The following includes recent legislative activity regarding
impact fees.
Florida HB 1467, sponsored by Representative
Bill Galvano (R), revises the Southern Manatee Fire &
Rescue District's non-ad valorem assessments schedule.
Conforms district's charter to specified provision, regarding
impact fees. Revises district's impact fee schedule. Incorporates
district's authority granted by referendum to levy ad
valorem taxes. Effective immediately.
http://www.leg.state.fl.us/data/session/2003/House/bills/billtext/pdf/h1467c1.pdf
Status: Introduced March 6, 2003. Referred to House Local
Government and Veterans' Affairs; and Finance & Taxation
Committees March 14. Substituted and reported from House
Local Government and Veterans' Affairs Committee April
2.
Prospects for passage are favorable. The House Local Government
and Veterans Affairs Committee reported the bill unanimously.
There is no state fiscal impact associated with this measure.
Florida HB 1563, sponsored by Representative
Ken Gottlieb (D), authorizes local governments in Broward
County to grant an exemption from impact fees for transportation
facilities for certain developments. http://www.leg.state.fl.us/data/session/2003/House/bills/billtext/pdf/h1563
Status: Filed March 6, 2003. Referred to House Local Affairs;
Local Government and Veterans' Affairs; and Finance and
Taxation Committees March 14. Amended and reported from
House Local Affairs Committee March 27. Substituted and
reported from Local Government and Veterans' Affairs Committee
April 1.
Prospects for consideration are favorable. The bill was
reported from the House Local Affairs; Local Government
and Veterans' Affairs Committees unanimously.
Maryland
Maryland HB 1059 - authorizes the County
Commissioners of Washington County to fix and impose,
by ordinance, a building excise tax on all types of building
construction and a transfer tax on specified instruments
of writing. Authorizes the governing body of Washington
County to grant a property tax credit against the county
property tax imposed on renovated or rehabilitated business
real property under specified circumstances.
House Bill 1059 passed both the House and the Senate with
unanimous support. The bill has been sent to Governor
Robert Ehrlich (R) and indications are that he will sign
this legislation.
Maryland HB 1148 - increases from $750
to $2,000 per lot the maximum development excise tax that
a code home rule county is authorized to impose. Terminates
the Act at the end of June 30, 2004.
House Bill 1148 also passed both the House and the Senate
with unanimous support. Sources have indicated that this
bill will most likely be signed by Governor Robert Ehrlich
(R).
Illinois
Illinois HB 528 (companion to SB 132)
- Provides that, for purposes of implementing ordinances
regarding developer donations or impact fees, "public
grounds for schools" (as used in the Counties Code)
and "school grounds" (as used in the Illinois
Municipal Code) are both defined as including land or
site improvements, which include school buildings or other
infrastructure necessitated by the development or subdivision
in question. Further provides that this definition applies
to all impact fees or developer donations paid into a
school district or held in a separate account or escrow
fund by any school district, municipality, or county for
a school district.
House Bill 528 passed the House with bi-partisan support
(96-18). Legislative sources indicate that Senator Lawrence
Walsh (D) has been added as a Senate sponsor. Senator
Walsh sits on the Senate Local Government Committee, the
Committee to which this bill will most likely be referred.
Illinois SB 132 (companion to HB 528)
- Provides that, for purposes of implementing ordinances
regarding developer donations or impact fees, "public
grounds for schools" (as used in the Counties Code)
and "school grounds" (as used in the Illinois
Municipal Code) are both defined as including land or
site improvements, which include school buildings or other
infrastructure necessitated by the development or subdivision
in question. Provides that this definition applies to
all impact fees or developer donations paid into a school
district or held in a separate account or escrow fund
by any school district, municipality, or county for a
school district.
Senate Bill 132 was reported from Senate Committee with
unanimous support and passed the Senate with bi-partisan
support (51-5).
Indiana
Indiana HB 1353 - delays the effective
date of building permit fees for new development until
90 days after the publication of the ordinance that increases
the fees.
House Bill 1353 passed the House with strong, bi-partisan
support (92-0). The bill was reported from Senate Committee
with unanimous support. Legislative sources indicate that
there is bi-partisan support for the bill in the Senate.
Massachusetts
Massachusetts SB 1174, sponsored by
Senator Pamela Resor (D), defines the intent of the zoning
act as providing guidance to municipalities in their regulation
of land use, growth, and development. Articulates the
public purposes of the zoning laws, including, but not
limited to achievement of balanced housing choices, orderly
and sustained growth, and environmental, historical and
cultural protections. Regulates imposition of development
impact fees.
http://www.state.ma.us/legis/bills/st01174.htm
Status: Prefiled December 4, 2002. Referred to Joint Local
Affairs Committee January 1, 2003.
