Amended in Senate August 15, 2016

Amended in Assembly April 21, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2280

Introduced by Assembly Member Ridley-Thomas

February 18, 2016

An act to add Section begin delete 50964 to the Health and Safety Code, end delete begin insert 50474.22 to the Government Code, end insert relating to begin delete housing. end delete begin insert rental companies, and declaring the urgency thereof, to take effect immediately. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2280, as amended, Ridley-Thomas. begin delete California Housing Finance Agency: program eligibility requirements: changes. end delete begin insert Rental companies: customer facility charge. end insert

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Existing law authorizes airports to require rental companies to collect a customer facility charge for specified purposes and requires airports to provide certain audits and reports regarding those fees to specified committees of the Legislature.

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This bill would authorize the Los Angeles International Airport to charge those same fees for additional specified purposes and would require that airport to provide certain audits and reports regarding those fees to specified committees of the Legislature.

end insert begin insert

This bill would make legislative findings and declarations as to the necessity of a special statute for the Los Angeles International Airport.

end insert begin insert

This bill would declare that it is to take effect immediately as an urgency statute.

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Existing law creates the California Housing Finance Agency, which is administered by a board of directors and which is supervised on a day-to-day basis by an executive director. Existing law provides that the primary purpose of the agency is to meet the housing needs of persons and families of low to moderate income. Existing law authorizes the agency to make loans to housing sponsors for housing developments and to qualified mortgage lenders, among others.

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This bill would require the agency, within 5 business days of making a change to the eligibility requirements for a housing or lending program that the agency administrates, to provide a lender or other party participating in the program notice of the change unless providing that notice within 5 business days would impose an undue burden on the agency. The bill would authorize the notice to be provided by a program bulletin.

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Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation: no. Fiscal committee:  begin delete yes end delete begin insert no end insert . State-mandated local program: no.

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

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begin insert SECTION 1. end insert   

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begin insert Section 50474.22 is added to the end insert begin insert Government
Code end insert begin insert , to read: end insert

begin insert

begin insert 50474.22. end insert   

(a) For purposes of this section, “customer facility
charge” means any fee, including an alternative fee, required by
the Los Angeles International Airport to be collected by a rental
company from a renter for any of the following purposes:

(1) To finance, design, construct, or otherwise improve
consolidated airport vehicle rental facilities.

(2) To finance, design, construct, operate, maintain, or otherwise
improve common-use transportation systems that move passengers
between airport terminals and those consolidated vehicle rental
facilities, and acquire vehicles for use in that system.

(3) To finance, design, construct, or otherwise improve terminal
modifications solely to accommodate and provide customer access
to common-use transportation systems. The fees designated as a
customer facility charge shall not otherwise be used to pay for
terminal expansion, gate expansion, runway expansion, changes
in hours of operation, or changes in the number of flights arriving
or departing from the airport.

(b) The aggregate amount to be collected shall not exceed the
reasonable costs, as determined by an audit by an independent
auditor paid for by the airport, to finance, design, construct,
operate, maintain, or otherwise improve, as applicable, those
facilities, systems, and modifications. The auditor shall
independently examine and substantiate the necessity for, and the
amount of, the customer facility charge, including whether the
airport’s actual or projected costs are supported and justified,
any steps the airport may take to limit costs, potential alternatives
for meeting the airport’s revenue needs other than the collection
of the fee, and whether and to what extent rental companies or
other businesses or individuals using the facility or common-use
transportation system may pay for the costs associated with these
facilities and systems apart from the fee from rental customers, or
whether the airport did not comply with any provision of this
section. Copies of the audit shall be provided to the Assembly and
Senate Committees on Judiciary, the Assembly Committee on
Transportation, and the Senate Committee on Transportation and
Housing and shall be posted on the airport’s Internet Web site. In
the case of a customer facility charge for a common-use
transportation system, the audit also shall consider the reasonable
costs of providing the transit system or busing network pursuant
to paragraph (1) of subdivision (a). Any audit required by this
subdivision may be included as a part of an audit of an airport’s
finances.

(c) The authorization under this section for an airport to impose
a customer facility charge shall become inoperative when bonds,
capital contributions, availability payment contracts, lease
agreements, or other forms for financing are paid or reimbursed.
The maximum term for financing under this section shall not exceed
35 years.

(d) This section shall not apply to any fee, including an
alternative fee, required by an airport other than the Los Angeles
International Airport to be collected by a rental company from a
renter.

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begin insert SEC. 2. end insert   

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The Legislature finds and declares that a special law
is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because of the unique circumstances and operations
of the Los Angeles International Airport.

end insert

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begin insert SEC. 3. end insert   

end insert begin insert

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

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In order to efficiently address pressing public safety concerns
at the Los Angeles Inernational Airport by providing necessary
financing tools, it is necessary that this act take effect immediately.

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SECTION 1.  

It is the intent of the Legislature in enacting this
act to do all of the following:

(a) Promote home ownership in California by establishing
stability and predictability in the programs administered by the
California Housing Finance Agency.

(b) To improve the confidence of prospective home buyers in
government programs designed to assist them in the complex
process of buying a home and the ability of prospective home
buyers to purchase a home.

(c) To ensure that prospective home buyers who are in the
process of purchasing a home through a program administered by
the California Housing Finance Agency receive notice as soon as
practically possible regarding changes in eligibility requirements,
so they are best positioned to secure the financing that they need
and deserve.

SEC. 2.  

Section 50964 is added to the Health and Safety Code,
to read:

50964.  

The agency shall, within five business days of making
a change to the eligibility requirements for a housing or lending
program that the agency administers, however that program may
be characterized, including, but not limited to, the California
Homebuyer’s Downpayment Assistance Program (Chapter 11
(commencing with Section 51500)) and the Mortgage Credit
Certificate Program (Chapter 3.5 (commencing with Section 50172)
of Part 1), provide a lender or other party participating in the
program notice of the change unless providing that notice within
five business days would impose an undue burden on the agency.
The notification may be provided by means of a program bulletin.

end delete