Texas 2025 - 89th Regular

Texas Senate Bill SB1883 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Bettencourt, Kolkhorst S.B. No. 1883
2		-
3		-
	1	+	By: Bettencourt S.B. No. 1883
	2	+	(In the Senate - Filed March 4, 2025; March 17, 2025, read
	3	+	first time and referred to Committee on Local Government;
	4	+	April 7, 2025, reported adversely, with favorable Committee
	5	+	Substitute by the following vote: Yeas 5, Nays 1; April 7, 2025,
	6	+	sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR S.B. No. 1883 By: Bettencourt
4	9
5	10
6	11		A BILL TO BE ENTITLED
7	12		AN ACT
8	13		relating to the approval of land use assumptions, capital
9	14		improvement plans, and impact fees.
10	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	16		SECTION 1. Section 395.043, Local Government Code, is
12	17		amended to read as follows:
13	18		Sec. 395.043. INFORMATION ABOUT LAND USE ASSUMPTIONS AND
14	19		CAPITAL IMPROVEMENTS PLAN AVAILABLE TO PUBLIC. At least 60 days [On
15	20		or] before the date of the first publication of the notice of the
16	21		hearing on the land use assumptions and capital improvements plan,
17	22		the political subdivision shall make available to the public its
18	23		land use assumptions, the time period of the projections, and a
19	24		description of the capital improvement facilities that may be
20	25		proposed.
21	26		SECTION 2. Section 395.051(a), Local Government Code, is
22	27		amended to read as follows:
23	28		(a) The political subdivision, within 30 days after the date
24	29		of the public hearing on the imposition of an impact fee, shall
25	30		approve or disapprove the imposition of an impact fee. Approval of
26	31		the imposition of an impact fee by a political subdivision requires
27	32		an affirmative vote of two-thirds of the members of the governing
28	33		body of the political subdivision.
29	34		SECTION 3. Subchapter C, Chapter 395, Local Government
30	35		Code, is amended by adding Section 395.0515 to read as follows:
31	36		Sec. 395.0515. LIMITATION ON IMPACT FEE INCREASE. A
32	37		political subdivision may not increase the amount of an impact fee
33	38		for three years from the later of the date the fee was adopted or
34	39		most recently increased, if applicable.
35	40		SECTION 4. Section 395.053, Local Government Code, is
36	41		amended to read as follows:
37	42		Sec. 395.053. HEARING ON UPDATED LAND USE ASSUMPTIONS AND
38	43		CAPITAL IMPROVEMENTS PLAN. The governing body of the political
39	44		subdivision shall, within 120 [60] days after the date it receives
40	45		the update of the land use assumptions and the capital improvements
41	46		plan, adopt an order setting a public hearing to discuss and review
42	47		the update and shall determine whether to amend the plan.
43	48		SECTION 5. Section 395.054, Local Government Code, is
44	49		amended to read as follows:
45	50		Sec. 395.054. HEARING ON AMENDMENTS TO LAND USE
46	51		ASSUMPTIONS, CAPITAL IMPROVEMENTS PLAN, OR IMPACT FEE. A public
47	52		hearing must be held by the governing body of the political
48	53		subdivision to discuss the proposed ordinance, order, or resolution
49	54		amending land use assumptions, the capital improvements plan, or
50	55		the impact fee. At least 60 days [On or] before the date of the
51	56		first publication of the notice of the hearing on the amendments,
52	57		the land use assumptions and the capital improvements plan,
53	58		including the amount of any proposed amended impact fee per service
54	59		unit, shall be made available to the public.
55	60		SECTION 6. Section 395.058(b), Local Government Code, is
56	61		amended to read as follows:
57	62		(b) The advisory committee is composed of not less than five
58	63		members who shall be appointed by a majority vote of the governing
59	64		body of the political subdivision. Not less than 50 [40] percent of
60	65		the membership of the advisory committee must be representatives of
61	66		the real estate, development, or building industries who are not
62	67		employees or officials of a political subdivision or governmental
63	68		entity. [If the political subdivision has a planning and zoning
64	69		commission, the commission may act as the advisory committee if the
65	70		commission includes at least one representative of the real estate,
66	71		development, or building industry who is not an employee or
67	72		official of a political subdivision or governmental entity. If no
68	73		such representative is a member of the planning and zoning
69	74		commission, the commission may still act as the advisory committee
70	75		if at least one such representative is appointed by the political
71	76		subdivision as an ad hoc voting member of the planning and zoning
72	77		commission when it acts as the advisory committee.] If the impact
73	78		fee is to be applied in the extraterritorial jurisdiction of the
74	79		political subdivision, the membership must include a
75	80		representative from that area.
