PRINTER'S NO. 3807

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2564 Session of 2006


        INTRODUCED BY MAITLAND, FLEAGLE, KAUFFMAN, CLYMER, CRAHALLA,
           GRUCELA, HARPER, HERSHEY, MELIO, S. MILLER, SAYLOR, SCAVELLO,
           SCHRODER AND E. Z. TAYLOR, APRIL 3, 2006

        REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, APRIL 3, 2006

                                     AN ACT

     1  Amending the act of July 31, 1968 (P.L.805, No.247), entitled,
     2     as amended, "An act to empower cities of the second class A,
     3     and third class, boroughs, incorporated towns, townships of
     4     the first and second classes including those within a county
     5     of the second class and counties of the second through eighth
     6     classes, individually or jointly, to plan their development
     7     and to govern the same by zoning, subdivision and land
     8     development ordinances, planned residential development and
     9     other ordinances, by official maps, by the reservation of
    10     certain land for future public purpose and by the acquisition
    11     of such land; to promote the conservation of energy through
    12     the use of planning practices and to promote the effective
    13     utilization of renewable energy sources; providing for the
    14     establishment of planning commissions, planning departments,
    15     planning committees and zoning hearing boards, authorizing
    16     them to charge fees, make inspections and hold public
    17     hearings; providing for mediation; providing for transferable
    18     development rights; providing for appropriations, appeals to
    19     courts and penalties for violations; and repealing acts and
    20     parts of acts," further providing for definitions; amending
    21     provisions relating to municipal capital improvements; and
    22     providing for building excise fees and for development
    23     moratoriums.

    24     The General Assembly of the Commonwealth of Pennsylvania
    25  hereby enacts as follows:
    26     Section 1.  The definition of "impact fee" in section 502-A
    27  of the act of July 31, 1968 (P.L.805, No.247), known as the
    28  Pennsylvania Municipalities Planning Code, reenacted and amended

