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SPONSOR: |
Lujan |
DATE TYPED: |
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HB |
630/aHFl#1/aSPAC |
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SHORT TITLE: |
Make Schools Payable by Impact Fees |
SB |
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ANALYST: |
Kehoe |
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APPROPRIATION
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Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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NFI |
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See Narrative |
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(Parenthesis
( ) Indicate Expenditure Decreases)
Relates to Senate Bill 650
REVENUE
|
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
|
FY03 |
FY04 |
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NFI |
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(Parenthesis ( ) Indicate Revenue Decreases)
Deficiencies Correction Unit (DCU)
State Department of Education (SDE)
SUMMARY
Synopsis of SPAC Amendments
Senate Public Affairs Committee amendments to House Bill 630 are as follows:
Item
1 strikes the House Floor Amendment #1.
Item
2 corrects the title of the bill to include “broadening the definition of
capital improvements.”
Item
3 amends the definition of “capital improvement” as used in the Development
Fees Act to include “school buildings and essential equipment costing $10,000
or more and having a life expectancy of ten years or more.”
Synopsis
of HFl Amendment
House Floor Amendment #1 to House Bill 630 removes school buildings and essential equipment costing $10,000 or more and having a life expectancy of ten years or more from the list of items payable by impact fees. The amendment also adds buildings for fire, police and rescue and essential equipment costing $10,000 or more and having a life expectancy of ten years or more to the list of items payable by impact fees.
Synopsis
of Original Bill
House Bill 630 relates
to development fees; removing schools from the list of items not payable by
impact fees.
Significant
Issues
House Bill 630 amends the Development Fees Act
to provide that schools are eligible for the use of revenues generated by
impact fees. Impact fees are monetary
assessments imposed by a municipality or a county on new development in order
to generate revenue for funding or recouping the costs of capital improvements
or facility expansions necessitated by and attributable to new
development. Impact fees are most often
used for capital improvement that have a life expectancy of ten or more years
and are owned and operated by or on behalf of a municipality or county such as
roads, water and sewer systems.
Enactment of House Bill 630 will result in
schools being eligible for certain capital improvement projects funded through
impact fees.
FISCAL IMPLICATIONS
School districts affected by increased development in their service area should benefit from the availability of revenue generated by impact fees. However, some of the burden and responsibility for infrastructure development could be shifted to developers.
RELATIONSHIP
Senate Bill 650
removes schools and libraries as payable capital improvements by impact
fees and specifically lists a “school building” as an eligible capital
improvement within the definitions.
LMK/prr:yr:njw