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AB-3145 Local government: housing development projects: fees and exactions cap.(2019-2020)

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Date Published: 02/21/2020 09:00 PM
AB3145:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 3145


Introduced by Assembly Member Grayson

February 21, 2020


An act to amend Sections 16000 and 16100 of the Business and Professions Code, to amend and renumber Section 65940.1 of, to amend Sections 37101, 53340, and 66477 of, and to add Chapter 4.10 (commencing with Section 65999) to Division 1 of Title 7 of, the Government Code, and to amend Section 7284 of the Revenue and Taxation Code, relating to local government.


LEGISLATIVE COUNSEL'S DIGEST


AB 3145, as introduced, Grayson. Local government: housing development projects: fees and exactions cap.
The California Constitution authorizes cities and counties to make and enforce within their limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws, and further authorizes cities organized under a charter to make and enforce all ordinances and regulations in respect to municipal affairs, which supersede inconsistent general laws. Existing law provides that a city or a county may, in the exercise of their police powers, license and regulate businesses operating within their jurisdiction and may fix the rate of the license fee and provide for its collection. Existing law authorizes the legislative body of a city and the board of supervisors of a county to license, for revenue and regulation, and fix a license tax upon, every kind of lawful business transacted in the city or county, as specified. Existing law requires a legislative body of a city or a board of supervisors of a county imposing a license tax upon a business operating both within and outside the legislative body’s or board’s taxing jurisdiction to levy the tax so that the measure of tax fairly reflects that proportion of the taxed activity actually carried on within the taxing jurisdiction.
Existing law, the Quimby Act, which is within the Subdivision Map Act, authorizes the legislative body of a city or county to require the dedication of land or to impose fees for park or recreational purposes as a condition to the approval of a tentative map or parcel subdivision map if specified requirements are met. Existing law, the Mello-Roos Community Facilities Act of 1982, after a community facilities district has been created and authorized to levy specified special taxes, authorizes the legislative body, by ordinance, to levy the special taxes at the rate and apportion them in the manner specified in the resolution forming the community facilities district.
Existing law, 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 fee’s use and the type of development project on which the fee is imposed. The Mitigation Fee Act also prohibits specified fees from exceeding the estimated reasonable cost of providing the service for which the fee is charged, unless a question regarding the amount of the fee in excess of that cost is submitted to, and approved by a popular vote of two-thirds of those electors voting on the issue.
This bill would prohibit a city or county from imposing a specified fee or exaction if the total dollar amount of the fees and exactions that a city or county would impose on a proposed housing development is greater than 12 percent of the city’s or county’s median home price unless approved by the Department of Housing and Community Development. The bill would authorize a city or county to seek approval from the department to impose a fee or an exaction that would result in the total dollar amount of fees and exactions exceeding that limitation by making a specified finding and submitting a completed application for a waiver. The bill would require the department to develop a standard form application for a waiver in conjunction with the Governor’s Office of Planning and Research. The bill would also require the department to develop standards to determine whether to grant a waiver and the total dollar amount limitation to which a city or county granted a waiver is subject. The bill would require the department to conduct and post on its internet website an analysis that, for purposes of these provisions, determines the median home price in each city and county of the state.
Existing law requires the department to notify a city or county, and authorizes the department to notify the Attorney General, that the city or county has taken an action that violates specified provisions relating to local government regulation of housing development. Existing law authorizes the Attorney General to bring a suit for specified housing element violations under certain circumstances and to request that a court issue an order or judgment directing the city or county to comply with those housing element provisions. Under existing law, the court retains jurisdiction to ensure that its order or judgment is carried out and is authorized to impose specified fines under certain circumstances.
This bill would require the department to notify a city or county, and authorize the department to notify the Attorney General, that the city or county has imposed a fee or exaction in violation of the provisions of the bill. The bill would authorize the Attorney General to bring suit for a violation under certain circumstances and to request that a court issue an order or judgment directing the city or county to comply with the provisions of the bill. Under the bill, the court would retain jurisdiction to ensure that its order or judgment is carried out and would be authorized to impose specified fines under certain circumstances. The bill would establish the Housing Development Fine and Exaction Cap Account Fund, and would make the moneys in the fund available upon appropriation by the Legislature.
Existing law, the Permit Streamlining Act, which is part of the Planning and Zoning Law, requires a specified city, county, or special district to maintain on its internet website a current schedule of fees and exactions imposed by the city, county, or special district applicable to a proposed housing development project. The act requires this information to be presented in a manner that clearly identifies the fees and exactions that apply to each parcel.
This bill would revise and recast that provision to additionally require the city, county, or special district to include on its internet website the total dollar amount of those fees and exactions as a percentage of the median home price in the city or county.
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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 Section 16000 of the Business and Professions Code is amended to read:

