Chapter
305
2007 -- H 5696 AS AMENDED
Enacted 07/06/07
A N A C T
RELATING
TO TOWNS AND CITIES - DEVELOPMENT IMPACT FEE ACT
Introduced
By: Representatives San Bento, and Schadone
Date
Introduced: February 28, 2007
It is enacted by the General Assembly as
follows:
SECTION 1. Section
45-22.4-5 of the General Laws in Chapter 45-22.4 entitled "Rhode
Island Development Impact Fee Act" is
hereby amended to read as follows:
45-22.4-5.
Collection and expenditure of impact fees. -- (a) The collection and
expenditure of impact fees must be reasonably
related to the benefits accruing to the development
paying the fees. The ordinance may consider the
following requirements:
(1) Upon
collection, impact fees must be deposited in a special proprietary fund, which
shall be invested with all interest accruing to
the trust fund;
(2) Within eight
(8) years of the date of collection, impact fees shall be expended or
encumbered for the construction of public facilities'
capital improvements of reasonable benefit to
the development paying the fees and that are
consistent with the capital improvement program;
(3) Where the
expenditure or encumbrance of fees is not feasible within eight (8) years,
the governmental entity may retain impact fees
for a longer period of time if there are compelling
reasons for the longer period. In no case shall
impact fees be retained longer than twelve (12)
years.
(b) All impact
fees imposed pursuant to the authority granted in this chapter shall be
assessed upon the issuance of a building permit
or other appropriate permission to proceed with
development and collected in full upon
to the issuance of certificate of shall be collected in full
upon the issuance of the certificate of occupancy or other
final action authorizing the intended use
of a structure. Nothing contained in this
chapter shall prevent a municipality from continuing to
assess and/or collect an impact fee at an
earlier time so long as the municipality does so pursuant
to an ordinance enacted at least ninety (90)
days prior to the effective date of this chapter [July
22, 2000].
(c) A
governmental entity may recoup costs of excess capacity in existing capital
facilities, where the excess capacity has been
provided in anticipation of the needs of new
development, by requiring impact fees for that
portion of the facilities constructed for future
users. The need to recoup costs for excess
capacity must have been documented by a
preconstruction assessment that demonstrated the
need for the excess capacity. Nothing contained
in this chapter shall prevent a municipality
from continuing to assess an impact fee that recoups
costs for excess capacity in an existing
facility without the preconstruction assessment so long as
the impact fee was enacted at least ninety (90)
days prior to the effective date of this chapter [July
22, 2000] and is in compliance with this chapter
in all other respects pursuant to section 45-22.4-
7. The fees imposed to recoup the costs to
provide the excess capacity must be based on the
governmental entity's actual cost of acquiring,
constructing, or upgrading the facility and must be
no more than a proportionate share of the costs
to provide the excess capacity. That portion of an
impact fee deemed recoupment is exempted from
provisions of section 45-22.4-5(a)(2).
(d) Governmental
entities may accept the dedication of land or the construction of public
facilities in lieu of payment of impact fees
provided that:
(1) The need for
the dedication or construction is clearly documented in the community's
capital improvement program or comprehensive
plan;
(2) The land
proposed for dedication for the facilities to be constructed are determined to
be appropriate for the proposed use by the local
governmental entity;
(3) Formulas
and/or procedures for determining the worth of proposed dedications or
constructions are established.
(e) Exemptions:
Impact fees shall not be imposed for remodeling, rehabilitation, or other
improvements to an existing structure, or
rebuilding a damaged structure, unless there is an
increase in the number of dwelling units or any
other measurable unit for which an impact fee is
collected. Impact fees may be imposed when
property which is owned or controlled by federal or
state government is converted to private
ownership or control.
(1) Impact fees
shall not be imposed for remodeling, rehabilitation, or other
improvements to an existing structure, or rebuilding
a damaged structure, unless there is an
increase in the number of dwelling units or any
other measurable unit for which an impact fee is
collected. Impact fees may be imposed when
property which is owned or controlled by federal or
state government is converted to private
ownership or control.
(2) Nothing in
this chapter shall prevent a municipality from granting any exemption(s)
which it deems appropriate.
SECTION 2. This
act shall take effect upon passage.
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LC02140
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