HBA-ALS C.S.H.B. 1704 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 1704 By: Kuempel Land & Resource Management 4/5/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE In 1997, Subchapter I, Chapter 481, Government Code (State and Local Permits) was inadvertently repealed by the 75th Legislature. As a result, current law allows a political subdivision to apply changes in its regulations and permit requirements retroactively. The purpose of this bill is to provide for the review and approval of certain permits by a political subdivision to ensure that residential subdivisions and other projects can be completed under the local developmental regulations that are in effect at the time the project is initiated. C.S.H.B. 1704 reenacts the portion of former Subchapter I, Chapter 481, Government Code, that governed the review and approval of project permits issued by a municipality or other local governmental entity. C.S.H.B.1704 requires regulatory agencies (defined as the governing body of, or a bureau, department, division, board, commission, or other agency of, a political subdivision) to consider uniform factors and follow uniform requirements relating to the approval and duration of permits, respectively. This bill applies to all projects commenced after or in progress on September 1, 1997, which is the date that the original law was repealed, but provides for limited exemptions from the uniformity requirements for permits that are at least two years old. C.S.H.B. 1704 provides that its provisions may only be enforced through mandamus or declaratory or injunctive relief. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. FINDINGS; INTENT. Sets forth legislative findings relating to the former Subchapter I, Chapter 481, Government Code (State and Local Permits), which was repealed by Section 51(b), Chapter 1041, Acts of the 75th Legislature, Regular Session, 1997. Sets forth legislative intent relating to this Act. SECTION 2. AMENDMENT. Amends Subtitle C, Title 7, Local Government Code, by adding Chapter 245, as follows: CHAPTER 245. ISSUANCE OF LOCAL PERMITS Sec. 245.001. DEFINITIONS. Defines "permit," "political subdivision," "project," and "regulatory agency." Sec. 245.002. UNIFORMITY OF REQUIREMENTS. (a) Requires each regulatory agency to consider the approval, disapproval, or conditional approval of an application for a permit solely on the basis of orders, regulations, ordinances, rules, expiration dates, or properly adopted requirements that are in effect at the time the original permit application is filed. (b) Requires that if a series of permits is required for a project, the orders, regulations, ordinances, rules, expiration dates, or properly adopted requirements in effect at the time the original permit application is filed in that series are to be the sole basis for consideration of all subsequent required permits. Provides that all required permits are considered to be a single series of permits, and that preliminary plans and related subdivision, plats, site plans, and other developmental permits for land covered by the preliminary plans or subdivision plats are considered collectively to be one series of permits for a project. (c) Prohibits a regulatory agency from shortening the duration of a required permit once the project application is filed. (d) Authorizes a permit holder to take advantage of recorded subdivision plat notes, recorded restrictive covenants required by a regulatory agency, or a change to an agency's laws, rules, regulations, or ordinances that enhance or protect the project, including changes that lengthen the duration of the permit after the date the permit application was made, without forfeiting any rights under this chapter, notwithstanding any contrary provision in this chapter. Sec. 245.003. APPLICABILITY OF CHAPTER. Provides that this chapter only applies to a project in progress on or commenced after September 1, 1997. Provides that for purposes of this chapter a project was in progress on September 1, 1997, if: (1) before September 1, 1997, a regulatory agency approved or issued one or more permits for the project or an application for the project was filed with a regulatory agency, and (2) on or after September 1, 1997, a regulatory agency enacts or imposes: an order, regulation, ordinance, or rule that retroactively shortens a permit's duration for the project; a deadline for obtaining a permit required to continue or complete the project that did not exist before September 1, 1997; or a requirement for the project that was not applicable to the project before September 1, 1997. Sec. 245.004. EXEMPTIONS. Provides that this chapter is not applicable to certain permits that are at least two years old and issued under specified regulations. Sec. 245.005. ENFORCEMENT OF CHAPTER. Establishes enforcement of this chapter only through mandamus or declaratory or injunctive relief. SECTION 3. EFFECT OF PRIOR LAW. Prohibits the repeal of Subchapter I, Chapter 484, Government Code, and actions taken by a regulatory agency for the issuance of a permits after that repeal from causing or requiring the expiration or termination of a project or permit covered by Section 2 of this Act. Provides that an action by a regulatory agency in violation of this section is void to the extent necessary to give effect to this section. (b) Provides that this Act does not affect final court judgments or pending litigation involving an interpretation of Subchapter I, Chapter 481, Government Code, as it existed before its repeal by the 75th Legislature. SECTION 4. EMERGENCY. Emergency clause. Effective date: upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute modifies the original in SECTION 2 (proposed Section 245.002, Local Government Code) by adding that a permit holder is authorized to take advantage of recorded subdivision plat notes and recorded restrictive covenants required by a regulatory agency. The substitute modifies the original in SECTION 2 (proposed Section 245.003, Local Government Code) by changing the conditions under which a project is considered to have been in progress on September 1, 1997. In the substitute, a project is considered to be in progress on September 1, 1997, if one or more permits were approved or an application for a permit was filed before that date, and on or after September 1, 1997, the regulatory agency takes an action that shortens the duration of the permit, creates a new deadline for obtaining a permit, or adds a requirement for the project that did not exist before September 1, 1997. In the original, a project was considered to be in progress on September 1, 1997, if 50 percent or more of the project was finally platted or if substantial infrastructure was installed and the project was not complete on September 1, 1997. The substitute deletes language from the original which provided that a project is commenced on or after September 1, 1997, if an application for the first permit is filed with a regulatory agency on or after September 1, 1997. The substitute modifies the original in SECTION 3 by deleting language relating to projects or permits that would not have expired or been terminated had Subchapter I, Chapter 481, Government Code, not been repealed. The substitute merely prohibits the repeal of that subchapter of the Government Code and any actions taken by a regulatory agency after that repeal from causing the expiration or termination of a project or permit to which Section 2 of this Act applies.