BILL ANALYSIS Ó AB 683 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 683 (Mullin) As Amended August 12, 2013 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |54-22|(May 9, 2013) |SENATE: |23-12|(September 3, | | | | | | |2013) | ----------------------------------------------------------------- Original Committee Reference: L. GOV. SUMMARY : Authorizes, until January 1, 2020, a city, county, or special district, 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. The Senate amendments extend the bill's authority to special districts and specify that the county, rather than the tax collector, may send a notice of enforcement to the property owner. 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 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. AS PASSED BY THE ASSEMBLY , this bill: 1)Authorized a city, county, or city and county, after notice AB 683 Page 2 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)Required 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)Allowed 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)Declared 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)Provided 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)Provided that, if any administrative fine or penalty remains unpaid for 10 days after a public hearing, as specified in the bill, the county tax collector may send the owner of the parcel via certified mail a notice of enforcement stating that if payment has not been received within 45 days following the date of the notice, a lien will be recorded. If, after the 45-day period following the notice, the fine or penalty has not been paid, the city, county, or city and county may specially assess the cost of the administrative fines or penalties against the parcel and record a notice of lien to perfect the lien. The notice of lien 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)Declared that recordation of a notice of lien has the same effect as recordation of an abstract of a money judgment. The AB 683 Page 3 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)Authorized 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)Provided 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)Declared 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)Sunsetted the bill's provisions on January 1, 2020. FISCAL EFFECT : None COMMENTS : This bill authorizes a city, county, or special district, 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, county, or special district. 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 AB 683 Page 4 ordinances." 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. Cities and counties may also impose administrative fines or penalties for violations of their ordinances if they adopt an 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. The Legislature has approved similar bills twice: AB 129 (Beall) of 2011 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 Legislature may wish to ask the author and sponsor how they plan to address concerns raised in the previous veto messages. Support arguments: Supporters argue that allowing local governments to collect unpaid administrative fines/penalties through the property tax collection system and to combine their administrative fine/penalty and nuisance abatement processes provides local agencies with a more efficient collection AB 683 Page 5 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. Analysis Prepared by : Angela Mapp / L. GOV. / (916) 319-3958 FN: 0001646