Back to California

SB-358 • 2026

Mitigation Fee Act: mitigating vehicular traffic impacts.

Mitigation Fee Act: mitigating vehicular traffic impacts.

Education Housing
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Becker
Last action
2025-10-10
Official status
Chaptered by Secretary of State. Chapter 515, Statutes of 2025.
Effective date
Not listed

Plain English Breakdown

The bill summary and digest do not provide specific details on how local agencies should implement the new requirements.

Mitigation Fee Act: Reducing Traffic Impact Fees for Housing Projects

The Mitigation Fee Act requires local agencies to set lower traffic impact fees for housing developments that meet specific criteria and ensures these findings are based on substantial evidence.

What This Bill Does

  • Requires local agencies to charge lower traffic impact fees if a housing development meets certain characteristics, such as providing fewer parking spaces or being near essential services like supermarkets, pharmacies, or restaurants.
  • Eliminates the requirement for local agencies to set proportional fees when a housing project does not meet all specified criteria.
  • Revises the criteria for determining whether a housing development is eligible for reduced traffic impact fees by focusing on proximity to essential locations instead of convenience retail uses.

Who It Names or Affects

  • Local agencies responsible for approving housing development projects
  • Housing developers who apply for approval under these new criteria

Terms To Know

Substantial Evidence
Evidence that is relevant, material, credible, and of solid weight.
Proportional Fees
Fees charged based on the estimated rate of automobile trips generated by a housing development.

Limits and Unknowns

  • The bill does not specify how local agencies should determine if substantial evidence supports their findings.
  • It is unclear what specific actions local agencies must take to comply with these new requirements.

Bill History

  1. 2025-10-10 California Legislative Information

    Chaptered by Secretary of State. Chapter 515, Statutes of 2025.

  2. 2025-10-10 California Legislative Information

    Approved by the Governor.

  3. 2025-09-16 California Legislative Information

    Enrolled and presented to the Governor at 3 p.m.

  4. 2025-09-08 California Legislative Information

    Assembly amendments concurred in. (Ayes 28. Noes 9. Page 2605.) Ordered to engrossing and enrolling.

  5. 2025-09-03 California Legislative Information

    In Senate. Concurrence in Assembly amendments pending.

  6. 2025-09-03 California Legislative Information

    Read third time. Passed. (Ayes 53. Noes 14. Page 2869.) Ordered to the Senate.

  7. 2025-08-21 California Legislative Information

    Read second time. Ordered to third reading.

  8. 2025-08-20 California Legislative Information

    From committee: Do pass. (Ayes 11. Noes 2.) (August 20).

  9. 2025-07-07 California Legislative Information

    Read second time and amended. Re-referred to Com. on APPR.

  10. 2025-07-03 California Legislative Information

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (July 2).

  11. 2025-06-09 California Legislative Information

    Referred to Com. on L. GOV.

  12. 2025-06-03 California Legislative Information

    In Assembly. Read first time. Held at Desk.

  13. 2025-06-02 California Legislative Information

    Read third time. Passed. (Ayes 27. Noes 11. Page 1378.) Ordered to the Assembly.

  14. 2025-05-28 California Legislative Information

    Read second time. Ordered to third reading.

  15. 2025-05-27 California Legislative Information

    Ordered to second reading.

  16. 2025-05-27 California Legislative Information

    Read third time and amended.

  17. 2025-05-20 California Legislative Information

    Read second time. Ordered to third reading.

  18. 2025-05-19 California Legislative Information

    From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

  19. 2025-05-09 California Legislative Information

    Set for hearing May 19.

  20. 2025-05-01 California Legislative Information

    Read second time and amended. Re-referred to Com. on APPR.

  21. 2025-04-30 California Legislative Information

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 2. Page 968.) (April 30).

  22. 2025-04-11 California Legislative Information

    Set for hearing April 30.

  23. 2025-04-10 California Legislative Information

    April 23 set for first hearing canceled at the request of author.

  24. 2025-03-24 California Legislative Information

    Set for hearing April 23.

  25. 2025-02-19 California Legislative Information

    Referred to Com. on L. GOV.

  26. 2025-02-13 California Legislative Information

    From printer. May be acted upon on or after March 15.

  27. 2025-02-12 California Legislative Information

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 358, Becker.
Mitigation Fee Act: mitigating vehicular traffic impacts.
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. Existing law requires a local agency that imposes a fee on a housing development for the purpose of mitigating vehicular traffic impacts to set the rate for that fee, if the housing development satisfies all of certain prescribed characteristics, to reflect a lower rate of automobile trip generation associated with such housing developments in comparison with housing developments without the prescribed characteristics, unless the local agency adopts findings after a public hearing establishing that the housing development, even with those characteristics, would not generate fewer automobile trips than a housing development without those characteristics.
This bill would require those findings to be supported by substantial evidence in the record before or as part of the housing development project approval process.
Existing law specifies one of those prescribed characteristics described above is that the housing development provides either the minimum number of parking spaces required by the local ordinance, or no more than one onsite parking space for zero- to 2-bedroom units, and 2 onsite parking spaces for 3 or more bedroom units, whichever is less. Under existing law, another prescribed characteristic is that convenience retail uses, as specified, are located within
1
/
2
mile of the housing development.
This bill would revise the characteristic relating to parking spaces, to instead, specify that the housing development provides no
more than one onsite parking space for zero- to 2-bedroom units, and 2 onsite parking spaces for 3 or more bedroom units. The bill would eliminate the characteristic related to convenience retail uses, and instead would add a characteristic that the housing development is located within
1
/
2
mile from 3 or more specified locations, including, among other locations, a supermarket or grocery store, a pharmacy or drugstore, or a restaurant, as defined.
Existing law authorizes a local agency, if a housing development does not satisfy all the prescribed characteristics, to charge a fee that is proportional to the estimated rate of automobile trip
generation associated with the housing development.
This bill would eliminate that express authorization.
By imposing a mandate on local agencies that approve housing development projects with regard to impact fees, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Current Bill Text

Read the full stored bill text
Download Bill PDF