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.