Prospects for passage are unclear. The sponsor is not
a member of the Committee of referral. Sources in the
office of Governor Mitt Romney (R) indicate that growth
management is a priority for this session, specifically
a method of state-wide planning to reduce "urban
sprawl" and to increase open space preservation.
Sources in the Executive Office of Environmental Affairs
also indicate that once the state decides where it would
like to encourage and discourage growth, it will attempt
to link state funding for a variety of items, including
housing, sewers, municipal aid, and transportation, to
the plan.
Massachusetts SB 1944, sponsored by the
Special Committee on Local Aid, recommends methods for
mitigating the effect of local aid reduction. Authorizes
municipal planning boards to impose development and impact
fees.
http://www.state.ma.us/legis/bills/st01944.htm
Status: Filed February 19, 2003.
The Senate Special Committee on Local Aid was formed in
January 2003 to investigate measures that would help mitigate
the effect of local aid cuts in both the current fiscal
year and in fiscal year 2004, which begins in July 2003.
This action was in response to the fact that Governor
Romney had been granted expanded powers by the General
Court to extend his budget cutting authority to include
local aid programs and other segments of the state budget
traditionally off limits to his 9-C powers. Governor Romney’s
had subsequently announced a $114 million cut in local
aid. Special committee sources expect that each of the
various proposals in the Committee report will be referred
for consideration to the Senate chairs and staff of the
appropriate joint or standing committee. At that point,
a more substantive review of the merits can be made and
recommendations regarding appropriate legislative action
can be advanced.
New Jersey
New Jersey SB 436 was introduced January
8, 2002, by Senator Shirley K. Turner (D), and referred
to the Senate Community and Urban Affairs Committee. No
action has taken place on the measure. The sponsor introduced
similar legislation last session, when Republicans controlled
the Senate, but the bill did not make it out of the Senate
Community and Urban Affairs Committee. S.B. 436 :
· creates the "Municipal Development Impact
Fee Authorization Act" to allow municipalities to
impose an impact fee on developers
· requires the impact fee ordinance to contain
a delineation of service areas for each capital improvement
and a fee schedule which clearly sets forth the amount
of the fee to be charged for each service unit
· allows municipalities to impose an impact fee
to cover: (1) any transportation improvement necessitated
by new development in a county not covered by a transportation
development district created pursuant to the "New
Jersey Transportation Development District Act of 1989;"
(2) water treatment and distribution; (3) wastewater treatment
and sewerage; (4) flood control and stormwater management;
(5) educational facilities; (6) municipal parks and recreation
facilities; (7) public safety and related facilities
· states that 50% of the amount assessed as an
impact fee shall be paid prior to the issuance of a construction
permit and the remainder, prior to the issuance of the
certificate of occupancy
· states that no impact fee imposed by a municipality
shall exceed the development's proportional share of the
current reasonable cost of constructing the capital improvement
or facility expansion for which the fee is being assessed
· establishes a permanent 15 member Development
Impact Fee Review and Advisory Commission (DIFRAC) in
the Department of Community Affairs to provide ongoing
technical assistance to municipalities in adopting impact
fee ordinances and to evaluate the implementation of those
ordinances.
New Jersey SB 556 was introduced January
8, 2002, by Senator Leonard Lance (R), and referred to
the Senate Community and Urban Affairs Committee. No action
has taken place on the bill. As an Assemblyman last session,
the sponsor introduced similar legislation. The General
Assembly was controlled by the Republicans, however, the
bill was not reported from the Assembly Housing Committee.
S.B. 556:
· allows municipalities to impose an impact fee
on developers
· requires a municipality which imposes an impact
fee to do so by an ordinance which sets forth detailed
standards and guidelines regarding the definition of a
service unit and the specific purposes for which the impact
fee revenues may be expended
· allows municipalities to impose an impact fee
on applications for development
involving major subdivisions and major site plans to cover
a broad range of expenditure areas, including: (1) transportation;
(2) water treatment and distribution; (3) wastewater treatment
and sewerage; (4) flood control and stormwater management;
(5) and educational facilities necessitated by residential
development
· requires capital improvements and facility expansions
for which an impact fee is imposed to bear a reasonable
relationship to needs created by the new development
· sets forth terms and conditions under which municipalities
may assess and hold onto impact fee revenues
· requires the Department of Community Affairs
to establish a permanent committee to provide ongoing
technical assistance to municipalities to evaluate the
implementation of municipal impact fee ordinances.
Nevada
Nevada AB 455 - increases the impact
fee in each year a governing body does not adopt any revisions
to the land use assumptions or capital improvements plan
using the following rubric: (a) By a percentage equal
to the average percentage of increase in the Consumer
Price Index for West Urban Consumers for the preceding
5 years; or (b) By 4.5 percent, whichever is less. Assembly
Bill 455 has not moved since it was referred to Assembly
Government Affairs and Transportation Committees. It is
identical to S.B. 237, which was introduced by Senate
Majority Leader William Raggio (R). Sources indicate that
S.B. 237 is the more likely vehicle for this legislation.
