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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
766
BY
WAYS
AND
MEANS
COMMITTEE
AN
ACT
1
RELATING
TO
DEVELOPMENT
IMPACT
FEES;
AMENDING
SECTION
67
-
8203,
IDAHO
CODE,
2
TO
REVISE
A
DEFINITION;
AND
DECLARING
AN
EMERGENCY
AND
PROVIDING
AN
EF
-
3
FECTIVE
DATE.
4
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
5
SECTION
1.
That
Section
67
-
8203,
Idaho
Code,
be,
and
the
same
is
hereby
6
amended
to
read
as
follows:
7
67
-
8203.
DEFINITIONS.
As
used
in
this
chapter:
8
(1)
"Affordable
housing"
means
housing
affordable
to
families
whose
9
incomes
do
not
exceed
eighty
percent
(80%)
of
the
median
income
for
the
ser
-
10
vice
area
or
areas
within
the
jurisdiction
of
the
governmental
entity.
1
1
(2)
"Appropriate"
means
to
legally
obligate
by
contract
or
otherwise
12
commit
to
use
by
appropriation
or
other
official
act
of
a
governmental
en
-
13
tity.
14
(3)
"Capital
improvements"
means
improvements
with
a
useful
life
of
ten
15
(10)
years
or
more,
by
new
construction
or
other
action,
which
increase
the
16
service
capacity
of
a
public
facility.
17
(4)
"Capital
improvement
element"
means
a
component
of
a
comprehensive
18
plan
adopted
pursuant
to
chapter
65,
title
67,
Idaho
Code,
which
component
19
meets
the
requirements
of
a
capital
improvements
plan
pursuant
to
this
chap
-
20
ter.
21
(5)
"Capital
improvements
plan"
means
a
plan
adopted
pursuant
to
this
22
chapter
that
identifies
capital
improvements
for
which
development
impact
23
fees
may
be
used
as
a
funding
source.
24
(6)
"Developer"
means
any
person
or
legal
entity
undertaking
develop
-
25
ment,
including
a
party
that
undertakes
the
subdivision
of
property
pursuant
26
to
sections
50
-
1301
through
50
-
1334,
Idaho
Code.
27
(7)
"Development"
means
any
construction
or
installation
of
a
building
28
or
structure,
or
any
change
in
use
of
a
building
or
structure,
or
any
change
29
in
the
use,
character
or
appearance
of
land,
which
creates
additional
demand
30
and
need
for
public
facilities
or
the
subdivision
of
property
that
would
per
-
31
mit
any
change
in
the
use,
character
or
appearance
of
land.
As
used
in
this
32
chapter,
"development"
shall
not
include
activities
that
would
otherwise
33
be
subject
to
payment
of
the
development
impact
fee
if
such
activities
are
34
undertaken
by
a
taxing
district,
as
defined
in
section
63
-
201,
Idaho
Code,
35
or
by
an
authorized
public
charter
school,
as
defined
in
section
33
-
5202A,
36
Idaho
Code,
in
the
course
of
carrying
out
its
statutory
responsibilities,
37
unless
the
adopted
impact
fee
ordinance
expressly
includes
taxing
districts
38
or
public
charter
schools
as
being
subject
to
development
impact
fees.
39
(8)
"Development
approval"
means
any
written
authorization
from
a
gov
-
40
ernmental
entity
that
authorizes
the
commencement
of
a
development.
41
2
(9)
"Development
impact
fee"
means
a
payment
of
money
imposed
as
a
con
-
1
dition
of
development
approval
to
pay
for
a
proportionate
share
of
the
cost
2
of
system
improvements
needed
to
serve
development.
This
term
is
also
re
-
3
ferred
to
as
an
impact
fee
in
this
chapter.
The
term
does
not
include
the
fol
-
4
lowing:
5
(a)
A
charge
or
fee
to
pay
the
administrative,
plan
review,
or
inspec
-
6
tion
costs
associated
with
permits
required
for
development;
7
(b)
Connection
or
hookup
charges;
8
(c)
Availability
charges
for
drainage,
sewer,
water,
or
transportation
9
charges
for
services
provided
directly
to
the
development;
or
10
(d)
Amounts
collected
from
a
developer
in
a
transaction
in
which
the
1
1
governmental
entity
has
incurred
expenses
in
constructing
capital
im
-
12
provements
for
the
development
if
the
owner
or
developer
has
agreed
to
13
be
financially
responsible
for
the
construction
or
installation
of
the
14
capital
improvements,
unless
a
written
agreement
is
made
pursuant
to
15
section
67
-
8209(3),
Idaho
Code,
for
credit
or
reimbursement.
