BILL NUMBER: SB 1514 CHAPTERED 07/06/04 CHAPTER 97 FILED WITH SECRETARY OF STATE JULY 6, 2004 APPROVED BY GOVERNOR JULY 5, 2004 PASSED THE ASSEMBLY JUNE 17, 2004 PASSED THE SENATE MAY 17, 2004 AMENDED IN SENATE MAY 10, 2004 AMENDED IN SENATE APRIL 28, 2004 INTRODUCED BY Senator Poochigian FEBRUARY 19, 2004 An act to add Article 8.5 (commencing with Section 53880) to Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code, relating to assessments. LEGISLATIVE COUNSEL'S DIGEST SB 1514, Poochigian. Enforcement of delinquent assessments. Existing law establishes a procedure by which a local agency may acquire any accrued lien, or property required to be sold for nonpayment of an assessment or delinquency incurred by the nonpayment of an assessment. This bill would require that, before any water district, as defined, takes action that will terminate another party's interest in real property as the means of enforcing delinquent assessments, fees, charges, or other levies, the district shall make a reasonable effort, as prescribed, to ascertain the names and addresses of each holder of an interest in the delinquent property that would be terminated by virtue of the action by the district, and shall notify each interest holder, as prescribed, of the intent to take action that would terminate the party's interest in the delinquent property. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Article 8.5 (commencing with Section 53880) is added to Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code, to read: Article 8.5. Notification of Subordinate Interests 53880. Notwithstanding any other provision of law, before a water district, as defined in Section 20200 of the Water Code, takes an action that will terminate another party's interest in real property as the means of collecting or enforcing delinquent assessments, fees, charges, or other levies, the district shall make a reasonable effort to ascertain the names and addresses of each holder of an interest in the delinquent property that would be terminated by the district. The district shall then provide each interest holder not less than 45 days' notice, by certified mail, at that party's last known address, of the intent of the district to take action that would terminate the party's interest in the delinquent property. 53881. For purposes of this article, a district shall be deemed to have made a reasonable effort to ascertain the names and addresses of each party holding an interest in delinquent property if it obtains a title guarantee, lot book guarantee, or similar guarantee from a title company, or searches the official records of the county in which the delinquent property is located. The cost of ascertaining the names and addresses of each party, including without limitation, the costs of any guarantees obtained from title companies, shall be added to the amount of the delinquency that shall be paid in order to cure the delinquency or redeem the delinquent property, or both. 53882. A district that complies with this article shall not be deemed to have denied any party to which notice is required to be given by this article, due process in connection with the termination of that party's interest in the delinquent property resulting from the action of the district as to which notice was provided. A district required by other statutes governing that district to provide notice to each holder of an interest in delinquent property that would be terminated by virtue of an action by the district taken as the means of collecting or enforcing delinquent assessments, fees, charges, or other levies, shall be deemed to have complied with those statutes if notice is provided in accordance with this article. 53883. This article applies only to requirements to give notice to third parties and not to existing statutory requirements to give notice to the owner of the real property as shown on the most recent assessment roll.