Amended in Senate June 19, 2014

Amended in Assembly April 21, 2014

Amended in Assembly March 24, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 2231


Introduced by Assembly Members Gordon, Levine, and Patterson

February 20, 2014


An act to amend Sections 16181, 16182, 16184, 16186, 16190, 16200, 16210, 16211, and 16211.5 of, to repeal Sections 16185, 16212, 16213, and 16214 of, and to repeal and add Section 16180 of, the Government Code, and to amend Sections 2514,begin insert 2515,end insert 3375,begin insert 3691,end insert20503, 20583, 20584, 20602, 20621, 20622,begin insert 20639.10, 20639.11, 20639.12,end insert 20645.5, and 20645.6 of, to amend and repeal Section 20623 of, to repeal Section 20583.1 of, to add Section 3376 to,begin delete and to repeal Chapter 3.3 (commencing with Section 20639) of Part 10.5 of Division 2 of,end delete the Revenue and Taxation Code, relating to state government, and making an appropriationbegin delete therefor.end deletebegin insert therefor, and declaring the urgency thereof, to take effect immediately.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2231, as amended, Gordon. State Controller: property tax postponement.

The Senior Citizens and Disabled Citizens Property Tax Postponement Law, until February 20, 2009, authorized a claimant, as defined, to file a claim with the Controller to postpone the payment of ad valorem property taxes, if household income, as defined, did not exceed specified amounts. That law authorized the Controller, upon approval of the claim, to either make a payment directly to specified entities, or to issue the claimant a certificate of eligibility that constituted a written promise of the state to pay the amount specified on the certificate, as provided. That law required these payments to be made out of specified funds appropriated to the Controller, and also required certain repaid property tax postponement payments to be paid into an impound account and transferred, as specified, to the General Fund. That law also required all sums paid by the Controller for postponed property taxes to be secured by a lien in favor of the State of California.

Existing law, on and after February 20, 2009, prohibits a person from filing a claim for postponement, and prohibits the Controller from accepting applications for postponement, under the Senior Citizens and Disabled Citizens Property Tax Postponement Law.

This bill would make inoperative the prohibition against a person filing a claim for postponement and the Controller from accepting applications for postponement under the program as of July 1,begin delete 2015,end deletebegin insert 2016,end insert and would repealbegin delete these provisionsend deletebegin insert this prohibitionend insert on January 1,begin delete 2016.end deletebegin insert 2017. This bill would authorize a claim for postponement to be filed after September 1 of the fiscal year in which the postponement that is claimed begins, and on or before April 10 of that fiscal year, as specified.end insert

This bill would exclude losses and nonexpenses from “income” for purposes of these provisions. This bill would also exclude mobilehomes and houseboats from the scope of these provisions,begin delete would repeal the related Senior Citizens Mobilehome Property Tax Postponement Law,end delete and make conforming changes to related provisions.

begin insert

The Senior Citizens Mobilehome Property Tax Postponement Law provides for all amounts postponed in the case of a mobilehome to be due if the claimant dies, unless the surviving spouse or other person eligible to postpone continues to occupy the mobilehome.

end insert
begin insert

This bill would limit this exception to the circumstance in which the surviving spouse who was previously approved continues to occupy the mobilehome.

end insert

This bill would create in the State Treasury a Senior Citizens and Disabled Citizens Property Tax Postponement Fund. This bill would delete the requirement that funds be placed in an impound account and would, instead, require that repaid property tax postponement payments be directly deposited into the newly created fund.begin insert The bill would require any impound account funds remaining on January 1, 2015, to be transferred to the fund.end insert The bill would continuously appropriate these funds to the Controller for purposes of administering the property tax postponement program, as specified.

begin insert

Existing law authorizes the Controller to establish a fee to implement these provisions, not to exceed $10.

end insert
begin insert

This bill would authorize the Controller to charge a fee not exceeding $30.

end insert

Existing law authorizes the Controller to subordinate the lien for postponed property taxes if the Controller determines subordination is appropriate.

This bill would eliminate that authorization and make other conforming changes.

Existing law requires that the owners equity interest in the residential dwelling be at least 20% of the full value of the property in order to be eligible to participate in the postponement program.

This bill would increase the equity requirement to at least 40%.

Existing law requires the repayment of postponed taxes in specified circumstances.

This bill would, in addition, require repayment if the claimant refinances the dwelling or has elected to participate in a revenue mortgage program for the dwelling. The bill would requirebegin insert the assessor to notify the Controller if assessment records applicable to property for which taxes have been postponed reveal a change in ownership within 60 days of having received notification of that change, and requireend insert that the county tax collector notify the Controller within 60 days of all property subject to a “Notice of Lien for Postponed Property Taxes” becoming taxbegin delete defaulted orend deletebegin insert defaulted, becomingend insert subject to collection procedures,begin delete as specified.end deletebegin insert or the claimant for that property, if residential, transferring ownership or changing his or her mailing address, or having been determined to be deceased.end insert

Existing law requires a claim for postponement to be filed after May 15 of the calendar year in which the fiscal year for which postponement is claimed begins, and on or before December 10 of that fiscal year.

This bill would instead require a claim for postponement to be filed after September 1 of the calendar year in which the fiscal year for which postponement is claimed begins, and on or before April 10 of that fiscal year.

Existing law makes optional certain duties of local agencies related to recordation of the tax lien.

This bill would delete that provision, thereby imposing a state-mandated local program.begin insert The bill would require the notice of lien to be recorded within 14 days of the transfer of funds and notice of lien to the county by the Controller. The bill would impose additional requirements in the case of liens upon mobilehome loans established prior to February 20, 2009, and specify procedures to be followed by the Controller if the obligation secured by the lien is paid in full or otherwise discharged.end insert

Existing law requires, if a postponement claim, as specified, is filed timely but before the delinquency date of the first or 2nd installment of property taxes, that any delinquent penalties and interest for the fiscal year be canceled unless the failure to perfect the claim was due to willful neglect on the part of the claimant or representative, in which case the certificates of eligibility for the fiscal year can be used to pay delinquent taxes only if accompanied by sufficient amounts to pay the delinquent interest and penalties.

