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                                                        PRINTER'S NO. 60

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 61 Session of 1997


        INTRODUCED BY HOLL, JANUARY 17, 1997

        REFERRED TO LOCAL GOVERNMENT, JANUARY 17, 1997

                                     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 class A
     6     through eighth classes, individually or jointly, to plan
     7     their development and to govern the same by zoning,
     8     subdivision and land development ordinances, planned
     9     residential development and other ordinances, by official
    10     maps, by the reservation of certain land for future public
    11     purpose and by the acquisition of such land; to promote the
    12     conservation of energy through the use of planning practices
    13     and to promote the effective utilization of renewable energy
    14     sources; providing for the establishment of planning
    15     commissions, planning departments, planning committees and
    16     zoning hearing boards, authorizing them to charge fees, make
    17     inspections and hold public hearings; providing for
    18     mediation; providing for transferable development rights;
    19     providing for appropriations, appeals to courts and penalties
    20     for violations; and repealing acts and parts of acts,"
    21     further providing for impact fees.

    22     The General Assembly of the Commonwealth of Pennsylvania
    23  hereby enacts as follows:
    24     Section 1.  The definitions of "impact fee" and
    25  "transportation service area" in section 502-A of the act of
    26  July 31, 1968 (P.L.805, No.247), known as the Pennsylvania
    27  Municipalities Planning Code, reenacted and amended December 21,

     1  1988 (P.L.1329, No.170) and added December 19, 1990 (P.L.1343,
     2  No.209), are amended and the section is amended by adding
     3  definitions 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 and
    11  recreational area improvements necessitated by and attributable
    12  to new development.
    13     * * *
    14     "Recreation service area," a geographically defined portion
    15  of the municipality not to exceed seven square miles of area
    16  which, pursuant to the comprehensive plan and applicable
    17  district zoning regulations, has an aggregation of sites with
    18  development potential creating the need for recreation
    19  improvements within such area to be funded by impact fees. No
    20  area may be included in more than one recreation service area.
    21     "Recreational area improvements," land or facilities for
    22  public parks or playgrounds, open space areas, scenic sight
    23  areas, or preservation of historically significant sites or for
    24  any related public outdoor recreation purpose.
    25     * * *
    26     ["Transportation service area," a geographically defined
    27  portion of the municipality not to exceed seven square miles of
    28  area which, pursuant to the comprehensive plan and applicable
    29  district zoning regulations, has an aggregation of sites with
    30  development potential creating the need for transportation
    19970S0061B0060                  - 2 -

     1  improvements within such area to be funded by impact fees. No
     2  area may be included in more than one transportation service
     3  area.]
     4     Section 2.  Sections 504-A, 505-A and 506-A(a) of the act,
     5  added December 19, 1990 (P.L.1343, No.209), are amended to read:
     6     Section 504-A.  Transportation and Recreation Capital
     7  Improvements Plan.--(a)  A transportation and recreation capital
     8  improvements plan shall be prepared and adopted by the governing
     9  body of the municipality prior to the enactment of any impact
    10  fee ordinance. The municipality shall provide qualified
    11  professionals to assist the transportation and recreation impact
    12  fee advisory committee or the planning commission in the
    13  preparation of the transportation and recreation capital
    14  improvements plan and calculation of the impact fees to be
    15  imposed to implement the plan in accordance with the procedures,
    16  provisions and standards set forth in this act.
    17     (b)  (1)  An impact fee advisory committee shall be created
    18     by resolution of a municipality intending to adopt a
    19     transportation and recreation impact fee ordinance. The
    20     resolution shall describe the geographical area or areas of
    21     the municipality for which the advisory committee shall
    22     develop the land use assumptions and conduct the roadway
    23     sufficiency analysis studies.
    24         (2)  The advisory committee shall consist of no fewer
    25     than seven nor more than 15 members, all of whom shall serve
    26     without compensation. The governing body of the municipality
    27     shall appoint as members of the advisory committee persons
    28     who are either residents of the municipality or conduct
    29     business within the municipality and are not employees or
    30     officials of the municipality. Not less than 40% of the
    19970S0061B0060                  - 3 -

