BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON GOVERNANCE AND FINANCE
                         Senator Robert M. Hertzberg, Chair
                                2015 - 2016  Regular 

                              
          
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          |Bill No:  |AB 514                           |Hearing    | 7/8/15  |
          |          |                                 |Date:      |         |
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          |Author:   |Williams                         |Tax Levy:  |No       |
          |----------+---------------------------------+-----------+---------|
          |Version:  |6/29/15                          |Fiscal:    |Yes      |
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          |Consultant|Weinberger                                            |
          |:         |                                                      |
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                         FINES FOR COUNTY ORDINANCE VIOLATIONS



          Raises the maximum amounts of administrative fines and penalties  
          that counties can impose for some violations of specified types  
          of ordinances.


           Background and Existing Law

           Under state law, a violation of a county ordinance is a  
          misdemeanor unless by ordinance it is made an infraction.  In  
          general, every ordinance violation that is determined to be an  
          infraction is punishable by:
                 A fine not exceeding $100 for a first violation.

                 A fine not exceeding $200 for a second violation of the  
               same ordinance within one year.

                 A fine not exceeding $500 for each additional violation  
               of the same ordinance within one year.

          As an exception to the general limits on fines for infractions,  
          a violation of local building and safety codes determined to be  
          an infraction is punishable by:
                 A fine not exceeding $100 for a first violation.

                 A fine not exceeding $500 for a second violation of the  
               same ordinance within one year.







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

          As an alternative to criminal enforcement mechanisms, a local  
          agency's legislative body can make any violation of any of its  
          ordinances subject to an administrative fine or penalty (SB 814,  
          Alquist, 1995).  Counties' administrative fines and penalties  
          are subject to the same maximum fine limits that state law  
          applies, in general, for ordinance violations that are  
          determined to be an infraction.  The local agency must adopt an  
          ordinance specifying the administrative procedures that govern  
          the imposition, enforcement, collection, and administrative  
          review of the fines or penalties.  The administrative procedures  
          must grant a reasonable time to remedy a continuing violation  
          before the imposition of administrative fines or penalties, when  
          the violation pertains to building, plumbing, electrical, or  
          other similar structural and zoning issues that do not create an  
          immediate danger to health or safety.  Within 20 days after  
          service of a final administrative order or decision regarding  
          administrative fines or penalties, a person contesting that  
          final administrative order or decision may appeal in Superior  
          Court.  Local agencies must go through a civil court proceeding  
          to collect unpaid fines and penalties.

          Some county officials suggest that the maximum amounts of fines  
          that counties can impose under current law are too low to deter  
          some people from willfully violating county ordinances.  For  
          example, in some circumstances, the costs of obtaining county  
          permits to hold a large event or undertake some kinds of  
          construction projects can far exceed the maximum fine amounts,  
          thereby allowing people to save money by choosing to violate  
          county permit requirements and pay the fines.  To help counties  
          deter this kind of behavior, county officials want the  
          Legislature to increase the maximum fines that counties can  
          impose for some ordinance violations.


           Proposed Law

           Assembly Bill 514, as an exception to the general statutory  
          limits on fines that counties can impose for infractions, allows  
          a county to impose a higher administrative fine for a violation  
          of a local building and safety ordinance, brush removal  








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          ordinance, grading ordinance, film permit ordinance, or zoning  
          ordinance that is determined to be an infraction.  The amount of  
          the administrative fine must be based upon the severity of the  
          threat to public health and safety and must not exceed:
                 For the first violation, 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 must not exceed $1,000.

                 For a second violation of the same ordinance within five  
               years of the first violation, 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 must not exceed $2,500.

                 For the third violation and subsequent violations of the  
               same ordinance within five years of the first violation, an  
               amount greater than $10,000, but less than $15,000. In the  
               absence of a permit fee, the amount of the fine must not  
               exceed $5,000.


           State Revenue Impact

           No estimate


           Comments

           1.  Purpose of the bill  .  Assembly Bill 514 seeks to encourage  
          proper permitting for construction activities and for large  
          events at residential locations by providing for increased fines  
          for specified county ordinance violations.  The relatively low  
          maximum fines that counties can impose are not sufficient to  
          deter some county residents and property owners from regularly  
          violating county codes by failing to obtain proper permits for  
          special events (parties, weddings, and film shoots) and failing  
          to comply with other county ordinances restricting construction  
          hours, noise levels, and other health, safety, and quality of  
          life standards.  When some property owners can receive thousands  
          of dollars in revenue per day for unpermitted events held on  
          their parcels, they may simply choose to accept paying fines as  
          a "cost of doing business" rather than paying more to obtain  
          proper event permits from a county.  AB 514 creates a reasonable  








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          deterrence mechanism and provides counties with more control to  
          enforce local health and safety ordinances.

          2.  Deterrents and incentives  .  It is unclear whether AB 514  
          strikes the proper balance between the need to deter willful  
          violations of county ordinances and the need to ensure that  
          fiscal consequences for violating local ordinances are  
          proportional and don't unduly burden California residents who  
          may already be struggling financially.  Imposing higher fines as  
          a deterrent against ordinance violations makes sense in the  
          context of wealthy property owners whose financial resources  
          allow them to flaunt local laws.  However, the bill does not  
          apply only to deep-pocketed scofflaws.  By allowing counties to  
          impose fines of thousands of dollars for violating county  
          ordinances, AB 514 may have the unintended consequence of  
          placing substantial burdens on county residents who are  
          struggling financially and may be unable to maintain their  
          property in a manner that complies with local ordinances.  In  
          counties that are struggling to pay for public services, the  
          higher maximum fines allowed by AB 514 may prove tempting as a  
          source of revenues.  Aggressive administrative enforcement of  
          county ordinances could generate thousands of dollars a year in  
          additional county revenues.  To ensure that legislators have an  
          opportunity to assess how counties implement the broader fine  
          and penalty authority granted by AB 514, the Committee may wish  
          to consider imposing a sunset date of January 1, 2023 on the  
          provisions enacted by the bill.  The Committee may also wish to  
          consider amending the bill to require that the Legislative  
          Analyst's Office report to the Legislature by January 1, 2022 on  
          whether the bill's provisions resulted in any substantial  
          changes in the frequency of county ordinance enforcement actions  
          or in counties' fine and penalty revenues.

          3.   Mandate  .  The California Constitution requires the state to  
          reimburse local governments for the costs of new or expanded  
          state mandated local programs.  Because AB 514 imposes  
          additional duties on officials who are responsible for imposing  
          fines or penalties for violations of specified ordinances,  
          Legislative Counsel says that it imposes a new state mandate.   
          AB 514 requires the state to reimburse local agencies if the  
          Commission on State Mandates determines that the bill imposes a  
          reimbursable mandate.  










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          Assembly Actions

           Assembly Local Government Committee:  6-2
          Assembly Appropriations Committee: 11-4
          Assembly Floor:                    47-27


           Support and  
          Opposition   (7/2/15)


           Support  :  California State Association of Counties; Lake County  
          Board of Supervisors; Napa County Board of Supervisors; Santa  
          Barbara County Board of Supervisors; Shasta County Board of  
          Supervisors.

           Opposition  :  California Farm Bureau Association.



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