Relating to the use of impact fees by a political subdivision.

SB 2427 clarifies how Texas local governments (like cities and counties) can use impact fees on new development projects. The bill defines impact fees as charges to cover actual costs of labor and materials for capital improvements (such as roads, water, or sewer systems) directly caused by new construction, while excluding fees for land dedications or certain utility connections. It requires that fees collected in areas without current services must align with a capital improvements plan and include a commitment to build within two years. The bill also allows local governments to reduce impact fees by spending funds on infrastructure projects, ensuring fees only cover necessary costs tied to new development.