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<leg xml:space="preserve" billnum="SB0245" sponsor="Calvin R. Musselman" designation="SB" otherSponsor="" otherHouse="House" sess="2026GS" fileno="2026FL1297" date="2/3/2026 16:02:193" printDate="02-03 16:22" subVer="0" minVer="0" office="LEGISLATIVE GENERAL COUNSEL" actionDate="" impact="code"><info><nextbuid>18</nextbuid><aminfo anum="0" effdate="05/06/2026"><seclist><sect action="A" src="code" buid="1" uid="C11-36a-S102_2026050620260506" fromuid="C11-36a-S102_2025110620251206" sort="11 36a01020020260506" mtype="section" effdate="05/06/2026">11-36a-102</sect><sect action="A" src="code" buid="9" uid="C11-36a-S301_2026050620260506" fromuid="C11-36a-S301_2025110620251206" sort="11 36a03010020260506" mtype="section" effdate="05/06/2026">11-36a-301</sect><sect action="A" src="code" buid="13" uid="C11-36a-S601_2026050620260506" fromuid="C11-36a-S601_2017050920170509" sort="11 36a06010020260506" mtype="section" effdate="05/06/2026">11-36a-601</sect><sect action="A" src="code" buid="15" uid="C11-36a-S602_2026050620260506" fromuid="C11-36a-S602_2017050920170509" sort="11 36a06020020260506" mtype="section" effdate="05/06/2026">11-36a-602</sect><sect src="uncod" untype="effdate" buid="17" 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 Amendments</st><sessionhead>2026 GENERAL SESSION</sessionhead><statehead>STATE OF UTAH</statehead><sponsorhead>Chief Sponsor: Calvin R. Musselman</sponsorhead><otherSponsorhead>House 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 modifies requirements for implementing and expending an impact fee. </gd><hphead lineno="6">Highlighted Provisions:</hphead><hp numlevel="1" lineno="7" slineno="0-7">This bill:<hl numlevel="1" lineno="8" slineno="0-8" level="1">modifies the requirements for impact fee service areas;</hl><hl numlevel="1" lineno="9" slineno="0-9" level="1">restricts where a local political subdivision may expend the revenue generated by impact <ln numlevel="1" lineno="10" slineno="0-10"/>fees; and</hl><hl numlevel="1" lineno="11" slineno="0-11" level="1">makes technical and conforming changes.  </hl></hp><moni numlevel="1" lineno="12" slineno="0-12" display="none">Money Appropriated in this Bill:</moni><moniNone lineno="13">None</moniNone><oc numlevel="1" lineno="14" slineno="0-14">Other Special Clauses:</oc><ocNone lineno="15">None</ocNone><sa numlevel="1" lineno="16" slineno="0-16">Utah Code Sections Affected:<saamd numlevel="1" lineno="17" slineno="0-17"><snhead>AMENDS:</snhead><sn num="11-36a-102" src="code" uid="C11-36a-S102_2026050620260506" buid="1" sort="11 36a01020020260506" numlevel="1" lineno="18" slineno="0-18"><bold>11-36a-102</bold>, as last amended by Laws of Utah 2025, First Special Session, Chapter 16</sn><sn num="11-36a-301" src="code" uid="C11-36a-S301_2026050620260506" buid="9" sort="11 36a03010020260506" numlevel="1" lineno="19" slineno="0-19"><bold>11-36a-301</bold>, as last amended by Laws of Utah 2025, First Special Session, Chapter 15</sn><sn num="11-36a-601" src="code" uid="C11-36a-S601_2026050620260506" buid="13" sort="11 36a06010020260506" numlevel="1" lineno="20" slineno="0-20"><bold>11-36a-601</bold>, as last amended by Laws of Utah 2017, Chapter 394</sn><sn num="11-36a-602" src="code" uid="C11-36a-S602_2026050620260506" buid="15" sort="11 36a06020020260506" numlevel="1" lineno="21" slineno="0-21"><bold>11-36a-602</bold>, as last amended by Laws of Utah 2017, Chapter 190</sn></saamd></sa></lt><enacthead lineno="22"/><enact numlevel="1" lineno="23" slineno="0-23">Be it enacted by the Legislature of the state of Utah:</enact><bdy><bsec buid="1" num="11-36a-102" type="amend" src="code" uid="C11-36a-S102_2026050620260506" sort="11 36a01020020260506" numlevel="1" lineno="24" slineno="1-1" sn="1"><section number="11-36a-102" numlevel="1" lineno="25" slineno="1-2" type="amend"><secline lineno="24">Section 1. Section <bold>11-36a-102</bold> is amended to read:</secline><catline lineno="25"><bold>11-36a-102<parens/>. Definitions.</bold></catline><sectionText lineno="26"><tab/>As used in this chapter:</sectionText><subsection ssid="1-null-1" dnum="1-o" numlevel="1" lineno="27" slineno="1-4" level="1" space="false"><display>(1)</display><subsection ssid="1-null-2" dnum="a-o" level="2" placement="sameline"><display>(a)</display>"Affected entity" means each county, municipality, special district under <xref depth="0" refnumber="17B" start="0">Title <ln numlevel="1" lineno="28" slineno="1-5"/>17B, Limited Purpose Local Government Entities - Special Districts</xref>, special service <ln numlevel="1" lineno="29" slineno="1-6"/>district under <xref depth="1" refnumber="17D-1" start="0">Title 17D, Chapter 1, Special Service District Act</xref>, school district, <ln numlevel="1" lineno="30" slineno="1-7"/>interlocal cooperation entity established under <xref depth="1" refnumber="11-13" start="1">Chapter 13, Interlocal Cooperation Act</xref>, <ln numlevel="1" lineno="31" slineno="1-8"/>and specified public utility:<subsection ssid="1-null-3" dnum="i-o" numlevel="1" lineno="32" slineno="1-9" level="3" tab="1"><display>(i)</display>whose services or facilities are likely to require expansion or significant <ln numlevel="1" lineno="33" slineno="1-10"/>modification because of the facilities proposed in the proposed impact fee <ln numlevel="1" lineno="34" slineno="1-11"/>facilities plan; or</subsection><subsection ssid="1-null-4" dnum="ii-o" numlevel="1" lineno="35" slineno="1-12" level="3" tab="1"><display>(ii)</display>that has filed with the local political subdivision or private entity a copy of the <ln numlevel="1" lineno="36" slineno="1-13"/>general or long-range plan of the county, municipality, special district, special <ln numlevel="1" lineno="37" slineno="1-14"/>service district, school district, interlocal cooperation entity, or specified public <ln numlevel="1" lineno="38" slineno="1-15"/>utility.