Page 18 - BB_Aug_2017

GOVERNMENT AFFAIRS LEGISLATIVE UPDATE

On July 18, the Texas Legislature began a Special Session, called for by Gov. Greg Abbott,
with a laundry list of priorities that Abbot felt were overlooked or not finalized during
the regular biennial session. In addition to school choice, teacher salaries, state and
local government spending, healthcare related issues, school finance and gendered
bathroom use in public schools and government buildings, Gov. Abbot singled out
multiple issues of importance to the construction and development community:

Legislation preventing local governments
from imposing new regulations that did
not exist at the start of a project.
This has been a priority for Texas builders for some
time, and has won support recently from the business and legal community. Many times, cities impose new
regulations, permit requirements, code amendments and other regulatory burdens that affect our industry. The
idea that a project retains the regulatory climate at the time it is started, or vested rights, has gained strength over
time in Texas. In 2017, the Texas Legislature passed HB 1704, which allows for developers to collect attorney’s fees
when litigating against cities who change the rules mid-project. In the past, cities have relied on large budgets
backed by taxing authority to drag litigation out until a developer simply complies with the new rules. However,
this is often costly to a project and can create serious delays or financial strain. Gov. Abbott has indicated that he
would like to see Texas strengthen adherence to the idea of vested rights by not allowing governments to alter
rules once a project has begun. The idea is to avoid the courts and simply prohibit cities from abusing this power.
The Legislature has a good chance of strengthening these laws during the Special Session.

Legislation protecting the private
property rights of land owners.
Gov. Abbott argues that local government ordinances
have become increasingly restrictive over time, and has challenged the Texas Legislature to address specific land
use issues. This priority includes curbing local tree ordinances, which have spread throughout Texas as the issue
has become more political. In 2017, the Texas Association of Builders sponsored SB 744 as a compromise between
developers and cities. The bill would require certain credits be granted for planting of new trees on developed lots.
Gov. Abbott ultimately vetoed this bill, arguing that it did not go far enough to protect homeowners in cities like
Austin, where removing a tree from an established lot incurs a lengthy review and permitting process. This priority
has an uncertain future during the Special Session, as many legislators on both sides of the aisle prefer to avoid
the radioactive politics surrounding trees.

Legislation reforming the laws governing
ad valorem property taxes.
Tax reform has been a priority of Gov. Abbott since his
election in 2014. According to the Tax Foundation, a non-partisan economic research organization, Texas has
the 14th highest property taxes in the nation. Local governments argue that booming populations and growth
require more services. Property owners argue that tax increases are hidden by wild variations in appraisals, while
cities claim no increase to the actual tax rates. Additionally, Gov. Abbott has expressed interest in capping the
growth of property taxes from year to year. Another approach suggested is requiring balanced budgets for
local governments and capping the growth of local government budgets by a factor of population increase
and inflation. While there is an increasing interest in appraisal reform in Texas and finding tax relief for vulnerable
populations, this priority faces an uphill battle during the Special Session in 2017.

18 AUGUST 2017 | GREATER SAN ANTONIO BUILDERS ASSOCIATION