State Codes and Statutes

Statutes > California > Gov > 54999-54999.7

GOVERNMENT CODE
SECTION 54999-54999.7



54999.  (a) The Legislature finds and declares that many public
entities that provide public utility service have imposed capital
facilities fees applicable to users of public utility facilities in
order to equitably apportion the cost of capital facilities
construction or expansion required by all public and private users of
the facilities. In the recent decision in San Marcos Water Dist. v.
San Marcos Unified School Dist., 42 Cal. 3d 154, the California
Supreme Court held that public entities cannot be made subject to
these fees without statutory authorization. As a result, the fiscal
stability and service capabilities of the affected public utility
service agencies which have in good faith collected and spent these
fees for capital improvements are seriously impaired as is the
ability to finance essential future facilities.
   (b) The Legislature further finds that the holding in the San
Marcos Water Dist. v. San Marcos Unified School Dist., 42 Cal. 3d
154, should be revised to authorize payment and collection of capital
facilities fees subject to the limitations set forth in this
chapter, and in furtherance of this finding the Legislature hereby
enacts the following provisions.



54999.1.  For purposes of this chapter:
   (a) "Actual construction costs" includes the cost of all
activities necessary or incidental to the construction of a public
utility facility, such as financing, planning, designing, acquisition
of property or interests in property, construction, reconstruction,
and rehabilitation.
   (b) "Capacity charge" means a one-time charge to recover the costs
of public utility facilities necessary to establish new or expand
existing public utility service to a public agency.
   (c) (1) "Capital facilities fee" means a nondiscriminatory
connection fee, a nondiscriminatory capacity charge, or both.
"Capital facilities fee" does not include any other rate, charge, or
surcharge, or any capital component thereof.
   (2) For purposes of this subdivision, "nondiscriminatory" means
that the fee does not exceed an amount determined on the basis of the
same objective criteria and methodology applicable to comparable
nonpublic users, and is not in excess of the proportionate share of
the cost of the public utility facilities of benefit to the person or
property being charged, based upon the proportionate share of use of
those facilities.
   (d) "Connection fee" means a fee to recover the costs of the
physical facilities necessary to directly connect a public agency
facility to a public utility service provided by a public agency,
including, but not limited to, meters, meter boxes, and pipelines to
make the connection, and the actual cost of labor and materials for
the installation of those facilities.
   (e) "Public agency" means the United States or any of its
agencies, the state or any of its agencies, the California State
University, the Regents of the University of California, a county, a
county office of education, a city, a school district, community
college district, or any other district, a public authority, or any
other political subdivision or public corporation of this state.
   (f) "Public school" means the California State University, the
Regents of the University of California, a county office of
education, a school district, or a community college district.
   (g) "Public utility facility" means a facility for the provision
of water, light, heat, communications, power, or garbage service, for
flood control, drainage or sanitary purposes, or sewage collection,
treatment, or disposal.
   (h) "Public utility service" means service for water, light, heat,
communications, power, or garbage, or for flood control, drainage or
sanitary purposes, or sewage collection, treatment, or disposal,
provided by a public agency.
   (i) "State agency" or "state" means any state office, department,
division, bureau, board, or commission.



54999.2.  Any public agency providing public utility service on or
after July 21, 1986, may continue to charge, or may increase, an
existing capital facilities fee, or may impose a new capital
facilities fee after that date, and any public agency receiving a
public utility's service shall pay those fees so imposed, except as
provided in Sections 54999.3 and 54999.35.



54999.3.  However, the imposition of a capital facilities fee on any
school district, county office of education, community college
district, the California State University, the University of
California, or state agency shall be subject to the following:
   (a) Where necessary to defray the actual construction costs of
that portion of a public utility facility actually serving a public
agency, any public agency providing public utility service on or
after July 21, 1986, may continue to charge any capital facilities
fee which was imposed prior to that date on the public agency using
the public utility service and was not protested or challenged
pursuant to law prior to January 1, 1987, or increase that capital
facility fee in an amount not to exceed the percentage increase in
the Implicit Price Deflator for State and Local Government Purchases,
as determined by the Department of Finance and any public agency
shall pay any capital facilities fees authorized by this subdivision.
   (b) On and after July 21, 1986, any public agency proposing to
initially impose a capital facilities fee or to increase an existing
capital facilities fee in excess of the amount set forth in
subdivision (a), may do so after agreement has been reached between
the two agencies through negotiations entered into by both parties.
   (c) Upon request of the affected public agency or upon increase
pursuant to subdivision (a), the public agency imposing or increasing
the fee shall identify the amount of the capital facilities fee. The
public agency imposing or increasing the capital facilities fee has
the burden of producing evidence to establish that the capital
facilities fee is nondiscriminatory and that the amount of the
capital facilities fee does not exceed the amount necessary to
provide capital facilities for which the fee is charged.




54999.35.  (a) This section shall apply only to a local publicly
owned electric utility or other public agency providing public
electric utility service to a public agency in its service territory,
as specified in subdivision (b). "Local publicly owned electric
utility" as used in this section means all of the following:
   (1) A municipality or municipal corporation operating as a "public
utility" furnishing electric commodity or electric service as
provided in Section 10001 of the Public Utilities Code.
   (2) Any special district furnishing electric commodity or electric
service, including, but not limited to, any of the following:
   (A) A resort improvement district formed pursuant to Division 11
(commencing with Section 13000) of the Public Resources Code.
   (B) A municipal utility district formed pursuant to Division 6
(commencing with Section 11501) of the Public Utilities Code.
   (C) A public utility district formed pursuant to the Public
Utility District Act set forth in Division 7 (commencing with Section
15501) of the Public Utilities Code.
   (D) An irrigation district formed pursuant to the Irrigation
District Law set forth in Division 11 (commencing with Section 20500)
of the Water Code.
   (3) A joint powers authority that includes one or more of these
agencies that furnishes electric commodity or electric service over
its own or its member's electric distribution system.
   (b) The imposition of a capital facilities fee for electric
utility service on any school district, county office of education,
community college district, the California State University, the
University of California, or state agency by a public agency
providing public utility service shall be subject to all of the
following:
   (1) Where necessary to defray the actual construction costs of
that portion of a public utility facility actually serving a public
agency, any public agency providing public utility service on or
after July 21, 1986, may continue to charge any capital facilities
fee that was imposed prior to that date on the public agency using
the public utility service and that was not protested or challenged
pursuant to law prior to January 1, 1987, or increase that capital
facility fee in an amount not to exceed the percentage increase in
the Implicit Price Deflator for State and Local Government Purchases,
as determined by the Department of Finance, and any public agency
shall pay any capital facilities fees authorized by this subdivision.
   (2) Any public agency proposing to initially impose a capital
facilities fee or to increase an existing capital facilities fee in
excess of the amount set forth in paragraph (1), may do so after
agreement has been reached between the two agencies through
negotiations entered into by both parties.
   (3) Upon request of the affected public agency or upon increase
pursuant to paragraph (1), the public agency imposing or increasing
the fee shall identify the amount of the capital facilities fee. The
public agency imposing or increasing the capital facilities fee has
the burden of producing evidence to establish all of the following:
   (A) The capital facilities fee is nondiscriminatory.
   (B) The amount of the capital facilities fee does not exceed the
amount necessary to provide capital facilities for which the fee is
charged.
   (C) The capital facilities fee complies with the requirements set
forth in paragraph (1).
   (4) A public agency proposing to enact or increase capital
facilities fees under this section shall notify by certified mail any
school district, county office of education, community college
district, California State University, University of California, or
state agency located within its service area that is an electric
utility customer of the public agency, not less than 30 days prior to
the date of any hearing set to consider an ordinance resolution, or
motion enacting or increasing a capital facilities fee. The notice
shall state the date, time, and place of any hearing. The notice
shall also state that the public agency proposes to impose a new
capital facilities fee or to increase an existing capital facilities
fee in an amount that either complies with the requirements of
paragraph (1) or in an amount that exceeds capital facilities fees
permissible under paragraph (1).
   (5) The notice described in paragraph (4) shall designate an
individual at the public agency who shall make available, upon
request, for inspection by any school district, county office of
education, community college district, California State University,
University of California, or state agency located within its service
area, the information relied upon in setting the fee or increase,
including the methodology used to calculate and allocate the capital
expenditures giving rise to the fee or increase, and an
identification of the capital facilities that contribute to the fee
or increase, as well as any other information relevant to determining
whether or not the fee or increase complies with the provisions of
this section. The affected school district, county office of
education, community college district, California State University,
University of California, or state agency shall designate the
individual who is to receive the notice, and the public agency
providing public utility service shall direct the notice to that
individual. If no specific individual is designated, then the notice
shall be addressed to the billing address of the affected facility.
In the case of an affected state agency, after an initial notice has
been delivered by certified mail to the billing address of the
affected state agency facility, subsequent notice may be directed to
the billing address of the state agency by first-class mail, unless
the affected state agency specifically requests that the notice be
directed to a designated individual by certified mail. A subsequent
notice to other affected public agency facilities shall be by
certified mail directed to the billing address of the affected
facility.
   (6) Any judicial action or proceeding to protest or challenge a
rate or charge that contains a capital facilities fee or to seek a
refund of any capital facilities fee imposed on or after July 1,
2000, shall be commenced within 120 days of the effective date of the
ordinance, resolution, or motion enacting or increasing the rate,
charge, or capital facilities fee, provided that the notice and
disclosure requirements of paragraphs (4) and (5) have been followed.
If the notice and disclosure requirements of paragraphs (4) and (5)
have not been complied with, the 120-day limitation period is not
applicable to the judicial action or proceeding to protest or
challenge a rate or charge or to seek the refund of any capital
facilities fee imposed on or after July 1, 2000.
   (7) No limitation period in Chapter 9 (commencing with Section
860) of Title 10 of Part 2 of the Code of Civil Procedure may bar any
judicial action, proceeding or appeal protesting or seeking a refund
of a rate, charge, capital facilities fee or capital facilities fee
component of a rate or charge imposed on or after April 1, 2000, if
the notice and disclosure requirements of paragraphs (4) and (5) have
not been followed.



