88R6854 SCL-D

By: Harris of Anderson H.B. No. 1526

A BILL TO BE ENTITLED

AN ACT

relating to parkland dedication for property development by certain municipalities; authorizing a fee.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 212, Local Government Code, is amended by adding Subchapter H to read as follows:

SUBCHAPTER H. PARKLAND DEDICATION: MUNICIPALITIES WITH POPULATION

OF MORE THAN 800,000

Sec. 212.201. DEFINITIONS. In this subchapter:

(1) "Consumer price index" means the Consumer Price Index for All Urban Consumers (CPI-U), U.S. City Average, published by the Bureau of Labor Statistics of the United States Department of Labor or its successor in function.

(2) "Improvement" and "market value" have the meanings assigned by Section 1.04, Tax Code.

(3) "Land value" means the market value of land per acre, not including an improvement to the land.

(4) "Parkland" means an area that is designated as a park for the purpose of recreational activity.

(5) "Parkland dedication" means the fee simple transfer of land or the dedication of an easement to a municipality for nonexclusive use as parkland.

(6) "Plan" means a subdivision development plan, subdivision plan, site plan, land development plan, and site development plan proposing the development of residential units.

Sec. 212.202. APPLICABILITY. This subchapter applies only to a municipality with a population of more than 800,000.

Sec. 212.203. EXCLUSIVE AUTHORITY. Notwithstanding any other law, a municipality has exclusive authority within its boundaries to require the dedication of parkland or a parkland dedication fee instead of the dedication. A municipality may not delegate that authority to another political subdivision.

Sec. 212.204. PARKLAND DEDICATION, FEE, OR COMBINATION. A municipality that requires a landowner to dedicate a portion of the landowner's property for parkland use under a plan application filed under this subchapter shall require the landowner to:

(1) pay a fee set in accordance with Section 212.208(h); or

(2) dedicate a portion up to the maximum size authorized under Section 212.207 for the portion and pay a reduced fee set in accordance with Section 212.208(i) if the dedication is less than the maximum size.

Sec. 212.205. REQUEST FOR PARKLAND DEDICATION DETERMINATION. (a) A landowner may make a written request to a municipality that the municipality make a timely determination of the dedication amount the municipality will impose under the municipality's parkland dedication requirements as applied to the landowner's property being considered for development.

(b) A municipality may make a reasonable written request to the landowner for additional information necessary to provide a determination under this section.

(c) A municipality shall respond in writing to a request made under Subsection (a) not later than the 30th day after the date the municipality receives a completed request. If the municipality fails to respond in accordance with this subsection, the municipality may not require a parkland dedication as a condition of approval of a proposed plan or application for property that is the subject of the request.

(d) A parkland dedication determination issued under this section:

(1) is a legally binding determination of the amount of the landowner's parkland dedication for the property that is the subject of the determination; and

(2) is applicable to the property that is the subject of the determination for a period that is the lesser of:

(A) two years; or

(B) the time between the date the determination is issued and the date a plan application is filed that uses or relies on the determination.

(e) A landowner may release in writing a municipality from the requirements of this section.

Sec. 212.206. PARKLAND DEDICATION AUTHORITY LIMITED TO RESIDENTIAL USE. (a) A municipality may not require a parkland dedication or impose a parkland dedication fee instead of a parkland dedication for land that is not proposed for residential use under a plan application.

(b) If a plan application submitted to a municipality proposes development of the land subject to the application that includes both residential and nonresidential uses, the municipality shall determine the amount of a parkland dedication based only on the portion of the land proposed for residential use.

Sec. 212.207. LIMITATION ON PARKLAND DEDICATION AMOUNT. A municipality may not require a landowner to dedicate as parkland under this subchapter more than 10 percent, without adjustment or disqualification for impairment, of the gross site area of the land subject to a plan application.

Sec. 212.208. DETERMINATION OF FEES. (a) For purposes of determining the amount of a fee imposed under this section, the governing body of a municipality, after providing at least 30 days' public notice and holding a public hearing, shall by official action designate all territory within its municipal boundaries as a suburban area, urban area, or central business district area. The governing body may use the same designation for multiple areas in the municipality. The governing body may amend a designation only during the adoption or amendment of a municipal comprehensive plan under Chapter 213.

(b) Not later than the 10th day after the date the municipality designates its territory under Subsection (a), the municipality shall notify each appraisal district in which the municipality is wholly or partly located of the designation.

(c) Once every 10 years, each appraisal district in which the municipality is wholly or partly located shall calculate and provide to the municipality the average land value for each area or portion of an area designated by the municipality under Subsection (a) that is located in the district.

