SB 2427 revises the use of impact fees by political subdivisions in Texas. It narrows the definition of "impact fees" to cover only the actual labor and material costs for capital improvements or facility expansions necessitated by new development. It removes land acquisition costs and certain other fees from allowable uses. Additionally, it prohibits local governments from collecting impact fees in areas where services are not available unless construction is scheduled within two years. It also clarifies that property owners may offset impact fees by directly financing necessary improvements​.