BILL NUMBER: AB 3005 CHAPTERED 09/30/08 CHAPTER 692 FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2008 APPROVED BY GOVERNOR SEPTEMBER 30, 2008 PASSED THE SENATE AUGUST 30, 2008 PASSED THE ASSEMBLY AUGUST 31, 2008 AMENDED IN SENATE AUGUST 27, 2008 AMENDED IN SENATE AUGUST 22, 2008 AMENDED IN SENATE AUGUST 18, 2008 AMENDED IN SENATE JULY 1, 2008 AMENDED IN ASSEMBLY MAY 15, 2008 AMENDED IN ASSEMBLY APRIL 22, 2008 AMENDED IN ASSEMBLY APRIL 14, 2008 INTRODUCED BY Assembly Member Jones FEBRUARY 22, 2008 An act to amend Section 65460.1 of, and to add, repeal, and add Section 66005.1 of, the Government Code, relating to community development. LEGISLATIVE COUNSEL'S DIGEST AB 3005, Jones. Community development: mitigation fees. (1) The Mitigation Fee Act authorizes a local agency to charge a variety of fees, dedications, reservations, or other exactions in connection with the approval of a development project, as defined. Existing law provides that when a local agency imposes any fee or exaction as a condition of approval of a proposed development, as defined, or development project, those fees or exactions shall not exceed the estimated reasonable cost of providing the service or facility for which the fee or exaction is imposed. This bill would require a local agency, when imposing as a condition of approval of a development project an impact fee for mitigating vehicular traffic impacts of a housing development that satisfies certain characteristics, to set the fee, or the portion thereof relating to vehicular traffic impacts, at a rate that reflects a lower rate of automobile trip generation. The bill would, until January 1, 2011, exempt from this requirement a housing development in an area having a capital improvement plan for which traffic mitigation fees are collected. The bill would authorize a local agency to charge an impact fee in proportion to the estimated rate of automobile trip generation associated with a housing development if the housing development does not satisfy the specified characteristics. (2) Existing law, the Transit Village Development Planning Act of 1994, defines certain terms for its purpose. This bill would add a definition to this act for the term "bus transfer station." (3) This bill would incorporate changes made by AB 1221 that would become operative if both bills are enacted and this bill is enacted after AB 1221. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 65460.1 of the Government Code is amended to read: 65460.1. (a) The Legislature hereby finds and declares all of the following: (1) Federal, state, and local governments in California are investing in new and expanded transit systems in areas throughout the state, including Los Angeles County, the San Francisco Bay area, San Diego County, Santa Clara County, and Sacramento County. (2) This public investment in transit is unrivaled in the state's history and represents well over ten billion dollars ($10,000,000,000) in planned investment alone. (3) Recent studies of transit ridership in California indicate that persons who live within a quarter-mile radius of transit stations utilize the transit system in far greater numbers than does the general public living elsewhere. (4) The use of transit by persons living near transit stations is particularly important given the decline of transit ridership in California between 1980 and 1990. Transit's share of commute trips dropped in all California metropolitan areas--greater Los Angeles: 5.4 percent to 4.8 percent; San Francisco Bay area: 11.9 percent to 10.0 percent; San Diego: 3.7 percent to 3.6 percent; Sacramento: 3.7 percent to 2.5 percent. (5) Only a few transit stations in California have any concentration of housing proximate to the station. (6) Interest in clustering housing and commercial development around transit stations, called transit villages, has gained momentum in recent years. (b) For purposes of this article, the following definitions shall apply: (1) "Bus hub" means an intersection of three or more bus routes, with a minimum route headway of 10 minutes during peak hours. (2) "Bus transfer station" means an arrival, departure, or transfer point for the area's intercity, intraregional, or interregional bus service having permanent investment in multiple bus docking facilities, ticketing services, and passenger shelters. (3) "District" means a transit village development district as defined in Section 65460.4. (4) "Peak hours" means the time between 7 a.m. to 10 a.m., inclusive, and 3 p.m. to 7 p.m., inclusive, Monday through Friday. (5) "Transit station" means a rail or light-rail station, ferry terminal, bus hub, or bus transfer station. SEC. 1.5. Section 65460.1 of the Government Code is amended to read: 65460.1. (a) The Legislature hereby finds and declares all of the following: (1) Federal, state, and local governments in California are investing in new and expanded transit systems in areas throughout the state, including Los Angeles County, the San Francisco Bay area, San Diego County, Santa Clara County, and Sacramento County. (2) This public investment in transit is unrivaled in the state's history and represents well over ten billion dollars ($10,000,000,000) in planned investment alone. (3) Recent studies of transit ridership in California indicate that persons who live within one-half mile radius of transit stations utilize the transit system in far greater numbers than does the general public living elsewhere. (4) The use of transit by persons living near transit stations is particularly important given the decline of transit ridership in California between 1980 and 1990. Transit's share of commute trips dropped in all California metropolitan areas--greater Los Angeles: 5.4 percent to 4.8 percent; San Francisco Bay area: 11.9 percent to 10.0 percent; San Diego: 3.7 percent to 3.6 percent; Sacramento: 3.7 percent to 2.5 percent. (5) Only a few transit stations in California have any concentration of housing proximate to the station. (6) Interest in clustering housing and commercial development around transit stations, called transit villages, has gained momentum in recent years. (b) For purposes of this article, the following definitions