BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 683
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          Date of Hearing:  April 3, 2013

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                           K.H. "Katcho" Achadjian, Chair
                 AB 683 (Mullin) - As Introduced:  February 21, 2013
           
          SUBJECT  :  Local government: fines and penalties: assessments.

           SUMMARY  :  Authorizes, until January 1, 2020, a city or county,  
          after notice and public hearing, to impose a special assessment  
          and to record a lien against real property that has incurred  
          fines or penalties for violating public health and safety  
          ordinances.  Specifically,  this bill  :  

          1)Authorizes a city, county, or city and county, after notice  
            and public hearing, to order unpaid fines or penalties to be  
            specially assessed against a parcel if the fines or penalties  
            are related to ordinance violations on the real property that  
            constitute a threat to public health and safety.

          2)Requires the city, county, or city and county to mail or  
            deliver notice of the hearing at least 15 days beforehand to  
            the parcel owner.  Ownership of the parcel shall be determined  
            by the latest assessment roll, the records of the county  
            assessor, or the records of the tax collector, whichever is  
            most recent.

          3)Allows the assessment to be collected at the same time and in  
            the same manner as ordinary county taxes and subjects the  
            assessment to the same penalties, procedure and sale in case  
            of delinquency as are provided for ordinary county taxes.

          4)Declares that all laws applicable to the levy, collection, and  
            enforcement of county taxes apply to the special assessment,  
            except that the special assessment is not subject to the  
            priority for special assessment liens pursuant to current law.  
             

          5)Provides that the assessment does not constitute a lien on the  
            real property until a notice of lien is recorded pursuant to  
            this bill's provisions.

          6)Provides that, if a city, county, or city and county specially  
            assesses the cost of the administrative fines or penalties  
            against the parcel, the city, county, or city and county may  








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            record a notice of lien to perfect the lien.  The notice must  
            identify the assessor's parcel number and record owner, set  
            forth the last known address of the record owner, set forth  
            the date upon which assessment was ordered by the city,  
            county, or city and county, and identify the amount of the  
            lien.  

          7)Declares that recordation of a notice of lien has the same  
            effect as recordation of an abstract of a money judgment.  The  
            lien against the parcel has the same force, effect, and  
            priority as a judgment lien on real property.  The city,  
            county, or city and county, or any authorized officer may  
            release or subordinate the lien in the same manner as  
            releasing or subordinating a judgment lien on real property.

          8)Authorizes a city, county, or city and county, by ordinance,  
            to combine the administrative procedures that govern the  
            imposition, enforcement, collection, and administrative review  

          of administrative fines and penalties with existing nuisance  
            abatement procedures authorized in statute for cities and  
            counties.
          9)Provides that the administrative procedures adopted by  
            ordinance governing the imposition, enforcement, collection,  
            and administrative review of administrative fines and  
            penalties may authorize the appointment of hearing officers to  
            hear and decide these issues.

          10)Declares that the powers given to the legislative body of a  
            city, county, or city and county pursuant to this bill and  
            existing law governing the imposition, enforcement,  
            collection, and administrative review of administrative fines  
            and penalties is in addition to any other powers of a city,  
            county, or city and county under its charter or any other  
            legal authority.

          11)Sunsets the bill's provisions on January 1, 2020.

           EXISTING LAW  :

          1)Allows 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)Allows 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.

           FISCAL EFFECT  :  None 

           COMMENTS  :   

          1)This bill authorizes a city or county, after notice and public  
            hearing, to specially assess and record a notice of lien for  
            fines or penalties related to ordinance violations that  
            constitute a threat to public health and safety on the real  
            property for which the fines or penalties are being assessed  
            or recorded, if the owner of the real property fails to pay  
            those fines or penalties after demand by the city or county.   
            According to the author, "AB 683 closes the loop on an anomaly  
            where cities and counties can recover their costs for code  
            enforcement by way of lien or tax assessment - but are not  
            able to similarly enforce fines.  AB 683 allows local  
            governments to enforce local law against those that are in  
            violation of local health and safety ordinances."

          2)Current law allows cities and counties to establish, by  
            ordinance, procedures to recover their costs for abating  
            nuisance conditions on private property.  They can do this via  
            a special assessment or a nuisance abatement lien, and must  
            follow specified notice and (for counties) public hearing  
            requirements beforehand.  Assessments can be collected on the  
            property tax bill, subject to the same penalties, procedures  
            and sale in case of delinquency as for ordinary county or  
            municipal taxes.  All laws regarding the levy, collection and  
            enforcement of county or city taxes apply to the special  
            assessment.  Nuisance abatement liens, once recorded, have the  
            same effect as a judgment lien.  

          3)Cities and counties may also impose administrative fines or  
            penalties for violations of their ordinances if they adopt an  








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            ordinance that specifies the administrative procedures that  
            govern the imposition, enforcement, collection and  
            administrative review of these fines and penalties.  If a fine  
            or penalty remains unpaid, local agencies must go to court to  
            collect.  Supporters note that the court process is lengthy  
            and costly for local jurisdictions to pursue.  This bill  
            provides mechanisms that local jurisdictions may use to  
            collect fines and penalties that mirror the procedures that  
            current law allows for nuisance abatement cost recovery. 

          4)The Legislature has approved the provisions of this bill  
            twice: AB 129 (Beall) of 2011 was identical to this bill, and  
            AB 2613 (Beall) of 2010 contained nearly identical provisions.  
             Both bills were vetoed.  The veto message for AB 129 stated:

            "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."

            The Committee may wish to ask the author and sponsor how they  
            plan to address concerns raised in the previous veto messages.

           5)Support arguments  :  Supporters argue that allowing local  
            agencies to collect unpaid administrative fines/penalties  
            through the property tax collection system and to combine  
            their administrative fine/penalty and nuisance abatement  
            processes provides cities and counties with a more efficient  
            collection mechanism than civil litigation.

             Opposition arguments  :  Opposition could argue that 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 include fines could offer incentives for local  
            governments to increase fines and set a precedent for further  
            expansion of special assessments and liens.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Association of County Treasurers and Tax Collectors  
          [SPONSOR]
          American Federation of State, County and Municipal Employees,  








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          AFL-CIO
          California State Association of Counties
          Santa Clara County Board of Supervisors

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Angela Mapp / L. GOV. / (916) 319-3958