(a) Not later than the 60th day after the date of receiving a copy of the application from the commissioner, a state or local agency notified under § 52.006 shall report in writing to the commissioner the agency’s determination of whether the application complies with laws, including rules and regulations, administered by the agency.
(b) If an agency determines that the application does not comply with laws administered by that agency, the agency shall include in the report:
(1) a detailed description of the manner in which the application does not comply; and
(2) recommended changes that would enable the application to comply with those laws.

(c) The commissioner shall send a copy of the agency’s report to the applicant.
(d) An applicant is entitled to:
(1) respond in writing to the agency that issued the report; and
(2) request and receive a public hearing before the commissioner on the provisions of the application that an agency has determined do not comply with laws administered by that agency.
(e) If an agency fails to file a report within the period prescribed by Subsection (a), the application is presumed to comply with the laws administered by that agency.