54999.4.  Any capital facilities fees paid prior to March 24, 1988,
and not protested or challenged pursuant to law on or before January
1, 1987, shall not be subject to refund, except for capital
facilities fees paid after July 21, 1986, by a public agency subject
to Section 54999.3 that are in excess of the maximum amount
authorized by Sections 54999.3 and 54999.35. Agreements entered into
prior to or after March 24, 1988, for the payment of capital
facilities fees or capacity charges shall be effective.



54999.5.  Capital facilities fees paid by school districts for
public utility facilities to serve school facilities for which an
application for funding is filed on or after the effective date of
this chapter may, for purposes of Chapter 12 (commencing with Section
17000) of Part 10 of the Education Code, be included by the State
Allocation Board as a "cost of project" within the meaning of
subdivision (b) of Section 17702 of the Education Code.



54999.6.  Should any provision or clause of this chapter or
application thereof to any person or circumstance be held invalid or
unconstitutional, that invalidity or unconstitutionality shall not
affect other provisions or applications thereof which can be given
effect without the invalid provision or application and, to this end,
the provisions of this chapter are declared severable. By adopting
this chapter, the Legislature hereby declares that it would have
adopted this chapter without that provision or provisions.



54999.7.  (a) Any public agency providing public utility service may
impose a fee, including a rate, charge, or surcharge, for any
product, commodity, or service provided to a public agency, and any
public agency receiving service from a public agency providing public
utility service shall pay that fee so imposed. Such a fee for public
utility service, other than electricity or gas, shall not exceed the
reasonable cost of providing the public utility service.
   (b)  A fee, including a rate, charge, or surcharge, for any
product, commodity, or service provided to a public agency, shall be
determined on the basis of the same objective criteria and
methodology applicable to comparable nonpublic users, based on
customer classes established in consideration of service
characteristics, demand patterns, and other relevant factors.
   (c) A public agency providing public utility service shall
complete a cost of service study at least once every 10 years that
addresses the cost of providing public utility service to public
schools. The study shall describe the methodology for the
determination of cost responsibility, which may be identified by
reference to appropriate industry ratemaking principles, including
guidance associated with designing and developing water rates and
charges issued by the American Water Works Association or guidance
associated with other comparable industry principles recognized by
public agencies providing public utility service.
   (d) In addition to other notices required pursuant to state law or
local ordinance or rule, whenever a public agency that provides
public utility service holds a public meeting to establish or
increase any rate, charge, surcharge, or fee, that public agency
shall provide a written notice of the meeting not less than 60 days
prior to the date of the public meeting to any public agency that has
filed a written request for such a notice with either the clerk of
the governing body or with any other person designated by the
governing body to receive these requests.
   (e) Upon request of any affected public agency made not less than
30 days prior to the date of the public meeting to establish or
increase any rate, charge, surcharge, or fee, a public agency that
provides public utility service shall provide the affected public
agency with the data and proposed methodology for establishing or
increasing the rate, charge, surcharge, or fee. The data and proposed
methodology may be provided during a meeting of staff or other
representatives of each agency.
   (f) This section shall not apply to impositions or increases of
capital facilities fees subject to Section 54999.3.


State Codes and Statutes

Statutes > California > Gov > 54999-54999.7

GOVERNMENT CODE
SECTION 54999-54999.7



54999.  (a) The Legislature finds and declares that many public
entities that provide public utility service have imposed capital
facilities fees applicable to users of public utility facilities in
order to equitably apportion the cost of capital facilities
construction or expansion required by all public and private users of
the facilities. In the recent decision in San Marcos Water Dist. v.
San Marcos Unified School Dist., 42 Cal. 3d 154, the California
Supreme Court held that public entities cannot be made subject to
these fees without statutory authorization. As a result, the fiscal
stability and service capabilities of the affected public utility
service agencies which have in good faith collected and spent these
fees for capital improvements are seriously impaired as is the
ability to finance essential future facilities.
   (b) The Legislature further finds that the holding in the San
Marcos Water Dist. v. San Marcos Unified School Dist., 42 Cal. 3d
154, should be revised to authorize payment and collection of capital
facilities fees subject to the limitations set forth in this
chapter, and in furtherance of this finding the Legislature hereby
enacts the following provisions.