</subsection></subsection><subsection ssid="1-null-5" dnum="b-o" numlevel="1" lineno="39" slineno="1-16" level="2"><display>(b)</display>"Affected entity" does not include the local political subdivision or private entity that <ln numlevel="1" lineno="40" slineno="1-17"/>is required under Section <xref depth="3" refnumber="11-36a-501" start="0">11-36a-501</xref> to provide notice.</subsection></subsection><subsection ssid="1-null-6" dnum="2-o" numlevel="1" lineno="41" slineno="1-18" level="1"><display>(2)</display>"Charter school" includes:<subsection ssid="1-null-7" dnum="a-o" numlevel="1" lineno="42" slineno="1-19" level="2"><display>(a)</display>an operating charter school;</subsection><subsection ssid="1-null-8" dnum="b-o" numlevel="1" lineno="43" slineno="1-20" level="2"><display>(b)</display>an applicant for a charter school whose application has been approved by a charter <ln numlevel="1" lineno="44" slineno="1-21"/>school authorizer as provided in <xref depth="2" refnumber="53G-5-6" start="0">Title 53G, Chapter 5, Part 6, Charter School Credit <ln numlevel="1" lineno="45" slineno="1-22"/>Enhancement Program</xref>; and</subsection><subsection ssid="1-null-9" dnum="c-o" numlevel="1" lineno="46" slineno="1-23" level="2"><display>(c)</display>an entity that is working on behalf of a charter school or approved charter applicant <ln numlevel="1" lineno="47" slineno="1-24"/>to develop or construct a charter school building.</subsection></subsection><subsection ssid="1-null-10" dnum="3-o" numlevel="1" lineno="48" slineno="1-25" level="1"><display>(3)</display>"Development activity" means any construction or expansion of a building, structure, or <ln numlevel="1" lineno="49" slineno="1-26"/>use, any change in use of a building or structure, or any changes in the use of land that <ln numlevel="1" lineno="50" slineno="1-27"/>creates additional demand and need for public facilities.</subsection><subsection ssid="1-null-11" dnum="4-o" numlevel="1" lineno="51" slineno="1-28" level="1"><display>(4)</display>"Development approval" means:<subsection ssid="1-null-12" dnum="a-o" numlevel="1" lineno="52" slineno="1-29" level="2"><display>(a)</display>except as provided in Subsection <xref depth="4" refnumber="11-36a-102(4)(b)" start="0">(4)(b)</xref>, any written authorization from a local <ln numlevel="1" lineno="53" slineno="1-30"/>political subdivision that authorizes the commencement of development activity;</subsection><subsection ssid="1-null-13" dnum="b-o" numlevel="1" lineno="54" slineno="1-31" level="2"><display>(b)</display>development activity, for a public entity that may develop without written <ln numlevel="1" lineno="55" slineno="1-32"/>authorization from a local political subdivision;</subsection><subsection ssid="1-null-14" dnum="c-o" numlevel="1" lineno="56" slineno="1-33" level="2"><display>(c)</display>a written authorization from a public water supplier, as defined in Section <xref depth="3" refnumber="73-1-4" start="0">73-1-4</xref>, or <ln numlevel="1" lineno="57" slineno="1-34"/>a private water company:<subsection ssid="1-null-15" dnum="i-o" numlevel="1" lineno="58" slineno="1-35" level="3"><display>(i)</display>to reserve or provide:<subsection ssid="1-null-16" dnum="A-o" numlevel="1" lineno="59" slineno="1-36" level="4"><display>(A)</display>a water right;</subsection><subsection ssid="1-null-17" dnum="B-o" numlevel="1" lineno="60" slineno="1-37" level="4"><display>(B)</display>a system capacity; or</subsection><subsection ssid="1-null-18" dnum="C-o" numlevel="1" lineno="61" slineno="1-38" level="4"><display>(C)</display>a distribution facility; or</subsection></subsection><subsection ssid="1-null-19" dnum="ii-o" numlevel="1" lineno="62" slineno="1-39" level="3"><display>(ii)</display>to deliver for a development activity:<subsection ssid="1-null-20" dnum="A-o" numlevel="1" lineno="63" slineno="1-40" level="4"><display>(A)</display>culinary water; or</subsection><subsection ssid="1-null-21" dnum="B-o" numlevel="1" lineno="64" slineno="1-41" level="4"><display>(B)</display>irrigation water; or</subsection></subsection></subsection><subsection ssid="1-null-22" dnum="d-o" numlevel="1" lineno="65" slineno="1-42" level="2"><display>(d)</display>a written authorization from a sanitary sewer authority, as defined in Section <xref depth="3" refnumber="10-20-102"><ln numlevel="1" lineno="66" slineno="1-43"/>10-20-102</xref>:<subsection ssid="1-null-23" dnum="i-o" numlevel="1" lineno="67" slineno="1-44" level="3"><display>(i)</display>to reserve or provide:<subsection ssid="1-null-24" dnum="A-o" numlevel="1" lineno="68" slineno="1-45" level="4"><display>(A)</display>sewer collection capacity; or</subsection><subsection ssid="1-null-25" dnum="B-o" numlevel="1" lineno="69" slineno="1-46" level="4"><display>(B)</display>treatment capacity; or</subsection></subsection><subsection ssid="1-null-26" dnum="ii-o" numlevel="1" lineno="70" slineno="1-47" level="3"><display>(ii)</display>to provide sewer service for a development activity.