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|  | A BILL TO BE ENTITLED | 
|  | AN ACT | 
|  | relating to the capital improvements that a local government may | 
|  | finance with an impact fee. | 
|  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
|  | SECTION 1.  Section 395.001(1), Local Government Code, is | 
|  | amended to read as follows: | 
|  | (1)  "Capital improvement" means any of the following | 
|  | facilities that have a life expectancy of three or more years and | 
|  | are owned and operated by or on behalf of a political subdivision: | 
|  | (A)  water supply, treatment, and distribution | 
|  | facilities; wastewater collection and treatment facilities; and | 
|  | storm water, drainage, and flood control facilities; whether or not | 
|  | they are located within the service area; [ and] | 
|  | (B)  roadway facilities; and | 
|  | (C)  fire stations. | 
|  | SECTION 2.  Section 395.011, Local Government Code, is | 
|  | amended by adding Subsection (d) to read as follows: | 
|  | (d)  A political subdivision shall exempt a nonprofit | 
|  | organization that meets the eligibility requirements for | 
|  | certification by the Texas Department of Housing and Community | 
|  | Affairs as a nonprofit owner-builder housing program and that | 
|  | provides low-income housing from the imposition of an impact fee | 
|  | for a capital improvement as defined by Section 395.001(1)(C). | 
|  | SECTION 3.  This Act takes effect immediately if it receives | 
|  | a vote of two-thirds of all the members elected to each house, as | 
|  | provided by Section 39, Article III, Texas Constitution.  If this | 
|  | Act does not receive the vote necessary for immediate effect, this | 
|  | Act takes effect September 1, 2009. |