| 1 | | - | Assembly Bill No. 2536 CHAPTER 128 An act to amend Section 66016.5 of, and to add Section 66016.6 to, the Government Code, relating to land use. [ Approved by Governor July 19, 2022. Filed with Secretary of State July 19, 2022. ] LEGISLATIVE COUNSEL'S DIGESTAB 2536, Grayson. Development fees: impact fee nexus studies: connection fees and capacity charges.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 require a local agency, prior to levying a new fee or capacity charge or approving an increase in an existing fee or capacity charge, to evaluate the amount of the fee or capacity charge. The bill would require the evaluation to include evidence to support that the fee or capacity charge does not exceed the estimated reasonable cost of providing service, as specified. The bill would require all information constituting the evaluation to be made publicly available at least 14 days prior to a specified meeting.Existing law requires a local agency that conducts an impact fee nexus study to follow specified standards and practices. Existing law defines local agency for these purposes.This bill would recast these provisions to apply to a city, county, or special district that conducts an impact fee nexus study.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 66016.5 of the Government Code is amended to read:66016.5. (a) On and after January 1, 2022, a city, county, or special district that conducts an impact fee nexus study shall follow all of the following standards and practices:(1) Before the adoption of an associated development fee, an impact fee nexus study shall be adopted.(2) When applicable, the nexus 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 nexus study shall include information that supports the citys, countys, or special districts actions, as required by subdivision (a) of Section 66001.(4) If a nexus study supports the increase of an existing fee, the city, county, or special district shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee.(5) (A) A nexus study adopted after July 1, 2022, shall calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development. A city, county, or special district that imposes a fee proportionately to the square footage of the proposed units of the development shall be deemed to have used a valid method to establish a reasonable relationship between the fee charged and the burden posed by the development.(B) A nexus study is not required to comply with subparagraph (A) if the city, county, or special district makes a finding that includes all of the following:(i) An explanation as to why square footage is not appropriate metric to calculate fees imposed on housing development project.(ii) An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development.(iii) That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.(C) This paragraph does not prohibit an agency from establishing different fees for different types of developments.(6) Large jurisdictions shall adopt a capital improvement plan as a part of the nexus study.(7) All studies shall be adopted at a public hearing with at least 30 days notice, and the city, county, or special district shall notify any member of the public that requests notice of intent to begin an impact fee nexus study of the date of the hearing.(8) Studies shall be updated at least every eight years, from the period beginning on January 1, 2022.(9) The city, county, or special district may use the impact fee nexus study template developed by the Department of Housing and Community Development pursuant to Section 50466.5 of the Health and Safety Code.(b) This section does not apply to any fees or charges pursuant to Section 66013.(c) For purposes of this section:(1) Development fee has the same meaning as defined in subdivision (b) of Section 66000.(2) Large jurisdiction has the same meaning as defined in subdivision (d) of Section 53559.1 of the Health and Safety Code.(3) Public facility has the same meaning as defined in subdivision (d) of Section 66000.(d) Nothing in this section shall be construed to relieve a city, county, or special district 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.SEC. 2. Section 66016.6 is added to the Government Code, to read:66016.6. (a) Prior to levying a new fee or capacity charge, a local agency shall evaluate the amount of the fee or capacity charge. The evaluation shall include evidence to support that the fee or capacity charge does not exceed the estimated reasonable cost of providing service, in accordance with Section 66013.(b) All information constituting the evaluation shall be made publicly available at least 14 days prior to a meeting held in accordance with subdivision (a) of Section 66016.(c) 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.(d) Nothing in this section shall be construed to relieve a local agency of the requirement that it comply with Chapter 7 (commencing with Section 66012), the California Constitution, or applicable case law when calculating the amount of a fee. |
|---|
