Senate Bill sb1196

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    Florida Senate - 2006                                  SB 1196

    By Senator Constantine





    22-460-06

  1                      A bill to be entitled

  2         An act relating to impact fees; creating s.

  3         163.31801, F.S.; creating the "Impact Fee Act;"

  4         providing legislative intent; providing

  5         definitions; requiring that an impact fee meet

  6         certain specified requirements; authorizing a

  7         local government to adopt an ordinance levying

  8         an impact fee as authorized by law in order to

  9         fund the infrastructure necessitated by new

10         growth; providing for public notice before an

11         ordinance levying an impact fee is enacted;

12         requiring that an ordinance levying an impact

13         fee specify certain criteria used in

14         calculating and imposing the impact fee;

15         requiring that an ordinance levying an impact

16         fee specify certain requirements for the use of

17         revenue from an impact fee; requiring that an

18         ordinance levying an impact fee provide a

19         process for refunding an impact fee;

20         authorizing an ordinance levying an impact fee

21         to provide certain credits; authorizing an

22         ordinance levying an impact fee to exempt all

23         or part of a development from an impact fee;

24         providing certain dates for compliance;

25         providing an effective date.

26  

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

28  

29         Section 1.  Section 163.31801, Florida Statutes, is

30  created to read:

31  

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    Florida Senate - 2006                                  SB 1196
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 1         163.31801  Impact fees; short title; intent;

 2  definitions; ordinances levying impact fees.--

 3         (1)  This part may be cited as the "Impact Fee Act."

 4         (2)  The Legislature finds that impact fees are an

 5  important source of revenue for a local government to use in

 6  funding the infrastructure necessitated by new growth.  The

 7  Legislature further finds that impact fees are an outgrowth of

 8  the home rule power of a local government to provide certain

 9  services within its jurisdiction.  Due to the increased

10  reliance of local governments on impact fees, it is the intent

11  of the Legislature to ensure that impact fees throughout the

12  state are used to maintain adequate public facilities,

13  represent a proportionate share of the cost of each public

14  facility, and promote orderly growth and development.

15         (3)  As used in this section, the term:

16         (a)  "Capital outlay project" means the buildings,

17  equipment, and structures that are built, installed, or

18  established to serve the need for infrastructure in a new or

19  expanded development, including, but not limited to,

20  transportation, sanitary sewer, solid waste, drainage, potable

21  water, education, parks, and recreational projects.

22         (b)  "Impact fee" means a total or partial

23  reimbursement to a local government for the cost of the

24  additional public facilities or services necessitated by new

25  development or the expansion of existing development.

26         (c)  "Local government" means a county, municipality,

27  or special district that is authorized by its enabling

28  legislation or by general law to impose an impact fee.

29         (d)  "Public notice" means notice as required by s.

30  125.66(2) for a county, s. 166.041(3)(a) for a municipality,

31  or s. 189.417 for a special district.  The procedures for

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    Florida Senate - 2006                                  SB 1196
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 1  public notice which are required in this part are established

 2  as the minimum procedures for public notice.

 3         (e)  "Rational nexus" means a reasonable connection.

 4         (4)  An impact fee must:

 5         (a)  Be a one-time charge, although partial payments

 6  may be collected at certain times over the course of the

 7  development process;

 8         (b)  Be used for capital outlay projects only.

 9  Operating costs and infrastructure deficiencies may not be

10  funded by the revenue from the impact fee; and

11         (c)  Represent a proportionate share of the cost of the

12  capital outlay project that is needed to serve the new

13  development.

14         (5)  A local government is authorized by its home rule

15  power to adopt an ordinance levying an impact fee within its

16  jurisdiction in order to fund the need for infrastructure

17  created by new development or the expansion of existing

18  development.  A special district may levy an impact fee only

19  if it is authorized to do so by general law.

20         (6)  Before enacting an ordinance levying an impact

21  fee, a county, municipality, or special district must give

22  public notice of the proposed enactment.

23         (7)  The ordinance levying an impact fee must:

24         (a)  Specify the geographical area to be served by the

25  collection of the impact fee;

26         (b)  Specify that there is a rational nexus between the

27  anticipated need for the capital outlay project and the growth

28  generated by the new development;

29         (c)  Specify that there is a rational nexus between the

30  anticipated use of the revenue that is collected from the

31  

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    Florida Senate - 2006                                  SB 1196
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 1  impact fee and the benefits that will accrue to the new

 2  development upon completion of the capital outlay project;

 3         (d)  Specify the criteria and methodology used to

 4  calculate the amount of the impact fee and the assumptions on

 5  which they are based;

 6         (e)  Demonstrate that the impact fee does not exceed a

 7  proportionate share of the cost of the capital outlay project

 8  or system improvement needed to serve the new development;

 9         (f)  Specify certain times during the development

10  process when partial payments of the impact fee are due;

11         (g)  Require that the revenue from the impact fee is

12  spent only on the capital outlay project for which the fee was

13  collected;

14         (h)  Specify that the revenue from the impact fee that

15  is collected by a local government shall be deposited into an

16  interest-bearing account.  The interest from the account shall

17  also be used only for the capital outlay project;

18         (i)  Specify that the revenue from the impact fee and

19  disbursement shall be accounted for and reported separately

20  from other governmental sources of revenue.  The accounting

21  and reporting of the revenue from an impact fee shall be

22  available for audit pursuant to s. 218.39; and

23         (j)  Provide a process for refunding an impact fee that

24  was not expended on or encumbered for the capital outlay

25  project for which it was collected within a reasonable amount

26  of time, not to exceed 8 years following the date of the

27  adoption of the ordinance.  A refund may be required after the

28  time for construction of the capital outlay project has

29  expired.  An ordinance levying an impact fee must specify who

30  is entitled to the refund, whether it is the developer, the

31  

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    Florida Senate - 2006                                  SB 1196
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 1  property owner of record at the time of the refund, or some

 2  other individual or entity.

 3         (8)  An ordinance levying an impact fee may provide

 4  credits for outside funding sources, improvements initiated by

 5  developers, in-kind contributions, and local tax payments that

 6  fund capital improvements.

 7         (9)  An ordinance levying an impact fee may exempt all

 8  or part of a development from the impact fee.  The ordinance

 9  must specify the criteria used in determining an exemption and

10  the alternative source of revenue which will offset the fee

11  that is exempted.

12         (10)  An ordinance levying an impact fee which is

13  enacted before July 1, 2006, need not comply with the

14  provisions of this section until July 1, 2008.

15         Section 2.  This act shall take effect July 1, 2006.

16  

17            *****************************************

18                          SENATE SUMMARY

19    Provides a short title. Provides legislative intent.
      Provides definitions. Requires that an impact fee meet
20    certain specified requirements. Allows a local government
      to adopt an ordinance levying an impact fee as authorized
21    by law in order to fund the infrastructure necessitated
      by new growth. Provides for public notice before an
22    ordinance levying an impact fee is enacted. Requires that
      an ordinance levying an impact fee specify certain
23    criteria used in calculating and imposing the impact fee.
      Requires that an ordinance levying an impact fee specify
24    certain requirements for the use of revenue from an
      impact fee. Requires that an ordinance levying an impact
25    fee provide a process for refunding an impact fee. Allows
      an ordinance levying an impact fee to provide certain
26    credits. Allows an ordinance levying an impact fee to
      exempt all or part of a development from an impact fee.
27    Provides certain dates for compliance.

28  

29  

30  

31  

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