     1  December 21, 1988 (P.L.1329, No.170) and added December 19, 1990
     2  (P.L.1343, No.209), is amended and the section is amended by
     3  adding a definition to read:
     4     Section 502-A.  Definitions.--The following words and phrases
     5  when used in this article shall have the meanings given to them
     6  in this section unless the context clearly indicates otherwise:
     7     * * *
     8     ["Impact fee," a charge or fee imposed by a municipality
     9  against new development in order to generate revenue for funding
    10  the costs of transportation capital improvements necessitated by
    11  and attributable to new development.]
    12     * * *
    13     "Transportation impact fee," a charge or fee imposed by a
    14  municipality against new development in order to generate
    15  revenue for funding the costs of transportation capital
    16  improvements necessitated by and attributable to new
    17  development.
    18     * * *
    19     Section 2.  Section 503-A of the act, amended or added
    20  December 19, 1990 (P.L.1343, No.209) and June 22, 2000 (P.L.495,
    21  No.68), is amended to read:
    22     Section 503-A.  Grant of Power.--(a)  The governing body of
    23  each municipality other than a county, in accordance with the
    24  conditions and procedures set forth in this act, may enact,
    25  amend and repeal transportation impact fee ordinances and,
    26  thereafter, may establish, at the time of municipal approval of
    27  any new development or subdivision, the amount of [an] a
    28  transportation impact fee for any of the offsite public
    29  transportation capital improvements authorized by this act as a
    30  condition precedent to final plat approval under the
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     1  municipality's subdivision and land development ordinance. Every
     2  ordinance adopted pursuant to this act shall include, but not be
     3  limited to, provisions for the following:
     4         (1)  The conditions and standards for the determination
     5     and imposition of transportation impact fees consistent with
     6     the provisions of this act.
     7         (2)  The agency, body or office within the municipality
     8     which shall administer the collection, disbursement and
     9     accounting of transportation impact fees.
    10         (3)  The time, method and procedure for the payment of
    11     transportation impact fees.
    12         (4)  The procedure for issuance of any credit against or
    13     reimbursement of transportation impact fees which an
    14     applicant may be entitled to receive consistent with the
    15     provisions of this act.
    16         (5)  Exemptions or credits which the municipality may
    17     choose to adopt. In this regard the municipality shall have
    18     the power to:
    19             (i)  Provide a credit of up to 100% of the applicable
    20         transportation impact fees for all new development and
    21         growth which constitutes affordable housing to low- and
    22         moderate-income persons.
    23             (ii)  Provide a credit of up to 100% of the
    24         applicable transportation impact fees for growth which
    25         are determined by the municipality to serve an overriding
    26         public interest.
    27             (iii)  Exempt de [minimus] minimis applications from
    28         transportation impact fee requirements. If such a policy
    29         is adopted, the definition of de [minimus] minimis shall
    30         be contained in the ordinance.
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     1     (b)  No municipality shall have the power to require as a
     2  condition for approval of a land development or subdivision
     3  application the construction, dedication or payment of any
     4  offsite improvements or capital expenditures of any nature
     5  whatsoever or impose any contribution in lieu thereof, exaction
     6  fee, or any connection, tapping or similar fee except as may be
     7  specifically authorized under this act.
     8     (c)  No municipality may levy [an] a transportation impact
     9  fee prior to the enactment of a municipal transportation impact
    10  fee ordinance adopted in accordance with the procedures set
    11  forth in this act, except as may be specifically authorized by
    12  the provisions of this act. A transportation impact fee shall be
    13  imposed by a municipality within a service area or areas only
    14  where such fees have been determined and imposed pursuant to the
    15  standards, provisions and procedures set forth herein.
    16     (d)  [Impact] Transportation impact fees may be used for
    17  those costs incurred for improvements designated in the
    18  transportation capital improvement program which are
    19  attributable to new development, including the acquisition of
    20  land and rights-of-way; engineering, legal and planning costs;
    21  and all other costs which are directly related to road
    22  improvements within the service area or areas, including debt
    23  service. [Impact] Transportation impact fees shall not be
    24  imposed or used for costs associated with any of the following:
    25         (1)  Construction, acquisition or expansion of municipal
    26     facilities other than capital improvements identified in the
    27     transportation capital improvements plan required by this
    28     act.
    29         (2)  Repair, operation or maintenance of existing or new
    30     capital improvements.
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     1         (3)  Upgrading, updating, expanding or replacing existing
     2     capital improvements to serve existing developments in order
     3     to meet stricter safety, efficiency, environmental or
     4     regulatory standards not attributable to new development.
     5         (4)  Upgrading, updating, expanding or replacing existing
     6     capital improvements to remedy deficiencies in service to
     7     existing development or fund deficiencies in existing
     8     municipal capital improvements resulting from a lack of
     9     adequate municipal funding over the years for maintenance or
    10     capital construction costs.
    11         (5)  Preparing and developing the land use assumptions,
    12     roadway sufficiency analysis and transportation capital
    13     improvement plan, except that transportation impact fees may
    14     be used for no more than a proportionate amount of the cost
    15     of professional consultants incurred in preparing a roadway
    16     sufficiency analysis of infrastructure within a specified
    17     transportation service area, such allowable proportion to be
    18     calculated by dividing the total costs of all road
    19     improvements in the adopted transportation capital
    20     improvement program within the transportation service area
    21     attributable to projected future development within the
    22     service area, as defined in section 504-A(e)(1)(iii), by the
    23     total costs of all road improvements in the adopted
    24     transportation capital improvement program within the
    25     specific transportation service area, as defined in section
    26     504-A.
    27     (e)  Nothing in this act shall be deemed to alter or affect a
    28  municipality's existing power to require an applicant for
    29  municipal approval of any new development or subdivision from
    30  paying for the installation of onsite improvements as provided
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     1  for in a municipality's subdivision and land development
     2  ordinance as authorized by this act.
     3     (f)  No municipality may delay or deny any application for
     4  building permit, certificate-of-occupancy, development or any
     5  other approval or permit required for construction, land
     6  development, subdivision or occupancy for the reason that any
     7  project of an approved capital improvement program has not been
     8  completed.
     9     (g)  A municipality which has enacted an impact fee ordinance
    10  on or before June 1, 1990, may for a period not to exceed one
    11  year from the effective date of this article, adopt an impact
    12  fee ordinance to conform with the standards and procedures set
    13  forth in this article. Where a fee previously imposed pursuant
    14  to an ordinance in effect on June 1, 1990, for transportation
    15  improvements authorized by this article is greater than the
    16  recalculated fee due under the newly adopted ordinance, the
    17  individual who paid the fee is entitled to a refund of the
    18  difference. If the recalculated fee is greater than the
    19  previously paid fee, there shall be no additional charge.
    20     (h)  The powers provided by this section may be exercised by
    21  two or more municipalities, other than counties, which have
    22  adopted a joint municipal comprehensive plan pursuant to Article
    23  XI through a joint municipal authority, subject to the
    24  conditions and procedures set forth in this article.
    25     Section 3.  Sections 504-A(a), (b), (e), (f) and (g) and 505-
    26  A of the act, amended June 22, 2000 (P.L.495, No.68), are
    27  amended to read:
    28     Section 504-A.  Transportation Capital Improvements Plan.--
    29     (a)  (1)  A transportation capital improvements plan shall be
    30     prepared and adopted by the governing body of the
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     1     municipality prior to the enactment of any transportation
     2     impact fee ordinance.
     3         (2)  In lieu of preparing a transportation capital
     4     improvements plan, the governing body of the municipality may
     5     elect to have the municipality's comprehensive plan and maps
     6     serve as a transportation capital improvements plan, provided
     7     that:
     8             (i)  the municipality's comprehensive plan and maps
     9         contain the necessary information for the transportation
    10         impact fee advisory committee and governing body to
    11         perform the calculations, make the recommendations and
    12         carry out other duties required by this article; and
    13             (ii)  the municipality's comprehensive plan and maps
    14         have been adopted or revised within ten years of the date
    15         of enactment of a transportation impact fee ordinance.
    16         (3)  The municipality shall provide qualified
    17     professionals to assist the transportation impact fee
    18     advisory committee or the planning commission in the
    19     preparation of the transportation capital improvements plan
    20     or the transportation elements of the municipality's
    21     comprehensive plan and calculation of the transportation
    22     impact fees to be imposed to implement the plan in accordance
    23     with the procedures, provisions and standards set forth in
    24     this act.
    25     (b)  (1)  [An] A transportation impact fee advisory committee
    26     shall be created by resolution of a municipality intending to
    27     adopt a transportation impact fee ordinance. The resolution
    28     shall describe the geographical area or areas of the
    29     municipality for which the advisory committee shall develop
    30     the land use assumptions and conduct the roadway sufficiency
    20060H2564B3807                  - 7 -     

