Relating to the authority of a municipality to use funds collected from an impact fee to construct or install a safety improvement to a roadway facility.

SB 887 allows Texas municipalities to use impact fees collected from new developments for roadway safety improvements (like crosswalks or traffic signals), rather than general infrastructure. It requires cities to confirm in their capital improvement plans that the project doesn’t need additional road capacity but specifically addresses safety needs, and that a transportation study for the development shows no need for more capacity. This bill directly affects cities collecting impact fees and developers paying those fees, as it creates a new pathway for directing funds toward safety. The law amends Texas Local Government Code sections 395.012(f) and adds section 395.0121, effective September 1, 2025, unless passed with a two-thirds vote.