Senate Bill sb2302c2

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    Florida Senate - 2005                    CS for CS for SB 2302

    By the Committees on Regulated Industries; Community Affairs;
    and Senator Bennett




    580-1992-05

  1                      A bill to be entitled

  2         An act relating to local government land

  3         development requirements; creating s. 163.3219,

  4         F.S.; providing legislative findings,

  5         declarations, and intent relating to local

  6         government impact fees; requiring impact fees

  7         to be based upon certain available data;

  8         requiring a credit against impact fees for

  9         certain taxes, fees, assessments, liens,

10         charges, or payments; providing criteria;

11         specifying a time period before collecting an

12         impact fee or fee increase; prohibiting

13         application of an impact fee to certain

14         building permits; requiring independent

15         certified public accountants who conduct audits

16         of local governments to report certain

17         information in accordance with generally

18         accepted accounting principles relating to

19         impact fees; requiring audit report statements

20         concerning compliance from certified public

21         accountants; limiting imposition of

22         administrative fees; requiring refund of an

23         impact fee under certain circumstances;

24         providing for the distribution of impact fees

25         collected within an incorporated area;

26         providing criteria for payment of impact fees;

27         authorizing a local government to establish a

28         schedule of payments; providing an exception;

29         exempting existing impact fees from application

30         of the act; providing an effective date.

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    Florida Senate - 2005                    CS for CS for SB 2302
    580-1992-05




 1  Be It Enacted by the Legislature of the State of Florida:

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 3         Section 1.  Section 163.3219, Florida Statutes, is

 4  created to read:

 5         163.3219  Local government impact fees; credits;

 6  reports; application; payment.--

 7         (1)  The Legislature finds and declares that there is

 8  an insufficient required connection between development and

 9  the impacts for which it is assessed; that benefits paid for

10  by impact fees do not always directly benefit the assessed

11  development; and that there is a lack of consistent criteria

12  for the determination of the appropriateness, amount, and

13  collection of impact fees. Consequently, there is a wide

14  disparity developing in the application and relative burden of

15  impact fees in different areas of the state. In some areas of

16  the state, impact fees are driving up the cost of housing to

17  an unreasonable degree, and there is insufficient oversight of

18  local governments that collect and use impact fees. Therefore,

19  it is the intent of the Legislature to ensure that impact fees

20  be imposed only to offset those capital costs specifically

21  caused by the development for which they are assessed; to

22  ensure that the impact fees directly benefit the fee payer; to

23  ensure greater consistency in the determination of the

24  appropriateness, amount, and collection of impact fees; to

25  ensure flexibility in the timing of payment of impact fees; to

26  provide appropriate notice to fee payers of new fees or fee

27  increases; and to ensure the accountability of local

28  governments for the collection and expenditure of all impact

29  fees.

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    Florida Senate - 2005                    CS for CS for SB 2302
    580-1992-05




 1         (2)  Any impact fee that is adopted or amended shall be

 2  based upon the most recent accurate and relevant data

 3  available.

 4         (3)(a)  Any local government that imposes an impact fee

 5  must include in the calculation of the amount of the fee to be

 6  paid a credit for the full present value of all taxes, fees,

 7  assessments, liens, charges, or other payments of any kind

 8  that have been or will be directly paid by the fee payer or

 9  property owner to the local government or other service

10  provider and that will be used to construct capital facilities

11  of the same type for which the impact fee is imposed. The

12  calculation of the credit shall estimate such payments for a

13  period of not less than 30 years; shall include adjustments in

14  the estimated annual payments to account for inflation,

15  increased taxable values, and increased payments; shall use a

16  discount rate no greater than the current costs of borrowing

17  to finance such capital improvements; and shall be based

18  solely upon the estimated payments from new development and

19  the property upon which the new development is located.

20         (b)  A local government that imposes an impact fee

21  shall also provide a credit for all taxes or other payments of

22  any kind through state, federal, or other revenues anticipated

23  to be expended to construct capital facilities of the same

24  type for which the impact fee is imposed.

25         (4)(a)  An impact fee or impact fee increase may be

26  collected only after 6 months following the date of final

27  adoption of the ordinance imposing the impact fee or impact

28  fee increase.

29         (b)  An impact fee or impact fee increase may not apply

30  to building permits for which a complete application has been

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    Florida Senate - 2005                    CS for CS for SB 2302
    580-1992-05




 1  filed with the local government prior to the effective date of

 2  the ordinance adopting the impact fee or impact fee increase.

 3         (5)(a)  Independent certified public accountants that

 4  conduct audits of units of local government pursuant to s.

 5  218.39 shall report, as part of the audit, the amounts,

 6  collections, expenditures, refunds, administrative expenses,

 7  and any other applicable information in accordance with

 8  generally accepted accounting principles relating to impact

 9  fees. Certified public accountants conducting audits of units

10  of local government pursuant to s. 218.39 shall report, as

11  part of the audit, whether or not the unit of local government

12  has complied with this section.