     1     analysis studies.
     2         (2)  The advisory committee shall consist of no fewer
     3     than 7 nor more than 15 members, all of whom shall serve
     4     without compensation. The governing body of the municipality
     5     shall appoint as members of the advisory committee persons
     6     who are either residents of the municipality or conduct
     7     business within the municipality and are not employees or
     8     officials of the municipality. Not less than [40%] 25% of the
     9     members of the advisory committee shall be representatives of
    10     the real estate, commercial and residential development, and
    11     building industries. The municipality may also appoint
    12     traffic or transportation engineers or planners to serve on
    13     the advisory committee provided the appointment is made after
    14     consultation with the advisory committee members. The traffic
    15     or transportation engineers or planners appointed to the
    16     advisory committee may not be employed by the municipality
    17     for the development of or consultation on the roadways
    18     sufficiency analysis which may lead to the adoption of the
    19     transportation capital improvements plan.
    20         (3)  The governing body of the municipality may elect to
    21     designate the municipal planning commission appointed
    22     pursuant to Article II as the transportation impact fee
    23     advisory committee. If the existing planning commission does
    24     not include members representative of the real estate,
    25     commercial and residential development, and building
    26     industries at no less than [40%] 25% of the membership, the
    27     governing body of the municipality shall appoint the
    28     sufficient number of representatives of the aforementioned
    29     industries who reside in the municipality or conduct business
    30     within the municipality to serve as ad hoc voting members of
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     1     the planning commission whenever such commission functions as
     2     the impact fee advisory committee.
     3         (4)  No transportation impact fee ordinance may be
     4     invalidated as a result of any legal action challenging the
     5     composition of the advisory committee which is not brought
     6     within 90 days following the first public meeting of [said]
     7     the advisory committee.
     8         (5)  The advisory committee shall serve in an advisory
     9     capacity and shall have the following duties:
    10             (i)  To make recommendations with respect to land use
    11         assumptions, the development of comprehensive road
    12         improvements and transportation impact fees.
    13             (ii)  To make recommendations to approve, disapprove
    14         or modify a capital improvement program by preparing a
    15         written report containing these recommendations to the
    16         municipality.
    17             (iii)  To monitor and evaluate the implementation of
    18         a capital improvement program and the assessment of
    19         transportation impact fees, and report annually to the
    20         municipality with respect to the same.
    21             (iv)  To advise the municipality of the need to
    22         revise or update the land use assumptions, capital
    23         improvement program or transportation impact fees.
    24     * * *
    25     (e)  (1)  Utilizing the information provided by the land use
    26     assumption and the roadway sufficiency analysis as the basis
    27     for determination of the need for road improvements to remedy
    28     existing deficiencies and accommodate future projected
    29     traffic volumes, the advisory committee shall identify those
    30     capital projects which the municipality should consider for
    20060H2564B3807                  - 9 -     

     1     adoption in its transportation capital improvements plan and
     2     shall recommend the delineation of the transportation service
     3     area or areas. The capital improvement plan shall be
     4     developed in accordance with generally accepted engineering
     5     and planning practices. The capital improvement program shall
     6     include projections of all designated road improvements in
     7     the capital improvement program. The total cost of the road
     8     improvements shall be based upon estimated costs, using
     9     standard traffic engineering standards, with a 10% maximum
    10     contingency which may be added to said estimate. These costs
    11     shall include improvements to correct existing deficiencies
    12     with identified anticipated sources of funding and timetables
    13     for implementation. The transportation capital improvements
    14     plan shall include the following components:
    15             (i)  A description of the existing highways, roads
    16         and streets within the transportation service area and
    17         the road improvements required to update, improve, expand
    18         or replace such highways, roads and streets in order to
    19         meet the preferred level of service and usage and
    20         stricter safety, efficiency, environmental or regulatory
    21         standards not attributable to new development.
    22             (ii)  A plan specifying the road improvements within
    23         the transportation service area attributable to
    24         forecasted pass-through traffic so as to maintain the
    25         preferred level of service after existing deficiencies
    26         identified by the roadway sufficiency analysis have been
    27         remedied.
    28             (iii)  A plan specifying the road improvements or
    29         portions thereof within the transportation service area
    30         attributable to the projected future development,
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     1         consistent with the adopted land use assumptions, in
     2         order to maintain the preferred level of service after
     3         accommodation for pass-through traffic and after existing
     4         deficiencies identified in the roadway sufficiency
     5         analysis have been remedied.
     6             (iv)  The projected costs of the road improvements to
     7         be included in the transportation capital improvements
     8         plan, calculating separately for each project by the
     9         following categories:
    10                 (A)  The costs or portion thereof associated with
    11             correcting existing deficiencies as specified in
    12             subparagraph (i).
    13                 (B)  The costs or portions thereof attributable
    14             to providing road improvements to accommodate
    15             forecasted pass-through trips as specified in
    16             subparagraph (ii).
    17                 (C)  The costs of providing necessary road
    18             improvements or portions thereof attributable to
    19             projected future development as specified in
    20             subparagraph (iii), provided that no more than 50% of
    21             the cost of the improvements to any highway, road or
    22             street which qualifies as a State highway or portion
    23             of the rural State highway system as provided in
    24             section 102 of the act of June 1, 1945 (P.L.1242,
    25             No.428), known as the "State Highway Law," may be
    26             included.
    27             (v)  A projected timetable and proposed budget for
    28         constructing each road improvement contained in the plan.
    29             (vi)  The proposed source of funding for each capital
    30         improvement included in the road plan. This shall include
    20060H2564B3807                 - 11 -     

