79(R) HB 2236 - House Committee Report version

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By:  Baxter                                                       H.B. No. 2236

Substitute the following for H.B. No. 2236:                                   

By:  Talton                                                   C.S.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.
		(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, or 
issuing the permit.
	(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.