BILL ANALYSIS AB 133 Page 1 ASSEMBLY THIRD READING AB 133 (Smyth) As Amended January 4, 2010 Majority vote LOCAL GOVERNMENT 5-0 ----------------------------------------------------------------- |Ayes:|Caballero, Knight, | | | | |Arambula, Davis, Skinner | | | ----------------------------------------------------------------- SUMMARY : Expands the use for which a fee charged by Los Angeles County (LA County) in the unincorporated areas as a condition of final map approval or building permit issuance to defray the cost of constructing bridges or major thoroughfares to include additional costs. Specifically, this bill : 1)Expands the use for which a fee charged by LA County in the unincorporated areas as a condition of final map approval or building permit issuance to defray the cost of constructing bridges or major thoroughfares to include additional costs. 2)Defines the term "construction," for bridge or major thoroughfares built with the fees charged under this section for the unincorporated areas of LA County, to include design, acquisition, of rights-of-way, and actual construction, including, but not limited to, all direct and indirect environmental, engineering, accounting, legal, administration of construction contracts, and other services necessary therefore. 3)States that the term "construction," for bridge or major thoroughfares built with the fees charged under this section for the unincorporated areas of LA County, also includes reasonable administrative expenses as defined. 4)States that for the purposes of LA County only, the term "construction" shall only include design, acquisition of rights-of-way, administration of construction contracts, and actual construction if the area of benefit includes both a city or a portion thereof and adjacent portions of unincorporated area, and if all of the bridge and major AB 133 Page 2 thoroughfare project improvements lie within the boundaries of the city. EXISTING LAW : 1)Authorizes a local agency to require the payment of a fee as a condition of approval of a final map or as a condition of issuing a building permit for the purposes of defraying the actual or estimated cost of constructing bridges or major thoroughfares if specific conditions are met. 2)Provides that if the benefit area of a bridge fund is one in which more than one bridge is required to be constructed, a fund may be established that covers all of the bridge projects in that area. 3)Defines "construction" to include design, acquisition of rights-of-way, administration of construction contracts, and actual construction. 4)Defines the term "construction," for bridge or major thoroughfares built with the fees charged under this section for the unincorporated areas of San Diego and Orange Counties, to include design, acquisition, of rights-of-way, and actual construction, including, but not limited to, all direct and indirect environmental, engineering, accounting, legal, administration of construction contracts, and other services necessary therefore. 5)States that the term "construction," for bridge or major thoroughfares built with the fees charged under this section for the unincorporated areas of San Diego and Orange Counties, also includes reasonable administrative expenses as defined. FISCAL EFFECT : None COMMENTS : Exiting law limits the use of Bridge & Major Thoroughfare (B&T) District fees to construction purposes. The term construction is defined to include design, acquisition of right-of-way, administration of construction, and actual construction. The term for unincorporated San Diego and Orange Counties also includes all direct and indirect environmental, engineering, accounting, legal, administration of construction contracts, and other services necessary therefore. AB 133 Page 3 According to the sponsor, Los Angeles County, since this expanded list of construction terms does not apply to LA County, the general administrative accounting and legal costs for LA County's six B&T Districts must be financed by its Road Fund's Master Plan of Highways Program. LA County reports that recent state budget issues have resulted in delays and/or cuts in revenue sources that are directed to its Road Fund. This has limited LA County's ability to effectively manage its six B&T Districts. This bill would allow a single fund for multiple projects in a benefit area. Analysis Prepared by : Katie Kolitsos / L. GOV. / (916) 319-3958 FN: 0003546