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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.
767
BY
WAYS
AND
MEANS
COMMITTEE
AN
ACT
1
RELATING
TO
DEVELOPMENT
IMPACT
FEES;
AMENDING
SECTION
67
-
8203,
IDAHO
CODE,
2
TO
REVISE
A
DEFINITION;
AMENDING
SECTION
67
-
8210,
IDAHO
CODE,
TO
REVISE
3
A
PROVISION
REGARDING
EARMARKING
AND
EXPENDITURE
OF
COLLECTED
DEVELOP
-
4
MENT
IMPACT
FEES;
AND
DECLARING
AN
EMERGENCY
AND
PROVIDING
AN
EFFECTIVE
5
DATE.
6
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
7
SECTION
1.
That
Section
67
-
8203,
Idaho
Code,
be,
and
the
same
is
hereby
8
amended
to
read
as
follows:
9
67
-
8203.
DEFINITIONS.
As
used
in
this
chapter:
10
(1)
"Affordable
housing"
means
housing
affordable
to
families
whose
1
1
incomes
do
not
exceed
eighty
percent
(80%)
of
the
median
income
for
the
ser
-
12
vice
area
or
areas
within
the
jurisdiction
of
the
governmental
entity.
13
(2)
"Appropriate"
means
to
legally
obligate
by
contract
or
otherwise
14
commit
to
use
by
appropriation
or
other
official
act
of
a
governmental
en
-
15
tity.
16
(3)
"Capital
improvements"
means
improvements
with
a
useful
life
of
ten
17
(10)
years
or
more,
by
new
construction
or
other
action,
which
increase
the
18
service
capacity
of
a
public
facility.
Capital
improvements
shall
include,
19
for
public
safety
facilities
only,
fire
apparatus
replacement
as
provided
in
20
subsection
(24)(f)
of
this
section.
21
(4)
"Capital
improvement
element"
means
a
component
of
a
comprehensive
22
plan
adopted
pursuant
to
chapter
65,
title
67,
Idaho
Code,
which
component
23
meets
the
requirements
of
a
capital
improvements
plan
pursuant
to
this
chap
-
24
ter.
25
(5)
"Capital
improvements
plan"
means
a
plan
adopted
pursuant
to
this
26
chapter
that
identifies
capital
improvements
for
which
development
impact
27
fees
may
be
used
as
a
funding
source.
28
(6)
"Developer"
means
any
person
or
legal
entity
undertaking
develop
-
29
ment,
including
a
party
that
undertakes
the
subdivision
of
property
pursuant
30
to
sections
50
-
1301
through
50
-
1334,
Idaho
Code.
31
(7)
"Development"
means
any
construction
or
installation
of
a
building
32
or
structure,
or
any
change
in
use
of
a
building
or
structure,
or
any
change
33
in
the
use,
character
or
appearance
of
land,
which
creates
additional
demand
34
and
need
for
public
facilities
or
the
subdivision
of
property
that
would
per
-
35
mit
any
change
in
the
use,
character
or
appearance
of
land.
As
used
in
this
36
chapter,
"development"
shall
not
include
activities
that
would
otherwise
37
be
subject
to
payment
of
the
development
impact
fee
if
such
activities
are
38
undertaken
by
a
taxing
district,
as
defined
in
section
63
-
201,
Idaho
Code,
39
or
by
an
authorized
public
charter
school,
as
defined
in
section
33
-
5202A,
40
Idaho
Code,
in
the
course
of
carrying
out
its
statutory
responsibilities,
41
2
unless
the
adopted
impact
fee
ordinance
expressly
includes
taxing
districts
1
or
public
charter
schools
as
being
subject
to
development
impact
fees.
2
(8)
"Development
approval"
means
any
written
authorization
from
a
gov
-
3
ernmental
entity
that
authorizes
the
commencement
of
a
development.
4
(9)
"Development
impact
fee"
means
a
payment
of
money
imposed
as
a
con
-
5
dition
of
development
approval
to
pay
for
a
proportionate
share
of
the
cost
6
of
system
improvements
needed
to
serve
development.
This
term
is
also
re
-
7
ferred
to
as
an
impact
fee
in
this
chapter.