     1         anticipated revenue from the Federal Government, State
     2         government, municipality, transportation impact fees and
     3         any other source. The estimated revenue for each capital
     4         improvement in the plan which is to be provided by
     5         transportation impact fees shall be identified separately
     6         for each project.
     7         (2)  The source of funding required for projects to
     8     remedy existing deficiencies as set forth in paragraph (1)(i)
     9     and the road improvements attributable to forecasted pass-
    10     through traffic as set forth in paragraph (1)(ii) shall be
    11     exclusive of funds generated from the assessment of
    12     transportation impact fees.
    13         (3)  Upon the completion of the transportation capital
    14     improvements plan and prior to its adoption by the governing
    15     body of the municipality and the enactment of a municipal
    16     transportation impact fee ordinance, the advisory committee
    17     shall hold at least one public hearing for consideration of
    18     the plan. Notification of the public hearing shall comply
    19     with the requirement of section 107. The plan shall be
    20     available for public inspection at least ten working days
    21     prior to the date of the public hearing. After presentation
    22     of the recommendation by the advisory committee or its
    23     representatives at a public meeting of the governing body,
    24     the governing body may make such changes to the plan prior to
    25     its adoption as the governing body deems appropriate
    26     following review of the public comments made at the public
    27     hearing.
    28         (4)  The governing body may periodically, but no more
    29     frequently than annually, request the transportation impact
    30     fee advisory committee to review the capital improvements
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     1     plan and transportation impact fee charges and make
     2     recommendations for revisions for subsequent consideration
     3     and adoption by the governing body based only on the
     4     following:
     5             (i)  New subsequent development which has occurred in
     6         the municipality.
     7             (ii)  Capital improvements contained in the capital
     8         improvements plan, the construction of which has been
     9         completed.
    10             (iii)  Unavoidable delays beyond the responsibility
    11         or control of the municipality in the construction of
    12         capital improvements contained in the plan.
    13             (iv)  Significant changes in the land use
    14         assumptions.
    15             (v)  Changes in the estimated costs of the proposed
    16         transportation capital improvements, which may be
    17         recalculated by applying the construction cost index as
    18         published in the American City/County magazine or the
    19         Engineering News Record.
    20             (vi)  Significant changes in the projected revenue
    21         from all sources listed needed for the construction of
    22         the transportation capital improvements.
    23     (f)  Any improvements to Federal-aid or State highways to be
    24  funded in part by transportation impact fees shall require the
    25  approval of the Department of Transportation and, if necessary,
    26  the United States Department of Transportation. Nothing in this
    27  act shall be deemed to alter or diminish the powers, duties or
    28  jurisdiction of the Department of Transportation with respect to
    29  State highways or the rural State highway system.
    30     (g)  Two or more municipalities may, upon agreement, appoint
    20060H2564B3807                 - 13 -     

     1  a joint transportation impact fee advisory committee which may
     2  develop roadway sufficiency analyses and transportation capital
     3  improvements plans for the participating municipalities. The
     4  members of the joint advisory committee must be either residents
     5  of or conduct business within one of the participating
     6  municipalities.
     7     Section 505-A.  Establishment and Administration of Impact
     8  Fees.--(a)  (1)  The transportation impact fee for
     9     transportation capital improvements shall be based upon the
    10     total costs of the road improvements included in the adopted
    11     capital improvement plan within a given transportation
    12     service area attributable to and necessitated by new
    13     development within the service area as calculated pursuant to
    14     section 504-A(e)(1)(iv)(C), divided by the number of
    15     anticipated peak hour trips generated by all new development
    16     consistent with the adopted land use assumptions and
    17     calculated in accordance with the Trip Generation Manual
    18     published by the Institute of Transportation Engineers,
    19     fourth or subsequent edition as adopted by the municipality
    20     by ordinance or resolution to equal a per trip cost for
    21     transportation improvements within the service area.
    22         (2)  The specific transportation impact fee for a
    23     specific new development or subdivision within the service
    24     area for road improvements shall be determined as of the date
    25     of preliminary land development or subdivision approval by
    26     multiplying the per trip cost established for the service
    27     area as determined in section 503-A(a) by the estimated
    28     number of peak hour trips to be generated by the new
    29     development or subdivision using generally accepted traffic
    30     engineering standards.
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     1         (3)  A municipality may authorize or require the
     2     preparation of a special transportation study in order to
     3     determine traffic generation or circulation for a new
     4     nonresidential development to assist in the determination of
     5     the amount of the transportation impact fee for such
     6     development or subdivision. The municipality shall set forth
     7     by ordinance the circumstances in which such a study should
     8     be authorized or required, provided however, that no special
     9     transportation study shall be required when there is no
    10     deviation from the land use assumptions resulting in
    11     increased density, intensity or trip generation by a
    12     particular development. A developer or municipality may,
    13     however, at any time, voluntarily prepare and submit a
    14     traffic study for a proposed development or may have such a
    15     study prepared at its expense after the development is
    16     completed to include actual trips generated by the
    17     development for use in any appeal as provided for under this
    18     act. The special transportation study shall be prepared by a
    19     qualified traffic or transportation engineer using procedures
    20     and methods established by the municipality based on
    21     generally accepted transportation planning and engineering
    22     standards. The study, where required by the municipality,
    23     shall be submitted prior to the imposition of [an] a
    24     transportation impact fee and shall be taken into
    25     consideration by the municipality in increasing or reducing
    26     the amount of the transportation impact fee for the new
    27     development for the amount shown on the transportation impact
    28     fee schedule adopted by the municipality.
    29     (b)  The governing body shall enact [an] a transportation
    30  impact fee ordinance setting forth a description of the
    20060H2564B3807                 - 15 -     

