S.B. No. 1883 amends the Local Government Code to enhance the processes surrounding land use assumptions, capital improvement plans, and impact fees. Key changes include a requirement for political subdivisions to make land use assumptions and capital improvement plans available to the public at least 60 days before the first notice of a public hearing. Additionally, the bill stipulates that the approval of an impact fee requires a two-thirds affirmative vote from the governing body of the political subdivision. It also introduces a new section that prohibits any increase in impact fees for three years from the date they were adopted or last increased, while allowing for a phased collection schedule.

Furthermore, the bill mandates an independent financial audit before any increase in existing impact fees or the adoption of new ones, ensuring transparency and accountability in the use of collected fees. The audit must be conducted by a certified public accountant who has no prior contractual relationship with the political subdivision. The results of the audit must be made public, and a public hearing must be held to discuss the findings before any fee adjustments can be made. The bill also allows the attorney general to represent property owners in contesting impact fees or seeking refunds. The provisions of this act will take effect on September 1, 2025.

Statutes affected:
Introduced: Local Government Code 395.043, Local Government Code 395.051, Local Government Code 395.053, Local Government Code 395.054, Local Government Code 395.058 (Local Government Code 395)
Senate Committee Report: Local Government Code 395.043, Local Government Code 395.051, Local Government Code 395.053, Local Government Code 395.054, Local Government Code 395.058, Local Government Code 395.077, Local Government Code 395.078 (Local Government Code 395)
Engrossed: Local Government Code 395.043, Local Government Code 395.051, Local Government Code 395.053, Local Government Code 395.054, Local Government Code 395.058, Local Government Code 395.077, Local Government Code 395.078 (Local Government Code 395)
House Committee Report: Local Government Code 395.043, Local Government Code 395.051, Local Government Code 395.053, Local Government Code 395.054, Local Government Code 395.058, Local Government Code 395.077, Local Government Code 395.078 (Local Government Code 395)
Enrolled: Local Government Code 395.043, Local Government Code 395.051, Local Government Code 395.053, Local Government Code 395.054, Local Government Code 395.058, Local Government Code 395.077, Local Government Code 395.078 (Local Government Code 395)