SESSION WATCH
Superseded — its companion passed HOUSE · SESSION 2026

No. CS/CS/HB 1139

Impact Fees
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SPONSOR
State Affairs Committee; Intergovernmental Affairs Subcommittee; Gentry; Basabe
FILED BY
Richard Gentry — District 27, Republican [search donations]
Fabián Basabe — District 106, Republican [search donations]
EFFECTIVE
7/1/2026
COMPANION
CS/CS/HB 1329 — CS/CS/HB 1139 was set aside and its companion carried the policy

Filed under Development & Land Use.

PROVIDED SUMMARY

Impact Fees; Provides requirements for coordination mechanisms that are required for certain agreements required as part of intergovernmental coordination element of comprehensive plan; requires that plan-based methodology used for certain interlocal agreements be consistent with certain comprehensive plan requirements; requires that demonstrated-need study use plan-based methodology; prohibits local governments, school districts, & special districts from including certain deductions in certain impact fee increases & from increasing impact fee rates beyond certain phase-in limitations by more than specified percentage; provides that prevailing petitioner is entitled to impact fee overpayment refund, with interest; provides that certain prevailing petitioners are entitled to reasonable attorney fees & costs.

Full bill text →

Plain English Summary

AI-GENERATED
Caps impact fee hikes and mandates refunds for overpayments.

Local governments, school districts, and special districts face new limits on how much and how fast they can raise impact fees.

Agencies must now use a specific, data-driven methodology to justify any fee increase that exceeds standard phase-in limits.

If a court finds an impact fee was improperly assessed, the government must refund the overpayment with interest within 90 days.

Prevailing petitioners who are local residents or business owners are now entitled to recover their attorney fees and costs.

KEY PROVISIONS
§ 1 New Definition of Plan-Based Methodology majors. 163.3164(39)

AIAdds a mandatory definition requiring impact fee studies to use localized data to project 10-year growth and identify specific capital projects.

“"Plan-based methodology" means a study methodology that uses the most recent and localized data to project growth within a jurisdiction over a 10-year period” bill text, line 49 →
§ 2 Mandatory Extrajurisdictional Mitigation Funding majors. 163.3177(6)(h)

AIRequires comprehensive plan coordination mechanisms to include plans for funding mitigation of development impacts that cross jurisdictional boundaries.

“Such coordination mechanisms must include plans to provide mitigation funding to address any extrajurisdictional impacts of development” bill text, line 122 →
§ 3 Strict Limits on Impact Fee Increases majors. 163.31801(6)(g)

AIProhibits local governments, school districts, and special districts from using data older than four years or including previous deductions when exceeding phase-in limits.

“Use data that is older than 4 years to demonstrate extraordinary circumstances” bill text, line 243 →
§ 4 100 Percent Cap on Fee Increases majors. 163.31801(6)(g)

AICaps the maximum allowable increase in impact fee rates at 100 percent, distributed equally over a four-year period.

“Increase an impact fee rate beyond the phase-in limitations under this paragraph by more than 100 percent divided equally over a 4-year period” bill text, line 198 →
§ 5 Mandatory Refunds and Attorney Fees majors. 163.31801(9)(a)

AIEntitles prevailing petitioners to refunds of overpaid impact fees with interest and reasonable attorney fees if the government fails to meet legal requirements.

“The petitioner is entitled to a refund in the amount of the overpayment with interest” bill text, line 260 →
§ 6 Burden of Proof on Government majors. 163.31801(9)(a)

AIShifts the burden of proof to the government to show impact fees meet legal requirements, prohibiting courts from using deferential standards.

“The government has the burden of proving by a preponderance of the evidence that the imposition or amount of the fee or credit meets the requirements” bill text, line 254 →
TIMELINE
3/13/2026
Died in Rules, companion bill(s) passed, see CS/CS/HB 1329 (Ch. 2026-161 )
3/4/2026
Received
3/4/2026
Referred to Rules
3/4/2026
In Messages
3/4/2026
CS passed; YEAS 109, NAYS 2
3/4/2026
Read 3rd time
3/4/2026
Added to Third Reading Calendar
3/4/2026
Read 2nd time
2/26/2026
Bill added to Special Order Calendar (3/4/2026)
2/11/2026
Added to Second Reading Calendar
2/11/2026
Bill referred to House Calendar
2/10/2026
1st Reading (Committee Substitute 2)
2/10/2026
CS Filed
2/10/2026
Laid on Table under Rule 7.18(a)
2/10/2026
Reported out of State Affairs Committee
2/10/2026
Favorable with CS by State Affairs Committee
2/6/2026
Added to State Affairs Committee agenda
2/5/2026
Now in State Affairs Committee
2/5/2026
Reported out of Housing, Agriculture & Tourism Subcommittee
2/5/2026
Favorable by Housing, Agriculture & Tourism Subcommittee
2/3/2026
Added to Housing, Agriculture & Tourism Subcommittee agenda
1/29/2026
Now in Housing, Agriculture & Tourism Subcommittee
1/29/2026
Referred to State Affairs Committee
1/29/2026
Referred to Housing, Agriculture & Tourism Subcommittee
1/28/2026
1st Reading (Committee Substitute 1)
1/28/2026
CS Filed
1/28/2026
Laid on Table under Rule 7.18(a)
1/28/2026
Reported out of Intergovernmental Affairs Subcommittee
1/28/2026
Favorable with CS by Intergovernmental Affairs Subcommittee
1/26/2026
Added to Intergovernmental Affairs Subcommittee agenda
1/13/2026
1st Reading (Original Filed Version)
1/12/2026
Now in Intergovernmental Affairs Subcommittee
1/12/2026
Referred to State Affairs Committee
1/12/2026
Referred to Housing, Agriculture & Tourism Subcommittee
1/12/2026
Referred to Intergovernmental Affairs Subcommittee
1/7/2026
Filed
30 EARLIER →
STATUTES IT CHANGES
s. 163.3164
+97 / −0
s. 163.3177
+24 / −0
s. 163.3180
+24 / −21
s. 163.31801
+376 / −1
s. 212.055
+2 / −2
s. 163.3164
+0 / −0
STAFF ANALYSES