This bill would instead require, if a postponement claim is filed timely before the delinquency date of the 2nd installment of property taxes on the secured roll, that any delinquent penalties, costs, fees, and interest accrued for the fiscal year be canceled. This bill would instead require, in the event of willful neglect to perfect the claim, that an electronic funds transfer for that current fiscal year be used to pay only the delinquent taxes. This bill would authorize the tax collector, if the payment amount sufficient to pay all of the delinquent penalties, costs, fees, and interest is not received by the tax collector within 30 days from the date of the electronic funds transfer, to return the electronic funds transfer to the Controller to deny the postponement claim. This bill would require the Controller to provide a specified notification to the claimant and a copy of the notification to the tax collector.

This bill would also require the Controller, upon written request of the tax collector, to provide the tax collector with information that is required for the preparation and enforcement of the sale of tax-defaultedbegin delete property, and wouldend deletebegin insert property. The bill would require the tax collector or assessor, in the case of a tax-defaulted property sale, to include the outstanding balance of the property tax postponement loan in the minimum bid. The bill would alsoend insert require the tax collector or his or her designee to certify, under penalty of perjury, that the information is requested for these purposes. This bill would also provide that any information provided to the tax collector is not a public record and is not open to public inspection. By requiring the tax collector to make a certification under penalty of perjury, this bill would expand the crime of perjury thereby imposing a state-mandated local program.

begin insert

Existing law authorizes a tax collector, 5 years or more after a nonresidential commercial property has become tax defaulted, to sell the property, as specified.

end insert
begin insert

This bill would authorize a county to adopt conditions and procedures to delay the sale of property that it deems may be eligible to file a property tax postponement claim, as specified.

end insert

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

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 with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

begin insert

This bill would declare that it is to take effect immediately as an urgency statute.

end insert

Vote: 23. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P5    1

SECTION 1.  

Section 16180 of the Government Code is
2repealed.

3

SEC. 2.  

Section 16180 is added to the Government Code, to
4read:

5

16180.  

(a) There is hereby created in the State Treasury a
6Senior Citizens and Disabled Citizens Property Tax Postponement
7Fund.begin insert The fund shall be an interest-bearing fund.end insert Subject to
8subdivision (b) and notwithstanding Section 13340, the fund is
9continuously appropriated to the Controller, commencing January
101, 2015, for purposes of administering this chapter, including, but
11not limited to, necessary administrative costs and disbursements
12relating to the postponement of property taxes pursuant to the
P6    1Senior Citizens and Disabled Citizens Property Tax Postponement
2Law (Chapter 2 (commencing with Section 20581) of Part 10.5 of
3Division 2 of the Revenue and Taxation Code).

4(b) The Controller shall transfer any moneys in the fund in
5excess of ten million dollars ($10,000,000) to the General Fund.

6(c) Any loan repayments relating to the Senior Citizens and
7Disabled Citizens Property Tax Postponement Law shall be
8deposited into the Senior Citizens and Disabled Citizens Property
9Tax Postponement Fund.

begin insert

10(d) Any funds remaining on January 1, 2015, in an impound
11account formerly provided for pursuant to this chapter, shall be
12transferred to the Disabled Citizens Property Tax Postponement
13Fund.

end insert
14

SEC. 3.  

Section 16181 of the Government Code is amended
15to read:

16

16181.  

(a) The Controller shall maintain a record of all
17properties against which a notice of lien for postponed property
18taxes has been recorded. The record shall include, but not be
19limited to, the names of each claimant, a description of the real
20property against which the lien is recorded, the identification
21number of the notice of lien assigned by the Controller, and the
22amount of the lien.

23(b) Upon written request of any person or entity, or the agent
24of either, having a legal or equitable interest in real property that
25is subject to a lien for postponed taxes, the Controller shall within
2610 working days following receipt of the request issue a written
27statement showing the amount of the obligation secured by the
28lien as of the date of the statement and any other information as
29will reasonably enable the person or entity, or the agent of either,
30to determine the amount to be paid the Controller in order to obtain
31a certificate of release or discharge of the lien for postponed taxes.

32(c) The Controller shall adopt regulations necessary to
33implement the provisions of this chapter and may establish a
34reasonable fee, not to exceedbegin delete ten dollars ($10),end deletebegin insert thirty dollars ($30),end insert
35 for the provision of the statement of lien status provided for herein.

36

SEC. 4.  

Section 16182 of the Government Code is amended
37to read:

38

16182.  

(a) All sums paid by the Controller under the provisions
39of this chapter, together with interest thereon, shall be secured by
40a lien in favor of the State of California when funds are transferred
P7    1to the county by the Controller upon the real property for which
2property taxes have been postponed. In the case of a residential
3dwelling which is part of a larger parcel taxed as a unit, such as a
4duplex, farm, or multipurpose or multidwelling building, the lien
5shall be against the entire tax parcel.

6(b) In the case of real property:

7(1) The lien shall be evidenced by a notice of lien for postponed
8 property taxes executed by the Controller, or the authorized
9delegate of the Controller, and shall secure all sums paid or owing
10pursuant to this chapter, including amounts paid subsequent to the
11initial payment of postponed taxes on the real property described
12in the notice of lien.

13(2) The notice of lien may bear the facsimile signature of the
14Controller. Each signature shall be that of the person who shall be
15in the office at the time of execution of the notice of lien; provided,
16however, that such notice of lien shall be valid and binding
17notwithstanding any such person having ceased to hold the office
18of Controller before the date of recordation.

19(3) The form and contents of the notice of lien for postponed
20property taxes shall be prescribed by the Controller and shall
21include, but not be limited to, the following:

22(A) The names of all record owners of the real property for
23which the Controller has advanced funds for the payment of real
24property taxes.

25(B) A description of the real property for which real property
26taxes have been paid.

27(C) The identification number of the notice of lien which has
28been assigned the lien by the Controller.

29(4) begin deleteThe end deletebegin insertWithin 14 business days of the transfer of funds and the
30notice of lien to the county by the Controller, theend insert
notice of lien
31shall be recorded in the office of the county recorder for the county
32in which the real property subject to the lien is located.

