CS/HB 665 2025 CODING: Words stricken are deletions; words underlined are additions. hb665-01-c1 Page 1 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S A bill to be entitled 1 An act relating to local government impact fees and 2 development permits and orders; amending s. 125.022, 3 F.S.; prohibiting a county from requiring an applicant 4 to take certain actions as a condition of processing 5 or issuing a development permit or developm ent order; 6 providing that any ordinance or regulation in conflict 7 is void and unenforceable; amending s. 163.3164, F.S.; 8 defining the term "plan -based methodology"; amending 9 s. 163.31801, F.S.; defining the term "extraordinary 10 circumstances"; requiring the completion of a 11 demonstrated-need study using a plan -based methodology 12 before the adoption of an impact fee increase which 13 expressly demonstrates certain extraordinary 14 circumstances; prohibiting increases in certain impact 15 fees unless specified extraordin ary circumstances are 16 demonstrated; prohibiting a local government from 17 increasing an impact fee rate under certain 18 circumstances; amending s. 166.033, F.S.; prohibiting 19 a municipality from requiring an applicant to take 20 certain actions as a condition of p rocessing or 21 issuing a development permit or development order; 22 providing that any ordinance or regulation in conflict 23 is void and unenforceable; amending s. 212.055, F.S.; 24 conforming a cross-reference; providing an effective 25 CS/HB 665 2025 CODING: Words stricken are deletions; words underlined are additions. hb665-01-c1 Page 2 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S date. 26 27 Be It Enacted by the Legislature of the State of Florida: 28 29 Section 1. Subsection (8) is added to section 125.022, 30 Florida Statutes, to read: 31 125.022 Development permits and orders. — 32 (8) A county may not as a condition of processing or 33 issuing any development permit o r development order require an 34 applicant to install a work of art, pay a fee for a work of art, 35 or reimburse the county for any costs that the county may incur 36 related to a work of art. Any ordinance or regulation in 37 conflict with this subsection is void a nd unenforceable. 38 Section 2. Subsections (39) through (54) of section 39 163.3164, Florida Statutes, are renumbered as subsections (40) 40 through (55), respectively, and a new subsection (39) is added 41 to that section to read: 42 163.3164 Community Planning A ct; definitions.—As used in 43 this act: 44 (39) "Plan-based methodology" means the use of the most 45 recent and localized data to project growth within a 46 jurisdiction over a 6 -year period and the anticipated capacity 47 impacts created by that projected growth, an d the creation of a 48 list of capital improvements or infrastructure as defined in s. 49 163.31801(3) to be constructed in a defined time period to 50 CS/HB 665 2025 CODING: Words stricken are deletions; words underlined are additions. hb665-01-c1 Page 3 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S mitigate those impacts as part of a new or updated impact fee 51 study. 52 Section 3. Paragraphs (a) and (b) of sub section (3) of 53 section 163.31801, Florida Statutes, are redesignated as 54 paragraphs (b) and (c), respectively, a new paragraph (a) is 55 added to that subsection, and paragraph (g) of subsection (6) of 56 that section is amended, to read: 57 163.31801 Impact fees; short title; intent; minimum 58 requirements; audits; challenges. — 59 (3) For purposes of this section, the term: 60 (a) "Extraordinary circumstances" means the measurable 61 effects of development which will require mitigation by the 62 affected local government an d which exceed the total of the 63 current adopted impact fee amount combined with any increase as 64 provided in paragraphs (6)(c), (d), and (e) in less than 4 65 years. 66 (6) A local government, school district, or special 67 district may increase an impact fee only as provided in this 68 subsection. 69 (g) A local government, school district, or special 70 district may increase an impact fee rate beyond the phase -in 71 limitations established under paragraph (b), paragraph (c), 72 paragraph (d), or paragraph (e) by establishing the need for 73 such increase in full compliance with the requirements of 74 subsection (4), provided the following criteria are met: 75 CS/HB 665 2025 CODING: Words stricken are deletions; words underlined are additions. hb665-01-c1 Page 4 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 1. A demonstrated-need study using a plan-based 76 methodology justifying any increase in excess of those 77 authorized in paragraph (b), paragraph (c), paragraph (d), or 78 paragraph (e) has been completed within the 12 months before the 79 adoption of the impact fee increase and expressly demonstrates 80 the extraordinary circ umstances necessitating the need to exceed 81 the phase-in limitations. 82 a. An increase in a nontransportation impact fee may not 83 be adopted unless the extraordinary circumstances demonstrated 84 in the demonstrated-need study include at least two of the 85 following: 86 (I) The population of the local government jurisdiction 87 over the past 5 years exceeds, by at least 10 percent, the 88 population estimates and projections used to justify the most 89 recent impact fee increase. 90 (II) The average number of building permit s issued by the 91 local government over the past 5 years exceeds, by at least 10 92 percent, the building permit estimates and projections used to 93 justify the most recent impact fee increase. 94 (III) The employment base within the local jurisdiction 95 over the past 5 years exceeds the employment estimates and 96 projections used to justify the most recent impact fee. 97 (IV) The existing level of service grade will be lowered 98 without an increase in the impact fee rate. 99 b. An increase in a transportation impact fee m ay not be 100 CS/HB 665 2025 CODING: Words stricken are deletions; words underlined are additions. hb665-01-c1 Page 5 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S adopted unless the extraordinary circumstances demonstrated in 101 the demonstrated-need study include at least three of the 102 following: 103 (I) Any condition provided in sub -subparagraph a. 104 (II) Cost growth over the past 5 years which exceeds, by 105 an average of at least 10 percent, the Federal Highway 106 Administration's National Highway Construction Cost Index 107 average used to justify the previous impact fee increase. 