(d) If multiple appraisal districts calculate an average land value for different portions of an area designated under Subsection (a), the municipality shall determine the area's total average land value by:

(1) multiplying each district's calculated value for the portion located in the district by the percentage, expressed as a fraction, that the portion is to the total area; and

(2) adding the resulting amounts.

(e) In each year other than the year in which an appraisal district calculates average land values under Subsection (c), a municipality shall calculate the average land value for each area designated under Subsection (a) by multiplying the previous year's average land value for the area by the final consumer price index of the previous year.

(f) A municipality shall set the municipality's dwelling unit factor, which reflects the number of parkland acres for each dwelling unit proposed by a plan application. The factor may not be more than:

(1) .01 for single-family dwelling units;

(2) .005 for multi-family dwelling units; and

(3) .004 for hotel or motel dwelling units.

(g) A municipality shall set the municipality's density factor for each area designated by the municipality under Subsection (a). The density factor may not be less than:

(1) one for the suburban area;

(2) four for the urban area; and

(3) 40 for the central business district area.

(h) A municipality shall determine the amount of a fee imposed under Section 212.204(1) for land subject to a plan application by:

(1) adding, as appropriate:

(A) the product of the number of single-family dwelling units proposed by the plan by the dwelling unit factor prescribed by Subsection (f)(1);

(B) the product of the number of multi-family dwelling units proposed by the plan by the dwelling unit factor prescribed by Subsection (f)(2); and

(C) the product of the number of hotel and motel dwelling units proposed by the plan by the dwelling unit factor prescribed by Subsection (f)(3);

(2) multiplying the sum calculated under Subdivision (1) by the average land value for the area in which the land is located; and

(3) dividing the product calculated under Subdivision (2) by the applicable density factor.

(i) A municipality shall determine the amount of a fee imposed under Section 212.204(2) for land subject to a plan application by:

(1) calculating the amount of the fee for the land under Subsection (h); and

(2) subtracting from the amount calculated under Subdivision (1) the product of the land value applicable to the land and the number of acres dedicated.

(j) If a calculation made under Subsection (i) results in a negative number, the applicable landowner is entitled to receive from the applicable municipality the amount equal to the positive difference between the calculated amount and zero. The municipality shall pay that amount to the landowner at the time of transfer of fee simple title or the recording of the easement.

Sec. 212.209. COLLECTION OF FEES. A municipality shall provide a landowner a written determination of fees owed under this subchapter before approving a plan application but may only collect a fee authorized under this subchapter as a precondition to the issuance of a final certificate of occupancy.

Sec. 212.210. FEE USE. A municipality may use a fee collected under this subchapter only for parkland acquisition, development, maintenance, or repair or other park purposes:

(1) within its municipal boundaries; or

(2) outside its municipal boundaries when partnering with one or more other political subdivisions.

Sec. 212.211. APPEAL. (a) A landowner may appeal a determination made by a municipal department, board, or commission regarding any element of a parkland dedication requirement, including amount, orientation, or suitability, as that element applies to the landowner's property, to the municipal planning commission or, if the municipality has no planning commission, the governing body of the municipality.

(b) A landowner may appeal a municipal planning commission's determination under Subsection (a) to the governing body of the municipality.

(c) In an appeal under this section, a municipal planning commission or governing body of a municipality may uphold, reverse, or modify a parkland dedication requirement as applied to the landowner making the appeal.

(d) A municipal planning commission or governing body of a municipality shall uphold, reverse, or modify a parkland dedication requirement that is the subject of an appeal not later than the 60th day after the date the appeal is filed with the commission or governing body. If the commission or governing body fails to act in accordance with this subsection, the parkland dedication requirement is considered reversed.

SECTION 2. (a) Not later than December 1, 2023, each municipality to which Subchapter H, Chapter 212, Local Government Code, as added by this Act, applies shall:

(1) effective January 1, 2024:

(A) designate the areas of the municipality as required by Section 212.208(a), Local Government Code, as added by this Act; and

(B) set the municipality's dwelling unit and density factors, as required by Sections 212.208(f) and (g), Local Government Code, as added by this Act; and

(2) provide to each appraisal district in which the municipality is wholly or partly located the location of each area designated under Subdivision (1)(A) of this subsection in a manner sufficient to allow the appraisal district to make the calculations required by Subsection (b) of this section.

(b) Not later than January 1, 2024, each appraisal district that appraises property located in a municipality described by Subsection (a) of this section shall calculate and provide to the municipality the average land values as required by Section 212.208(c), Local Government Code, as added by this Act.

SECTION 3. Subchapter H, Chapter 212, Local Government Code, as added by this Act, applies only to a plan application filed on or after January 1, 2024.

SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2023.