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Impact fees are one-time charges that cities, counties, and other local governments collect from developers to help pay for the new roads, water systems, parks, and other infrastructure that new development requires. This bill would require local governments and qualifying private entities to prepare an impact fee facilities plan that designates a specific service area—a defined geographic zone served by a facility—for each fee they charge, and to justify that area based on planning or engineering principles; starting May 6, 2026, a service area could no longer cover an entire city, county, or a private water provider's whole service territory. Local governments would also need to keep separate financial ledger accounts broken out by both service area and facility type, rather than just by facility type as under current law. Finally, the bill would limit how collected impact fee money can be spent, requiring that it go only toward system improvements identified in the facilities plan in place when the fee was collected, for the same facility type, and located within the same service area where the fee was originally collected.