Section § 66016

Explanation

Before a local agency can introduce or increase any fee or service charge, it must hold a public meeting allowing community feedback. Interested parties should be notified at least 14 days in advance. The local agency needs to present cost data to the public at least 10 days before the meeting. The agency can't charge more than what's needed to provide the service unless voters approve. If extra revenue is generated, it must be used to reduce the charges. Fee changes must be enacted through an ordinance or resolution and can't be delegated. The meeting costs can be covered by the fees discussed. This law specifically applies to certain sections of the code mentioned. Any legal action against the fee decision should follow Section 66022.

(a)CA Government Code § 66016(a) Prior to levying a new fee or service charge, or prior to approving an increase in an existing fee or service charge, a local agency shall hold at least one open and public meeting, at which oral or written presentations can be made, as part of a regularly scheduled meeting. Notice of the time and place of the meeting, including a general explanation of the matter to be considered, and a statement that the data required by this section is available, shall be mailed at least 14 days prior to the meeting to any interested party who files a written request with the local agency for mailed notice of the meeting on new or increased fees or service charges. Any written request for mailed notices shall be valid for one year from the date on which it is filed unless a renewal request is filed. Renewal requests for mailed notices shall be filed on or before April 1 of each year. The legislative body may establish a reasonable annual charge for sending notices based on the estimated cost of providing the service. At least 10 days prior to the meeting, the local agency shall make available to the public data indicating the amount of cost, or estimated cost, required to provide the service for which the fee or service charge is levied and the revenue sources anticipated to provide the service, including General Fund revenues. Unless there has been voter approval, as prescribed by Section 66013 or 66014, no local agency shall levy a new fee or service charge or increase an existing fee or service charge to an amount which exceeds the estimated amount required to provide the service for which the fee or service charge is levied. If, however, the fees or service charges create revenues in excess of actual cost, those revenues shall be used to reduce the fee or service charge creating the excess.
(b)CA Government Code § 66016(b) Any action by a local agency to levy a new fee or service charge or to approve an increase in an existing fee or service charge shall be taken only by ordinance or resolution. The legislative body of a local agency shall not delegate the authority to adopt a new fee or service charge, or to increase a fee or service charge.
(c)CA Government Code § 66016(c) Any costs incurred by a local agency in conducting the meeting or meetings required pursuant to subdivision (a) may be recovered from fees charged for the services which were the subject of the meeting.
(d)CA Government Code § 66016(d) This section shall apply only to fees and charges as described in Sections 51287, 56383, 65104, 65456, 65584.1, 65863.7, 65909.5, 66013, 66014, and 66451.2 of this code, Sections 17951, 19132.3, and 19852 of the Health and Safety Code, Section 41901 of the Public Resources Code, and Section 21671.5 of the Public Utilities Code.
(e)CA Government Code § 66016(e) Any judicial action or proceeding to attack, review, set aside, void, or annul the ordinance, resolution, or motion levying a fee or service charge subject to this section shall be brought pursuant to Section 66022.

Section § 66016.5

Explanation

This law outlines the procedures that cities, counties, and special districts must follow when conducting an impact fee nexus study. Before adopting a development fee, a nexus study must first be established. The study should identify current service levels and proposed changes, explaining why the changes are necessary. If an existing fee is increased, prior assumptions and fees collected must be evaluated. For housing projects, fees should be calculated based on the size of the units unless a valid alternative metric is justified. Large jurisdictions need to include a capital improvement plan in the study. Public hearings with adequate notice are required before adopting studies, and they must be updated every eight years from 2022. Cities, counties, or districts can use a state-provided template for these studies. The section also clarifies definitions of terms like "city" and "development fee" and states that all standard compliance requirements remain in force.

