BILL NUMBER: AB 1333	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 2, 2008
	AMENDED IN SENATE  MAY 29, 2008
	AMENDED IN SENATE  JUNE 14, 2007

INTRODUCED BY   Assembly Member Hancock
    (   Principal coauthor:   Senator 
 Corbett   ) 
    (   Coauthor:  
Assembly Member   Levine   )


                        FEBRUARY 23, 2007

   An act to add Section 2924.9 to the Civil Code, and to amend 
, repeal, and add  Section 12811.1 of the Public Utilities
Code, relating to utility charges.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1333, as amended, Hancock. Payment of utility charges.
   Existing law regulates the process of foreclosing on real property
subject to a mortgage or deed of trust.
   This bill would require a  trustee, mortgagee, or
beneficiary that acquires   legal owner of  real
property  by judicial or nonjudicial foreclosure, 
to pay a utility service provider for a utility service provided to
the property or its tenants following  the   a
 foreclosure where  the legal owner acquires the property by
judicial or nonjudicial sale or purchases the property at a
foreclosure sale,  the property is residential rental property
 ,  and the tenant or tenants pay the landlord for a utility
service and are not direct customers of the utility service
provider. The bill would require a  trustee, 
mortgagee  ,  or beneficiary that collects utility
charges from a tenant for utility service while foreclosure
proceedings are pending, pursuant to an assignment of rents provision
in a mortgage agreement, to pay the utility service provider for the
utility services for which charges were collected from the tenant.
   The existing Municipal Utility District Act authorizes the
formation of a municipal utility district. The act authorizes a
district to acquire, construct, own, operate, control, or use works
for supplying the inhabitants of the district and public agencies
with light, water, power, heat, transportation, telephone service, or
other means of communication, or means for the collection,
treatment, or disposition of garbage, sewage, or refuse matter. The
act provides that accounts of a municipal utility district that are
delinquent become a lien on the property to which services were
rendered, with the force, effect, and priority of a judgment lien,
when a certificate to this effect is filed for recordation with the
county recorder, but exempts from that provision delinquent fees or
charges for the furnishing of water or sewer service to residential
property or electrical service.
   This bill would delete the exemption for delinquent fees or
charges for the furnishing of water or sewer service to residential
property.  The bill would require a district that places a lien
on a property for water or sewer service to submit to the Assembly
and Senate Committees on Judiciary, on or before Ja   nuary
1, 2013, a report containing specified information regarding the
liens. The bill would repeal these provisions on January 1, 2014.

   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 2924.9 is added to the Civil Code, to read:

   2924.9.  If a trustee, mortgagee, or beneficiary acquires real
property by judicial or nonjudicial foreclosure, where the property
is residential rental property and the tenant or tenants pay the
landlord for a utility service and are not direct customers of the
utility service provider, the trustee, mortgagee, or beneficiary
shall pay the utility service provider for the utility service
provided to the property or its tenants following the foreclosure. A
trustee, mortgagee, or beneficiary that collects utility charges from
a tenant for utility service while foreclosure proceedings are
pending, pursuant to an assignment of rents provision in a mortgage
agreement, shall pay the utility service provider for the utility
services for which charges were collected from the tenant. 
    2924.9.   (a) A legal owner of real property shall
pay the utility service provider for the utility service provided to
a property or its tenants following a foreclosure if all of the
following are true:  
   (1) The legal owner acquires the real property by judicial or
nonjudicial foreclosure or purchases the real property at a
foreclosure sale.  
   (2) The property is residential rental property.  
   (3) The tenant or tenants pay the landlord for a utility service
and are not direct customers of the utility service provider. 
    (b)     A mortgagee or beneficiary that
collects utility charges from a tenant for utility service while
foreclosure proceedings are pending, pursuant to an assignment of
rents provision in a mortgage agreement, shall pay the utility
service provider for the utility services for which charges were
collected from the tenant. 
  SEC. 2.  Section 12811.1 of the Public Utilities Code is amended to
read:
   12811.1.  (a) A district may, by resolution or ordinance, require
the owner of record of real property within the district to pay the
fees, tolls, rates, rentals, or other charges for services rendered
to a lessee, tenant, or subtenant, and those fees, tolls, rates,
rentals, and other charges that have become delinquent, together with
interest and penalties thereon, are a lien on the property when a
certificate is filed in the office of the county recorder pursuant to
subdivision (b) and the lien has the force, effect, and priority of
a judgment lien. No lien may be created under this section on any
publicly owned property.
   (b) A lien under this section attaches when the district files for
recordation in the office of the county recorder a certificate
specifying the amount of the delinquent fees, tolls, rates, rentals,
or other charges together with interest and penalties thereon; the
name of the owner of record of the property to which services were
rendered by the district; and the legal description of the property.
Within 30 days of receipt of payment of all amounts due, including
recordation fees paid by the district, the district shall file for
recordation a release of the lien.
   (c) In filing any instrument for recordation under this section,
the district shall pay the fees specified in Sections 27361 and
27361.4 of the Government Code.
   (d) The remedies in this section are in addition to any other
remedy provided by law.
   (e) This section does not apply to delinquent fees or charges for
the furnishing of electrical service. 
   (f) Any district that places a lien on a property for water or
sewer service pursuant to this section shall submit to the Assembly
and Senate Committees on Judiciary, on or before January 1, 2013, a
report containing all of the following information:  
   (1) The total number of liens created under this section for water
or sewer service and the total dollar amount of those liens. 

   (2) The overall effectiveness of the liens and any problems
associated with the use of those liens.  
   (g) This section shall remain in effect only until January 1,
2014, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2014, deletes or extends
that date. 
   SEC. 3.    Section 12811.1 is added to the  
Public Utilities Code   , to read:  
   12811.1.  (a) A district may, by resolution or ordinance, require
the owner of record of real property within the district to pay the
fees, tolls, rates, rentals, or other charges for services rendered
to a lessee, tenant, or subtenant, and those fees, tolls, rates,
rentals, and other charges that have become delinquent, together with
interest and penalties thereon, are a lien on the property when a
certificate is filed in the office of the county recorder pursuant to
subdivision (b) and the lien has the force, effect, and priority of
a judgment lien. No lien may be created under this section on any
publicly owned property.
   (b) A lien under this section attaches when the district files for
recordation in the office of the county recorder a certificate
specifying the amount of the delinquent fees, tolls, rates, rentals,
or other charges together with interest and penalties thereon; the
name of the owner of record of the property to which services were
rendered by the district; and the legal description of the property.
Within 30 days of receipt of payment of all amounts due, including
recordation fees paid by the district, the district shall file for
recordation a release of the lien.
   (c) In filing any instrument for recordation under this section,
the district shall pay the fees specified in Sections 27361 and
27361.4 of the Government Code.
   (d) The remedies in this section are in addition to any other
remedy provided by law.
   (e) This section does not apply to delinquent fees or charges for
the furnishing of water or sewer service to residential property or
electrical service.
   (f) This section shall become operative on January 1, 2014.