Impact Fees (Oppose – Preemption) 

<p>Impact Fees (Oppose – Preemption) </p><p> CS/SB 324 (Young) and HB 697 (Miller) prohibit local governments from collecting impact fees prior to the issuance of a certificate of occupancy for the property that is subject to the fee. CS/SB 324 was amended in the Senate Community Affairs Committee to specify the collection of the impact fee be no earlier than the issuance of the building permit for the property that is subject to the fee. In addition, the scope of CS/SB 324 was expanded to codify the dual rational nexus test. The rational nexus test requires that the expenditures of funds collected by an impact fee and the benefits that are accrued to the new construction (both residential and commercial) should be reasonably connected to the need for additional capital used for a major facility, and should be connected to the increased impact caused by said new construction. Additionally, the amendment requires the local government to specifically earmark funds collected by the impact fees for use in acquiring capital facilities to benefit the “new residents.” Finally, the bill prohibits the use of impact fee revenues to pay existing debt or for prior approved projects unless the expenditure is reasonably connected to, or has a rational nexus with, the increased impact generated by the new residential or commercial construction.  (<a href="">Cruz</a>)</p>