The proposed bill would amend current statutes regarding municipal development fees by introducing several key changes. Under existing law, municipalities can assess development fees based on various criteria, including the proportional share of necessary public services. The bill would prohibit municipalities from distinguishing between single-family residential developments based on the size of the dwelling unit or number of bedrooms unless such fees were adopted prior to the bill's effective date. Additionally, it would allow municipalities to continue making such distinctions in updates to development fees adopted before the effective date. The bill also specifies that new or increased development fees cannot be assessed for 24 months after the effective date of the ordinance if no changes are made to the approved site plan or subdivision plat and allows municipalities to assess development fees for accessory dwelling units (ADUs) with specific limitations on water and wastewater fees, as well as other necessary public services. Moreover, the bill would remove certain existing definitions and requirements related to ADUs and make technical and conforming changes to the statutes. It clarifies the time frame for municipalities to complete necessary public service expansions, now explicitly stated as "infrastructure improvements." The bill also updates the advisory committee's composition requirements, modifies the process for municipalities to amend infrastructure improvement plans without a public hearing under certain conditions, and enhances transparency by requiring municipalities to provide notice of proposed tax or fee increases through social media and electronic communication tools. Lastly, it establishes guidelines for the assessment of water and wastewater fees related to capital improvements for new growth, ensuring alignment with the updated development fee structure.

Statutes affected:
Introduced Version: 9-463.05, 9-511.01, 11-1102, 9-500.05, 9-461.18, 19-142
House Engrossed Version: 9-463.05, 9-511.01, 9-500.05, 9-461.18
Senate Engrossed Version: 9-463.05, 9-499.15, 9-511.01, 9-500.05, 48-572