16000.
 (a) The Except as provided in Chapter 4.10 (commencing with Section 65999) of Division 1 of Title 7 of the Government Code, the legislative body of an incorporated city may, in the exercise of its police power, and for the purpose of regulation, as herein provided, and not otherwise, license any kind of business not prohibited by law transacted and carried on within the limits of its jurisdiction, including all shows, exhibitions and lawful games, and may fix the rates of the license fee and provide for its collection by suit or otherwise. Any legislative body, including the legislative body of a charter city, that fixes the rate of license fees pursuant to this subdivision upon a business operating both within and outside the legislative body’s taxing jurisdiction, shall levy the license fee so that the measure of the fee fairly reflects that proportion of the activity actually carried on within the taxing jurisdiction.
(b) No license fee levied pursuant to subdivision (a) that is measured by the licensee’s income or gross receipts, whether levied by a charter or general law city, shall apply to any nonprofit organization that is exempted from taxes by Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, or the successor of either, or to any minister, clergyman, Christian Science practitioner, rabbi, or priest of any religious organization that has been granted an exemption from federal income tax by the United States Commissioner of Internal Revenue as an organization described in Section 501(c)(3) of the Internal Revenue Code or a successor to that section.
(c) Before a city, including a charter city, issues a business license to a person to conduct business as a contractor, as defined in Section 7026, the city shall verify that the person is licensed by the Contractors’ State License Board.

SEC. 2.

 Section 16100 of the Business and Professions Code is amended to read:

16100.
 (a) The Except as provided in Chapter 4.10 (commencing with Section 65999) of Division 1 of Title 7 of the Government Code, the board of supervisors may in the exercise of its police powers, and for the purpose of regulation, as herein provided, and not otherwise, license any kind of business not prohibited by law, transacted and carried on within the limits of its jurisdiction, including all shows, exhibitions, and lawful games, and may fix the rate of the license fee and provide for its collection by suit or otherwise.
(b) No license fee levied pursuant to subdivision (a) that is measured by the licensee’s income or gross receipts, whether levied by a charter or general law county, shall apply to any nonprofit organization that is exempted from taxes by Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, or the successor of either, or to any minister, clergyman, Christian Science practitioner, rabbi, or priest of any religious organization that has been granted an exemption from federal income tax by the United States Commissioner of Internal Revenue as an organization described in Section 501(c)(3) of the Internal Revenue Code or a successor to that section.
(c) Before a county issues a business license to a person to conduct business as a contractor, as defined by Section 7026, the county shall verify that the person is licensed by the Contractors’ State License Board.

SEC. 3.

 Section 37101 of the Government Code is amended to read:

37101.
 (a) The Except as provided in Chapter 4.10 (commencing with Section 65999) of Division 1 of Title 7, the legislative body may license, for revenue and regulation, and fix the license tax upon, every kind of lawful business transacted in the city, including shows, exhibitions, and games. It may provide for collection of the license tax by suit or otherwise. If the legislative body levies a sales tax under the authority of this section, it may impose a complementary tax at the same rate upon use or other consumption of tangible personal property.
If the legislative body imposes a sales or use tax, it shall do so in the same manner and use the same tax base as prescribed in Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code.
(b) Any legislative body, including the legislative body of a charter city, that levies a license tax pursuant to subdivision (a) upon a business operating both within and outside the legislative body’s taxing jurisdiction, shall levy the tax so that the measure of tax fairly reflects that proportion of the taxed activity actually carried on within the taxing jurisdiction.
(c) No license tax levied pursuant to subdivision (a) that is measured by the licensee’s income or gross receipts, whether levied by a charter or general law city, shall apply to any nonprofit organization that is exempted from taxes by Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, or the successor of either, or to any minister, clergyman, Christian Science practitioner, rabbi, or priest of any religious organization that has been granted an exemption from federal income tax by the United States Commissioner of Internal Revenue as an organization described in Section 501(c)(3) of the Internal Revenue Code or a successor to that section.

SEC. 4.

