HB 1431CS

CHAMBER ACTION




1The Growth Management Committee recommends the following:
2
3     Council/Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to impact fees; creating s. 163.31801,
7F.S.; creating the "Impact Fee Act"; providing legislative
8intent; providing definitions; requiring that an impact
9fee meet certain specified requirements; authorizing local
10governments to adopt ordinances to levy impact fees to
11fund certain infrastructure needs; requiring public notice
12before such ordinances are enacted; requiring such
13ordinances to specify certain criteria for calculating and
14imposing impact fees; specifying certain requirements for
15the use of fee revenues; providing a process for refunding
16fees, including certain credits; specifying the use of fee
17revenues to supplement certain funds; authorizing certain
18credits and exemptions for certain developments; providing
19certain dates for compliance; providing an effective date.
20
21Be It Enacted by the Legislature of the State of Florida:
22
23     Section 1.  Section 163.31801, Florida Statutes, is created
24to read:
25     163.31801  Impact fees; short title; intent; definitions;
26ordinances levying impact fees.--
27     (1)  This section may be cited as the "Impact Fee Act."
28     (2)  The Legislature finds that impact fees are an
29important source of revenue for a local government to use in
30funding the infrastructure necessitated by new growth. The
31Legislature further finds that impact fees are an outgrowth of
32the home rule power of a local government to provide certain
33services within its jurisdiction. Due to the increased reliance
34of local governments on impact fees, it is the intent of the
35Legislature to ensure that impact fees throughout the state are
36used to maintain adequate public facilities, represent a
37proportionate share of the cost of each public facility, and
38promote orderly growth and development.
39     (3)  As used in this section, the term:
40     (a)  "Capital outlay project" means the buildings,
41equipment, and structures that are built, installed, or
42established to serve the need for infrastructure in a new or
43expanded development, including, but not limited to,
44transportation, sanitary sewer, solid waste, drainage, potable
45water, education, parks, and recreational projects.
46     (b)  "Impact fee" means a total or partial reimbursement to
47a local government for the cost of the additional public
48facilities or services necessitated by new development or the
49expansion of existing development.
50     (c)  "Local government" means a county, municipality, or
51special district that is authorized by its enabling legislation
52or by general law to impose an impact fee.
53     (d)  "Public notice" means notice as required by s.
54125.66(2) for a county, s. 166.041(3)(a) for a municipality, or
55s. 189.417 for a special district. The procedures for public
56notice which are required in this section are established as the
57minimum procedures for public notice.
58     (e)  "Rational nexus" means a reasonable connection.
59     (4)  An impact fee must:
60     (a)  Be a one-time charge, although partial payments may be
61collected at certain times over the course of the development
62process.
63     (b)  Be used for capital outlay projects only. Operating
64costs and infrastructure deficiencies may not be funded by the
65revenue from the impact fee.
66     (c)  Represent a proportionate share of the cost of the
67capital outlay project that is needed to serve the new
68development.
69     (5)  A local government is authorized by its home rule
70power to adopt an ordinance levying an impact fee within its
71jurisdiction in order to fund the need for infrastructure
72created by new development or the expansion of existing
73development. A special district may levy an impact fee only if
74it is authorized to do so by general law.
75     (6)  Before enacting an ordinance levying an impact fee, a
76county, municipality, or special district must give public
77notice of the proposed enactment.
78     (7)  The ordinance levying an impact fee must:
79     (a)  Specify the geographical area to be served by the
80collection of the impact fee.
81     (b)  Specify that there is a rational nexus between the
82anticipated need for the capital outlay project and the growth
83generated by the new development.
84     (c)  Specify that there is a rational nexus between the
85anticipated use of the revenue that is collected from the impact
86fee and the benefits that will accrue to the new development
87upon completion of the capital outlay project.
88     (d)  Specify the criteria and methodology used to calculate
89the amount of the impact fee and the assumptions on which they
90are based.
91     (e)  Demonstrate that the impact fee does not exceed a
92proportionate share of the cost of the capital outlay project or
93system improvement needed to serve the new development.
94     (f)  Specify certain times during the development process
95when partial payments of the impact fee are due.
96     (g)  Require that the revenue from the impact fee is spent
97only on the capital outlay project for which the fee was
98collected.
99     (h)  Specify that the revenue from the impact fee that is
100collected by a local government shall be deposited into an
101interest-bearing account. The interest from the account shall
102also be used only for the capital outlay project.
103     (i)  Specify that the revenue from the impact fee and
104disbursement shall be accounted for and reported separately from
105other governmental sources of revenue. The accounting and
106reporting of the revenue from an impact fee shall be available
107for audit pursuant to s. 218.39.
108     (j)  Provide a process for refunding an impact fee that was
109not expended on or encumbered for the capital outlay project for
110which it was collected within a reasonable amount of time, not
111to exceed 8 years following the date of the adoption of the
112ordinance. A refund may be required after the time for
113construction of the capital outlay project has expired. An
114ordinance levying an impact fee must specify who is entitled to
115the refund, whether it is the developer, the property owner of
116record at the time of the refund, or some other individual or
117entity.
118     (8)  An ordinance levying an impact fee must include the
119calculation of the amount of the fee to be paid a credit for the
120full present value of all taxes, fees, assessments, liens,
121charges, or other payments of any kind that have been or will be
122available to the local government or other facility provider and
123that will be used to construct capital outlay projects of the
124same type for which the impact fee is imposed. The calculation
125of the credit shall:
126     (a)  Estimate such payments for a period of not less than
127the useful life of the type of project for which the fee is
128imposed.
129     (b)  Include adjustments in the estimated annual payments
130to account for inflation, increased taxable values, and
131increased payments.
132     (c)  Use a discount rate no greater than the current costs
133of borrowing to finance such capital improvements.
134     (d)  Be based solely upon the estimated payments from new
135development and the property upon which the new development is
136located.
137     (9)  A local government imposing an impact fee shall also
138provide a credit for all taxes or other payments of any kind
139through state, federal, or other revenues anticipated to be
140expended to construct capital outlay projects of the same type
141for which the impact fee is imposed.
142     (10)  An ordinance levying an impact fee must specify that
143impact fees may only be used to supplement other funds utilized
144to construct capital outlay projects.
145     (11)  An ordinance levying an impact fee may provide
146credits for outside funding sources, improvements initiated by
147developers, in-kind contributions, and local tax payments that
148fund capital improvements.
149     (12)  An ordinance levying an impact fee may exempt all or
150part of a development from the impact fee. The ordinance must
151specify the criteria used in determining an exemption and the
152alternative source of revenue which will offset the fee that is
153exempted.
154     (13)  An ordinance levying an impact fee which is enacted
155before July 1, 2006, need not comply with the provisions of this
156section until July 1, 2008.
157     Section 2.  This act shall take effect July 1, 2006.


CODING: Words stricken are deletions; words underlined are additions.