A.B 455 has not been considered in Committee and is expected
to die when the April 11 Committee reporting deadline
arrives.
Nevada SB 237 - increases the impact
fee in each year a governing body does not adopt any revisions
to the land use assumptions or capital improvements plan
using the following formula: (a) By a percentage equal
to the average percentage of increase in the Consumer
Price Index for West Urban Consumers for the preceding
5 years; or (b) By 4.5 percent, whichever is less.
Senate Bill 237 was sent to the Senate floor by the Senate
Transportation Committee March 11. The sponsor is the
Majority Floor Leader of the Senate. Sources report broad
bi-partisan support for this measure. The Senate Minority
Leader has signed as an additional co-sponsor of the bill.
North Carolina
North Carolina SB 436, sponsored by
Senator Jeanne Lucas (D), authorizes Durham County to
impose impact fees for schools. http://www.ncga.state.nc.us/html2003/bills/AllVersions/Senate/S436v1.html
Filed March 13, 2003. Introduced and referred to Senate
Finance Committee March 17.
Identical legislation as filed by Senator Gulley. Legislative
sources indicate that S.B. 484 will be passed by the Senate.
North Carolina SB 484, sponsored by Senator
Wib Gulley (D), authorizes Durham County to impose fees
for schools.
http://www.ncga.state.nc.us/html2003/bills/AllVersions/Senate/S484v1.html
Filed March 19, 2003. Introduced and referred to Senate
Finance Committee March 20. Companion bill H.B. 632.
Legislative sources indicate the measure will pass this
session.
North Carolina HB 632, sponsored by Representative
Paul Luebke (D), authorizes Durham County to impose fees
for schools.
http://www.ncga.state.nc.us/html2003/bills/AllVersions/House/H632v1.html
Filed March 20, 2003. Introduced and referred to House
Finance Committee March 24. Legislative sources indicate
the measure will pass this session.
North Carolina HB 749, sponsored by Representative
Bill Owens (D), authorizes the developer to challenge
an impact fee mandated by the city or county. (Pg. 13)
http://www.ncga.state.nc.us/html2003/bills/AllVersions/House/H749v1.html
Filed March 26, 2003. Introduced and referred to House
Finance Committee March 27. Legislative sources indicate
that this local option tax bill carries several provisions
that lawmakers are likely to oppose. The measure is likely
to be amended to rectify the concerns and the impact fee
petition language is likely to be struck through.
Oregon
Oregon SB 493 - authorizes county to
impose school impact fee on new residential development
to pay for new school construction or capital improvements.
Senate Bill 493 has been referred to the Senate Revenue
Committee and there is a hearing scheduled for this bill
tomorrow (April 10). The sponsor has indicated his main
priority this session will be a continued fight for stable
education funding. He is a member of the Committee of
referral. This measure has the support of Senator Kurt
Schrader (D) who serves as a Co-Chair of the Joint Ways
and Means Committee.
Pennsylvania
Pennsylvania HB 1061 - expands the
scope of when municipalities can use impact fees. Current
law limits impact fees only to be used to fund transportation
projects. House Bill 1061 has been referred to the House
Local Government Committee. The sponsor is a member of
the Committee. Sources are not sure if this measure will
receive a hearing, but indicate they do not think the
bill "has a chance" of moving in its current
form. Strong opposition is expected from Builders Associations.
Sources are unsure if the sponsor will try to push the
bill, but are confident it would have to be amended and
pared down to be successful.
South Carolina
South Carolina SB 298, sponsored by
Senator Scott Richardson (R), decreases the individual
unit purchase price from one hundred to thirty thousand
dollars on capital equipment and vehicles which comprise
a portion of the definition of "public facilities".
http://www.lpitr.state.sc.us/sess115_2003-2004/bills/298.htm
South Carolina SB 299, sponsored by Senator
Scott Richardson (R), amends current state definitions
regarding public facilities, public parking garages, and
related facilities. Includes the new definitions as component
of the "South Carolina Development Impact Fee Act."
http://www.lpitr.state.sc.us/sess115_2003-2004/bills/299.htm
Introduced and referred to Senate Finance Committee January
30, 2003. Reported favorably from Committee March 12.
Passed Senate and sent to House March 18. Referred to
Senate Ways and Means Committee March 19. Prospects for
House passage are favorable. The sponsor has support for
the measure from House leadership. In addition, legislative
sources indicate that the fees will help to offset the
burdens placed on local counties due to the state's large
budget deficit.
