BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 133
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 133 (Smyth)
          As Amended  May 20, 2010
          Majority vote
           
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          |ASSEMBLY:  |71-0 |(January 19,    |SENATE: |33-0 |(June 17,      |
          |           |     |2010)           |        |     |2010)          |
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           Original Committee Reference:   L. GOV.  

           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.  

           The Senate amendments  clarify that for the purposes of LA County  
          only, the term "construction" includes 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 in either of the following  
          circumstances:

          1)The area of benefit includes, and all of the bridge and major  
            thoroughfare project improvements lie within, both a city or a  
            portion of a city and adjacent portions of unincorporated  
            area; or,

          2)All of the area of benefit and all of the bridge and major  
            thoroughfare project improvements lie completely within the  
            boundaries of a 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.






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          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. 


           AS PASSED BY THE ASSEMBLY  , this bill:

          1)Expanded 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)Defined 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)Stated 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)Stated 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
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            thoroughfare project improvements lie within the boundaries of  
            the city.

           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.  This bill  
          allows LA County and the City of Santa Clarita to use this same  
          definition for construction to pay for some its administrative  
          costs with bridge and major thoroughfare fees.

          According to the sponsor, LA 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.

          Support arguments:  By segregating these costs to projects that  
          benefit from administrative spending, this bill shifts some of  
          the cost burden away from countywide and citywide gas tax  
          revenues.

          Opposition arguments:  None at this time.


           Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916)  
          319-3958                                               FN:  
          0004914