Bill Analyses and Ratings
Bill Information: H0766 – Idaho Development Impact Fee Entity Definition
Bill Summary
House Bill 766 amends Section 67-8203(14) of Idaho Code to redefine the term ‘governmental entity’ as it applies to development impact fees. The bill replaces the prior broad definition — ‘any unit of local government that is empowered in this enabling legislation to adopt a development impact fee ordinance’ — with a specific enumerated list consisting of cities, counties, single countywide highway districts, fire protection districts, and ambulance service districts. This change determines which types of local government bodies are legally authorized to impose development impact fees on builders and developers as a condition of receiving development approval.
Under the prior language, any unit of local government with enabling authority could potentially impose these fees; under the new language, only the five named entity types retain that power. The bill carries an emergency declaration and takes effect July 1, 2026, indicating the Legislature views the clarification as time-sensitive — likely to resolve ambiguity about whether other special districts or quasi-governmental bodies could assert impact fee authority.
Development impact fees, as defined in the bill text, are payments of money imposed as a condition of development approval. By enumerating which governmental entities may impose such fees, the bill restructures the regulatory landscape for property development across Idaho, with direct implications for developers, property owners, and local governments alike.
Overall Assessment
House Bill 766 received a total score of -2, reflecting concerns in two key areas: private property rights and economic impact. While the bill is framed as a clarifying measure that limits which governmental entities can impose development impact fees, the enumerated list it establishes still authorizes five categories of local government to levy these fees as a condition of development approval. This retention and codification of fee-imposing authority is viewed as a burden on property owners and developers, conflicting with principles that oppose government-imposed costs on property development.
The bill’s negative scores in Articles IX and XII stem from the fact that development impact fees — by definition payments of money required as a condition of development approval — represent a financial constraint on property owners’ ability to develop their land and on businesses seeking to engage in development activity. Rather than reducing or eliminating this regulatory burden, the bill formally enshrines it for five categories of governmental entities, which conflicts with values favoring free markets, limited government interference, and robust property rights.
All other metrics received a score of zero, as the bill’s subject matter — the definitional scope of governmental entities authorized to impose development impact fees — does not materially intersect with areas such as education, agriculture, water, energy, health and welfare, or other policy domains evaluated under the remaining articles.
Rating Breakdown
ARTICLE I. RESPONSIBILITY IN GOVERNMENT (0)
This bill addresses a technical definitional change in Idaho's development impact fee statute and does not substantively implicate principles of governmental accountability, transparency, or fiscal responsibility as evaluated under this metric. The bill neither expands nor contracts general governmental oversight mechanisms in a meaningful way relative to this article's concerns. Accordingly, it receives a neutral score of 0.
ARTICLE II. CITIZEN INVOLVEMENT IN GOVERNMENT (0)
House Bill 766 makes a statutory definitional change regarding which governmental entities may impose development impact fees and does not directly affect citizens' rights or opportunities to participate in governmental processes. The bill does not alter public notice requirements, voting rights, or other mechanisms of civic engagement. It receives a neutral score of 0 under this metric.
ARTICLE III. EDUCATION (0)
This bill concerns the definition of governmental entities authorized to impose development impact fees and has no direct bearing on education policy, school funding, or educational institutions in Idaho. No provisions of the bill affect schools, curricula, or educational governance. It receives a neutral score of 0.
ARTICLE IV. AGRICULTURE (0)
House Bill 766 does not address agricultural land use, farming operations, water rights for agriculture, or any other matter directly relevant to Idaho's agricultural sector. The bill's scope is limited to the definitional framework for development impact fee authority. It receives a neutral score of 0.
ARTICLE V. WATER (0)
This bill makes no changes to water law, water rights, irrigation districts, or water resource management in Idaho. Its subject matter is confined to the statutory definition of governmental entities that may impose development impact fees. It receives a neutral score of 0.
ARTICLE VI. NATURAL RESOURCES AND ENVIRONMENT (0)
House Bill 766 does not address environmental regulation, natural resource management, public lands, or conservation policy. The bill's definitional change regarding development impact fee authority does not intersect with environmental or natural resource concerns evaluated under this metric. It receives a neutral score of 0.