</subsection></subsection></subsection><subsection ssid="1-null-27" dnum="5-o" numlevel="1" lineno="71" slineno="1-48" level="1"><display>(5)</display>"Enactment" means:<subsection ssid="1-null-28" dnum="a-o" numlevel="1" lineno="72" slineno="1-49" level="2"><display>(a)</display>a municipal ordinance, for a municipality;</subsection><subsection ssid="1-null-29" dnum="b-o" numlevel="1" lineno="73" slineno="1-50" level="2"><display>(b)</display>a county ordinance, for a county; and</subsection><subsection ssid="1-null-30" dnum="c-o" numlevel="1" lineno="74" slineno="1-51" level="2"><display>(c)</display>a governing board resolution, for a special district, special service district, or private <ln numlevel="1" lineno="75" slineno="1-52"/>entity.</subsection></subsection><subsection ssid="1-null-31" dnum="6-o" numlevel="1" lineno="76" slineno="1-53" level="1"><display>(6)</display>"Encumber" means:<subsection ssid="1-null-32" dnum="a-o" numlevel="1" lineno="77" slineno="1-54" level="2"><display>(a)</display>a pledge to retire a debt; or</subsection><subsection ssid="1-null-33" dnum="b-o" numlevel="1" lineno="78" slineno="1-55" level="2"><display>(b)</display>an allocation to a current purchase order or contract.</subsection></subsection><subsection ssid="1-null-34" dnum="7-o" numlevel="1" lineno="79" slineno="1-56" level="1"><display>(7)</display>"Expense for overhead" means a cost that a local political subdivision or private entity:<subsection ssid="1-null-35" dnum="a-o" numlevel="1" lineno="80" slineno="1-57" level="2"><display>(a)</display>incurs in connection with:<subsection ssid="1-null-36" dnum="i-o" numlevel="1" lineno="81" slineno="1-58" level="3"><display>(i)</display>developing an impact fee facilities plan;</subsection><subsection ssid="1-null-37" dnum="ii-o" numlevel="1" lineno="82" slineno="1-59" level="3"><display>(ii)</display>developing an impact fee analysis; or</subsection><subsection ssid="1-null-38" dnum="iii-o" numlevel="1" lineno="83" slineno="1-60" level="3"><display>(iii)</display>imposing an impact fee, including any related overhead expenses; and</subsection></subsection><subsection ssid="1-null-39" dnum="b-o" numlevel="1" lineno="84" slineno="1-61" level="2"><display>(b)</display>calculates in accordance with a methodology that is consistent with generally <ln numlevel="1" lineno="85" slineno="1-62"/>accepted cost accounting practices.</subsection></subsection><subsection ssid="1-null-40" dnum="8-o" numlevel="1" lineno="86" slineno="1-63" level="1"><display>(8)</display>"Hookup fee" means a fee for the installation and inspection of any pipe, line, meter, or <ln numlevel="1" lineno="87" slineno="1-64"/>appurtenance to connect to a gas, water, sewer, storm water, power, or other utility <ln numlevel="1" lineno="88" slineno="1-65"/>system of a municipality, county, special district, special service district, or private <ln numlevel="1" lineno="89" slineno="1-66"/>entity.</subsection><subsection ssid="1-null-41" dnum="9-o" numlevel="1" lineno="90" slineno="1-67" level="1" space="false"><display>(9)</display><subsection ssid="1-null-42" dnum="a-o" level="2" placement="sameline"><display>(a)</display>"Impact fee" means a payment of money imposed upon new development activity <ln numlevel="1" lineno="91" slineno="1-68"/>as a condition of development approval to mitigate the impact of the new <ln numlevel="1" lineno="92" slineno="1-69"/>development on public infrastructure.</subsection><subsection ssid="1-null-43" dnum="b-o" numlevel="1" lineno="93" slineno="1-70" level="2"><display>(b)</display>"Impact fee" does not mean a tax, a special assessment, a building permit fee, a <ln numlevel="1" lineno="94" slineno="1-71"/>hookup fee, a fee for project improvements, or other reasonable permit or application <ln numlevel="1" lineno="95" slineno="1-72"/>fee.</subsection></subsection><subsection ssid="1-null-44" dnum="10-o" numlevel="1" lineno="96" slineno="1-73" level="1"><display>(10)</display>"Impact fee analysis" means the written analysis of each impact fee required by <ln numlevel="1" lineno="97" slineno="1-74"/>Section <xref depth="3" refnumber="11-36a-303" start="0">11-36a-303</xref>.</subsection><subsection ssid="1-null-45" dnum="11-o" numlevel="1" lineno="98" slineno="1-75" level="1"><display>(11)</display>"Impact fee facilities plan" means the plan required by Section <xref depth="3" refnumber="11-36a-301" start="0">11-36a-301</xref>.</subsection><subsection ssid="1-null-46" dnum="12-o" numlevel="1" lineno="99" slineno="1-76" level="1"><display>(12)</display>"Level of service" means the defined performance standard or unit of demand for each <ln numlevel="1" lineno="100" slineno="1-77"/>capital component of a public facility within a service area.