BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 514


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          Date of Hearing:  April 29, 2015


                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT


                              Brian Maienschein, Chair


          AB 514  
          (Williams) - As Amended April 21, 2015


          SUBJECT:  Ordinances:  violations:  fines.


          SUMMARY:  Increases fine amounts counties may impose for  
          violations of specified ordinances.  Specifically, this bill:  


          1)Allows counties to impose increased fines for a violation,  
            determined to be an infraction, 
          of any of the following ordinances:



             a)   A local building and safety ordinance;



             b)   A brush removal ordinance;



             c)   A grading ordinance;



             d)   A film permit ordinance;








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             e)   A zoning ordinance; or,



             f)   An ordinance that regulates the drilling, operation,  
               maintenance, and abandonment of oil, gas, and geothermal  
               wells.



          2)Provides that the increased fines are to be established by  
            ordinance and are subject to all 
          of the following requirements: 



             a)   The amount of the fine for the first violation does not  
               exceed the amount of the permit fee required by the  
               ordinance multiplied by 10 or five thousand dollars  
               ($5,000), whichever is less.  In the absence of a permit  
               fee, the amount of the fine shall not exceed one thousand  
               dollars ($1,000);



             b)   The amount of the fine for a second violation of the  
               same ordinance within five years of the first violation is  
               greater than five thousand dollars ($5,000), but does not  
               exceed ten thousand dollars ($10,000).  In the absence of a  
               permit fee, the amount of the fine shall not exceed two  
               thousand five hundred dollars ($2,500);



             c)   The amount of the fine for the third violation of the  
               same ordinance within five years 








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             of the first violation is greater than ten thousand dollars  
               ($10,000), but does not exceed fifteen thousand dollars  
               ($15,000).  In the absence of a permit fee, the amount of  
               the fine shall not exceed five thousand dollars ($5,000);  
               and,



             d)   The amount of the fine is based upon the severity of the  
               threat to public health and safety.









          3)Provides that, if an ordinance described in 1), above, is not  
            subject to a fine established by ordinance as set forth in  
            this bill, the violation of that ordinance shall be subject to  
            a fine described in existing law.



          4)Provides that, if the Commission on State Mandates determines  
            that this bill contains costs mandated by the state,  
            reimbursement to local agencies and school districts for those  
            costs shall be made pursuant to current law governing state  
            mandated local costs.
          EXISTING LAW:  


          1)Allows the legislative body of a city, county, or city and  
            county to collect any fee, cost, 


          or charge incurred in specified activities, including the  








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            abatement of public nuisances, enforcement of specified zoning  
            ordinances, inspections and abatement of violations of the  
            State Housing Law, inspections and abatement of violations of  
            the California Building Standards Code, and inspections and  
            abatement of violations related to local ordinances that  
            implement these laws. 



          2)Limits the amount of a fee, cost, or charge described above to  
            the actual cost incurred performing the inspections and  
            enforcement activity, including permit fees, fines, late  
            charges, and interest.



          3)Provides that violation of a city or county ordinance is a  
            misdemeanor, unless by ordinance it is made an infraction.  



          4)Provides that a violation of a city or county ordinance may be  
            prosecuted by city or county authorities in the name of the  
            people of the State of California, or redressed by civil  
            action.



          5)Provides that every violation of a city or county ordinance  
            determined to be an infraction is punishable by the following:



             a)   A fine not exceeding one hundred dollars ($100) for a  
               first violation;



             b)   A fine not exceeding two hundred dollars ($200) for a  








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               second violation of the same ordinance within one year;  
               and,



             c)   A fine not exceeding five hundred dollars ($500) for  
               each additional violation of the same ordinance within one  
               year.



          6)Provides that a violation of local building and safety codes  
            determined to be an infraction is punishable by the following:



             a)   A fine not exceeding one hundred dollars ($100) for a  
               first violation;



             b)   A fine not exceeding five hundred dollars ($500) for a  
               second violation of the same ordinance within one year;  
               and,



             c)   A fine not exceeding one thousand dollars ($1,000) for  
               each additional violation of the same ordinance within one  
               year of the first violation.



          FISCAL EFFECT:  This bill is keyed fiscal and contains a  
          state-mandated local program.


