BILL ANALYSIS Ó
AB 1191
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ASSEMBLY THIRD READING
AB
1191 (Nazarian)
As Introduced May 18, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+---------------------+---------------------|
|Local |9-0 |Maienschein, | |
|Government | |Gonzalez, Alejo, | |
| | |Chiu, Cooley, | |
| | |Gordon, Holden, | |
| | |Linder, Waldron | |
| | | | |
| | | | |
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SUMMARY: Allows the interest income generated from a Quimby Act
fee to be expended in the same manner as the Quimby Act fee,
pursuant to the Quimby Act. Specifically, this bill:
1)Defines the term "fee" for purposes of the Quimby Act to include
any interest income generated from a fee charged and collected
pursuant to the Quimby Act.
2)States that the addition of the language as specified in 1),
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above, does not constitute a change in, but is declaratory of,
existing law, and states that the Legislature further finds and
declares that any locally adopted ordinance or regulation that
is consistent with 1), above, is valid.
EXISTING LAW:
1)Establishes the Quimby Act as part of the Subdivision Map Act,
and allows the legislative body of a city or county to, by
ordinance, require the dedication of land or impose a
requirement of the payment of fees in lieu thereof, or a
combination of both, for park or recreational purposes as a
condition to the approval of a tentative map or parcel map, if
all of the following requirements are met:
a) The ordinance has been in effect for a period of 30 days
prior to the filing of the tentative map of the subdivision
or parcel map;
b) The ordinance includes definite standards for determining
the proportion of a subdivision to be dedicated and the
amount of any fee to be paid in lieu thereof, as specified.
However, the dedication of land, or the payment of fees, or
both, shall not exceed the proportionate amount necessary to
provide three acres of park area per 1,000 persons residing
within a subdivision subject to this section, unless the
amount of existing neighborhood and community park area, as
calculated pursuant to this subdivision, exceeds that limit,
in which case the legislative body may adopt the calculated
amount as a higher standard not to exceed five acres per
1,000 persons residing within a subdivision subject to this
section;
i) The park area per 1,000 members of the population of
the city, county, or local public agency shall be derived
from the ratio that the amount of neighborhood and
community park acreage bears to the total population of the
city, county, or local public agency as shown in the most
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recent available federal census. The amount of
neighborhood and community park acreage shall be the actual
acreage of existing neighborhood and community parks of the
city, county, or local public agency as shown on its
records, plans, recreational element, maps, or reports as
of the date of the most recent available federal census.
ii) For cities incorporated after the date of the most
recent available federal census, the park area per 1,000
members of the population of the city shall be derived from
the ratio that the amount of neighborhood and community
park acreage shown on the maps, records, or reports of the
county in which the newly incorporated city is located
bears to the total population of the new city as
determined. In making any subsequent calculations pursuant
to this section, the county in which the newly incorporated
city is located shall not include the figures pertaining to
the new city which were calculated pursuant to this
paragraph. Fees shall be payable at the time of the
recording of the final map or parcel map, or at a later
time as may be prescribed by local ordinance.
c) The land, fees, or combination thereof are to be used only
for the purpose of developing new or rehabilitating existing
neighborhood or community park or recreational facilities to
serve the subdivision, except as provided in i), below.
i) Notwithstanding c), above, fees may be used for the
purpose of developing new or rehabilitating existing park
or recreational facilities in a neighborhood other than the
neighborhood in which the subdivision for which fees were
paid as a condition to the approval of a tentative map or
parcel map is located, if all of the following requirements
are met:
(1) The neighborhood in which the fees are to be
expended has fewer than three acres of park area per
1,000 members of the neighborhood population;
(2) The neighborhood in which the subdivision for
which the fees were paid has a park area per 1,000
members of the neighborhood population ratio that meets
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or exceeds the ratio calculated as specified, but in no
event is less than three acres per 1,000 persons;
(3) The legislative body holds a public hearing
before using the fees pursuant to this subparagraph;
(4) The legislative body makes a finding supported
by substantial evidence that it is reasonably
foreseeable that future inhabitants of the subdivision
for which the fee is imposed will use the proposed park
and recreational facilities in the neighborhood where
the fees are used;
(5) The fees are used within a specified radius that
complies with the city's or county's ordinance adopted
pursuant to 1) a) above, and are consistent with the
adopted general plan or specific plan of the city or
county. For purposes of this clause, "specified radius"
includes a planning area, zone of influence, or other
geographic region designated by the city or county, that
otherwise meets the requirements of this section.
d) The legislative body has adopted a general plan or
specific plan containing policies and standards for parks and
recreational facilities, and the park and recreational
facilities are in accordance with definite principles and
standards.
e) The amount and location of land to be dedicated or the
fees to be paid shall bear a reasonable relationship to the
use of the park and recreational facilities by the future
inhabitants of the subdivision.
f) The city, county, or other local public agency to which
the land or fees are conveyed or paid shall develop a
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schedule specifying how, when, and where it will use the land
or fees, or both, to develop park or recreational facilities
to serve the residents of the subdivision. Any fees
collected under the ordinance shall be committed within five
years after the payment of the fees or the issuance of
building permits on one-half of the lots created by the
subdivision, whichever occurs later. If the fees are not
committed, they, without any deductions, shall be distributed
and paid to the then record owners of the subdivision in the
same proportion that the size of their lot bears to the total
area of all lots within the subdivision.
i) The city, county, or other local agency to which the
land or fees are conveyed or paid may enter into a joint or
shared use agreement with one or more other public
districts in the jurisdiction, including, but not limited
to, a school district or community college district, in
order to provide access to park or recreational facilities
to residents of subdivisions with fewer than three acres of
park area per 1,000 members of the population.
g) If the subdivider provides park and recreational
improvements to the dedicated land, the value of the
improvements together with any equipment located thereon
shall be a credit against the payment of fees or dedication
of land required by the ordinance.
