BILL ANALYSIS                                                                                                                                                                                                    Ķ




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  AB 116                      HEARING:  6/5/13
          AUTHOR:  Bocanegra                    FISCAL:  Yes
          VERSION:  5/16/13                     TAX LEVY:  No
          CONSULTANT:  Lui                      

                        SUBDIVISION APPROVALS (URGENCY)
          

          Provides an automatic 24-month extension for subdivision  
          maps, approved after January 1, 2000, that have not yet  
          expired. 


                           Background and Existing Law  

          Under the Subdivision Map Act, cities and counties approve  
          tentative maps that must be consistent with their general  
          plans, attaching scores of conditions.  Once subdividers  
          comply with those conditions, local officials must issue  
          final maps.  For smaller subdivisions (lot splits) local  
          officials usually use parcel maps, but they can require  
          tentative parcel maps followed by final parcel maps.

          In good economic times, an experienced subdivider can  
          comply with a tentative map's conditions in a few years.   
          Scarce financing, complex settings, and inexperience can  
          drag out the time between a tentative map's approval and  
          the filing of a final map.  If a tentative map expires, the  
          subdivider must start over, complying with any new required  
          conditions.

          The Permit Streamlining Act sets forth time limits and  
          procedures for some types of land use decisions, including  
          tentative maps.  It also prohibits a local agency, after it  
          approves or conditionally approves a tentative map for a  
          residential unit, from requiring conformance with any  
          condition the local agency could have imposed as a  
          condition to the issuance of any building permit,  
          five-years after the recordation of that subdivision's  
          final map or parcel map.  A city or county also can't  
          refuse to issue a building permit for failing to confirm  
          with or perform any conditions that the city or county  
          could have imposed as a condition to the previously  
          approved tentative or parcel map.  




          AB 116 -- 5/16/13 -- Page 2




          Tentative maps can be valid for up to 16 years:
                 The initial life of a tentative map is two years.   
               At the option of the city or county, a map's initial  
               life can be three years.
                 Local officials can grant extensions for up to six  
               years.
                 If the subdivider spends substantial funds and  
               files phased final maps, the remaining tentative map  
               is automatically extended by three years, up to a  
               maximum of ten years.
          These deadlines don't apply during development moratoria  
          (up to five years) or during pending litigation (up to five  
          years).
           
          During periods of economic recession, both in the mid-1990s  
          and in the last five years, the Legislature has extended  
          the life of unexpired subdivision approvals, without local  
          review or approval.  Unexpired subdivision maps that were  
          valid on:
                 September 13, 1993, gained two more years (SB 428,  
               Thompson, 1993).
                 May 14, 1996, gained one more year (AB 771, Aguiar,  
               1996). 
                 July 15, 2008, gained one more year (SB 1185,  
               Lowenthal, 2008).
                 July 15, 2009, gained two more years (AB 333,  
               Fuentes, 2009).
                 July 15, 2011, gained two more years (AB 208,  
               2011).

          When the Legislature granted the one-year extension in  
          2008, it also let local officials grant an additional year,  
          at their discretion (SB 1185, Lowenthal, 2008).  For a  
          tentative map or parcel map that is extended pursuant to  
          state law, a city or county may levy a fee or impose a  
          condition that requires the payment of a fee.

          Because of the continued poor housing construction market,  
          builders want legislators to extend the life of unexpired  
          tentative maps. 


                                   Proposed Law  

          Assembly Bill 116 extends the expiration date by 24 months  





          AB 116 -- 5/16/13 -- Page 3



          for any tentative map, vesting tentative map, or parcel map  
          for which a tentative map or tentative vesting map was  
          approved on or after January 1, 2000, and its expiration  
          date has not expired when this urgency bill takes effect,.   
          When determining if a tentative map or parcel map expires  
          before January 1, 2014, AB 116 allows counting only  
          discretionary extensions approved before the bill's  
          effective date, but not extensions because of litigation or  
          moratoria.

          For maps approved before January 1, 2000, AB 116 allows a  
          subdivider's to file an application for an extension at  
          least 90 days prior to the expiration of the approved or  
          conditionally approved tentative map, vesting tentative  
          map, or parcel map.  

          AB 116 requires a legislative body to extend the time at  
          which the map expires for a period of 24 months, upon a  
          determination that the map is consistent with the  
          applicable zoning and general plan requirement in effect  
          when the application is filed.  

          If the map is determined to be inconsistent with applicable  
          zoning and general plan requirements in effect when the  
          application is filed, AB 116 authorizes the legislative  
          body or advisory agency to deny or conditionally approve an  
          extension for a period of 24 months. 

          Prior to the expiration of an approved or conditionally  
          approved tentative map, upon a subdivider's application to  
          extend that map, AB 116 automatically extends the map for  
          60 days or until the application for the extension is  
          approved, conditionally approved, or denied, whichever  
          occurs last.  