33(5) The recorded notice of lien shall be indexed in the Grantor
34Index to the names of all record owners of the real property and
35in the Grantee Index to the Controller of the State of California.

36(6) After the notice of lien has been duly recorded and indexed,
37it shall be returned by the county recorder to the office of the
38Controller. The recorder shall provide the county tax collector with
39a copy of the notice of lien which has been recorded by the
40Controller.

P8    1(7) From the time of recordation of a notice of lien for postponed
2property taxes, a lien shall attach to the real property described
3therein and shall have the priority of a judgment lien for all
4amounts secured thereby, except that the lien shall remain in effect
5until it is released by the Controller in the manner prescribed by
6Section 16186.

begin insert

7(c) In the case of mobilehome loans established prior to
8February 20, 2009, all of the following shall apply:

end insert
begin insert

9(1) The lien shall be evidenced by a notice of lien for postponed
10property taxes excused by the Controller, or the authorized
11delegate of the Controller, and shall secure all sums paid owing
12pursuant to this chapter.

end insert
begin insert

13(2) From the time that the Department of Housing and
14Community Development receives the notice of lien from the
15Controller, the department shall impose a moratorium on any
16other amendments to the permanent title record of the mobilehome
17unit until released by the controller in the manner prescribed by
18Section 16186, or an authorization for the amendments is given
19by the Controller in writing.

end insert
begin insert

20(3) From the time of filing a notice of lien, a lien shall attach
21to the mobilehome for which eligibility for the postponement of
22property taxes has been granted.

end insert
23

SEC. 5.  

Section 16184 of the Government Code is amended
24to read:

25

16184.  

The Controller shall reduce the amount of the obligation
26secured by the lien against the real property by the amount of any
27payments received for that purpose and by notification of any
28amounts paid by the Franchise Tax Board pursuant to Section
2920564 or by any amounts authorized pursuant to subdivision (f)
30of Section 20621 of the Revenue and Taxation Code. The
31Controller shall also increase the amount of the obligation secured
32by the lien by the amount of any subsequent payments made
33pursuant to Section 16180 with respect to the real property and to
34reflect the accumulation of interest. All such increases and
35decreases shall be entered in the record described in Section 16181.

36

SEC. 6.  

Section 16185 of the Government Code is repealed.

37

SEC. 7.  

Section 16186 of the Government Code is amended
38to read:

39

16186.  

begin insert(a)end insertbegin insertend insertIf at any time the amount of the obligation secured
40by the lien for postponed property taxes is paid in full or otherwise
P9    1discharged, the Controller, or the authorized delegate of the
2Controller, shall in the case of real property:

begin delete

3(a)

end delete

4begin insert(1)end insert Execute and cause to be recorded in the office of the county
5recorder of the county wherein the real property described in the
6lien is located, a release of the lien conclusively evidencing the
7satisfaction of all amounts secured by the lien. The cost of
8recording the release of the lien shall be added to and become part
9of the obligation secured by the lien being released.

begin delete

10(b)

end delete

11begin insert(2)end insert Direct the tax collector to remove from the secured roll, the
12information required to be entered thereon by paragraph (1) of
13subdivision (a) of Section 2514 of the Revenue and Taxation Code
14with respect to the property described in the lien.

begin delete

15(c)

end delete

16begin insert(3)end insert Direct the assessor to remove from the assessment records
17applicable to the property described in the lien, the information
18required to be entered on such records by Section 2515 of the
19Revenue and Taxation Code.

begin insert

20(b) If at any time the amount of the obligation secured by the
21lien for postponed property taxes is paid in full or otherwise
22discharged, the Controller, or the authorized delegate of the
23Controller shall, in the case of mobilehome loans established prior
24to February 20, 2009:

end insert
begin insert

25(1) Direct the tax collector to remove from the secured roll the
26information required to be entered thereon by paragraph (1) of
27subdivision (a) of Section 2514 of the Revenue and Taxation Code.

end insert
begin insert

28(2) Transmit a Release of Lien to the owner of the mobilehome,
29or the owner’s heirs or assigns. The owner, or the owner’s heirs
30or assigns, shall transmit the Release of Lien, and a fee of six
31dollars ($6), to the Department of Housing and Community
32Development. Upon receipt of the Release of Lien and the fee, the
33department shall terminate the restriction on the permanent title
34record as provided in Section 16182.

end insert
35

SEC. 8.  

Section 16190 of the Government Code is amended
36to read:

37

16190.  

All amounts owing pursuant to Article 1 (commencing
38with Section 16180) of this chapter shall become due if any of the
39following occurs:

P10   1(a) The claimant, who is either the sole owner or sole possessory
2interest holder of the residential dwelling, as defined in Section
320583 or Section 20640 of the Revenue and Taxation Code, or a
4coowner or copossessory interest holder with a person other than
5a spouse or other individual eligible to postpone property taxes
6pursuant to Chapter 2 (commencing with Section 20581), Chapter
73.3 (commencing with Section 20639), or Chapter 3.5
8(commencing with Section 20640) of Part 10.5 of Division 2 of
9such code, ceases to occupy the premises as his residential
10dwelling, dies, or sells, conveys, or disposes of the property, or
11allows any tax or special assessment on the premises described in
12Section 20583 of such code to become delinquent. If the sole owner
13or possessory interest holder claimant dies and his or her surviving
14spouse inherits the premises and continues to own and occupy it
15as his or her principal place of residence, then the lien amount does
16not become due and payable unless taxes or special assessments
17described in the preceding sentence become delinquent, or such
18surviving spouse dies, or sells,begin delete conveysend deletebegin insert conveys,end insert or disposes of
19the interest in the property.

20(b) The claimant, who is a coowner or copossessory interest
21holder of the residential dwelling, as defined in Section 20583 or
22Section 20640.2 of the Revenue and Taxation Code, with a spouse
23or another individual eligible to postpone property taxes pursuant
24to Chapter 2 (commencing with Section 20581), Chapter 3.3
25(commencing with Section 20639), or Chapter 3.5 (commencing
26with Section 20640) of Part 10.5 of Division 2 of such code, dies,
27and the surviving spouse or other surviving eligible individual
28allows any tax or special assessment on the premises described in
29Section 20583 of such code to become delinquent or such surviving
30spouse or other individual ceases to occupy the premises as a
31residential dwelling, dies, or conveys, or disposes of the interest
32in the property.