ARTICLE VII. ENERGY (0)
This bill has no bearing on energy policy, energy production, utility regulation, or related matters in Idaho. Its provisions are limited to redefining which governmental entities may impose development impact fees. It receives a neutral score of 0.
ARTICLE VIII. IDAHO NATIONAL LABORATORIES (0)
House Bill 766 does not reference or affect the Idaho National Laboratories, nuclear energy research, or related federal-state partnerships. The bill's scope is entirely within the domain of local government development fee authority. It receives a neutral score of 0.
ARTICLE IX. PRIVATE PROPERTY RIGHTS (-1)
The bill expands the types of local governments that can impose development impact fees, which are payments of money imposed as a condition of development approval (as defined in the bill text: '(9) "Development impact fee" means a payment of money imposed as a condition of development approval...'). This directly burdens property owners and developers by adding financial requirements for development, potentially infringing on their right to develop property without additional government-imposed costs. The metric explicitly opposes 'any federal, state or local regulation that would diminish a property owner's right to develop his property.'
ARTICLE X. STATE AND FEDERAL LANDS (0)
This bill does not address the management, disposition, or regulation of state or federal lands in Idaho. Its provisions are confined to the definitional scope of local governmental entities authorized to impose development impact fees. It receives a neutral score of 0.
ARTICLE XI. WILDLIFE MANAGEMENT (0)
House Bill 766 has no connection to wildlife management, hunting and fishing rights, or related conservation matters. The bill's subject matter is limited to the statutory definition of governmental entities with development impact fee authority. It receives a neutral score of 0.
ARTICLE XII. ECONOMY (-1)
The bill expands the authority of local governments to impose development impact fees, which are financial burdens on developers and property owners. This could increase regulatory costs for businesses and individuals seeking to develop property, potentially hindering economic growth and increasing government interference in commerce. The metric emphasizes 'a competitive market, free of undue governmental competition, restriction, coercion, or interference' and supports 'a business climate that will attract [economic] growth.' The expansion of impact fee authority conflicts with these values by adding a new regulatory cost on development.
ARTICLE XIII. HEALTH AND WELFARE (0)
This bill does not address public health programs, welfare services, Medicaid, or other health and human services matters in Idaho. Its provisions are limited to the definitional framework governing development impact fee authority. It receives a neutral score of 0.
ARTICLE XIV. AMERICAN FAMILY (0)
House Bill 766 does not directly affect family policy, parental rights, or matters related to the structure and support of families in Idaho. The bill's scope is confined to local government authority over development impact fees. It receives a neutral score of 0.
ARTICLE XV. OLDER AMERICANS (0)
This bill does not address issues affecting senior citizens, retirement security, elder care, or related matters. Its provisions are limited to the statutory definition of governmental entities authorized to impose development impact fees. It receives a neutral score of 0.
ARTICLE XVI. LAW AND ORDER WITH JUSTICE (0)
House Bill 766 does not address criminal justice, law enforcement, judicial processes, or public safety policy in Idaho. The bill's subject matter is confined to the definitional scope of local governmental entities with development impact fee authority. It receives a neutral score of 0.
ARTICLE XVII. NATIONAL DEFENSE – SECURING THE BORDER (0)
This bill has no bearing on national defense, military affairs, border security, or immigration policy. Its provisions are entirely within the domain of local government development fee authority in Idaho. It receives a neutral score of 0.
ARTICLE XVIII. ELECTION OF JUDGES AND IDAHO SUPREME COURT JUSTICES (0)
House Bill 766 does not address judicial selection, the merit selection system, or the election of judges and justices in Idaho. The bill's scope is limited to the statutory definition of governmental entities authorized to impose development impact fees. It receives a neutral score of 0.
ARTICLE XIX. RELIGIOUS LIBERTY (0)
This bill does not implicate religious freedom, the rights of religious institutions, or related matters. Its provisions are confined to the definitional framework for development impact fee authority among local governmental entities in Idaho. It receives a neutral score of 0.