BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2613
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2613 (Beall)
          As Amended  June 30, 2010
          Majority vote
           
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          |ASSEMBLY:  |44-30|(May 13, 2010)  |SENATE: |21-11|(August 20,    |
          |           |     |                |        |     |2010)          |
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           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  








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            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.








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          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  








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          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 


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