BILL NUMBER: AB 261	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Dickinson

                        FEBRUARY 7, 2011

   An act to amend Sections 3712 and 3725 of the Revenue and Taxation
Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 261, as introduced, Dickinson. Property tax: tax-defaulted
property.
   Existing property tax law generally authorizes a county tax
collector to sell tax-defaulted property 5 years or more, or 3 years
or more, as applicable, after that property has become tax defaulted.
Under existing law, when tax-defaulted property is sold, the deed
conveys title to the purchaser free of all encumbrances of any kind
existing before the sale, with specified exceptions including an
exception for specified easements.
   This bill would provide that easements of any kind, including
prescriptive easements, are included within those specified
exceptions to the conveyance of title free of encumbrances.
   Existing law provides that a proceeding based on alleged
invalidity or irregularity of any proceedings instituted in a sale of
tax-defaulted property can only be commenced within a specified
period.
   This bill would provide that such a proceeding can only be
commenced by recorded interest holders and their successors in
interest in the real property, as specified.
   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 3712 of the Revenue and Taxation Code is
amended to read:
   3712.  The deed conveys title to the purchaser free of all
encumbrances of any kind existing before the sale, except:
   (a) Any lien for installments of taxes and special assessments,
that installments will become payable upon the secured roll after the
time of the sale.
   (b) The lien for taxes or assessments or other rights of any
taxing agency that does not consent to the sale under this chapter.
   (c) Liens for special assessments levied upon the property
conveyed that were, at the time of the sale under this chapter, not
included in the amount necessary to redeem the tax-defaulted
property, and, where a taxing agency that collects its own taxes has
consented to the sale under this chapter, not included in the amount
required to redeem from sale to the taxing agency.
   (d) Easements  of any kind, including prescriptive, 
constituting servitudes upon or burdens to the property; water
rights, the record title to which is held separately from the title
to the property; and restrictions of record.
   (e) Unaccepted, recorded, irrevocable offers of dedication of the
property to the public or a public entity for a public purpose, and
recorded options of any taxing agency to purchase the property or any
interest therein for a public purpose.
   (f) Unpaid assessments under the Improvement Bond Act of 1915
(Division 10 (commencing with Section 8500) of the Streets and
Highways Code) that are not satisfied as a result of the sale
proceeds being applied pursuant to Chapter 1.3 (commencing with
Section 4671) of Part 8, or that are being collected through a
foreclosure action pursuant to Part 14 (commencing with Section 8830)
of Division 10 of the Streets and Highways Code. A sale pursuant to
this chapter shall not nullify, eliminate, or reduce the amount of a
foreclosure judgment pursuant to Part 14 (commencing with Section
8830) of Division 10 of the Streets and Highways Code.
   (g) Any federal Internal Revenue Service liens that, pursuant to
provisions of federal law, are not discharged by the sale, even
though the tax collector has provided proper notice to the Internal
Revenue Service before that date.
   (h) Unpaid special taxes under the Mello-Roos Community Facilities
Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1
of Division 2 of Title 5 of the Government Code) that are not
satisfied as a result of the sale proceeds being applied pursuant to
Chapter 1.3 (commencing with Section 4671) of Part 8, or that are
being collected through a foreclosure action pursuant to Section
53356.1 of the Government Code. A sale pursuant to this chapter shall
not nullify, eliminate, or reduce the amount of a foreclosure
judgment pursuant to Section 53356.1 of the Government Code.
  SEC. 2.  Section 3725 of the Revenue and Taxation Code is amended
to read:
   3725.   A   Notwithstanding Part 2
(commencing with Section 307) of the Code of Civil Procedure, a 
proceeding based on alleged invalidity or irregularity of any
proceedings instituted under this chapter can only be commenced 
by recorded interest holders and their successors in interest in the
real property sold at the challenged tax sale  within one year
after the date of execution of the tax collector's deed.
   Sections 351 to 358, inclusive, of the Code of Civil Procedure do
not apply to the time within which a proceeding may be brought under
this section.