</subsection><subsection ssid="1-null-47" dnum="13-o" numlevel="1" lineno="101" slineno="1-78" level="1" space="false"><display>(13)</display><subsection ssid="1-null-48" dnum="a-o" level="2" placement="sameline"><display>(a)</display>"Local political subdivision" means a county, a municipality, a special district <ln numlevel="1" lineno="102" slineno="1-79"/>under <xref depth="0" refnumber="17B" start="0">Title 17B, Limited Purpose Local Government Entities - Special Districts</xref>, a <ln numlevel="1" lineno="103" slineno="1-80"/>special service district under <xref depth="1" refnumber="17D-1" start="0">Title 17D, Chapter 1, Special Service District Act</xref>, or <ln numlevel="1" lineno="104" slineno="1-81"/>the Point of the Mountain State Land Authority, created in Section <xref depth="3" refnumber="11-59-201" start="0">11-59-201</xref>.</subsection><subsection ssid="1-null-49" dnum="b-o" numlevel="1" lineno="105" slineno="1-82" level="2"><display>(b)</display>"Local political subdivision" does not mean a school district, whose impact fee <ln numlevel="1" lineno="106" slineno="1-83"/>activity is governed by Section <xref depth="3" refnumber="11-36a-206" start="0">11-36a-206</xref>.</subsection></subsection><subsection ssid="1-null-50" dnum="14-o" numlevel="1" lineno="107" slineno="1-84" level="1"><display>(14)</display>"Private entity" means an entity in private ownership with at least 100 individual <ln numlevel="1" lineno="108" slineno="1-85"/>shareholders, customers, or connections, that is located in a first, second, third, or fourth <ln numlevel="1" lineno="109" slineno="1-86"/>class county and provides water to an applicant for development approval who is <ln numlevel="1" lineno="110" slineno="1-87"/>required to obtain water from the private entity either as a:<subsection ssid="1-null-51" dnum="a-o" numlevel="1" lineno="111" slineno="1-88" level="2"><display>(a)</display>specific condition of development approval by a local political subdivision acting <ln numlevel="1" lineno="112" slineno="1-89"/>pursuant to a prior agreement, whether written or unwritten, with the private entity; or</subsection><subsection ssid="1-null-52" dnum="b-o" numlevel="1" lineno="113" slineno="1-90" level="2"><display>(b)</display>functional condition of development approval because the private entity:<subsection ssid="1-null-53" dnum="i-o" numlevel="1" lineno="114" slineno="1-91" level="3"><display>(i)</display>has no reasonably equivalent competition in the immediate market; and</subsection><subsection ssid="1-null-54" dnum="ii-o" numlevel="1" lineno="115" slineno="1-92" level="3"><display>(ii)</display>is the only realistic source of water for the applicant's development.</subsection></subsection></subsection><subsection ssid="1-null-55" dnum="15-o" numlevel="1" lineno="116" slineno="1-93" level="1" space="false"><display>(15)</display><subsection ssid="1-null-56" dnum="a-o" level="2" placement="sameline"><display>(a)</display>"Project improvements" means site improvements and facilities that are:<subsection ssid="1-null-57" dnum="i-o" numlevel="1" lineno="117" slineno="1-94" level="3" tab="1"><display>(i)</display>planned and designed to provide service for development resulting from a <ln numlevel="1" lineno="118" slineno="1-95"/>development activity;</subsection><subsection ssid="1-null-58" dnum="ii-o" numlevel="1" lineno="119" slineno="1-96" level="3" tab="1"><display>(ii)</display>necessary for the use and convenience of the occupants or users of development <ln numlevel="1" lineno="120" slineno="1-97"/>resulting from a development activity; and</subsection><subsection ssid="1-null-59" dnum="iii-o" numlevel="1" lineno="121" slineno="1-98" level="3" tab="1"><display>(iii)</display>not identified or reimbursed as a system improvement.</subsection></subsection><subsection ssid="1-null-60" dnum="b-o" numlevel="1" lineno="122" slineno="1-99" level="2"><display>(b)</display>"Project improvements" does not mean system improvements.</subsection></subsection><subsection ssid="1-null-61" dnum="16-o" numlevel="1" lineno="123" slineno="1-100" level="1"><display>(16)</display>"Proportionate share" means the cost of public facility improvements that are<amend anum="0" ea="amend" pairid="6" groupid="5" style="1" owner="jchristopherson" level="1" amendtag="both">:</amend> roughly <ln numlevel="1" lineno="124" slineno="1-101"/>proportionate and reasonably related to the service demands and needs of any <ln numlevel="1" lineno="125" slineno="1-102"/>development activity.</subsection><subsection ssid="1-null-62" dnum="17-o" numlevel="1" lineno="126" slineno="1-103" level="1"><display>(17)</display>"Public facilities" means only the following impact fee facilities that have a life <ln numlevel="1" lineno="127" slineno="1-104"/>expectancy of 10 or more years and are owned or operated by or on behalf of a local <ln numlevel="1" lineno="128" slineno="1-105"/>political subdivision or private entity:<subsection ssid="1-null-63" dnum="a-o" numlevel="1" lineno="129" slineno="1-106" level="2"><display>(a)</display>water rights and water supply, treatment, storage, and distribution facilities;</subsection><subsection ssid="1-null-64" dnum="b-o" numlevel="1" lineno="130" slineno="1-107" level="2"><display>(b)</display>wastewater collection and treatment facilities;</subsection><subsection ssid="1-null-65" dnum="c-o" numlevel="1" lineno="131" slineno="1-108" level="2"><display>(c)</display>storm water, drainage, and flood control facilities;</subsection><subsection