HBA-NMO H.B. 2045 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2045 By: Brimer Natural Resources 4/5/1999 Introduced 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. H.B. 2045 provides that a service unit, the basis of impact fees, is established by the Texas Natural Resource Conservation Commission, rather than calculated by a political subdivision. 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 Section 395.001(10), Local Government Code, to provide that a "service unit" is established by the Texas Natural Resource Conservation Commission (TNRCC), rather than calculated in accordance with generally accepted engineering or planning standards for a particular category of capital improvements or facility expansions. "Service unit" is defined as a standardized measure of consumption, use, generation, or discharge attributable to an individual unit of development. SECTION 2. Amends Section 395.014(a), Local Government Code, to provide that a capital improvement plan must contain, among other specified information, the sum of the revenue received by the political subdivision from sources generated by new development, including sales tax and sales tax on construction materials, property tax, development fees, and building fees. Makes conforming changes. SECTION 3. Amends Section 395.016, Local Government Code, by amending Subsection (d) and adding Subsection (h), as follows: (d) Deletes the time of recordation of the subdivision plat from the times when the political subdivision is authorized to collect fees. (h) Requires the political subdivision, in the first statement or billing sent to the homeowner by the political subdivision under this section (Time for Assessment and Collection of Fee), to notify the homeowner of the amount of impact fees assessed. SECTION 4. Amends Section 395.021, Local Government Code, to define "enterprise funds" as funds received by a political subdivision from fees for services by a capital improvement. Requires a political subdivision to use excess funds generated by enterprise funds to pay for capital improvements of facility expansions. Authorizes that any enterprise funds remaining after capital improvements and facility expansions have been paid in full be transferred to the political subdivision's general fund. SECTION 5. Amends Section 395.052, Local Government Code, by adding Subsection (c), as follows: (c) Provides that an update of the land use assumptions and capital improvements plan does not constitute a new impact fee, extend the period for providing a refund under Section 395.025 (Refunds), or extend the period for performing a duty under Section 395.071 (Duties to be Performed Within Time Limits). SECTION 6. Requires TNRCC to develop a service unit as provided by Section 395.001(10), on or before November 1, 1999. SECTION 7. (a) Effective date: September 1, 1999, except as provided by Subsection (b). (b) Provides that the amendments made by this Act to Chapter 395, Local Government Code, take effect January 1, 1999. SECTION 8. Emergency clause.