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A BILL TO BE ENTITLED
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AN ACT
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relating to the approval of land use assumptions, capital |
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improvement plans, and impact fees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 395.043, Local Government Code, is |
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amended to read as follows: |
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Sec. 395.043. INFORMATION ABOUT LAND USE ASSUMPTIONS AND |
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CAPITAL IMPROVEMENTS PLAN AVAILABLE TO PUBLIC. At least 60 days [On |
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or] before the date of the first publication of the notice of the |
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hearing on the land use assumptions and capital improvements plan, |
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the political subdivision shall make available to the public its |
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land use assumptions, the time period of the projections, and a |
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description of the capital improvement facilities that may be |
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proposed. |
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SECTION 2. Section 395.051(a), Local Government Code, is |
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amended to read as follows: |
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(a) The political subdivision, within 30 days after the date |
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of the public hearing on the imposition of an impact fee, shall |
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approve or disapprove the imposition of an impact fee. Approval of |
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the imposition of an impact fee by a political subdivision requires |
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an affirmative vote of two-thirds of the members of the governing |
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body of the political subdivision. |
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SECTION 3. Subchapter C, Chapter 395, Local Government |
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Code, is amended by adding Section 395.0515 to read as follows: |
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Sec. 395.0515. LIMITATION ON IMPACT FEE INCREASE. A |
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political subdivision may not increase the amount of an impact fee |
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for three years from the later of the date the fee was adopted or |
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most recently increased, if applicable. |
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SECTION 4. Section 395.053, Local Government Code, is |
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amended to read as follows: |
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Sec. 395.053. HEARING ON UPDATED LAND USE ASSUMPTIONS AND |
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CAPITAL IMPROVEMENTS PLAN. The governing body of the political |
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subdivision shall, within 120 [60] days after the date it receives |
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the update of the land use assumptions and the capital improvements |
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plan, adopt an order setting a public hearing to discuss and review |
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the update and shall determine whether to amend the plan. |
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SECTION 5. Section 395.054, Local Government Code, is |
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amended to read as follows: |
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Sec. 395.054. HEARING ON AMENDMENTS TO LAND USE |
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ASSUMPTIONS, CAPITAL IMPROVEMENTS PLAN, OR IMPACT FEE. A public |
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hearing must be held by the governing body of the political |
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subdivision to discuss the proposed ordinance, order, or resolution |
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amending land use assumptions, the capital improvements plan, or |
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the impact fee. At least 60 days [On or] before the date of the |
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first publication of the notice of the hearing on the amendments, |
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the land use assumptions and the capital improvements plan, |
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including the amount of any proposed amended impact fee per service |
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unit, shall be made available to the public. |
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SECTION 6. Section 395.058(b), Local Government Code, is |
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amended to read as follows: |
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(b) The advisory committee is composed of not less than five |
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members who shall be appointed by a majority vote of the governing |
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body of the political subdivision. Not less than 50 [40] percent of |
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the membership of the advisory committee must be representatives of |
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the real estate, development, or building industries who are not |
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employees or officials of a political subdivision or governmental |
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entity. [If the political subdivision has a planning and zoning |
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commission, the commission may act as the advisory committee if the |
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commission includes at least one representative of the real estate, |
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development, or building industry who is not an employee or |
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official of a political subdivision or governmental entity. If no |
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such representative is a member of the planning and zoning |
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commission, the commission may still act as the advisory committee |
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if at least one such representative is appointed by the political |
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subdivision as an ad hoc voting member of the planning and zoning |
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commission when it acts as the advisory committee.] If the impact |
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fee is to be applied in the extraterritorial jurisdiction of the |
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political subdivision, the membership must include a |
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representative from that area. |
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SECTION 7. Sections 395.043 and 395.054, Local Government |
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Code, as amended by this Act, apply only to a land use assumption, |
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capital improvement plan, or impact fee that is the subject of a |
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public hearing required to be held by Section 395.042 or 395.053 of |
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that code, as applicable, that is held on or after the 90th day |
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after the effective date of this Act. A land use assumption, |
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capital improvement plan, or impact fee subject to a public hearing |
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that is held before the 90th day after the effective date of this |
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Act is governed by the law in effect immediately before the |
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effective date of this Act, and the former law is continued in |
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effect for that purpose. |
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SECTION 8. Section 395.051(a), Local Government Code, as |
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amended by this Act, applies only to the approval of the imposition |
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of an impact fee on or after the effective date of this Act. |
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SECTION 9. Section 395.0515, Local Government Code, as |
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added by this Act, applies only to the increase of the amount of an |
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impact fee that is adopted on or after the effective date of this |
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Act. |
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SECTION 10. This Act takes effect September 1, 2025. |