 Section 53340 of the Government Code is amended to read:

53340.
 (a) After Except as provided in Chapter 4.10 (commencing with Section 65999) of Division 1 of Title 7, after a community facilities district has been created and authorized to levy specified special taxes pursuant to Article 2 (commencing with Section 53318), Article 3 (commencing with Section 53330), or Article 3.5 (commencing with Section 53339), the legislative body may, by ordinance, levy the special taxes at the rate and apportion them in the manner specified in the resolution adopted pursuant to Article 2 (commencing with Section 53318), Article 3 (commencing with Section 53330), or Article 3.5 (commencing with Section 53339). After Except as provided in Chapter 4.10 (commencing with Section 65999) of Division 1 of Title 7, after creation of a community facilities district that includes territory proposed for annexation in the future by unanimous approval as described in subdivision (b) of Section 53339.3, the legislative body may, by ordinance, provide for the levy of special taxes on parcels that will be annexed to the community facilities district at the rate or rates to be approved unanimously by the owner or owners of each parcel or parcels to be annexed to the community facilities district and for apportionment and collection of the special taxes in the manner specified in the resolution of formation.
(b) The Except as provided in Chapter 4.10 (commencing with Section 65999) of Division 1, of Title 7, the legislative body may provide, by resolution, for the levy of the special tax in the current tax year or future tax years at the same rate or at a lower rate than the rate provided by the ordinance, if the resolution is adopted and a certified list of all parcels subject to the special tax levy including the amount of the tax to be levied on each parcel for the applicable tax year, is filed by the clerk or other official designated by the legislative body with the county auditor on or before the 10th day of August of that tax year. The clerk or other official designated by the legislative body may file the certified list after the 10th of August but not later than the 21st of August if the clerk or other official obtains prior written consent of the county auditor.
(c) Properties or entities of the state, federal, or local governments and governments, properties receiving a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code Code, and properties exempt pursuant to Chapter 4.10 (commencing with Section 65999) of Division 1 of Title 7, shall, except for properties that a local agency is a landowner of within the meaning of subdivision (f) of Section 53317, or except as otherwise provided in Section 53317.3, be exempt from the special tax. No other properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in the resolution of formation to establish a district adopted pursuant to Section 53325.1 or in a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment of an existing special tax as provided in Section 53334.
(d) The proceeds of any special tax may only be used to pay, in whole or part, the cost of providing public facilities, services, and incidental expenses pursuant to this chapter.
(e) The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes, unless another procedure has been authorized in the resolution of formation establishing the district and adopted by the legislative body.
(f) (1) Notwithstanding subdivision (e), the legislative body of the district may waive all or any specified portion of the delinquency penalties and redemption penalties if it makes all of the following determinations:
(A) The waivers shall apply only to parcels delinquent at the time of the determination.
(B) The waivers shall be available only with respect to parcels for which all past due and currently due special taxes and all other costs due are paid in full within a limited period of time specified in the determination.
(C) The waivers shall be available only with respect to parcels sold or otherwise transferred to new owners unrelated to the owner responsible for the delinquency.
(D) The waivers are in the best interest of the debtholders.
(2) The charges with penalties to be waived shall be removed from the tax roll pursuant to Section 53356.2 and local administrative procedures, and any distributions made to the district prior to collection pursuant to Chapter 3 (commencing with Section 4701) of Part 8 of Division 1 of the Revenue and Taxation Code shall be repaid by the district prior to granting the waiver.
(g) The tax collector may collect the special tax at intervals as specified in the resolution of formation, including intervals different from the intervals determining when the ordinary ad valorem property taxes are collected. The tax collector may deduct the reasonable administrative costs incurred in collecting the special tax.
(h) All special taxes levied by a community facilities district shall be secured by the lien imposed pursuant to Section 3115.5 of the Streets and Highways Code. This lien shall be a continuing lien and shall secure each levy of special taxes. The lien of the special tax shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied, and canceled in accordance with Section 53344 or until the special tax ceases to be levied by the legislative body in the manner provided in Section 53330.5. If any portion of a parcel is encumbered by a lien pursuant to this chapter, the entirety of the parcel shall be encumbered by that lien.
(i) The amendments to subdivision (c) made by the act adding this subdivision shall apply to taxes imposed by an ordinance adopted on or after January 1, 2020.

SEC. 5.

