Enrolled Bill Summary

            Senate Bill 243 amends Local Government Code provisions relating to political subdivisions' capital improvements and facility expansions plans and the calculation of impact fees charged new developments to fund or recoup the cost of the improvements or expansions to support those developments. The bill requires a capital improvements plan adopted by a political subdivision to include provisions for awarding either a credit for the portion of property tax and utility service revenues generated by new service units that is used for the payment of improvements, including debt service, or a credit equal to 50 percent of the total projected cost of implementing the capital improvements plan. It changes the method for determining the maximum impact fee per service unit by subtracting the amount of the credit from the costs of the improvements or expansions; requires consideration of the capital improvements plan at a public hearing at the same time as consideration of the land use assumptions rather than at a public hearing on the impact fee; amends public notice requirements relating to those hearings; and requires that land use assumptions and a capital improvements plan on which an impact fee is based be updated at least every five years, rather than every three years.

            Senate Bill 243 requires a political subdivision to use qualified professionals to develop a capital improvements plan and makes a political subdivision that imposes an impact fee liable to the state for a civil penalty if it fails to submit to the attorney general a written certification verifying compliance with applicable provisions of state law. The bill requires a political subdivision that has water and wastewater capacity to collect impact fees when the building permit is issued, or, for land platted outside its boundaries, or if the political subdivision lacks authority to issue building permits in the area where the impact fee applies, when an application for an individual water meter connection to the water or wastewater system is filed.