HB23 - Relating to the authority of certain persons to obtain third-party review of plats and property development plans, permits, and similar documents, and the inspection of an improvement related to such a document.

      By: Harris, Hunter, Gates, Metcalf, et al. H.B. No. 23       A BILL TO BE ENTITLED   AN ACT   relating to the authority of certain persons to obtain third-party   review of plats and property development plans, permits, and   similar documents, and the inspection of an improvement related to   such a document.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 247.001(4), Local Government Code, as   added by Chapter 654 (H.B. 14), Acts of the 88th Legislature,   Regular Session, 2023, is amended to read as follows:                (4)  "Plan" means a subdivision development plan,   including a subdivision plan, subdivision construction plan, land   development application, and site development plan [ has the meaning   assigned by Section 212.001 ].          SECTION 2.  Chapter 247, Local Government Code, as added by   Chapter 654 (H.B. 14), Acts of the 88th Legislature, Regular   Session, 2023, is amended by adding Section 247.0015 to read as   follows:           Sec.   247.0015.     CONSTRUCTION OF CHAPTER.     This chapter may   not be construed to exempt an applicant or property owner from   compliance with:                 (1)     the requirements of Chapters 7 and 16, Water Code,   or health and safety requirements under state and federal law; or                 (2)     the requirements of the stormwater permitting   program under the national pollutant discharge elimination system   established by 33 U.S.C. Section 1342.          SECTION 3.  Section 247.002, Local Government Code, as added   by Chapter 654 (H.B. 14), Acts of the 88th Legislature, Regular   Session, 2023, is amended to read as follows:          Sec. 247.002.   OPTION FOR THIRD-PARTY REVIEW OR INSPECTION   [ REQUIRED ].  (a)   Notwithstanding any other law and except as   provided by Section 247.0021, an applicant for [ If a regulatory   authority does not approve, conditionally approve, or disapprove a   development document by the 15th day after the date prescribed by a   provision of this code for the approval, conditional approval, or   disapproval of the document, ] any required review of a development   [ the ] document may obtain review of the document from [ be performed   by ] a person:                (1)  other than:                      (A)  the applicant; or                      (B)  a person whose work is the subject of the   application; and                (2)  who is:                      (A)  employed by the regulatory authority to   review development documents;                      (B)  employed by another political subdivision to   review development documents, if the regulatory authority has   approved the person to review development documents; or                      (C)  an engineer :                             (i)   licensed under Chapter 1001,   Occupations Code ; and                             (ii)     competent in a branch of engineering   applicable to the development document and designated by the   engineer as an area of competency to the Texas Board of Professional   Engineers .          (b)   Notwithstanding any other law and except as provided by   Section 247.0021, an owner of land or an improvement to the land   that requires a development [ If a regulatory authority does not   conduct a required development inspection by the 15th day after the   date prescribed by a provision of this code for conducting the   inspection, the ] inspection may obtain the inspection from [ be   conducted by ] a person:                (1)  other than:                      (A)  the owner of the land or improvement to the   land that is the subject of the inspection; or                      (B)  a person whose work is the subject of the   inspection; and                (2)  who is:                      (A)  certified to inspect buildings by the   International Code Council;                      (B)  employed by the regulatory authority as a   building inspector;                      (C)  employed by another political subdivision as   a building inspector, if the regulatory authority has approved the   person to perform inspections; or                      (D)  an engineer :                             (i)   licensed under Chapter 1001,   Occupations Code ; and                             (ii)     competent in a branch of engineering   applicable to development inspection and designated by the engineer   as an area of competency to the Texas Board of Professional   Engineers .           (c)     Notwithstanding any other law and except as provided by   Subsection (d), an applicant or owner of land or an improvement to   land who uses a person to conduct a review or inspection under this   section may rely on the determinations made by the person, and any   permits and approvals issued based on those determinations are   binding on the regulatory authority.           (d)     A regulatory authority may rescind a development   document granted as the result of a review or development   inspection conducted by a person under Section 247.002 if the   review or inspection did not comply with this chapter or violated a   law, rule, standard, or other measure applicable to the regulatory   authority for the review or inspection. After the rescission, the   regulatory authority may prohibit a person from conducting another   review or inspection for the regulatory authority in accordance   with Section 247.007.           (e)     This section does not limit the authority of a   municipally owned utility, as that term is defined under Section   11.003, Utilities Code, to review development documents to ensure   the safe interconnection of electrical installations within the   utility's service area.          SECTION 4.  Chapter 247, Local Government Code, as added by   Chapter 654 (H.B. 14), Acts of the 88th Legislature, Regular   Session, 2023, is amended by adding Section 247.0021 to read as   follows:           Sec.   247.0021.     CERTIFICATE OF OCCUPANCY INSPECTION BY   REGULATORY AUTHORITY.     As the final approval required for a land   development or improvement, a regulatory authority may require and   conduct a development inspection as a condition to receive a   certificate of occupancy issued by the regulatory authority. If the   regulatory authority requires an inspection under this section, the   regulatory authority:                 (1)     shall conduct the inspection, make a final   determination on whether to issue a certificate of occupancy, issue   the certificate if approved, and notify the applicant of the   results of the determination not later than the 10th day after the   date the applicant requests the inspection; and                 (2)     except as provided by Section 247.002(d), may not   use the inspection to affect the validity of the review of a   development document or development inspection previously   conducted by a third party for the property that is the subject of   the inspection.          SECTION 5.  Section 247.004, Local Government Code, as added   by Chapter 654 (H.B. 14), Acts of the 88th Legislature, Regular   Session, 2023, is amended to read as follows:          Sec. 247.004.  THIRD-PARTY REQUIREMENTS.  (a)  A person who   reviews a development document or conducts a development inspection   under Section 247.002 shall:                (1)  review the document, conduct the inspection, and   take all other related actions in accordance with all applicable   provisions of law as if the person is the regulatory authority ; and                (2)  not later than the 15th day after the date the   person completes the review or inspection, provide notice to the   regulatory authority of the results of the review or inspection.          (b)  A regulatory authority may :                 (1)   prescribe a reasonable format for the notice   required under Subsection (a) ; and                 (2)     require a person who reviews a development   document or conducts a development inspection to provide to the   regulatory authority a copy of any development document or   inspection-related note or report the person creates as part of the   review or inspection .           (c)     A person who reviews a development document or conducts   a development inspection under Section 247.002 shall maintain   commercially reasonable professional liability insurance with a   minimum annual limit of $500,000 per occurrence and $1 million in   the aggregate and that names the regulatory authority and the   applicant as additional insureds.   The person shall provide a   certificate of the required insurance to the regulatory authority   before the person may commence a review or inspection under Section   247.002.          SECTION 6.  Chapter 247, Local Government Code, as added by   Chapter 654 (H.B. 14), Acts of the 88th Legislature, Regular   Session, 2023, is amended by adding Section 247.0043 to read as   follows:           Sec.   247.0043.     LIABILITY. (a)   A regulatory authority is   not liable for a review or inspection conducted by a person under   Section 247.002.           (b)     A person reviewing a development document or conducting   a development inspection under Section 247.002 is liable for   damages resulting from the person's acts or omissions in conducting   the review or inspection.          SECTION 7.  Chapter 247, Local Government Code, as added by   Chapter 654 (H.B. 14), Acts of the 88th Legislature, Regular   Session, 2023, is amended by adding Section 247.0047 to read as   follows:           Sec.   247.0047.     REQUIRED PROVISION OF NECESSARY   INFORMATION; RELIANCE.   (a)   A regulatory authority shall:                 (1)     post on the regulatory authority's Internet   website each law, rule, standard, fee schedule, and other document   necessary for a person to review a development document or conduct a   development inspection under Section 247.002; or                 (2)     provide an electronic copy of the information   described by Subdivision (1) on request not later than the second   business day after the date the request is made.           (b)     A person who reviews [Text truncated for display. Full text available on Congress.gov.]