currently establishes the exemption for Houston, border
counties, and economically distressed counties.  The substitute removes
the language that exempts small cities. Language was removed from the
original bill that established specific items for local control instead of
language that addressed "more stringent shall prevail."  C.S.H.B. 1204 has
substituted a binding arbitration provision for the requirement in the
original bill that the county would become the regulatory authority over
plats.  The substitute also provides for an alternate effective date and
adds a severability clause.