     1  boundaries and a transportation impact fee schedule for each
     2  transportation service area. At least ten working days prior to
     3  the adoption of the ordinance at a public meeting, the ordinance
     4  shall be available for public inspection. The transportation
     5  impact fee ordinance shall include, but not be limited to, those
     6  provisions set forth in section 503-A(a) and conform with the
     7  standards, provisions and procedures set forth in this act.
     8     (c)  (1)  A municipality may give notice of its intention to
     9     adopt [an] a transportation impact fee ordinance by
    10     publishing a statement of such intention twice in one
    11     newspaper of general circulation in the municipality. The
    12     first publication shall not occur before the adoption of the
    13     resolution by which the municipality establishes its
    14     transportation impact fee advisory committee. The second
    15     publication shall occur not less than one nor more than three
    16     weeks thereafter.
    17         (2)  A municipal transportation impact fee ordinance
    18     adopted under and pursuant to this act may provide that the
    19     provisions of the ordinance may have retroactive application,
    20     for a period not to exceed 18 months after the adoption of
    21     the resolution [creating an] establishing a transportation
    22     impact fee advisory committee pursuant to section 504-
    23     A(b)(1), to preliminary or tentative applications for land
    24     development, subdivision or PRD with the municipality on or
    25     after the first publication of the municipality's intention
    26     to adopt [an] a transportation impact fee ordinance;
    27     provided, however, that the transportation impact fee imposed
    28     on building permits for construction of new development
    29     approved pursuant to such applications filed during the
    30     period of [pendancy] pendency shall not exceed $1,000 per
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     1     anticipated peak hour trip as calculated in accordance with
     2     the generally accepted traffic engineering standards as set
     3     forth under the provisions of subsection (a)(1) or the
     4     subsequently adopted fee established by the ordinance,
     5     whichever is less.
     6         (3)  No action upon an application for land development,
     7     subdivision or PRD shall be postponed, delayed or extended by
     8     the municipality because adoption of a municipal
     9     transportation impact fee ordinance is being considered.
    10     Furthermore, the adoption of [an] a transportation impact fee
    11     ordinance more than 18 months after adoption of a resolution
    12     [creating the] establishing the transportation impact fee
    13     advisory committee shall not be retroactive or applicable to
    14     plats submitted for preliminary or tentative approval prior
    15     to the legal publication of the proposed transportation
    16     impact fee ordinance and any transportation impact fees
    17     collected pursuant to this subsection shall be refunded to
    18     the payor of such fees; provided the adoption of the
    19     transportation impact fee ordinance was not delayed due to
    20     the initiation of any litigation challenging the adoption of
    21     such ordinance.
    22     (d)  Any transportation impact fees collected by a
    23  municipality pursuant to a municipal transportation impact fee
    24  ordinance shall be deposited by the municipality into an
    25  interest-bearing fund account designated solely for
    26  transportation impact fees, clearly identifying the
    27  transportation service area from which the transportation impact
    28  fee was received. Funds collected in one transportation service
    29  area must be accounted for and expended within that
    30  transportation service area, and such funds shall only be
    20060H2564B3807                 - 17 -     

     1  expended for that portion of the transportation capital
     2  improvements identified as being funded by transportation impact
     3  fees under the transportation capital improvements plan.
     4  Notwithstanding any other provisions of this act, municipalities
     5  may expend transportation impact fees paid by an applicant on
     6  projects not contained in the adopted transportation capital
     7  improvement plan or may provide credit against transportation
     8  impact fees for the value of any construction projects not
     9  contained in the transportation capital improvement plan which
    10  are performed at the applicant's expense if all of the following
    11  criteria are met:
    12         (1)  The applicant has provided written consent to use of
    13     its collected transportation impact fees or the provision of
    14     such credit against the applicant's transportation impact
    15     fees for specific transportation projects which are not
    16     included in the transportation capital improvement plan.
    17         (2)  The alternative transportation projects, whether
    18     highway or multimodal, have as their purpose the reduction of
    19     traffic congestion or the removal of vehicle trips from the
    20     roadway network.
    21         (3)  The municipality amends its transportation capital
    22     improvement plan components required by section 504-
    23     A(e)(1)(vi) to provide replacement of the collected
    24     transportation impact fees transferred to transportation
    25     projects outside the approved transportation capital
    26     improvement plan from sources other than transportation
    27     impact fees or developer contributions within three years of
    28     completion of the alternative projects to which the
    29     transferred transportation impact fees were applied or for
    30     which credit was provided. All interest earned on such funds
    20060H2564B3807                 - 18 -     

     1     shall become funds of that account. The municipality shall
     2     provide that an accounting be made annually for any fund
     3     account containing transportation impact fee proceeds and
     4     earned interest. Such accounting shall include, but not be
     5     limited to, the total funds collected, the source of the
     6     funds collected, the total amount of interest accruing on
     7     such funds and the amount of funds expended on specific
     8     transportation improvements. Notice of the availability of
     9     the results of the accounting shall be included and published
    10     as part of the annual audit required of municipalities. A
    11     copy of the report shall also be provided to the
    12     transportation advisory committee.
    13     (e)  All transportation impact fees imposed under the terms
    14  of this act shall be payable at the time of the issuance of
    15  building permits for the applicable new development or
    16  subdivision. The municipality may not require the applicant to
    17  provide a guarantee of financial security for the payment of any
    18  transportation impact fees, except the municipality may provide
    19  for the deposit with the municipality of financial security in
    20  an amount sufficient to cover the cost of the construction of
    21  any road improvement contained in the transportation capital
    22  improvement plan which is performed by the applicant.
    23     (f)  An applicant shall be entitled to a credit against the
    24  transportation impact fee in the amount of the fair market value
    25  of any land dedicated by the applicant to the municipality for
    26  future right-of-way, realignment or widening of any existing
    27  roadways or for the value of any construction of road
    28  improvements contained in the transportation capital improvement
    29  program which is performed at the applicant's expense. The
    30  amount of such credit for any capital improvement constructed
    20060H2564B3807                 - 19 -     

     1  shall be the amount allocated in the capital improvement
     2  program, including contingency factors, for such work. The fair
     3  market value of any land dedicated by the applicant shall be
     4  determined as of the date of the submission of the land
     5  development or subdivision application to the municipality.
     6     (g)  [Impact] Transportation impact fees previously collected
     7  by a municipality shall be refunded, together with earned
     8  accrued interest thereon, to the payor of [such] the
     9  transportation impact fees from the date of payment under any of
    10  the following circumstances:
    11         (1)  In the event that a municipality terminates or
    12     completes an adopted capital improvements plan for a
    13     transportation service area and there remains at the time of
    14     termination or completion undispersed funds in the accounts
    15     established for that purpose, the municipality shall provide
    16     written notice by certified mail to those persons who
    17     previously paid the transportation impact fees which remain
    18     undispersed of the availability of said funds for refund of
    19     the person's proportionate share of the fund balance. The
    20     allocation of the refund shall be determined by generally
    21     accepted accounting practices. In the event that any of the
    22     funds remain unclaimed following one year after the notice,
    23     which notice shall be provided to the last known address
    24     provided by the payor of the transportation impact fees to
    25     the municipality, the municipality shall be authorized to
    26     transfer any funds so remaining to any other fund in the
    27     municipality without any further obligation to refund said
    28     funds.
    29         (2)  If the municipality fails to commence construction
    30     of any transportation service area road improvements within
    20060H2564B3807                 - 20 -     

