BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  SB 1019|
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                                 THIRD READING


          Bill No:  SB 1019
          Author:   Correa (D), et al
          Amended:  4/29/10
          Vote:     21

           
           SENATE LOCAL GOVERNMENT COMMITTEE  : 5-0, 04/07/10
          AYES: Cox, Aanestad, Kehoe, DeSaulnier, Price

           SENATE APPROPRIATIONS COMMITTEE  :  9-0, 4/26/10
          AYES:  Kehoe, Cox, Alquist, Corbett, Denham, Leno, Price,  
            Wolk, Yee
          NO VOTE RECORDED:  Walters, Wyland


           SUBJECT  :    Subdivisions: release of performance security

           SOURCE  :     Author


           DIGEST  :    This bill extends the January 1, 2011 sunset  
          date to January 1, 2016 for the procedures for counties and  
          cities to release subdivision performance securities.

           ANALYSIS  :    The Subdivision Map Act controls how counties  
          and cities approve the conversion of large landholdings  
          into separate parcels.  Counties and cities commonly impose  
          conditions when they approve proposed subdivisions, often  
          requiring the subdividers to install public works such as  
          street lights, curbs, and sewers.  Sometimes subdividers  
          must provide assurances that the work will be completed,  
          including performance bonds, deposits, credit instruments,  
          liens, or other property interests.  Until 2006, counties  
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          and cities followed their own procedures in deciding when  
          to release these securities.

          Existing law, until January 1, 2011, provides for uniform  
          procedures and time limits by which counties and cities  
          must either release the securities provided for subdivision  
          conditions or tell the subdividers about the incomplete  
          performance or unsatisfactory work (AB 1460 [Umberg],  
          Chapter 411, Statutes of 2005).  

          This bill extends the sunset date from January 1, 2011 to  
          January 1, 2016 for the procedures for counties and cities  
          to release subdivision performance securities.

           Comments
           
          Before the 2005 Umberg bill, counties and cities created  
          their own procedures for releasing subdivision performance  
          securities, resulting in a patchwork of local practices.   
          The uniform procedures appear to have worked without  
          creating problems for local officials and without resulting  
          in local claims for state-mandated costs.  Since the 2005  
          Umberg bill, there are no reported problems with the  
          statutory procedures for releasing subdivision performance  
          securities, nor have counties and cities filed any claims  
          for state-mandated local costs.  Builders want legislators  
          to make the statute permanent.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee analysis:

                          Fiscal Impact (in thousands)

           Major Provisions                2010-11     2011-12     
           2012-13   Fund  

          Mandate             potential reimbursable mandate  
          costsGeneral

           SUPPORT  :   (Verified  4/29/10)

          California Building Industry Association







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          AGB:do  4/29/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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