BILL NUMBER: AB 2951 CHAPTERED
BILL TEXT
CHAPTER 866
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2006
APPROVED BY GOVERNOR SEPTEMBER 30, 2006
PASSED THE SENATE AUGUST 31, 2006
PASSED THE ASSEMBLY AUGUST 31, 2006
AMENDED IN SENATE AUGUST 28, 2006
AMENDED IN SENATE AUGUST 28, 2006
AMENDED IN SENATE AUGUST 23, 2006
AMENDED IN ASSEMBLY MAY 9, 2006
AMENDED IN ASSEMBLY MAY 1, 2006
AMENDED IN ASSEMBLY APRIL 17, 2006
AMENDED IN ASSEMBLY APRIL 3, 2006
INTRODUCED BY Assembly Member Goldberg
FEBRUARY 24, 2006
An act to amend Section 54999.1 of, to add Section 54999.7 to, and
to add and repeal Section 54999.8 of, the Government Code, relating
to local government.
LEGISLATIVE COUNSEL'S DIGEST
AB 2951, Goldberg Capital facilities fees.
(1) Existing law authorizes a public agency that provides public
utility service, as defined, to impose a capital facilities fee on
any school district, county office of education, community college
district, the California State University, the University of
California, or state agency, subject to certain restrictions.
Existing law defines the terms "capital facilities fee" or "capacity
charge" as any nondiscriminatory charge to pay the capital cost of a
public utility facility, and defines the term "nondiscriminatory" for
these purposes.
This bill would revise the definition of the term "public utility
service." It would revise the definition of the term "capital
facilities fee" to mean a nondiscriminatory connection fee, as
defined, or a nondiscriminatory capacity charge, as defined, or both.
The bill would require a public agency that provides public
utility service to only charge a public agency fees, including rates,
charges, or surcharges, for public utility service, other than
electricity or gas, that do not exceed the reasonable cost of
providing the public utility service. The bill would require that a
fee, including a rate, charge, or surcharge for any product,
commodity, or service provided to a public agency, be determined on
the basis of the same objective criteria and methodology applicable
to comparable nonpublic users, subject to specified criteria. The
bill would provide that these requirements do not apply to
impositions or increases of capital facilities fees on a school
district, county office of education, community college district, the
California State University, the University of California, or a
state agency.
The bill would, until January 1, 2010, require any judicial action
or proceeding by a public agency that seeks a refund or challenges
the validity of a fee, rate, charge, or surcharge, or increase, or
any action by a public agency to validate an ordinance, resolution,
or motion imposing or increasing any of these, to be commenced, as
specified.
The bill would require a public agency providing public utility
service to complete a cost of service study at least once every 10
years that addresses the cost of providing public utility service to
public schools, as defined, to include specified components, thus
imposing a state-mandated local program on such an agency.
(2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
(3) The bill would make specified declarations with respect to its
provisions.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 54999.1 of the Government Code is amended to
read:
54999.1. For purposes of this chapter:
(a) "Actual construction costs" includes the cost of all
activities necessary or incidental to the construction of a public
utility facility, such as financing, planning, designing, acquisition
of property or interests in property, construction, reconstruction,
and rehabilitation.
(b) "Capacity charge" means a one-time charge to recover the costs
of public utility facilities necessary to establish new or expand
existing public utility service to a public agency.
(c) (1) "Capital facilities fee" means a nondiscriminatory
connection fee, a nondiscriminatory capacity charge, or both.
"Capital facilities fee" does not include any other rate, charge, or
surcharge, or any capital component thereof.
(2) For purposes of this subdivision, "nondiscriminatory" means
that the fee does not exceed an amount determined on the basis of the
same objective criteria and methodology applicable to comparable
nonpublic users, and is not in excess of the proportionate share of
the cost of the public utility facilities of benefit to the person or
property being charged, based upon the proportionate share of use of
those facilities.
(d) "Connection fee" means a fee to recover the costs of the
physical facilities necessary to directly connect a public agency
facility to a public utility service provided by a public agency,
including, but not limited to, meters, meter boxes, and pipelines to
make the connection, and the actual cost of labor and materials for
the installation of those facilities.
(e) "Public agency" means the United States or any of its
agencies, the state or any of its agencies, the California State
University, the Regents of the University of California, a county, a
county office of education, a city, a school district, community
college district, or any other district, a public authority, or any
other political subdivision or public corporation of this state.
