LOCAL REG-STATE FACILITIES

Session: 104th General Assembly
Year: 2025
Bill #: HB3493
Category: Economic Development
Position: Oppose
Mandate? Yes
Revenue Loss?
Authority Preemption? Yes

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Summary as Introduced

Amends the Capital Development Board Act. Provides that an ordinance of a unit of local government shall not be enforced against the construction, reconstruction, improvement, or installation of a State facility. Provides that the amendatory Act applies to the construction, reconstruction, improvement, and installation of State facilities that are either ongoing or that start on or after the effective date of the amendatory Act. Provides that the Capital Development Board shall, to the fullest extent practicable, coordinate with local utilities regarding utility connection requirements and procedures. Defines "State facilities". Limits home rule powers.

Staff Analysis

House Amendment 1

House Amendment 1 to HB 3493 significantly modifies the original bill by narrowing the scope of local government authority that is preempted and introducing verification and cost clarification provisions. The amendment maintains the bill’s general intent to limit local government interference in state facility projects but adds key exceptions and accountability mechanisms.

Key Changes Compared to the Introduced Bill:

1. Clarification of Local Government Ordinance Enforcement

Original bill: Prohibited enforcement of any local ordinance or permitting requirement against the construction, reconstruction, improvement, or installation of a state facility.

Amendment: Allows enforcement of some local ordinances and permitting requirements if:

They come from a sanitary district or relate to a municipally-owned wastewater system, and

They are mandated by State or federal laws, rules, or regulations, or

They are related to environmental protection and supported by industry standards.

2. Verification Requirement

The Capital Development Board (CDB) can request verification from local entities that their ordinances or permitting requirements meet the above criteria.

Sanitary districts and municipalities regulating wastewater systems must provide supporting information when requested.

3. Permitting Fee Provision Removed

The amendment removes a provision in the original bill that prohibited local governments from:

Charging permitting fees

Requiring permit inspections for state facility construction or related work

4. Definition of “Fair and Reasonable Connection or Impact Costs”

New language defines what constitutes acceptable charges from local governments:

Costs must be directly caused by the state facility’s use of or impact on local infrastructure, or

Be consistent with fees charged to private sector projects of similar scale or impact

Potential Impact on Counties and Local Governments:

Limits local control over state facility projects, particularly concerning permitting and regulatory authority, unless the ordinance is related to environmental compliance or wastewater management and meets the verification criteria.

Provides a pathway for sanitary districts and municipalities to maintain some regulatory role by demonstrating compliance with State/federal mandates or environmental standards.

Protects counties and municipalities by enabling them to recover demonstrable infrastructure costs under the new “fair and reasonable” cost language, helping avoid unfunded burdens from state construction projects.

Could lead to more streamlined state project development, but potentially reduces revenue from permits and limits local oversight unless environmental concerns are demonstrably implicated.

In summary, HFA 0001 seeks to balance the need for efficient state facility development with limited but protected local government authority in key areas, especially environmental and wastewater regulation.



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