54999.1.  For purposes of this chapter:
   (a) "Actual construction costs" includes the cost of all
activities necessary or incidental to the construction of a public
utility facility, such as financing, planning, designing, acquisition
of property or interests in property, construction, reconstruction,
and rehabilitation.
   (b) "Capacity charge" means a one-time charge to recover the costs
of public utility facilities necessary to establish new or expand
existing public utility service to a public agency.
   (c) (1) "Capital facilities fee" means a nondiscriminatory
connection fee, a nondiscriminatory capacity charge, or both.
"Capital facilities fee" does not include any other rate, charge, or
surcharge, or any capital component thereof.
   (2) For purposes of this subdivision, "nondiscriminatory" means
that the fee does not exceed an amount determined on the basis of the
same objective criteria and methodology applicable to comparable
nonpublic users, and is not in excess of the proportionate share of
the cost of the public utility facilities of benefit to the person or
property being charged, based upon the proportionate share of use of
those facilities.
   (d) "Connection fee" means a fee to recover the costs of the
physical facilities necessary to directly connect a public agency
facility to a public utility service provided by a public agency,
including, but not limited to, meters, meter boxes, and pipelines to
make the connection, and the actual cost of labor and materials for
the installation of those facilities.
   (e) "Public agency" means the United States or any of its
agencies, the state or any of its agencies, the California State
University, the Regents of the University of California, a county, a
county office of education, a city, a school district, community
college district, or any other district, a public authority, or any
other political subdivision or public corporation of this state.
   (f) "Public school" means the California State University, the
Regents of the University of California, a county office of
education, a school district, or a community college district.
   (g) "Public utility facility" means a facility for the provision
of water, light, heat, communications, power, or garbage service, for
flood control, drainage or sanitary purposes, or sewage collection,
treatment, or disposal.
   (h) "Public utility service" means service for water, light, heat,
communications, power, or garbage, or for flood control, drainage or
sanitary purposes, or sewage collection, treatment, or disposal,
provided by a public agency.
   (i) "State agency" or "state" means any state office, department,
division, bureau, board, or commission.



54999.2.  Any public agency providing public utility service on or
after July 21, 1986, may continue to charge, or may increase, an
existing capital facilities fee, or may impose a new capital
facilities fee after that date, and any public agency receiving a
public utility's service shall pay those fees so imposed, except as
provided in Sections 54999.3 and 54999.35.



54999.3.  However, the imposition of a capital facilities fee on any
school district, county office of education, community college
district, the California State University, the University of
California, or state agency shall be subject to the following:
   (a) Where necessary to defray the actual construction costs of
that portion of a public utility facility actually serving a public
agency, any public agency providing public utility service on or
after July 21, 1986, may continue to charge any capital facilities
fee which was imposed prior to that date on the public agency using
the public utility service and was not protested or challenged
pursuant to law prior to January 1, 1987, or increase that capital
facility fee in an amount not to exceed the percentage increase in
the Implicit Price Deflator for State and Local Government Purchases,
as determined by the Department of Finance and any public agency
shall pay any capital facilities fees authorized by this subdivision.
   (b) On and after July 21, 1986, any public agency proposing to
initially impose a capital facilities fee or to increase an existing
capital facilities fee in excess of the amount set forth in
subdivision (a), may do so after agreement has been reached between
the two agencies through negotiations entered into by both parties.
   (c) Upon request of the affected public agency or upon increase
pursuant to subdivision (a), the public agency imposing or increasing
the fee shall identify the amount of the capital facilities fee. The
public agency imposing or increasing the capital facilities fee has
the burden of producing evidence to establish that the capital
facilities fee is nondiscriminatory and that the amount of the
capital facilities fee does not exceed the amount necessary to
provide capital facilities for which the fee is charged.