The
term
does
not
include
the
fol
-
8
lowing:
9
(a)
A
charge
or
fee
to
pay
the
administrative,
plan
review,
or
inspec
-
10
tion
costs
associated
with
permits
required
for
development;
1
1
(b)
Connection
or
hookup
charges;
12
(c)
Availability
charges
for
drainage,
sewer,
water,
or
transportation
13
charges
for
services
provided
directly
to
the
development;
or
14
(d)
Amounts
collected
from
a
developer
in
a
transaction
in
which
the
15
governmental
entity
has
incurred
expenses
in
constructing
capital
im
-
16
provements
for
the
development
if
the
owner
or
developer
has
agreed
to
17
be
financially
responsible
for
the
construction
or
installation
of
the
18
capital
improvements,
unless
a
written
agreement
is
made
pursuant
to
19
section
67
-
8209(3),
Idaho
Code,
for
credit
or
reimbursement.
20
(10)
"Development
requirement"
means
a
requirement
attached
to
a
devel
-
21
opmental
approval
or
other
governmental
action
approving
or
authorizing
a
22
particular
development
project
including,
but
not
limited
to,
a
rezoning,
23
which
requirement
compels
the
payment,
dedication
or
contribution
of
goods,
24
services,
land,
or
money
as
a
condition
of
approval.
25
(11)
"Extraordinary
costs"
means
those
costs
incurred
as
a
result
of
an
26
extraordinary
impact.
27
(12)
"Extraordinary
impact"
means
an
impact
that
is
reasonably
deter
-
28
mined
by
the
governmental
entity
to:
29
(a)
Result
in
the
need
for
system
improvements,
the
cost
of
which
will
30
significantly
exceed
the
sum
of
the
development
impact
fees
to
be
gener
-
31
ated
from
the
project
or
the
sum
agreed
to
be
paid
pursuant
to
a
develop
-
32
ment
agreement
as
allowed
by
section
67
-
8214(2),
Idaho
Code;
or
33
(b)
Result
in
the
need
for
system
improvements
that
are
not
identified
34
in
the
capital
improvements
plan.
35
(13)
"Fee
payer"
means
that
person
who
pays
or
is
required
to
pay
a
de
-
36
velopment
impact
fee.
37
(14)
"Governmental
entity"
means
any
unit
of
local
government
that
is
38
empowered
in
this
enabling
legislation
to
adopt
a
development
impact
fee
or
-
39
dinance.
40
(15)
"Impact
fee."
See
development
impact
fee.
41
(16)
"Land
use
assumptions"
means
a
description
of
the
service
area
and
42
projections
of
land
uses,
densities,
intensities,
and
population
in
the
ser
-
43
vice
area
over
at
least
a
twenty
(20)
year
period.
44
(17)
"Level
of
service"
means
a
measure
of
the
relationship
between
ser
-
45
vice
capacity
and
service
demand
for
public
facilities.
46
(18)
"Manufactured
home"
means
a
structure,
constructed
according
to
47
HUD/FHA
mobile
home
construction
and
safety
standards,
transportable
in
one
48
(1)
or
more
sections,
which,
in
the
traveling
mode,
is
eight
(8)
feet
or
more
49
in
width
or
is
forty
(40)
body
feet
or
more
in
length,
or
when
erected
on
site,
50
3
is
three
hundred
twenty
(320)
or
more
square
feet,
and
which
is
built
on
a
1
permanent
chassis
and
designed
to
be
used
as
a
dwelling
with
or
without
a
2
permanent
foundation
when
connected
to
the
required
utilities,
and
includes
3
the
plumbing,
heating,
air
conditioning,
and
electrical
systems
contained
4
therein,
except
that
such
term
shall
include
any
structure
that
meets
all
the
5
requirements
of
this
subsection
except
the
size
requirements
and
with
re
-
6
spect
to
which
the
manufacturer
voluntarily
files
a
certification
required
7
by
the
secretary
of
housing
and
urban
development
and
complies
with
the
stan
-
8
dards
established
under
42
U.S.C.
5401
et
seq.
9
(19)
"Modular
building"
is
as
defined
in
section
39
-
4301,
Idaho
Code.
10
(20)
"Present
value"
means
the
total
current
monetary
value
of
past,
1
1
present,
or
future
payments,
contributions
or
dedications
of
goods,
ser
-
12
vices,
materials,
construction
or
money.