16
(10)
"Development
requirement"
means
a
requirement
attached
to
a
devel
-
17
opmental
approval
or
other
governmental
action
approving
or
authorizing
a
18
particular
development
project
including,
but
not
limited
to,
a
rezoning,
19
which
requirement
compels
the
payment,
dedication
or
contribution
of
goods,
20
services,
land,
or
money
as
a
condition
of
approval.
21
(11)
"Extraordinary
costs"
means
those
costs
incurred
as
a
result
of
an
22
extraordinary
impact.
23
(12)
"Extraordinary
impact"
means
an
impact
that
is
reasonably
deter
-
24
mined
by
the
governmental
entity
to:
25
(a)
Result
in
the
need
for
system
improvements,
the
cost
of
which
will
26
significantly
exceed
the
sum
of
the
development
impact
fees
to
be
gener
-
27
ated
from
the
project
or
the
sum
agreed
to
be
paid
pursuant
to
a
develop
-
28
ment
agreement
as
allowed
by
section
67
-
8214(2),
Idaho
Code;
or
29
(b)
Result
in
the
need
for
system
improvements
that
are
not
identified
30
in
the
capital
improvements
plan.
31
(13)
"Fee
payer"
means
that
person
who
pays
or
is
required
to
pay
a
de
-
32
velopment
impact
fee.
33
(14)
"Governmental
entity"
means
any
unit
of
local
government
that
is
34
cities,
counties,
single
countywide
highway
districts,
fire
protection
dis
-
35
tricts,
and
ambulance
service
districts
that
are
each
empowered
in
this
en
-
36
abling
legislation
to
adopt
a
development
impact
fee
ordinance.
37
(15)
"Impact
fee."
See
development
impact
fee.
38
(16)
"Land
use
assumptions"
means
a
description
of
the
service
area
and
39
projections
of
land
uses,
densities,
intensities,
and
population
in
the
ser
-
40
vice
area
over
at
least
a
twenty
(20)
year
period.
41
(17)
"Level
of
service"
means
a
measure
of
the
relationship
between
ser
-
42
vice
capacity
and
service
demand
for
public
facilities.
43
(18)
"Manufactured
home"
means
a
structure,
constructed
according
to
44
HUD/FHA
mobile
home
construction
and
safety
standards,
transportable
in
one
45
(1)
or
more
sections,
which,
in
the
traveling
mode,
is
eight
(8)
feet
or
more
46
in
width
or
is
forty
(40)
body
feet
or
more
in
length,
or
when
erected
on
site,
47
is
three
hundred
twenty
(320)
or
more
square
feet,
and
which
is
built
on
a
48
permanent
chassis
and
designed
to
be
used
as
a
dwelling
with
or
without
a
49
permanent
foundation
when
connected
to
the
required
utilities,
and
includes
50
3
the
plumbing,
heating,
air
conditioning,
and
electrical
systems
contained
1
therein,
except
that
such
term
shall
include
any
structure
that
meets
all
the
2
requirements
of
this
subsection
except
the
size
requirements
and
with
re
-
3
spect
to
which
the
manufacturer
voluntarily
files
a
certification
required
4
by
the
secretary
of
housing
and
urban
development
and
complies
with
the
stan
-
5
dards
established
under
42
U.S.C.
5401
et
seq.
6
(19)
"Modular
building"
is
as
defined
in
section
39
-
4301,
Idaho
Code.
7
(20)
"Present
value"
means
the
total
current
monetary
value
of
past,
8
present,
or
future
payments,
contributions
or
dedications
of
goods,
ser
-
9
vices,
materials,
construction
or
money.
10
(21)
"Project"
means
a
particular
development
on
an
identified
parcel
1
1
of
land.
12
(22)
"Project
improvements"
means
site
improvements
and
facilities
13
that
are
planned
and
designed
to
provide
service
for
a
particular
devel
-
14
opment
project
and
that
are
necessary
for
the
use
and
convenience
of
the
15
occupants
or
users
of
the
project.