33(c) The failure of the claimant to perform those acts the claimant
34is required to perform where such performance is secured, or will
35be secured in the event of nonperformance, by a lien which is
36senior to that of the lien provided by Section 16182.

37(d) Postponement was erroneously allowed because eligibility
38requirements were not met.

39(e) The claimant is refinancing the residential dwelling.

P11   1(f) The claimant has elected to participate in a reverse mortgage
2program for the residential dwelling.

3

SEC. 9.  

Section 16200 of the Government Code is amended
4to read:

5

16200.  

In the event that the Controller receives the notice
6described in Section 16187 of this code or Section 3375 of the
7Revenue and Taxation Code, the Controller may take any of the
8following actions which will best serve the interests of the state:

9(a) Notify by United States mail the tax collector or other party
10that such notice has been received and that the Controller must be
11given at least 20 days prior notice of the date that the property will
12be sold at auction. If the Controller elects to proceed under this
13subdivision, the Controller may use funds appropriated by Section
1416100 to bid on the property at the auction up to the amount
15secured by the state’s lien on the property and any lien on such
16property having priority over the state’s lien. All additional
17amounts paid pursuant to this subdivision shall be added to the
18amount secured by the lien on such property provided for in Article
191 (commencing with Section 16180) of this chapter.

20(b) Acknowledge by United States mail that the notice required
21by Section 16187 of this code or Section 3375 of the Revenue and
22Taxation Code has been received.

23

SEC. 10.  

Section 16210 of the Government Code is amended
24to read:

25

16210.  

In the event that the amount secured by the state’s lien
26provided for in Article 1 (commencing with Section 16180) is paid
27by reason of the sale or condemnation of the property on which
28the lien attaches, the funds so received shall be placed in the Senior
29Citizens and Disabled Citizens Property Tax Postponement Fund.

30

SEC. 11.  

Section 16211 of the Government Code is amended
31to read:

32

16211.  

The claimant under Chapter 2 (commencing with
33Section 20581), Chapter 3 (commencing with Section 20625), or
34Chapter 3.5 (commencing with Section 20640) of Part 10.5 of
35Division 2 of the Revenue and Taxation Code whose residential
36dwelling was sold or condemned shall not draw upon the amount
37in the Senior Citizens and Disabled Citizens Property Tax
38Postponement Fund.

39

SEC. 12.  

Section 16211.5 of the Government Code is amended
40to read:

P12   1

16211.5.  

(a) In the event that the real property securing the
2state’s lien provided for in Article 1 (commencing with Section
316180) is the residential dwelling of a claimant under Chapter 2
4(commencing with Section 20581) of Part 10.5 of Division 2 of
5the Revenue and Taxation Code and is voluntarily sold, the funds
6derived from the voluntary sale of the residential dwelling shall
7be placed in the Senior Citizens and Disabled Citizens Property
8Tax Postponement Fund. At that time, the Controller shall release
9the state’s lien in the manner prescribed by Section 16186.

10(b) The claimant under Chapter 2 (commencing with Section
1120581) of Part 10.5 of Division 2 of the Revenue and Taxation
12Code whose residential dwelling was voluntarily sold shall not
13draw upon the amount in the Senior Citizens and Disabled Citizens
14Property Tax Postponement Fund.

15

SEC. 13.  

Section 16212 of the Government Code is repealed.

16

SEC. 14.  

Section 16213 of the Government Code is repealed.

17

SEC. 15.  

Section 16214 of the Government Code is repealed.

18

SEC. 16.  

Section 2514 of the Revenue and Taxation Code is
19amended to read:

20

2514.  

(a) With respect to a claimant whose property taxes are
21paid by a lender from an impound, trust, or other type of account
22described in Section 2954 of the Civil Code, the tax collector shall
23notify the auditor of the claimant’s name and address, and the
24duplicate amount of money the Controller transferred to the tax
25collector via an electronic fund transfer.

26The county auditor, treasurer, or disbursing officer shall send a
27check in the amount of money based on the electronic transfer by
28the Controller, to the Controller within 60 days of the replicated
29payment.

30(b) The procedures established by this chapter shall not be
31construed to require a lender to alter the manner in which a lender
32makes payment of the property taxes of such a claimant.

33begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 2515 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
34amended to read:end insert

35

2515.  

(a) Upon receipt of a “notice of lien for postponed
36property taxes” from the tax collector, the assessor shall
37immediately:

38(1) Enter, on the notice of lien, a description of the real property
39for which the taxes have been paid by use of a certificate of
40eligibility pursuant to Section 2514. Such description shall be a
P13   1“metes and bounds,” “lot-block-tract,” or such other description
2as is determined by the Controller to sufficiently describe the real
3property for the purpose of securing the state’s lien.

4(2) Enter on the notice of lien, the names of all record owners
5of the property described under subdivision (a) of this section, as
6disclosed by the assessor’s records.

7(3) Upon entry of the information required by subdivisions (a)
8and (b) of this section on the notice of lien, the assessor shall
9immediately forward the notice of lien to the county recorder.

10(4) Enter on the assessment records applicable tobegin delete suchend deletebegin insert theend insert
11 property, the fact that the taxes on the property have been
12postponed and the Controller’s identification number, and shall,
13begin delete whenend deletebegin insert ifend insert such record reveals a change in the ownership status of
14the property subsequent to the date of entry of the postponement
15information thereon, notify the Controllerbegin delete of suchend deletebegin insert within 60 days
16of having received notification of theend insert
change in the ownership
17status in the manner prescribed by the Controller.

18(b) From the time of recordation of the notice of lien pursuant
19to Section 16182 of the Government Code, the lien for postponed
20property taxes shall be deemed to impart constructive notice of
21the contents thereof to subsequent purchasers, mortgagees, lessees
22and other lienors.