 Section 65940.1 of the Government Code is amended and renumbered to read:

65940.1.65999.2.
 (a) (1) A city, county, or special district that has an internet website shall make all of the following available on its internet website, as applicable:
(A) (i) A current schedule of fees, exactions, and affordability requirements imposed by the city, county, or special district, including any dependent special districts, as defined in Section 56032.5, of the city or county applicable to a proposed housing development project, which shall be presented project.
(ii) The city, county, or special district shall present the information required by this subparagraph in a manner that clearly identifies the fees, exactions, and affordability requirements that apply to each parcel. parcel, and shall include the total dollar amount of those fees and exactions as a percentage of the median home price in the city or county.
(B) All zoning ordinances and development standards, which shall specify the zoning, design, and development standards that apply to each parcel.
(C) The list required to be compiled pursuant to Section 65940.
(D) The current and five previous annual fee reports or the current and five previous annual financial reports, that were required pursuant to subdivision (b) of Section 66006 and subdivision (d) of Section 66013.
(E) An archive of impact fee nexus studies, cost of service studies, or equivalent, conducted by the city, county, or special district on or after January 1, 2018. For purposes of this subparagraph, “cost of service study” means the data provided to the public pursuant to subdivision (a) of Section 66016.
(2) A city, county, or special district shall update the information made available under this subdivision within 30 days of any changes.

(b)For purposes of this section:

(1)“Affordability requirement” means a requirement imposed as a condition of a development of residential units, that the development include a certain percentage of the units affordable for rent or sale to households with incomes that do not exceed the limits for moderate-income, lower income, very low income, or extremely low income households specified in Sections 50079.5, 50093, 50105, and 50106 of the Health and Safety Code, or an alternative means of compliance with that requirement including, but not limited to, in-lieu fees, land dedication, off-site construction, or acquisition and rehabilitation of existing units.

(2)“Exaction” means any of the following:

(A)A construction excise tax.

(B)A requirement that the housing development project provide public art or an in-lieu payment.

(C)A special tax levied on new housing units pursuant to the Mello-Roos Community Facilities Act (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5).

(D)Dedications of parkland or in-lieu fees imposed pursuant to Section 66477.

(3)“Fee” means a fee or charge described in the Mitigation Fee Act (Chapter 5 (commencing with Section 66000), Chapter 6 (commencing with Section 66010), Chapter 7 (commencing with Section 66012), Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020)).

(4)“Housing development project” means a use consisting of any of the following:

(A)Residential units only.

(B)Mixed-use developments consisting of residential and nonresidential uses with at least two-thirds of the square footage designated for residential use.

(C)Transitional housing or supportive housing.

(c)

(b) This section shall not be construed to alter the existing authority of a city or county to adopt or impose an exaction or fee.

SEC. 6.

 Chapter 4.10 (commencing with Section 65999) is added to Division 1 of Title 7 of the Government Code, to read:
CHAPTER  4.10. Local Constraints on Housing Development Projects

65999.
 The Legislature finds and declares that increasing the supply of housing by limiting the amount of fees and exactions paid by developers of housing required by this chapter is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this chapter applies to all cities, including charter cities.

65999.1
 For purposes of this section, the following terms have the following meanings:
(a) “Affordability requirement” means a requirement imposed as a condition of a development of residential units, that the development include a certain percentage of the units affordable for rent or sale to households with incomes that do not exceed the limits for moderate-income, lower income, very low income, or extremely low income households specified in Sections 50079.5, 50093, 50105, and 50106 of the Health and Safety Code, or an alternative means of compliance with that requirement including, but not limited to, in-lieu fees, land dedication, offsite construction, or acquisition and rehabilitation of existing units.
(b) “Department” means the Department of Housing and Community Development.
(c) “Exaction” means any of the following:
(1) A construction excise tax imposed pursuant to Section 7284 of the Revenue and Taxation Code, Section 37101, or any similar tax imposed by a charter city or charter county through its powers derived under Article XI of the California Constitution.
(2) A requirement that the housing development project provide public art or an in-lieu fee imposed pursuant to Section 66477.
(3) Dedications of parkland or in-lieu fees imposed pursuant to Section 66477.
(4) A special tax levied on new housing units pursuant to the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5).
(d) “Fee” means a fee or charge described in the Mitigation Fee Act (Chapter 5 (commencing with Section 66000), Chapter 6 (commencing with Section 66010), Chapter 7 (commencing with Section 66012), Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020)).
(e) “Housing development project” means a use consisting of any of the following:
(1) Residential units only.
(2) Mixed-use developments consisting of residential and nonresidential uses with at least two-thirds of the square footage designated for residential use.
(3) Transitional housing or supportive housing.
(4) “Fund” means the Housing Development Fine and Exaction Cap Account Fund.
(f) “Statewide median home price” is the price.

