By: Baxter, Seaman H.B. No. 2236
A BILL TO BE ENTITLED
AN ACT
relating to restrictions on the imposition of permit fees by
political subdivisions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 7, Local Government Code, is
amended by adding Chapter 247 to read as follows:
CHAPTER 247. FEES FOR LOCAL PERMITS
Sec. 247.001. DEFINITIONS. In this chapter:
(1) "Permit" means a license, certificate, approval,
registration, consent, or other form of authorization required by
law, rule, regulation, order, or ordinance that a person must
obtain to perform an action or initiate, continue, or complete a
project related to residential construction or development.
(2) "Permit fee" means an assessment, fee, cost, or
charge imposed by a political subdivision on a person seeking to
obtain a permit. The term does not include a fee that is charged by
a political subdivision as a result of state law separate and apart
from this chapter that is specific as to both the purpose for which
the fee may be imposed and the amount that the political subdivision
may charge.
(3) "Political subdivision" means a county or
municipality of this state or an entity owned, operated, or
controlled by a county or municipality of this state. The term does
not include a school district or groundwater district or other
district or authority created under Section 59, Article XVI, Texas
Constitution.
(4) "Regulatory agency" means the governing body or a
department, division, or other agency of a political subdivision
acting in the political subdivision's capacity of processing,
approving, or issuing a permit.
Sec. 247.002. LIMITATION ON AUTHORITY TO IMPOSE PERMIT FEE.
(a) A regulatory agency may impose a permit fee only if the agency
complies with this chapter and only in the amount necessary to
compensate the regulatory agency for the actual costs to review,
process, issue, or enforce the permit or to compensate the
regulatory agency for the actual and attributable costs of
infrastructure or improvements for which the fee is imposed.
(b) A fee collected by a regulatory agency for a permit may
not be used for a purpose other than to pay the costs of reviewing,
processing, issuing, or enforcing the permit or to compensate the
regulatory agency for the actual and attributable costs of
infrastructure or improvements for which the fee is imposed.
(c) Nothing in this chapter shall be construed as a grant of
authority to a regulatory agency or a political subdivision to
impose a permit fee or any other fee unless this authority has been
conferred to the regulatory agency or political subdivision by
other state law separate and apart from this chapter.
Sec. 247.003. ANNUAL BUDGET AND ACCOUNTING. (a) Before the
first day of the political subdivision's fiscal year, a regulatory
agency shall adopt a budget for each permit fee that:
(1) lists expenses for which the permit fee may be
used; and
(2) estimates the revenue that the regulatory agency
will collect from the permit fee.
(b) As soon as practicable after the last day of the
political subdivision's fiscal year, the regulatory agency shall
conduct an audit of the permit fees collected and the costs of
reviewing, processing, issuing, or enforcing the permits or to
compensate the regulatory agency for the actual and attributable
costs of infrastructure or improvements for which fees were imposed
in the preceding fiscal year. The audit shall identify a surplus or
deficit in the budget for each permit fee.
Sec. 247.004. LIMITATION ON INCREASE IN PERMIT FEES. (a) A
regulatory agency may increase a permit fee only if the political
subdivision holds two public hearings on the matter at which
interested parties and residents of the political subdivision have
an opportunity to be heard. The second hearing may not be held
before the 15th day after the date on which the first hearing is
held.
(b) Before the 30th day before the date of each hearing, the
regulatory agency shall publish notice of the time and place of each
hearing in an official newspaper designated by the political
subdivision or a newspaper of general circulation in the political
subdivision or the county in which the political subdivision is
located. The political subdivision shall also mail notice to any
person who requests, in writing, notice of a public hearing on the
increase of a permit fee.
(c) The regulatory agency proposing a permit fee increase
must make available to the public, not later than the 30th day
before the first hearing, a study that:
(1) is prepared by the regulatory agency; and
(2) conclusively demonstrates that an increase in the
permit fee is necessary to offset an increase to the reasonable cost
incurred by the regulatory agency in reviewing, processing,
issuing, or enforcing the permit or to compensate the regulatory
agency for the actual and attributable costs of infrastructure or
improvements for which the fee is imposed.
(d) An increase in a permit fee may not take effect before
the 30th day after the date on which the regulatory agency approves
the increase.
(e) A regulatory agency may not increase a permit fee before
the first anniversary of the effective date of the previous
increase of the permit fee.
Sec. 247.005. ENFORCEMENT. (a) Any person may notify the
attorney general of a violation of this chapter. If the attorney
general determines that a regulatory agency has violated any
provision of this chapter, the attorney general may initiate a
proceeding in district court to compel performance of this chapter.
Additionally, the attorney general may seek an order from a
district court directing the regulatory agency to immediately
reimburse each person who paid any fee imposed by the regulatory
agency in violation of this chapter.
(b) A person affected by the permit fee may bring an action
in district court against a regulatory agency for a violation of
this chapter. A person is not required to notify the attorney
general under Subsection (a) before a person may file an action
under this subsection.
(c) A regulatory agency that violates this chapter is liable
for attorney's fees incurred by a person in the enforcement of this
chapter.
SECTION 2. (a) A regulatory agency shall adopt a budget for
each permit fee imposed by the agency, as required by Section
247.003(a), Local Government Code, as added by this Act, before
January 1, 2006.
(b) A regulatory agency shall conduct audits, as required by
Section 247.003(b), Local Government Code, as added by this Act,
beginning as soon as practicable after January 1, 2006.
SECTION 3. This Act takes effect September 1, 2005.