23

begin deleteSEC. 17.end delete
24begin insertSEC. 18.end insert  

Section 3375 of the Revenue and Taxation Code is
25amended to read:

26

3375.  

The county tax collector shall notify the Controller within
2760 days, in the manner as the Controller shall direct, of all property
28subject to a “Notice of Lien for Postponed Property Taxes”
29recorded pursuant to Section 16182 of the Government Codebegin delete that
30becomesend delete
begin insert that:end insert

31begin insert(a)end insertbegin insertend insertbegin insert Becomesend insert tax defaulted subsequent to the date of entry on
32the secured roll of the information required by subdivision (a) of
33Sectionbegin delete 2514.end deletebegin insert 2514; orend insert

begin insert

34(b) Becomes subject to those collection procedures that are
35available for collection of delinquent taxes or assessments on the
36unsecured roll; or

end insert
begin insert

37(c) The claimant of which transfers ownership or changes his
38or her mailing address, and the property is a residential property;
39or

end insert
begin insert

40(d) The claimant of which has been determined to be deceased.

end insert
P14   1

begin deleteSEC. 18.end delete
2begin insertSEC. 19.end insert  

Section 3376 is added to the Revenue and Taxation
3Code
, to read:

4

3376.  

(a) Upon request of the tax collector, the Controller shall
5provide to the tax collector information that is required for the
6preparation and enforcement of the sale of property under Part 6
7(commencing with Section 3351) of Division 1. This information
8may include social security numbers.

9(b) The tax collector or his or her designee shall certify, under
10penalty of perjury, to the Controller, that the information requested
11pursuant to subdivision (a) is required for the purposes specified
12in subdivision (a).

13(c) Any information provided to the tax collector pursuantbegin delete to
14thisend delete
subdivisionbegin insert (a)end insert is not a public record and is not open to public
15 inspection.

begin insert

16(d) In the event of a tax-defaulted property sale, the tax collector
17or assessor shall include the outstanding balance of the property
18tax postponement loan in the minimum bid.

end insert
19begin insert

begin insertSEC. 20.end insert  

end insert

begin insertSection 3691 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
20amended to read:end insert

21

3691.  

(a) (1) (A) Five years or more, or three years or more
22in the case of nonresidential commercial property, after the property
23has become tax defaulted, the tax collector shall have the power
24to sell and shall attempt to sell in accordance with Section 3692
25all or any portion of tax-defaulted property that has not been
26redeemed, without regard to the boundaries of the parcels, as
27provided in this chapter, unless by other provisions of law the
28property is not subject to sale. Any person, regardless of any prior
29or existing lien on, claim to, or interest in, the property, may
30purchase at the sale. In the case of tax-defaulted property that has
31been damaged by a disaster in an area declared to be a disaster
32area by local, state, or federal officials and whose damage has not
33been substantially repaired, the five-year period set forth in this
34subdivision shall be tolled until five years have elapsed from the
35date the damage to the property was incurred.

begin insert

36(B) A county may elect, by an ordinance or resolution adopted
37by a majority vote of its entire governing body, to adopt conditions
38and procedures for the delay of sale of properties as described in
39subparagraph (A) that it finds may be eligible to file a property
P15   1tax postponement claim with the State Controller prior to January
21, 2017.

end insert
begin delete

3(B)

end delete

4begin insert(C)end insert A county may elect, by an ordinance or resolution adopted
5by a majority vote of its entire governing body, to have the
6five-year time period described in subparagraph (A) apply to
7tax-defaulted nonresidential commercial property.

begin delete

8(C)

end delete

9begin insert(D)end insert For purposes of this subdivision, “nonresidential commercial
10property” means all property except the following:

11(i) A constructed single-family or multifamily unit that is
12intended to be used primarily as a permanent residence, is used
13primarily as a permanent residence, or that is zoned as a residence,
14and the land on which that unit is constructed.

15(ii) Real property that is used and zoned for producing
16commercial agricultural commodities.

17(2) When a part of a tax-defaulted parcel is sold, the balance
18continues subject to redemption and shall be separately valued for
19the purpose of redemption in the manner provided by Chapter 2
20(commencing with Section 4131) of Part 7.

21(3) The tax collector shall provide notice of an intended sale
22under this subdivision in the manner prescribed by Sections 3704
23and 3704.5 and any other applicable statute. If the intended sale
24is of nonresidential commercial property that has been tax-defaulted
25for fewer than five years, all of the following apply:

26(A) On or before the notice date, the tax collector shall also
27mail, in the manner specified in paragraph (1) of subdivision (c)
28of Section 2924b of the Civil Code, notice containing any
29information contained in the publication required under Sections
303704 and 3704.5 to, as applicable, all of the following:

31(i) The parties specified in paragraph (2) of subdivision (c) of
32Section 2924b of the Civil Code.

33(ii) Each taxing agency specified in paragraph (3) of subdivision
34(c) of Section 2924b of the Civil Code.

35(iii) Any beneficiary of a deed of trust or a mortgagee of any
36mortgage recorded against the nonresidential commercial property,
37and any assignee or vendee of these beneficiaries or mortgagees.

38(B) For purposes of this paragraph:

39(i) “Notice date” means a date not less than 45 days nor more
40than 120 days before an intended sale or not less than 45 days nor
P16   1more than 120 days before the date upon which the property may
2be sold.

3(ii) “Recording date of the notice of default” as used in
4subdivision (c) of Section 2924b of the Civil Code means a date
5that is 30 days before the notice date.

6(iii) “Deed of trust or mortgage being foreclosed” as used in
7subdivision (c) of Section 2924b of the Civil Code means the
8defaulted tax lien.

9(b) (1) (A) Three years or more after the property has become
10tax defaulted and a request has been made by a city, county, city
11and county, or nonprofit organization pursuant to Section 3692.4,
12or a request has been made by a person or entity that has recorded
13a nuisance abatement lien on that property, to offer that property
14at the next scheduled tax sale, the tax collector shall have the power
15to sell and may sell all or any portion of tax-defaulted property
16that has not been redeemed, without regard to the boundaries of
17parcels, as provided in this chapter at the next scheduled tax sale,
18unless by other provisions of law the property is not subject to
19sale. Any person, regardless of any prior or existing lien on, claim
20to, or interest in, the property, may purchase at the sale.