108 (III) The vehicle miles traveled in the past 5 years 109 exceed, by at least 10 percent, t he Department of 110 Transportation's vehicle miles traveled index average used to 111 justify the most recent impact fee. 112 (IV) The per-lane mile cost estimates for construction for 113 the past 5 years exceed, by at least 10 percent, the Department 114 of Transportation's average used to justify the most recent 115 impact fee. 116 c. An increase in an impact fee for an independent special 117 district may not be adopted unless the extraordinary 118 circumstances demonstrated in the demonstrated -need study 119 include all of the following : 120 (I) The amount of growth experienced in the past 5 years 121 and anticipated within the district requires a significant 122 immediate infrastructure investment to serve such growth which 123 will need to be financed by the special district with impact 124 fees. 125 CS/HB 665 2025 CODING: Words stricken are deletions; words underlined are additions. hb665-01-c1 Page 6 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (II) The cost of infrastructure investment required to be 126 financed by the district in the next 5 years is increasing the 127 need for public facilities and has a direct impact on the fee 128 amount needed to finance the additional infrastructure for the 129 benefit of the growth. 130 (III) The existing level of service will be impacted 131 without an increase in the impact fee rate. 132 2. The local government jurisdiction has held not fewer 133 less than two publicly noticed workshops dedicated to the 134 extraordinary circumstances nece ssitating the need to exceed the 135 phase-in limitations set forth in paragraph (b), paragraph (c), 136 paragraph (d), or paragraph (e). 137 3. The impact fee increase ordinance is approved by at 138 least a two-thirds vote of the governing body. 139 140 A local government ma y not increase an impact fee rate beyond 141 the phase-in limitations under this paragraph if the local 142 government has not increased the impact fee within the past 5 143 years. Any year in which the local government is prohibited from 144 increasing an impact fee beca use the jurisdiction is in a 145 hurricane disaster area is not included in the 5 -year period. 146 Section 4. Subsection (8) is added to section 166.033, 147 Florida Statutes, to read: 148 166.033 Development permits and orders. — 149 (8) A municipality may not as a co ndition of processing or 150 CS/HB 665 2025 CODING: Words stricken are deletions; words underlined are additions. hb665-01-c1 Page 7 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S issuing any development permit or development order require an 151 applicant to install a work of art, pay a fee for a work of art, 152 or reimburse the municipality for any costs that the 153 municipality may incur related to a work of art. A ny ordinance 154 or regulation in conflict with this subsection is void and 155 unenforceable. 156 Section 5. Paragraph (d) of subsection (2) of section 157 212.055, Florida Statutes, is amended to read: 158 212.055 Discretionary sales surtaxes; legislative intent; 159 authorization and use of proceeds. —It is the legislative intent 160 that any authorization for imposition of a discretionary sales 161 surtax shall be published in the Florida Statutes as a 162 subsection of this section, irrespective of the duration of the 163 levy. Each enactment shall specify the types of counties 164 authorized to levy; the rate or rates which may be imposed; the 165 maximum length of time the surtax may be imposed, if any; the 166 procedure which must be followed to secure voter approval, if 167 required; the purpose for which the proceeds may be expended; 168 and such other requirements as the Legislature may provide. 169 Taxable transactions and administrative procedures shall be as 170 provided in s. 212.054. 171 (2) LOCAL GOVERNMENT INFRASTRUCTURE SURTAX. — 172 (d) The proceeds of the surtax authorized by this 173 subsection and any accrued interest shall be expended by the 174 school district, within the county and municipalities within the 175 CS/HB 665 2025 CODING: Words stricken are deletions; words underlined are additions. hb665-01-c1 Page 8 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S county, or, in the case of a negotiated joint county agreement, 176 within another county, to finance, plan , and construct 177 infrastructure; to acquire any interest in land for public 178 recreation, conservation, or protection of natural resources or 179 to prevent or satisfy private property rights claims resulting 180 from limitations imposed by the designation of an area of 181 critical state concern; to provide loans, grants, or rebates to 182 residential or commercial property owners who make energy 183 efficiency improvements to their residential or commercial 184 property, if a local government ordinance authorizing such use 185 is approved by referendum; or to finance the closure of county -186 owned or municipally owned solid waste landfills that have been 187 closed or are required to be closed by order of the Department 188 of Environmental Protection. Any use of the proceeds or interest 189 for purposes of landfill closure before July 1, 1993, is 190 ratified. The proceeds and any interest may not be used for the 191 operational expenses of infrastructure, except that a county 192 that has a population of fewer than 75,000 and that is required 193 to close a landfill may use the proceeds or interest for long -194 term maintenance costs associated with landfill closure. 