          COMMENTS:  









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          1)Bill Summary.  This bill establishes a new fee structure for  
            violations of a number of specified county ordinances, if  
            those violations are infractions.  The specified ordinances  
            include those that govern building and safety; brush removal;  
            grading; film permitting; zoning; and, the drilling,  
            operation, maintenance, and abandonment of oil, gas, and  
            geothermal wells.
            The proposed fee structure is as follows:


             ------------------------------------------------------------- 
            |Number of         |Amount of fine if a  |Amount of fine in   |
            |violations within |permit fee exists    |the absence of a    |
            |specified time    |                     |permit fee          |
            |periods           |                     |                    |
            |                  |                     |                    |
            |                  |                     |                    |
            |------------------+---------------------+--------------------|
            |First violation   |Fine does not exceed |Fine shall not      |
            |                  |the amount of the    |exceed $1,000       |
            |                  |permit fee required  |                    |
            |                  |by the ordinance     |                    |
            |                  |multiplied by 10, or |                    |
            |                  |$5,000, whichever is |                    |
            |                  |less                 |                    |
            |                  |                     |                    |
            |                  |                     |                    |
            |------------------+---------------------+--------------------|
            |Second violation  |Fine is greater than |Fine shall not      |
            |within five years |$5,000 but does not  |exceed $2,500       |
            |of first          |exceed $10,000       |                    |
            |violation         |                     |                    |
            |                  |                     |                    |
            |                  |                     |                    |
            |------------------+---------------------+--------------------|
            |Third violation   |Fine is greater than |Fine shall not      |
            |within five years |$10,000 but does not |exceed $5,000       |
            |of first          |exceed $15,000       |                    |








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            |violation         |                     |                    |
            |                  |                     |                    |
            |                  |                     |                    |
             ------------------------------------------------------------- 



            The amount of the fine is based on the severity of the threat  
            to public health and safety.  This bill is sponsored by the  
            Santa Barbara County Board of Supervisors.





          2)Author's Statement.  According to the author, "AB 514 will  
            provide counties with more local control to impose fines for  
            specific violations of the County's Land Use and Development  
            codes, specifically where permits are available.  
            "The Land Use and Development codes focus on events that have  
            over 300 people attending, if there is potential public  
            disturbance, and/or a structure is built that would alter the  
            local landscape.  The current small fines for violations of  
            forgoing permits do not provide disincentives for violations  
            of the Land Use and Development codes for special events  
            (parties, weddings, and film shoots) and conditions for  
            construction hours and days.


            "AB 514 creates a reasonable deterrence mechanism and provides  
            counties with more control to enforce local health and safety  
            ordinances."


          3)Background.  Local governments have the authority to enact  
            local planning and land use regulations to protect the public  
            health, safety, and welfare of their residents through their  
            police power.  The "police power" provides the right to adopt  
            and enforce zoning regulations, as long as they do not  








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            conflict with state laws.
            Current law allows cities and counties to establish  
            ordinances, makes violations of ordinances misdemeanors,  
            unless they are made infractions via ordinance adopted by the  
            city or county, and outlines the following fee structure for  
            ordinance violations and building and safety code violations  
            that are determined to be infractions:


             ------------------------------------------------------------- 
            |Number of         |Amount of fine for   |Amount of fine for  |
            |violations within |ordinance violations |building and safety |
            |specified time    |                     |code violations     |
            |periods           |                     |                    |
            |                  |                     |                    |
            |                  |                     |                    |
            |------------------+---------------------+--------------------|
            |First violation   |Fine does not exceed |Fine does not       |
            |                  |$100                 |exceed $100         |
            |                  |                     |                    |
            |                  |                     |                    |
            |------------------+---------------------+--------------------|
            |Second violation  |Fine does not exceed |Fine does not       |
            |within one year   |$200                 |exceed $500         |
            |of first          |                     |                    |
            |violation         |                     |                    |
            |                  |                     |                    |
            |                  |                     |                    |
            |------------------+---------------------+--------------------|
            |Third violation   |Fine does not exceed |Fine does not       |
            |within one year   |$500                 |exceed $1,000       |
            |of first          |                     |                    |
            |violation         |                     |                    |
            |                  |                     |                    |
            |                  |                     |                    |
            |                  |                     |                    |
             ------------------------------------------------------------- 










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            According to the Santa Barbara County Board of Supervisors,  
            the sponsor of this bill, these fines are too low to provide  
            incentives for individuals to obtain proper permits.  The  
            sponsor notes that this code section was updated in 2003 to  
            account for inflation, but has not been updated since.  The  
            sponsor contends that the fines are so low that many property  
            owners find it easier to violate the County's land use and  
            development codes and pay the low fine than to obtain a  
            permit. 


            


            For example, when a property owner would like to build or  
            demolish a structure, the property owner will need to obtain a  
            permit that establishes acceptable working hours.  The permit  
            will take into account if there will be noise pollution,  
            traffic issues, and safety hazards to the public.  The permit  
            fee is then used to provide safety precautions and limit  
            public disturbances.  Fees are accessed on a situational  
            bases, thus the cost of each permit varies.  The cost of  
            permits for large events and certain construction projects are  
            typically higher than $100, which does not incentivize  
            property owners to obtain the permit.   





