Relating to the approval of land use assumptions, capital improvement plans, and impact fees.

89(R) HB 2225 - House Committee Report version - Bill Text

89R6199 JBD-D

By: Buckley, Dyson, Alders, et al.

H.B. No. 2225

A BILL TO BE ENTITLED

AN ACT

relating to the approval of land use assumptions, capital

improvement plans, and impact fees.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 395.043, Local Government Code, is

amended to read as follows:

Sec. 395.043. INFORMATION ABOUT LAND USE ASSUMPTIONS AND

CAPITAL IMPROVEMENTS PLAN AVAILABLE TO PUBLIC.
At least 60 days
[
On

or
] before the date of the first publication of the notice of the

hearing on the land use assumptions and capital improvements plan,

the political subdivision shall make available to the public its

land use assumptions, the time period of the projections, and a

description of the capital improvement facilities that may be

proposed.

SECTION 2. Section 395.051(a), Local Government Code, is

amended to read as follows:

(a) The political subdivision, within 30 days after the date

of the public hearing on the imposition of an impact fee, shall

approve or disapprove the imposition of an impact fee.
Approval of

the imposition of an impact fee by a political subdivision requires

an affirmative vote of three-fourths of the members of the

governing body of the political subdivision.

SECTION 3. Subchapter C, Chapter 395, Local Government

Code, is amended by adding Section 395.0515 to read as follows:

Sec.

395.0515.

LIMITATION ON IMPACT FEE INCREASE. A

political subdivision may not increase the amount of an impact fee

for five years from the later of the date the fee was adopted or most

recently increased, if applicable.

SECTION 4. Section 395.053, Local Government Code, is

amended to read as follows:

Sec. 395.053. HEARING ON UPDATED LAND USE ASSUMPTIONS AND

CAPITAL IMPROVEMENTS PLAN. The governing body of the political

subdivision shall, within
120
[
60
] days after the date it receives

the update of the land use assumptions and the capital improvements

plan, adopt an order setting a public hearing to discuss and review

the update and shall determine whether to amend the plan.

SECTION 5. Section 395.054, Local Government Code, is

amended to read as follows:

Sec. 395.054. HEARING ON AMENDMENTS TO LAND USE

ASSUMPTIONS, CAPITAL IMPROVEMENTS PLAN, OR IMPACT FEE. A public

hearing must be held by the governing body of the political

subdivision to discuss the proposed ordinance, order, or resolution

amending land use assumptions, the capital improvements plan, or

the impact fee.
At least 60 days
[
On or
] before the date of the

first publication of the notice of the hearing on the amendments,

the land use assumptions and the capital improvements plan,

including the amount of any proposed amended impact fee per service

unit, shall be made available to the public.

SECTION 6. Section 395.058(b), Local Government Code, is

amended to read as follows:

(b) The advisory committee is composed of not less than five

members who shall be appointed by a majority vote of the governing

body of the political subdivision. Not less than
50
[
40
] percent of

the membership of the advisory committee must be representatives of

the real estate, development, or building industries who are not

employees or officials of a political subdivision or governmental

entity. [
If the political subdivision has a planning and zoning

commission, the commission may act as the advisory committee if the

commission includes at least one representative of the real estate,

development, or building industry who is not an employee or

official of a political subdivision or governmental entity.

If no

such representative is a member of the planning and zoning

commission, the commission may still act as the advisory committee

if at least one such representative is appointed by the political

subdivision as an ad hoc voting member of the planning and zoning

commission when it acts as the advisory committee.
] If the impact

fee is to be applied in the extraterritorial jurisdiction of the

political subdivision, the membership must include a

representative from that area.

SECTION 7. Sections 395.043 and 395.054, Local Government

Code, as amended by this Act, apply only to a land use assumption,

capital improvement plan, or impact fee that is the subject of a

public hearing required to be held by Section 395.042 or 395.053 of

that code, as applicable, that is held on or after the 90th day

after the effective date of this Act. A land use assumption,

capital improvement plan, or impact fee subject to a public hearing

that is held before the 90th day after the effective date of this

Act is governed by the law in effect immediately before the

effective date of this Act, and the former law is continued in

effect for that purpose.

SECTION 8. Section 395.051(a), Local Government Code, as

amended by this Act, applies only to the approval of the imposition

of an impact fee on or after the effective date of this Act.

SECTION 9. Section 395.0515, Local Government Code, as

added by this Act, applies only to the increase of the amount of an

impact fee that is adopted on or after the effective date of this

Act.

SECTION 10. This Act takes effect September 1, 2025.