| 1 | + | Enrolled July 01, 2022 Passed IN Senate June 30, 2022 Passed IN Assembly May 16, 2022 Amended IN Assembly April 26, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2536Introduced by Assembly Member GraysonFebruary 17, 2022 An act to amend Section 66016.5 of, and to add Section 66016.6 to, the Government Code, relating to land use. LEGISLATIVE COUNSEL'S DIGESTAB 2536, Grayson. Development fees: impact fee nexus studies: connection fees and capacity charges.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 require a local agency, prior to levying a new fee or capacity charge or approving an increase in an existing fee or capacity charge, to evaluate the amount of the fee or capacity charge. The bill would require the evaluation to include evidence to support that the fee or capacity charge does not exceed the estimated reasonable cost of providing service, as specified. The bill would require all information constituting the evaluation to be made publicly available at least 14 days prior to a specified meeting.Existing law requires a local agency that conducts an impact fee nexus study to follow specified standards and practices. Existing law defines local agency for these purposes.This bill would recast these provisions to apply to a city, county, or special district that conducts an impact fee nexus study.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 66016.5 of the Government Code is amended to read:66016.5. (a) On and after January 1, 2022, a city, county, or special district that conducts an impact fee nexus study shall follow all of the following standards and practices:(1) Before the adoption of an associated development fee, an impact fee nexus study shall be adopted.(2) When applicable, the nexus 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 nexus study shall include information that supports the citys, countys, or special districts actions, as required by subdivision (a) of Section 66001.(4) If a nexus study supports the increase of an existing fee, the city, county, or special district shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee.(5) (A) A nexus study adopted after July 1, 2022, shall calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development. A city, county, or special district that imposes a fee proportionately to the square footage of the proposed units of the development shall be deemed to have used a valid method to establish a reasonable relationship between the fee charged and the burden posed by the development.(B) A nexus study is not required to comply with subparagraph (A) if the city, county, or special district makes a finding that includes all of the following:(i) An explanation as to why square footage is not appropriate metric to calculate fees imposed on housing development project.(ii) An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development.(iii) That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.(C) This paragraph does not prohibit an agency from establishing different fees for different types of developments.(6) Large jurisdictions shall adopt a capital improvement plan as a part of the nexus study.(7) All studies shall be adopted at a public hearing with at least 30 days notice, and the city, county, or special district shall notify any member of the public that requests notice of intent to begin an impact fee nexus study of the date of the hearing.(8) Studies shall be updated at least every eight years, from the period beginning on January 1, 2022.(9) The city, county, or special district may use the impact fee nexus study template developed by the Department of Housing and Community Development pursuant to Section 50466.5 of the Health and Safety Code.(b) This section does not apply to any fees or charges pursuant to Section 66013.(c) For purposes of this section:(1) Development fee has the same meaning as defined in subdivision (b) of Section 66000.(2) Large jurisdiction has the same meaning as defined in subdivision (d) of Section 53559.1 of the Health and Safety Code.(3) Public facility has the same meaning as defined in subdivision (d) of Section 66000.(d) Nothing in this section shall be construed to relieve a city, county, or special district 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.SEC. 2. Section 66016.6 is added to the Government Code, to read:66016.6. (a) Prior to levying a new fee or capacity charge, a local agency shall evaluate the amount of the fee or capacity charge. The evaluation shall include evidence to support that the fee or capacity charge does not exceed the estimated reasonable cost of providing service, in accordance with Section 66013.(b) All information constituting the evaluation shall be made publicly available at least 14 days prior to a meeting held in accordance with subdivision (a) of Section 66016.(c) 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.(d) Nothing in this section shall be construed to relieve a local agency of the requirement that it comply with Chapter 7 (commencing with Section 66012), the California Constitution, or applicable case law when calculating the amount of a fee. |
|---|
| 14 | 24 | | |
|---|
| 15 | 25 | | LEGISLATIVE COUNSEL'S DIGEST |
|---|
| 16 | 26 | | |
|---|
| 17 | 27 | | ## LEGISLATIVE COUNSEL'S DIGEST |
|---|
| 18 | 28 | | |
|---|
| 19 | 29 | | AB 2536, Grayson. Development fees: impact fee nexus studies: connection fees and capacity charges. |
|---|
| 20 | 30 | | |
|---|
