Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0595 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- S 0595
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7	7	LC002302
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
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14	14	A N A C T
15	15	RELATING TO TOWNS AN D CITIES – RHODE ISLAND DEVELOPMENT IMPACT FEE
16	16	ACT
17	17	Introduced By: Senators Gu, Euer, Kallman, Mack, Valverde, and Lauria
18	18	Date Introduced: March 07, 2023
19	19	Referred To: Senate Housing & Municipal Government
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22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Sections 45-22.4-3 and 45-22.4-5 of the General Laws in Chapter 45-22.4 1
24	24	entitled "Rhode Island Development Impact Fee Act" are hereby amended to read as follows: 2
25	25	45-22.4-3. Definitions. 3
26	26	As used in this chapter, the following words have the meanings stated in this section: 4
27	27	(1) “Capital improvements” means improvements with a useful life of ten (10) years or 5
28	28	more, which increases or improves the service capacity of a public facility; 6
29	29	(2) “Capital improvement program” means that component of a municipal budget that sets 7
30	30	out the need for public facility capital improvements, the costs of the improvements, and proposed 8
31	31	funding sources. A capital improvement program must cover at least a five (5) year period and 9
32	32	should be reviewed at least every five (5) years; 10
33	33	(3) “Developer” means a person or legal entity undertaking development; 11
34	34	(4) “Governmental entity” means a unit of local government; 12
35	35	(5) “Impact fee” means the charge imposed upon new development by a governmental 13
36	36	entity to fund all or a portion of the public facility’s capital improvements affected by the new 14
37	37	development from which it is collected; 15
38	38	(6) “Proportionate share” means that portion of the cost of system improvements which 16
39	39	reasonably relates to the service demands and needs of the project; and 17
40	40	(7) “Public facilities” means: 18
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44	44	(i) Water supply production, treatment, storage, and distribution facilities; 1
45	45	(ii) Wastewater and solid waste collection, treatment, and disposal facilities; 2
46	46	(iii) Roads, streets, and bridges, including rights-of-way, traffic signals, landscaping, and 3
47	47	local components of state and federal highways; 4
48	48	(iv) Storm water collection, retention, detention, treatment, and disposal facilities, flood 5
49	49	control facilities, bank and shore projections, and enhancement improvements; 6
50	50	(v) Parks, open space areas, and recreation facilities; 7
51	51	(vi) Police, emergency medical, rescue, and fire protection facilities; 8
52	52	(vii) Public schools and libraries; and 9
53	53	(viii) Affordable housing projects; and 10
54	54	(ix) Other public facilities consistent with a community’s capital improvement program. 11
55	55	45-22.4-5. Collection and expenditure of impact fees. 12
56	56	(a) The collection and expenditure of impact fees must be reasonably related to the benefits 13
57	57	accruing to the development paying the fees. The ordinance shall consider the following 14
58	58	requirements: 15
59	59	(1) Upon collection, impact fees must be deposited in a special proprietary fund, which 16
60	60	shall be invested with all interest accruing to the trust fund; 17
61	61	(2) Within eight (8) years of the date of collection, impact fees shall be expended or 18
62	62	encumbered for the construction of public facilities’ capital improvements of reasonable benefit to 19
63	63	the development paying the fees and that are consistent with the capital improvement program; 20
64	64	(3) Where the expenditure or encumbrance of fees is not feasible within eight (8) years, the 21
65	65	governmental entity may retain impact fees for a longer period of time if there are compelling 22
66	66	reasons for the longer period. The governing body shall identify, in writing, the compelling reasons 23
67	67	for retaining impact fees for a longer period of time over eight (8) years. In no case shall impact 24
68	68	fees be retained longer than ten (10) years. 25
69	69	(b) All impact fees imposed pursuant to the authority granted in this chapter shall be 26
70	70	assessed upon the issuance of a building permit or other appropriate permission to proceed with 27
71	71	development and shall be collected only upon the issuance of the certificate of occupancy or other 28
72	72	final action authorizing the intended use of a structure. 29
73	73	(c) A governmental entity may recoup costs of excess capacity in existing capital facilities, 30
74	74	where the excess capacity has been provided in anticipation of the needs of new development, by 31
75	75	requiring impact fees for that portion of the facilities constructed for future users. The need to 32
76	76	recoup costs for excess capacity must have been documented by a preconstruction assessment that 33
77	77	demonstrated the need for the excess capacity. Nothing contained in this chapter shall prevent a 34
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81	81	municipality from continuing to assess an impact fee that recoups costs for excess capacity in an 1
82	82	existing facility without the preconstruction assessment so long as the impact fee was enacted at 2
83	83	least ninety (90) days prior to July 22, 2000, and is in compliance with this chapter in all other 3
84	84	respects pursuant to § 45-22.4-7. The fees imposed to recoup the costs to provide the excess 4
85	85	capacity must be based on the governmental entity’s actual cost of acquiring, constructing, or 5
86	86	upgrading the facility and must be no more than a proportionate share of the costs to provide the 6
87	87	excess capacity. That portion of an impact fee deemed recoupment is exempted from provisions of 7
88	88	subsection (a)(2) of this section. 8
89	89	(d) Governmental entities may accept the dedication of land or the construction of public 9
90	90	facilities in lieu of payment of impact fees provided that: 10
91	91	(1) The need for the dedication or construction is clearly documented in the community’s 11
92	92	capital improvement program or comprehensive plan; 12
93	93	(2) The land proposed for dedication or the facilities to be constructed are determined to 13
94	94	be appropriate for the proposed use by the local governmental entity; 14
95	95	(3) Formulas and/or procedures for determining the worth of proposed dedications or 15
96	96	constructions are established. 16
97	97	(e) The collection of impact fees may, at the discretion of the appropriate governmental 17
98	98	entity, be imposed on commercial properties to subsidize the creation of affordable housing projects 18
99	99	within the municipality. 19
100	100	(f) Exemptions: 20
101	101	(1) Impact fees shall not be imposed for remodeling, rehabilitation, or other improvements 21
102	102	to an existing structure, or rebuilding a damaged structure, unless there is an increase in the number 22
103	103	of dwelling units or any other measurable unit for which an impact fee is collected. Impact fees 23
104	104	may be imposed when property that is owned or controlled by federal or state government is 24
105	105	converted to private ownership or control. 25
106	106	(2) Nothing in this chapter shall prevent a municipality from granting any exemption(s) 26
107	107	that it deems appropriate. 27
108	108	(3) Impact fees shall not be imposed on any affordable housing projects. 28
109	109	SECTION 2. This act shall take effect upon passage. 29
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116	116	EXPLANATION
117	117	BY THE LEGISLATIVE COUNCIL
118	118	OF
119	119	A N A C T
120	120	RELATING TO TOWNS AN D CITIES – RHODE ISLAND DEVELOP MENT IMPACT FEE
121	121	ACT
122	122	***
123	123	This act would allow impact fees to be imposed on commercial properties to subsidize the 1
124	124	creation of affordable housing projects within the municipality, at the discretion of the appropriate 2
125	125	governmental agency. 3
126	126	This act would take effect upon passage. 4
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