Relating to the imposition by a municipality of a moratorium on property development in certain circumstances, the official text

H.B. No. 2559

AN ACT

relating to the imposition by a municipality of a moratorium on

property development in certain circumstances.

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

SECTION 1. Sections 212.134(b), (c), and (f), Local

Government Code, are amended to read as follows:

(b) A public hearing must provide municipal residents and

affected parties an opportunity to be heard. The municipality

shall, not later than the 30th day before the date of a hearing:

(1) [must] publish notice of the time and place of the

[a] hearing in a newspaper of general circulation in the

municipality; and

(2) send notice of the hearing by certified mail to any

person who has given written notice by certified or registered mail

to the municipal secretary requesting notice of the hearing within

two years preceding the date of adoption of the ordinance or

resolution setting the public hearing [on the fourth day before the

date of the hearing].

(c) The governing body of a municipality shall hold two

public hearings on a moratorium on property development proposed to

be adopted under this subchapter. The governing body may not hold

the second public hearing before the 30th day after the date of the

first public hearing [Beginning on the fifth business day after the

date a notice is published under Subsection (b), a temporary

moratorium takes effect. During the period of the temporary

moratorium, a municipality may stop accepting permits,

authorizations, and approvals necessary for the subdivision of,

site planning of, or construction on real property].

(f) Not later than the 12th day [Within 12 days] after the

date of the second [first] public hearing, the governing body of the

municipality shall begin [make] a final determination on the

imposition of a moratorium by giving the ordinance imposing the

moratorium at least two readings that are not less than 28 days

apart. The ordinance must receive the affirmative vote of at least

three-fourths of all members of the governing body on final reading

in order to take effect. [Before an ordinance adopting a moratorium

may be imposed, the ordinance must be given at least two readings by

the governing body of the municipality. The readings must be

separated by at least four days.] If the governing body

[municipality] fails to adopt an ordinance imposing a moratorium

within the period prescribed by this subsection, the municipality

may not adopt the [an] ordinance [imposing a moratorium may not be

adopted, and the temporary moratorium imposed under Subsection (c)

expires].

SECTION 2. Section 212.1362, Local Government Code, is

amended to read as follows:

Sec. 212.1362. EXPIRATION OF MORATORIUM [ON COMMERCIAL

PROPERTY IN CERTAIN CIRCUMSTANCES]; EXTENSION. (a) A moratorium

[on commercial property] adopted under this subchapter [Section

212.1352] expires on the 90th day after the date the moratorium is

adopted unless the governing body of the municipality extends the

moratorium by:

(1) holding a public hearing on the proposed extension

of the moratorium; and

(2) adopting written findings that:

(A) identify the problem requiring the need for

extending the moratorium;

(B) describe the reasonable progress made to

alleviate the problem;

(C) specify a definite duration for the renewal

period of the moratorium; and

(D) include a summary of evidence demonstrating

that the problem will be resolved within the extended duration of

the moratorium.

(b) A municipality may not adopt a moratorium [on commercial

property] under this subchapter:

(1) [Section 212.1352] that exceeds an aggregate of

180 days; or

(2) [. A municipality may not adopt a moratorium on

commercial property under Section 212.1352] before the second

anniversary of the expiration date of a previous moratorium if the

subsequent moratorium addresses the same harm, affects the same

type of [commercial] property, or affects the same geographical

area identified by the previous moratorium.

SECTION 3. The following provisions of the Local Government

Code are repealed:

(1) Sections 212.134(d) and (e); and

(2) Section 212.136.

SECTION 4. This Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 2559 was passed by the House on April

29, 2025, by the following vote: Yeas 127, Nays 17, 2 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 2559 was passed by the Senate on May

19, 2025, by the following vote: Yeas 26, Nays 5.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor