BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1191| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1191 Author: Nazarian (D) Amended: 6/24/15 in Senate Vote: 21 SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 7/1/15 AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach, Pavley ASSEMBLY FLOOR: 74-0, 5/22/15 - See last page for vote SUBJECT: Quimby Act: fees SOURCE: Author DIGEST: This bill allows the City of Los Angeles to spend proceeds from accrued interest on fee revenues collected pursuant to the Quimby Act for specified purposes. ANALYSIS: Existing law: 1)Sets out four criteria, pursuant to the Mitigation Fee Act (AB 1600, Cortese, 1987), that local officials must meet when charging developer impact fees: a) Identify the fee's purpose. b) Identify the fee's use. c) Determine a reasonable relationship between the use of AB 1191 Page 2 the fee and the type of development project. d) Determine a reasonable relationship between the need for public facilities and the type of development project. 2)Controls, pursuant to the Subdivision Map Act, how counties and cities review and approve property owners' requests to convert larger parcels into smaller lots. Local officials commonly attach scores of conditions when they approve tentative subdivision maps. Mainstream legal thinking holds that counties and cities have three sources of authority to impose conditions on proposed subdivisions: a) Conditions to make the subdivision consistent with the local general plan. b) Conditions to mitigate a subdivision's environmental impacts. c) Conditions that the Map Act specifically authorizes. 3)Allows, pursuant to the Quimby Act, counties and cities to require subdividers to dedicate land, or pay in-lieu fees for parks as a condition of approving a new subdivision. 4)Requires that, to impose Quimby Act fees, a county or city must have a general plan or a specific plan that contains policies and standards for park facilities. Quimby Act fees must "bear a reasonable relationship" to the proposed subdivision. Counties and cities can use the Quimby Act fees only for developing new parks or rehabilitating parks that serve that subdivision. 5)Allows, as an exemption, a county or city to use 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 subdivision for which fees were paid if specified requirements are met (AB 1359, Hernández, Chapter 412, Statutes of 2013). 6)Requires that fees collected by local governments pursuant to the Quimby Act must 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 AB 1191 Page 3 occurs later. If the fees are not committed, they, without any deductions, must 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. This bill: 1)Allows a city with a population of at least three million to commit interest accrued on or before January 1, 2016, on fees charged pursuant to the Quimby Act, without regard to the date the fee was collected or the date of issuance of building permits on one-half of the lots created by the subdivision, outside the subdivision for which the fees were collected if the city: a) Holds a public hearing before committing the interest, and b) Uses the interest to develop new, or rehabilitate existing, neighborhood or community parks or recreational facilities within the city. 2)Directs that the authority for a city to commit interest on Quimby Act fees subject to the conditions described above will remain in effect only until January 1, 2021, on which date that authority will be automatically repealed. 3)Specifies that, with regard to the expenditure of Quimby Act fees, the term "fee" includes any interest income generated from a fee charged and collected pursuant to the Quimby Act. 4)States that its provisions do not constitute a change in, but are declaratory of, existing law and that any locally adopted ordinance or regulation that is consistent with this bill's provisions is valid. Background For many years, the City of Los Angeles accounted for interest income generated by Quimby Act fees in a manner that now prevents the City from connecting specific amounts of interest income with fees paid for any particular subdivision at any particular time. Because the language in the Quimby Act does AB 1191 Page 4 not specifically address the use of interest income generated from fees, city officials worry that their authority to spend that interest income for park projects is, at best, ambiguous. They want the Legislature to clarify the statutory authority to spend interest income from Quimby Act fees and allow the City of Los Angeles to spend interest proceeds accrued until January 1, 2016, for specified park projects. FISCAL EFFECT: Appropriation: No Fiscal Com.:NoLocal: No SUPPORT: (Verified7/2/15) City of Los Angeles OPPOSITION: (Verified7/2/15) None received ASSEMBLY FLOOR: 74-0, 5/22/15 AYES: Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Wilk, Williams, Wood, Atkins NO VOTE RECORDED: Alejo, Chu, O'Donnell, Olsen, Waldron, Weber Prepared by:Brian Weinberger / GOV. & F. / (916) 651-4119 7/2/15 11:39:13 AB 1191 Page 5 **** END ****