California Legislature—2015–16 Regular Session

Assembly BillNo. 1804


Introduced by Assembly Member Melendez

February 8, 2016


An act to amend Section 66001 of the Government Code, relating to development fees.

LEGISLATIVE COUNSEL’S DIGEST

AB 1804, as introduced, Melendez. Land use: development fees.

The Mitigation Fee Act requires a local agency that establishes, increases, or imposes a fee as a condition of approval of a development project to, among other things, determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed.

This bill would make nonsubstantive changes to that provision.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 66001 of the Government Code is
2amended to read:

3

66001.  

(a) In any action establishing, increasing, or imposing
4a fee as a condition of approval of a development project by a local
5agency, the local agency shall do all of the following:

6(1) Identify the purpose of the fee.

7(2) Identify the use to which the fee is to be put. If the use is
8financing public facilities, the facilities shall be identified. That
9identification may, but need not, be made by reference to a capital
P2    1improvement plan as specified in Section 65403 or 66002, may
2be made in applicable general or specific plan requirements, or
3may be made in other public documents that identify the public
4facilities for which the fee is charged.

5(3) Determine how there is a reasonable relationship between
6thebegin delete fee’s use andend delete the type of development project on which the fee
7isbegin delete imposed.end deletebegin insert imposed and the fee’s use.end insert

8(4) Determine how there is a reasonable relationship between
9the need for the public facility and the type of development project
10on which the fee is imposed.

11(b) In any action imposing a fee as a condition of approval of
12a development project by a local agency, the local agency shall
13determine how there is a reasonable relationship between the
14amount of the fee and the cost of the public facility or portion of
15the public facility attributable to the development on which the
16fee is imposed.

17(c) Upon receipt of a fee subject to this section, the local agency
18shall deposit, invest, account for, and expend the fees pursuant to
19Section 66006.

20(d) (1) For the fifth fiscal year following the first deposit into
21the account or fund, and every five years thereafter, the local
22agency shall make all of the following findings with respect to that
23portion of the account or fund remaining unexpended, whether
24committed or uncommitted:

25(A) Identify the purpose to which the fee is to be put.

26(B) Demonstrate a reasonable relationship between the fee and
27the purpose for which it is charged.

28(C) Identify all sources and amounts of funding anticipated to
29complete financing in incomplete improvements identified in
30paragraph (2) of subdivision (a).

31(D) Designate the approximate dates on which the funding
32referred to in subparagraph (C) is expected to be deposited into
33the appropriate account or fund.

34(2) When findings are required by this subdivision, they shall
35be made in connection with the public information required by
36subdivision (b) of Section 66006. The findings required by this
37subdivision need only be made for moneys in possession of the
38local agency, and need not be made with respect to letters of credit,
39bonds, or other instruments taken to secure payment of the fee at
40a future date. If the findings are not made as required by this
P3    1subdivision, the local agency shall refund the moneys in the
2account or fund as provided in subdivision (e).

3(e) Except as provided in subdivision (f), when sufficient funds
4have been collected, as determined pursuant to subparagraph (F)
5of paragraph (1) of subdivision (b) of Section 66006, to complete
6financing on incomplete public improvements identified in
7paragraph (2) of subdivision (a), and the public improvements
8remain incomplete, the local agency shall identify, within 180 days
9of the determination that sufficient funds have been collected, an
10approximate date by which the construction of the public
11 improvement will be commenced, or shall refund to the then
12current record owner or owners of the lots or units, as identified
13on the last equalized assessment roll, of the development project
14or projects on a prorated basis, the unexpended portion of the fee,
15and any interest accrued thereon. By means consistent with the
16intent of this section, a local agency may refund the unexpended
17revenues by direct payment, by providing a temporary suspension
18of fees, or by any other reasonable means. The determination by
19the governing body of the local agency of the means by which
20those revenues are to be refunded is a legislative act.

21(f) If the administrative costs of refunding unexpended revenues
22pursuant to subdivision (e) exceed the amount to be refunded, the
23local agency, after a public hearing, notice of which has been
24published pursuant to Section 6061 and posted in three prominent
25places within the area of the development project, may determine
26that the revenues shall be allocated for some other purpose for
27which fees are collected subject to this chapter and which serves
28the project on which the fee was originally imposed.

29(g) A fee shall not include the costs attributable to existing
30deficiencies in public facilities, but may include the costs
31attributable to the increased demand for public facilities reasonably
32related to the development project in order to (1) refurbish existing
33facilities to maintain the existing level of service or (2) achieve an
34adopted level of service that is consistent with the general plan.



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