ssid="1-null-66" dnum="d-o" numlevel="1" lineno="132" slineno="1-109" level="2"><display>(d)</display>municipal power facilities;</subsection><subsection ssid="1-null-67" dnum="e-o" numlevel="1" lineno="133" slineno="1-110" level="2"><display>(e)</display>roadway facilities;</subsection><subsection ssid="1-null-68" dnum="f-o" numlevel="1" lineno="134" slineno="1-111" level="2"><display>(f)</display>parks, recreation facilities, open space, and trails;</subsection><subsection ssid="1-null-69" dnum="g-o" numlevel="1" lineno="135" slineno="1-112" level="2"><display>(g)</display>public safety facilities;</subsection><subsection ssid="1-null-70" dnum="h-o" numlevel="1" lineno="136" slineno="1-113" level="2"><display>(h)</display>environmental mitigation as provided in Section <xref depth="3" refnumber="11-36a-205" start="0">11-36a-205</xref>; or</subsection><subsection ssid="1-null-71" dnum="i-o" numlevel="1" lineno="137" slineno="1-114" level="2"><display>(i)</display>municipal natural gas facilities.</subsection></subsection><subsection ssid="1-null-72" dnum="18-o" numlevel="1" lineno="138" slineno="1-115" level="1" space="false"><display>(18)</display><subsection ssid="1-null-73" dnum="a-o" level="2" placement="sameline"><display>(a)</display>"Public safety facility" means:<subsection ssid="1-null-74" dnum="i-o" numlevel="1" lineno="139" slineno="1-116" level="3" tab="1"><display>(i)</display>a building constructed or leased to house police, fire, or other public safety <ln numlevel="1" lineno="140" slineno="1-117"/>entities; or</subsection><subsection ssid="1-null-75" dnum="ii-o" numlevel="1" lineno="141" slineno="1-118" level="3" tab="1"><display>(ii)</display>a fire suppression vehicle costing in excess of $500,000.</subsection></subsection><subsection ssid="1-null-76" dnum="b-o" numlevel="1" lineno="142" slineno="1-119" level="2"><display>(b)</display>"Public safety facility" does not mean a jail, prison, or other place of involuntary <ln numlevel="1" lineno="143" slineno="1-120"/>incarceration.</subsection></subsection><subsection ssid="1-null-77" dnum="19-o" numlevel="1" lineno="144" slineno="1-121" level="1" space="false"><display>(19)</display><subsection ssid="1-null-78" dnum="a-o" level="2" placement="sameline"><display>(a)</display>"Roadway facilities" means a street or road that has been designated on an <ln numlevel="1" lineno="145" slineno="1-122"/>officially adopted subdivision plat, roadway plan, or general plan of a political <ln numlevel="1" lineno="146" slineno="1-123"/>subdivision, together with all necessary appurtenances.</subsection><subsection ssid="1-null-79" dnum="b-o" numlevel="1" lineno="147" slineno="1-124" level="2"><display>(b)</display>"Roadway facilities" includes associated improvements to a federal or state roadway <ln numlevel="1" lineno="148" slineno="1-125"/>only when the associated improvements:<subsection ssid="1-null-80" dnum="i-o" numlevel="1" lineno="149" slineno="1-126" level="3"><display>(i)</display>are necessitated by the new development; and</subsection><subsection ssid="1-null-81" dnum="ii-o" numlevel="1" lineno="150" slineno="1-127" level="3"><display>(ii)</display>are not funded by the state or federal government.</subsection></subsection><subsection ssid="1-null-82" dnum="c-o" numlevel="1" lineno="151" slineno="1-128" level="2"><display>(c)</display>"Roadway facilities" does not mean federal or state roadways.</subsection></subsection><subsection ssid="1-null-83" dnum="20-o" numlevel="1" lineno="152" slineno="1-129" level="1" space="false"><display>(20)</display><subsection ssid="1-null-84" dnum="a-o" level="2" placement="sameline"><display>(a)</display>"Service area" means a geographic area designated by an entity that imposes an <ln numlevel="1" lineno="153" slineno="1-130"/>impact fee on the basis of sound planning or engineering principles in which a public <ln numlevel="1" lineno="154" slineno="1-131"/>facility, or a defined set of public facilities, provides service within the area.</subsection><subsection ssid="1-null-85" dnum="b-o" numlevel="1" lineno="155" slineno="1-132" level="2"><display>(b)</display>"Service area" may <amend anum="0" ea="amend" pairid="35" groupid="26" style="1" owner="jchristopherson" level="1" amendtag="both">not </amend>include the entire local political subdivision or an entire area <ln numlevel="1" lineno="156" slineno="1-133"/>served by a private entity<amend anum="0" ea="amend" pairid="29" groupid="21" style="1" owner="jchristopherson" level="1" amendtag="both"><marker pairid="27"/></amend>.</subsection></subsection><subsection ssid="1-null-86" dnum="21-o" numlevel="1" lineno="157" slineno="1-134" level="1"><display>(21)</display>"Specified public agency" means:<subsection ssid="1-null-87" dnum="a-o" numlevel="1" lineno="158" slineno="1-135" level="2"><display>(a)</display>the state;</subsection><subsection ssid="1-null-88" dnum="b-o" numlevel="1" lineno="159" slineno="1-136" level="2"><display>(b)</display>a school district; or</subsection><subsection ssid="1-null-89" dnum="c-o" numlevel="1" lineno="160" slineno="1-137" level="2"><display>(c)</display>a charter school.