S.B. No. 2427 amends the Local Government Code to clarify the use of impact fees by political subdivisions in Texas. The bill redefines "impact fee" to specify that it is a charge imposed on new development to cover the actual costs of labor, including fees for surveyors, engineers, and materials necessary for capital improvements or facility expansions. It removes previous language that included various types of fees and clarifies that impact fees cannot be used for improvements not identified in a capital improvements plan. Additionally, the bill allows municipalities to pledge impact fees as security for debt service on bonds related to these improvements.

The legislation also outlines conditions under which impact fees can be assessed and collected, particularly in areas where services are not currently available. It allows for credits against impact fees for costs incurred by developers for labor and materials related to capital improvements. Furthermore, political subdivisions are permitted to use funds from any lawful source to reduce the amount of impact fees. The changes in law will apply only to impact fees enacted or imposed after the bill's effective date, with existing fees governed by the previous law.

Statutes affected:
Introduced: Local Government Code 395.001, Local Government Code 395.012, Local Government Code 395.019, Local Government Code 395.021, Local Government Code 395.023, Local Government Code 395.079 (Local Government Code 395)