| 21 | 31 | | 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 require a local agency, prior to levying a new fee or capacity charge or approving an increase in an existing fee or capacity charge, to evaluate the amount of the fee or capacity charge. The bill would require the evaluation to include evidence to support that the fee or capacity charge does not exceed the estimated reasonable cost of providing service, as specified. The bill would require all information constituting the evaluation to be made publicly available at least 14 days prior to a specified meeting.Existing law requires a local agency that conducts an impact fee nexus study to follow specified standards and practices. Existing law defines local agency for these purposes.This bill would recast these provisions to apply to a city, county, or special district that conducts an impact fee nexus study. |
|---|
| 22 | 32 | | |
|---|
| 23 | 33 | | 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. |
|---|
| 24 | 34 | | |
|---|
| 25 | 35 | | This bill would require a local agency, prior to levying a new fee or capacity charge or approving an increase in an existing fee or capacity charge, to evaluate the amount of the fee or capacity charge. The bill would require the evaluation to include evidence to support that the fee or capacity charge does not exceed the estimated reasonable cost of providing service, as specified. The bill would require all information constituting the evaluation to be made publicly available at least 14 days prior to a specified meeting. |
|---|
| 26 | 36 | | |
|---|
| 27 | 37 | | Existing law requires a local agency that conducts an impact fee nexus study to follow specified standards and practices. Existing law defines local agency for these purposes. |
|---|
| 28 | 38 | | |
|---|
| 29 | 39 | | This bill would recast these provisions to apply to a city, county, or special district that conducts an impact fee nexus study. |
|---|
| 30 | 40 | | |
|---|
| 31 | 41 | | ## Digest Key |
|---|
| 32 | 42 | | |
|---|
| 33 | 43 | | ## Bill Text |
|---|
| 34 | 44 | | |
|---|
| 35 | 45 | | The people of the State of California do enact as follows:SECTION 1. Section 66016.5 of the Government Code is amended to read:66016.5. (a) On and after January 1, 2022, a city, county, or special district that conducts an impact fee nexus study shall follow all of the following standards and practices:(1) Before the adoption of an associated development fee, an impact fee nexus study shall be adopted.(2) When applicable, the nexus 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 nexus study shall include information that supports the citys, countys, or special districts actions, as required by subdivision (a) of Section 66001.(4) If a nexus study supports the increase of an existing fee, the city, county, or special district shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee.(5) (A) A nexus study adopted after July 1, 2022, shall calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development. A city, county, or special district that imposes a fee proportionately to the square footage of the proposed units of the development shall be deemed to have used a valid method to establish a reasonable relationship between the fee charged and the burden posed by the development.(B) A nexus study is not required to comply with subparagraph (A) if the city, county, or special district makes a finding that includes all of the following:(i) An explanation as to why square footage is not appropriate metric to calculate fees imposed on housing development project.(ii) An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development.(iii) That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.(C) This paragraph does not prohibit an agency from establishing different fees for different types of developments.(6) Large jurisdictions shall adopt a capital improvement plan as a part of the nexus study.(7) All studies shall be adopted at a public hearing with at least 30 days notice, and the city, county, or special district shall notify any member of the public that requests notice of intent to begin an impact fee nexus study of the date of the hearing.(8) Studies shall be updated at least every eight years, from the period beginning on January 1, 2022.(9) The city, county, or special district may use the impact fee nexus study template developed by the Department of Housing and Community Development pursuant to Section 50466.5 of the Health and Safety Code.(b) This section does not apply to any fees or charges pursuant to Section 66013.(c) For purposes of this section:(1) Development fee has the same meaning as defined in subdivision (b) of Section 66000.(2) Large jurisdiction has the same meaning as defined in subdivision (d) of Section 53559.1 of the Health and Safety Code.(3) Public facility has the same meaning as defined in subdivision (d) of Section 66000.(d) Nothing in this section shall be construed to relieve a city, county, or special district 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.SEC. 2. Section 66016.6 is added to the Government Code, to read:66016.6. (a) Prior to levying a new fee or capacity charge, a local agency shall evaluate the amount of the fee or capacity charge. The evaluation shall include evidence to support that the fee or capacity charge does not exceed the estimated reasonable cost of providing service, in accordance with Section 66013.(b) All information constituting the evaluation shall be made publicly available at least 14 days prior to a meeting held in accordance with subdivision (a) of Section 66016.(c) 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.(d) Nothing in this section shall be construed to relieve a local agency of the requirement that it comply with Chapter 7 (commencing with Section 66012), the California Constitution, or applicable case law when calculating the amount of a fee. |
