By: Workman H.B. No. 3834
A BILL TO BE ENTITLED
AN ACT
relating to municipal infrastructure costs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 212.904, Local Government Code, is
amended to read as follows:
Sec. 212.904. APPORTIONMENT OF MUNICIPAL INFRASTRUCTURE
COSTS. (a) Subject to Local Government Code, Section 212.904,
subparagraphs (a)1-4, [If] if a municipality requires as a
condition of approval for a property development project that the
developer bear a portion of the costs of municipal infrastructure
improvements by the making of dedications, the payment of fees, or
the payment of construction costs, the developer's portion of the
costs may not exceed the amount required for infrastructure
improvements that are [roughly] proportionate to the proposed
development as approved by a professional engineer who holds a
license issued under Chapter 1001, Occupations Code, and is
retained by the municipality.
(1) The determination of the proportionate share of
municipal infrastructure improvements costs shall be determined by
the engineer retained by the municipality based on the actual,
documented and verifiable impact of the development on the existing
infrastructure in the immediate area of the development. Any fees
or costs paid for infrastructure improvements by the developer
shall be used only for the purpose collected and the work shall
commence and shall be substantially underway not later than the
23rd month following the payment of such fees.
(2) Fees collected under this section shall be for new
capital improvements only and shall not be used for recurring
expenses or maintenance.
(3) Fees collected under this section shall not be to
supplement or supplant funding of existing capital infrastructure
improvement projects which have funding identified through
municipal budgets, bond measures, or any other source.
(4) Nothing in this section prohibits the developer
from making the improvements on behalf of the municipality if the
developer and the municipality agree.
(5) The amount calculated in Sec. 212.904 (a)(1) shall
be offset by the increase in the taxes the municipality will receive
as a result of the increased assessed valuation on the property
after development and the estimated amount of the increase in the
municipalities sales taxes attributed to the development.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.