(f) "Public school" means the California State University, the
Regents of the University of California, a county office of
education, a school district, or a community college district.
(g) "Public utility facility" means a facility for the provision
of water, light, heat, communications, power, or garbage service, for
flood control, drainage or sanitary purposes, or sewage collection,
treatment, or disposal.
(h) "Public utility service" means service for water, light, heat,
communications, power, or garbage, or for flood control, drainage or
sanitary purposes, or sewage collection, treatment, or disposal,
provided by a public agency.
(i) "State agency" or "state" means any state office, department,
division, bureau, board, or commission.
SEC. 2. Section 54999.7 is added to the Government Code, to read:
54999.7. (a) Any public agency providing public utility service
may impose a fee, including a rate, charge, or surcharge, for any
product, commodity, or service provided to a public agency, and any
public agency receiving service from a public agency providing public
utility service shall pay that fee so imposed. Such a fee for public
utility service, other than electricity or gas, shall not exceed the
reasonable cost of providing the public utility service.
(b) A fee, including a rate, charge, or surcharge, for any
product, commodity, or service provided to a public agency, shall be
determined on the basis of the same objective criteria and
methodology applicable to comparable nonpublic users, based on
customer classes established in consideration of service
characteristics, demand patterns, and other relevant factors.
(c) A public agency providing public utility service shall
complete a cost of service study at least once every 10 years that
addresses the cost of providing public utility service to public
schools. The study shall describe the methodology for the
determination of cost responsibility, which may be identified by
reference to appropriate industry ratemaking principles, including
guidance associated with designing and developing water rates and
charges issued by the American Water Works Association or guidance
associated with other comparable industry principles recognized by
public agencies providing public utility service.
(d) In addition to other notices required pursuant to state law or
local ordinance or rule, whenever a public agency that provides
public utility service holds a public meeting to establish or
increase any rate, charge, surcharge, or fee, that public agency
shall provide a written notice of the meeting not less than 60 days
prior to the date of the public meeting to any public agency that has
filed a written request for such a notice with either the clerk of
the governing body or with any other person designated by the
governing body to receive these requests.
(e) Upon request of any affected public agency made not less than
30 days prior to the date of the public meeting to establish or
increase any rate, charge, surcharge, or fee, a public agency that
provides public utility service shall provide the affected public
agency with the data and proposed methodology for establishing or
increasing the rate, charge, surcharge, or fee. The data and proposed
methodology may be provided during a meeting of staff or other
representatives of each agency.
(f) This section shall not apply to impositions or increases of
capital facilities fees subject to Section 54999.3.
SEC. 3. Section 54999.8 is added to the Government Code, to read:
54999.8. (a) Any judicial action or proceeding by a public agency
that seeks a refund of a fee, rate, charge, or surcharge, or
increase in any of those costs, or that challenges the validity of a
fee, rate, charge, or surcharge, or increase, imposed on or after
January 1, 2007, pursuant to this chapter, shall be commenced within
120 days of the effective date of the imposition of the fee, rate,
charge, or surcharge, or increase.
(b) Any action by a public agency under this chapter to validate
an ordinance, resolution, or motion imposing or increasing a fee,
rate, charge, or surcharge shall be in accordance with Chapter 9
(commencing with Section 860) of Title 10 of Part 2 of the Code of
Civil Procedure. However, no action by a public agency imposing or
increasing the fee, rate, charge, or surcharge shall be commenced any
earlier than 120 days from the effective date of the imposition of
the fee, rate, charge, surcharge, or increase.
(c) In any judicial action or proceeding brought pursuant to this
section, the public agency imposing or increasing the fee, rate,
charge, or surcharge shall have the burden of showing that it was
established pursuant to Section 54999.3 or Section 54999.7.
(d) This section shall remain in effect only until January 1,
2010, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2010, deletes or extends
that date.
SEC. 4. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.
SEC. 5. The amendments made to Section 54999.1 of, and the
addition of Sections 54999.7 and 54999.8 to, the Government Code by
this act are not intended to affect any litigation involving public
utility services provided prior to January 1, 2007, brought prior to
or subsequent to that date. Nothing in the legislative history of the
amendments or additions made by this act should be construed as any
indication of the meaning of the law as it existed prior to the
effective date of the amendments and additions made by this act.