SRC-JEC S.B. 243 77(R) BILL ANALYSIS
Senate Research Center S.B. 243
77R2563 PAM-DBy: Harris
Intergovernmental Relations
1/19/2001
As Filed
DIGEST AND PURPOSE
Under current law, a city can charge a new development for the cost of
capital improvements related to and used for the new development. As
proposed, S.B. 243 requires a political subdivision to credit the new
development for a portion of the ad valorem tax and utility service
revenues that will be generated by the new development, or a credit equal
to 50 percent of the total projected cost of the capital improvements.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency.
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 add
Subdivision (7), to include in the list of items required to be
specifically enumerated in the capital improvements plan a plan for
awarding: a credit for the portion of ad valorem tax and utility service
revenues generated by new service units during the program period that is
used for the payment of improvements, including the payment of debt, that
are included in the capital improvement plan; or in the alternative, a
credit equal to 50 percent of the total projected cost of implementing the
capital improvement plan. Makes nonsubstantive changes.
SECTION 3. Amends Section 395.015(a), Local Government Code, to prohibit
the impact fee per service unit from exceeding the amount determined by
subtracting the amount in Section 395.014(a)(7) from the costs of the
capital improvements described by Section 395.014(a)(3), and dividing that
amount by the total number of projected service units described by Section
395.014(a)(5). Makes conforming and nonsubstantive changes.
SECTION 4. Amends Section 395.016(d), Local Government Code, to authorize
the political subdivision, if water and wastewater capacity is available,
to collect the fees at the time the political subdivision issues a building
permit. Deletes language related to the recordation of the subdivision
plat and the certificate of occupancy.
SECTION 5. Amends Chapter 395C, Local Government Code, to add Section
395.0411and amend 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 heading: HEARING ON LAND USE ASSUMPTIONS AND CAPITAL
IMPROVEMENTS PLAN. Requires a political subdivision to impose an impact
fee, to adopt an order, ordinance, or resolution establishing a public
hearing date to consider the land use assumptions and capital improvements
plan for the designated service area. Deletes language regarding the
development of the capital improvements plan. Makes nonsubstantive
changes.
Sec. 395.043. New heading: INFORMATION ABOUT LAND USE ASSUMPTIONS AND
CAPITAL IMPROVEMENTS PLAN AVAILABLE TO PUBLIC. Deletes language regarding
the general nature of the capital improvement facilities. Makes conforming
changes.
Sec. 395.044. New heading: 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 before the date set for the
hearing, rather than once a week for three consecutive weeks, the first
notice to appear before the 30th day but on or after the 60th day before
the date set for the hearing. Deletes language regarding restrictions on
the publication of the notification of the hearing. Deletes language
related to a map of the service area. Makes conforming and nonsubstantive
changes.
Sec. 395.045. New heading: APPROVAL OF LAND USE ASSUMPTIONS AND CAPITAL
IMPROVEMENTS PLAN REQUIRED. Makes conforming changes.
Sec. 395.047. New heading: HEARING ON IMPACT FEE. Requires the governing
body, on adoption of the land use assumptions and capital improvements
plan, rather than on completion of the capital improvements plan, to adopt
an order or resolution setting a public hearing to discuss the imposition
of the impact fee. Makes conforming changes.
Sec. 395.049. New heading: NOTICE OF HEARING ON IMPACT FEE. Makes
conforming and nonsubstantive changes.
Sec. 395.050. New heading: ADVISORY COMMITTEE COMMENTS ON IMPACT FEES.
Makes conforming changes.
Sec. 395.051. New heading: APPROVAL OF IMPACT FEE REQUIRED. Makes
conforming changes.
SECTION 6. Amends Section 395.052(a), Local Government Code, to require a
political subdivision imposing an impact fee to update the land use
assumptions and capital improvements plan at least every five, rather than
three years. Makes a conforming change.
SECTION 7. Amends Chapter 395D, Local Government Code, to add Section
395.082, as follows:
Sec. 395.082. CERTIFICATION OF COMPLIANCE REQUIRED. (a) 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.
(b) Requires the presiding officer of the governing body of a political
subdivision to sign the certification, which is required to include a
certain statement of certification of compliance.
(c) 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. Requires the attorney general to collect the
civil penalty and deposit the amount collected to the credit of the housing
trust fund.
SECTION 8. Repealer: Section 395.025(b) (Refunds), Local Government Code.
Repealer: Section 395.046 (Capital Improvements Plan Required
After Approval of Land Use Assumptions), Local Government Code.
Repealer: Section 395.048 (Information About Plan Available to Public),
Local Government Code.
Repealer: Section 395.0515 (Consolidation of Land Use Assumptions and
Capital Improvements Plan), Local Government Code.
SECTION 9. Effective date: September 1, 2001.