AL
Alabama House Bill HB456

Alabama 2023 Regular Session

Alabama House Bill HB456 Compare Versions

Only one version of the bill is available at this time.
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11 HB456INTRODUCED
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33 O7KTMJ-1
44 By Representative Cole (N & P)
55 RFD: Madison County Legislation
66 First Read: 11-May-23
77 2023 Regular Session
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1313 6 O7KTMJ-1 03/09/2023 JC (L)JC 2023-518
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1515 A BILL
1616 TO BE ENTITLED
1717 AN ACT
1818 Relating to Madison County and its municipalities; to
1919 provide for an impact fee to be collected by the county and
2020 its municipalities to offset the costs of expanding public
2121 infrastructure required by new development.
2222 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
2323 Section 1. For the purposes of this act, the following
2424 words have the following meanings:
2525 (1) COUNTY. Madison County.
2626 (2) GOVERNMENTAL INFRASTRUCTURE. Any facilities,
2727 systems, or services that are owned and operated by or on
2828 behalf of a political subdivision for any of the following
2929 purposes:
3030 a. Storm water, drainage, and flood control.
3131 b. Roads and bridges.
3232 c. Capital expenditures related to law enforcement and
3333 public safety, fire protection, emergency medical services,
3434 public park and recreational facilities, and public schools.
3535 d. Maintenance and upkeep of facilities or resurfacing
3636 of roadways where needed because of the impact of new
3737 development.
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6767 (3) IMPACT FEE. A charge or assessment imposed by a
6868 political subdivision against new development in order to
6969 generate revenue for funding or recouping the costs of
7070 governmental infrastructure necessitated by and attributable
7171 directly to the new development. The term includes amortized
7272 charges, lump-sum charges, capital recovery fees,
7373 contributions in aid of construction, and any other similar
7474 fee that functions as described by this definition. The term
7575 may also include dedication of land for public parks or
7676 payments made in lieu of the dedication to serve park needs.
7777 The term does not include any of the following:
7878 a. Lot or acreage fees to be placed in trust funds for
7979 the purpose of reimbursing developers for oversizing or
8080 constructing water or sewer mains or lines.
8181 b. Other pro rata fees for reimbursement of water or
8282 sewer mains or lines extended by the political subdivision.
8383 (4) NEW DEVELOPMENT. Any of the following that increase
8484 the demands on governmental infrastructure:
8585 a. The subdivision of land.
8686 b. The construction, reconstruction, redevelopment,
8787 conversion, structural alteration, relocation, or enlargement
8888 of any structure.
8989 c. Any use or extension of the use of land.
9090 (5) POLITICAL SUBDIVISION. The county or municipality
9191 within the county.
9292 (6) ROADS AND BRIDGES. Any public highway, road, or
9393 bridge in a political subdivision, together with all necessary
9494 appurtenances. The term includes a political subdivision's
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124124 share of costs for roadways and associated improvements
125125 designated on the federal or state highway system, including
126126 local matching funds and costs related to utility line
127127 relocation and the establishment of curbs, gutters, sidewalks,
128128 drainage appurtenances, and rights-of-way.
129129 (7) SERVICE UNIT. The unit as determined by the
130130 political subdivision of new development that increases
131131 demands on governmental infrastructure against which the
132132 political subdivision imposes the impact fee. The term may
133133 include a unit of land, such as a lot, or an improvement.
134134 Section 2. (a) The Madison County Commission, on land
135135 outside the corporate limits of a municipality, or a
136136 municipality, on land within the municipality's corporate
137137 limits, may only enact or impose an impact fee in accordance
138138 with this act. An impact fee may be imposed only for
139139 governmental infrastructure and costs directly related
140140 thereto.
141141 (b) A municipality may contract with the Madison County
142142 Commission to provide governmental infrastructure, except
143143 roadway facilities, to an area outside its corporate limits.
144144 Section 3. (a)(1) An impact fee per service unit of new
145145 development may be set by the political subdivision not to
146146 exceed one percent of the estimated fair and reasonable market
147147 value of the new development after completion.
148148 (2) The estimated fair and reasonable market value of a
149149 new development for the purpose of setting an impact fee
150150 pursuant to subdivision (1) shall be based on the amount set
151151 forth for the issuance of the building permit plus the value
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181181 of the land or an estimated fair and reasonable market value
182182 based on information submitted by the developer. If the
183183 political subdivision does not agree with the estimated fair
184184 and reasonable market value submitted by the developer, the
185185 political subdivision may obtain an appraisal by a licensed
186186 appraiser. If the value of the development as submitted by the
187187 developer and the value as set forth in the appraisal obtained
188188 by the political subdivision are within 10 percent of each
189189 other, the two values shall be averaged to determine the
190190 estimated fair and reasonable market value of the development.
191191 If the two values are not within 10 percent of each other, the
192192 developer and the political subdivision shall together select
193193 a licensed appraiser to submit an appraisal that would be
194194 binding on both parties.
195195 (b) An impact fee may be levied only once on a service
196196 unit.
197197 (c) A political subdivision, by ordinance, may provide
198198 for credits against any impact fees for expenditures for
199199 governmental infrastructure by the developer of a new
200200 development and may provide credits based on the demonstrated
201201 public benefit of the new development. The political
202202 subdivision may provide the procedure for the approval of any
203203 credit against any impact fees on the new development as
204204 provided in this subsection.
205205 (d) The county may elect to share revenues from the
206206 collection of impact fees with a municipality when the
207207 revenues are generated in the police jurisdiction of the
208208 municipality. Any revenues shared pursuant to this subsection
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238238 shall be used by the municipality in accordance with this act.
239239 Section 4. (a) A political subdivision may collect
240240 impact fees at either the time of the transfer of a service
241241 unit, at the time of connection to the political subdivision's
242242 water or sewer system, or at the time the political
243243 subdivision issues either the building permit or the
244244 certificate of occupancy.
245245 (b) Any impact fees assessed pursuant to this act shall
246246 be paid by the developer and shall be a lien on the property.
247247 Section 5. (a) Prior to the adoption of an impact fee
248248 for the political subdivision, the political subdivision shall
249249 hold a public hearing on the governmental infrastructure needs
250250 as a result of new development. Notice of the public hearing
251251 shall be published at least once in a newspaper of general
252252 circulation in the political subdivision and on the website of
253253 the political subdivision not less than two weeks prior to the
254254 public hearing.
255255 (b) Action on the resolution or ordinance setting the
256256 impact fee in the political subdivision may be taken at a
257257 regularly scheduled meeting of the governing body of the
258258 political subdivision not less than two weeks after the public
259259 hearing. The political subdivision shall make a specific
260260 finding that the impact fee will benefit the new development.
261261 Section 6. Any impact fees collected within a political
262262 subdivision shall be used only for governmental infrastructure
263263 purposes. Any impact fees collected pursuant to this act shall
264264 be expended or contracted to be expended within five years of
265265 the collection of the fees unless the development or the
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295295 expenditure or contracting for expenditure of the fees is
296296 delayed by an Act of God or litigation. Any impact fee not
297297 expended or contracted for within five years, unless subject
298298 to an exception as provided in this act, shall be refunded to
299299 the developer.
300300 Section 7. This act shall become effective on the first
301301 day of the third month following its passage and approval by
302302 the Governor, or its otherwise becoming law.
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