13         (b)  A local government may not impose an

14  administrative fee for collecting, accounting for, and

15  disbursing impact fees which exceeds the actual direct costs

16  associated with collecting, accounting for, and disbursing the

17  impact fees. In no event shall the administrative fee exceed 3

18  percent of the total fees collected.

19         (c)  Any local government that has not expended an

20  impact fee for the purpose for which the fee was collected

21  within 6 years after receiving the fee shall refund the fee,

22  with interest, to the owner of the property against which the

23  fee was assessed.

24         (d)  Impact fees must be directly proportional to the

25  needs and burdens specifically created by the development for

26  which the fee is assessed. If impact fees are collected from

27  development occurring within an incorporated area, the impact

28  fees for capital expenditures may be expended pursuant to an

29  interlocal agreement between the county and the municipality

30  in which the development occurs. The interlocal agreement

31  shall specify the areas of impact for development that occurs

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    Florida Senate - 2005                    CS for CS for SB 2302
    580-1992-05




 1  within or adjacent to a municipality and shall direct the

 2  expenditure of impact fees in a manner that directly benefits

 3  the property for which the fee is assessed. If there is no

 4  interlocal agreement for expending such impact fees and the

 5  development occurs within municipal limits, such moneys from

 6  the impact fee shall be expended within municipal limits or

 7  outside municipal limits if the expenditures directly benefit

 8  the property for which the fee is assessed. If the development

 9  occurs outside municipal limits, the moneys from the impact

10  fee may be expended outside municipal limits if the

11  expenditures directly benefit the property for which the fee

12  is assessed.

13         (6)  Any local government that collects impact fees may

14  permit the fees to be paid in whole or in part at the time of

15  the first closing to transfer real estate or title following

16  issuance of a certificate of occupancy for the property

17  subject to the fee and may allow any remainder to be assessed

18  as part of the local government's tax bill and paid over a

19  10-year to 20-year period. If the fee is not fully paid at the

20  time of closing, the local government may establish a schedule

21  of payments including any costs of deferring payment of the

22  fee.

23         (7)  For purposes of the section, an impact fee does

24  not include any charge or fee imposed for a municipally owned

25  utility, including, but not limited to, electric, gas, water,

26  or wastewater facilities.

27         Section 2.  Existing impact fees that were adopted

28  before July 1, 2005, may remain in place and effective.

29  Revisions made in order to comply with this act are not

30  subject to section 163.3219(4), Florida Statutes. New impact

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    Florida Senate - 2005                    CS for CS for SB 2302
    580-1992-05




 1  fee ordinances, or increases to impact fees, which are adopted

 2  on or after July 1, 2005, must comply with this act.

 3         Section 3.  This act shall take effect July 1, 2005.

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    Florida Senate - 2005                    CS for CS for SB 2302
    580-1992-05




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                       CS/Senate Bill 2302

 3                                 

 4  The committee substitute (CS) amends s. 163.3219(1), F.S., to
    provide the additional findings that there is an insufficient
 5  connection between development and impacts for which fees are
    assessed, and that the benefits paid for by impact fees do not
 6  always directly benefit the assessed development.  The CS
    provides that it is the Legislative intent that impact fees
 7  should only be imposed to offset those capital costs
    specifically caused by the development, and to ensure that the
 8  impact fees directly benefit the fee payer.

 9  The CS amends s. 163.3219(3)(b), F.S., to provide that the
    local government must provide a credit for taxes and other
10  payments of any kind through state, federal, and other
    revenues anticipated as part of the funding of the capital
11  facilities for which the impact fee is being imposed.

12  The CS amends s. 163.3219(5)(a), F.S., to delete the
    requirement for an annual report to the Auditor General by
13  local governments.  It requires that certified public
    accountants (CPA) that audit a local government unit  report
14  specified information in accordance with generally accepted
    accounting principles.  It also requires that CPA's report
15  whether or not the local government unit has complied with s.
    163.3219, F.S.
16  
    The CS amends s. 163.3219(5)(c), F.S., to provide that the
17  required refund is to the owner of the property against which
    the fee was collected.
18  
    The CS amends s. 163.3219(5)(d), F.S., to require that impact
19  fees be directly proportional to the needs and burdens created
    by the development.  It also requires that interlocal
20  agreements specify certain areas of impact and manner of the
    expenditure of impact fees.
21  
    The CS amends s. 163.3219(6), F.S., to provide that a local
22  government collecting an impact fee may, rather than shall,
    allow the fees to be paid in the specified manner at first
23  closing.  It also permits, if the fee is paid in part, that
    the local government may, rather than shall, allow the
24  remainder to be assessed as part of the tax bill and paid over
    a 10-20 year period.
25  
    The CS creates section 2 of the bill to provide that impact
26  fees that were adopted before July 1, 2005 may remain in place
    and effective.  It provides that revisions made to comply with
27  the act are not subject to s. 163.3219(4), F.S., but requires
    compliance for new fee ordinances, or increases to impact
28  fees, that are adopted after July 1, 2005.

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