|---|
| 36 | 46 | | |
|---|
| 37 | 47 | | The people of the State of California do enact as follows: |
|---|
| 38 | 48 | | |
|---|
| 39 | 49 | | ## The people of the State of California do enact as follows: |
|---|
| 40 | 50 | | |
|---|
| 41 | 51 | | SECTION 1. Section 66016.5 of the Government Code is amended to read:66016.5. (a) On and after January 1, 2022, a city, county, or special district that conducts an impact fee nexus study shall follow all of the following standards and practices:(1) Before the adoption of an associated development fee, an impact fee nexus study shall be adopted.(2) When applicable, the nexus 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 nexus study shall include information that supports the citys, countys, or special districts actions, as required by subdivision (a) of Section 66001.(4) If a nexus study supports the increase of an existing fee, the city, county, or special district shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee.(5) (A) A nexus study adopted after July 1, 2022, shall calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development. A city, county, or special district that imposes a fee proportionately to the square footage of the proposed units of the development shall be deemed to have used a valid method to establish a reasonable relationship between the fee charged and the burden posed by the development.(B) A nexus study is not required to comply with subparagraph (A) if the city, county, or special district makes a finding that includes all of the following:(i) An explanation as to why square footage is not appropriate metric to calculate fees imposed on housing development project.(ii) An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development.(iii) That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.(C) This paragraph does not prohibit an agency from establishing different fees for different types of developments.(6) Large jurisdictions shall adopt a capital improvement plan as a part of the nexus study.(7) All studies shall be adopted at a public hearing with at least 30 days notice, and the city, county, or special district shall notify any member of the public that requests notice of intent to begin an impact fee nexus study of the date of the hearing.(8) Studies shall be updated at least every eight years, from the period beginning on January 1, 2022.(9) The city, county, or special district may use the impact fee nexus study template developed by the Department of Housing and Community Development pursuant to Section 50466.5 of the Health and Safety Code.(b) This section does not apply to any fees or charges pursuant to Section 66013.(c) For purposes of this section:(1) Development fee has the same meaning as defined in subdivision (b) of Section 66000.(2) Large jurisdiction has the same meaning as defined in subdivision (d) of Section 53559.1 of the Health and Safety Code.(3) Public facility has the same meaning as defined in subdivision (d) of Section 66000.(d) Nothing in this section shall be construed to relieve a city, county, or special district 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. |
|---|
| 42 | 52 | | |
|---|
| 43 | 53 | | SECTION 1. Section 66016.5 of the Government Code is amended to read: |
|---|
| 44 | 54 | | |
|---|
| 45 | 55 | | ### SECTION 1. |
|---|
| 46 | 56 | | |
|---|
| 47 | 57 | | 66016.5. (a) On and after January 1, 2022, a city, county, or special district that conducts an impact fee nexus study shall follow all of the following standards and practices:(1) Before the adoption of an associated development fee, an impact fee nexus study shall be adopted.(2) When applicable, the nexus 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 nexus study shall include information that supports the citys, countys, or special districts actions, as required by subdivision (a) of Section 66001.(4) If a nexus study supports the increase of an existing fee, the city, county, or special district shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee.(5) (A) A nexus study adopted after July 1, 2022, shall calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development. A city, county, or special district that imposes a fee proportionately to the square footage of the proposed units of the development shall be deemed to have used a valid method to establish a reasonable relationship between the fee charged and the burden posed by the development.(B) A nexus study is not required to comply with subparagraph (A) if the city, county, or special district makes a finding that includes all of the following:(i) An explanation as to why square footage is not appropriate metric to calculate fees imposed on housing development project.(ii) An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development.