BILL ANALYSIS


                                                    C.S.S.B. 1329
                                                       By: Nelson
                                      Intergovernmental Relations
                                                           4-6-95
                                   Committee Report (Substituted)
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, C.S.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.