89R15566 JBD-F By: Zwiener H.B. No. 5199 A BILL TO BE ENTITLED AN ACT relating to the authority of a municipality or county to enact and impose an impact fee for a roadway facility or a safety improvement to a roadway facility. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 212.004, Local Government Code, is amended by amending Subsection (g) and adding Subsection (h) to read as follows: (g) Except as provided by Subsection (h), the [The] governing body of a municipality or the municipal authority responsible for approving plats may not require an analysis, study, document, agreement, or similar requirement to be included in or as part of an application for a plat, development permit, or subdivision of land that is not explicitly allowed by state law. (h) The governing body of a municipality or the municipal authority responsible for approving plats may require a traffic analysis be included as part of a plat application if the traffic analysis is for the purpose of imposing an impact fee under Chapter 395. SECTION 2. Section 212.103, Local Government Code, is amended by adding Subsection (d) to read as follows: (d) This section does not apply to an impact fee imposed by a municipality under Chapter 395. SECTION 3. Section 232.001, Local Government Code, is amended by amending Subsection (h) and adding Subsection (i) to read as follows: (h) Except as provided by Subsection (i), the [The] commissioners court or the county authority responsible for approving plats may not require an analysis, study, document, agreement, or similar requirement to be included in or as part of an application for a plat, development permit, or subdivision of land that is not explicitly required by state law. (i) The commissioners court or the authority responsible for approving plats may require a traffic analysis be included as part of a plat application if the traffic analysis is for the purpose of imposing an impact fee under Chapter 395. SECTION 4. Section 395.001(7), Local Government Code, is amended to read as follows: (7) "Political subdivision" means: (A) a municipality; (B) [,] a district or authority created under Article III, Section 52, or Article XVI, Section 59, of the Texas Constitution; [,] or (C) a county, but only for the purposes authorized [set forth] by Section 395.079 or 395.0795 [, certain counties described by that section]. SECTION 5. Section 395.011, Local Government Code, is amended by amending Subsections (b) and (c) and adding Subsections (b-1) and (d) to read as follows: (b) Political subdivisions may enact or impose impact fees on land within their corporate boundaries or extraterritorial jurisdictions only by complying with this chapter, except that impact fees may not be enacted or imposed by a political subdivision described by Section 395.001(7)(B) in the extraterritorial jurisdiction for roadway facilities. (b-1) A municipality may only enact or impose an impact fee for a roadway facility or safety improvement to a roadway facility in the municipality's extraterritorial jurisdiction if: (1) the roadway facility or safety improvement is for a new development or new municipal utility district; and (2) the impact fee is in proportion to the impact the new development or district will have on the municipality. (c) Except as provided by Subsections (b-1) and (d), a [A] municipality may contract to provide capital improvements, except roadway facilities, to an area outside its corporate boundaries and extraterritorial jurisdiction and may charge an impact fee under the contract, but if an impact fee is charged in that area, the municipality must comply with this chapter. (d) A municipality may contract to provide a roadway facility in an area outside the corporate boundaries and extraterritorial jurisdiction of the municipality to: (1) a new development whose roadway facilities directly connect with the roadway facilities of the municipality; or (2) a municipal utility district bordering the extraterritorial jurisdiction of the municipality. SECTION 6. Section 395.012, Local Government Code, is amended by adding Subsection (f) to read as follows: (f) A municipality may use funds collected from an impact fee imposed under this subchapter to construct or install a safety improvement to a roadway facility. SECTION 7. Section 395.013, Local Government Code, is amended to read as follows: Sec. 395.013. ITEMS NOT PAYABLE BY FEE. (a) Impact fees may not be adopted or used to pay for: (1) construction, acquisition, or expansion of public facilities or assets other than capital improvements or facility expansions identified in the capital improvements plan; (2) repair, operation, or maintenance of existing or new capital improvements or facility expansions; (3) upgrading, updating, expanding, or replacing existing capital improvements to serve existing development in order to meet stricter safety, efficiency, environmental, or regulatory standards; (4) upgrading, updating, expanding, or replacing existing capital improvements to provide better service to existing development; (5) administrative and operating costs of the political subdivision, except the Edwards Underground Water District or a river authority that is authorized elsewhere by state law to charge fees that function as impact fees may use impact fees to pay its administrative and operating costs; (6) principal payments and interest or other finance charges on bonds or other indebtedness, except as allowed by Section 395.012. (b) Subsection (a)(2) does not apply to an impact fee enacted or imposed by: (1) a municipality for a roadway facility or safety improvement to a roadway facility described by Section 395.011(b-1); or (2) a county for a roadway facility or safety improvement to a roadway facility described by Section 395.0795. SECTION 8. Subchapter D, Chapter 395, Local Government Code, is amended by adding Section 395.0795 to read as follows: Sec. 395.0795. COUNTY IMPACT FEE FOR ROADWAY FACILITIES. (a) A county that maintains and operates a roadway facility is authorized to impose an impact fee for a roadway facility or safety improvement to a roadway facility in the unincorporated area of the county necessary to accommodate a new development or new municipal utility district. (b) An impact fee authorized by Subsection (a) may be imposed on a new development or new municipal utility district at the time the county approves a plat application for the development or for a project located in the district as provided by Chapter 232. (c) An impact fee authorized by Subsection (a) may be imposed only to pay a cost authorized by Section 395.012 to construct: (1) a capital improvement necessary to accommodate the impact that a new development or new municipal utility district will have on the roadway facilities of the county; (2) transportation infrastructure that meets the standards of a capital improvement; or (3) a safety improvement to a roadway facility if the capital improvement plan of the county indicates a need for the improvement. (d) An impact fee authorized by Subsection (a) must be in proportion to the impact a new development or new municipal utility district will have on the county. SECTION 9. The changes in law made by this Act apply only to an impact fee imposed on or after the effective date of this Act. An impact fee imposed before the effective date of this Act is governed by the law in effect on the date the impact fee was imposed, and the former law is continued in effect for that purpose. SECTION 10. This Act takes effect September 1, 2025.