BILL NUMBER: AB 935	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 4, 2011

INTRODUCED BY   Assembly Member Blumenfield

                        FEBRUARY 18, 2011

    An act to amend Section 27360 of the Government Code,
relating to local government.   An act to add Section
27389 to the Government Code, relating to foreclosures, and making an
appropriation therefor. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 935, as amended, Blumenfield.  County recorders: fees.
  Foreclosures  : foreclosure mitigation
charges. 
    Existing law sets forth the criteria for procedures for the
foreclosure of property, including the filing of various notices with
the county recorder, and generally sets forth the duties of the
county recorder in this regard  . 
   This bill would prohibit a notice of trustee's sale from being
accepted for filing with the county recorder until the mortgage
servicer pays a foreclosure mitigation charge of $20,000. It would
require the county recorder to keep the moneys in trust until a
notice of rescission is filed, at which time the moneys would be
returned to the mortgage servicer, or until a trustee deed of sale is
filed, at which time the moneys would be transmitted to the
Treasurer for deposit in the Foreclosure Mitigation Fund, which would
be created by the bill; the interest earned on the moneys would be
retained by the county recorder in either case. The fund would be
continuously appropriated for distribution by the Treasurer to local
agencies for specified purposes.  
   By imposing a new duty on county recorders in collecting this fee,
the bill would impose a state-mandated local program.  
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason.  
   This bill would make a technical, nonsubstantive change to these
provisions. 
   Vote:  majority   2/3  . Appropriation:
 no   yes  . Fiscal committee:  no
  yes  . State-mandated local program:  no
  yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 27389 is added to the 
 Government Code   , to read:  
   27389.  (a) Notwithstanding any other provision of law, no notice
of trustee's sale shall be accepted for filing with the county
recorder until the mortgage servicer, as defined in subdivision (q)
of Section 50003 of the Financial Code, pays a foreclosure mitigation
charge of twenty thousand dollars ($20,000). The cost of this charge
may not be passed on to borrowers.
   (b) (1) The county recorder shall hold the moneys collected
pursuant to subdivision (a) in trust until either of the following
occurs:
   (A) If a notice of rescission is filed with respect to the
property, the county recorder shall return the moneys to the mortgage
servicer, except as provided in paragraph (2).
   (B) If a trustee deed upon sale is filed with respect to the
property, and except as provided in paragraph (2) the county recorder
shall transmit the moneys to the Treasurer for deposit in the
Foreclosure Mitigation Fund, which is hereby established as a special
fund in the State Treasury.
   (2) The county recorder may retain any interest earned while the
moneys were held in trust pursuant to this subdivision, to cover
administrative costs.
   (c) (1) Moneys in the Foreclosure Mitigation Fund are hereby
continuously appropriated for distribution by the Treasurer to local
agencies, in the same amount as the applicable counties' respective
deposits.
   (2) Moneys distributed to local agencies pursuant to this
subdivision shall be used as follows:
   (A) Twenty percent for K-12 and community college purposes.
   (B) Twenty percent for public safety purposes, including, but not
limited to, local police, county sheriffs, and local fire protection.

   (C) Twenty percent for redevelopment activities within the
jurisdiction of the local agency, including, but not limited to, the
construction of affordable housing.
   (D) Twenty percent for mitigating the effects of foreclosures on
the community, including, but not limited to, reimbursement of the
county recorder's costs in collecting the charge imposed pursuant to
subdivision (a).
   (E) Twenty percent for loans for small businesses within the
jurisdiction of the local agency. 
   SEC. 2.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because a local agency or school district has the
authority to levy service charges, fees, or assessments sufficient to
pay for the program or level of service mandated by this act, within
the meaning of Section 17556 of the Government Code.  
  SECTION 1.    Section 27360 of the Government Code
is amended to read:
   27360.  The county recorder shall charge and collect the fees
fixed in this article for services he or she performs.