     1     three years of the scheduled construction date set forth in
     2     the transportation capital improvements plan, any person who
     3     paid any transportation impact fees pursuant to that
     4     transportation capital improvements plan shall, upon written
     5     request to the municipality, receive a refund of that portion
     6     of the transportation impact fee attributable to the
     7     contribution for the uncommenced road improvement, plus the
     8     interest accumulated thereon from the date of payment.
     9         (3)  If, upon completion of any road improvements
    10     project, the actual expenditures of the capital project are
    11     less than 95% of the costs properly allocable to the
    12     transportation impact fee paid within the transportation
    13     service area in which the completed road improvement was
    14     adopted, the municipality shall refund the pro rata
    15     difference between the budgeted costs and the actual
    16     expenditures, including interest accumulated thereon from the
    17     date of payment, to the person or persons who paid the
    18     transportation impact fees for such improvements.
    19         (4)  If the new development for which transportation
    20     impact fees were paid is not commenced prior to the
    21     expiration of building permits issued for the new development
    22     within the time limits established by applicable building
    23     codes within the municipality or if the building permit as
    24     issued for the new development is altered and the alteration
    25     results in a decrease in the amount of the transportation
    26     impact fee due in accordance with the calculations set forth
    27     in subsection (a)(1).
    28     (h)  Where [an] a transportation impact fee ordinance has
    29  been adopted pursuant to the other provisions of this act, the
    30  ordinance may impose an additional transportation impact fee
    20060H2564B3807                 - 21 -     

     1  upon new developments which generate 1,000 or more new peak hour
     2  trips, net of pass-by trips as defined by the current edition of
     3  the Institute of Transportation Engineers Trip Generation
     4  Manual, during the peak hour period designated in the ordinance.
     5  In such case, the transportation impact fee ordinance adopted
     6  under this act may require the applicant for such a development
     7  to perform a traffic analysis of development traffic impact on
     8  highways, roads or streets outside the transportation service
     9  area in which the development site is located but within the
    10  boundaries of the municipality or municipalities adopting a
    11  joint municipal transportation impact fee ordinance or
    12  municipalities which are participating in a joint municipal
    13  authority authorized to impose transportation impact fees by
    14  this article. Any such highways, roads or streets or parts
    15  thereof outside the transportation service area which will
    16  accommodate 10% or more of development traffic and 100 or more
    17  new peak hour trips may be required to be studied, and the
    18  ordinance may require the applicant to mitigate the traffic
    19  impacts of the development on such highways, roads and streets
    20  to maintain the predevelopment conditions after completion of
    21  the development.
    22     Section 4.  Section 506-A of the act, added December 19, 1990
    23  (P.L.1343, No.209), is amended to read:
    24     Section 506-A.  Appeals.--(a)  Any person required to pay
    25  [an] a transportation impact fee shall have the right to contest
    26  the land use assumptions, the development and implementation of
    27  the transportation capital improvement program, the imposition
    28  of transportation impact fees, the periodic updating of the
    29  transportation capital improvement program, the refund of
    30  transportation impact fees and all other matters relating to
    20060H2564B3807                 - 22 -     

     1  transportation impact fees, including the constitutionality or
     2  validity of the transportation impact fee ordinance by filing an
     3  appeal with the court of common pleas.
     4     (b)  A master may be appointed by the court to hear testimony
     5  on the issues and return the record and a transcript of the
     6  testimony, together with a report and recommendations, or the
     7  court may appoint a master to hold a nonrecord hearing and to
     8  make recommendations and return the same to the court, in which
     9  case either party may demand a hearing de novo before the court.
    10     (c)  Any cost incurred by parties in such an appeal shall be
    11  the separate responsibility of the parties.
    12     Section 5.  Section 508-A of the act, added June 22, 2000
    13  (P.L.495, No.68), is amended to read:
    14     Section 508-A.  Joint Municipal Transportation Impact Fee
    15  Ordinance.--(a)  For the purpose of permitting municipalities
    16  which cooperatively plan for their future to also provide for
    17  transportation capital improvements in a cooperative manner, the
    18  governing bodies of each municipality which has adopted a joint
    19  municipal comprehensive plan pursuant to Article XI in
    20  accordance with the conditions and procedures set forth in this
    21  article may cooperate with one or more municipalities to enact,
    22  amend and repeal joint transportation impact fee ordinances to
    23  accomplish the purposes of this act in accordance with this
    24  article.
    25     (b)  The procedures set forth in this article shall be
    26  applicable to the enactment of a joint municipal transportation
    27  impact fee ordinance.
    28     (c)  Each municipality party to a joint municipal
    29  transportation impact fee ordinance shall approve the advisory
    30  committee and shall adopt the land use assumptions, roadway
    20060H2564B3807                 - 23 -     

