BILL ANALYSIS                                                                                                                                                                                                    

                            Senator Dave Cox, Chair

          BILL NO:  AB 133                      HEARING:  6/9/10
          AUTHOR:  Smyth                        FISCAL:  No
          VERSION:  5/20/10                     CONSULTANT:  Detwiler

                           Background and Existing Law  

          As a condition of approving subdivisions under the  
          Subdivision Map Act, cities and counties can impose fees to  
          pay for the costs of public works projects that are related  
          to those subdivisions.  Local officials can also impose  
          subdivision fees to pay for new bridges and major  
          thoroughfares, but they must put the revenues into a fund  
          for each bridge or major thoroughfare project.  Local  
          officials can spend the fee revenues only for construction  
          or to reimburse construction costs.

          San Diego County has special statutory permission to spend  
          its bridge and major thoroughfare fees on the costs of  
          design, right-of-way acquisition, and actual construction  
          which includes direct and indirect environmental,  
          engineering, accounting, legal, and contract administration  
          costs.  San Diego County can also pay for "reasonable  
          administrative expenses," up to $300,000 a year, adjusted  
          for changes in the consumer price index.  Administrative  
          expenses include office, personnel, and other management  
          expenses (AB 4351, Cortese, 1987).

          Los Angeles County has six bridge and thoroughfare  
          districts that receive subdivision fees, but the County  
          spends some of its countywide gas tax revenues to pay for  
          the related administrative, accounting, and legal costs.   
          Instead of diverting countywide revenues to pay for bridge  
          and thoroughfare costs that benefit specific areas, the  
          County wants to use some of its subdivision fees.  The City  
          of Santa Clarita (Los Angeles County) also wants similar  

                                   Proposed Law  

          Assembly Bill 133 allows city officials in certain  
          situations and Los Angeles County officials to spend bridge  


          AB 133 -- 5/20/10 -- Page 2

          and major thoroughfare subdivision fees on construction  
          costs that include design, acquisition of rights-of-way,  
          contract administration, and actual construction.  AB 133  
          caps spending on "reasonable administrative expenses" at  
          $300,000 a year, adjusted after 1986, for changes in the  
          consumer price index.

          The bill applies to construction:
                 In the unincorporated area of Los Angeles County.
                 Where the area of benefit and all of the  
               improvements lie within both a city in Los Angeles  
               County and the County's unincorporated area.
                 Where all of the area of benefit and all of the  
               improvements lie completely within a city in Los  
               Angeles County.


           Costs and benefits  .  AB 133 adds Los Angeles County and the  
          City of Santa Clarita to the existing law that lets San  
          Diego County pay for some its administrative costs with  
          bridge and major thoroughfare fees.  By segregating those  
          costs to the projects that benefit from administrative  
          spending, AB 133 shifts some of the cost burden away from  
          countywide and citywide gas tax revenues.  The carefully  
          written language applies to Santa Clarita, but not to the  
          City of Calabasas, which wanted to be left out of the bill.

                                 Assembly Actions  

          Assembly Local Government Committee:  5-0
          Assembly Floor:                    71-0

                         Support and Opposition  (6/3/10)

           Support  :  County of Los Angeles, City of Santa Clarita.

           Opposition  :  Unknown.