California 2021 2021-2022 Regular Session

California Assembly Bill AB2536 Introduced / Bill

Filed 02/17/2022

                    CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2536Introduced by Assembly Member GraysonFebruary 17, 2022 An act to add Section 66016.6 to the Government Code, relating to land use. LEGISLATIVE COUNSEL'S DIGESTAB 2536, as introduced, Grayson. Development fees: connection fees and capacity charges: studies.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 a reasonable relationship between the fees use and the type of development project on which the fee is imposed. Existing law requires a local agency that conducts an impact fee nexus study to follow certain standards and practices, as specified. Existing law also requires a local agency to hold at least one open and public meeting prior to levying a new fee or service charge, as specified.This bill would, on and after January 1, 2023, require a local agency that imposes fees for water connections or sewer connections, or imposes capacity charges, as provided, and that conducts a study to support the estimate of the reasonable cost of providing the service to follow certain standards and practices, as defined and specified.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NO  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 66016.6 is added to the Government Code, to read:66016.6. (a) On and after January 1, 2023, a local agency that imposes a fee or capacity charge pursuant to Section 66013 that conducts a study to support the estimate of the reasonable cost of providing the service shall follow all of the following standards and practices:(1) Before the adoption of a fee or capacity charge, a study to support the estimate of the reasonable cost of providing the service shall be adopted. (2) When applicable, a study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate.(3) A study shall include information that supports the local agencys actions, as required by subdivision (a) of Section 66001.(4) If a study supports the increase of an existing fee or capacity charge, the local agency shall review the assumptions of the study supporting the original fee or capacity charge and evaluate the amount of fees or capacity charges collected under the original fee or capacity charge.(5) All studies shall be adopted at a public hearing with at least 30 days notice, and the local agency shall notify any member of the public that requests notice of intent to begin a study of the date of the hearing.(6) Studies shall be updated at least every eight years, from the period beginning on January 1, 2023.(b) For purposes of this section:(1) Capacity charge has the same meaning as defined in Section 66013.(2) Fee has the same meaning as defined in Section 66013.(3) Local agency has the same meaning as defined in Section 66013.(4) Public facility has the same meaning as defined in Section 66000.(c) Nothing in this section shall be construed to relieve a local agency of the requirement that it comply with Chapter 5 (commencing with Section 66000), the California Constitution, or applicable case law when calculating the amount of a fee.

 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2536Introduced by Assembly Member GraysonFebruary 17, 2022 An act to add Section 66016.6 to the Government Code, relating to land use. LEGISLATIVE COUNSEL'S DIGESTAB 2536, as introduced, Grayson. Development fees: connection fees and capacity charges: studies.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 a reasonable relationship between the fees use and the type of development project on which the fee is imposed. Existing law requires a local agency that conducts an impact fee nexus study to follow certain standards and practices, as specified. Existing law also requires a local agency to hold at least one open and public meeting prior to levying a new fee or service charge, as specified.This bill would, on and after January 1, 2023, require a local agency that imposes fees for water connections or sewer connections, or imposes capacity charges, as provided, and that conducts a study to support the estimate of the reasonable cost of providing the service to follow certain standards and practices, as defined and specified.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NO  Local Program: NO 





 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION

 Assembly Bill 

No. 2536

Introduced by Assembly Member GraysonFebruary 17, 2022

Introduced by Assembly Member Grayson
February 17, 2022

 An act to add Section 66016.6 to the Government Code, relating to land use. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 2536, as introduced, Grayson. Development fees: connection fees and capacity charges: studies.

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 a reasonable relationship between the fees use and the type of development project on which the fee is imposed. Existing law requires a local agency that conducts an impact fee nexus study to follow certain standards and practices, as specified. Existing law also requires a local agency to hold at least one open and public meeting prior to levying a new fee or service charge, as specified.This bill would, on and after January 1, 2023, require a local agency that imposes fees for water connections or sewer connections, or imposes capacity charges, as provided, and that conducts a study to support the estimate of the reasonable cost of providing the service to follow certain standards and practices, as defined and specified.

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 a reasonable relationship between the fees use and the type of development project on which the fee is imposed. Existing law requires a local agency that conducts an impact fee nexus study to follow certain standards and practices, as specified. Existing law also requires a local agency to hold at least one open and public meeting prior to levying a new fee or service charge, as specified.

