Provides that school impact fees must be expended or encumbered for a permissible use within ten years of receipt, unless an extraordinary and compelling reason exists for the fees to be held longer than ten years. The extraordinary or compelling reasons must be identified in written findings by the governing body of the county, city, or town.

Provides that criteria must be developed by the office of the superintendent of public instruction for extending the use of school impact fees from six to ten years.