Tennessee
Tennessee HB 442, sponsored by Represenative
Dennis Ferguson (D), amends powers and duties of City
Council to impose impact fees from new land developments
within the municipal limits. Limits impact fee to reasonably
anticipated coses of public improvements generated by
such developments. Enacts other provisions. http://www.legislature.state.tn.us/bills/currentga/BILL/HB0422.pdf
Introduced February 6, 2003. Held on desk February 10.
Placed on Consent Calendar March 4. Passed House March
5. Senate substituted S.B. 562 for HB 422 and passed Senate
March 10. Sent to Governor March 13. Governor signed into
law March 20.
Tennessee SB 562, sponsored by Senator
Mike Walker (D), companion bill to H.B. 422. http://www.legislature.state.tn.us/bills/currentga/BILL/SB0562.pdf
Introduced February 12, 2003. Held on Desk February 13.
Referred to Local Bill Consent Calendar and susbtituted
for H.B. 422 March 10. Governor signed H.B. 422 March
20.
Texas
Texas HB 485, sponsored by Representative
Ron Wilson (D), relates to the exemption of residential
property from ad valorem taxes, assessments, and impact
fees imposed by the Midtown Management District.
Status: Filed January 21, 2003. Introduced and referred
to House Local Government Ways and Means Committee February
10. Sent to Governor March 5. Recommendations filed with
Speaker April 4.
Texas HB 3537, sponsored by Representative
Jodie Laubenberg (R), allows any district to petition
the Texas Natural Resource Conservation Commission on
Environmental Quality http://www.capitol.state.tx.us/cgi-bin/tlo/textframe.cmd?LEG=78&SESS=R&CHAMBER=H&BILLTYPE=B&BILLSUFFIX=00485&VERSION=1&TYPE=Bfor
approval of any proposed impact fees, charges, fees, assessments,
or contributions. The commission shall adopt rules for
reviewing the petition and may charge the petitioner fees
adequate to cover the cost of processing and considering
the petition.
Status: Filed March 14, 2003. Introduced and referred
to House Natural Resources Committee April 2. Hearing
scheduled April 9.
Prospects for consideration are favorable. The sponsor
is a member of the majority party on the Committee of
referral.
Texas HB 1052, sponsored by Representative Mike
Villarreal (R), entitles the school district to assess
an impact fee against the developer in an amount computed
using the formula adopted by the commissioner, if the
commissioner determines that a residential development
is likely to significantly increase student enrollment
in a school district.
http://www.capitol.state.tx.us/cgi-bin/tlo/textframe.cmd?LEG=78&SESS=R&CHAMBER=H&BILLTYPE=B&BILLSUFFIX=01052&VERSION=1&TYPE=B
Status: Filed February 28, 2003. Introduced and referred
to House Land Resource Management Committee February 24.
Re-referred to House Local Government Ways and Means Committee
March 12.
Prospects for consideration are unfavorable. The sponsor
is not a member of the Committee of referral. Committee
sources indicate that, although this measure may receive
a hearing, it is not expected to move forward.
Texas HB 765, sponsored by Representative
Eddie Rodriguez (R), relates to the terms and conditions
of an ad valorem tax abatement agreement and the consequences
of noncompliance by a property owner with a tax abatement
agreement. http://www.capitol.state.tx.us/cgi-bin/tlo/textframe.cmd?LEG=78&SESS=R&CHAMBER=H&BILLTYPE=B&BILLSUFFIX=00765&VERSION=1&TYPE=B
Status: Filed February 6, 2003. Introduced and referred
to House Local Government Ways and Means Committee February
17.
Prospects for consideration are unfavorable. The sponsor
is not a member of the Committee of referral. Although
this measure may be scheduled for a hearing, Committee
sources indicate it is not a priority this session.
Texas SB 1631, sponsored by Senator
Jeff Wentworth (R), relates to the authority of a county
to regulate land development after a local option election.
Allows political subdivisions to impose impact fees.
http://www.capitol.state.tx.us/cgi-bin/tlo/textframe.cmd?LEG=78&SESS=R&CHAMBER=S&BILLTYPE=B&BILLSUFFIX=01631&VERSION=1&TYPE=B
Status: Filed March 14, 2003. Introduced and referred
to Intergovernmental Relations March 20.
Prospects for consideration are unclear. The sponsor is
a member of the Committee of referral. Although this measure
will most likely receive a hearing, committee sources
are unsure if it will move forward.
Vermont
Vermont SB 92 - relates to the revision
and reorganization of the law with respect to the adoption
and implementation of municipal bylaws. Includes impact
fees among regulatory tools a municipality is allowed
to adopt.
Senate Bill 92 easily moved through the Senate Natural
Resources and Energy and Appropriations Committees. Sources
report bi-partisan support for the bill. The measure It
did not meet any controversy on the Senate floor when
it moved from the first to second to third readings. Sources
indicate this is usually a good barometer for how a bill
will be received when called upon for final passage. The
bill is on the scheduled to be voted on in the Senate
today, April 9.
