HB 5199

relating to the authority of a municipality or county to enact and
impose an impact fee for a roadway facility or a safety improvement
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 212.004, Local Government Code, is
amended by amending Subsection (g) and adding Subsection (h) to
(g)  Except as provided by Subsection (h), the [The]
governing body of a municipality or the municipal authority
responsible for approving plats may not require an analysis, study,
document, agreement, or similar requirement to be included in or as
part of an application for a plat, development permit, or
subdivision of land that is not explicitly allowed by state law.
(h)  The governing body of a municipality or the municipal
authority responsible for approving plats may require a traffic
analysis be included as part of a plat application if the traffic
analysis is for the purpose of imposing an impact fee under Chapter
SECTION 2.  Section 212.103, Local Government Code, is
amended by adding Subsection (d) to read as follows:
(d)  This section does not apply to an impact fee imposed by a
municipality under Chapter 395.
SECTION 3.  Section 232.001, Local Government Code, is
amended by amending Subsection (h) and adding Subsection (i) to
(h)  Except as provided by Subsection (i), the [The]
commissioners court or the county authority responsible for
approving plats may not require an analysis, study, document,
agreement, or similar requirement to be included in or as part of an
application for a plat, development permit, or subdivision of land
that is not explicitly required by state law.
(i)  The commissioners court or the authority responsible
for approving plats may require a traffic analysis be included as
part of a plat application if the traffic analysis is for the
purpose of imposing an impact fee under Chapter 395.
SECTION 4.  Section 395.001(7), Local Government Code, is
(7)  "Political subdivision" means:
(B)  [,] a district or authority created under
Article III, Section 52, or Article XVI, Section 59, of the Texas
(C)  a county, but only for the purposes
authorized [set forth] by Section 395.079 or 395.0795 [, certain
counties described by that section].
SECTION 5.  Section 395.011, Local Government Code, is
amended by amending Subsections (b) and (c) and adding Subsections
(b-1) and (d) to read as follows:
(b)  Political subdivisions may enact or impose impact fees
on land within their corporate boundaries or extraterritorial
jurisdictions only by complying with this chapter, except that
impact fees may not be enacted or imposed by a political subdivision
described by Section 395.001(7)(B) in the extraterritorial
jurisdiction for roadway facilities.
(b-1)  A municipality may only enact or impose an impact fee
for a roadway facility or safety improvement to a roadway facility
in the municipality's extraterritorial jurisdiction if:
(1)  the roadway facility or safety improvement is for
a new development or new municipal utility district; and
(2)  the impact fee is in proportion to the impact the
new development or district will have on the municipality.
(c)  Except as provided by Subsections (b-1) and (d), a [A]
municipality may contract to provide capital improvements, except
roadway facilities, to an area outside its corporate boundaries and
extraterritorial jurisdiction and may charge an impact fee under
the contract, but if an impact fee is charged in that area, the
municipality must comply with this chapter.
(d)  A municipality may contract to provide a roadway
facility in an area outside the corporate boundaries and
extraterritorial jurisdiction of the municipality to:
(1)  a new development whose roadway facilities
directly connect with the roadway facilities of the municipality;
(2)  a municipal utility district bordering the
extraterritorial jurisdiction of the municipality.
SECTION 6.  Section 395.012, Local Government Code, is
amended by adding Subsection (f) to read as follows:
(f)  A municipality may use funds collected from an impact
fee imposed under this subchapter to construct or install a safety
improvement to a roadway facility.
SECTION 7.  Section 395.013, Local Government Code, is
Sec. 395.013.  ITEMS NOT PAYABLE BY FEE.  (a) Impact fees
may not be adopted or used to pay for:
(1)  construction, acquisition, or expansion of public
facilities or assets other than capital improvements or facility
expansions identified in the capital improvements plan;
(2)  repair, operation, or maintenance of existing or
new capital improvements or facility expansions;
(3)  upgrading, updating, expanding, or replacing
existing capital improvements to serve existing development in
order to meet stricter safety, efficiency, environmental, or
(4)  upgrading, updating, expanding, or replacing
existing capital improvements to provide better service to existing
(5)  administrative and operating costs of the
political subdivision, except the Edwards Underground Water
District or a river authority that is authorized elsewhere by state
law to charge fees that function as impact fees may use impact fees
to pay its administrative and operating costs;
(6)  principal payments and interest or other finance
charges on bonds or other indebtedness, except as allowed by
(b)  Subsection (a)(2) does not apply to an impact fee
(1)  a municipality for a roadway facility or safety
improvement to a roadway facility described by Section
(2)  a county for a roadway facility or safety
improvement to a roadway facility described by Section 395.0795.
SECTION 8.  Subchapter D, Chapter 395, Local Government
Code, is amended by adding Section 395.0795 to read as follows:
Sec. 395.0795.  COUNTY IMPACT FEE FOR ROADWAY FACILITIES.
(a)  A county that maintains and operates a roadway facility is
authorized to impose an impact fee for a roadway facility or safety
improvement to a roadway facility in the unincorporated area of the
county necessary to accommodate a new development or new municipal
(b)  An impact fee authorized by Subsection (a) may be
imposed on a new development or new municipal utility district at
the time the county approves a plat application for the development
or for a project located in the district as provided by Chapter 232.
(c)  An impact fee authorized by Subsection (a) may be
imposed only to pay a cost authorized by Section 395.012 to
(1)  a capital improvement necessary to accommodate the
impact that a new development or new municipal utility district
will have on the roadway facilities of the county;
(2)  transportation infrastructure that meets the
standards of a capital improvement; or
(3)  a safety improvement to a roadway facility if the
capital improvement plan of the county indicates a need for the
(d)  An impact fee authorized by Subsection (a) must be in
proportion to the impact a new development or new municipal utility
district will have on the county.
SECTION 9.  The changes in law made by this Act apply only to
an impact fee imposed on or after the effective date of this Act.  An
impact fee imposed before the effective date of this Act is governed
by the law in effect on the date the impact fee was imposed, and the
former law is continued in effect for that purpose.
SECTION 10.  This Act takes effect September 1, 2025.