Amends existing law to revise a definition regarding which governmental entities are authorized to adopt development impact fees.

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 ACT1 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 hereby6 amended to read as follows:7 67-8203. DEFINITIONS. As used in this chapter:8 (1) "Affordable housing" means housing affordable to families whose9 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.11 (2) "Appropriate" means to legally obligate by contract or otherwise12 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 ten15 (10) years or more, by new construction or other action, which increase the16 service capacity of a public facility.17 (4) "Capital improvement element" means a component of a comprehensive18 plan adopted pursuant to chapter 65, title 67, Idaho Code, which component19 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 this22 chapter that identifies capital improvements for which development impact23 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 pursuant26 to sections 50-1301 through 50-1334, Idaho Code.27 (7) "Development" means any construction or installation of a building28 or structure, or any change in use of a building or structure, or any change29 in the use, character or appearance of land, which creates additional demand30 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 this32 chapter, "development" shall not include activities that would otherwise33 be subject to payment of the development impact fee if such activities are34 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 districts38 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 cost2 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 transportation9 charges for services provided directly to the development; or10 (d) Amounts collected from a developer in a transaction in which the11 governmental entity has incurred expenses in constructing capital im-12 provements for the development if the owner or developer has agreed to13 be financially responsible for the construction or installation of the14 capital improvements, unless a written agreement is made pursuant to15 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 a18 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 an22 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 will26 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; or29 (b) Result in the need for system improvements that are not identified30 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 is34 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 and39 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 to44 HUD/FHA mobile home construction and safety standards, transportable in one45 (1) or more sections, which, in the traveling mode, is eight (8) feet or more46 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 a48 permanent chassis and designed to be used as a dwelling with or without a49 permanent foundation when connected to the required utilities, and includes50

3 the plumbing, heating, air conditioning, and electrical systems contained1 therein, except that such term shall include any structure that meets all the2 requirements of this subsection except the size requirements and with re-3 spect to which the manufacturer voluntarily files a certification required4 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 parcel11 of land.12 (22) "Project improvements" means site improvements and facilities13 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 the15 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, traffic24 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; and31 (f) Public safety facilities, including law enforcement, fire stations32 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, which36 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 a38 governmental entity or by intergovernmental agreement in which specific39 public facilities provide service to development within the area defined, on40 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 development43 calculated in accordance with generally accepted engineering or planning44 standards for a particular category of capital improvements.45 (28) "System improvements," in contrast to project improvements, means46 capital improvements to public facilities designed to provide service to a47 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 construction1 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), Idaho4 Code, to provide additional public facilities needed to serve new growth and5 development. For clarification, system improvement costs do not include:6 (a) Construction, acquisition or expansion of public facilities other7 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-11 provements to serve existing development in order to meet stricter12 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; or18 (f) Principal payments and interest or other finance charges on bonds19 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 hereby23 declared to exist, this act shall be in full force and effect on and after24 July 1, 2026.25