     1     members of the advisory committee shall be representatives of
     2     the real estate, commercial and residential development, and
     3     building industries. The municipality may also appoint
     4     traffic or transportation and recreation engineers or
     5     planners to serve on the advisory committee provided the
     6     appointment is made after consultation with the advisory
     7     committee members. The traffic or transportation and
     8     recreation engineers or planners appointed to the advisory
     9     committee may not be employed by the municipality for the
    10     development of or consultation on the roadways sufficiency
    11     analysis or analysis of recreation needs which may lead to
    12     the adoption of the transportation and recreation capital
    13     improvements plan.
    14         (3)  The governing body of the municipality may elect to
    15     designate the municipal planning commission appointed
    16     pursuant to Article II as the impact fee advisory committee.
    17     If the existing planning commission does not include members
    18     representative of the real estate, commercial and residential
    19     development, and building industries at no less than 40% of
    20     the membership, the governing body of the municipality shall
    21     appoint the sufficient number of representatives of the
    22     aforementioned industries who reside in the municipality or
    23     conduct business within the municipality to serve as ad hoc
    24     voting members of the planning commission whenever such
    25     commission functions as the impact fee advisory committee.
    26         (4)  No impact fee ordinance may be invalidated as a
    27     result of any legal action challenging the composition of the
    28     advisory committee which is not brought within 90 days
    29     following the first public meeting of said advisory
    30     committee.
    19970S0061B0060                  - 4 -

     1         (5)  The advisory committee shall serve in an advisory
     2     capacity and shall have the following duties:
     3             (i)  To make recommendations with respect to land use
     4         assumptions, the development of comprehensive road
     5         improvements, the development of recreational area
     6         improvements and impact fees.
     7             (ii)  To make recommendations to approve, disapprove
     8         or modify a capital improvement program by preparing a
     9         written report containing these recommendations to the
    10         municipality.
    11             (iii)  To monitor and evaluate the implementation of
    12         a capital improvement program and the assessment of
    13         impact fees, and report annually to the municipality with
    14         respect to the same.
    15             (iv)  To advise the municipality of the need to
    16         revise or update the land use assumptions, capital
    17         improvement program, or impact fees.
    18     (c)  (1)  As a prerequisite to the development of the
    19     transportation and recreational area capital improvements
    20     plan, the advisory committee shall develop land use
    21     assumptions for the determination of future growth and
    22     development within the designated area or areas as described
    23     by the municipal resolution and recommend its findings to the
    24     governing body. Prior to the issuance and presentation of a
    25     written report to the municipality on the recommendations for
    26     proposed land use assumptions upon which to base the
    27     development of the transportation and recreational area
    28     capital improvements plan, the advisory committee shall
    29     conduct a public hearing, following the providing of proper
    30     notice in accordance with section 107, for the consideration
    19970S0061B0060                  - 5 -

     1     of the land use assumption proposals. Following receipt of
     2     the advisory committee report, which shall include the
     3     findings of the public hearing, the governing body of the
     4     municipality shall by resolution approve, disapprove or
     5     modify the land use assumptions recommended by the advisory
     6     committee.
     7         (2)  The land use assumptions report shall:
     8             (i)  Describe the existing land uses within the
     9         designated area or areas and the highways, roads, or
    10         streets incorporated therein.
    11             (ii)  To the extent possible, reflect projected
    12         changes in land uses, densities of residential
    13         development, intensities of nonresidential development,
    14         and population growth rates which may affect the level of
    15         traffic and the need for recreational areas within the
    16         designated area or areas over a period of at least the
    17         next five years. These projections shall be based on an
    18         analysis of population growth rates during the prior
    19         five-year period, current zoning regulations, approved
    20         subdivision and land developments, and the future land
    21         use plan contained in the adopted municipal comprehensive
    22         plan. It may also refer to all professionally produced
    23         studies and reports pertaining to the municipality
    24         regarding such items as demographics, parks and
    25         recreation, economic development and any other study
    26         deemed appropriate by the municipality.
    27         (3)  If the municipality is located in a county which has
    28     created a county planning agency, the advisory committee
    29     shall forward a copy of their proposed land use assumptions
    30     to the county planning agency for its comments at least 30
    19970S0061B0060                  - 6 -

     1     days prior to the public hearing. At the same time, the
     2     advisory committee shall also forward copies of the proposed
     3     assumptions to all contiguous municipalities and to the local
     4     school district for their review and comments.
     5     (d)  (1)  Upon adoption of the land use assumptions by the
     6     municipality, the advisory committee shall prepare, or cause
     7     to be prepared, a roadway sufficiency analysis and recreation
     8     needs analysis which shall establish the existing level of
     9     infrastructure sufficiency and preferred levels of service
    10     within any designated area or areas of the municipality as
    11     described by the resolution adopted pursuant to the creation
    12     of the advisory committee. The roadway sufficiency analysis
    13     shall be prepared for any highway, road or street within the
    14     designated area or areas on which the need for road
    15     improvements attributable to projected future new development
    16     is anticipated. The municipality shall commission a traffic
    17     or transportation engineer or planner to assist the advisory
    18     committee in the preparation of the roadway sufficiency
    19     analysis. It shall be deemed that the roads, streets and
    20     highways not on the roadway sufficiency analysis report are
    21     not impacted by future development. The roadway sufficiency
    22     analysis shall include the following components:
    23             (i)  The establishment of existing volumes of traffic
    24         and existing levels of service.
    25             (ii)  The identification of a preferred level of
    26         service established pursuant to the following:
    27                 (A)  The level of service shall be one of the
    28             categories of road service as defined by the
    29             Transportation Research Board of the National Academy
    30             of Sciences or the Institute of Transportation
    19970S0061B0060                  - 7 -

     1             Engineers. The municipality may choose to select a
     2             level of service on a transportation service area
     3             basis as the preferred level of service. The
     4             preferred levels of service shall be designated by
     5             the governing body of the municipality following
     6             determination of the existing level of service as
     7             established by the roadway sufficiency analysis. If
     8             the preferred level of service is designated as
     9             greater than the existing level of service, the
    10             municipality shall be required to identify road
    11             improvements needed to correct the existing
    12             deficiencies.
    13                 (B)  Following adoption of the preferred level of
    14             service, such level of service may be waived for a
    15             particular road segment or intersection if the
    16             municipality finds that one or more of the following
    17             effectively precludes provision of road improvements
    18             necessary to meet the level of service: geometric
    19             design limitations; topographic limitations; or the
    20             unavailability of necessary right-of-way.
    21             (iii)  The identification of existing deficiencies
    22         which need to be remedied to accommodate existing traffic
    23         at the preferred level of service.
    24             (iv)  The specification of the required road
    25         improvements needed to bring the existing level of
    26         service to the preferred level of service.
    27             (v)  A projection of anticipated traffic volumes,
    28         with a separate determination of pass-through trips, for
    29         a period of not less than five years from the date of the
    30         preparation of the roadway sufficiency analysis based
    19970S0061B0060                  - 8 -

     1         upon the land use assumptions adopted under this section.
     2             (vi)  The identification of forecasted deficiencies
     3         which will be created by "pass-through" trips.
     4         (2)  The advisory committee shall provide the governing
     5     body with the findings of the roadway sufficiency analysis.
     6     Following receipt of the advisory committee report, the
     7     governing body shall by resolution approve, disapprove or
     8     modify the roadway sufficiency analysis recommended by the
     9     advisory committee.
    10     (e)  (1)  Utilizing the information provided by the land use
    11     assumption and the roadway sufficiency analysis as the basis
    12     for determination of the need for road improvements to remedy
    13     existing deficiencies and accommodate future projected
    14     traffic volumes and after considering the results of a
    15     recreation needs analysis, the advisory committee shall
    16     identify those capital projects which the municipality should
    17     consider for adoption in its transportation and recreational
    18     area capital improvements plan and shall recommend the
    19     delineation of the transportation and recreation service area
    20     or areas. The capital-improvement plan shall be developed in
    21     accordance with generally accepted engineering and planning
    22     practices. The capital improvement program shall include
    23     projections of all designated road improvements in the
    24     capital improvement program. The total cost of the road
    25     improvements shall be based upon estimated costs, using
    26     standard traffic engineering standards, with a 10% maximum
    27     contingency which may be added to said estimate. These costs
    28     shall include improvements to correct existing deficiencies
    29     with identified anticipated sources of funding and timetables
    30     for implementation. The transportation and recreational area
    19970S0061B0060                  - 9 -

     1     capital improvements plan shall include the following
     2     components:
     3             (i)  (A)  A description of the existing highways,
     4             roads and streets within the transportation service
     5             area and the road improvements required to update,
     6             improve, expand or replace such highways, roads and
     7             streets in order to meet the preferred level of
     8             service and usage and stricter safety, efficiency,
     9             environmental, or regulatory standards not
    10             attributable to new development.
    11                 (B)  A description of existing recreation areas
    12             within the recreational service area and the
    13             improvements required to update, improve and expand
    14             such facilities.
    15             (ii)  A plan specifying the road improvements within
    16         the transportation service area attributable to
    17         forecasted pass-through traffic so as to maintain the
    18         preferred level of service after existing deficiencies
    19         identified by the roadway sufficiency analysis have been
    20         remedied.
    21             (iii)  A plan specifying the road improvements or
    22         portions thereof and recreational area improvements
    23         within the transportation service area and the recreation
    24         service area attributable to the projected future
    25         development, consistent with the adopted land use
    26         assumptions[, in order]. The plan with regard to road
    27         improvements or portions thereof shall be designed to
    28         maintain the preferred level of service after
    29         accommodation for pass-through traffic and after existing
    30         deficiencies identified in the roadway sufficiency
    19970S0061B0060                 - 10 -

     1         analysis have been remedied.
     2             (iv)  The projected costs of the road improvements
     3         and recreational area improvements to be included in the
     4         transportation and recreational area capital improvements
     5         plan, calculating separately for each project by the
     6         following categories:
     7                 (A)  The costs or portion thereof associated with
     8             correcting existing deficiencies as specified in
     9             subparagraph (i).
    10                 (B)  The costs or portions thereof attributable
    11             to providing road improvements to accommodate
    12             forecasted pass-through trips as specified in
    13             subparagraph (ii).
    14                 (C)  The costs of providing necessary road
    15             improvements or portions thereof and recreational
    16             area improvements attributable to projected future
    17             development as specified in subparagraph (iii).
    18             (v)  A projected timetable and proposed budget for
    19         constructing each road improvement and recreational area
    20         improvement contained in the plan.
    21             (vi)  The proposed source of funding for each capital
    22         improvement included in the road plan. This shall include
    23         anticipated revenue from the Federal Government, State
    24         government, municipality, impact fees and any other
    25         source. The estimated revenue for each capital
    26         improvement in the plan which is to be provided by impact
    27         fees shall be identified separately for each project.
    28         (2)  The source of funding required for projects to
    29     remedy existing deficiencies as set forth in paragraph (1)(i)
    30     and the road improvements attributable to forecasted pass-
    19970S0061B0060                 - 11 -

     1     through traffic as set forth in paragraph (1)(ii) shall be
     2     exclusive of funds generated from the assessment of impact
     3     fees. Those improvements set forth in paragraph (1)(iii) to
     4     any highway, road or street which qualifies as a State
     5     highway or a portion of the rural State highway system as
     6     provided in section 102 of the act of June 1, 1945 (P.L.1242,
     7     No.428), known as the "State Highway Law," may be funded from
     8     impact fees in an amount not to exceed 50% of the total cost
     9     of such improvements.
    10         (3)  Upon the completion of the transportation and
    11     recreational area capital improvements plan and prior to its
    12     adoption by the governing body of the municipality and the
    13     enactment of a municipal impact fee ordinance, the advisory
    14     committee shall hold at least one public hearing for
    15     consideration of the plan. Notification of the public hearing
    16     shall comply with the requirement of section 107. The plan
    17     shall be available for public inspection at least ten working
    18     days prior to the date of the public hearing. After
    19     presentation of the recommendation by the advisory committee
    20     or its representatives at a public meeting of the governing
    21     body, the governing body may make such changes to the plan
    22     prior to its adoption as the governing body deems appropriate
    23     following review of the public comments made at the public
    24     hearing.
    25         (4)  The governing body may periodically request the
    26     impact fee advisory committee to review the capital
    27     improvements plan and impact fee charges and make
    28     recommendations for revisions for subsequent consideration
    29     and adoption by the governing body based only on the
    30     following:
    19970S0061B0060                 - 12 -

     1             (i)  New subsequent development which has occurred in
     2         the municipality.
     3             (ii)  Capital improvements contained in the capital
     4         improvements plan, the construction of which has been
     5         completed.
     6             (iii)  Unavoidable delays beyond the responsibility
     7         or control of the municipality in the construction of
     8         capital improvements contained in the plan.
     9             (iv)  Significant changes in the land use
    10         assumptions.
    11             (v)  Significant changes in the estimated costs of
    12         the proposed transportation or recreational area capital
    13         improvements.
    14             (vi)  Significant changes in the projected revenue
    15         from all sources listed needed for the construction of
    16         the transportation and recreational area capital
    17         improvements.
    18     (f)  Any improvements to Federal-aid or State highways to be
    19  funded in part by impact fees shall require the approval of the
    20  Department of Transportation and, if necessary, the United
    21  States Department of Transportation. Nothing in this act shall
    22  be deemed to alter or diminish the powers, duties or
    23  jurisdiction of the Department of Transportation with respect to
    24  State highways or the rural State highway system.
    25     Section 505-A.  Establishment and Administration of Impact
    26  Fees.--(a)  (1)  The impact fee for transportation capital
    27     improvements shall be based upon the total costs of the road
    28     improvements included in the adopted capital improvement plan
    29     within a given transportation service area attributable to
    30     and necessitated by new development within the service area
    19970S0061B0060                 - 13 -

     1     as defined pursuant to section 504-A(e)(1)(iii), divided by
     2     the number of anticipated peak hour trips generated by all
     3     new development consistent with the adopted land use
     4     assumptions and calculated in accordance with the Trip
     5     Generation Manual published by the Institute of
     6     Transportation Engineers, fourth or subsequent edition as
     7     adopted by the municipality by ordinance or resolution to
     8     equal a per trip cost for transportation improvements within
     9     the service area.
    10         (2)  The specific impact fee for a specific new
    11     development or subdivision within the service area for road
    12     improvements shall be determined as of the date of
    13     preliminary land development or subdivision approval by
    14     multiplying the per trip cost established for the service
    15     area as determined in section 503-A(a) by the estimated
    16     number of trips to be generated by the new development or
    17     subdivision using generally accepted traffic engineering
    18     standards.
    19         (3)  A municipality may authorize or require the
    20     preparation of a special transportation study in order to
    21     determine traffic generation or circulation for a new
    22     nonresidential development to assist in the determination of
    23     the amount of the transportation fee for such development or
    24     subdivision. The municipality shall set forth by ordinance
    25     the circumstances in which such a study should be authorized
    26     or required, provided however, that no special transportation
    27     study shall be required when there is no deviation from the
    28     land use assumptions resulting in increased density,
    29     intensity or trip generation by a particular development. A
    30     developer may, however, at any time, voluntarily prepare and
    19970S0061B0060                 - 14 -

     1     submit a traffic study for a proposed development or may have
     2     such a study prepared at its expense after the development is
     3     completed to include actual trips generated by the
     4     development for use in any appeal as provided for under this
     5     act. The special transportation study shall be prepared by a
     6     qualified traffic or transportation engineer using procedures
     7     and methods established by the municipality based on
     8     generally accepted transportation planning and engineering
     9     standards. The study, where required by the municipality,
    10     shall be submitted prior to the imposition of an impact fee
    11     and shall be taken into consideration by the municipality in
    12     increasing or reducing the amount of the impact fee for the
    13     new development for the amount shown on the impact fee
    14     schedule adopted by the municipality.
    15         (4)  The impact fee for recreational areas capital
    16     improvements shall be determined according to a formula
    17     developed by the department.
    18     (b)  The governing body shall enact an impact ordinance
    19  setting forth a description of the boundaries and a fee schedule
    20  for each transportation service area and recreation service
    21  area. At least ten working days prior to the adoption of the
    22  ordinance at a public meeting, the ordinance shall be available
    23  for public inspection. The impact fee ordinance shall include,
    24  but not be limited to, those provisions set forth in section
    25  503-A(a) and conform with the standards, provisions and
    26  procedures set forth in this act.
    27     (c)  (1)  A municipality may give notice of its intention to
    28     adopt an impact fee ordinance by publishing a statement of
    29     such intention twice in one newspaper of general circulation
    30     in the municipality. The first publication shall not occur
    19970S0061B0060                 - 15 -

     1     before the adoption of the resolution by which the
     2     municipality establishes its impact fee advisory committee.
     3     The second publication shall occur not less than one nor more
     4     than three weeks thereafter.
     5         (2)  A municipal impact fee ordinance adopted under and
     6     pursuant to this act may provide that the provisions of the
     7     ordinance may have retroactive application, for a period not
     8     to exceed 18 months after the adoption of the resolution
     9     creating an impact fee advisory committee pursuant to section
    10     504-A(b)(1), to preliminary or tentative applications for
    11     land development, subdivision or PRD with the municipality on
    12     or after the first publication of the municipality's
    13     intention to adopt an impact fee ordinance; provided,
    14     however, that the impact fee imposed on building permits for
    15     construction of new development approved pursuant to such
    16     applications filed during the period of pendancy shall not
    17     exceed $1,000 per anticipated peak hour trip as calculated in
    18     accordance with the generally accepted traffic engineering
    19     standards as set forth under the provisions of subsection
    20     (a)(1) or the subsequently adopted fee established by the
    21     ordinance, whichever is less.
    22         (3)  No action upon an application for land development,
    23     subdivision, or PRD shall be postponed, delayed or extended
    24     by the municipality because adoption of a municipal impact
    25     fee ordinance is being considered. Furthermore, the adoption
    26     of an impact fee ordinance more than 18 months after adoption
    27     of a resolution creating the impact fee advisory committee
    28     shall not be retroactive or applicable to plats submitted for
    29     preliminary or tentative approval prior to the legal
    30     publication of the proposed impact fee ordinance and any fees
    19970S0061B0060                 - 16 -

     1     collected pursuant to this subsection shall be refunded to
     2     the payor of such fees; provided the adoption of the impact
     3     fee ordinance was not delayed due to the initiation of any
     4     litigation challenging the adoption of such ordinance.
     5     (d)  Any impact fees collected by a municipality pursuant to
     6  a municipal ordinance shall be deposited by the municipality
     7  into an interest bearing fund account designated solely for
     8  impact fees, clearly identifying the transportation service area
     9  or recreation service area from which the fee was received.
    10  Funds collected in one transportation service area or recreation
    11  service area must be accounted for and expended within that
    12  transportation service area or recreation service area, as the
    13  case may be, and such funds shall only be expended for that
    14  portion of the transportation or recreational area capital
    15  improvements identified as being funded by impact fees under the
    16  transportation and recreational area capital improvements plan.
    17  All interest earned on such funds shall become funds of that
    18  account. The municipality shall provide that an accounting be
    19  made annually for any fund account containing impact fee
    20  proceeds and earned interest. Such accounting shall include, but
    21  not be limited to, the total funds collected, the source of the
    22  funds collected, the total amount of interest accruing on such
    23  funds and the amount of funds expended on specific
    24  transportation and recreational area improvements. Notice of the
    25  availability of the results of the accounting shall be included
    26  and published as part of the annual audit required of
    27  municipalities. A copy of the report shall also be provided to
    28  the advisory committee.
    29     (e)  All transportation and recreation impact fees imposed
    30  under the terms of this act shall be payable at the time of the
    19970S0061B0060                 - 17 -

     1  issuance of building permits for the applicable new development
     2  or subdivision. The municipality may not require the applicant
     3  to provide a guarantee of financial security for the payment of
     4  any transportation and recreation impact fees, except the
     5  municipality may provide for the deposit with the municipality
     6  of financial security in an amount sufficient to cover the cost
     7  of the construction of any road improvement or recreational area
     8  improvement contained in the transportation and recreational
     9  area capital improvement plan which is performed by the
    10  applicant.
    11     (f)  An applicant shall be entitled to a credit against the
    12  impact fee in the amount of the fair market value of any land
    13  dedicated by the applicant to the municipality for future right-
    14  of-way, realignment or widening of any existing roadways [or],
    15  for the value of any construction of road improvements contained
    16  in the transportation capital improvement program which is
    17  performed at the applicant's expense or for the fair market
    18  value of any land dedicated for recreational use. The amount of
    19  such credit for any capital improvement constructed shall be the
    20  amount allocated in the capital improvement program, including
    21  contingency factors, for such work. The fair market value of any
    22  land dedicated by the applicant shall be determined as of the
    23  date of the submission of the land development or subdivision
    24  application to the municipality.
    25     (g)  Impact fees previously collected by a municipality shall
    26  be refunded, together with earned accrued interest thereon, to
    27  the payor of such fees from the date of payment under any of the
    28  following circumstances:
    29         (1)  In the event that a municipality terminates or
    30     completes an adopted capital improvements plan for a
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     1     transportation service area or a recreation service area and
     2     there remains at the time of termination or completion
     3     undispersed funds in the accounts established for that
     4     purpose, the municipality shall provide written notice by
     5     certified mail to those persons who previously paid the fees
     6     which remain undispersed of the availability of said funds
     7     for refund of the person's proportionate share of the fund
     8     balance. The allocation of the refund shall be determined by
     9     generally accepted accounting practices. In the event that
    10     any of the funds remain unclaimed following one year after
    11     the notice, which notice shall be provided to the last known
    12     address provided by the payor of the fees to the
    13     municipality, the municipality shall be authorized to
    14     transfer any funds so remaining to any other fund in the
    15     municipality without any further obligation to refund said
    16     funds.
    17         (2)  If the municipality fails to commence construction
    18     of any transportation service area road improvements or
    19     recreational area improvements within three years of the
    20     scheduled construction date set forth in the transportation
    21     and recreational area capital improvements plan, any person
    22     who paid any impact fees pursuant to that transportation and
    23     recreational area capital improvements plan shall, upon
    24     written request to the municipality, receive a refund of that
    25     portion of the fee attributable to the contribution for the
    26     uncommenced road improvement, plus the interest accumulated
    27     thereon from the date of payment.
    28         (3)  If, upon completion of any road or recreational area
    29     improvements project, the actual expenditures of the capital
    30     project are less than 95% of the costs properly allocable to
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     1     the fee paid within the transportation or recreation service
     2     area in which the completed road improvement or recreational
     3     area improvement was adopted, the municipality shall refund
     4     the pro rata difference between the budgeted costs and the
     5     actual expenditures, including interest accumulated thereon
     6     from the date of payment, to the person or persons who paid
     7     the impact fees for such improvements.
     8         (4)  If the new development for which transportation and
     9     recreation impact fees were paid is not commenced prior to
    10     the expiration of building permits issued for the new
    11     development within the time limits established by applicable
    12     building codes within the municipality or if the building
    13     permit as issued for the new development is altered and the
    14     alteration results in a decrease in the amount of the impact
    15     fee due in accordance with the calculations set forth in
    16     subsection (a)(1).
    17     Section 506-A.  Appeals.--(a)  Any person required to pay an
    18  impact fee shall have the right to contest the land use
    19  assumptions, the development and implementation of the
    20  transportation and recreational area capital improvement
    21  program, the imposition of impact fees, the periodic updating of
    22  the transportation and recreational area capital improvement
    23  program, the refund of impact fees and all other matters
    24  relating to impact fees, including the constitutionality or
    25  validity of the impact fee ordinance by filing an appeal with
    26  the court of common pleas.
    27     * * *
    28     Section 3.  This act take effect immediately.


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