HBA-NMO C.S.H.B. 2045 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2045
By: Brimer
Natural Resources
4/27/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Current law authorizes certain political subdivisions of this state to
impose impact fees on new development in order to generate revenue for
funding or recouping the costs of capital improvements or facility
expansions attributable to the new development.  However, taxes and fees
generated by new development may exceed the additional cost to a political
subdivision necessitated by the development.  C.S.H.B. 2045 provides that a
service unit, the basis of impact fees, is established based on historical
data and trends applicable to the political subdivision in which the
individual unit of development was located during the previous ten years.
This bill also modifies the imposition and use of impact fees.  
 
RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 395.001(4), (8), (9), and (10), Local
Government Code, to redefine "impact fee," "roadway facilities," "service
area," and "service unit." 

SECTION 2.  Amends Section 395.014(a), Local Government Code,  to provide
that a capital improvement plan must contain, among other specified
information, a credit for the portion of ad valorem tax revenue generated
by new service units identified in the land use assumptions that is used
for the payment of construction costs, including the debt service on bonds
to pay for the construction costs, for the political subdivision's
construction projects, and a credit for the portion of the monthly water
and wastewater service charges received from new service units identified
in the land use assumptions that is used for the payment of construction
costs for water and wastewater infrastructure to serve new development,
including the debt service on bonds to pay for the water and wastewater
infrastructure.  Makes conforming changes. 

SECTION 3.  Amends Section 395.015(a), Local Government Code, to modify the
formula for the maximum impact fee per service unit. 

SECTION 4.  Amends Section 395.016(d), Local Government Code, to provide an
exception only if water and wastewater is available.  Makes conforming and
nonsubstantive changes. 

SECTION 5.  Amends Subchapter C, Chapter 395, Local Government Code, by
adding Section 395.0411 and amending Sections 395.042-395.045, 395.047, and
395.049-395.051, as follows: 

Sec.  395.0411.  CAPITAL IMPROVEMENTS PLAN.  Requires the political
subdivision to provide for a capital improvements plan to be developed by
qualified professionals using generally accepted engineering and planning
practices in accordance with Section 395.014. 

Sec.  395.042.  New title:  HEARING ON LAND USE ASSUMPTIONS AND CAPITAL
IMPROVEMENTS PLAN.  Makes conforming changes. 

Sec.  395.043.  New title: INFORMATION ABOUT LAND USE ASSUMPTIONS AND
CAPITAL IMPROVEMENTS PLAN AVAILABLE TO PUBLIC.  Makes conforming changes. 

Sec.  395.044.  New title: NOTICE OF HEARING ON LAND USE ASSUMPTIONS AND
CAPITAL IMPROVEMENTS PLAN.    Requires the political subdivision to publish
notice of the hearing before the 30th day set for the hearing, rather than
once a week for three consecutive weeks.  The first notice to appear before
the 30th day before the date set for the hearing.  Makes conforming
changes. 

Sec.  395.045.  New title:  APPROVAL OF LAND USE ASSUMPTIONS AND CAPITAL
IMPROVEMENTS PLAN REQUIRED.    Makes conforming changes. 

Sec.  395.047.  New title: HEARING ON IMPACT FEE.    Makes conforming
changes. 

Sec.  395.049.  New title: NOTICE OF HEARING ON IMPACT FEE.  Makes
conforming changes. 

Sec.  395.050.  New title: ADVISORY COMMITTEE COMMENTS ON IMPACT FEES.
Makes conforming changes. 

Sec.  395.051.  New title: APPROVAL OF IMPACT FEE REQUIRED.  Makes
conforming changes. 

SECTION 6.  Amends Section 395.052(a), Local Government Code, to require a
political subdivision to update the land use assumptions and capital
improvements plan at least every five years, rather than three years.
Makes a conforming change.  

SECTION 7.  Amends Subchapter D, Chapter 395, Local Government Code, by
adding Section 395.082, as follows: 

Sec.  395.082.  CERTIFICATION OF COMPLIANCE REQUIRED.  Requires a political
subdivision that imposes an impact fee to submit a written certification
verifying compliance with this chapter to the attorney general each year
not later than the last day of the political subdivision's fiscal year.
Provides for the content of the certification statement and for the signing
of the certification.  Provides that a political subdivision that fails to
submit a certification as required by this section is liable to the state
for a civil penalty in an amount equal to 10 percent of the amount of the
impact fees erroneously charged  

SECTION 8.  Repealer: Sections 395.025(b) (Refunds), 395.046 (Capital
Improvements Plan Required After Approval of Land Use Assumptions), 395.048
(Information About Plan Available to Public), and 395.0515 (Consolidation
of Land Use Assumptions and Capital Improvements Plan), Local Government
Code. 

SECTION 9.  Effective date: September 1, 1999.

SECTION 10.  Emergency clause.
 
COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute differs from the original by amending subdivisions (4), (8),
and (9) to redefine "impact fee," "roadway facilities," "service area," and
"service unit," respectively.  These subdivisions are not mentioned in the
original. 

The substitute differs from the original in SECTION 2 by deleting the
proposed amendment to Section 395.014(a), relating to the sum of revenue
received by the political subdivision from sources generated by new
development, and adding a new Subdivisions (7) and (8), to provide that a
capital improvement plan must contain, among other specified information, a
credit for the portion of ad valorem tax revenue generated by new service
units identified in the land use assumptions that is used for the payment
of construction costs, including the debt service on bonds to pay for the
construction costs, for the political subdivision's construction projects,
and a credit for the portion  of the monthly water and wastewater service
charges received from new service units identified in the land use
assumptions that is used for the payment of construction costs for water
and wastewater infrastructure to serve new development, including the debt
service on bonds to pay for the water and wastewater infrastructure. 

The substitute differs from the original by deleting the proposed
amendments to Section 395.016, Local Government Code, in SECTION 3 of the
original.   

The substitute differs from the original by deleting the proposed
amendments to Section 395.021, Local Government Code. SECTION 4 of the
substitute amends Section 395.016(d), Local Government Code, to provide an
exception only if water and wastewater is available. 

The substitute differs from the original in SECTION 5 by deleting language
in Section 395.044, Local Government Code. relating to the requirement of a
political subdivision to publish notice of a hearing on or after the 60th
day before the date set for  hearing. 

The substitute differs from the original by replacing the text of SECTIONS
3, 5, 6, 7, 8, and 9. Please see the Section-by-Section Analysis portion of
this document for a complete analysis of these SECTIONS.