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<leg xml:space="preserve" billnum="HB0568" sponsor="Thomas W. Peterson" designation="HB" otherSponsor="" otherHouse="Senate" sess="2026GS" fileno="2026FL1413" date="2/16/2026 11:02:903" printDate="02-16 11:42" subVer="0" minVer="0" office="LEGISLATIVE GENERAL COUNSEL" actionDate="" impact="code"><info><nextbuid>6</nextbuid><aminfo anum="0" effdate="05/06/2026"><seclist><sect action="A" src="code" buid="3" uid="C11-36a-S202_2026050620260506" fromuid="C11-36a-S202_2025110620251206" sort="11 36a02020020260506" mtype="section" effdate="05/06/2026">11-36a-202</sect><sect src="uncod" untype="effdate" buid="5" uid="EF0000" sort="UZEFF" mtype="uncod" effdate="05/06/2026"/></seclist></aminfo></info><tbox><sinfo><nextpairid>0</nextpairid></sinfo><st numlevel="1" lineno="1" slineno="0-1">Impact Fee Limit Amendments</st><sessionhead>2026 GENERAL SESSION</sessionhead><statehead>STATE OF UTAH</statehead><sponsorhead>Chief Sponsor: Thomas W. Peterson</sponsorhead><otherSponsorhead>Senate Sponsor: </otherSponsorhead></tbox><lt numlevel="1" lineno="2" slineno="0-2"><lthead lineno="3">LONG TITLE</lthead><gdhead lineno="4">General Description:</gdhead><gd numlevel="1" lineno="5" slineno="0-5">This bill limits the impact fee amount a political subdivision may impose on a development <ln numlevel="1" lineno="6" slineno="0-6"/>activity for a single public facility type.</gd><hphead lineno="7">Highlighted Provisions:</hphead><hp numlevel="1" lineno="8" slineno="0-8">This bill:<hl numlevel="1" lineno="9" slineno="0-9" level="1">prohibits a political subdivision from imposing an impact fee on a development activity if <ln numlevel="1" lineno="10" slineno="0-10"/>the impact fee is more than $50,000 for a single public facility type.</hl></hp><moni numlevel="1" lineno="11" slineno="0-11" display="none">Money Appropriated in this Bill:</moni><moniNone lineno="12">None</moniNone><oc numlevel="1" lineno="13" slineno="0-13">Other Special Clauses:</oc><ocNone lineno="14">None</ocNone><sa numlevel="1" lineno="15" slineno="0-15">Utah Code Sections Affected:<saamd numlevel="1" lineno="16" slineno="0-16"><snhead>AMENDS:</snhead><sn num="11-36a-202" src="code" uid="C11-36a-S202_2026050620260506" buid="3" sort="11 36a02020020260506" numlevel="1" lineno="17" slineno="0-17"><bold>11-36a-202</bold>, as last amended by Laws of Utah 2025, First Special Session, Chapter 15</sn></saamd></sa></lt><enacthead lineno="18"/><enact numlevel="1" lineno="19" slineno="0-19">Be it enacted by the Legislature of the state of Utah:</enact><bdy><bsec buid="3" num="11-36a-202" type="amend" src="code" uid="C11-36a-S202_2026050620260506" sort="11 36a02020020260506" numlevel="1" lineno="20" slineno="1-1" sn="1"><section number="11-36a-202" numlevel="1" lineno="21" slineno="1-2" type="amend"><secline lineno="20">Section 1. Section <bold>11-36a-202</bold> is amended to read:</secline><catline lineno="21"><bold>11-36a-202<parens/>. Prohibitions on impact fees.</bold></catline><subsection ssid="3-null-1" dnum="1-o" numlevel="1" lineno="22" slineno="1-3" level="1" placement="noreturn"><display>(1)</display>A local political subdivision or private entity may not:<subsection ssid="3-null-2" dnum="a-o" numlevel="1" lineno="23" slineno="1-4" level="2"><display>(a)</display>impose an impact fee to:<subsection ssid="3-null-3" dnum="i-o" numlevel="1" lineno="24" slineno="1-5" level="3"><display>(i)</display>cure deficiencies in a public facility serving existing development;</subsection><subsection ssid="3-null-4" dnum="ii-o" numlevel="1" lineno="25" slineno="1-6" level="3"><display>(ii)</display>raise the established level of service of a public facility serving existing <ln numlevel="1" lineno="26" slineno="1-7"/>development; or</subsection><subsection ssid="3-null-5" dnum="iii-o" numlevel="1" lineno="27" slineno="1-8" level="3"><display>(iii)</display>recoup more than the local political subdivision's or private entity's costs actually <ln numlevel="1" lineno="28" slineno="1-9"/>incurred for excess capacity in an existing system improvement;</subsection></subsection><subsection ssid="3-null-6" dnum="b-o" numlevel="1" lineno="29" slineno="1-10" level="2"><display>(b)</display>delay the construction of a school or charter school because of a dispute with the <ln numlevel="1" lineno="30" slineno="1-11"/>school or charter school over impact fees; or</subsection><subsection ssid="3-null-7" dnum="c-o" numlevel="1" lineno="31" slineno="1-12" level="2"><display>(c)</display>impose or charge any other fees as a condition of development approval unless those <ln numlevel="1" lineno="32" slineno="1-13"/>fees are a reasonable charge for the service provided.