54999.35.  (a) This section shall apply only to a local publicly
owned electric utility or other public agency providing public
electric utility service to a public agency in its service territory,
as specified in subdivision (b). "Local publicly owned electric
utility" as used in this section means all of the following:
   (1) A municipality or municipal corporation operating as a "public
utility" furnishing electric commodity or electric service as
provided in Section 10001 of the Public Utilities Code.
   (2) Any special district furnishing electric commodity or electric
service, including, but not limited to, any of the following:
   (A) A resort improvement district formed pursuant to Division 11
(commencing with Section 13000) of the Public Resources Code.
   (B) A municipal utility district formed pursuant to Division 6
(commencing with Section 11501) of the Public Utilities Code.
   (C) A public utility district formed pursuant to the Public
Utility District Act set forth in Division 7 (commencing with Section
15501) of the Public Utilities Code.
   (D) An irrigation district formed pursuant to the Irrigation
District Law set forth in Division 11 (commencing with Section 20500)
of the Water Code.
   (3) A joint powers authority that includes one or more of these
agencies that furnishes electric commodity or electric service over
its own or its member's electric distribution system.
   (b) The imposition of a capital facilities fee for electric
utility service on any school district, county office of education,
community college district, the California State University, the
University of California, or state agency by a public agency
providing public utility service shall be subject to all of the
following:
   (1) Where necessary to defray the actual construction costs of
that portion of a public utility facility actually serving a public
agency, any public agency providing public utility service on or
after July 21, 1986, may continue to charge any capital facilities
fee that was imposed prior to that date on the public agency using
the public utility service and that was not protested or challenged
pursuant to law prior to January 1, 1987, or increase that capital
facility fee in an amount not to exceed the percentage increase in
the Implicit Price Deflator for State and Local Government Purchases,
as determined by the Department of Finance, and any public agency
shall pay any capital facilities fees authorized by this subdivision.
   (2) Any public agency proposing to initially impose a capital
facilities fee or to increase an existing capital facilities fee in
excess of the amount set forth in paragraph (1), may do so after
agreement has been reached between the two agencies through
negotiations entered into by both parties.
   (3) Upon request of the affected public agency or upon increase
pursuant to paragraph (1), the public agency imposing or increasing
the fee shall identify the amount of the capital facilities fee. The
public agency imposing or increasing the capital facilities fee has
the burden of producing evidence to establish all of the following:
   (A) The capital facilities fee is nondiscriminatory.
   (B) The amount of the capital facilities fee does not exceed the
amount necessary to provide capital facilities for which the fee is
charged.
   (C) The capital facilities fee complies with the requirements set
forth in paragraph (1).
   (4) A public agency proposing to enact or increase capital
facilities fees under this section shall notify by certified mail any
school district, county office of education, community college
district, California State University, University of California, or
state agency located within its service area that is an electric
utility customer of the public agency, not less than 30 days prior to
the date of any hearing set to consider an ordinance resolution, or
motion enacting or increasing a capital facilities fee. The notice
shall state the date, time, and place of any hearing. The notice
shall also state that the public agency proposes to impose a new
capital facilities fee or to increase an existing capital facilities
fee in an amount that either complies with the requirements of
paragraph (1) or in an amount that exceeds capital facilities fees
permissible under paragraph (1).
   (5) The notice described in paragraph (4) shall designate an
individual at the public agency who shall make available, upon
request, for inspection by any school district, county office of
education, community college district, California State University,
University of California, or state agency located within its service
area, the information relied upon in setting the fee or increase,
including the methodology used to calculate and allocate the capital
expenditures giving rise to the fee or increase, and an
identification of the capital facilities that contribute to the fee
or increase, as well as any other information relevant to determining
whether or not the fee or increase complies with the provisions of
this section. The affected school district, county office of
education, community college district, California State University,
University of California, or state agency shall designate the
individual who is to receive the notice, and the public agency
providing public utility service shall direct the notice to that
individual. If no specific individual is designated, then the notice
shall be addressed to the billing address of the affected facility.
In the case of an affected state agency, after an initial notice has
been delivered by certified mail to the billing address of the
affected state agency facility, subsequent notice may be directed to
the billing address of the state agency by first-class mail, unless
the affected state agency specifically requests that the notice be
directed to a designated individual by certified mail. A subsequent
notice to other affected public agency facilities shall be by
certified mail directed to the billing address of the affected
facility.
   (6) Any judicial action or proceeding to protest or challenge a
rate or charge that contains a capital facilities fee or to seek a
refund of any capital facilities fee imposed on or after July 1,
2000, shall be commenced within 120 days of the effective date of the
ordinance, resolution, or motion enacting or increasing the rate,
charge, or capital facilities fee, provided that the notice and
disclosure requirements of paragraphs (4) and (5) have been followed.
If the notice and disclosure requirements of paragraphs (4) and (5)
have not been complied with, the 120-day limitation period is not
applicable to the judicial action or proceeding to protest or
challenge a rate or charge or to seek the refund of any capital
facilities fee imposed on or after July 1, 2000.
   (7) No limitation period in Chapter 9 (commencing with Section
860) of Title 10 of Part 2 of the Code of Civil Procedure may bar any
judicial action, proceeding or appeal protesting or seeking a refund
of a rate, charge, capital facilities fee or capital facilities fee
component of a rate or charge imposed on or after April 1, 2000, if
the notice and disclosure requirements of paragraphs (4) and (5) have
not been followed.



54999.4.  Any capital facilities fees paid prior to March 24, 1988,
and not protested or challenged pursuant to law on or before January
1, 1987, shall not be subject to refund, except for capital
facilities fees paid after July 21, 1986, by a public agency subject
to Section 54999.3 that are in excess of the maximum amount
authorized by Sections 54999.3 and 54999.35. Agreements entered into
prior to or after March 24, 1988, for the payment of capital
facilities fees or capacity charges shall be effective.



54999.5.  Capital facilities fees paid by school districts for
public utility facilities to serve school facilities for which an
application for funding is filed on or after the effective date of
this chapter may, for purposes of Chapter 12 (commencing with Section
17000) of Part 10 of the Education Code, be included by the State
Allocation Board as a "cost of project" within the meaning of
subdivision (b) of Section 17702 of the Education Code.



54999.6.  Should any provision or clause of this chapter or
application thereof to any person or circumstance be held invalid or
unconstitutional, that invalidity or unconstitutionality shall not
affect other provisions or applications thereof which can be given
effect without the invalid provision or application and, to this end,
the provisions of this chapter are declared severable. By adopting
this chapter, the Legislature hereby declares that it would have
adopted this chapter without that provision or provisions.



