BILL ANALYSIS Ó AB 129 Page 1 GOVERNOR'S VETO AB 129 (Beall) As Amended August 16, 2011 2/3 vote ----------------------------------------------------------------- |ASSEMBLY: |46-17|(April 14, |SENATE: |22-15|(August 30, | | | |2011) | | |2011) | ----------------------------------------------------------------- ASSEMBLY: 50-27 (September 2, 2011) Original Committee Reference: L. GOV. SUMMARY : Authorizes a city or county after notice and public hearing to specially assess and record a notice of lien for any fines or penalties related to ordinance violations constituting a public nuisance or threat to public health and safety 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. The Senate amendments: 1)Provide that the powers given to the legislative body of a city, county, or city and county under the provisions of this measure are in addition to any other powers of a city, county, or city and county under its charter or any other legal authority. 2)Require a city or county to mail or deliver notice of the hearing at least 15 days prior to the public hearing at least 15 days prior to the hearing to the owner on record of the parcel. 3)Remove public nuisance from the list of items that can cause a lien to be recorded. 4)Add a sunset date of January 1, 2020. EXISTING LAW : 1)Permits the legislative body of a city, county, school district, AB 129 Page 2 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 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 notice of lien for any fines or penalties related to ordinance violations constituting a public nuisance or threat to public health and safety 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)Authorized the assessment imposed by a city or county to be collected at the same time and in the same manner as ordinary county taxes are collected, and requires all laws applicable to the levy, collection, and enforcement of county taxes be applicable to the assessment. 3)Provided the assessment does not constitute an assessment lien, and does not constitute a lien on real property until a notice of lien is recorded, pursuant to these provisions. 4)Required the notice of lien to, at a minimum, do all of the following: a) Identify the assessor's parcel number and record owner; b) Set forth the last known address of the record owner; AB 129 Page 3 c) Set forth the date on which the assessment was ordered by the city or county; and, d) The amount of the lien. 5)Provided the recordation of a notice of lien has the same effect as recordation of an abstract of a money judgment, as recorded according to provisions in the California Code of Civil Procedure. 6)Provided the lien created has the same force, effect, and priority as a judgment lien on real property, and, upon order of the city, county, or any officer authorized by the city or county to act on its behalf, the lien may be released or subordinated in the same manner as a judgment lien on real property may be released or subordinated. 7)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. 8)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 and Kopp), Chapter 898, Statutes of 1995, which added Government Code 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, Government Code 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 AB 129 Page 4 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. The author says existing law allows counties to use hearing officers, but imposes certain procedural and substantive requirements that make the use of hearing officers more onerous and expensive. AB 2613 (Beall) of 2010 contained identical provisions. The Assembly Local Government Committee passed AB 2613 on a 6-3 vote. The Governor vetoed AB 2613, saying: "It is important that the due process rights of homeowners are balanced against a local government's right to collect an ordinance violation fine. The current system that requires a local government to seek judicial approval to impose a lien properly balances these opposing interests." Support arguments: Supporters, County of Santa Clara, say, allowing local agencies to use hearing officers and combine their administrative fine/penalty and nuisance abatement processes, streamlines code enforcement procedures. Also, chronic and unresolved code enforcement situations could be addressed quickly and efficiently under this bill. AB 129 Page 5 Opposition arguments: Opposition, California Taxpayers Association, say 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. GOVERNOR'S VETO MESSAGE : "At a time when property owners are struggling to pay their mortgages, this bill would weaken the due process requirements for local building departments to obtain property liens. "Local governments already have a fair process in place, and I see no reason to change it." Analysis Prepared by: Katie Kolitsos / L. GOV. / (916) 319-3958 FN: 0002924