            The sponsor provided another example in the County of a large  
            commercial wedding for out of town residents.  The property  
            owner did not obtain the necessary permits for such a large  
            event. The non-residents had the means to acquire the permit,  
            but the fee to accommodate 300 or more guests would have been  
            higher than the violation fine for this event.  The permit  
            review would have addressed public safety and traffic concerns  
            for an event of this magnitude.  In this case, the County was  








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            only allowed to fine this owner $100 for the purposeful  
            violation.  This amount is insufficient to deter property  
            owners who can easily absorb this as part of their routine  
            business operating expense.





            This bill provides for increased fines for a number of  
            specified ordinance violations as a means of encouraging  
            proper permitting.  The author's office notes that recent  
            amendments inadvertently removed a section of the bill that  
            would have applied its provisions to cities.  The author  
            intends to restore that language so that this bill will apply  
            to cities, as well as counties.





          4)Policy Considerations.



             a)   Temporary Use and Construction Permits.  The sponsor's  
               stated intent of this bill is to encourage proper  
               permitting for construction activities and for large events  
               at residential locations.  The Committee may wish to  
               consider whether the bill should be narrowed to impose  
               fines based on what a temporary use permit or a  
               construction permit would have been for any given  
               violation, had it been properly permitted.



             b)   Inflationary Adjustment.  The sponsor notes that the fee  
               amounts in existing law have not been adjusted for 12  
               years.  The Committee may wish to consider if an  








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               inflationary adjustment alone would serve as an appropriate  
               remedy for the problem identified by the sponsor.



             c)   Fee Amounts.  Current law caps fines for infraction  
               violations at amounts ranging from $100 to $1,000,  
               depending on the number of violations in a year's time and  
               the type of ordinance that is violated.  This bill raises  
               those amounts significantly, ranging from a cap of $5,000  
               to $15,000.  The fines will be determined based on the  
               severity of the threat to public health and safety, which  
               the County will decide.  If existing fines were adjusted  
               for inflation, they would range from about $130 to about  
               $1,275.  The Committee may wish to consider to what extent  
               fines for the types of violations identified in this bill  
               should be increased.



             d)   Repeat Offenders.  This bill extends the time frame  
               during which a repeated violation 
             of the same ordinance would incur an increased fine.  Current  
               law limits that time period to one year.  This bill expands  
               it to five years.  The Committee may wish to consider  
               whether this extension is appropriate.



             e)   Statewide Application, No Sunset.  The Committee may  
               wish to consider if the provisions of this bill should  
               apply statewide, both in cities and counties, or if they  
               should be narrowed to apply only to Santa Barbara County.   
               The Committee may also wish to consider adding a sunset  
               date to allow the Legislature to revisit this authority in  
               the future to determine if it does, indeed, encourage  
               proper permitting. 










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             f)   Court Action.  Existing law provides that a violation of  
               a city or county ordinance may be prosecuted by city or  
               county authorities, or redressed by civil action.  The  
               Committee may wish to consider whether this bill is needed,  
               given this avenue of redress.



             g)   Oil, Gas and Geothermal Ordinances.  The most recent  
               amendments to this bill added language that would apply the  
               bill's provisions to ordinances that regulate the drilling,  
               operation, maintenance, and abandonment of oil, gas, and  
               geothermal wells.  This language is beyond the stated  
               intent of this bill and is unclear.  The Committee may wish  
               to remove this language from the bill.



          5)State Mandate.  This bill is keyed a state mandate, which  
            means the state could be required to reimburse local agencies  
            and school districts for implementing the bill's provisions,  
            if the Commission on State Mandates determines that the bill  
            contains costs mandated by the state.
          6)Arguments in Support.  The Santa Barbara County Board of  
            Supervisors, sponsor of this measure, states, "AB 514 gives  
            local governments the authority to raise local fines for  
            violators of land use codes who did not obtain a permit where  
            one is available?The current maximum allowable fine amount is  
            insufficient to deter violators of the Land Use Enforcement  
            Codes, and allows entities to visit a County without being  
            appropriately accountable to land use codes."





          7)Arguments in Opposition.  None on file.
          REGISTERED SUPPORT / OPPOSITION:








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          Support


          Santa Barbara County Board of Supervisors [SPONSOR]


          Lake County Board of Supervisors


          Shasta County Board of Supervisors




          Opposition


          None on file




          Analysis Prepared by:Angela Mapp / L. GOV. / (916) 319-3958




















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