House Bill 232

Chair�s Name: Austin Scott

Committee: Governmental Affairs

House Sponsor: Edward Lindsey

Section 3 of HB 232 increases the required membership of representatives for the development, building, or real estate industries from 40 to 50 percent relating to hearings on proposed fee ordinances under the Georgia Development Impact Fee Act. 

Section 4 of HB 232 expands the accounting record�s requirements to include specific addresses of paying properties; the amount and date paid in each category; and the exemptions granted, including property, reason for the exemption, and revenue source for exempted�s proportionate share. 

For municipalities with more than 140,000 parcels of land, Section 4 of HB 232 requires that fees be expended on system improvement projects that have been identified in a comprehensive development plan; and have been chosen based on: proximity to areas from which funds were generated and greatest effect to those areas unless through an approved agreement between the municipality or county and the developer. 

For municipalities with more than 140,000 parcels of land, Section 4 of HB 232 adds that a municipality or county�s annual report must include any perceived inequities in the expenditure of impact fees.

The committee substitute received a Do Pass recommendation from the Governmental Affairs Committee and comes to the House Floor as a Rules Substitute under the Structured Rule.

Chairman Scott�s opinion of the committee substitute:

WHAT PROBLEM/OPPORTUNITY DOES THIS LEGISLATION ADDRESS?

HB 232 addresses the problem of the misuse of transportation impact fees assessed on new residential and commercial developments.  The purpose of an impact fee is to offset any disruptions to the local infrastructure created by a new development and construction.

HB 232 provides for improved expenditures of impact fees in a given service area.  It also attempts to increase community participation in development impact fee advisory committees, and change certain provisions relating to deposit and expenditure of fees and an annual report.

THIS LEGISLATION:

• Reduces the Size of Government:

The bill restrains local governments� use of impact fees by insuring that funds collected are used in the area where it is collected and for the purpose which it was collected.

• Strengthens the Traditional Family Structure

Impact fees, when used properly. Allow for safer, more family-friendly neighborhoods and residential areas and makes local government more responsive to their communities needs.

• Reduces the Tax Burden on our Citizens:

This bill restrains the local government�s use of impact fees on transportation projects directly impacted by the new development