SB 1883

relating to the approval of land use assumptions, capital
improvement plans, and impact fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 395.043, Local Government Code, is
Sec. 395.043.  INFORMATION ABOUT LAND USE ASSUMPTIONS AND
CAPITAL IMPROVEMENTS PLAN AVAILABLE TO PUBLIC.  At least 60 days [On
or] before the date of the first publication of the notice of the
hearing on the land use assumptions and capital improvements plan,
the political subdivision shall make available to the public its
land use assumptions, the time period of the projections, and a
description of the capital improvement facilities that may be
SECTION 2.  Section 395.051(a), Local Government Code, is
(a)  The political subdivision, within 30 days after the date
of the public hearing on the imposition of an impact fee, shall
approve or disapprove the imposition of an impact fee.  Approval of
the imposition of an impact fee by a political subdivision requires
an affirmative vote of two-thirds of the members of the governing
body of the political subdivision.
SECTION 3.  Subchapter C, Chapter 395, Local Government
Code, is amended by adding Section 395.0515 to read as follows:
Sec. 395.0515.  LIMITATION ON IMPACT FEE INCREASE.  A
political subdivision may not increase the amount of an impact fee
for three years from the later of the date the fee was adopted or
most recently increased, if applicable.
SECTION 4.  Section 395.053, Local Government Code, is
Sec. 395.053.  HEARING ON UPDATED LAND USE ASSUMPTIONS AND
CAPITAL IMPROVEMENTS PLAN.  The governing body of the political
subdivision shall, within 120 [60] days after the date it receives
the update of the land use assumptions and the capital improvements
plan, adopt an order setting a public hearing to discuss and review
the update and shall determine whether to amend the plan.
SECTION 5.  Section 395.054, Local Government Code, is
Sec. 395.054.  HEARING ON AMENDMENTS TO LAND USE
ASSUMPTIONS, CAPITAL IMPROVEMENTS PLAN, OR IMPACT FEE.  A public
hearing must be held by the governing body of the political
subdivision to discuss the proposed ordinance, order, or resolution
amending land use assumptions, the capital improvements plan, or
the impact fee.  At least 60 days [On or] before the date of the
first publication of the notice of the hearing on the amendments,
the land use assumptions and the capital improvements plan,
including the amount of any proposed amended impact fee per service
unit, shall be made available to the public.
SECTION 6.  Section 395.058(b), Local Government Code, is
(b)  The advisory committee is composed of not less than five
members who shall be appointed by a majority vote of the governing
body of the political subdivision.  Not less than 50 [40] percent of
the membership of the advisory committee must be representatives of
the real estate, development, or building industries who are not
employees or officials of a political subdivision or governmental
entity.  [If the political subdivision has a planning and zoning
commission, the commission may act as the advisory committee if the
commission includes at least one representative of the real estate,
development, or building industry who is not an employee or
official of a political subdivision or governmental entity.  If no
such representative is a member of the planning and zoning
commission, the commission may still act as the advisory committee
if at least one such representative is appointed by the political
subdivision as an ad hoc voting member of the planning and zoning
commission when it acts as the advisory committee.]  If the impact
fee is to be applied in the extraterritorial jurisdiction of the
political subdivision, the membership must include a
SECTION 7.  Sections 395.043 and 395.054, Local Government
Code, as amended by this Act, apply only to a land use assumption,
capital improvement plan, or impact fee that is the subject of a
public hearing required to be held by Section 395.042 or 395.053 of
that code, as applicable, that is held on or after the 90th day
after the effective date of this Act.  A land use assumption,
capital improvement plan, or impact fee subject to a public hearing
that is held before the 90th day after the effective date of this
Act is governed by the law in effect immediately before the
effective date of this Act, and the former law is continued in
SECTION 8.  Section 395.051(a), Local Government Code, as
amended by this Act, applies only to the approval of the imposition
of an impact fee on or after the effective date of this Act.
SECTION 9.  Section 395.0515, Local Government Code, as
added by this Act, applies only to the increase of the amount of an
impact fee that is adopted on or after the effective date of this
SECTION 10.  This Act takes effect September 1, 2025.