195 Counties, as defined in s. 125.011, and charter counties may, in 196 addition, use the proceeds or interest to retire or service 197 indebtedness incurred for bonds issued before July 1, 1987, for 198 infrastructure purposes, and for bonds subsequently issued to 199 refund such bonds. Any use of the proceeds or interest for 200 CS/HB 665 2025 CODING: Words stricken are deletions; words underlined are additions. hb665-01-c1 Page 9 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S purposes of retiring or servicing indebtedness incurred for 201 refunding bonds before July 1, 1999, is ra tified. 202 1. For the purposes of this paragraph, the term 203 "infrastructure" means: 204 a. Any fixed capital expenditure or fixed capital outlay 205 associated with the construction, reconstruction, or improvement 206 of public facilities that have a life expectancy o f 5 or more 207 years, any related land acquisition, land improvement, design, 208 and engineering costs, and all other professional and related 209 costs required to bring the public facilities into service. For 210 purposes of this sub -subparagraph, the term "public fac ilities" 211 means facilities as defined in s. 163.3164 s. 163.3164(41), s. 212 163.3221(13), or s. 189.012(5), and includes facilities that are 213 necessary to carry out governmental purposes, including, but not 214 limited to, fire stations, general governmental office 215 buildings, and animal shelters, regardless of whether the 216 facilities are owned by the local taxing authority or another 217 governmental entity. 218 b. A fire department vehicle, an emergency medical service 219 vehicle, a sheriff's office vehicle, a police departm ent 220 vehicle, or any other vehicle, and the equipment necessary to 221 outfit the vehicle for its official use or equipment that has a 222 life expectancy of at least 5 years. 223 c. Any expenditure for the construction, lease, or 224 maintenance of, or provision of utilities or security for, 225 CS/HB 665 2025 CODING: Words stricken are deletions; words underlined are additions. hb665-01-c1 Page 10 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S facilities, as defined in s. 29.008. 226 d. Any fixed capital expenditure or fixed capital outlay 227 associated with the improvement of private facili ties that have 228 a life expectancy of 5 or more years and that the owner agrees 229 to make available for use on a temporary basis as needed by a 230 local government as a public emergency shelter or a staging area 231 for emergency response equipment during an emergenc y officially 232 declared by the state or by the local government under s. 233 252.38. Such improvements are limited to those necessary to 234 comply with current standards for public emergency evacuation 235 shelters. The owner must enter into a written contract with the 236 local government providing the improvement funding to make the 237 private facility available to the public for purposes of 238 emergency shelter at no cost to the local government for a 239 minimum of 10 years after completion of the improvement, with 240 the provision that the obligation will transfer to any 241 subsequent owner until the end of the minimum period. 242 e. Any land acquisition expenditure for a residential 243 housing project in which at least 30 percent of the units are 244 affordable to individuals or families whose total annual 245 household income does not exceed 120 percent of the area median 246 income adjusted for household size, if the land is owned by a 247 local government or by a special district that enters into a 248 written agreement with the local government to provide such 249 housing. The local government or special district may enter into 250 CS/HB 665 2025 CODING: Words stricken are deletions; words underlined are additions. hb665-01-c1 Page 11 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S a ground lease with a public or private person or entity for 251 nominal or other consideration for the construction of the 252 residential housing project on land acquired pursuant to this 253 sub-subparagraph. 254 f. Instructional technology used solely in a school 255 district's classrooms. As used in this sub -subparagraph, the 256 term "instructional technology" means an interactive device that 257 assists a teacher in instructing a class or a group of student s 258 and includes the necessary hardware and software to operate the 259 interactive device. The term also includes support systems in 260 which an interactive device may mount and is not required to be 261 affixed to the facilities. 262 2. For the purposes of this paragra ph, the term "energy 263 efficiency improvement" means any energy conservation and 264 efficiency improvement that reduces consumption through 265 conservation or a more efficient use of electricity, natural 266 gas, propane, or other forms of energy on the property, 267 including, but not limited to, air sealing; installation of 268 insulation; installation of energy -efficient heating, cooling, 269 or ventilation systems; installation of solar panels; building 270 modifications to increase the use of daylight or shade; 271 replacement of windows; installation of energy controls or 272 energy recovery systems; installation of electric vehicle 273 charging equipment; installation of systems for natural gas fuel 274 as defined in s. 206.9951; and installation of efficient 275 CS/HB 665 2025 CODING: Words stricken are deletions; words underlined are additions. hb665-01-c1 Page 12 of 12 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S lighting equipment. 276 3. Notwithstanding any other provision of this subsection, 277 a local government infrastructure surtax imposed or extended 278 after July 1, 1998, may allocate up to 15 percent of the surtax 279 proceeds for deposit into a trust fund within the county's 280 accounts created for the p urpose of funding economic development 281 projects having a general public purpose of improving local 282 economies, including the funding of operational costs and 283 incentives related to economic development. The ballot statement 284 must indicate the intention to mak e an allocation under the 285 authority of this subparagraph. 286 Section 6. This act shall take effect July 1, 2025. 287