21(B) When a part of a tax-defaulted parcel is sold, the balance
22continues subject to redemption and shall be separately valued for
23the purpose of redemption in the manner provided by Chapter 2
24(commencing with Section 4131) of Part 7.

25(2) Before the tax collector sells vacant residential developed
26property pursuant to this subdivision, actual notice, by certified
27mail, shall be provided to the property owner, if the property
28owner’s identity can be determined from the county assessor’s or
29county recorder’s records. The tax collector’s power of sale shall
30not be affected by the failure of the property owner to receive
31notice.

32(3) Before the tax collector sells vacant residential developed
33property pursuant to this subdivision, notice of the sale shall be
34given in the manner specified by Section 3704.7.

35(c) The amendments made to this section by the act adding this
36subdivision apply to property that becomes tax defaulted on or
37after January 1, 2005.

38

begin deleteSEC. 19.end delete
39begin insertSEC. 21.end insert  

Section 20503 of the Revenue and Taxation Code is
40amended to read:

P17   1

20503.  

(a) “Income” means adjusted gross income as defined
2in Section 17072 plus all of the following cash items:

3(1) Public assistance and relief.

4(2) Nontaxable amount of pensions and annuities.

5(3) Social security benefits (except Medicare).

6(4) Railroad retirement benefits.

7(5) Unemployment insurance payments.

8(6) Veterans’ benefits.

9(7) Exempt interest received from any source.

10(8) Gifts and inheritances in excess of three hundred dollars
11($300), other than transfers between members of the household.
12Gifts and inheritances include noncash items.

13(9) Amounts contributed on behalf of the contributor to a
14tax-sheltered retirement plan or deferred compensation plan.

15(10) Temporary workers’ compensation payments.

16(11) Sick leave payments.

17(12) Nontaxable military compensation as defined in Section
18112 of the Internal Revenue Code.

19(13) Nontaxable scholarship and fellowship grants as defined
20in Section 117 of the Internal Revenue Code.

21(14) Nontaxable gain from the sale of a residence as defined in
22Section 121 of the Internal Revenue Code.

23(15) Life insurance proceeds to the extent that the proceeds
24exceed the expenses incurred for the last illness and funeral of the
25deceased spouse of the claimant. “Expenses incurred for the last
26illness” includes unreimbursed expenses paid or incurred during
27the income calendar year and any expenses paid or incurred
28thereafter up until the date the claim is filed. For purposes of this
29paragraph, funeral expenses shall not exceed five thousand dollars
30($5,000).

31(16) If an alternative minimum tax is required to be paid
32pursuant to Chapter 2.1 (commencing with Section 17062) of Part
3310, the amount of alternative minimum taxable income (whether
34or not cash) in excess of the regular taxable income.

35(17) Annual winnings from the California Lottery in excess of
36six hundred dollars ($600) for the current year.

37(b) For purposes of this chapter, total income shall be determined
38for the calendar year (or approved fiscal year ending within that
39calendar year) which ends within the fiscal year for which
40assistance is claimed.

P18   1(c) For purposes of this chapter, all losses and nonexpenses shall
2be converted to zero for the purpose of determining whether the
3homeowner meets the Property Tax Postponement requirement.

4(d) For purposes of Chapter 2 (commencing with Section
520581), Chapter 3 (commencing with Section 20625), and Chapter
63.5 (commencing with Section 20640), total income shall be
7determined for the calendar year ending immediately prior to the
8 commencement of the fiscal year for which postponement is
9claimed.

10

begin deleteSEC. 20.end delete
11begin insertSEC. 22.end insert  

Section 20583 of the Revenue and Taxation Code is
12amended to read:

13

20583.  

(a) “Residential dwelling” means a dwelling occupied
14as the principal place of residence of the claimant, and so much
15of the land surrounding it as is reasonably necessary for use of the
16dwelling as a home, owned by the claimant, the claimant and
17spouse, or by the claimant and either another individual eligible
18for postponement under this chapter or an individual described in
19subdivision (a), (b), or (c) of Section 20511 and located in this
20state. It shall include condominiums that are assessed as realty for
21local property tax purposes. It also includes part of a multidwelling
22or multipurpose building and a part of the land upon which it is
23built.

24(b) As used in this chapter in reference to ownership interests
25in residential dwellings, “owned” includes (1) the interest of a
26vendee in possession under a land sale contract provided that the
27contract or memorandum thereof is recorded and only from the
28date of recordation of the contract or memorandum thereof in the
29office of the county recorder where the residential dwelling is
30located, (2) the interest of the holder of a life estate provided that
31the instrument creating the life estate is recorded and only from
32the date of recordation of the instrument creating the life estate in
33the office of the county recorder where the residential dwelling is
34located, but “owned” does not include the interest of the holder of
35any remainder interest or the holder of a reversionary interest in
36the residential dwelling, (3) the interest of a joint tenant or a tenant
37in common in the residential dwelling or the interest of a tenant
38where title is held in tenancy by the entirety or a community
39property interest where title is held as community property, and
40(4) the interest in the residential dwelling in which the title is held
P19   1in trust, as described in subdivision (d) of Section 62, provided
2that the Controller determines that the state’s interest is adequately
3protected.

4(c) Except as provided in subdivision (c), and Chapter 3
5(commencing with Section 20625), ownership must be evidenced
6by an instrument duly recorded in the office of the county where
7the residential dwelling is located.

8(d) “Residential dwelling” does not include any of the following:

9(1) Any residential dwelling in which the owners do not have
10an equity of at least 40 percent of the full value of the property as
11determined for purposes of property taxation or at least 40 percent
12of the fair market value as determined by the Controller and where
13the Controller determines that the state’s interest is adequately
14protected. The 40-percent equity requirement shall be met at the
15time the claimant or authorized agent files an initial postponement
16claim and tenders to the tax collector the initial certificate of
17eligibility described in Sections 20602, 20639.6, and 20640.6.