65999.3.
 Unless approved by the department pursuant to Section 65999.4, a city or county shall not impose a fee or an exaction if the total dollar amount of the fees and exactions that a city or county would impose on a proposed housing development is greater than 12 percent of the city’s or county’s median home price, as determined by the department pursuant to Section 65999.5.

65999.4.
 (a) A city or county may seek approval from the department to impose a fee or an exaction that would result in the total dollar amount of the fees and exactions exceeding the limitation specified in Section 65999.3 by doing both of the following:
(1) Make a finding that justifies the need for the total dollar amount of the fees and exactions exceeding 12 percent of the city’s or county’s median home price.
(2) Complete and submit to the department an application for a waiver developed by the department pursuant to Section 65999.5.
(b) If the department finds the application to be sufficient pursuant to the standards developed pursuant to Section 65999.5, the department may approve the application for the waiver from the requirement in subdivision (a) and authorize the city or county to impose a total dollar amount of fees and exactions that is either of the following:
(1) In an amount specified by the city or county in the application.
(2) In an amount that would be in excess of the requirement in subdivision (a) and below the amount specified by the city or county in the application.

65999.5.
 (a) The department, in conjunction with the Governor’s Office of Planning and Research, shall develop a standard form application for a waiver specified in Section 65999.4.
(b) The department shall develop standards to determine both of the following:
(1) Whether a city or county that has submitted an application pursuant to Section 65999.4 is eligible for a waiver of the limitation specified in Section 65999.3.
(2) The total dollar amount limitation to which a city or county granted a waiver pursuant to Section 65999.4 shall be subject.
(c) The department shall conduct and post on its internet website an analysis that determines the median home price of each city and county in the state for purposes of this chapter.

65999.6.
 (a) The department shall notify the city or county and may notify the office of the Attorney General that the city or county is in violation of this chapter if the department finds that the city or county has imposed a fee or an exaction in violation of this chapter.
(b) In any action brought by the Attorney General relating to a violation of this chapter pursuant to a notice or referral under subdivision (a), the Attorney General may request, upon a finding of the court that the imposition of a fee or exaction does not comply with the requirements of this chapter, that the court issue an order or judgment directing the city or county to refund the imposed fee or exaction and bring the total dollar amount of fees and exactions into compliance with the requirements of this chapter. The court shall retain jurisdiction to ensure that its order or judgment is carried out.
(c) (1) If the city or county has not complied with an order or judgment issued pursuant to subdivision (b) after 12 months, the court shall conduct a status conference. Following the status conference, upon a determination that the city or county failed to comply with the order or judgment compelling compliance with the requirements of this chapter, the court shall impose fines on the city or county, which shall be deposited into the Housing Development Fine and Exaction Cap Account Fund. Any fine levied pursuant to this subdivision shall be in a minimum amount of ten thousand dollars ($10,000) per month, but shall not exceed one hundred thousand dollars ($100,000) per month, except as provided in paragraphs (2) and (3). In the event that the city or county fails to pay fines imposed by the court in full and on time, the court may require the State Controller to intercept any available state and local funds and direct such funds to the Housing Development Fine and Exaction Cap Account Fund to correct the jurisdiction’s failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(2) If the city or county has not complied with the order or judgment after three months following the imposition of fees described in paragraph (1), the court shall conduct a status conference. Following the status conference, if the court finds that the fines imposed pursuant to paragraph (1) are insufficient to bring the city or county into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of three. In the event that the city or county fails to pay fines imposed by the court in full and on time, the court may require the State Controller to intercept any available state and local funds and direct such funds to the Housing Development Fine and Exaction Cap Fund to correct the failure of the city or county to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(3) If the city or county has not complied with the order or judgment six months following the imposition of fines described in paragraph (1), the court shall conduct a status conference. Following the status conference, if the court finds that the fines imposed pursuant to paragraph (1) and paragraph (2) are insufficient to bring the city or county into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of six. In the event that the city or county fails to pay fines imposed by the court in full and on time, the court may require the State Controller to intercept any available state and local funds and direct such funds to the Housing Development Fine and Exaction Cap Fund to correct the failure of the city or county to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(d) In determining the application of the remedies available under subdivision (c), the court shall consider whether there are any mitigating circumstances delaying the city or county from complying with this chapter. The court may consider whether the city or county is making a good faith effort to comply or whether the city or county is facing substantial undue hardships.
(e) The office of the Attorney General may seek all remedies available under law including those set forth in this section.