(iii) That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.(C) This paragraph does not prohibit an agency from establishing different fees for different types of developments.(6) Large jurisdictions shall adopt a capital improvement plan as a part of the nexus study.(7) All studies shall be adopted at a public hearing with at least 30 days notice, and the city, county, or special district shall notify any member of the public that requests notice of intent to begin an impact fee nexus study of the date of the hearing.(8) Studies shall be updated at least every eight years, from the period beginning on January 1, 2022.(9) The city, county, or special district may use the impact fee nexus study template developed by the Department of Housing and Community Development pursuant to Section 50466.5 of the Health and Safety Code.(b) This section does not apply to any fees or charges pursuant to Section 66013.(c) For purposes of this section:(1) Development fee has the same meaning as defined in subdivision (b) of Section 66000.(2) Large jurisdiction has the same meaning as defined in subdivision (d) of Section 53559.1 of the Health and Safety Code.(3) Public facility has the same meaning as defined in subdivision (d) of Section 66000.(d) Nothing in this section shall be construed to relieve a city, county, or special district 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. |
|---|
| 48 | 58 | | |
|---|
| 49 | 59 | | 66016.5. (a) On and after January 1, 2022, a city, county, or special district that conducts an impact fee nexus study shall follow all of the following standards and practices:(1) Before the adoption of an associated development fee, an impact fee nexus study shall be adopted.(2) When applicable, the nexus 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 nexus study shall include information that supports the citys, countys, or special districts actions, as required by subdivision (a) of Section 66001.(4) If a nexus study supports the increase of an existing fee, the city, county, or special district shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee.(5) (A) A nexus study adopted after July 1, 2022, shall calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development. A city, county, or special district that imposes a fee proportionately to the square footage of the proposed units of the development shall be deemed to have used a valid method to establish a reasonable relationship between the fee charged and the burden posed by the development.(B) A nexus study is not required to comply with subparagraph (A) if the city, county, or special district makes a finding that includes all of the following:(i) An explanation as to why square footage is not appropriate metric to calculate fees imposed on housing development project.(ii) An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development.(iii) That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.(C) This paragraph does not prohibit an agency from establishing different fees for different types of developments.(6) Large jurisdictions shall adopt a capital improvement plan as a part of the nexus study.(7) All studies shall be adopted at a public hearing with at least 30 days notice, and the city, county, or special district shall notify any member of the public that requests notice of intent to begin an impact fee nexus study of the date of the hearing.(8) Studies shall be updated at least every eight years, from the period beginning on January 1, 2022.(9) The city, county, or special district may use the impact fee nexus study template developed by the Department of Housing and Community Development pursuant to Section 50466.5 of the Health and Safety Code.(b) This section does not apply to any fees or charges pursuant to Section 66013.(c) For purposes of this section:(1) Development fee has the same meaning as defined in subdivision (b) of Section 66000.(2) Large jurisdiction has the same meaning as defined in subdivision (d) of Section 53559.1 of the Health and Safety Code.(3) Public facility has the same meaning as defined in subdivision (d) of Section 66000.(d) Nothing in this section shall be construed to relieve a city, county, or special district 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. |
|---|
| 50 | 60 | | |
|---|
| 51 | 61 | | 66016.5. (a) On and after January 1, 2022, a city, county, or special district that conducts an impact fee nexus study shall follow all of the following standards and practices:(1) Before the adoption of an associated development fee, an impact fee nexus study shall be adopted.(2) When applicable, the nexus 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 nexus study shall include information that supports the citys, countys, or special districts actions, as required by subdivision (a) of Section 66001.(4) If a nexus study supports the increase of an existing fee, the city, county, or special district shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee.(5) (A) A nexus study adopted after July 1, 2022, shall calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development. A city, county, or special district that imposes a fee proportionately to the square footage of the proposed units of the development shall be deemed to have used a valid method to establish a reasonable relationship between the fee charged and the burden posed by the development.