BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 514


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          ASSEMBLY THIRD READING


          AB  
          514 (Williams)


          As Amended  May 4, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                 |Noes                 |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Local           |6-2   |Gonzalez, Alejo,     |Maienschein, Waldron |
          |Government      |      |Chiu, Cooley,        |                     |
          |                |      |Gordon, Holden       |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Appropriations  |11-4  |Gomez, Bloom, Bonta, |Bigelow, Chang,      |
          |                |      |Calderon, Eggman,    |Gallagher, Wagner    |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |                |      |Eduardo Garcia,      |                     |
          |                |      |Holden, Quirk,       |                     |
          |                |      |Rendon, Weber, Wood  |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
           ------------------------------------------------------------------- 


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










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          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; or, e) a zoning ordinance.


          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 three or $5,000, whichever is less.  In the  
               absence of a permit fee, the amount of the fine shall not  
               exceed $1,000;


             b)   The amount of the fine for a second violation of the same  
               ordinance within five years of the first violation does not  
               exceed the amount of the permit fee required by the ordinance  
               multiplied by five, or $10,000, whichever is less.  In the  
               absence of a permit fee, the amount of the fine shall not  
               exceed $2,500;


             c)   The amount of the fine for the third violation of the same  
               ordinance within five years of the first violation is greater  
               than $10,000, but does not exceed $15,000.  In the absence of  
               a permit fee, the amount of the fine shall not exceed $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  








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            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 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.










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          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 $100 for a first violation;


             b)   A fine not exceeding $200 for a second violation of the  
               same ordinance within one year; and,


             c)   A fine not exceeding $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 $100 for a first violation;


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


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


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, this bill is permissive and, therefore, any local costs  
          are not reimbursable.


          COMMENTS:  


          1)Bill Summary.  This bill establishes a new fee structure for  








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            violations of a number of specified county ordinances, if those  
            violations are determined to be infractions.  The specified  
            ordinances include those that govern building and safety; brush  
            removal; grading; film permitting; and, zoning.












            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 three, |                    |
            |                  |or $5,000, whichever |                    |
            |                  |is less              |                    |
            |                  |                     |                    |
            |                  |                     |                    |
            |------------------+---------------------+--------------------|
            |Second violation  |Fine does not exceed |Fine shall not      |
            |within five years |the amount of the    |exceed $2,500       |








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            |of first          |permit fee required  |                    |
            |violation         |by the ordinance     |                    |
            |                  |multiplied by five,  |                    |
            |                  |or $10,000,          |                    |
            |                  |whichever is less    |                    |
            |                  |                     |                    |
            |                  |                     |                    |
            |------------------+---------------------+--------------------|
            |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       |                    |
            |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  








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            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 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         |
            |                  |                     |                    |
            |                  |                     |                    |








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            |------------------+---------------------+--------------------|
            |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         |                     |                    |
            |                  |                     |                    |
            |                  |                     |                    |
            |                  |                     |                    |
             ------------------------------------------------------------- 


            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  








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            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  
            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 Legislature may wish to consider  
               whether this bill should be narrowed to impose fines based on  
               what a temporary use permit or a construction permit would  
               have been if those permits been properly obtained or  
               followed.
             b)   Inflationary Adjustment.  The sponsor notes that the fee  
               amounts in existing law have not been adjusted for 12 years.   
               If existing fines were adjusted for inflation, they would  
               range from about $130 to about $1,275.  The Legislature may  








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               wish to consider if an 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, with maximum fines ranging from $1,000 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.  The Legislature 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  
               Legislature may wish to consider whether this extension is  
               appropriate.


             e)   Statewide Application, No Sunset.  The Legislature may  
               wish to consider if the provisions of this bill should apply  
               statewide, in both cities and counties, or if they should be  
               narrowed to apply only to Santa Barbara County.  The  
               Legislature 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.  



             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 Legislature  
               may wish to consider whether this bill is needed, given this  








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               avenue of redress.


          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 this bill's provisions, if the  
            Commission on State Mandates determines that this bill contains  
            costs mandated by the state.
          6)Arguments in Support.  The Santa Barbara County Board of  
            Supervisors, sponsor of this bill, 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.




          Analysis Prepared by:                                               
                          Angela Mapp / L. GOV. / (916) 319-3958  FN:  
          0000468