TITLE: Relating to a temporary moratorium on the imposition of an impact fee.

SUMMARY: Relating to a temporary moratorium on the imposition of an impact fee.

FULL TEXT:
AN ACT relating to a temporary moratorium on the imposition of an impact fee. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 395, Local Government Code, is amended by adding Section 395.002 to read as follows: Sec. 395.002. TEMPORARY MORATORIUM ON IMPACT FEES. (a) Except as provided by Subsection (b), a political subdivision may not impose an impact fee under this chapter on or after September 1, 2025. (b) A political subdivision may impose an impact fee otherwise prohibited from being imposed under this section if: (1) the political subdivision pledged the specific fee before September 1, 2025, for the payment of any debt; and (2) not imposing the fee would impair the obligation of the contract by which the debt was created. (c) This section expires August 31, 2029. SECTION 2. This Act takes effect September 1, 2025.