13
(21)
"Project"
means
a
particular
development
on
an
identified
parcel
14
of
land.
15
(22)
"Project
improvements"
means
site
improvements
and
facilities
16
that
are
planned
and
designed
to
provide
service
for
a
particular
devel
-
17
opment
project
and
that
are
necessary
for
the
use
and
convenience
of
the
18
occupants
or
users
of
the
project.
19
(23)
"Proportionate
share"
means
that
portion
of
the
cost
of
system
im
-
20
provements
determined
pursuant
to
section
67
-
8207,
Idaho
Code,
which
rea
-
21
sonably
relates
to
the
service
demands
and
needs
of
the
project.
22
(24)
"Public
facilities"
means:
23
(a)
Water
supply
production,
treatment,
storage
and
distribution
fa
-
24
cilities;
25
(b)
Wastewater
collection,
treatment
and
disposal
facilities;
26
(c)
Roads,
streets
and
bridges,
including
rights
-
of
-
way,
traffic
27
signals,
landscaping
and
any
local
components
of
state
or
federal
high
-
28
ways;
29
(d)
Stormwater
collection,
retention,
detention,
treatment
and
dis
-
30
posal
facilities,
flood
control
facilities,
and
bank
and
shore
protec
-
31
tion
and
enhancement
improvements;
32
(e)
Parks,
open
space
and
recreation
areas,
and
related
capital
im
-
33
provements;
and
34
(f)
Public
safety
facilities,
including
law
enforcement,
fire
stations
35
and
apparatus,
emergency
medical
and
rescue,
and
street
lighting
facil
-
36
ities.
Public
safety
facilities
shall
include
fire
apparatus
replace
-
37
ment,
as
long
as
such
replacement
is
identified
in
an
adopted
capital
38
improvement
plan,
is
attributable
to
the
impacts
of
growth,
and
no
more
39
than
fifty
percent
(50%)
of
the
total
cost
of
the
replacement
is
funded
40
with
development
impact
fees.
41
(25)
"Recreational
vehicle"
means
a
vehicular
type
unit
primarily
de
-
42
signed
as
temporary
quarters
for
recreational,
camping,
or
travel
use,
which
43
either
has
its
own
motive
power
or
is
mounted
on
or
drawn
by
another
vehicle.
44
(26)
"Service
area"
means
any
defined
geographic
area
identified
by
a
45
governmental
entity
or
by
intergovernmental
agreement
in
which
specific
46
public
facilities
provide
service
to
development
within
the
area
defined,
on
47
the
basis
of
sound
planning
or
engineering
principles
or
both.
48
(27)
"Service
unit"
means
a
standardized
measure
of
consumption,
use,
49
generation
or
discharge
attributable
to
an
individual
unit
of
development
50
4
calculated
in
accordance
with
generally
accepted
engineering
or
planning
1
standards
for
a
particular
category
of
capital
improvements.
2
(28)
"System
improvements,"
in
contrast
to
project
improvements,
means
3
capital
improvements
to
public
facilities
designed
to
provide
service
to
a
4
service
area
including,
without
limitation,
the
type
of
improvements
de
-
5
scribed
in
section
50
-
1703,
Idaho
Code.
6
(29)
"System
improvement
costs"
means
costs
incurred
for
construction
7
or
reconstruction
of
system
improvements,
including
design,
acquisition,
8
engineering
and
other
costs
attributable
thereto,
and
also
including,
with
-
9
out
limitation,
the
type
of
costs
described
in
section
50
-
1702(h),
Idaho
10
Code,
to
provide
additional
public
facilities
needed
to
serve
new
growth
and
1
1
development
and
shall
include
the
costs
of
fire
apparatus
replacement
iden
-
12
tified
in
the
capital
improvements
plan
that
are
attributable
to
the
impacts
13
of
growth
pursuant
to
subsection
(24)(f)
of
this
section
.
