All Roll Calls
Yes: 364 • No: 196
TexasSB 188389th Legislature Regular SessionSenateWALLET
Relating to the approval of land use assumptions, capital improvement plans, and impact fees.
Sponsored By: Daniel Alders, Paul Bettencourt (Republican), Brad Buckley, Paul Dyson
Signed by Governor
City Government--FinanceCity Government--Land Use & ZoningCounty Government--Land Use & ZoningFees & Other Nontax Revenue--LocalPolitical SubdivisionsAUDITS & AUDITORS
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 2 benefits, 0 costs, 3 mixed.
Property owners gain state fee-challenge help
Starting September 1, 2025, the Texas Attorney General can bring a case on behalf of a property owner. The case can challenge an impact fee or seek a refund under existing impact-fee refund rules. The law does not guarantee that the Attorney General takes a case or that an owner receives a refund.
New limits on development fee increases
Starting September 1, 2025, Texas local governments need a two-thirds governing-body vote to impose development impact fees. If they do not decide at the hearing, they must approve or reject the fee within 30 days. For approvals or increases from that date, fees cannot increase for three years after adoption or the latest increase, whichever is later. Governments may collect less than the adopted maximum or phase in collection up to that maximum over 10 years. These fees fund development-related improvements and can be passed along to homebuyers or renters; the law sets no fee amount.
Builders gain seats on fee committees
Starting September 1, 2025, real estate, development, or building representatives must hold at least 50% of impact-fee advisory seats. The previous minimum was 40%, and these representatives cannot be government employees or officials. The governing body appoints at least five members; areas outside city limits where these fees apply must have representation. The law removes the express option for a planning and zoning commission to serve under the former conditions. These committees help review land use assumptions, improvement plans, and impact fees.
Development fee audits expose spending details
For fees adopted from September 1, 2025, Texas local governments need independent audits before fee increases. Audits also apply before new fees in service areas where an impact fee was previously adopted. The auditor must be a Texas-licensed accountant with no other contracted work for the government or related entities in the prior 12 months. Audits cover applicable collections, interest, unspent money, fund allocations, unbuilt fee-funded projects, waived fees, refund requests, refunds, and credit errors or omissions. Governments must submit audits to their governing body and advisory committee and hold a public hearing on the results. Audits must be online at least 30 days before the required hearing notice and before the amendment hearing order is adopted. Impact-fee money may pay for the audit.
More public review, longer planning timelines
For hearings on or after November 30, 2025, Texas local governments must release planning materials earlier. Land use assumptions, the projection period, and planned improvements must be public at least 60 days before the first hearing notice. Proposed changes to plans or fees require a hearing, with materials showing any proposed amended fee per service unit. Earlier hearings follow prior law. Starting September 1, 2025, governments have 120 days instead of 60 after receiving a plan update to order a hearing.
Sponsors & Cosponsors
Sponsors
Daniel Alders
House
Paul Bettencourt
Republican • Senate
Brad Buckley
House
Paul Dyson
House
Cosponsors
Lois Kolkhorst
Republican • Senate
David Spiller
House
Roll Call Votes
Senate vote • 5/21/2025
Record vote
Yes: 26 • No: 5
House vote • 5/16/2025
Record vote
Yes: 87 • No: 32
House vote • 5/13/2025
Record vote
Yes: 61 • No: 75
House vote • 5/13/2025
Record vote
Yes: 75 • No: 62
Senate vote • 4/23/2025
Record vote
Yes: 26 • No: 5
Senate vote • 4/23/2025
Record vote
Yes: 26 • No: 5
Senate vote • 4/23/2025
Record vote
Yes: 26 • No: 5
Senate vote • 4/23/2025
Record vote
Yes: 26 • No: 5
Senate vote • Unknown
Committee vote: Local Government
Yes: 5 • No: 1
House vote • Unknown
Committee vote: Land & Resource Management
Yes: 6 • No: 1
Actions Timeline
Effective on 9/1/25
6/20/2025HouseSigned by the Governor
6/20/2025HouseSent to the Governor
5/22/2025HouseSigned in the House
5/22/2025HouseSigned in the Senate
5/22/2025SenateReported enrolled
5/22/2025SenateSenate concurs in House amendment(s)-reported
5/21/2025HouseRecord vote
5/21/2025SenateSenate concurs in House amendment(s)
5/21/2025SenateRead
5/21/2025SenateHouse amendment(s) laid before the Senate
5/21/2025SenateHouse passage as amended reported
5/19/2025SenateStatement(s) of vote recorded in Journal
5/16/2025HouseRecord vote (RV#2920)
5/16/2025HousePassed as amended
5/16/2025HouseAmended (1-Romero)
5/16/2025HouseLaid out as postponed business
5/16/2025HousePostponed (5/16/25 8:00 AM)
5/14/2025HouseRead 3rd time
5/14/2025HouseStatement(s) of vote recorded in Journal
5/13/2025HouseRecord vote (RV#2332)
5/13/2025HousePassed to 3rd reading as amended
5/13/2025HouseStatement(s) of vote recorded in Journal
5/13/2025HouseRecord vote (RV#2331)
5/13/2025HouseAmendment fails of adoption (4-Romero)
5/13/2025House
Bill Text
Engrossed
Enrolled
House Committee Report
Introduced
Senate Committee Report
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