</subsection></subsection><subsection ssid="3-null-8" dnum="2-o" numlevel="1" lineno="33" slineno="1-14" level="1" space="false"><display>(2)</display><subsection ssid="3-null-9" dnum="a-o" level="2" placement="sameline"><display>(a)</display>Notwithstanding any other provision of this chapter, a political subdivision or <ln numlevel="1" lineno="34" slineno="1-15"/>private entity may not impose an impact fee:<subsection ssid="3-null-10" dnum="i-o" numlevel="1" lineno="35" slineno="1-16" level="3" tab="1"><display>(i)</display>on residential components of development to pay for a public safety facility that is <ln numlevel="1" lineno="36" slineno="1-17"/>a fire suppression vehicle;</subsection><subsection ssid="3-null-11" dnum="ii-o" numlevel="1" lineno="37" slineno="1-18" level="3" tab="1"><display>(ii)</display>on a school district or charter school for a park, recreation facility, open space, or <ln numlevel="1" lineno="38" slineno="1-19"/>trail;</subsection><subsection ssid="3-null-12" dnum="iii-o" numlevel="1" lineno="39" slineno="1-20" level="3" tab="1"><display>(iii)</display>on a school district or charter school unless:<subsection ssid="3-null-13" dnum="A-o" numlevel="1" lineno="40" slineno="1-21" level="4"><display>(A)</display>the development resulting from the school district's or charter school's <ln numlevel="1" lineno="41" slineno="1-22"/>development activity directly results in a need for additional system <ln numlevel="1" lineno="42" slineno="1-23"/>improvements for which the impact fee is imposed; and</subsection><subsection ssid="3-null-14" dnum="B-o" numlevel="1" lineno="43" slineno="1-24" level="4"><display>(B)</display>the impact fee is calculated to cover only the school district's or charter <ln numlevel="1" lineno="44" slineno="1-25"/>school's proportionate share of the cost of those additional system <ln numlevel="1" lineno="45" slineno="1-26"/>improvements;</subsection></subsection><subsection ssid="3-null-15" dnum="iv-o" numlevel="1" lineno="46" slineno="1-27" level="3" tab="1"><display>(iv)</display>to the extent that the impact fee includes a component for a law enforcement <ln numlevel="1" lineno="47" slineno="1-28"/>facility, on development activity for:<subsection ssid="3-null-16" dnum="A-o" numlevel="1" lineno="48" slineno="1-29" level="4"><display>(A)</display>the Utah National Guard;</subsection><subsection ssid="3-null-17" dnum="B-o" numlevel="1" lineno="49" slineno="1-30" level="4"><display>(B)</display>the Utah Highway Patrol; or</subsection><subsection ssid="3-null-18" dnum="C-o" numlevel="1" lineno="50" slineno="1-31" level="4"><display>(C)</display>an institution of higher education or private postsecondary educational <ln numlevel="1" lineno="51" slineno="1-32"/>institution, as defined in Section <xref depth="3" refnumber="53H-1-101">53H-1-101</xref>, that has a police force;</subsection></subsection><subsection ssid="3-null-19" dnum="v-o" numlevel="1" lineno="52" slineno="1-33" level="3" tab="1"><display>(v)</display>on development activity on state-owned land, as defined in Section <xref depth="3" refnumber="11-70-101">11-70-101</xref>;<amendoutstart style="2"/><amend anum="0" ea="erase" pairid="10" groupid="9" style="2" owner="jchristopherson" level="1" deltag="both"> or</amend><amendoutend style="2"/></subsection><subsection ssid="3-null-20" dnum="vi-o" numlevel="1" lineno="53" slineno="1-34" level="3" tab="1"><display>(vi)</display>on development activity that consists of the construction of an internal accessory <ln numlevel="1" lineno="54" slineno="1-35"/>dwelling unit, as defined in Section <xref depth="3" refnumber="10-21-303">10-21-303</xref>, within an existing primary <ln numlevel="1" lineno="55" slineno="1-36"/>dwelling<amendoutstart style="2"/><amend anum="0" ea="erase" pairid="9" groupid="8" style="2" owner="jchristopherson" level="1" deltag="both">.</amend><amendoutend style="2"/><amend anum="0" ea="amend" pairid="7" groupid="6" style="1" owner="jchristopherson" level="1" amendtag="both" space="true">; or</amend></subsection><subsection ssid="3-31" dnum="_-o:vii-i" numlevel="1" lineno="56" slineno="1-37" ea="amend" anum="0" owner="jchristopherson" style="1" level="3" tab="1"><display><amend anum="0" ea="amend" pairid="1020" style="1" owner="i" level="1" amendtag="start">(vii)</amend></display><amend anum="0" ea="amend" pairid="6" groupid="5" style="1" owner="jchristopherson" level="1" amendtag="end">on a development activity if the impact fee is more than $50,000 for a single <ln numlevel="1" lineno="57" slineno="1-38"/>public facility type.