BILL NUMBER: SB 1427	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 12, 2010
	AMENDED IN SENATE  APRIL 19, 2010

INTRODUCED BY   Senator Price

                        FEBRUARY 19, 2010

    An act to amend Section 2929.3 of, and   An
act  to add Sections 2929.4 and 2929.45 to  , 
the Civil Code, relating to foreclosures.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1427, as amended, Price. Foreclosures: property maintenance.
   Existing law, until January 1, 2013, requires a legal owner to
maintain vacant residential property purchased at a foreclosure sale,
or acquired by that owner through foreclosure under a mortgage or
deed of trust. Existing law authorizes a governmental entity to
impose civil fines and penalties for failure to maintain that
property of up to $1,000 per day for a violation.  Existing
law provides that these statutory provisions do not preempt any local
ordinances and prohibits a governmental entity from imposing fines
on a legal owner under both these provisions and a local ordinance.

   This bill would  provide that these statutory provisions
preempt any local ordinance and would further provide that the costs
of nuisance abatement measures taken by a governmental entity
authorized under these provisions, are the obligation of the legal
owner and that these fines would be treated as a tax lien against the
property in a foreclosure sale   require a governmental
entity, prior to imposing a fine or penalty for failure to maintain
a vacant property that is subject to a notice of default, that is
purchased at a foreclosure sale, or that is acquired through
foreclosure, to provide the owner of that property with a notice of
the violation and an opportunity to correct the violation. This
notice requirement would not apply if the governmental entity
determines that a specific condition of the property threatens public
health or safety  . The bill would  further  provide
that the costs of nuisance abatement  measures taken by a
governmental entity with regard to property that is subject to a
notice of default, that is purchased at a foreclosure sale, or
acquired through foreclosure,  shall not exceed the actual and
reasonable costs of nuisance abatement  and   .
This bill  would  also  require a governmental entity
to adopt a schedule of the costs of nuisance abatement prior to the
collection of those costs.  This bill would further provide
that any fines or penalties imposed by a local ordinance for failure
to maintain property, subject to a notice of default, that has not
been purchased at a foreclosure sale or acquired through foreclosure
under a mortgage or deed of trust, are the obligation of the owner of
record at the time of the violation and that any lien imposed
against that property shall attach to the parcel upon recordation of
that lien. 
   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 2929.4 is added to the 
 Civil Code   , to read:  
   2929.4.  (a) Prior to imposing a fine or penalty for failure to
maintain a vacant property that is subject to a notice of default,
that is purchased at a foreclosure sale, or that is acquired through
foreclosure under a mortgage or deed of trust, a governmental entity
shall provide the owner of that property with a notice of the
violation and an opportunity to correct that violation.
   (b) This section shall not apply if the governmental entity
determines that a specific condition of the property threatens public
health or safety. 
   SEC. 2.    Section 2929.45 is added to the  
Civil Code   , to read:  
   2929.45.  (a) An assessment or lien to recover the costs of
nuisance abatement measures taken by a governmental entity with
regard to property that is subject to a notice of default, that is
purchased at a foreclosure sale, or that is acquired through
foreclosure under a mortgage or deed of trust, shall not exceed the
actual and reasonable costs of nuisance abatement.
   (b) A governmental entity shall adopt a schedule of costs for
nuisance abatement measures described in subdivision (a) prior to
collection of those costs.  All matter omitted in this version
of the bill appears in the bill as amended in the Senate, April 19,
2010. (JR11)