Blogs

Two significant measures affecting special district revenues underwent positive developments early in the legislative process:

AB 59 (Gabriel) Mitigation Fee Act: fees: notice and timelines – CSDA Opposed

This measure has several components that create new mandates and liability on water and utility focused districts. Among other things, this measure encourages lawsuits against agencies by removing the current statute of limitations to challenge connection and capacity fees. It also prohibits the use of any information not previously posted on the agency website from being used as evidence in the agency’s defense in court in a fee related action.  The open-ended litigation threat would hamper long-term capital infrastructure planning. CSDA joined other statewide organizations on a coalition in opposition to AB 59. Due to robust, early opposition by local government advocates, led by the Association of California Water Agencies, this measure will not be heard this year and will become a “two-year bill “.

SB 219 (McGuire) Property taxation: delinquent penalties and costs: cancellation: public health orders.— CSDA Support

SB 219 is sponsored by the California Association of County Treasurers and Tax Collectors to allow property tax late payment penalty relief on a case-by-case basis. This bill would authorize the county auditor or tax collector to cancel any penalties resulting from tax delinquency upon a finding that failure to make a timely payment is due to a documented hardship, arising from a shelter-in-place order. This bill codifies an executive order that was negotiated by local government advocates and the Governor when there were calls for a blanket statewide property tax late-penalty waiver during the COVID-19 pandemic. CSDA supported those efforts to avoid a statewide blanket waiver and now supports SB 219 as well. This measure, which will take effect immediately upon being signed by the Governor, passed its first hurdle by being voted out of its first policy committee on consent.