Texas 2025 - 89th Regular

Texas Senate Bill SB2427 Compare Versions

Only one version of the bill is available at this time.

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1	1	By: Hall S.B. No. 2427
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to the use of impact fees by a political subdivision.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 395.001(4), Local Government Code, is
11	11	amended to read as follows:
12	12	(4) "Impact fee" means a charge or assessment imposed
13	13	by a political subdivision against new development in order to
14	14	generate revenue for funding or recouping thepay the actual costs
15	15	of labor, including the cost of surveyors, engineers, and other
16	16	similar professionals, and materials for capital improvements or
17	17	facility expansions necessitated by and attributable to the new
18	18	development. [The term includes amortized charges, lump-sum
19	19	charges, capital recovery fees, contributions in aid of
20	20	construction, and any other fee that functions as described by this
21	21	definition. The term does net include:
22	22	[(A) dedication of land for public parks or
23	23	payment in lieu of the dedication to serve park needs;
24	24	[(B) dedication of rights-of-way or easements or
25	25	construction or dedication of on-site or off-site water
26	26	distribution, wastewater collection or drainage facilities, or
27	27	streets, sidewalks, or curbs if the dedication or construction is
28	28	required by a valid ordinance and is necessitated by and
29	29	attributable to the new development;
30	30	[(C) lot or acreage fees to be placed in trust
31	31	funds for the purpose of reimbursing developers for oversizing or
32	32	constructing water or sewer mains or lines; or
33	33	[(D) other pro rata fees for reimbursement of
34	34	water or sewer mains or lines extended by the political
35	35	subdivision.]
36	36	However, an item included in the capital improvements plan
37	37	may not be required to be constructed except in accordance with
38	38	Section 395.019(2), and an owner may not be required to construct or
39	39	dedicate facilities and to pay impact fees for those facilities.
40	40	SECTION 2. Sections 395.012(a), (b), and (d), Local
41	41	Government Code, are amended to read as follows:
42	42	(a) An impact fee may be imposed only to pay the costs of
43	43	labor and materials for constructing capital improvements or
44	44	facility expansions, including and limited to the:
45	45	(1) labor and materials explicitly accounted for in
46	46	the construction contract price;
47	47	(2) surveying and engineering fees; and
48	48	(3) [land acquisition costs, including land
49	49	purchases, court awards and costs, attorney's fees, and expert
50	50	witness fees; and
51	51	[(4)] fees actually paid or contracted to be paid to an
52	52	independent qualified engineer or financial consultant preparing
53	53	or updating the capital improvements plan who is not an employee of
54	54	the political subdivision.
55	55	(b) Projected interest charges and other finance costs may
56	56	be included in determining the amount of impact fees only if the
57	57	impact fees are used for the payment of principal and interest on
58	58	bonds, notes, or other obligations issued by or on behalf of the
59	59	political subdivision to finance the labor and materials for
60	60	capital improvements or facility expansions identified in the
61	61	capital improvements plan and are not used to reimburse bond funds
62	62	expended for facilities that are not identified in the capital
63	63	improvements plan.
64	64	(d) A municipality may pledge an impact fee as security for
65	65	the payment of debt service on a bond, note, or other obligation
66	66	issued to finance labor and materials for a capital improvement or
67	67	public facility expansion if:
68	68	(1) the improvement or expansion is identified in a
69	69	capital improvements plan; and
70	70	(2) at the time of the pledge, the governing body of
71	71	the municipality certifies in a written order, ordinance, or
72	72	resolution that none of the impact fee will be used or expended for
73	73	an improvement or expansion not identified in the plan.
74	74	SECTION 3. Section 395.019, Local Government Code, is
75	75	amended to read as follows:
76	76	Sec. 395.019. COLLECTION OF FEES IF SERVICES NOT AVAILABLE.
77	77	Except for roadway facilities, impact fees may be assessed but may
78	78	not be collected in areas where services are not currently
79	79	available unless:
80	80	(1) the collection is made to pay for labor and
81	81	materials for a capital improvement or facility expansion that has
82	82	been identified in the capital improvements plan and the political
83	83	subdivision commits to commence construction within two years,
84	84	under duly awarded and executed contracts or commitments of staff
85	85	time covering substantially all of the work required to provide
86	86	service, and to have the service available within a reasonable
87	87	period of time considering the type of capital improvement or
88	88	facility expansion to be constructed, but in no event longer than
89	89	five years;
90	90	(2) the political subdivision agrees that the owner of
91	91	a new development may construct or finance the capital improvements
92	92	or facility expansions and agrees that the costs incurred or funds
93	93	advanced for labor and materials for the capital improvements or
94	94	facility expansions will be credited against the impact fees
95	95	otherwise due from the new development or agrees to reimburse the
96	96	owner for such costs from impact fees paid from other new
97	97	developments that will use such capital improvements or facility
98	98	expansions, which fees shall be collected and reimbursed to the
99	99	owner at the time the other new development records its plat; or
100	100	(3) an owner voluntarily requests the political
101	101	subdivision to reserve capacity to serve future development, and
102	102	the political subdivision and owner enter into a valid written
103	103	agreement.
104	104	SECTION 4. Section 395.021, Local Government Code, is
105	105	amended to read as follows:
106	106	Sec. 395.021. AUTHORITY OF POLITICAL SUBDIVISIONS TO SPEND
107	107	FUNDS TO REDUCE FEES. Political subdivisions may spend funds from
108	108	any lawful source to pay for all or a part of the labor and material
109	109	costs for capital improvements or facility expansions to reduce the
110	110	amount of impact fees.
111	111	SECTION 5. Section 395.023, Local Government Code, is
112	112	amended to read as follows:
113	113	Sec. 395.023. CREDITS AGAINST ROADWAY FACILITIES FEES. Any
114	114	labor and material costs for construction of, contributions to, or
115	115	dedications of off-site roadway facilities agreed to or required by
116	116	a political subdivision as a condition of development approval
117	117	shall be credited against roadway facilities impact fees otherwise
118	118	due from the development.
119	119	SECTION 6. Section 395.079(a), Local Government Code, is
120	120	amended to read as follows:
121	121	(a) Any county that has a population of 3.3 million or more
122	122	or that borders a county with a population of 3.3 million or more,
123	123	and any district or authority created under Article XVI, Section
124	124	59, of the Texas Constitution within any such county that is
125	125	authorized to provide storm water, drainage, and flood control
126	126	facilities, is authorized to impose impact fees to cover the labor
127	127	and material costs for [provide] storm water, drainage, and flood
128	128	control improvements necessary to accommodate new development.
129	129	SECTION 7. The changes in law made by this Act apply only to
130	130	an impact fee enacted or imposed on or after the effective date of
131	131	this Act. An impact fee enacted or imposed before the effective date
132	132	of this Act is governed by the law in effect immediately before the
133	133	effective date of this Act, and the former law is continued in
134	134	effect for that purpose.
135	135	SECTION 8. This Act takes effect immediately if it receives
136	136	a vote of two-thirds of all the members elected to each house, as
137	137	provided by Section 39, Article III, Texas Constitution. If this
138	138	Act does not receive the vote necessary for immediate effect, this
139	139	Act takes effect September 1, 2025.