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Committee advances bill to require impact-fee credit for prior uses on redevelopment sites

California State Assembly Local Government Committee · June 3, 2026
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Summary

SB 1036, introduced by Senator Grayson, would clarify the Mitigation Fee Act so jurisdictions must credit prior uses on redeveloped sites when calculating new impact fees. The committee passed the measure with no recorded opposition.

The Assembly Local Government Committee moved SB 1036 out of committee after testimony from the author and supporting witnesses. The bill, carried by Senator Grayson, would require jurisdictions to provide credit under the Mitigation Fee Act for any previous use on a site when a redevelopment project proposes similar uses, so impact fees apply only to the new impacts of development.

Senator Grayson told the committee the change will reduce duplicate fees and lower the cost of adaptive reuse or redevelopment projects. "SB 1036 will create a uniform policy that clarifies the impact fees should only be paid on the new impact of that development and what that development causes," the author said.

Michael Ingle of SPUR testified in support, saying the bill ensures fees reflect only new demands on services or facilities. Additional supporters included the California Association of Realtors, AARP (John Valley), the California Building Industry Association, and housing and affordable-housing advocates who said the bill would lower development costs and facilitate reuse of existing sites.

There was no primary opposition in the room. The committee carried a motion to pass SB 1036 (motion by Rubio; second by Stephanie), and the roll call was recorded in the transcript; the committee announced the measure as passed (recorded as 6-0 in the transcript).

Next steps: SB 1036 was moved out of committee and will proceed through the legislative process; supporters said it aims to make impact-fee application more predictable for redevelopment projects.