65999.7.
 (a) There is hereby created in the State Treasury the Housing Development Fine and Exaction Cap Account Fund.
(b) The moneys in the fund shall be available upon appropriation by the Legislature.

SEC. 7.

 Section 66477 of the Government Code, as added by Section 2 of Chapter 276 of the Statutes of 2015, is amended to read:

66477.
 (a) The Except as provided in Chapter 4.10 (commencing with Section 65999) of Division 1, the legislative body of a city or county may, by ordinance, require the dedication of land or impose a requirement of the payment of fees in lieu thereof, or a combination of both, for park or recreational purposes as a condition to the approval of a tentative map or parcel map, if all of the following requirements are met:
(1) The ordinance has been in effect for a period of 30 days prior to the filing of the tentative map of the subdivision or parcel map.
(2) The ordinance includes definite standards for determining the proportion of a subdivision to be dedicated and the amount of any fee to be paid in lieu thereof. The amount of land dedicated or fees paid shall be based upon the residential density, which shall be determined on the basis of the approved or conditionally approved tentative map or parcel map and the average number of persons per household. There shall be a rebuttable presumption that the average number of persons per household by units in a structure is the same as that disclosed by the most recent available federal census or a census taken pursuant to Chapter 17 (commencing with Section 40200) of Part 2 of Division 3 of Title 4. However, the dedication of land, or the payment of fees, or both, shall not exceed the proportionate amount necessary to provide three acres of park area per 1,000 persons residing within a subdivision subject to this section, unless the amount of existing neighborhood and community park area, as calculated pursuant to this subdivision, exceeds that limit, in which case the legislative body may adopt the calculated amount as a higher standard not to exceed five acres per 1,000 persons residing within a subdivision subject to this section.
(A) The park area per 1,000 members of the population of the city, county, or local public agency shall be derived from the ratio that the amount of neighborhood and community park acreage bears to the total population of the city, county, or local public agency as shown in the most recent available federal census. The amount of neighborhood and community park acreage shall be the actual acreage of existing neighborhood and community parks of the city, county, or local public agency as shown on its records, plans, recreational element, maps, or reports as of the date of the most recent available federal census.
(B) For cities incorporated after the date of the most recent available federal census, the park area per 1,000 members of the population of the city shall be derived from the ratio that the amount of neighborhood and community park acreage shown on the maps, records, or reports of the county in which the newly incorporated city is located bears to the total population of the new city as determined pursuant to Section 11005 of the Revenue and Taxation Code. In making any subsequent calculations pursuant to this section, the county in which the newly incorporated city is located shall not include the figures pertaining to the new city which were calculated pursuant to this paragraph. Fees shall be payable at the time of the recording of the final map or parcel map, or at a later time as may be prescribed by local ordinance.
(3) (A) The land, fees, or combination thereof are to be used only for the purpose of developing new or rehabilitating existing neighborhood or community park or recreational facilities to serve the subdivision, except as provided in subparagraph (B).
(B) Notwithstanding subparagraph (A), fees may be used for the purpose of developing new or rehabilitating existing park or recreational facilities in a neighborhood other than the neighborhood in which the subdivision for which fees were paid as a condition to the approval of a tentative map or parcel map is located, if all of the following requirements are met:
(i) The neighborhood in which the fees are to be expended has fewer than three acres of park area per 1,000 members of the neighborhood population.
(ii) The neighborhood in which the subdivision for which the fees were paid has a park area per 1,000 members of the neighborhood population ratio that meets or exceeds the ratio calculated pursuant to subparagraph (A) of paragraph (2), but in no event is less than three acres per 1,000 persons.
(iii) The legislative body holds a public hearing before using the fees pursuant to this subparagraph.
(iv) The legislative body makes a finding supported by substantial evidence that it is reasonably foreseeable that future inhabitants of the subdivision for which the fee is imposed will use the proposed park and recreational facilities in the neighborhood where the fees are used.
(v) The fees are used within a specified radius that complies with the city’s or county’s ordinance adopted pursuant to subdivision (a), and are consistent with the adopted general plan or specific plan of the city or county. For purposes of this clause, “specified radius” includes a planning area, zone of influence, or other geographic region designated by the city or county, that otherwise meets the requirements of this section.