</subsection></subsection><subsection ssid="1-null-90" dnum="22-o" numlevel="1" lineno="161" slineno="1-138" level="1" space="false"><display>(22)</display><subsection ssid="1-null-91" dnum="a-o" level="2" placement="sameline"><display>(a)</display>"System improvements" means:<subsection ssid="1-null-92" dnum="i-o" numlevel="1" lineno="162" slineno="1-139" level="3" tab="1"><display>(i)</display>existing public facilities that are:<subsection ssid="1-null-93" dnum="A-o" numlevel="1" lineno="163" slineno="1-140" level="4"><display>(A)</display>identified in the impact fee analysis under Section <xref depth="3" refnumber="11-36a-304" start="0">11-36a-304</xref>; and</subsection><subsection ssid="1-null-94" dnum="B-o" numlevel="1" lineno="164" slineno="1-141" level="4"><display>(B)</display>designed to provide services to service areas within the community at large; <ln numlevel="1" lineno="165" slineno="1-142"/>and</subsection></subsection><subsection ssid="1-null-95" dnum="ii-o" numlevel="1" lineno="166" slineno="1-143" level="3" tab="1"><display>(ii)</display>future public facilities identified in the impact fee analysis under Section <xref depth="3" refnumber="11-36a-304" start="0"><ln numlevel="1" lineno="167" slineno="1-144"/>11-36a-304</xref> that are intended to provide services to service areas within the <ln numlevel="1" lineno="168" slineno="1-145"/>community at large.</subsection></subsection><subsection ssid="1-null-96" dnum="b-o" numlevel="1" lineno="169" slineno="1-146" level="2"><display>(b)</display>"System improvements" does not mean project improvements.</subsection></subsection></section></bsec><bsec buid="9" num="11-36a-301" type="amend" src="code" uid="C11-36a-S301_2026050620260506" sort="11 36a03010020260506" numlevel="1" lineno="170" slineno="2-1" sn="2"><section number="11-36a-301" numlevel="1" lineno="171" slineno="2-2" type="amend"><secline lineno="170">Section 2. Section <bold>11-36a-301</bold> is amended to read:</secline><catline lineno="171"><bold>11-36a-301<parens/>. Impact fee facilities plan.</bold></catline><subsection ssid="9-null-1" dnum="1-o" numlevel="1" lineno="172" slineno="2-3" level="1" placement="noreturn"><display>(1)</display>Before imposing an impact fee, <amendoutstart style="2"/><amend anum="0" ea="erase" pairid="61" groupid="46" style="2" owner="jchristopherson" level="1" deltag="both">each</amend><amendoutend style="2"/><amend anum="0" ea="amend" pairid="59" groupid="44" style="1" owner="jchristopherson" level="1" amendtag="both" space="true">a</amend> local political subdivision or private entity shall, <ln numlevel="1" lineno="173" slineno="2-4"/>except as provided in Subsection <xref depth="4" refnumber="11-36a-301(3)" start="0">(3)</xref>, prepare an impact fee facilities plan<amend anum="0" ea="amend" pairid="53" groupid="38" style="1" owner="jchristopherson" level="1" amendtag="both">:</amend> <subsection ssid="9-18" dnum="_-o:a-i" numlevel="1" lineno="174" slineno="2-5" ea="amend" anum="0" owner="jchristopherson" style="1" level="2"><display><amend anum="0" ea="amend" pairid="1097" style="1" owner="i" level="1" amendtag="both">(a)</amend></display>to determine the public facilities required to serve development resulting from new <ln numlevel="1" lineno="175" slineno="2-6"/>development activity<amendoutstart style="2"/><amend anum="0" ea="erase" pairid="46" groupid="32" style="2" owner="jchristopherson" level="1" deltag="both">.</amend><amendoutend style="2"/><amend anum="0" ea="amend" pairid="63" groupid="48" style="1" owner="jchristopherson" level="1" amendtag="both" space="true">;</amend></subsection><subsection ssid="9-17" dnum="_-o:b-i" numlevel="1" lineno="176" slineno="2-7" ea="amend" anum="0" owner="jchristopherson" style="1" level="2"><display><amend anum="0" ea="amend" pairid="1098" style="1" owner="i" level="1" amendtag="start">(b)</amend></display><amend anum="0" ea="amend" pairid="43" groupid="29" style="1" owner="jchristopherson" level="1" amendtag="end">that designates a service area for each impact fee the local political subdivision or <ln numlevel="1" lineno="177" slineno="2-8"/>private entity imposes; and</amend></subsection><subsection ssid="9-19" dnum="_-o:c-i" numlevel="1" lineno="178" slineno="2-9" ea="amend" anum="0" owner="jchristopherson" style="1" level="2"><display><amend anum="0" ea="amend" pairid="1099" style="1" owner="i" level="1" amendtag="start">(c)</amend></display><amend anum="0" ea="amend" pairid="68" groupid="52" style="1" owner="jchristopherson" level="1" amendtag="end">that demonstrates that the geographic area included in each service area is necessary <ln numlevel="1" lineno="179" slineno="2-10"/>to include in the service area based on specific planning or engineering principles.</amend></subsection></subsection><subsection ssid="9-null-2" dnum="2-o" numlevel="1" lineno="180" slineno="2-11" level="1"><display>(2)</display>A municipality or county need not prepare a separate impact fee facilities plan if the <ln numlevel="1" lineno="181" slineno="2-12"/>general plan required by Section <xref depth="3" refnumber="10-20-401">10-20-401</xref> or <xref depth="3" refnumber="17-79-401">17-79-401</xref>, respectively, contains the <ln numlevel="1" lineno="182" slineno="2-13"/>elements required by Section <xref depth="3" refnumber="11-36a-302" start="0">11-36a-302</xref>.