SB 1036: Mitigation Fee Act.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

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 fee’s use and the type of development project on which the fee is imposed.

This bill would require the amount of a fee 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 is attributable only to the development project’s incremental impact on public facilities or services, as provided.

Existing law 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 provide that when a change in the capacity of an existing water or sewer connection is proposed, a local agency, in calculating the estimated reasonable cost of a capacity charge, shall only calculate an amount attributable to the change in the capacity. If the existing capacity exceeds the proposed capacity, the bill would prohibit any amount from being refunded, credited, transferred, assigned, or otherwise applied to offset any other charge or fee.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. June 30, 2026Chaptered by Secretary of State. Chapter 54, Statutes of 2026.
2. June 30, 2026Approved by the Governor.
3. June 24, 2026Enrolled and presented to the Governor at 3 p.m.
4. June 18, 2026In Senate. Ordered to engrossing and enrolling.
5. June 18, 2026Read third time. Passed. (Ayes 61. Noes 0. Page 5760.) Ordered to the Senate.
6. June 4, 2026Read second time. Ordered to third reading.
7. June 3, 2026From committee: Do pass. (Ayes 10. Noes 0.) (June 3).
8. May 11, 2026Referred to Com. on L. GOV.
9. April 27, 2026In Assembly. Read first time. Held at Desk.
10. April 27, 2026Read third time. Passed. (Ayes 37. Noes 0. Page 4066.) Ordered to the Assembly.
11. April 16, 2026Read second time and amended. Ordered to third reading.
12. April 15, 2026From committee: Do pass as amended. (Ayes 7. Noes 0. Page 3904.) (April 15).