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.












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