Texas House Bill HB33

Texas 2025 - 89th 1st C.S.

• Filed: 7/14/25

Caption

Relating to the provision by a political subdivision of credits against impact fees to builders and developers for certain water conservation and reuse projects.

Impact

The introduction of HB33 signifies a proactive approach by the state to address water conservation challenges by incentivizing builders and developers. By reducing financial burdens through impact fee credits, local governments can promote projects that utilize sustainable water practices. This shift is expected to positively influence the construction industry, as developers may be more inclined to invest in water-efficient facilities, systems, and technologies that lower their overall operational costs in the long run.

Summary

House Bill 33 seeks to amend provisions related to the assessment of impact fees by local political subdivisions on builders and developers. The bill mandates that political subdivisions provide credits against water and wastewater impact fees for projects that contribute to water conservation and reuse. By allowing builders and developers to receive these credits, the bill encourages the implementation of technologies and practices that lead to improved water efficiency and reduced consumption in new developments.

Contention

However, debates may arise regarding the fairness and practicality of implementing such credits across different political subdivisions. Local governments may have varying capacities and resources to establish consistent procedures for calculating and applying these credits. Balancing the need for standardized practices while allowing flexibility for local conditions presents a potential point of contention. Furthermore, this bill aims to set a precedent by formally recognizing the value of water conservation in planning and development, which could lead to discussions about how impact fees are traditionally calculated and the long-term fiscal implications for municipalities.

Texas Constitutional Statutes Affected

Local Government Code

• Chapter 395. Financing Capital Improvements Required By New Development In Municipalities, Counties, And Certain Other Local Governments
  • Section: New Section