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Bills

SB 1036: Mitigation Fee Act.

  • Session Year: 2025-2026
  • House: Senate
  • Latest Version Date: 2026-04-08

Current Status:

In Progress

(2026-04-08: From committee with author's amendments. Read second time and amended. Re-referred to Com. on L. GOV.)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Enacted

Version:

Existing law, the Mitigation Fee Act, imposes various requirements with respect to the establishment, increase, or imposition of a fee by a local agency as a condition of approval of a development project, including requiring the local agency to identify the use to which the fee is to be put and determine how there is a reasonable relationship between the fees use and the type of development project on which the fee is imposed. Existing law also requires a local agency, upon receipt of a fee subject to these provisions, to deposit, invest, account for, and expend the fees as specified. Existing law further provides that when a local agency imposes a fee for water connections or sewer connections, or imposes a capacity charge, as defined, those fees or charges shall not exceed the estimated reasonable cost of providing the service for which the fee or charge is imposed, except as specified.

This bill would additionally require any fee established, increased, or imposed to be based on the net impact on the need for the public facility being funded by the fee and account for whether the development project is removing or replacing an existing use or a previous use that existed at the time the fee was established, as specified. The bill would require, in this redevelopment scenario, the local agency to provide a fee credit or otherwise reduce the fee in an amount proportionate to the impact caused by the use that is being removed or replaced.

This bill would require the amount of a fee or charge described above that is imposed on a development project that demolishes or changes an existing use to be offset to account for the demolition or change so that the amount of the fee or charge is attributable only to the development projects incremental impact on public facilities or services, as provided.

News Coverage:

SB 1036: Mitigation Fee Act. | Digital Democracy