SRC-LBB C.S.H.B. 2295 78(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 2295
78R16154 MXM-FBy: Thompson (Ellis, Rodney)
Intergovernmental Relations
5/18/2003
Committee Report (Substituted)


DIGEST AND PURPOSE 

Chapter 212 of the Local Government Code is entitled Municipal Regulation
of Subdivisions and Property Development.  It contains the fundamental
statutes regarding the approval of subdivision plats, developer
participation contracts, moratoriums, and other miscellaneous provisions.
Under current law, cities with a population of 5,000 or more may contract
with developers for public improvements (excluding buildings) without a
need to comply with bidding procedures.  Participation by the city in
these contracts is prohibited from exceeding 30 percent of the total
price. The developer is responsible for construction.  C.S.H.B. 2295
requires a contract to establish the level of participation so as not to
exceed 30 percent of the total price in municipalities with a population
less than 1.8 million.  This bill authorizes participation not to exceed
70 percent in municipalities with populations of 1.8 million or more. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 212.072, Local Government Code, by amending
Subsection (b) and adding Subsections (c) and (d), as follows: 

 (b)  Provides that the contract:

(1)  is required to establish the limit of participation by the
municipality at a level not to exceed 30 percent of the total contract
price, if the municipality has a population of less than 1.8 million; or 
  
(2)  authorizes participation by a municipality at a level not to exceed
70 percent of the total contract price, if the municipality has a
population of 1.8 million or more. 

 (c)  Creates this subsection from existing text.

(d)  Provides that the municipality is liable only for the agreed payment
of its share of the contract, which is required to be determined in
advance either as a lump sum or as a factor or percentage of the total
actual cost as determined by municipal ordinance.  

SECTION 2.  Effective date:  upon passage or September 1, 2003.