          If the advisory agency denies a subdivider's application  
          for an extension, the bill authorizes a subdivider to  
          appeal to the legislative body within 15 days after the  
          advisory agency denied the extension. 

          An extension provided pursuant to AB 116 is in addition to  
          six other statutory extensions.  

          For any legislative, administrative, or other approval by a  
          state agency relating to a development project in a  
          subdivision affected by AB 116 that has not expired when  





          AB 116 -- 5/16/13 -- Page 4



          the bill takes effect, AB 116 extends the expiration date  
          by 24 months.  This extension is in addition to four other  
          statutory extensions.

          AB 116 reduces, from five years to three years, the period  
          of time after the approval or conditional approval of a  
          tentative map, or recordation of a parcel map, during which  
          a city or county is prohibited, with exceptions, from  
          imposing specified conditions on a building permit or  
          equivalent permit.  

          The bill also provides that the local agency is not  
          prohibited from levying a fee, or imposing a condition that  
          requires the payment of a fee upon the issuance of a  
          building permit. 


                               State Revenue Impact
           
          No estimate.


                                     Comments  

          1.   Purpose of the bill  .  Subdividers will build fewer  
          houses and apartments in 2011 than before the construction  
          industry collapsed.  Until the demand for new housing  
          resumes, subdividers aren't likely to complete the required  
          conditions of their tentative maps and qualify for final  
          maps.  With statutory time limits looming, some builders  
          risk losing their earlier approvals and having to start  
          over again.  Similar to the Legislature's earlier responses  
          during other market slumps, AB 116 preserves subdividers'  
          ability to complete their conditions for two more years,  
          waiting for California's economy to pick up again.   
          Proponents estimate that hundreds of thousands of  
          undeveloped housing units are at risk.  According to the  
          author, "Without AB 116, the construction projects  
          associated with active maps could be lost, stalling the  
          significant economic investments made to date and forcing  
          the project proponent to begin the costly entitlement  
          process anew."  

          2.   Consistency  .  State law requires each city and county  
          to adopt a general plan, which is used as a basis for  
          decisions regarding a city or county's physical  





          AB 116 -- 5/16/13 -- Page 5



          development.  Subdivisions, capital improvements,  
          development agreements, and other land use actions must be  
          consistent with the adopted general plan.  The Legislature  
          expanded the contents of local general plans to include  
          military operating areas (SB 1486, Knight, 2002; SB 926,  
          Knight, 2004), Native American places (SB 18, Burton,  
          2004), fire hazards (AB 3065, Kehoe, 2004), and flood  
          hazards (AB 162, Wolk, 2007).  Further, the Legislature  
          imposed tougher development standards: a sufficient water  
          supply must be available for larger subdivisions (SB 221,  
          Kuehl, 2001), and local officials must deny subdivisions  
          threatened by flooding in the Sacramento-San Joaquin Valley  
          (SB 5, Machado, 2007).  Public officials also wants to  
          address how land use decisions affect greenhouse gas  
          emissions (AB 32, Nuņez, 2006; SB 375, Steinberg, 2008).   
          For maps approved prior to January 1, 2000, AB 116  
          authorizes city councils and county supervisors to extend  
          the life of maps that don't meet current land use  
          standards, potentially putting houses in harm's way.  The  
          Committee may wish to consider whether a local agency  
          should be authorized to conditionally approve the extension  
          of a map for another 24 months, if that map is inconsistent  
          with current zoning laws and the city or county's general  
          plan. 

          3.   Urgency  .  Regular statutes take effect on the January 1  
          following their enactment; bills passed in 2013 take effect  
          on January 1, 2014.  The California Constitution allows  
          bills with urgency clauses to take effect immediately if  
          they're needed for the public peace, health, and safety.   
          AB 116 contains an urgency clause declaring the need for  
          the bill to take effect immediately.


                                 Assembly Actions  

          Assembly Local Government:              9-0
          Assembly Housing and Community Development:          7-0
          Assembly Appropriations:                          17-0
          Assembly Floor:                                   75-0


                         Support and Opposition  (5/30/13)

           Support  :  California Building Industry Association;  
          American Planning Association, California Chapter;  





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          Apartment Association of Greater Los Angeles; American  
          Council of Engineering Companies California; Associated  
          Builders and Contractors of California; California  
          Apartment Association; California Association of Realtors;  
          California Building Officials; California Business  
          Properties Association; California Chamber of Commerce;  
          California Chapter of American Fence Association;  
          California Fence Contractors Association; California State  
          Association of Counties; Engineering Contractors  
          Association; Flasher Barricade Association; Golden State  
          Builders Exchange; League of California Cities; Marin  
          Builders Association; Orange County Business Council; San  
          Diego County Apartment Association; Santa Barbara Rental  
          Property Association; Sunshine Design; Urban Contractors. 

           Opposition  :  Unknown.