</subsection><subsection ssid="9-null-3" dnum="3-o" numlevel="1" lineno="183" slineno="2-14" level="1"><display>(3)</display>A local political subdivision or a private entity with a population, or serving a <ln numlevel="1" lineno="184" slineno="2-15"/>population, of less than 5,000 as of the last federal census that charges impact fees of <ln numlevel="1" lineno="185" slineno="2-16"/>less than $250,000 annually need not comply with the impact fee facilities plan <ln numlevel="1" lineno="186" slineno="2-17"/>requirements of this part, but shall ensure that:<subsection ssid="9-null-4" dnum="a-o" numlevel="1" lineno="187" slineno="2-18" level="2"><display>(a)</display>the impact fees that the local political subdivision or private entity imposes are based <ln numlevel="1" lineno="188" slineno="2-19"/>upon a reasonable plan that otherwise complies with the common law and this <ln numlevel="1" lineno="189" slineno="2-20"/>chapter; and</subsection><subsection ssid="9-null-5" dnum="b-o" numlevel="1" lineno="190" slineno="2-21" level="2"><display>(b)</display>each applicable notice required by this chapter is given.</subsection></subsection></section></bsec><bsec buid="13" num="11-36a-601" type="amend" src="code" uid="C11-36a-S601_2026050620260506" sort="11 36a06010020260506" numlevel="1" lineno="191" slineno="3-1" sn="3"><section number="11-36a-601" numlevel="1" lineno="192" slineno="3-2" type="amend"><secline lineno="191">Section 3. Section <bold>11-36a-601</bold> is amended to read:</secline><catline lineno="192"><bold>11-36a-601<parens/>. Accounting of impact fees.</bold></catline><sectionText lineno="193"><tab/>A local political subdivision that collects an impact fee shall:</sectionText><subsection ssid="13-null-1" dnum="1-o" numlevel="1" lineno="194" slineno="3-4" level="1"><display>(1)</display>establish a separate interest bearing ledger account <amend anum="0" ea="amend" pairid="3" groupid="3" style="1" owner="jchristopherson" level="1" amendtag="both">for each service area and </amend>for each <ln numlevel="1" lineno="195" slineno="3-5"/>type of public facility for which an impact fee is collected;</subsection><subsection ssid="13-null-2" dnum="2-o" numlevel="1" lineno="196" slineno="3-6" level="1"><display>(2)</display>deposit a receipt for an impact fee in the appropriate ledger account established under <ln numlevel="1" lineno="197" slineno="3-7"/>Subsection <xref depth="4" refnumber="11-36a-601(1)" start="0">(1)</xref>;</subsection><subsection ssid="13-null-3" dnum="3-o" numlevel="1" lineno="198" slineno="3-8" level="1"><display>(3)</display>retain the interest earned on each fund or ledger account in the fund or ledger account;</subsection><subsection ssid="13-null-4" dnum="4-o" numlevel="1" lineno="199" slineno="3-9" level="1"><display>(4)</display>at the end of each fiscal year, prepare a report that:<subsection ssid="13-null-5" dnum="a-o" numlevel="1" lineno="200" slineno="3-10" level="2"><display>(a)</display>for each fund or ledger account, shows:<subsection ssid="13-null-6" dnum="i-o" numlevel="1" lineno="201" slineno="3-11" level="3"><display>(i)</display>the source and amount of all money collected, earned, and received by the fund or <ln numlevel="1" lineno="202" slineno="3-12"/>ledger account during the fiscal year; and</subsection><subsection ssid="13-null-7" dnum="ii-o" numlevel="1" lineno="203" slineno="3-13" level="3"><display>(ii)</display>each expenditure from the fund or ledger account;</subsection></subsection><subsection ssid="13-null-8" dnum="b-o" numlevel="1" lineno="204" slineno="3-14" level="2"><display>(b)</display>accounts for all impact fee funds that the local political subdivision has on hand at <ln numlevel="1" lineno="205" slineno="3-15"/>the end of the fiscal year; </subsection><subsection ssid="13-null-9" dnum="c-o" numlevel="1" lineno="206" slineno="3-16" level="2"><display>(c)</display>identifies the impact fee funds described in Subsection <xref depth="4" refnumber="11-36a-601(4)(b)" start="0">(4)(b)</xref> by:<subsection ssid="13-null-10" dnum="i-o" numlevel="1" lineno="207" slineno="3-17" level="3"><display>(i)</display>the year in which the impact fee funds were received;</subsection><subsection ssid="13-null-11" dnum="ii-o" numlevel="1" lineno="208" slineno="3-18" level="3"><display>(ii)</display>the project from which the impact fee funds were collected;</subsection><subsection ssid="13-null-12" dnum="iii-o" numlevel="1" lineno="209" slineno="3-19" level="3"><display>(iii)</display>the project for which the impact fee funds are budgeted; and</subsection><subsection ssid="13-null-13" dnum="iv-o" numlevel="1" lineno="210" slineno="3-20" level="3"><display>(iv)</display>the projected schedule for expenditure; and</subsection></subsection><subsection ssid="13-null-14" dnum="d-o" numlevel="1" lineno="211" slineno="3-21" level="2"><display>(d)</display>is:<subsection ssid="13-null-15" dnum="i-o" numlevel="1" lineno="212" slineno="3-22" level="3"><display>(i)</display>in a format developed by the state auditor;</subsection><subsection ssid="13-null-16" dnum="ii-o" numlevel="1" lineno="213" slineno="3-23" level="3"><display>(ii)</display>certified by the local political subdivision's chief financial officer; and</subsection><subsection ssid="13-null-17" dnum="iii-o" numlevel="1" lineno="214" slineno="3-24" level="3"><display>(iii)</display>transmitted to the state auditor within 180 days after the day on which the fiscal <ln numlevel="1" lineno="215" slineno="3-25"/>year ends.