(a)CA Government Code § 66016.5(a) A city, county, or special district that conducts an impact fee nexus study shall follow all of the following standards and practices:
(1)CA Government Code § 66016.5(a)(1) Before the adoption of an associated development fee, an impact fee nexus study shall be adopted.
(2)CA Government Code § 66016.5(a)(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)CA Government Code § 66016.5(a)(3) A nexus study shall include information that supports the city’s, county’s, or special district’s actions, as required by subdivision (a) of Section 66001.
(4)CA Government Code § 66016.5(a)(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)Copy CA Government Code § 66016.5(a)(5)
(A)Copy CA Government Code § 66016.5(a)(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)CA Government Code § 66016.5(a)(5)(A)(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)CA Government Code § 66016.5(a)(5)(A)(B)(i) An explanation as to why square footage is not an appropriate metric to calculate fees imposed on a housing development project.
(ii)CA Government Code § 66016.5(a)(5)(A)(B)(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)CA Government Code § 66016.5(a)(5)(A)(B)(iii) That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.
(C)CA Government Code § 66016.5(a)(5)(A)(C) This paragraph does not prohibit an agency from establishing different fees for different types of developments.
(6)CA Government Code § 66016.5(a)(6) Large jurisdictions shall adopt a capital improvement plan as a part of the nexus study.
(7)CA Government Code § 66016.5(a)(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)CA Government Code § 66016.5(a)(8) Studies shall be updated at least every eight years, from the period beginning on January 1, 2022.
(9)CA Government Code § 66016.5(a)(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)CA Government Code § 66016.5(b) This section does not apply to any fees or charges pursuant to Section 66013.
(c)CA Government Code § 66016.5(c) For purposes of this section:
(1)CA Government Code § 66016.5(c)(1) “City” includes a charter city.
(2)CA Government Code § 66016.5(c)(2) “Development fee” has the same meaning as defined in subdivision (b) of Section 66000.
(3)CA Government Code § 66016.5(c)(3) “Large jurisdiction” has the same meaning as defined in subdivision (d) of Section 53559.1 of the Health and Safety Code.
(4)CA Government Code § 66016.5(c)(4) “Public facility” has the same meaning as defined in subdivision (d) of Section 66000.
(d)CA Government Code § 66016.5(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.

Section § 66016.6

Explanation

If a local agency in California wants to introduce a new fee or capacity charge, it must first estimate the cost to ensure the fee doesn't exceed the reasonable cost of providing the service. This decision must be backed by evidence and shared with the public at least 14 days before the relevant meeting.

Additionally, the law clarifies that definitions for terms like 'capacity charge,' 'fee,' and 'local agency' are as specified in another section. This statute doesn't eliminate the need for local agencies to follow other legal guidelines and constitutional requirements when setting these fees.

(a)CA Government Code § 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)CA Government Code § 66016.6(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)CA Government Code § 66016.6(c) For purposes of this section:
(1)CA Government Code § 66016.6(c)(1) “Capacity charge” has the same meaning as defined in Section 66013.
(2)CA Government Code § 66016.6(c)(2) “Fee” has the same meaning as defined in Section 66013.
(3)CA Government Code § 66016.6(c)(3) “Local agency” has the same meaning as defined in Section 66013.
(d)CA Government Code § 66016.6(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.

Section § 66017

Explanation

This law explains how cities and counties in California must handle the setting or raising of fees related to development projects. Normally, any new fee or hike in an existing fee must undergo a process involving public notice and hearings, and can only take effect 60 days after the final decision is made.

In urgent situations where there is a threat to public health, safety, or welfare, local agencies can temporarily impose or increase a fee without following the usual procedures. This requires a supermajority vote (four-fifths) by the governing body and remains in effect for 30 days. The agency can extend this interim measure twice, each for an additional 30 days, with similar voting requirements and after holding a public hearing.

(a)CA Government Code § 66017(a) Any action adopting a fee or charge, or increasing a fee or charge adopted, upon a development project, as defined in Section 66000, which applies to the filing, accepting, reviewing, approving, or issuing of an application, permit, or entitlement to use shall be enacted in accordance with the notice and public hearing procedures specified in Section 54986 or 66016 and shall be effective no sooner than 60 days following the final action on the adoption of the fee or charge or increase in the fee or charge.
(b)CA Government Code § 66017(b) Without following the procedure otherwise required for the adoption of a fee or charge, or increasing a fee or charge, the legislative body of a local agency may adopt an urgency measure as an interim authorization for a fee or charge, or increase in a fee or charge, to protect the public health, welfare and safety. The interim authorization shall require four-fifths vote of the legislative body for adoption. The interim authorization shall have no force or effect 30 days after its adoption. The interim authority shall contain findings describing the current and immediate threat to the public health, welfare, and safety. After notice and public hearing pursuant to Section 54986 or 66016, the legislative body may extend the interim authority for an additional 30 days. Not more than two extensions may be granted. Any extension shall also require a four-fifths vote of the legislative body.

Section § 66018

Explanation

This law requires local government agencies in California to hold a public hearing before adopting a new fee or increasing an existing one, unless another specific notice requirement already applies. The public must be informed about the time, place, and purpose of the meeting ahead of time. Costs for these hearings can be covered by the fees involved. However, this law does not apply to fees related to water, sewer, or electrical services.