2)Land or fees required shall be conveyed or paid directly to the
local public agency which provides park and recreational
services on a communitywide level and to the area within which
the proposed development will be located, if that agency elects
to accept the land or fee. The local agency accepting the land
or funds shall develop the land or use the funds in the manner
provided in this section.
3)If park and recreational services and facilities are provided by
a public agency other than a city or county, the amount and
location of land to be dedicated or fees to be paid shall, as
specified, be jointly determined by the city or county having
jurisdiction and that other public agency.
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FISCAL EFFECT: None
COMMENTS:
1)Bill Summary. This bill allows the interest income generated
from a Quimby Act fee to be expended in the same manner as the
fee itself, consistent with the provisions of the Quimby Act.
This bill also clarifies that the treatment of interest income
in this manner does not constitute a change in, but is
declaratory of existing law, and that any locally adopted
ordinance or regulation that is consistent with this
interpretation is valid. This bill is sponsored by the City of
Los Angeles.
2)Author's Statement. According to the author, "State law does
not grant cities the statutory authority to use interest
generated on Quimby fees for park development. Existing law
ties the hands of local municipalities by making local Quimby
resources inaccessible and used for their specified purpose. AB
1191 makes long overdue clarifying changes in the law to give
cities authority to utilize dormant funds. Specifically, this
bill will ensure Quimby interest fees are used to create much
needed public outdoor space."
According to the author, interest of Quimby fees has amounted to
an estimated $15 to $20 million in untapped Quimby revenue for
the City of Los Angeles.
3)Quimby Act and Previous Legislation. Cities and counties have
been authorized since the passage of the 1975 Quimby Act to pass
ordinances that require developers to set aside land, donate
conservation easements, or pay fees for park improvements. The
Quimby Act was substantially amended in 1982 to further define
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acceptable uses of or restrictions on Quimby funds, and provide
acreage/population standards and formulas for determining the
exaction. One other major change was to specify that the
exactions must be closely tied to a project's impacts as
identified through traffic studies required by the California
Environmental Quality Act, meaning that there has to be a
"nexus."
To impose Quimby Act fees, the city or county must have a
general plan or specific plan that contains policies and
standards for park facilities. Prior to 2014, fees were
required to bear a reasonable relationship to the proposed
subdivision. Those fees could only be used for developing new
parks or rehabilitating parks that serve that subdivision. As
well, the Quimby Act requires that the amount and location of
land to be dedicated or the fees to be paid shall bear a
"reasonable relationship to the use of the park and recreational
facilities by the future inhabitants of the subdivision."
However, AB 1359 (Roger Hernández), Chapter 412, Statutes of
2013, made several changes to the Quimby Act. AB 1359 revised
the requirements that needed to be met in order for Quimby Act
fees to be used for the purpose of developing new or
rehabilitating existing park or recreational facilities in a
neighborhood other than the neighborhood in which the fees were
paid, as follows:
a) The neighborhood in which the fees are to be expended must
have fewer than three acres of park area per 1,000 members of
the neighborhood population;
b) The neighborhood in which the subdivision for which the
fees were paid cannot have less than three acres per 1,000
members;
c) The legislative body must hold a public hearing before
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using the fees in this manner;
d) The legislative body must make a finding supported by
substantial evidence that it is reasonably foreseeable that
future inhabitants of the subdivision for which the fee is
imposed will use the proposed park and recreational
facilities in the neighborhood where the fees are used; and,
e) The fees must be used within a "specified radius" that
complies with the city's or county's ordinance adopted
pursuant to the Quimby Act, and must be consistent with the
adopted general plan or specific plan of the city or county.
"Specified radius" is defined to include a planning area,
zone of influence, or other geographic region designated by
the city or county, that otherwise meets the requirements of
the bill.
4)Policy Considerations. The Legislature may wish to consider the
following:
a) Interest Follows the Fee. The generally held principle on
local finances is that the interest income follows the
source, in this case the Quimby fee itself. The Legislature
may wish to ask the author and sponsor about the City of Los
Angeles' legal interpretation that they cannot expend the
interest income in the same manner as the fee.
b) Explicit Prohibition vs. Implicit Understanding. The
author and sponsor argue that the Quimby Act is silent on how
interest income on Quimby fees can be used, and thereby
prohibits the usage of interest income in the same manner as
the fees themselves. However, there is no outright
prohibition in the Quimby Act that prevents a local agency
from doing this.
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c) How Long? The Legislature may wish to ask the author and
sponsor how long the $15 to $20 million has been sitting in
accounts. The Quimby Act provides that any fees collected
under the ordinance "shall be committed within five years
after the payment of the fees or the issuance of the building
permits on one-half of the lots created by the subdivision,
whichever occurs later." The Quimby Act also provides that
"if the fees are not committed, they, without any deductions,
shall be distributed and paid the then record owners of the
subdivision in the same proportion that the size of their lot
bears to the total area of all lots within the subdivision."
Because this bill seeks to treat interest income in the same
manner as Quimby fees, then the Legislature may wish to
consider whether interest income sitting in an account for
longer than five years would actually need to follow the
above provisions and be returned.
5)Arguments in Support. The City of Los Angeles argues that state
law currently leaves these funds in limbo and prevents cities
from using these funds for any public benefit.
6)Arguments in Opposition. None on file.
Analysis Prepared by:
Debbie Michel / L. GOV. / (916) 319-3958 FN:
0000450
AB 1191
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