</subsection></subsection></subsection></section></bsec><bsec buid="15" num="11-36a-602" type="amend" src="code" uid="C11-36a-S602_2026050620260506" sort="11 36a06020020260506" numlevel="1" lineno="216" slineno="4-1" sn="4"><section number="11-36a-602" numlevel="1" lineno="217" slineno="4-2" type="amend"><secline lineno="216">Section 4. Section <bold>11-36a-602</bold> is amended to read:</secline><catline lineno="217"><bold>11-36a-602<parens/>. Expenditure of impact fees.</bold></catline><subsection ssid="15-null-1" dnum="1-o" numlevel="1" lineno="218" slineno="4-3" level="1" placement="noreturn"><display>(1)</display>A local political subdivision may expend<amend anum="0" ea="amend" pairid="5" groupid="5" style="1" owner="jchristopherson" level="1" amendtag="both"> an</amend> impact <amendoutstart style="2"/><amend anum="0" ea="erase" pairid="7" groupid="7" style="2" owner="jchristopherson" level="1" deltag="both">fees</amend><amendoutend style="2"/><amend anum="0" ea="amend" pairid="6" groupid="6" style="1" owner="jchristopherson" level="1" amendtag="both" space="true">fee</amend> only for a system <ln numlevel="1" lineno="219" slineno="4-4"/>improvement:<subsection ssid="15-null-2" dnum="a-o" numlevel="1" lineno="220" slineno="4-5" level="2"><display>(a)</display>identified in the <amend anum="0" ea="amend" pairid="48" groupid="42" style="1" owner="jchristopherson" level="1" amendtag="both">adopted </amend>impact fee facilities plan<amend anum="0" ea="amend" pairid="46" groupid="40" style="1" owner="jchristopherson" level="1" amendtag="both"> when the local political <ln numlevel="1" lineno="221" slineno="4-6"/>subdivision collected the impact fee</amend>;<amendoutstart style="2"/><amend anum="0" ea="erase" pairid="22" groupid="19" style="2" owner="jchristopherson" level="1" deltag="both"> and</amend><amendoutend style="2"/></subsection><subsection ssid="15-null-3" dnum="b-o" numlevel="1" lineno="222" slineno="4-7" level="2"><display>(b)</display>for the <amendoutstart style="2"/><amend anum="0" ea="erase" pairid="41" groupid="35" style="2" owner="jchristopherson" level="1" deltag="both">specific </amend><amendoutend style="2"/>public facility type for which the <amendoutstart style="2"/><amend anum="0" ea="erase" pairid="30" groupid="26" style="2" owner="jchristopherson" level="1" deltag="both">fee was collected.</amend><amendoutend style="2"/><amend anum="0" ea="amend" pairid="16" groupid="15" style="1" owner="jchristopherson" level="1" amendtag="both" space="true">local political <ln numlevel="1" lineno="223" slineno="4-8"/>subdivision collects the impact fee; and</amend></subsection><subsection ssid="15-12" dnum="_-o:c-i" numlevel="1" lineno="224" slineno="4-9" ea="amend" anum="0" owner="jchristopherson" style="1" level="2"><display><amend anum="0" ea="amend" pairid="1124" style="1" owner="i" level="1" amendtag="start">(c)</amend></display><amend anum="0" ea="amend" pairid="14" groupid="13" style="1" owner="jchristopherson" level="1" amendtag="end">within the service area for which the local political subdivision collects the impact <ln numlevel="1" lineno="225" slineno="4-10"/>fee.</amend></subsection></subsection><subsection ssid="15-null-4" dnum="2-o" numlevel="1" lineno="226" slineno="4-11" level="1" space="false"><display>(2)</display><subsection ssid="15-null-5" dnum="a-o" level="2" placement="sameline"><display>(a)</display>Except as provided in Subsection <xref depth="4" refnumber="11-36a-602(2)(b)" start="0">(2)(b)</xref>, a local political subdivision shall expend <ln numlevel="1" lineno="227" slineno="4-12"/>or encumber an impact fee collected with respect to a lot:<subsection ssid="15-null-6" dnum="i-o" numlevel="1" lineno="228" slineno="4-13" level="3" tab="1"><display>(i)</display>for a permissible use; and</subsection><subsection ssid="15-null-7" dnum="ii-o" numlevel="1" lineno="229" slineno="4-14" level="3" tab="1"><display>(ii)</display>within six years after the impact fee with respect to that lot is collected.</subsection></subsection><subsection ssid="15-null-8" dnum="b-o" numlevel="1" lineno="230" slineno="4-15" level="2"><display>(b)</display>A local political subdivision may hold the fees for longer than six years if it <ln numlevel="1" lineno="231" slineno="4-16"/>identifies, in writing:<subsection ssid="15-null-9" dnum="i-o" numlevel="1" lineno="232" slineno="4-17" level="3"><display>(i)</display>an extraordinary and compelling reason why the fees should be held longer than <ln numlevel="1" lineno="233" slineno="4-18"/>six years; and</subsection><subsection ssid="15-null-10" dnum="ii-o" numlevel="1" lineno="234" slineno="4-19" level="3"><display>(ii)</display>an absolute date by which the fees will be expended.</subsection></subsection></subsection></section></bsec><bsec buid="17" type="uncod" untype="effdate" src="uncod" uid="EF0000" sort="UZEFF" langlock="true" numlevel="1" lineno="235" slineno="5-1" sn="5"><section type="uncod" untype="effdate" display="false" src="uncod"><secline lineno="235">Section 5.  <bold>Effective Date.</bold></secline><sectionText lineno="236"><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>2-3-26 4:22 PM</tm></rev></foot></leg>