California Assembly Bill AB2428

California 2021-2022 Regular Session

• Introduced: 2/17/22
• Refer: 3/3/22

Caption

Mitigation Fee Act: fees for improvements: timeline for expenditure.

Impact

The implementation of AB 2428 will affect local government processes, necessitating changes in how fees are managed and utilized within the scope of development projects. By establishing a clear timeline for the expenditure of collected fees, the bill seeks to enhance accountability and ensure that the funds are used effectively for the intended public improvements. This could lead to more rapid advancements in local infrastructure and projects that are crucial for community development.

Summary

Assembly Bill 2428, introduced by Assembly Member Ramos, amends the Mitigation Fee Act, specifically addressing how local agencies handle fees for improvements associated with development projects. The legislation mandates that local agencies requiring such fees will deposit them into an escrow account and stipulates that these funds must be expended within five years of the deposit. If the fees are not used within this timeframe, they must be returned to the applicant who originally deposited them. This change aims to ensure more efficient use of development fees and encourages timely project completion.

Contention

While proponents of the bill see it as a way to streamline the process of funding public improvements, there may be concerns regarding the implications for local agencies, especially those with limited resources. The requirement to return unused fees could potentially strain budgets and discourage local governments from implementing robust fee structures. Furthermore, by categorizing this issue as a matter of statewide concern, the bill limits the discretion cities might otherwise have to tailor their local fee structures to suit specific community needs.