18(2) Any residential dwelling in which the claimant’s interest is
19held pursuant to a contract of sale or under a life estate, unless the
20claimant obtains the written consent of the vendor under the
21contract of sale, or the holder of the reversionary interest upon
22termination of the life estate, for the postponement of taxes and
23the creation of a lien on the real property in favor of the state for
24amounts postponed pursuant to this act.

25(3) Any residential dwelling on which the claimant does not
26receive a secured tax bill.

27(4) Any residential dwelling in which the claimant’s interest is
28 held as a possessory interest, except as provided in Chapter 3.5
29(commencing with Section 20640).

30

begin deleteSEC. 21.end delete
31begin insertSEC. 23.end insert  

Section 20583.1 of the Revenue and Taxation Code
32 is repealed.

33

begin deleteSEC. 22.end delete
34begin insertSEC. 24.end insert  

Section 20584 of the Revenue and Taxation Code is
35amended to read:

36

20584.  

(a) “Property taxes” means all ad valorem property
37taxes, special assessments, and other charges or user fees which
38are attributable to the residential dwelling on the county tax bill
39and the ad valorem property taxes, special assessments, or other
P20   1charges or user fees appearing on the tax bill of any chartered city
2which levies and collects its own property taxes.

3(b) Whenever a residential dwelling is an integral part of a larger
4tax unit, such as a duplex, farm or a multipurpose building,
5“property taxes” shall be the percentage of the total property taxes
6as the value of the residential dwelling is of the value of the total
7tax unit.

8(c) “Property taxes” means property taxes for current fiscal
9years for which the claim is made and excludes delinquent taxes
10for prior fiscal years.

11

begin deleteSEC. 23.end delete
12begin insertSEC. 25.end insert  

Section 20602 of the Revenue and Taxation Code is
13amended to read:

14

20602.  

Upon approval of a claim described in Section 20601,
15the Controller shall make payments directly to a county tax
16collector for the property taxes owed on behalf of a qualified
17claimant. Payments may, upon appropriation by the Legislature,
18be made out of the amounts otherwise appropriated pursuant to
19Section 16100 of the Government Code that are secured by a
20secured tax lien and obligation as specified by Article 1
21(commencing with Section 16180) of Chapter 5 of Division 4 of
22the Government Code.

23

begin deleteSEC. 24.end delete
24begin insertSEC. 26.end insert  

Section 20621 of the Revenue and Taxation Code is
25amended to read:

26

20621.  

Each claimant applying for postponement under Article
272 (commencing with Section 20601) shall file a claim under penalty
28of perjury with the Controller on a form supplied by the Controller.
29The claim shall contain all of the following:

30(a) Evidence acceptable to the Controller that the person was a
31“senior citizen claimant” or a “blind or disabled claimant.”

32(b) A statement showing the household income for the period
33set forth in Section 20503.

34(c) A statement describing the residential dwelling in a manner
35that the Controller may prescribe.

36(d) The name of the county in which the residential dwelling is
37located and the address of the residential dwelling.

38(e) The county assessor’s parcel number applicable to the
39property for which the claimant is applying for the postponement
40of property taxes.

P21   1(f) (1) Documentation evidencing the current existence of any
2abstract of judgment, federal tax lien, or state tax lien filed or
3recorded against the applicant, and any recorded mortgage or deed
4of trust that affects the subject residential dwelling, for the purpose
5of determining that the claimant possesses a 40-percent equity in
6the subject residential dwelling as required by paragraph (1) of
7subdivision (b) of Section 20583.

8(2) Actual costs, not in excess of fifty dollars ($50), paid by the
9claimant to obtain the documentation shall reduce the amount of
10the lien for the year, but not the face amount of the payment
11prescribed in Section 16180 of the Government Code.

12(g) Other information required by the Controller to establish
13eligibility.

14

begin deleteSEC. 25.end delete
15begin insertSEC. 27.end insert  

Section 20622 of the Revenue and Taxation Code is
16amended to read:

17

20622.  

The claim for postponement shall be filed after
18September 1 of thebegin delete calendarend deletebegin insert fiscalend insert year in which thebegin delete fiscal year
19for whichend delete
postponementbegin insert thatend insert is claimed begins, and on or before
20April 10 of that fiscal year; if April 10th falls on Saturday, Sunday,
21or a legal holiday, the date is extended to the next business day.

22

begin deleteSEC. 26.end delete
23begin insert SEC. 28.end insert  

Section 20623 of the Revenue and Taxation Code is
24amended to read:

25

20623.  

(a) No person shall file a claim for postponement under
26this chapter on or after the effective date of the act adding this
27section, and the Controller shall not accept applications for
28postponement under this chapter on or after that date.

29(b) This section shall become inoperative on July 1,begin delete 2015,end deletebegin insert 2016,end insert
30 and as of January 1,begin delete 2016,end deletebegin insert 2017,end insert isbegin delete repealed, unless a later enacted
31statute that is enacted before January 1, 2016, deletes or extends
32the dates on which it becomes inoperative and isend delete
repealed.

begin delete

  

 

end delete
34begin insert

begin insertSEC. 29.end insert  

end insert

begin insertSection 20639.10 of the end insertbegin insertRevenue and Taxation Codeend insert
35begin insert is amended to read:end insert

36

20639.10.  

The Controller shall maintain a record of all persons
37who have received postponement amounts pursuant to this chapter.
38begin delete Suchend deletebegin insert Thatend insert record shall include the name and address of the
39claimant, the name and address of the legal owner of the
40mobilehome, the name and address of any other party whose
P22   1consent is required by this chapter, and any other information
2deemed necessary by the Controller for administration purposes.

3begin insert

begin insertSEC. 30.end insert  

end insert

begin insertSection 20639.11 of the end insertbegin insertRevenue and Taxation Codeend insert
4begin insert is amended to read:end insert

5

20639.11.  

All amounts postponed pursuant to this chapter shall
6be due if any of the following occurs:

7(a) The claimant ceases to occupy the residential dwelling as
8the principal place of residence, sells or otherwise disposes of his
9or her mobilehome.

10(b) The claimant dies. However, if the surviving spousebegin delete or
11another person eligible to postponeend delete
begin insert was previously approvedend insert
12 pursuant to this chapter continues to occupy the mobilehome, then
13the postponed amounts shall not be due unlessbegin delete suchend deletebegin insert thatend insert person
14dies or ceases to occupy the residential dwelling.

