BILL ANALYSIS Ó
AB 1105
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Date of Hearing: April 8, 2015
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Brian Maienschein, Chair
AB 1105
(Daly) - As Introduced February 27, 2015
SUBJECT: Subdivided lands: release of performance security.
SUMMARY: Repeals the sunset date in the statute governing the
timeframe and procedures for releasing subdivision performance
securities. Specifically, this bill:
1)Repeals the January 1, 2016, sunset date relating to the
procedures for releasing a performance security, thereby
extending the statute indefinitely.
EXISTING LAW:
1)Requires, pursuant to the Subdivision Map Act, the furnishing
of specified types of security with respect to the performance
of various acts or agreements subject to the Act.
2)Requires, until January 1, 2016, the specific procedures
imposed on a local agency for the complete or partial release
of a performance security furnished by a subdivider.
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FISCAL EFFECT: This bill is keyed fiscal and contains a
state-mandated local program.
COMMENTS:
1)Bill Summary and Background. This bill repeals the sunset date
in the statute governing the timeframe and procedures for
releasing subdivision performance securities.
Counties and cities commonly impose conditions when they
approve proposed subdivisions, often requiring the subdividers
to install public works such as street lights, curbs, and
sewers. Sometimes subdividers must provide assurances that the
work will be completed, including performance bonds, deposits,
credit instruments, liens, or other property interests. Until
2006, counties and cities followed their own procedures in
deciding when to release these securities. At the request of
builders, the Legislature adopted uniform procedures and time
limits by which counties and cities must either release the
securities provided for subdivision conditions or tell the
subdividers about the incomplete performance or unsatisfactory
work pursuant to AB 1460 (Umberg), Chapter 411, Statutes of
2005, which contained a five-year sunset date. In 2010, the
Legislature extended the sunset date another five years, until
January 1, 2016, pursuant to SB 1019 (Correa), Chapter 174,
Statutes of 2010.
This bill is sponsored by the California Building Industry
Association.
2)Author's Statement. According to the author, "Without action
the timeframes and procedures for the release of performance
securities established via SB 1019 (and its predecessor, AB
1460 (Umberg)), will expire. SB 1019 and AB 1460 have
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provided
10 years of operating experience under the established
timeframes and procedures and it is now appropriate to make
permanent."
3)Arguments in Support. The California Building Industry
Association, in support, notes
that in 2005, homebuilders worked closely with local governments
to establish the process through AB 1460 (Umberg) and that
action is needed this year to ensure the existing procedures
are maintained beyond the existing sunset date.
4)Arguments in Opposition. None on file.
REGISTERED SUPPORT / OPPOSITION:
Support
California Building Industry Association [SPONSOR]
Opposition
None on file.
AB 1105
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Analysis Prepared by:Debbie Michel / L. GOV. / (916) 319-3958