shall apply: (1) "Bus transfer station" means an arrival, departure, or transfer point for the area's intercity, intraregional, or interregional bus service having permanent investment in multiple bus docking facilities, ticketing services, and passenger shelters. (2) "County" includes a city and county. (3) "Bus hub" means an intersection of three or more bus routes, with a minimum route headway of 10 minutes during peak hours. (4) "District" means a transit village development district as defined in Section 65460.4. (5) "Peak hours" means the time between 7 a.m. to 10 a.m., inclusive, and 3 p.m. to 7 p.m., inclusive, Monday through Friday. (6) "Transit station" means a rail or light-rail station, ferry terminal, bus hub, or bus transfer station. SEC. 2. Section 66005.1 is added to the Government Code, to read: 66005.1. (a) (1) When a local agency imposes a fee on a housing development pursuant to Section 66001 for the purpose of mitigating vehicular traffic impacts, if that housing development satisfies all of the following characteristics, the fee, or the portion thereof relating to vehicular traffic impacts, shall be set at a rate that reflects a lower rate of automobile trip generation associated with such housing developments in comparison with housing developments without these characteristics, unless the local agency adopts findings after a public hearing establishing that the housing development, even with these characteristics, would not generate fewer automobile trips than a housing development without those characteristics: (A) The housing development is located within one-half mile of a transit station and there is direct access between the housing development and the transit station along a barrier-free walkable pathway not exceeding one-half mile in length. (B) Convenience retail uses, including a store that sells food, are located within one-half mile of the housing development. (C) The housing development provides either the minimum number of parking spaces required by the local ordinance, or no more than one onsite parking space for zero to two bedroom units, and two onsite parking spaces for three or more bedroom units, whichever is less. (2) The provisions of paragraph (1) shall not apply to a housing development that satisfies the characteristics in subparagraphs (A) to (C), inclusive, of paragraph (1) that is located within an area covered by a capital improvement plan for traffic facilities that was adopted on or before January 1, 2009, and for which fees are collected to mitigate the impacts of traffic. (b) If a housing development does not satisfy the characteristics in subdivision (a), the local agency may charge a fee that is proportional to the estimated rate of automobile trip generation associated with the housing development. (c) As used in this section, "housing development" means a development project with common ownership and financing consisting of residential use or mixed use where not less than 50 percent of the floorspace is for residential use. (d) For the purposes of this section, "transit station" has the meaning set forth in paragraph (4) of subdivision (b) of Section 65460.1. "Transit station" includes planned transit stations otherwise meeting this definition whose construction is programmed to be completed prior to the scheduled completion and occupancy of the housing development. (e) This section shall remain in effect only until January 1, 2011, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2011, deletes or extends that date. SEC. 3. Section 66005.1 is added to the Government Code, to read: 66005.1. (a) When a local agency imposes a fee on a housing development pursuant to Section 66001 for the purpose of mitigating vehicular traffic impacts, if that housing development satisfies all of the following characteristics, the fee, or the portion thereof relating to vehicular traffic impacts, shall be set at a rate that reflects a lower rate of automobile trip generation associated with such housing developments in comparison with housing developments without these characteristics, unless the local agency adopts findings after a public hearing establishing that the housing development, even with these characteristics, would not generate fewer automobile trips than a housing development without those characteristics: (1) The housing development is located within one-half mile of a transit station and there is direct access between the housing development and the transit station along a barrier-free walkable pathway not exceeding one-half mile in length. (2) Convenience retail uses, including a store that sells food, are located within one-half mile of the housing development. (3) The housing development provides either the minimum number of parking spaces required by the local ordinance, or no more than one onsite parking space for zero to two bedroom units, and two onsite parking spaces for three or more bedroom units, whichever is less. (b) If a housing development does not satisfy the characteristics in subdivision (a), the local agency may charge a fee that is proportional to the estimated rate of automobile trip generation associated with the housing development. (c) As used in this section, "housing development" means a development project with common ownership and financing consisting of residential use or mixed use where not less than 50 percent of the floorspace is for residential use. (d) For the purposes of this section, "transit station" has the meaning set forth in paragraph (4) of subdivision (b) of Section 65460.1. "Transit station" includes planned transit stations otherwise meeting this definition whose construction is programmed to be completed prior to the scheduled completion and occupancy of the housing development. (e) This section shall become operative on January 1, 2011. SEC. 4. Section 1.5 of this bill incorporates amendments to Section 65460.1 of the Government Code proposed by both this bill and AB 1221. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2009, (2) each bill amends Section 65460.1 of the Government Code, and (3) this bill is enacted after AB 1221, in which case Section 1 of this bill shall not become operative.