Amends existing law to require a school district that receives mitigation fees to adopt a capacity plan and to use such moneys in accordance with such plan.

This legislation requires school districts receiving subdivision development mitigation fees to adopt a capacity plan, incurring a one-time cost of $5,000 to $20,000 per district in fiscal year 2026, depending on size and complexity. Ongoing compliance costs, including plan updates and reporting, are minimal, estimated at $1,000 to $5,000 annually per district. The bill does not increase overall expenditures but redirects existing mitigation funds toward capacity-building projects, such as new classrooms or schools, which districts would likely prioritize regardless. There is no expected impact on the State General Fund, as the legislation does not appropriate state funds or affect state revenue. Mitigation fees are locally collected and spent, with no financial obligation imposed at the state level.