Impact fee bill sent to governor for approval

A bill that allows cities and counties to impose impact fees on new development went to Gov. Brian Schweitzer on Thursday for his signature.

The House approved Senate Bill 185 last week, on an 84-15 vote. The bill made it through the Senate in February on a 36-14 vote.

The legislation gives local governments an opportunity to impose fees on new subdivisions to pay for growth-related capital improvements to public facilities, including water and sewer systems, transportation networks, and police and fire services.

Prior to adopting any impact fees, cities or counties would have to provide substantial documentation detailing the existing condition of each public facility, estabilishing level of service standards, specifying what capital improvements are necessary to meet future needs and what they would cost, and discussing what method and time frame would be used to assign a proportionate share of those costs to new development.

The fees would have to be directly related to the cost of the infrastructure improvements that are made necessary by the new subdivision. They couldn't be used to correct existing problems with that infrastructure; new subdivisions also couldn't be required to meet a higher level of service standard than existing users enjoy.

SB 185 requires that an impact fee advisory committee be established to review the way such fees are calculated, assessed and spent. The committee must include at least one representative of the development community and one certified public accountant.

Several other planning bills have also been approved or rejected as the 2005 Legislature winds down, including:

. SB 116 - Approved by the Legislature; sent to Gov. Schweitzer for his signature.

This bill makes a number of changes to Montana's subdivision review procedures, including requiring local governments to establish criteria for deciding when people are trying to evade the subdivision requirements by using family transfers and other statutory exemptions.

. SB 195 - Died after failing second reading in the House earlier this month.

This bill, referred to as the "Quality Growth Act," would have required the state's largest and fastest-growing counties to designate preferred growth areas for future development.

The legislation attracted widespread opposition from people and organizations, including a number from the Flathead Valley, who were worried that it could restrict growth outside of the designated areas.

. SB 184 - Approved by the Senate in February, but died when it was tabled by the House Taxation Committee.

This bill would have created a local option sales tax. The legislation would not have created the tax, but would have allowed local governments to ask their residents if they were willing to tax themselves to pay for specific infrastructure improvements and property tax relief.

. SB 255 - Approved by the Legislature; sent to Gov. Schweitzer for his signature.

This bill would require Kalispell and other local governments to adopt land-use regulations for large areas around their public airports. They would have to identify specific "airport affected areas" or zones of influence surrounding the facilities, within which certain types of structures or land uses would be discouraged.

The airport owner would also have to adopt regulations for the influence zone that could address such issues as allowable building heights; permitted, conditional and prohibited land uses; lighting; and other items. Existing uses would be grandfathered, but any expansion, replacement or change in use could be prohibited.

. HB 591 - Approved by the Legislature; sent to Gov. Schweitzer for his signature.

This bill clarifies local government's authority to regulate gravel mines. It says that gravel pits, concrete and asphalt plants "may be reasonably conditioned or prohibited" in areas that are zoned as residential, and can be "reasonably conditioned, but not prohibited," in all other zoning districts.

The only remaining question is what qualifies as a residential zoning district. That issue will be addressed on the local level.

Reporter Bill Spence may be reached at 758-4459 or by e-mail at bspence@dailyinterlake.com