By Nelson                                             S.B. No. 1329
       74R5397 CAG-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the use of impact fees by a municipality.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subchapter B, Chapter 395, Local Government Code,
    1-5  is amended by adding Section 395.0125 to read as follows:
    1-6        Sec. 395.0125. USE OF IMPACT FEE BY MUNICIPALITY.  (a)
    1-7  Notwithstanding any contrary general or local law or charter
    1-8  provision, the income of a water system, sewer system, or combined
    1-9  water and sewer system includes an impact fee used or proposed to
   1-10  be used for the payment of principal and interest on a bond, note,
   1-11  or other obligation issued by the municipality to provide any
   1-12  capital improvement other than a roadway facility.
   1-13        (b)  A municipality may pledge an impact fee as security for
   1-14  the payment of debt service on a bond, note, or other obligation
   1-15  issued to finance a capital improvement or public facility
   1-16  expansion if:
   1-17              (1)  the improvement or expansion is identified in a
   1-18  capital improvement plan; and
   1-19              (2)  at the time of the pledge, the governing body of
   1-20  the municipality certifies in a written order that none of the
   1-21  impact fee will be used or expended for an improvement or expansion
   1-22  not identified in the plan.
   1-23        (c)  A certification under Subsection (b)(2) is sufficient
   1-24  evidence that an impact fee pledged will not be used or expended
    2-1  for an improvement or expansion that is not identified in the
    2-2  capital improvement plan.
    2-3        SECTION 2.  The importance of this legislation and the
    2-4  crowded condition of the calendars in both houses create an
    2-5  emergency and an imperative public necessity that the
    2-6  constitutional rule requiring bills to be read on three several
    2-7  days in each house be suspended, and this rule is hereby suspended,
    2-8  and that this Act take effect and be in force from and after its
    2-9  passage, and it is so enacted.