BILL ANALYSIS S.B. 1329 By: Nelson (Brimer) 04-21-95 Committee Report (Unamended) BACKGROUND Municipalities are authorized to charge various types of impact fees which may only be used to pay the costs of constructing capital improvements or facility expansions. PURPOSE As proposed, S.B. 1329 sets forth provisions relating to the use of impact fees by a municipality. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 395.012, Local Government Code, by adding Subsections (d) and (e), as follows: (d) Authorizes a municipality to pledge an impact fee as security for the payment of debt service on a bond, note, or other obligation issued to finance a capital improvement or public facility expansion if the improvement or expansion is identified in a capital improvement plan; and the governing body of a municipality certifies in a written order, ordinance, or resolution that none of the impact fee will be used or expended for an improvement or expansion not identified in the plan. (e) Provides that a certification under Subsection (d)(2) is sufficient evidence that an impact fee pledged will not be used or expended for an improvement or expansion that is not identified in the capital improvement plan. SECTION 2. Emergency clause. Effective date: upon passage. SUMMARY OF COMMITTEE ACTION The committee considered SB 1329 in a public hearing on April 24, 1995. The bill was reported favorably without amendments, with the recommendation that it do pass and be printed, by a record vote: 6 Ayes, 0 Nays, 0 PNV, 3 Absent.