BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1359
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          ASSEMBLY THIRD READING
          AB 1359 (Roger Hernández) 
          As Amended  May 29, 2013
          Majority vote 

           LOCAL GOVERNMENT    5-0                                         
           
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          |Ayes:|Levine, Alejo, Bradford,  |     |                          |
          |     |Mullin, Rendon            |     |                          |
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           SUMMARY  :  Allows Quimby Act fees to be used for the purpose of  
          developing new or rehabilitating existing park or recreational  
          facilities in a neighborhood other than the neighborhood in  
          which the fees were paid, if certain requirements are met.   
          Specifically,  this bill  :  

          1)Allows Quimby Act fees to be used for the purpose of  
            developing new or rehabilitating existing park or recreational  
            facilities in a neighborhood other than the neighborhood in  
            which the subdivision for which the fees were paid as a  
            condition to the approval of a tentative map or parcel map is  
            located, if all of the following requirements are met:

             a)   The neighborhood in which the fees are to be expended  
               has fewer than three acres of park area per 1,000 members  
               of the neighborhood population; 

             b)   The neighborhood in which the subdivision for which the  
               fees were paid has a park per 1,000 members of the  
               neighborhood population ratio that meets or exceeds the  
               ratio calculated pursuant to existing law contained in the  
               Quimby Act; and,

             c)   The legislative body holds a public hearing before using  
               the fees.  If the distance between the neighborhoods is  
               greater than two miles, the legislative body shall make a  
               finding supported by substantial evidence that it is  
               reasonably foreseeable that future inhabitants of the  
               subdivision for which the fee is imposed will use the  
               proposed park and recreational facilities.

          2)Adds in a new requirement to provisions in the Quimby Act that  
            require the legislative body to adopt a general plan or  








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            specific plan containing policies and standards for parks and  
            recreational facilities, and the park and recreational  
            facilities are in accordance with definite principles and  
            standards, as follows:

             a)   Requires the principles and standards to provide for  
               consistency between the calculation of the existing  
               neighborhood and community park area inventory pursuant to  
               existing provisions in the Quimby Act and the criteria and  
               procedures that the local agency applies to a determination  
               regarding the suitability of land offered for dedication  
               and credits for private open space.  Consistency is not  
               provided where the local agency refuses to do any of the  
               following:

               i)     Accept an area in complete or partial satisfaction  
                 of the land dedication requirement on the basis that it  
                 is unsuitable for park and recreational uses, if the area  
                 is substantially similar to areas in the park area  
                 inventory;

               ii)    Accept an area in complete or partial satisfaction  
                 of the land dedication requirement on the basis that the  
                 type of use the subdivider proposes is not an appropriate  
                 park and recreational use, if the use is substantially  
                 similar to uses on areas included in the park area  
                 inventory; and,

               iii)   Provide more that the minimum required credit  
                 pursuant existing law in the Quimby Act on the basis that  
                 the active recreational uses proposed by the subdivider  
                 are not appropriate park and recreational uses, if the  
                 recreational uses are substantially similar to uses on  
                 areas included in the park area inventory.

          3)Allows the city, county, or other local agency to which the  
            land or fees are conveyed or paid to enter into a joint or  
            shared use agreement with one or more public districts in the  
            jurisdiction, including, but not limited to, a school district  
            or community college district, in order to provide access to  
            park or recreational facilities to residents of subdivisions  
            with fewer than three acres of park area per 1,000 members of  
            the population.

           EXISTING LAW  :








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          1)Establishes the Quimby Act as part of the Subdivision Map Act.

          2)Allows, pursuant to the Quimby Act, the legislative body of a  
            city or county to, by ordinance, require the dedication of  
            land or impose a requirement of the payment of fees in lieu,  
            or a combination of both, for park or recreational purposes as  
            a condition to the approval of a tentative map or parcel map,  
            if all of the following requirements are met:

             a)   The ordinance has been in effect for a period of 30 days  
               prior to the filing of the tentative map of the subdivision  
               or parcel map;

             b)   The ordinance includes definite standards for  
               determining the proportion of a subdivision to be dedicated  
               and the amount of a fee to be paid in lieu thereof, and  
               provides that the amount of land dedicated or fees paid  
               shall be based upon the residential density.  The  
               dedication of land, or the payment of fees, or both, shall  
               not exceed the proportionate amount necessary to provide  
               three acres of park area per 1,000 persons residing within  
               a subdivision subject to this section, unless the amount of  
               existing neighborhood and community park area exceeds that  
               limit, in which case the legislative body may adopt the  
               calculated amount as a higher standard not to exceed five  
               acres per 1,000 persons residing within a subdivision:

               i)     The park area per 1,000 members of the population of  
                 the city, county, or local public agency shall be derived  
                 from the ratio that the amount of neighborhood and  
                 community park acreage bears to the total population of  
                 the city, county, or local public agency as shown in the  
                 most recent available federal census.  The amount of  
                 neighborhood and community park acreage shall be the  
                 actual acreage of existing neighborhood and community  
                 parks of the city, county, or local public agency as  
                 shown on its records, plans, recreational element, maps,  
                 or reports as of the date of the most recent available  
                 federal census;

               ii)    For cities incorporated after the date of the most  
                 recent available federal census, the park area per 1,000  
                 members of the population of the city shall be derived  
                 from the ratio that the amount of neighborhood and  








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                 community park acreage shown on the records, maps, or  
                 reports of the county in which the newly incorporated  
                 city is located bears to the total population of the new  
                 city as determined pursuant to Revenue and Taxation Code  
                 Section 11005.  In making any subsequent calculations  
                 pursuant to this section, the county in which the newly  
                 incorporated city is located shall not include the  
                 figures pertaining to the new city which were calculated  
                 pursuant to this paragraph.  Fees shall be payable at the  
                 time of the recording of the final map or parcel map or  
                 at a later time as may be prescribed by local ordinance.

             c)   Requires the land, fees, or combination thereof to be  
               used only for the purpose of developing new or  
               rehabilitating existing neighborhood or community park or  
               recreational facilities to serve the subdivision;

             d)   The legislative body has adopted a general plan or  
               specific plan containing policies and standards for parks  
               and recreation facilities, and the park and recreational  
               facilities are in accordance with definite principles and  
               standards;

             e)   The amount and location of land to be dedicated or the  
               fees to be paid shall bear a reasonable relationship to the  
               use of the park and recreational facilities by the future  
               inhabitants of the subdivision;

             f)   The city, county or other local public agency to which  
               the land or fees are conveyed or paid shall develop a  
               schedule specifying how, when, and where it will use the  
               land or fees, or both, to develop park or recreational  
               facilities to serve the residents of the subdivision.  Fees  
               collected under the ordinance shall be committed within  
               five years after the payment of the fees of the issuance of  
               building permits on one-half of the lots created by the  
               subdivision, whichever occurs later;

             g)   Only the payment of fees may be required in subdivisions  
               containing 50 parcels or less, except that when a  
               condominium project, stock cooperative, or community  
               apartment project, exceeds 50 dwelling units, dedication of  
               land may be required notwithstanding that the number of  
               parcels may be less than 50;









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             h)   Subdivisions containing less than five parcels and not  
               used for residential purposes shall be exempted from the  
               requirements of this section.  However, in that event, a  
               condition may be placed on the approval of a parcel map  
               that if a building permit is requested for construction of  
               a residential structure or structures on one or more of the  
               parcels within four years, the fee may be required to be  
               paid by the owner of each parcel as a condition of the  
               issuance of the permit; and,

             i)   If the subdivider provides park and recreational  
               improvements to the dedicated land, the value of the  
               improvements together with any equipment located thereon  
               shall be a credit against the payment of fees or dedication  
               of land required by the ordinance.

          3)Requires land or fees pursuant to the Quimby Act to be  
            conveyed or paid directly to the local public agency which  
            provides park and recreational services on a communitywide  
            level and to the area within which the proposed development  
            will be located, if that agency elects to accept the land or  
            fee.

          4)Requires, if park and recreational services and facilities are  
            provided by a public agency other than a city or county, the  
            amount and location of land to be dedicated or fees to be paid  
            shall, subject to 2b) above, be jointly determined by the city  
            or county having jurisdiction and that other public agency.

          5)Authorizes cities and counties to create infrastructure  
            financing districts (IFDs) and issue bonds to pay for  
            community scale public works:  highways, transit, water  
            systems, sewer projects, flood control, child care facilities,  
            libraries, parks, and solid waste facilities.

          6)Allows an IFD to divert property tax increment revenues from  
            other local governments, excluding school districts, for up to  
            30 years, in order to pay back bonds issued by the IFD.

          7)Requires that in order to form an IFD a city or county must  
            develop an infrastructure plan, send copies to every  
            landowner, consult with other local governments, and hold a  
            public hearing.