This bill would, on and after January 1, 2023, require a local agency that imposes fees for water connections or sewer connections, or imposes capacity charges, as provided, and that conducts a study to support the estimate of the reasonable cost of providing the service to follow certain standards and practices, as defined and specified.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 66016.6 is added to the Government Code, to read:66016.6. (a) On and after January 1, 2023, a local agency that imposes a fee or capacity charge pursuant to Section 66013 that conducts a study to support the estimate of the reasonable cost of providing the service shall follow all of the following standards and practices:(1) Before the adoption of a fee or capacity charge, a study to support the estimate of the reasonable cost of providing the service shall be adopted. (2) When applicable, a study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate.(3) A study shall include information that supports the local agencys actions, as required by subdivision (a) of Section 66001.(4) If a study supports the increase of an existing fee or capacity charge, the local agency shall review the assumptions of the study supporting the original fee or capacity charge and evaluate the amount of fees or capacity charges collected under the original fee or capacity charge.(5) All studies shall be adopted at a public hearing with at least 30 days notice, and the local agency shall notify any member of the public that requests notice of intent to begin a study of the date of the hearing.(6) Studies shall be updated at least every eight years, from the period beginning on January 1, 2023.(b) For purposes of this section:(1) Capacity charge has the same meaning as defined in Section 66013.(2) Fee has the same meaning as defined in Section 66013.(3) Local agency has the same meaning as defined in Section 66013.(4) Public facility has the same meaning as defined in Section 66000.(c) Nothing in this section shall be construed to relieve a local agency of the requirement that it comply with Chapter 5 (commencing with Section 66000), the California Constitution, or applicable case law when calculating the amount of a fee.

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

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

SECTION 1. Section 66016.6 is added to the Government Code, to read:66016.6. (a) On and after January 1, 2023, a local agency that imposes a fee or capacity charge pursuant to Section 66013 that conducts a study to support the estimate of the reasonable cost of providing the service shall follow all of the following standards and practices:(1) Before the adoption of a fee or capacity charge, a study to support the estimate of the reasonable cost of providing the service shall be adopted. (2) When applicable, a study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate.(3) A study shall include information that supports the local agencys actions, as required by subdivision (a) of Section 66001.(4) If a study supports the increase of an existing fee or capacity charge, the local agency shall review the assumptions of the study supporting the original fee or capacity charge and evaluate the amount of fees or capacity charges collected under the original fee or capacity charge.(5) All studies shall be adopted at a public hearing with at least 30 days notice, and the local agency shall notify any member of the public that requests notice of intent to begin a study of the date of the hearing.(6) Studies shall be updated at least every eight years, from the period beginning on January 1, 2023.(b) For purposes of this section:(1) Capacity charge has the same meaning as defined in Section 66013.(2) Fee has the same meaning as defined in Section 66013.(3) Local agency has the same meaning as defined in Section 66013.(4) Public facility has the same meaning as defined in Section 66000.(c) Nothing in this section shall be construed to relieve a local agency of the requirement that it comply with Chapter 5 (commencing with Section 66000), the California Constitution, or applicable case law when calculating the amount of a fee.

SECTION 1. Section 66016.6 is added to the Government Code, to read:

### SECTION 1.

66016.6. (a) On and after January 1, 2023, a local agency that imposes a fee or capacity charge pursuant to Section 66013 that conducts a study to support the estimate of the reasonable cost of providing the service shall follow all of the following standards and practices:(1) Before the adoption of a fee or capacity charge, a study to support the estimate of the reasonable cost of providing the service shall be adopted. (2) When applicable, a study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate.(3) A study shall include information that supports the local agencys actions, as required by subdivision (a) of Section 66001.(4) If a study supports the increase of an existing fee or capacity charge, the local agency shall review the assumptions of the study supporting the original fee or capacity charge and evaluate the amount of fees or capacity charges collected under the original fee or capacity charge.(5) All studies shall be adopted at a public hearing with at least 30 days notice, and the local agency shall notify any member of the public that requests notice of intent to begin a study of the date of the hearing.(6) Studies shall be updated at least every eight years, from the period beginning on January 1, 2023.(b) For purposes of this section:(1) Capacity charge has the same meaning as defined in Section 66013.(2) Fee has the same meaning as defined in Section 66013.(3) Local agency has the same meaning as defined in Section 66013.(4) Public facility has the same meaning as defined in Section 66000.(c) Nothing in this section shall be construed to relieve a local agency of the requirement that it comply with Chapter 5 (commencing with Section 66000), the California Constitution, or applicable case law when calculating the amount of a fee.

