HB456INTRODUCED
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O7KTMJ-1
By Representative Cole (N & P)
RFD: Madison County Legislation
First Read: 11-May-23
2023 Regular Session
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6 O7KTMJ-1 03/09/2023 JC (L)JC 2023-518
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A BILL
TO BE ENTITLED
AN ACT
Relating to Madison County and its municipalities; to
provide for an impact fee to be collected by the county and
its municipalities to offset the costs of expanding public
infrastructure required by new development.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. For the purposes of this act, the following
words have the following meanings:
(1) COUNTY. Madison County.
(2) GOVERNMENTAL INFRASTRUCTURE. Any facilities,
systems, or services that are owned and operated by or on
behalf of a political subdivision for any of the following
purposes:
a. Storm water, drainage, and flood control.
b. Roads and bridges.
c. Capital expenditures related to law enforcement and
public safety, fire protection, emergency medical services,
public park and recreational facilities, and public schools.
d. Maintenance and upkeep of facilities or resurfacing
of roadways where needed because of the impact of new
development.
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(3) IMPACT FEE. A charge or assessment imposed by a
political subdivision against new development in order to
generate revenue for funding or recouping the costs of
governmental infrastructure necessitated by and attributable
directly to the new development. The term includes amortized
charges, lump-sum charges, capital recovery fees,
contributions in aid of construction, and any other similar
fee that functions as described by this definition. The term
may also include dedication of land for public parks or
payments made in lieu of the dedication to serve park needs.
The term does not include any of the following:
a. Lot or acreage fees to be placed in trust funds for
the purpose of reimbursing developers for oversizing or
constructing water or sewer mains or lines.
b. Other pro rata fees for reimbursement of water or
sewer mains or lines extended by the political subdivision.
(4) NEW DEVELOPMENT. Any of the following that increase
the demands on governmental infrastructure:
a. The subdivision of land.
b. The construction, reconstruction, redevelopment,
conversion, structural alteration, relocation, or enlargement
of any structure.
c. Any use or extension of the use of land.
(5) POLITICAL SUBDIVISION. The county or municipality
within the county.
(6) ROADS AND BRIDGES. Any public highway, road, or
bridge in a political subdivision, together with all necessary
appurtenances. The term includes a political subdivision's
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share of costs for roadways and associated improvements
designated on the federal or state highway system, including
local matching funds and costs related to utility line
relocation and the establishment of curbs, gutters, sidewalks,
drainage appurtenances, and rights-of-way.
(7) SERVICE UNIT. The unit as determined by the
political subdivision of new development that increases
demands on governmental infrastructure against which the
political subdivision imposes the impact fee. The term may
include a unit of land, such as a lot, or an improvement.
Section 2. (a) The Madison County Commission, on land
outside the corporate limits of a municipality, or a
municipality, on land within the municipality's corporate
limits, may only enact or impose an impact fee in accordance
with this act. An impact fee may be imposed only for
governmental infrastructure and costs directly related
thereto.
(b) A municipality may contract with the Madison County
Commission to provide governmental infrastructure, except
roadway facilities, to an area outside its corporate limits.
Section 3. (a)(1) An impact fee per service unit of new
development may be set by the political subdivision not to
exceed one percent of the estimated fair and reasonable market
value of the new development after completion.
(2) The estimated fair and reasonable market value of a
new development for the purpose of setting an impact fee
pursuant to subdivision (1) shall be based on the amount set
forth for the issuance of the building permit plus the value
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of the land or an estimated fair and reasonable market value
based on information submitted by the developer. If the
political subdivision does not agree with the estimated fair
and reasonable market value submitted by the developer, the
political subdivision may obtain an appraisal by a licensed
appraiser. If the value of the development as submitted by the
developer and the value as set forth in the appraisal obtained
by the political subdivision are within 10 percent of each
other, the two values shall be averaged to determine the
estimated fair and reasonable market value of the development.
If the two values are not within 10 percent of each other, the
developer and the political subdivision shall together select
a licensed appraiser to submit an appraisal that would be
binding on both parties.
(b) An impact fee may be levied only once on a service
unit.
(c) A political subdivision, by ordinance, may provide
for credits against any impact fees for expenditures for
governmental infrastructure by the developer of a new
development and may provide credits based on the demonstrated
public benefit of the new development. The political
subdivision may provide the procedure for the approval of any
credit against any impact fees on the new development as
provided in this subsection.
(d) The county may elect to share revenues from the
collection of impact fees with a municipality when the
revenues are generated in the police jurisdiction of the
municipality. Any revenues shared pursuant to this subsection
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shall be used by the municipality in accordance with this act.
Section 4. (a) A political subdivision may collect
impact fees at either the time of the transfer of a service
unit, at the time of connection to the political subdivision's
water or sewer system, or at the time the political
subdivision issues either the building permit or the
certificate of occupancy.
(b) Any impact fees assessed pursuant to this act shall
be paid by the developer and shall be a lien on the property.
Section 5. (a) Prior to the adoption of an impact fee
for the political subdivision, the political subdivision shall
hold a public hearing on the governmental infrastructure needs
as a result of new development. Notice of the public hearing
shall be published at least once in a newspaper of general
circulation in the political subdivision and on the website of
the political subdivision not less than two weeks prior to the
public hearing.
(b) Action on the resolution or ordinance setting the
impact fee in the political subdivision may be taken at a
regularly scheduled meeting of the governing body of the
political subdivision not less than two weeks after the public
hearing. The political subdivision shall make a specific
finding that the impact fee will benefit the new development.
Section 6. Any impact fees collected within a political
subdivision shall be used only for governmental infrastructure
purposes. Any impact fees collected pursuant to this act shall
be expended or contracted to be expended within five years of
the collection of the fees unless the development or the
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expenditure or contracting for expenditure of the fees is
delayed by an Act of God or litigation. Any impact fee not
expended or contracted for within five years, unless subject
to an exception as provided in this act, shall be refunded to
the developer.
Section 7. This act shall become effective on the first
day of the third month following its passage and approval by
the Governor, or its otherwise becoming law.
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