16
(23)
"Proportionate
share"
means
that
portion
of
the
cost
of
system
im
-
17
provements
determined
pursuant
to
section
67
-
8207,
Idaho
Code,
which
rea
-
18
sonably
relates
to
the
service
demands
and
needs
of
the
project.
19
(24)
"Public
facilities"
means:
20
(a)
Water
supply
production,
treatment,
storage
and
distribution
fa
-
21
cilities;
22
(b)
Wastewater
collection,
treatment
and
disposal
facilities;
23
(c)
Roads,
streets
and
bridges,
including
rights
-
of
-
way,
traffic
24
signals,
landscaping
and
any
local
components
of
state
or
federal
high
-
25
ways;
26
(d)
Stormwater
collection,
retention,
detention,
treatment
and
dis
-
27
posal
facilities,
flood
control
facilities,
and
bank
and
shore
protec
-
28
tion
and
enhancement
improvements;
29
(e)
Parks,
open
space
and
recreation
areas,
and
related
capital
im
-
30
provements;
and
31
(f)
Public
safety
facilities,
including
law
enforcement,
fire
stations
32
and
apparatus,
emergency
medical
and
rescue,
and
street
lighting
facil
-
33
ities.
34
(25)
"Recreational
vehicle"
means
a
vehicular
type
unit
primarily
de
-
35
signed
as
temporary
quarters
for
recreational,
camping,
or
travel
use,
which
36
either
has
its
own
motive
power
or
is
mounted
on
or
drawn
by
another
vehicle.
37
(26)
"Service
area"
means
any
defined
geographic
area
identified
by
a
38
governmental
entity
or
by
intergovernmental
agreement
in
which
specific
39
public
facilities
provide
service
to
development
within
the
area
defined,
on
40
the
basis
of
sound
planning
or
engineering
principles
or
both.
41
(27)
"Service
unit"
means
a
standardized
measure
of
consumption,
use,
42
generation
or
discharge
attributable
to
an
individual
unit
of
development
43
calculated
in
accordance
with
generally
accepted
engineering
or
planning
44
standards
for
a
particular
category
of
capital
improvements.
45
(28)
"System
improvements,"
in
contrast
to
project
improvements,
means
46
capital
improvements
to
public
facilities
designed
to
provide
service
to
a
47
service
area
including,
without
limitation,
the
type
of
improvements
de
-
48
scribed
in
section
50
-
1703,
Idaho
Code.
49
4
(29)
"System
improvement
costs"
means
costs
incurred
for
construction
1
or
reconstruction
of
system
improvements,
including
design,
acquisition,
2
engineering
and
other
costs
attributable
thereto,
and
also
including,
with
-
3
out
limitation,
the
type
of
costs
described
in
section
50
-
1702(h),
Idaho
4
Code,
to
provide
additional
public
facilities
needed
to
serve
new
growth
and
5
development.
For
clarification,
system
improvement
costs
do
not
include:
6
(a)
Construction,
acquisition
or
expansion
of
public
facilities
other
7
than
capital
improvements
identified
in
the
capital
improvements
plan;
8
(b)
Repair,
operation
or
maintenance
of
existing
or
new
capital
im
-
9
provements;
10
(c)
Upgrading,
updating,
expanding
or
replacing
existing
capital
im
-
1
1
provements
to
serve
existing
development
in
order
to
meet
stricter
12
safety,
efficiency,
environmental
or
regulatory
standards;
13
(d)
Upgrading,
updating,
expanding
or
replacing
existing
capital
im
-
14
provements
to
provide
better
service
to
existing
development;
15
(e)
Administrative
and
operating
costs
of
the
governmental
entity
un
-
16
less
such
costs
are
attributable
to
development
of
the
capital
improve
-
17
ments
plan,
as
provided
in
section
67
-
8208,
Idaho
Code;
or
18
(f)
Principal
payments
and
interest
or
other
finance
charges
on
bonds
19
or
other
indebtedness
except
financial
obligations
issued
by
or
on
be
-
20
half
of
the
governmental
entity
to
finance
capital
improvements
identi
-
21
fied
in
the
capital
improvements
plan.
22
SECTION
2.
An
emergency
existing
therefor,
which
emergency
is
hereby
23
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
24
July
1,
2026.
25