(B) A nexus study is not required to comply with subparagraph (A) if the city, county, or special district makes a finding that includes all of the following:(i) An explanation as to why square footage is not appropriate metric to calculate fees imposed on housing development project.(ii) An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development.(iii) That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.(C) This paragraph does not prohibit an agency from establishing different fees for different types of developments.(6) Large jurisdictions shall adopt a capital improvement plan as a part of the nexus study.(7) All studies shall be adopted at a public hearing with at least 30 days notice, and the city, county, or special district shall notify any member of the public that requests notice of intent to begin an impact fee nexus study of the date of the hearing.(8) Studies shall be updated at least every eight years, from the period beginning on January 1, 2022.(9) The city, county, or special district may use the impact fee nexus study template developed by the Department of Housing and Community Development pursuant to Section 50466.5 of the Health and Safety Code.(b) This section does not apply to any fees or charges pursuant to Section 66013.(c) For purposes of this section:(1) Development fee has the same meaning as defined in subdivision (b) of Section 66000.(2) Large jurisdiction has the same meaning as defined in subdivision (d) of Section 53559.1 of the Health and Safety Code.(3) Public facility has the same meaning as defined in subdivision (d) of Section 66000.(d) Nothing in this section shall be construed to relieve a city, county, or special district 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. |
|---|
| 52 | 62 | | |
|---|
| 53 | 63 | | |
|---|
| 54 | 64 | | |
|---|
| 55 | 65 | | 66016.5. (a) On and after January 1, 2022, a city, county, or special district that conducts an impact fee nexus study shall follow all of the following standards and practices: |
|---|
| 56 | 66 | | |
|---|
| 57 | 67 | | (1) Before the adoption of an associated development fee, an impact fee nexus study shall be adopted. |
|---|
| 58 | 68 | | |
|---|
| 59 | 69 | | (2) When applicable, the nexus 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. |
|---|
| 60 | 70 | | |
|---|
| 61 | 71 | | (3) A nexus study shall include information that supports the citys, countys, or special districts actions, as required by subdivision (a) of Section 66001. |
|---|
| 62 | 72 | | |
|---|
| 63 | 73 | | (4) If a nexus study supports the increase of an existing fee, the city, county, or special district shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee. |
|---|
| 64 | 74 | | |
|---|
| 65 | 75 | | (5) (A) A nexus study adopted after July 1, 2022, shall calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development. A city, county, or special district that imposes a fee proportionately to the square footage of the proposed units of the development shall be deemed to have used a valid method to establish a reasonable relationship between the fee charged and the burden posed by the development. |
|---|
| 66 | 76 | | |
|---|
| 67 | 77 | | (B) A nexus study is not required to comply with subparagraph (A) if the city, county, or special district makes a finding that includes all of the following: |
|---|
| 68 | 78 | | |
|---|
| 69 | 79 | | (i) An explanation as to why square footage is not appropriate metric to calculate fees imposed on housing development project. |
|---|
| 70 | 80 | | |
|---|
| 71 | 81 | | (ii) An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development. |
|---|
| 72 | 82 | | |
|---|
| 73 | 83 | | (iii) That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees. |
|---|
| 74 | 84 | | |
|---|
| 75 | 85 | | (C) This paragraph does not prohibit an agency from establishing different fees for different types of developments. |
|---|
| 76 | 86 | | |
|---|
| 77 | 87 | | (6) Large jurisdictions shall adopt a capital improvement plan as a part of the nexus study. |
|---|
| 78 | 88 | | |
|---|
| 79 | 89 | | (7) All studies shall be adopted at a public hearing with at least 30 days notice, and the city, county, or special district shall notify any member of the public that requests notice of intent to begin an impact fee nexus study of the date of the hearing. |
|---|
| 80 | 90 | | |
|---|
| 81 | 91 | | (8) Studies shall be updated at least every eight years, from the period beginning on January 1, 2022. |
|---|
| 82 | 92 | | |
|---|
| 83 | 93 | | (9) The city, county, or special district may use the impact fee nexus study template developed by the Department of Housing and Community Development pursuant to Section 50466.5 of the Health and Safety Code. |
|---|
| 84 | 94 | | |
|---|
| 85 | 95 | | (b) This section does not apply to any fees or charges pursuant to Section 66013. |
|---|
| 86 | 96 | | |
|---|
| 87 | 97 | | (c) For purposes of this section: |
|---|
| 88 | 98 | | |
|---|
| 89 | 99 | | (1) Development fee has the same meaning as defined in subdivision (b) of Section 66000. |
|---|
| 90 | 100 | | |
|---|
| 91 | 101 | | (2) Large jurisdiction has the same meaning as defined in subdivision (d) of Section 53559.1 of the Health and Safety Code. |