66016.6. (a) On and after January 1, 2023, a local agency that imposes a fee or capacity charge pursuant to Section 66013 that conducts a study to support the estimate of the reasonable cost of providing the service shall follow all of the following standards and practices:(1) Before the adoption of a fee or capacity charge, a study to support the estimate of the reasonable cost of providing the service shall be adopted. (2) When applicable, a study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate.(3) A study shall include information that supports the local agencys actions, as required by subdivision (a) of Section 66001.(4) If a study supports the increase of an existing fee or capacity charge, the local agency shall review the assumptions of the study supporting the original fee or capacity charge and evaluate the amount of fees or capacity charges collected under the original fee or capacity charge.(5) All studies shall be adopted at a public hearing with at least 30 days notice, and the local agency shall notify any member of the public that requests notice of intent to begin a study of the date of the hearing.(6) Studies shall be updated at least every eight years, from the period beginning on January 1, 2023.(b) For purposes of this section:(1) Capacity charge has the same meaning as defined in Section 66013.(2) Fee has the same meaning as defined in Section 66013.(3) Local agency has the same meaning as defined in Section 66013.(4) Public facility has the same meaning as defined in Section 66000.(c) Nothing in this section shall be construed to relieve a local agency of the requirement that it comply with Chapter 5 (commencing with Section 66000), the California Constitution, or applicable case law when calculating the amount of a fee.

66016.6. (a) On and after January 1, 2023, a local agency that imposes a fee or capacity charge pursuant to Section 66013 that conducts a study to support the estimate of the reasonable cost of providing the service shall follow all of the following standards and practices:(1) Before the adoption of a fee or capacity charge, a study to support the estimate of the reasonable cost of providing the service shall be adopted. (2) When applicable, a study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate.(3) A study shall include information that supports the local agencys actions, as required by subdivision (a) of Section 66001.(4) If a study supports the increase of an existing fee or capacity charge, the local agency shall review the assumptions of the study supporting the original fee or capacity charge and evaluate the amount of fees or capacity charges collected under the original fee or capacity charge.(5) All studies shall be adopted at a public hearing with at least 30 days notice, and the local agency shall notify any member of the public that requests notice of intent to begin a study of the date of the hearing.(6) Studies shall be updated at least every eight years, from the period beginning on January 1, 2023.(b) For purposes of this section:(1) Capacity charge has the same meaning as defined in Section 66013.(2) Fee has the same meaning as defined in Section 66013.(3) Local agency has the same meaning as defined in Section 66013.(4) Public facility has the same meaning as defined in Section 66000.(c) Nothing in this section shall be construed to relieve a local agency of the requirement that it comply with Chapter 5 (commencing with Section 66000), the California Constitution, or applicable case law when calculating the amount of a fee.



66016.6. (a) On and after January 1, 2023, a local agency that imposes a fee or capacity charge pursuant to Section 66013 that conducts a study to support the estimate of the reasonable cost of providing the service shall follow all of the following standards and practices:

(1) Before the adoption of a fee or capacity charge, a study to support the estimate of the reasonable cost of providing the service shall be adopted. 

(2) When applicable, a study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate.

(3) A study shall include information that supports the local agencys actions, as required by subdivision (a) of Section 66001.

(4) If a study supports the increase of an existing fee or capacity charge, the local agency shall review the assumptions of the study supporting the original fee or capacity charge and evaluate the amount of fees or capacity charges collected under the original fee or capacity charge.

(5) All studies shall be adopted at a public hearing with at least 30 days notice, and the local agency shall notify any member of the public that requests notice of intent to begin a study of the date of the hearing.

(6) Studies shall be updated at least every eight years, from the period beginning on January 1, 2023.

(b) For purposes of this section:

(1) Capacity charge has the same meaning as defined in Section 66013.

(2) Fee has the same meaning as defined in Section 66013.

(3) Local agency has the same meaning as defined in Section 66013.

(4) Public facility has the same meaning as defined in Section 66000.

(c) Nothing in this section shall be construed to relieve a local agency of the requirement that it comply with Chapter 5 (commencing with Section 66000), the California Constitution, or applicable case law when calculating the amount of a fee.