S.B. No. 1202

	AN ACT
	relating to third-party review of property development documents
	and inspections of improvements related to those documents,
	including home backup power installations.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  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 247.0025 to read as
	follows:
	Sec. 247.0025.  THIRD-PARTY REVIEW OR INSPECTION FOR HOME
	BACKUP POWER INSTALLATIONS.  (a)  In this section, "home backup
	power installation" means an electric generating facility, an
	energy storage facility, a standby system, and any associated
	infrastructure and equipment intended to provide electrical power
	to a one- or two-family dwelling, regardless of whether the
	facility or system is capable of participating in a wholesale
	electric market, that is connected at 600 volts or less.
	(b)  This section does not limit the authority of:
	(1)  an electric utility to implement the utility's
	tariff; or
	(2)  an electric cooperative or a municipally owned
	utility to enforce interconnection and service policies.
	(c)  Notwithstanding Section 247.002:
	(1)  the following persons, other than a person
	described by Section 247.002(a)(1), may review a development
	document required by a regulatory authority to install a home
	backup power installation without having to submit the document to
	the authority for review:
	(A)  a person authorized to review a development
	document under Section 247.002(a);
	(B)  an electrical inspector as defined in Section
	1305.002, Occupations Code; or
	(C)  a master electrician described by Section
	1305.153, Occupations Code, who is licensed under Subchapter D,
	Chapter 1305 of that code; and
	(2)  the following persons, other than a person
	described by Section 247.002(b)(1), may conduct a development
	inspection required by a regulatory authority to install a home
	backup power installation without having to request the inspection
	from the authority:
	(A)  a person authorized to conduct a development
	inspection under Section 247.002(b);
	(B)  an electrical inspector as defined in Section
	1305.002, Occupations Code; or
	(C)  a master electrician described by Section
	1305.153, Occupations Code, who is licensed under Subchapter D,
	Chapter 1305 of that code.
	(d)  A regulatory authority shall:
	(1)  post on the 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 this section; or
	(2)  provide on request an electronic copy of the
	information described by Subdivision (1) not later than the second
	business day after the date the regulatory authority receives the
	request.
	(e)  A person who reviews a development document or conducts
	a development inspection under this section may:
	(1)  use software designed to automate the required
	review without that person performing additional manual review; and
	(2)  rely on the accuracy and completeness of the
	information provided by a regulatory authority under Subsection
	(d).
	(f)  If a regulatory authority has not posted on the
	authority's Internet website or provided upon request information
	as required under Subsection (d), a person reviewing a development
	document or conducting a development inspection of a home backup
	power installation under this section may use:
	(1)  the applicable building code standards under
	Section 214.212 for a dwelling located in a municipality; or
	(2)  the applicable building code standards under
	Section 233.153 for a dwelling located in the unincorporated area
	of a county.
	(g)  A regulatory authority that has not posted or provided a
	fee schedule as required by Subsection (d) may not charge a fee for
	issuance of an approval, permit, or certification for a home backup
	power installation under this section.
	(h)  A person who reviews a development document or conducts
	a development inspection shall 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 not
	later than the date the person provides notice to the regulatory
	authority under Section 247.004(a)(2).
	(i)  A regulatory authority shall issue each approval,
	permit, or certification applicable to a review of a development
	document or development inspection conducted under this section not
	later than the third business day after the date the authority
	receives the notice prescribed by Section 247.004(a) that approves
	the document or inspection.
	(j)  A person may begin construction of a home backup power
	installation on submission of the notice prescribed by Section
	247.004(a) that approves the development document.
	(k)  A regulatory authority is not liable for a review or
	inspection conducted by a person under this section.
	(l)  A person reviewing a development document or conducting
	a development inspection under this section is liable for damages
	resulting from the person's negligent acts or omissions in
	conducting the review or inspection.
	SECTION 2.  Section 247.003, 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. 247.003.  ADDITIONAL FEE PROHIBITED.  A regulatory
	authority may not impose a fee related to the review of a
	development document or the inspection of an improvement conducted
	under this chapter [Section 247.002].
	SECTION 3.  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 this chapter [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; 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 prescribe a reasonable
	format for the notice required under Subsection (a).  If the
	regulatory authority has not prescribed a format, a person who
	reviews a development document or conducts a development inspection
	under this chapter may provide notice by e-mail to the e-mail
	address of the regulatory authority.
	(c)  The format prescribed by a regulatory authority under
	Subsection (b) may not limit a person who reviews a development
	document or conducts a development inspection under this chapter
	from using software designed to automate the review or approval
	process without that person performing additional manual review.
	SECTION 4.  This Act takes effect September 1, 2025.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1202 passed the Senate on
	March 31, 2025, by the following vote: Yeas 31, Nays 0; and that
	the Senate concurred in House amendments on May 26, 2025, by the
	following vote: Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1202 passed the House, with
	amendments, on May 23, 2025, by the following vote: Yeas 128,
	Nays 7, two present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor