Oppose HB 2066 - Protects Local Control Over Development Fees

I urge you to oppose HB 2066, scheduled for consideration in the House Government Committee this Wednesday. This legislation severely restricts municipal authority to assess development fees and undermines local control over critical infrastructure planning. Representative Olson's bill imposes rigid constraints on how cities can calculate and collect development fees for necessary public services. While framed as ensuring proportionality, the legislation creates a complex regulatory framework that limits cities' ability to adequately fund infrastructure needed to serve growing communities. The bill requires that fees be strictly proportionate to a single service unit's use and prohibits municipalities from imposing fees exceeding what is required to meet increased use from that specific development. This narrow interpretation fails to account for the cumulative impact of development on existing infrastructure and the real costs of expanding capacity. The bill mandates extensive administrative requirements including infrastructure improvements plans updated every five years, advisory committees with specific industry representation, biennial audits, and detailed annual reporting. Failure to comply with these reporting requirements results in complete inability to collect development fees. These provisions create bureaucratic hurdles that divert municipal resources from actual service delivery. Most concerning is the provision preventing municipalities from using development fees to upgrade existing services to meet stricter standards or provide higher levels of service to existing development. This restriction locks cities into outdated service levels and prevents them from addressing evolving community needs. The 24-month fee protection period and mandatory refund provisions further constrain municipal flexibility to respond to changing conditions. Cities are best positioned to understand their infrastructure needs and determine appropriate fee structures for their communities. This legislation substitutes state mandates for local decision-making and hamstrings municipalities' ability to ensure new development pays its fair share of infrastructure costs. When cities cannot adequately fund necessary services, existing taxpayers bear the burden. I ask you to vote no on HB 2066 and preserve local authority over development fee policies.