15(c) The failure of a claimant to perform those acts required by
16the legal owner or junior lienholder.

17(d) The claimant allows any subsequent taxes to remain unpaid
18or to be transferred to the unsecured roll.

19(e) Postponement was erroneously allowed because eligibility
20requirements were not met.

21begin insert

begin insertSEC. 31.end insert  

end insert

begin insertSection 20639.12 of the end insertbegin insertRevenue and Taxation Codeend insert
22begin insert is amended to read:end insert

23

20639.12.  

If the Controller determines that amounts postponed
24under this chapter have become due and payable, the Controller
25may take any or all of the following actions:

26(a) Demand payment ofbegin delete suchend deletebegin insert thatend insert amount from the claimant,
27the estate of any decedent claimant, or any person who was a
28cotenant with the claimant pursuant to the registration card.

29(b) Direct the Department of General Services to seize and sell
30any property pledged by the claimant as security for postponement.

31(c) Request the Attorney General to bring an action to recover
32amounts postponed under this chapter by the claimant.

33(d) Utilize any or all of the other enforcement and foreclosure
34provisions set forth in Article 3 (commencing with Section 16200)
35of Chapter 6 of Part 1 of Division 4 of Title 2 of the Government
36Code, as may be applicable.

begin delete37

SEC. 27.  

Chapter 3.3 (commencing with Section 20639) of
38Part 10.5 of Division 2 of the Revenue and Taxation Code is
39repealed.

end delete
P23   1

begin deleteSEC. 28.end delete
2begin insertSEC. 32.end insert  

Section 20645.5 of the Revenue and Taxation Code
3 is amended to read:

4

20645.5.  

(a) If a postponement claim under Chapter 2
5(commencing with Section 20581), Chapter 3.3 (commencing with
6Section 20639), or Chapter 3.5 (commencing with Section 20640)
7is filed timely before the delinquency date of the second installment
8of property taxes on the secured roll, then any delinquent penalties,
9costs, fees, and interest accrued for that fiscal year shall be canceled
10unless the failure to perfect the claim was due to willful neglect
11on the part of the claimant or representative.

12(b) In the event of willful neglect, an electronic funds transfer
13for that current fiscal year can be used to pay delinquent taxes only
14if accompanied by sufficient amounts to pay all of the delinquent
15penalties, costs, fees, and interest. If an amount sufficient to pay
16all of the delinquent penalties, costs, fees, and interest is not
17received by the tax collector within 30 days from the date of the
18electronic funds transfer, the tax collector may return the electronic
19funds transfer to the Controller to deny the postponement claim.

20(c) (1) The Controller shall notify the claimant in writing when
21the electronic funds transfer has been submitted to the tax collector.

22(2) In the event of willful neglect, in addition to the information
23required pursuant to paragraph (1), the Controller shall also notify
24the claimant in writing and provide a copy of the notification to
25the tax collector, that a payment amount sufficient to pay all of
26the delinquent penalties, costs, fees, and interest must be received
27by the tax collector within 30 days from the date of the electronic
28funds transfer, and that if this payment is not received by the tax
29collector, the tax collector may return the electronic funds transfer
30to the Controller to deny the postponement claim.

31

begin deleteSEC. 29.end delete
32begin insertSEC. 33.end insert  

Section 20645.6 of the Revenue and Taxation Code
33 is amended to read:

34

20645.6.  

(a) If the Controller denies a postponement claim
35under Chapter 2 (commencing with Section 20581), Chapter 3
36(commencing with Section 20625), Chapter 3.3 (commencing with
37Section 20639), or Chapter 3.5 (commencing with Section 20640),
38and the denial is reversed after appeal pursuant to Section 20645.1,
39the Controller shall electronically transfer funds to the county, if
40the taxes for the fiscal year have been paid, for the amount of the
P24   1taxes. If the taxes for the fiscal year are delinquent, any resulting
2penalties or interest shall be canceled.

3(b) The Controller shall notify the claimant in writing when an
4electronic funds transfer has been made pursuant to subdivision
5(a).

6

begin deleteSEC. 30.end delete
7begin insertSEC. 34.end insert  

The Legislature finds and declares that Section 16 of
8this act, which adds Section 3376 to the Revenue and Taxation
9Code, imposes a limitation on the public’s right of access to the
10meetings of public bodies or the writings of public officials and
11agencies within the meaning of Section 3 of Article I of the
12California Constitution. Pursuant to that constitutional provision,
13the Legislature makes the following findings to demonstrate the
14interest protected by this limitation and the need for protecting
15that interest:

16In order to protect those persons subject to enforcement of Part
176 (commencing with Section 3351) of Division 1 of the Revenue
18and Taxation Code against the risk of identity theft, it is in the
19state’s interest to limit public access to information.

20

begin deleteSEC. 31.end delete
21begin insertSEC. 35.end insert  

No reimbursement is required by this act pursuant to
22Section 6 of Article XIII B of the California Constitution for certain
23costs that may be incurred by a local agency or school district
24because, in that regard, this act creates a new crime or infraction,
25eliminates a crime or infraction, or changes the penalty for a crime
26or infraction, within the meaning of Section 17556 of the
27Government Code, or changes the definition of a crime within the
28meaning of Section 6 of Article XIII B of the California
29Constitution.

30However, if the Commission on State Mandates determines that
31this act contains other costs mandated by the state, reimbursement
32to local agencies and school districts for those costs shall be made
33pursuant to Part 7 (commencing with Section 17500) of Division
344 of Title 2 of the Government Code.

35begin insert

begin insertSEC. 36.end insert  

end insert
begin insert

This act is an urgency statute necessary for the
36immediate preservation of the public peace, health, or safety within
37the meaning of Article IV of the Constitution and shall go into
38immediate effect. The facts constituting the necessity are:

end insert
begin insert

P25   1In order to avoid the imminent sale of tax-defaulted dwellings
2of vulnerable Californians, it is necessary that this act take effect
3immediately.

end insert


O

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