          8)Requires that when forming an IFD, local officials must find  








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            that its public facilities are of communitywide significance  
            and provide significant benefits to an area larger than the  
            IFD.

          9)Requires that every local agency, who will contribute its  
            property tax increment revenue to the IFD, approve the plan.

          10)Requires a two-thirds voter approval of the formation of the  
            IFD and the issuance of bonds.

           FISCAL EFFECT  :  None

           COMMENTS  :  This bill allows Quimby Act fees to be used for the  
          purpose of developing new or rehabilitating existing park or  
          recreational facilities in a neighborhood other than the  
          neighborhood in which the subdivision for which fees were paid  
          as a condition to the approval, if specified conditions are met.  
           First, the neighborhood in which the fees are to be expended  
          must have fewer than three acres of park area per 1,000 members  
          of the neighborhood population; second, the neighborhood in  
          which the subdivision for which the fees were paid must have a  
          park per 1,000 members of the neighborhood population ratio that  
          meets or exceeds the ratio calculated under existing law  
          contained in the Quimby Act; and third, the legislative body  
          must hold a public hearing before using the fees.  Additionally,  
          the bill specifies that if the distance between the  
          neighborhoods is greater than two miles, the legislative body  
          shall make a finding supported by substantial evidence that it  
          is reasonably foreseeable that future inhabitants of the  
          subdivision for which the fee is imposed will use the proposed  
          park and recreational facilities.

          The bill allows for funds to be used to create joint use  
          agreements between school districts, universities, counties and  
          cities.  The bill additionally adds in new requirements to the  
          provisions in the Quimby Act that require the legislative body  
          to adopt a general plan or specific plan containing policies and  
          standards for parks and recreational facilities, and the park  
          and recreational facilities are in accordance with definite  
          principles and standards.

          This bill is author-sponsored.

          According to the author, "Local governments in California  
          provide a critical role in the effort to set aside parkland and  








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          open space for recreational purposes.  Since the passage of the  
          Quimby Act in 1975, cities and counties have been authorized to  
          require developers to set aside land, donate conservation  
          easements, or pay fees for park improvements.  Per the Quimby  
          Act, these funds are to 'serve the subdivision' being developed.  
           Thus, the resources stay in the area undergoing development.   
          Areas with little to no development do not receive these  
          resources, many of which are park poor.

          "Low-income communities and communities of color suffer the most  
          from disparities in access to green space and from health and  
          social problems that stem from such inequalities.  The fact is  
          that low-income people of color disproportionately lack equal  
          access to parks, school fields, beaches, trails, and forests,  
          which has been in part a result of unequal land use policy.  In  
          a 2011 study, The City Project found that many areas in  
          California and in particular Los Angeles County can be  
          considered park poor.  "Park poor" defined in California law  
          refers to any geographic area that provides less than 3 acres of  
          green space per 1,000 residents.  

          "Investing in California's parks and creating equitable access  
          to green space throughout the state would create healthier  
          communities and decrease childhood obesity.  Parks also provide  
          an important sense of community pride and are low or no-cost  
          places to exercise and celebrate community events, family  
          events, heritage and art."

          Cities and counties have been authorized since the passage of  
          the 1975 Quimby Act to pass ordinances requiring that developers  
          set aside land, donate conservation easements, or pay fees for  
          park improvements.  The Quimby Act was substantially amended in  
          1982 to further define acceptable uses of or restrictions on  
          Quimby funds, and provide acreage/population standards and  
          formulas for determining the exaction.  One other major change  
          was to specify that the exactions must be closely tied to a  
          project's impacts as identified through traffic studies required  
          by CEQA, meaning that there has to be a "nexus."

          To impose Quimby Act fees, the city or county must have a  
          general plan or specific plan that contains policies and  
          standards for park facilities.  Under the Quimby Act, fees must  
          bear a reasonable relationship to the proposed subdivision.   
          Those fees can only be used for developing new parks or  
          rehabilitating parks that serve that subdivision.  As well, the  








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          Quimby Act requires that the amount and location of land to be  
          dedicated or the fees to be paid shall bear a "reasonable  
          relationship to the use of the park and recreational facilities  
          by the future inhabitants of the subdivision."

          This bill broadens how and where the Quimby Act fees can be  
          used.  The Legislature may wish to consider the implications of  
          undoing 30-plus years of long-held policy that requires the  
          local government to establish a reasonable nexus in order to  
          exact the fee.