54999.7.  (a) Any public agency providing public utility service may
impose a fee, including a rate, charge, or surcharge, for any
product, commodity, or service provided to a public agency, and any
public agency receiving service from a public agency providing public
utility service shall pay that fee so imposed. Such a fee for public
utility service, other than electricity or gas, shall not exceed the
reasonable cost of providing the public utility service.
   (b)  A fee, including a rate, charge, or surcharge, for any
product, commodity, or service provided to a public agency, shall be
determined on the basis of the same objective criteria and
methodology applicable to comparable nonpublic users, based on
customer classes established in consideration of service
characteristics, demand patterns, and other relevant factors.
   (c) A public agency providing public utility service shall
complete a cost of service study at least once every 10 years that
addresses the cost of providing public utility service to public
schools. The study shall describe the methodology for the
determination of cost responsibility, which may be identified by
reference to appropriate industry ratemaking principles, including
guidance associated with designing and developing water rates and
charges issued by the American Water Works Association or guidance
associated with other comparable industry principles recognized by
public agencies providing public utility service.
   (d) In addition to other notices required pursuant to state law or
local ordinance or rule, whenever a public agency that provides
public utility service holds a public meeting to establish or
increase any rate, charge, surcharge, or fee, that public agency
shall provide a written notice of the meeting not less than 60 days
prior to the date of the public meeting to any public agency that has
filed a written request for such a notice with either the clerk of
the governing body or with any other person designated by the
governing body to receive these requests.
   (e) Upon request of any affected public agency made not less than
30 days prior to the date of the public meeting to establish or
increase any rate, charge, surcharge, or fee, a public agency that
provides public utility service shall provide the affected public
agency with the data and proposed methodology for establishing or
increasing the rate, charge, surcharge, or fee. The data and proposed
methodology may be provided during a meeting of staff or other
representatives of each agency.
   (f) This section shall not apply to impositions or increases of
capital facilities fees subject to Section 54999.3.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Gov > 54999-54999.7

GOVERNMENT CODE
SECTION 54999-54999.7



54999.  (a) The Legislature finds and declares that many public
entities that provide public utility service have imposed capital
facilities fees applicable to users of public utility facilities in
order to equitably apportion the cost of capital facilities
construction or expansion required by all public and private users of
the facilities. In the recent decision in San Marcos Water Dist. v.
San Marcos Unified School Dist., 42 Cal. 3d 154, the California
Supreme Court held that public entities cannot be made subject to
these fees without statutory authorization. As a result, the fiscal
stability and service capabilities of the affected public utility
service agencies which have in good faith collected and spent these
fees for capital improvements are seriously impaired as is the
ability to finance essential future facilities.
   (b) The Legislature further finds that the holding in the San
Marcos Water Dist. v. San Marcos Unified School Dist., 42 Cal. 3d
154, should be revised to authorize payment and collection of capital
facilities fees subject to the limitations set forth in this
chapter, and in furtherance of this finding the Legislature hereby
enacts the following provisions.



54999.1.  For purposes of this chapter:
   (a) "Actual construction costs" includes the cost of all
activities necessary or incidental to the construction of a public
utility facility, such as financing, planning, designing, acquisition
of property or interests in property, construction, reconstruction,
and rehabilitation.
   (b) "Capacity charge" means a one-time charge to recover the costs
of public utility facilities necessary to establish new or expand
existing public utility service to a public agency.
   (c) (1) "Capital facilities fee" means a nondiscriminatory
connection fee, a nondiscriminatory capacity charge, or both.
"Capital facilities fee" does not include any other rate, charge, or
surcharge, or any capital component thereof.
   (2) For purposes of this subdivision, "nondiscriminatory" means
that the fee does not exceed an amount determined on the basis of the
same objective criteria and methodology applicable to comparable
nonpublic users, and is not in excess of the proportionate share of
the cost of the public utility facilities of benefit to the person or
property being charged, based upon the proportionate share of use of
those facilities.
   (d) "Connection fee" means a fee to recover the costs of the
physical facilities necessary to directly connect a public agency
facility to a public utility service provided by a public agency,
including, but not limited to, meters, meter boxes, and pipelines to
make the connection, and the actual cost of labor and materials for
the installation of those facilities.
   (e) "Public agency" means the United States or any of its
agencies, the state or any of its agencies, the California State
University, the Regents of the University of California, a county, a
county office of education, a city, a school district, community
college district, or any other district, a public authority, or any
other political subdivision or public corporation of this state.
   (f) "Public school" means the California State University, the
Regents of the University of California, a county office of
education, a school district, or a community college district.
   (g) "Public utility facility" means a facility for the provision
of water, light, heat, communications, power, or garbage service, for
flood control, drainage or sanitary purposes, or sewage collection,
treatment, or disposal.
   (h) "Public utility service" means service for water, light, heat,
communications, power, or garbage, or for flood control, drainage or
sanitary purposes, or sewage collection, treatment, or disposal,
provided by a public agency.
   (i) "State agency" or "state" means any state office, department,
division, bureau, board, or commission.



54999.2.  Any public agency providing public utility service on or
after July 21, 1986, may continue to charge, or may increase, an
existing capital facilities fee, or may impose a new capital
facilities fee after that date, and any public agency receiving a
public utility's service shall pay those fees so imposed, except as
provided in Sections 54999.3 and 54999.35.