(4) The legislative body has adopted a general plan or specific plan containing policies and standards for parks and recreational facilities, and the park and recreational facilities are in accordance with definite principles and standards.
(5) The amount and location of land to be dedicated or the fees to be paid shall bear a reasonable relationship to the use of the park and recreational facilities by the future inhabitants of the subdivision.
(6) (A) The city, county, or other local public agency to which the land or fees are conveyed or paid shall develop a schedule specifying how, when, and where it will use the land or fees, or both, to develop park or recreational facilities to serve the residents of the subdivision. Any fees collected under the ordinance shall be committed within five years after the payment of the fees or the issuance of building permits on one-half of the lots created by the subdivision, whichever occurs later. If the fees are not committed, they, without any deductions, shall be distributed and paid to the then record owners of the subdivision in the same proportion that the size of their lot bears to the total area of all lots within the subdivision.
(B) The city, county, or other local agency to which the land or fees are conveyed or paid may enter into a joint or shared use agreement with one or more other public districts in the jurisdiction, including, but not limited to, a school district or community college district, in order to provide access to park or recreational facilities to residents of subdivisions with fewer than three acres of park area per 1,000 members of the population.
(7) Only the payment of fees may be required in subdivisions containing 50 parcels or less, except that when a condominium project, stock cooperative, or community apartment project, as those terms are defined in Sections 4105, 4125, and 4190 of the Civil Code, exceeds 50 dwelling units, dedication of land may be required notwithstanding that the number of parcels may be less than 50.
(8) Subdivisions containing less than five parcels and not used for residential purposes shall be exempted from the requirements of this section. However, in that event, a condition may be placed on the approval of a parcel map that if a building permit is requested for construction of a residential structure or structures on one or more of the parcels within four years, the fee may be required to be paid by the owner of each parcel as a condition of the issuance of the permit.
(9) If the subdivider provides park and recreational improvements to the dedicated land, the value of the improvements together with any equipment located thereon shall be a credit against the payment of fees or dedication of land required by the ordinance.
(b) Land or fees required under this section shall be conveyed or paid directly to the local public agency which provides park and recreational services on a communitywide level and to the area within which the proposed development will be located, if that agency elects to accept the land or fee. The local agency accepting the land or funds shall develop the land or use the funds in the manner provided in this section.
(c) If park and recreational services and facilities are provided by a public agency other than a city or county, the amount and location of land to be dedicated or fees to be paid shall, subject to paragraph (2) of subdivision (a), be jointly determined by the city or county having jurisdiction and that other public agency.
(d) This section does not apply to commercial or industrial subdivisions or to condominium projects or stock cooperatives that consist of the subdivision of airspace in an existing apartment building that is more than five years old when no new dwelling units are added.
(e) Common interest developments, as defined in Section 4100 of the Civil Code, shall be eligible to receive a credit, as determined by the legislative body, against the amount of land required to be dedicated, or the amount of the fee imposed, pursuant to this section, for the value of private open space within the development which is usable for active recreational uses.
(f) Park and recreation purposes shall include land and facilities for the activity of “recreational community gardening,” which activity consists of the cultivation by persons other than, or in addition to, the owner of the land, of plant material not for sale.
(g) As used in this section with regard to the expenditure of fees, the term “fee” includes any interest income generated from a fee charged and collected pursuant to this section.
(h) This section shall be known, and may be cited, as the Quimby Act.
(i) This section shall become operative on January 1, 2021.

SEC. 8.

 Section 7284 of the Revenue and Taxation Code is amended to read:

7284.
 (a) The Except as provided in Chapter 4.10 (commencing with Section 65999) of Division 1 of Title 7 of the Government Code, the board of supervisors of any a county may license, for revenue and regulation, and fix the license tax upon, every kind of lawful business transacted in the unincorporated area of the county, including shows, exhibitions, and games. The board may provide for collection of the license tax by suit or otherwise.
(b) Any A board which imposes a license tax pursuant to subdivision (a) upon a business operating both within and outside the board’s taxing jurisdiction shall levy the tax so that the measure of tax fairly reflects that proportion of the taxed activity actually carried on within the taxing jurisdiction.

SEC. 9.

 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.