88R6854 SCL-D     By: Hughes S.B. No. 558       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.