BILL ANALYSIS AB 2613 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2613 (Beall) As Amended June 30, 2010 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |44-30|(May 13, 2010) |SENATE: |21-11|(August 20, | | | | | | |2010) | ----------------------------------------------------------------- Original Committee Reference: L. GOV. SUMMARY : Authorizes a city or county after notice and public hearing, to order unpaid fines or penalties related to ordinance violations on real property to be specially assessed against the parcel. The Senate amendments : 1)Provide that the assessment does not constitute a lien until a notice of lien is recorded pursuant to the provisions of this bill. 2)Provide that the notice of lien shall identify the Assessor's Parcel Number. 3)Insert a cross-reference to local governments' existing authority to appoint hearing officers to hear and decide issues regarding ordinance violations and the imposition of administrative fines and penalties. 4)Insert a cross-reference to cities' authority to adopt administrative procedures for nuisance abatement. 5)Clarify that a special assessment levied pursuant to the provisions of this bill does not automatically become a tax lien on the real property. EXISTING LAW : 1)Permits the legislative body of a city, county, school district, municipal corporation, district, political subdivision, or any board, commission, or agency thereof, or other local public agency to make any violation of any ordinance enacted by the legislative body subject to an AB 2613 Page 2 administrative fine or penalty. 2)Permits cities and counties to establish by ordinance a procedure to collect nuisance abatement costs and related administrative costs by a nuisance abatement lien or a special assessment. 3)Allows a county board of supervisors to delegate its powers and duties to establish a nuisance abatement procedure to a hearing officer pursuant to statutory provisions governing hearing officers. AS PASSED BY THE ASSEMBLY , this bill: 1)Authorized a city or county after notice and public hearing to specially assess and record a lien for any fines or penalties resulting from an ordinance violation on the real property that the fines or penalties are being assessed or recorded on if the owner of the real property fails to pay those fines or penalties after demand by the city or county. 2)Provided the assessment imposed by a city or county may be collected at the same time and in the same manner as ordinary county taxes are collected. 3)Required the assessment imposed by a city or county be subject to the same penalties and the same procedure and sale in case of delinquency as are provided for ordinary county taxes. 4)Required the special assessment to not result in a lien against the real property but instead to be transferred to the unsecured roll for collection when a city or county specially assesses a real property and does not record a notice of lien prior to a date on which the first installment of county taxes would become delinquent and the real property has been transferred or conveyed to a bona fide purchaser of value or a lien on a bona fide encumbrancer for value has been created and attaches to that real property. 5)Authorized a city or county through an ordinance to combine the administrative procedures adopted for the imposition, enforcement, collection, and administrative review for administrative fines or penalties related to the violation of any ordinance with nuisance abatement procedures that are adopted through ordinance. AB 2613 Page 3 6)Authorized a city, county, school district, municipal corporation, district, political subdivision, or any board, commission, or agency thereof, or other local public agency to appoint one or more hearing officers to hear and decide issues regarding ordinance violations and the imposition of fines and penalties. FISCAL EFFECT : None COMMENTS : SB 814 (Alquist, Kopp), Chapter 898, Statutes of 1995, which added Government Code (GC) Section 53069.4, was intended to facilitate the implementation of the Administrative Citation Ordinance as an efficient code enforcement methodology that would avoid the necessity of a criminal prosecution. Specifically, GC Section 53069.4 was written to allow administrative citations to closely mirror the parking citation program. Subsequent amendments to that code section dealt with accommodating changes in the municipal and superior courts. Under existing law, cities and counties are authorized to establish by ordinance a procedure to collect nuisance abatement costs and related administrative costs by a nuisance abatement lien or a special assessment. At one point, there was a concern that special assessments for the purpose of collecting the costs of nuisance abatement were too slow a process for cities and counties and were frustrating for private lenders. Alternatively, abatement liens were seen as a viable way to speed up cost recovery and relieve lenders' worries because, unlike special assessments, which are "superliens" and jump to the front of the line when collection comes due, abatement liens assume a sequential priority with respect to other financial claims against the real property. According to the author, this bill is intended to allow local governments to make their code enforcement processes more efficient and effective by authorizing them to make unpaid fine and penalties for property-related code violations by a special assessment against the property, allowing them to streamline their code enforcement processes by combining their fine and penalties and nuisance abatement processes. This bill also will allow for a more streamlined process for hearing officers for these administrative procedures. AB 2317 (Saldana), a similar bill, authorizes cities and AB 2613 Page 4 counties to collect fines related to nuisance abatement using a nuisance abatement lien or a special assessment. Support arguments: Supporters, County of Santa Clara, say, unfortunately, not all property owners are responsive to notices that the condition of their property endangers public safety or is a public nuisance. By allowing local agencies to make unpaid fines and penalties a special assessment against the property, local agencies would have an alternative to expensive and time-consuming civil litigation. Also being able to use hearing officers to administer these processes will streamline code enforcement activities. Opposition arguments: Opposition, Cal-Tax, says liens are a powerful tool that should only be used in the most limited circumstances. Expanding the liabilities for which a lien may be imposed to fines could incentivize local governments to increase fines and set a precedent for further expanding special assessments and liens. Howard Jarvis Taxpayers Association argues elected officials should have the final say on fines collected by a municipality and should not be allowed to delegate this authority to county hearing officers. Analysis Prepared by : Debbie Michel / L. GOV. / (916) 319-3958 FN: 0005198