(a)CA Government Code § 66018(a)Prior to adopting an ordinance, resolution, or other legislative enactment adopting a new fee or approving an increase in an existing fee to which this section applies, a local agency shall hold a public hearing, at which oral or written presentations can be made, as part of a regularly scheduled meeting. Notice of the time and place of the meeting, including a general explanation of the matter to be considered, shall be published in accordance with Section 6062a.
(b)CA Government Code § 66018(b)Any costs incurred by a local agency in conducting the hearing required pursuant to subdivision (a) may be recovered as part of the fees which were the subject of the hearing.
(c)CA Government Code § 66018(c)This section applies only to the adopting or increasing of fees to which a specific statutory notice requirement, other than Section 54954.2, does not apply.
(d)CA Government Code § 66018(d) As used in this section, “fees” do not include rates or charges for water, sewer, or electrical service.

Section § 66018.5

Explanation

This law section states that the term "Local agency" in this chapter refers to the definition provided in another section, specifically Section 66000.

“Local agency,” as used in this chapter, has the same meaning as provided in Section 66000.

Section § 66019

Explanation

This section details the process for cities, counties, and local agencies in California to notify the public about new or increased fees. A 'fee' here does not include certain charges like those for water, sewer, or electricity services. Interested parties, such as individuals or organizations, can request mailed or emailed notices about meetings regarding fee changes. These notices must be sent 14 days before the meeting and the related data on costs and funding must be available 10 days before. The actual implementation of any new or increased fee cannot start until 60 days after it is finalized, unless special procedures are followed. Additionally, any member of the public can present evidence if they believe a local agency's fee determination is insufficient, and the agency must consider this evidence and potentially adjust the fee.

(a)CA Government Code § 66019(a) As used in this section:
(1)CA Government Code § 66019(a)(1) “Fee” means a fee as defined in Section 66000, but does not include any of the following:
(A)CA Government Code § 66019(a)(1)(A) A fee authorized pursuant to Section 66013.
(B)CA Government Code § 66019(a)(1)(B) A fee authorized pursuant to Section 17620 of the Education Code, or Sections 65995.5 and 65995.7.
(C)CA Government Code § 66019(a)(1)(C) Rates or charges for water, sewer, or electrical services.
(D)CA Government Code § 66019(a)(1)(D) Fees subject to Section 66016.
(2)CA Government Code § 66019(a)(2) “Party” means a person, entity, or organization representing a group of people or entities.
(3)CA Government Code § 66019(a)(3) “Public facility” means a public facility as defined in Section 66000.
(b)CA Government Code § 66019(b) For any fee, notice of the time and place of the meeting, including a general explanation of the matter to be considered, and a statement that the data required by this subdivision is available shall be mailed at least 14 days prior to the first meeting to an interested party who files a written request with the city, county, or city and county for mailed notice of a meeting on a new or increased fee to be enacted by the city, county, or city and county. Any written request for mailed notices shall be valid for one year from the date on which it is filed unless a renewal request is filed. Renewal requests for mailed notices shall be filed on or before April 1 of each year. The legislative body of the city, county, or city and county may establish a reasonable annual charge for sending notices based on the estimated cost of providing the service. The legislative body may send the notice electronically. At least 10 days prior to the meeting, the city, county, or city and county shall make available to the public the data indicating the amount of cost, or the estimated cost, required to provide the public facilities and the revenue sources anticipated to fund those public facilities, including general fund revenues. The new or increased fee shall be effective no earlier than 60 days following the final action on the adoption or increase of the fee, unless the city, county, or city and county follows the procedures set forth in subdivision (b) of Section 66017.
(c)CA Government Code § 66019(c) If a city, county, or city and county receives a request for mailed notice pursuant to this section, or a local agency receives a request for mailed notice pursuant to Section 66016, the city, county, or city and county or other local agency may provide the notice via electronic mail for those who specifically request electronic mail notification. A city, county, city or county, or other local agency that provides electronic mail notification pursuant to this subdivision shall send the electronic mail notification to the electronic mail address indicated in the request. The electronic mail notification authorized by this subdivision shall operate as an alternative to the mailed notice required by this section.
(d)Copy CA Government Code § 66019(d)
(1)Copy CA Government Code § 66019(d)(1) Any member of the public, including an applicant for a development project, may submit evidence that the city, county, or other local agency’s determinations and findings required pursuant to subdivision (a) of Section 66001 are insufficient or that the local agency otherwise failed to comply with this chapter. Evidence submitted pursuant to this subdivision may include, but is not limited to, information regarding the proposed fee calculation, assumptions, or methodology or the calculation, assumptions, or methodology for an existing fee upon which the proposed fee or fee increase is based.
(2)CA Government Code § 66019(d)(2) The legislative body of the city, county, or other local agency shall consider any evidence submitted pursuant to paragraph (1) that is timely submitted under this chapter. After consideration of the evidence, the legislative body of the city, county, or other local agency may change or adjust the proposed fee or fee increase if deemed necessary by the legislative body.