Chapter 8 - Procedures for Adopting Various Fees

California Government Code — §§ 66016-66019

Sections (7)

Amended by Stats. 2006, Ch. 643, Sec. 19. Effective January 1, 2007.

(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)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)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)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)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.

§ 66016.5

Amended (as amended by Stats. 2022, Ch. 128, Sec. 1) by Stats. 2022, Ch. 658, Sec. 2. (AB 2668) Effective January 1, 2023.

(a)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 city’s, county’s, or special district’s

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 an appropriate metric to calculate fees imposed on a 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.

(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)“City” includes a charter city.

(2)“Development fee” has the same meaning as defined in subdivision (b) of Section 66000.

(3)“Large jurisdiction” has the same meaning as defined in subdivision (d) of Section 53559.1 of the Health and Safety Code.

(4)“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.

§ 66016.6

Added by Stats. 2022, Ch. 128, Sec. 2. (AB 2536) Effective January 1, 2023.

(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.

§ 66017

Amended by Stats. 2006, Ch. 538, Sec. 320. Effective January 1, 2007.

(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)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.

§ 66018

Added by Stats. 1990, Ch. 1572, Sec. 20.

(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)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)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)As used in this section, “fees” do not include rates or charges for water, sewer, or electrical service.

§ 66018.5

Added by Stats. 1990, Ch. 1572, Sec. 20.

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

§ 66019

Amended by Stats. 2021, Ch. 347, Sec. 3. (AB 602) Effective January 1, 2022.

(a)As used in this section:

(1)“Fee” means a fee as defined in Section 66000, but does not include any of the following:

(A)A fee authorized pursuant to Section 66013.

(B)A fee authorized pursuant to Section 17620 of the Education Code, or Sections 65995.5 and 65995.7.

(C)Rates or charges for water, sewer, or electrical services.

(D)Fees subject to Section 66016.

(2)“Party” means

a person, entity, or organization representing a group of people or entities.

(3)“Public facility” means a public facility as defined in Section 66000.

(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)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)(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)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.