          This bill also requires, if Quimby Act fees are to be used for  
          "park poor" areas rather than to "serve" the subdivision for  
          which the developer has paid the Quimby fee, that before fees  
          are used in such a manner, the legislative body must hold a  
          public hearing.  
          Under current law, implementation of a Quimby ordinance begins  
          once a developer files an application for a development project  
          with a tentative subdivision parcel map.  The map goes to a  
          review committee that makes recommendations on the map, which  
          are then sent to the planning department.  The city council or  
          board of supervisors would then act on the final map during a  
          public hearing and if approved, the fees would be paid.

          The Legislature may wish to consider the implications of  
          requiring the legislative body to hold a hearing before fees can  
          be used for the broader purposes pursuant to this bill's  
          provisions.

          The bill adds an additional requirement that should the distance  
          between the neighborhoods where the fee is paid and where the  
          fees will be spent is greater than two miles, the legislative  
          body is required to make a finding supported by substantial  
          evidence that it is reasonably foreseeable that future  
          inhabitants of the subdivision for which the fee is imposed will  
          use the proposed park and recreational facilities.  The  
          Legislature may wish to consider the requirement of "substantial  
          evidence" and whether this language that requires a certain  
          legal burden of proof made in a public hearing will open up  
          cities and counties to greater threats of litigation.

          A previous bill, AB 2936 (Aroner) of 2002, would have allowed  
          counties and cities to spend their Quimby Act fees to prepare  
          master plans for park and recreation facilities.  The Senate  
          Local Government Committee analysis on the bill notes that "AB  








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          2936 violates [the] nexus test in two ways.  First, the bill  
          allows local officials to divert Quimby Act fees away from  
          capital spending and use the money for master plans.  Second,  
          the bill allows officials to divert fees raised from a specific  
          subdivision and use the money to benefit the wider community.   
          Mitigation fees must be used to mitigate the project's effects,  
          not to compensate for other unmet needs."  AB 2936 was  
          subsequently amended to address an unrelated topic.  

          In light of the previous legislative attempt to broaden the  
          usage of Quimby fees, the Legislature may wish to consider  
          whether the Legislature should depart from the established nexus  
          requirements.   

          The League of California Cities, in their "Notice of Concerns"  
          letter, writes that "There is a question of whether there is a  
          sufficient nexus between the fees paid and the benefit,  
          including the recipients of that benefit.  There is abundant  
          case law upholding the principle that development fees are not  
          taxes, if they are imposed in accordance with the procedure  
          found in Government Code 66000 and those following.  These  
          statutes (which constitute the Mitigation Fee Act) essentially  
          codify the required nexus that courts have repeatedly said is  
          necessary to justify a fee."

          "In the case of  Kings County v. City of Lemoore (2010 185  
          Cal.App. 4th 554  ), the California Appellate Court rejected the  
          idea that the Quimby Act was the exclusive statutory authority  
          for funding parks and recreational facilities.  The court held  
          that a separate municipal park fee (outside the scope of the  
          Quimby Act) to fund city-wide recreational facilities was valid.  
           This raises the question of whether amending the Quimby Act is  
          the proper funding mechanism, given the nexus analysis that must  
          occur."

          Given these legal concerns by cities, the Legislature may wish  
          to consider whether the threat of litigation would act as a  
          deterrent for cities and counties to actually use Quimby Act  
          fees for the broader purposes pursuant to the bill's provisions.

          A number of existing tools already exist and are at the disposal  
          of local governments. Development fees are collected on each and  
          every permit in the state of California, and these fees include  
          those levied for improvement and maintenance of parks.   
          Additionally, Mello-Roos Districts, and Infrastructure Financing  








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          Districts (IFD) provide opportunities and tools which can  
          revitalize existing parks.  The Legislature may wish to consider  
          whether the author's stated purpose of increasing funds to be  
          used in "park poor" areas could be better accomplished through  
          an IFD or other financing tool.

          Support arguments:  Supporters argue that this bill will invest  
          in California's parks and create more equitable access to green  
          space throughout the state and would create healthier  
          communities, decrease childhood obesity, and help alleviate  
          mental illness caused by lack of activity and stress.

          Opposition arguments:  Opponents argue that the existing  
          requirement to "serve the subdivision" provides the nexus  
          between the fee being collected and the impact from the  
          subdivision, and that circumventing that requirement would open  
                the door to constitutional and legal challenges to the  
          implementation of the Quimby Act.

           
          Analysis Prepared by  :    Debbie Michel / L. GOV. / (916)  
          319-3958 


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