</amend></subsection></subsection><subsection ssid="3-null-21" dnum="b-o" numlevel="1" lineno="58" slineno="1-39" level="2" space="false"><display>(b)</display><subsection ssid="3-null-22" dnum="i-o" level="3" placement="sameline"><display>(i)</display>Notwithstanding any other provision of this chapter, a political subdivision or <ln numlevel="1" lineno="59" slineno="1-40"/>private entity may not impose an impact fee on development activity that consists <ln numlevel="1" lineno="60" slineno="1-41"/>of the construction of a school, whether by a school district or a charter school, if:<subsection ssid="3-null-23" dnum="A-o" numlevel="1" lineno="61" slineno="1-42" level="4" tab="1"><display>(A)</display>the school is intended to replace another school, whether on the same or a <ln numlevel="1" lineno="62" slineno="1-43"/>different parcel;</subsection><subsection ssid="3-null-24" dnum="B-o" numlevel="1" lineno="63" slineno="1-44" level="4" tab="1"><display>(B)</display>the new school creates no greater demand or need for public facilities than the <ln numlevel="1" lineno="64" slineno="1-45"/>school or school facilities, including any portable or modular classrooms that <ln numlevel="1" lineno="65" slineno="1-46"/>are on the site of the replaced school at the time that the new school is <ln numlevel="1" lineno="66" slineno="1-47"/>proposed; and</subsection><subsection ssid="3-null-25" dnum="C-o" numlevel="1" lineno="67" slineno="1-48" level="4" tab="1"><display>(C)</display>the new school and the school being replaced are both within the boundary of <ln numlevel="1" lineno="68" slineno="1-49"/>the local political subdivision or the jurisdiction of the private entity.</subsection></subsection><subsection ssid="3-null-26" dnum="ii-o" numlevel="1" lineno="69" slineno="1-50" level="3"><display>(ii)</display>If the imposition of an impact fee on a new school is not prohibited under <ln numlevel="1" lineno="70" slineno="1-51"/>Subsection <xref depth="4" refnumber="11-36a-202(2)(b)(i)">(2)(b)(i)</xref> because the new school creates a greater demand or need for <ln numlevel="1" lineno="71" slineno="1-52"/>public facilities than the school being replaced, the impact fee shall be based only <ln numlevel="1" lineno="72" slineno="1-53"/>on the demand or need that the new school creates for public facilities that <ln numlevel="1" lineno="73" slineno="1-54"/>exceeds the demand or need that the school being replaced creates for those public <ln numlevel="1" lineno="74" slineno="1-55"/>facilities.</subsection></subsection><subsection ssid="3-null-27" dnum="c-o" numlevel="1" lineno="75" slineno="1-56" level="2"><display>(c)</display>Notwithstanding any other provision of this chapter, a political subdivision or private <ln numlevel="1" lineno="76" slineno="1-57"/>entity may impose an impact fee for a road facility on the state only if and to the <ln numlevel="1" lineno="77" slineno="1-58"/>extent that:<subsection ssid="3-null-28" dnum="i-o" numlevel="1" lineno="78" slineno="1-59" level="3"><display>(i)</display>the state's development causes an impact on the road facility; and</subsection><subsection ssid="3-null-29" dnum="ii-o" numlevel="1" lineno="79" slineno="1-60" level="3"><display>(ii)</display>the portion of the road facility related to an impact fee is not funded by the state <ln numlevel="1" lineno="80" slineno="1-61"/>or by the federal government.</subsection></subsection></subsection><subsection ssid="3-null-30" dnum="3-o" numlevel="1" lineno="81" slineno="1-62" level="1"><display>(3)</display>Notwithstanding any other provision of this chapter, a local political subdivision may <ln numlevel="1" lineno="82" slineno="1-63"/>impose and collect impact fees on behalf of a school district if authorized by Section <xref depth="3" refnumber="11-36a-206"><ln numlevel="1" lineno="83" slineno="1-64"/>11-36a-206</xref>.</subsection></section></bsec><bsec buid="5" type="uncod" untype="effdate" src="uncod" uid="EF0000" sort="UZEFF" langlock="true" numlevel="1" lineno="84" slineno="2-1" sn="2"><section type="uncod" untype="effdate" display="false" src="uncod"><secline lineno="84">Section 2.  <bold>Effective Date.</bold></secline><sectionText lineno="85"><amend anum="0" ea="amend" pairid="1" groupid="1" style="1" owner="jchristopherson" level="1" amendtag="both">This bill takes effect on <effdate uid="code" date="5/6/2026">May 6, 2026</effdate>.</amend></sectionText></section></bsec></bdy><foot><rev><tm>2-16-26 11:42 AM</tm></rev></foot></leg>