76	81		SECTION 7. Subchapter C, Chapter 395, Local Government
77	82		Code, is amended by adding Section 395.059 to read as follows:
78	83		Sec. 395.059. INDEPENDENT FINANCIAL AUDIT. (a) Before a
79	84		political subdivision may increase an existing impact fee or adopt
80	85		a new impact fee for a service area where an impact fee had
81	86		previously been adopted, the political subdivision must conduct an
82	87		independent financial audit in accordance with this section.
83	88		(b) An independent financial audit conducted under this
84	89		section must be performed by an independent auditor who:
85	90		(1) is a certified public accountant or public
86	91		accountant licensed by the Texas State Board of Public Accountancy;
87	92		and
88	93		(2) is not, and has not been during the 12 months
89	94		preceding the commencement of the audit, under contract to provide
90	95		any other service to the political subdivision or a related entity
91	96		of the political subdivision.
92	97		(c) An independent financial audit conducted under this
93	98		section must provide, if applicable, a detailed accounting of:
94	99		(1) the amount of funds collected from any impact fee
95	100		imposed by the political subdivision in the service area;
96	101		(2) the amount of interest accumulated under Section
97	102		395.025 on impact fees collected by the political subdivision in
98	103		the service area;
99	104		(3) any proposed capital improvements or facility
100	105		expansions to be financed from an impact fee collected by the
101	106		political subdivision in the service area that were not
102	107		constructed, as described by Section 395.025, including the
103	108		categories of each improvement and expansion;
104	109		(4) the amount of funds collected from impact fees by
105	110		the political subdivision in the service area that have not been
106	111		spent;
107	112		(5) each impact fee collected by the political
108	113		subdivision in the service area;
109	114		(6) the allocation of each impact fee made to the
110	115		political subdivision in the service area;
111	116		(7) any waived impact fees in the service area under
112	117		Section 395.016(g);
113	118		(8) any requested refunds of impact fees in the
114	119		service area under Section 395.025;
115	120		(9) any impact fees in the service area refunded under
116	121		Section 395.025; and
117	122		(10) any errors or omissions of credits in impact fee
118	123		calculations for impact fees in the service area.
119	124		(d) An independent financial audit conducted under this
120	125		section must be submitted to the political subdivision and advisory
121	126		committee described by Section 395.058. Before the political
122	127		subdivision may increase an existing impact fee or adopt a new
123	128		impact fee for a service area where an impact fee had previously
124	129		been adopted, the political subdivision must hold a public hearing
125	130		on the results of the audit received under this subsection.
126	131		(e) A political subdivision shall make available to the
127	132		public an applicable independent financial audit at least 30 days
128	133		before:
129	134		(1) the publication of notice required under Section
130	135		395.044; and
131	136		(2) the adoption of an order as required under Section
132	137		395.053.
133	138		SECTION 8. Section 395.077, Local Government Code, is
134	139		amended by adding Subsection (f) to read as follows:
135	140		(f) The attorney general may bring an action on behalf of a
136	141		property owner to contest an impact fee or to recover a refund for
137	142		an impact fee under Section 395.025.
138	143		SECTION 9. Section 395.078, Local Government Code, is
139	144		repealed.
140	145		SECTION 10. Section 395.059, Local Government Code, as
141	146		added by this Act, applies only to a new impact fee or an increase to
142	147		an existing impact fee adopted on or after the effective date of
143	148		this Act.
144	149		SECTION 11. Sections 395.043 and 395.054, Local Government
145	150		Code, as amended by this Act, apply only to a land use assumption,
146	151		capital improvement plan, or impact fee that is the subject of a
147	152		public hearing required to be held by Section 395.042 or 395.053 of
148	153		that code, as applicable, that is held on or after the 90th day
149	154		after the effective date of this Act. A land use assumption,
150	155		capital improvement plan, or impact fee subject to a public hearing
151	156		that is held before the 90th day after the effective date of this
152	157		Act is governed by the law in effect immediately before the
153	158		effective date of this Act, and the former law is continued in
154	159		effect for that purpose.
155	160		SECTION 12. Section 395.051(a), Local Government Code, as
156	161		amended by this Act, applies only to the approval of the imposition
157	162		of an impact fee on or after the effective date of this Act.
158	163		SECTION 13. Section 395.0515, Local Government Code, as
159	164		added by this Act, applies only to the increase of the amount of an
160	165		impact fee that is adopted on or after the effective date of this
161	166		Act.
162	167		SECTION 14. This Act takes effect September 1, 2025.
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