     1  sufficiency analysis, capital improvement plan and ordinances
     2  and amendments thereto in accordance with the procedures in this
     3  article, and no such ordinance shall become effective until it
     4  has been properly adopted by all the participating
     5  municipalities.
     6     Section 6.  The act is amended by adding an article to read:
     7                            ARTICLE V-B
     8                          GROWTH COUNTIES
     9                            SUBARTICLE A
    10                       PRELIMINARY PROVISIONS
    11  Section 501-B.  Legislative findings and intent.
    12     The General Assembly finds and declares as follows:
    13         (1)  Certain counties of this Commonwealth are
    14     experiencing rapid population growth. While population growth
    15     is usually desirable, it also creates a special set of
    16     challenges for municipal and school district officials. In
    17     these cases, officials in high-growth counties may need
    18     special powers to address problems created by high rates of
    19     growth. For the purposes of this article, the General
    20     Assembly designates these growth counties as a separate
    21     classification.
    22         (2)  It is the public policy of this Commonwealth to
    23     protect the public health, safety and general welfare of its
    24     citizens by providing an equitable program for the planning
    25     and financing of adequate public facilities to serve growth
    26     and new development.
    27         (3)  By enacting these provisions, the General Assembly
    28     intends to encourage and promote each of the following:
    29             (i)  Adequate public facilities to serve growth and
    30         new development.
    20060H2564B3807                 - 24 -     

     1             (ii)  Orderly growth and development that does not
     2         place an undue financial burden on existing taxpayers.
     3             (iii)  Standards for apportioning the fair share of
     4         the cost of new or upgraded public facilities that serve
     5         new growth and development among those who will benefit.
     6  Section 502-B.  Definitions.
     7     The following words and phrases when used in this article
     8  shall have the meanings given to them in this section unless the
     9  context clearly indicates otherwise:
    10     "Growth county."  A county that grew by 0.75% or more in the
    11  preceding three consecutive fiscal years, as estimated by the
    12  Pennsylvania State Data Center of the United States Census
    13  Bureau.
    14  Section 503-B.  Powers for growth counties.
    15     (a)  Authority.--
    16         (1)  A municipality in a growth county may enact
    17     ordinances and a school district in a growth county may adopt
    18     resolutions as authorized in this article. Initial ordinances
    19     or resolutions shall be in effect for at least three years.
    20         (2)  Once a county's rate of growth falls below 0.75% for
    21     three consecutive years as estimated by the Pennsylvania
    22     State Data Center of the United States Census Bureau, the
    23     municipalities and school districts within the county may not
    24     adopt new growth county ordinances or resolutions, but may
    25     continue to administer and enforce existing ordinances or
    26     resolutions enacted under this article.
    27         (3)  Once a county's growth rate falls below 0.5% as
    28     estimated by the Pennsylvania State Data Center of the United
    29     States Census Bureau for three consecutive years,
    30     municipalities and school districts within the county may no
    20060H2564B3807                 - 25 -     

     1     longer administer or enforce existing ordinances or
     2     resolutions enacted under this article.
     3     (b)  Building excise fee.--The governing body of each
     4  municipality, other than a county, within a growth county may by
     5  ordinance and a school district located within a growth county
     6  may by resolution adopt a building excise fee as provided for in
     7  Subarticle B.
     8     (c)  Realty transfer tax.--The governing body of a growth
     9  county may by ordinance impose an additional 1% realty transfer
    10  tax levied under the authority of the act of March 4, 1971
    11  (P.L.6, No.2), known as the Tax Reform Code of 1971. Fifty
    12  percent of the revenue from this additional tax shall be used by
    13  the county to fund agricultural land and open space preservation
    14  programs. Fifty percent of the revenue shall be distributed to
    15  school districts in the county for general fund expenditures.
    16     (d)  Moratorium.--A municipality within a growth county may
    17  adopt moratoriums on the issuance of building permits when such
    18  building would exceed the capacity of the infrastructure to
    19  support it as provided in Subarticle C.
    20                            SUBARTICLE B
    21                        BUILDING EXCISE FEE
    22  Section 504-B.  Establishment of tax.
    23     (a)  Authority.--The governing body of each municipality,
    24  other than a county, located within a growth county may by
    25  ordinance and a school district located within a growth county
    26  may by resolution adopt a building excise fee in accordance with
    27  this subarticle.
    28     (b)  School districts and municipalities within more than one
    29  county.--For the purposes of this subarticle, a school district
    30  or municipality that crosses county lines shall be considered to
    20060H2564B3807                 - 26 -     

     1  be within a growth county if at least two-thirds of the
     2  residents of the school district or municipality live in the
     3  growth county.
     4     (c)  Contents of ordinance or resolution.--Every ordinance or
     5  resolution adopted pursuant to this subarticle shall include,
     6  but not be limited to, provisions for the following:
     7         (1)  The conditions and standards for the determination
     8     and imposition of building excise fees consistent with the
     9     provisions of this subarticle.
    10         (2)  The agency, body or office within the municipality
    11     that shall administer the collection, disbursement and
    12     accounting of building excise fees.
    13         (3)  The time, method and procedure for the payment of
    14     building excise fees.
    15         (4)  The procedure for issuance of any credit against or
    16     reimbursement of building excise fees that an applicant may
    17     be entitled to receive consistent with the provisions of this
    18     act.
    19         (5)  Exemptions or credits that the municipality may
    20     choose to adopt. In this regard the municipality may:
    21             (i)  Provide a credit of up to 100% of the applicable
    22         building excise fees for all new development and growth
    23         that constitutes affordable housing to low-income and
    24         moderate-income persons.
    25             (ii)  Provide a credit of up to 100% of the
    26         applicable building excise fees for growth that is
    27         determined by the municipality to serve an overriding
    28         public interest.
    29             (iii)  Exempt de minimis applications from building
    30         excise fee requirements. If such a policy is adopted, the
    20060H2564B3807                 - 27 -     