54999.3.  However, the imposition of a capital facilities fee on any
school district, county office of education, community college
district, the California State University, the University of
California, or state agency shall be subject to the following:
   (a) Where necessary to defray the actual construction costs of
that portion of a public utility facility actually serving a public
agency, any public agency providing public utility service on or
after July 21, 1986, may continue to charge any capital facilities
fee which was imposed prior to that date on the public agency using
the public utility service and was not protested or challenged
pursuant to law prior to January 1, 1987, or increase that capital
facility fee in an amount not to exceed the percentage increase in
the Implicit Price Deflator for State and Local Government Purchases,
as determined by the Department of Finance and any public agency
shall pay any capital facilities fees authorized by this subdivision.
   (b) On and after July 21, 1986, any public agency proposing to
initially impose a capital facilities fee or to increase an existing
capital facilities fee in excess of the amount set forth in
subdivision (a), may do so after agreement has been reached between
the two agencies through negotiations entered into by both parties.
   (c) Upon request of the affected public agency or upon increase
pursuant to subdivision (a), the public agency imposing or increasing
the fee shall identify the amount of the capital facilities fee. The
public agency imposing or increasing the capital facilities fee has
the burden of producing evidence to establish that the capital
facilities fee is nondiscriminatory and that the amount of the
capital facilities fee does not exceed the amount necessary to
provide capital facilities for which the fee is charged.




54999.35.  (a) This section shall apply only to a local publicly
owned electric utility or other public agency providing public
electric utility service to a public agency in its service territory,
as specified in subdivision (b). "Local publicly owned electric
utility" as used in this section means all of the following:
   (1) A municipality or municipal corporation operating as a "public
utility" furnishing electric commodity or electric service as
provided in Section 10001 of the Public Utilities Code.
   (2) Any special district furnishing electric commodity or electric
service, including, but not limited to, any of the following:
   (A) A resort improvement district formed pursuant to Division 11
(commencing with Section 13000) of the Public Resources Code.
   (B) A municipal utility district formed pursuant to Division 6
(commencing with Section 11501) of the Public Utilities Code.
   (C) A public utility district formed pursuant to the Public
Utility District Act set forth in Division 7 (commencing with Section
15501) of the Public Utilities Code.
   (D) An irrigation district formed pursuant to the Irrigation
District Law set forth in Division 11 (commencing with Section 20500)
of the Water Code.
   (3) A joint powers authority that includes one or more of these
agencies that furnishes electric commodity or electric service over
its own or its member's electric distribution system.
   (b) The imposition of a capital facilities fee for electric
utility service on any school district, county office of education,
community college district, the California State University, the
University of California, or state agency by a public agency
providing public utility service shall be subject to all of the
following:
   (1) Where necessary to defray the actual construction costs of
that portion of a public utility facility actually serving a public
agency, any public agency providing public utility service on or
after July 21, 1986, may continue to charge any capital facilities
fee that was imposed prior to that date on the public agency using
the public utility service and that was not protested or challenged
pursuant to law prior to January 1, 1987, or increase that capital
facility fee in an amount not to exceed the percentage increase in
the Implicit Price Deflator for State and Local Government Purchases,
as determined by the Department of Finance, and any public agency
shall pay any capital facilities fees authorized by this subdivision.
   (2) Any public agency proposing to initially impose a capital
facilities fee or to increase an existing capital facilities fee in
excess of the amount set forth in paragraph (1), may do so after
agreement has been reached between the two agencies through
negotiations entered into by both parties.
   (3) Upon request of the affected public agency or upon increase
pursuant to paragraph (1), the public agency imposing or increasing
the fee shall identify the amount of the capital facilities fee. The
public agency imposing or increasing the capital facilities fee has
the burden of producing evidence to establish all of the following:
   (A) The capital facilities fee is nondiscriminatory.
   (B) The amount of the capital facilities fee does not exceed the
amount necessary to provide capital facilities for which the fee is
charged.
   (C) The capital facilities fee complies with the requirements set
forth in paragraph (1).
   (4) A public agency proposing to enact or increase capital
facilities fees under this section shall notify by certified mail any
school district, county office of education, community college
district, California State University, University of California, or
state agency located within its service area that is an electric
utility customer of the public agency, not less than 30 days prior to
the date of any hearing set to consider an ordinance resolution, or
motion enacting or increasing a capital facilities fee. The notice
shall state the date, time, and place of any hearing. The notice
shall also state that the public agency proposes to impose a new
capital facilities fee or to increase an existing capital facilities
fee in an amount that either complies with the requirements of
paragraph (1) or in an amount that exceeds capital facilities fees
permissible under paragraph (1).
   (5) The notice described in paragraph (4) shall designate an
individual at the public agency who shall make available, upon
request, for inspection by any school district, county office of
education, community college district, California State University,
University of California, or state agency located within its service
area, the information relied upon in setting the fee or increase,
including the methodology used to calculate and allocate the capital
expenditures giving rise to the fee or increase, and an
identification of the capital facilities that contribute to the fee
or increase, as well as any other information relevant to determining
whether or not the fee or increase complies with the provisions of
this section. The affected school district, county office of
education, community college district, California State University,
University of California, or state agency shall designate the
individual who is to receive the notice, and the public agency
providing public utility service shall direct the notice to that
individual. If no specific individual is designated, then the notice
shall be addressed to the billing address of the affected facility.
In the case of an affected state agency, after an initial notice has
been delivered by certified mail to the billing address of the
affected state agency facility, subsequent notice may be directed to
the billing address of the state agency by first-class mail, unless
the affected state agency specifically requests that the notice be
directed to a designated individual by certified mail. A subsequent
notice to other affected public agency facilities shall be by
certified mail directed to the billing address of the affected
facility.
   (6) Any judicial action or proceeding to protest or challenge a
rate or charge that contains a capital facilities fee or to seek a
refund of any capital facilities fee imposed on or after July 1,
2000, shall be commenced within 120 days of the effective date of the
ordinance, resolution, or motion enacting or increasing the rate,
charge, or capital facilities fee, provided that the notice and
disclosure requirements of paragraphs (4) and (5) have been followed.
If the notice and disclosure requirements of paragraphs (4) and (5)
have not been complied with, the 120-day limitation period is not
applicable to the judicial action or proceeding to protest or
challenge a rate or charge or to seek the refund of any capital
facilities fee imposed on or after July 1, 2000.
   (7) No limitation period in Chapter 9 (commencing with Section
860) of Title 10 of Part 2 of the Code of Civil Procedure may bar any
judicial action, proceeding or appeal protesting or seeking a refund
of a rate, charge, capital facilities fee or capital facilities fee
component of a rate or charge imposed on or after April 1, 2000, if
the notice and disclosure requirements of paragraphs (4) and (5) have
not been followed.