|---|
| 92 | 102 | | |
|---|
| 93 | 103 | | (3) Public facility has the same meaning as defined in subdivision (d) of Section 66000. |
|---|
| 94 | 104 | | |
|---|
| 95 | 105 | | (d) Nothing in this section shall be construed to relieve a city, county, or special district 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. |
|---|
| 96 | 106 | | |
|---|
| 97 | 107 | | SEC. 2. Section 66016.6 is added to the Government Code, to read:66016.6. (a) Prior to levying a new fee or capacity charge, a local agency shall evaluate the amount of the fee or capacity charge. The evaluation shall include evidence to support that the fee or capacity charge does not exceed the estimated reasonable cost of providing service, in accordance with Section 66013.(b) All information constituting the evaluation shall be made publicly available at least 14 days prior to a meeting held in accordance with subdivision (a) of Section 66016.(c) 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.(d) Nothing in this section shall be construed to relieve a local agency of the requirement that it comply with Chapter 7 (commencing with Section 66012), the California Constitution, or applicable case law when calculating the amount of a fee. |
|---|
| 98 | 108 | | |
|---|
| 99 | 109 | | SEC. 2. Section 66016.6 is added to the Government Code, to read: |
|---|
| 100 | 110 | | |
|---|
| 101 | 111 | | ### SEC. 2. |
|---|
| 102 | 112 | | |
|---|
| 103 | 113 | | 66016.6. (a) Prior to levying a new fee or capacity charge, a local agency shall evaluate the amount of the fee or capacity charge. The evaluation shall include evidence to support that the fee or capacity charge does not exceed the estimated reasonable cost of providing service, in accordance with Section 66013.(b) All information constituting the evaluation shall be made publicly available at least 14 days prior to a meeting held in accordance with subdivision (a) of Section 66016.(c) 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.(d) Nothing in this section shall be construed to relieve a local agency of the requirement that it comply with Chapter 7 (commencing with Section 66012), the California Constitution, or applicable case law when calculating the amount of a fee. |
|---|
| 104 | 114 | | |
|---|
| 105 | 115 | | 66016.6. (a) Prior to levying a new fee or capacity charge, a local agency shall evaluate the amount of the fee or capacity charge. The evaluation shall include evidence to support that the fee or capacity charge does not exceed the estimated reasonable cost of providing service, in accordance with Section 66013.(b) All information constituting the evaluation shall be made publicly available at least 14 days prior to a meeting held in accordance with subdivision (a) of Section 66016.(c) 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.(d) Nothing in this section shall be construed to relieve a local agency of the requirement that it comply with Chapter 7 (commencing with Section 66012), the California Constitution, or applicable case law when calculating the amount of a fee. |
|---|
| 106 | 116 | | |
|---|
| 107 | 117 | | 66016.6. (a) Prior to levying a new fee or capacity charge, a local agency shall evaluate the amount of the fee or capacity charge. The evaluation shall include evidence to support that the fee or capacity charge does not exceed the estimated reasonable cost of providing service, in accordance with Section 66013.(b) All information constituting the evaluation shall be made publicly available at least 14 days prior to a meeting held in accordance with subdivision (a) of Section 66016.(c) 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.(d) Nothing in this section shall be construed to relieve a local agency of the requirement that it comply with Chapter 7 (commencing with Section 66012), the California Constitution, or applicable case law when calculating the amount of a fee. |
|---|
| 108 | 118 | | |
|---|
| 109 | 119 | | |
|---|
| 110 | 120 | | |
|---|
| 111 | 121 | | 66016.6. (a) Prior to levying a new fee or capacity charge, a local agency shall evaluate the amount of the fee or capacity charge. The evaluation shall include evidence to support that the fee or capacity charge does not exceed the estimated reasonable cost of providing service, in accordance with Section 66013. |
|---|
| 112 | 122 | | |
|---|
| 113 | 123 | | (b) All information constituting the evaluation shall be made publicly available at least 14 days prior to a meeting held in accordance with subdivision (a) of Section 66016. |
|---|
| 114 | 124 | | |
|---|
| 115 | 125 | | (c) For purposes of this section: |
|---|
| 116 | 126 | | |
|---|
| 117 | 127 | | (1) Capacity charge has the same meaning as defined in Section 66013. |
|---|
| 118 | 128 | | |
|---|
| 119 | 129 | | (2) Fee has the same meaning as defined in Section 66013. |
|---|
| 120 | 130 | | |
|---|
| 121 | 131 | | (3) Local agency has the same meaning as defined in Section 66013. |
|---|
| 122 | 132 | | |
|---|
| 123 | 133 | | (d) Nothing in this section shall be construed to relieve a local agency of the requirement that it comply with Chapter 7 (commencing with Section 66012), the California Constitution, or applicable case law when calculating the amount of a fee. |
|---|