     1         definition of de minimis shall be contained in the
     2         ordinance.
     3  Section 505-B.  Definitions.
     4     The following words and phrases when used in this subarticle
     5  shall have the meanings given to them in this section unless the
     6  context clearly indicates otherwise:
     7     "Agricultural building."  An agricultural building as defined
     8  in the act of November 10, 1999 (P.L.491, No.45), known as the
     9  Pennsylvania Construction Code Act.
    10     "Building."  A structure used or intended for supporting or
    11  sheltering any use or occupancy. The term does not include a
    12  temporary structure.
    13     "Code administrator."  A municipal code official, a
    14  construction code official, a third-party agency or the
    15  Department of Labor and Industry pursuant to the act of November
    16  10, 1999 (P.L.491, No.45), known as the Pennsylvania
    17  Construction Code Act.
    18     "Construction."  Construction of a building that requires a
    19  building permit pursuant to the act of November 10, 1999
    20  (P.L.491, No.45), known as the Pennsylvania Construction Code
    21  Act. Where the building replaces an existing building, the term
    22  does not include replacement of a building due to casualty or
    23  loss within one year of that casualty or loss or replacement of
    24  a mobile home on a site, except that the gross square footage of
    25  the replacement building or replacement mobile home exceeds the
    26  gross square footage of the building or mobile home being
    27  replaced.
    28     "Dwelling unit."  A single unit providing complete,
    29  independent living facilities for one or more persons, including
    30  permanent provisions for living, sleeping, eating or cooking and
    20060H2564B3807                 - 28 -     

     1  sanitation.
     2     "Fee."  The building excise fee authorized under this
     3  subarticle.
     4     "Fund."  The building excise fee fund of a municipality or
     5  school district established under section 511-B.
     6     "Governing body."  The council of a city, borough or town,
     7  the board of commissioners of a first class township, the board
     8  of supervisors of a second class township and the board of
     9  school directors of a school district.
    10     "Gross square footage."  The entire square footage of a
    11  construction, including all finished and unfinished areas of the
    12  construction.
    13     "Habitable structure."  A structure used for living,
    14  sleeping, eating or cooking.
    15     "Multifamily residential construction."  Construction of a
    16  residential building containing more than one dwelling unit,
    17  including, without limitation, semi-detached, two-family
    18  townhouse and multifamily units.
    19     "Nonresidential addition construction."  Construction of a
    20  nonresidential addition to a nonresidential building where the
    21  work requires a building permit and the addition increases the
    22  number of gross square feet of the nonresidential building.
    23     "Residential addition construction."  Construction of a
    24  residential addition to a residential building where the work
    25  requires a building permit and the addition increases the number
    26  of gross square feet of the residential building but does not
    27  add a new dwelling unit.
    28     "Residential construction."  A building that contains one or
    29  more dwelling units. The term includes, but is not limited to, a
    30  boarding house. The term does not include institutional uses or
    20060H2564B3807                 - 29 -     

     1  transient accommodations such as hotels, country inns or bed and
     2  breakfast inns. The term "residential" includes all finished and
     3  unfinished areas that are contained within a residential
     4  building, such as basements, but does not include attached
     5  garages, attics, crawl spaces or nonresidential uses.
     6  Section 506-B.  Amount of fee for residential building
     7                     construction.
     8     (a)  Base building excise fee.--The combined amount of the
     9  building excise fee imposed by a municipality and school
    10  district for residential construction shall be as follows:
    11         (1)  Residential multifamily construction - not to exceed
    12     $15,500 per unit.
    13         (2)  Residential single-family construction - not to
    14     exceed $13,000 per unit.
    15     (b)  Subdivisions over 25 units under certain conditions.--
    16  For an applicant that applies for building permits for more than
    17  25 residential units for a single subdivision in one fiscal year
    18  the combined amount of the building excise fee imposed by a
    19  municipality and school district, beginning with the 26th unit,
    20  if the development of the subdivision is in a school district
    21  where a school is at or above 90% of the rated pupil capacity,
    22  or causes the roads or intersection within one centerline mile
    23  in any direction of any new street connecting the subdivision to
    24  be lower than a level of service D, as set forth in the Highway
    25  Capacity Manual, Special Report 209, of the Transportation
    26  Research Board, shall be as follows:
    27         (1)  Residential multifamily construction - not to exceed
    28     $31,000 per unit.
    29         (2)  Residential single-family construction - not to
    30     exceed $26,000 per unit.
    20060H2564B3807                 - 30 -     

     1     (c)  Calculation of amounts.--The amount of the building fee
     2  to be paid by an applicant shall be determined by the municipal
     3  code administrator or school district manager.
     4     (d)  Interpretation.--All phases or sections of a single
     5  development shall be considered a single subdivision for the
     6  purpose of this subarticle, in the discretion of the code
     7  administrator.
     8     (e)  Piecemeal applications.--An applicant for a building
     9  permit shall not avoid the intent of this subarticle by
    10  submitting piecemeal applications for building permits. However,
    11  an applicant may seek approval of only a portion of the
    12  subdivision or development, provided that the impact from all
    13  previously approved building permits from that development shall
    14  be considered during the building permit review of each
    15  subsequent portion of the development.
    16     (f)  Fee sharing.--
    17         (1)  Except as otherwise provided under paragraphs (2)
    18     and (3), a municipality and the school district shall each be
    19     entitled to 50% of the fee.
    20         (2)  Where only the municipality or the school district
    21     levies the fee, the entity levying the fee may collect the
    22     entire amount.
    23         (3)  A municipality and school district may jointly agree
    24     to share the fee in percentages other than 50%.
    25  Section 507-B.  Amount of fee for nonresidential building
    26                     construction.
    27     (a)  General rule.--The maximum amount of the fee for the
    28  municipality and school district on nonresidential construction
    29  shall be as set forth in the following table. For a mixed-use
    30  building, the fee shall be imposed on the basis of the primary
    20060H2564B3807                 - 31 -     

     1  use of the building as determined by the code administrator,