For
clarifica
-
14
tion,
system
improvement
costs
do
not
include:
15
(a)
Construction,
acquisition
or
expansion
of
public
facilities
other
16
than
capital
improvements
identified
in
the
capital
improvements
plan;
17
(b)
Repair,
operation
or
maintenance
of
existing
or
new
capital
im
-
18
provements;
19
(c)
Upgrading,
updating,
expanding
or
replacing
existing
capital
im
-
20
provements
to
serve
existing
development
in
order
to
meet
stricter
21
safety,
efficiency,
environmental
or
regulatory
standards;
22
(d)
Upgrading,
updating,
expanding
or
replacing
existing
capital
im
-
23
provements
to
provide
better
service
to
existing
development;
24
(e)
Administrative
and
operating
costs
of
the
governmental
entity
un
-
25
less
such
costs
are
attributable
to
development
of
the
capital
improve
-
26
ments
plan,
as
provided
in
section
67
-
8208,
Idaho
Code;
or
27
(f)
Principal
payments
and
interest
or
other
finance
charges
on
bonds
28
or
other
indebtedness
except
financial
obligations
issued
by
or
on
be
-
29
half
of
the
governmental
entity
to
finance
capital
improvements
identi
-
30
fied
in
the
capital
improvements
plan.
31
SECTION
2.
That
Section
67
-
8210,
Idaho
Code,
be,
and
the
same
is
hereby
32
amended
to
read
as
follows:
33
67
-
8210.
EARMARKING
AND
EXPENDITURE
OF
COLLECTED
DEVELOPMENT
IMPACT
34
FEES.
(1)
An
ordinance
imposing
development
impact
fees
shall
provide
that
35
all
development
impact
fee
funds
shall
be
maintained
in
one
(1)
or
more
36
interest
-
bearing
accounts
within
the
capital
projects
fund.
Accounting
37
records
shall
be
maintained
for
each
category
of
system
improvements
and
the
38
service
area
in
which
the
fees
are
collected.
Interest
earned
on
development
39
impact
fees
shall
be
considered
funds
of
the
account
on
which
it
is
earned,
40
and
not
funds
subject
to
section
57
-
127,
Idaho
Code,
and
shall
be
subject
41
to
all
restrictions
placed
on
the
use
of
development
impact
fees
under
the
42
provisions
of
this
chapter.
43
(2)
Expenditures
of
development
impact
fees
shall
be
made
only
for
the
44
category
of
system
improvements
and
within
or
for
the
benefit
of
the
service
45
area
for
which
the
development
impact
fee
was
imposed
as
shown
by
the
capi
-
46
tal
improvements
plan
and
as
authorized
in
this
chapter.
Development
impact
47
fees
shall
not
be
used
for
any
purpose
other
than
system
improvement
costs
48
5
to
create
additional
improvements
to
serve
new
growth
and
the
replacement
of
1
fire
apparatus
pursuant
to
section
67
-
8203(24)(f),
Idaho
Code
.
2
(3)
As
part
of
its
annual
audit
process,
a
governmental
entity
shall
3
prepare
an
annual
report:
4
(a)
Describing
the
amount
of
all
development
impact
fees
collected,
ap
-
5
propriated,
or
spent
during
the
preceding
year
by
category
of
public
fa
-
6
cility
and
service
area;
and
7
(b)
Describing
the
percentage
of
tax
and
revenues
other
than
impact
8
fees
collected,
appropriated
or
spent
for
system
improvements
during
9
the
preceding
year
by
category
of
public
facility
and
service
area.
10
(4)
Collected
development
impact
fees
must
be
expended
within
eight
1
1
(8)
years
from
the
date
they
were
collected,
on
a
first
-
in,
first
-
out
(FIFO)
12
basis,
except
that
the
development
impact
fees
collected
for
wastewater
13
collection,
treatment
and
disposal
and
drainage
facilities
must
be
expended
14
within
twenty
(20)
years.
Any
funds
not
expended
within
the
prescribed
times
15
shall
be
refunded
pursuant
to
section
67
-
8211,
Idaho
Code.
A
governmental
16
entity
may
hold
the
fees
for
longer
than
eight
(8)
years
if
it
identifies,
in
17
writing:
18
(a)
A
reasonable
cause
why
the
fees
should
be
held
longer
than
eight
(8)
19
years;
and
20
(b)
An
anticipated
date
by
which
the
fees
will
be
expended
but
in
no
21
event
greater
than
eleven
(11)
years
from
the
date
they
were
collected.
22
SECTION
3.
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