54999.4.  Any capital facilities fees paid prior to March 24, 1988,
and not protested or challenged pursuant to law on or before January
1, 1987, shall not be subject to refund, except for capital
facilities fees paid after July 21, 1986, by a public agency subject
to Section 54999.3 that are in excess of the maximum amount
authorized by Sections 54999.3 and 54999.35. Agreements entered into
prior to or after March 24, 1988, for the payment of capital
facilities fees or capacity charges shall be effective.



54999.5.  Capital facilities fees paid by school districts for
public utility facilities to serve school facilities for which an
application for funding is filed on or after the effective date of
this chapter may, for purposes of Chapter 12 (commencing with Section
17000) of Part 10 of the Education Code, be included by the State
Allocation Board as a "cost of project" within the meaning of
subdivision (b) of Section 17702 of the Education Code.



54999.6.  Should any provision or clause of this chapter or
application thereof to any person or circumstance be held invalid or
unconstitutional, that invalidity or unconstitutionality shall not
affect other provisions or applications thereof which can be given
effect without the invalid provision or application and, to this end,
the provisions of this chapter are declared severable. By adopting
this chapter, the Legislature hereby declares that it would have
adopted this chapter without that provision or provisions.



54999.7.  (a) Any public agency providing public utility service may
impose a fee, including a rate, charge, or surcharge, for any
product, commodity, or service provided to a public agency, and any
public agency receiving service from a public agency providing public
utility service shall pay that fee so imposed. Such a fee for public
utility service, other than electricity or gas, shall not exceed the
reasonable cost of providing the public utility service.
   (b)  A fee, including a rate, charge, or surcharge, for any
product, commodity, or service provided to a public agency, shall be
determined on the basis of the same objective criteria and
methodology applicable to comparable nonpublic users, based on
customer classes established in consideration of service
characteristics, demand patterns, and other relevant factors.
   (c) A public agency providing public utility service shall
complete a cost of service study at least once every 10 years that
addresses the cost of providing public utility service to public
schools. The study shall describe the methodology for the
determination of cost responsibility, which may be identified by
reference to appropriate industry ratemaking principles, including
guidance associated with designing and developing water rates and
charges issued by the American Water Works Association or guidance
associated with other comparable industry principles recognized by
public agencies providing public utility service.
   (d) In addition to other notices required pursuant to state law or
local ordinance or rule, whenever a public agency that provides
public utility service holds a public meeting to establish or
increase any rate, charge, surcharge, or fee, that public agency
shall provide a written notice of the meeting not less than 60 days
prior to the date of the public meeting to any public agency that has
filed a written request for such a notice with either the clerk of
the governing body or with any other person designated by the
governing body to receive these requests.
   (e) Upon request of any affected public agency made not less than
30 days prior to the date of the public meeting to establish or
increase any rate, charge, surcharge, or fee, a public agency that
provides public utility service shall provide the affected public
agency with the data and proposed methodology for establishing or
increasing the rate, charge, surcharge, or fee. The data and proposed
methodology may be provided during a meeting of staff or other
representatives of each agency.
   (f) This section shall not apply to impositions or increases of
capital facilities fees subject to Section 54999.3.