| 1 | 1 | | By: Workman H.B. No. 3834 |
|---|
| 2 | 2 | | |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | A BILL TO BE ENTITLED |
|---|
| 5 | 5 | | AN ACT |
|---|
| 6 | 6 | | relating to municipal infrastructure costs. |
|---|
| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 8 | 8 | | SECTION 1. Section 212.904, Local Government Code, is |
|---|
| 9 | 9 | | amended to read as follows: |
|---|
| 10 | 10 | | Sec. 212.904. APPORTIONMENT OF MUNICIPAL INFRASTRUCTURE |
|---|
| 11 | 11 | | COSTS. (a) Subject to Local Government Code, Section 212.904, |
|---|
| 12 | 12 | | subparagraphs (a)1-4, [If] if a municipality requires as a |
|---|
| 13 | 13 | | condition of approval for a property development project that the |
|---|
| 14 | 14 | | developer bear a portion of the costs of municipal infrastructure |
|---|
| 15 | 15 | | improvements by the making of dedications, the payment of fees, or |
|---|
| 16 | 16 | | the payment of construction costs, the developer's portion of the |
|---|
| 17 | 17 | | costs may not exceed the amount required for infrastructure |
|---|
| 18 | 18 | | improvements that are [roughly] proportionate to the proposed |
|---|
| 19 | 19 | | development as approved by a professional engineer who holds a |
|---|
| 20 | 20 | | license issued under Chapter 1001, Occupations Code, and is |
|---|
| 21 | 21 | | retained by the municipality. |
|---|
| 22 | 22 | | (1) The determination of the proportionate share of |
|---|
| 23 | 23 | | municipal infrastructure improvements costs shall be determined by |
|---|
| 24 | 24 | | the engineer retained by the municipality based on the actual, |
|---|
| 25 | 25 | | documented and verifiable impact of the development on the existing |
|---|
| 26 | 26 | | infrastructure in the immediate area of the development. Any fees |
|---|
| 27 | 27 | | or costs paid for infrastructure improvements by the developer |
|---|
| 28 | 28 | | shall be used only for the purpose collected and the work shall |
|---|
| 29 | 29 | | commence and shall be substantially underway not later than the |
|---|
| 30 | 30 | | 23rd month following the payment of such fees. |
|---|
| 31 | 31 | | (2) Fees collected under this section shall be for new |
|---|
| 32 | 32 | | capital improvements only and shall not be used for recurring |
|---|
| 33 | 33 | | expenses or maintenance. |
|---|
| 34 | 34 | | (3) Fees collected under this section shall not be to |
|---|
| 35 | 35 | | supplement or supplant funding of existing capital infrastructure |
|---|
| 36 | 36 | | improvement projects which have funding identified through |
|---|
| 37 | 37 | | municipal budgets, bond measures, or any other source. |
|---|
| 38 | 38 | | (4) Nothing in this section prohibits the developer |
|---|
| 39 | 39 | | from making the improvements on behalf of the municipality if the |
|---|
| 40 | 40 | | developer and the municipality agree. |
|---|
| 41 | 41 | | (5) The amount calculated in Sec. 212.904 (a)(1) shall |
|---|
| 42 | 42 | | be offset by the increase in the taxes the municipality will receive |
|---|
| 43 | 43 | | as a result of the increased assessed valuation on the property |
|---|
| 44 | 44 | | after development and the estimated amount of the increase in the |
|---|
| 45 | 45 | | municipalities sales taxes attributed to the development. |
|---|
| 46 | 46 | | SECTION 2. This Act takes effect immediately if it receives |
|---|
| 47 | 47 | | a vote of two-thirds of all the members elected to each house, as |
|---|
| 48 | 48 | | provided by Section 39, Article III, Texas Constitution. If this |
|---|
| 49 | 49 | | Act does not receive the vote necessary for immediate effect, this |
|---|
| 50 | 50 | | Act takes effect September 1, 2017. |
|---|