BILL ANALYSIS Ó
AB 1191
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CONCURRENCE IN SENATE AMENDMENTS
AB
1191 (Nazarian)
As Amended June 24, 2015
Majority vote
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|ASSEMBLY: | 74-0 | (May 22, |SENATE: | 38-0 | (July 16, 2015) |
| | |2015) | | | |
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Original Committee Reference: L. GOV.
SUMMARY: Allows the City of Los Angeles to spend proceeds from
accrued interest on fee revenues collected pursuant to the
Quimby Act for specified purposes.
The Senate amendments:
1)Allow a city with a population of at least three million (Los
Angeles) 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
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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)Sunset the provisions contained in 1) above, on January 1,
2021, on which date that authority will be automatically
repealed.
AS PASSED BY THE ASSEMBLY, this bill:
1)Defined 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)Stated that the addition of the language as specified in 1)
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.
FISCAL EFFECT: None
COMMENTS:
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1)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 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
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fees were paid cannot have less than three acres per 1,000
members;
c) The legislative body must hold a public hearing before
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 AB 1359.
2)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,
and authorizes the City of Los Angeles to commit interest
accrued on or before January 1, 2016, without regard to the
date the fee was collected, and to be used outside the
subdivision for which the fees were collected. In order to
use the interest in this manner, the city must hold a public
hearing, and use the interest to develop new, or rehabilitate
existing, neighborhood or community parks or recreational
facilities within the city. This authority for the City of
Los Angeles will sunset January 1, 2021, on which date the
authority will be automatically repealed.
This bill also clarifies that the treatment of interest income
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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.
3)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.
This bill 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 million to $20 million in untapped Quimby
revenue for the City of Los Angeles.
4)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.
5)Arguments in Opposition. None on file.
Analysis Prepared by:
Debbie Michel / L. GOV. / (916) 319-3958 FN:
0001148
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