Amended in Senate August 21, 2014

Amended in Senate August 18, 2014

Amended in Senate August 4, 2014

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,begin insert 16183,end insert 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, 2515, 3375, 3691, 3698.5, 3698.7, 3793.1, 4673.1, 20503, 20583, 20584,begin insert 20585,end insert 20602, 20621, 20622, 20639.10, 20639.11, 20639.12, 20645.5, and 20645.6 of, to amend and repeal Section 20623 of, to repeal Section 20583.1 of, to add Section 3376 to, the Revenue and Taxation Code, relating to state government, and making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.

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, 2016, and would repeal this prohibition on January 1, 2017. This bill would authorize a claim for postponement to be filed after September 1 of the fiscal year in which the postponement is claimed and on or before April 10 of that fiscal year, as specified.

This bill wouldbegin insert limit the household income amount of a claimant to $35,000 and wouldend insert 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, and make conforming changes to related provisions.

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.

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

This bill would create in the State Treasury a Senior Citizens and Disabled Citizens Property Tax Postponement Fundbegin insert and would require the fund to be interest-bearing at a specified rateend insert. 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 insertThe bill would require the Controller to transfer any moneys in the fund in excess of specified amounts to the General Fund each year. end insertThe bill would require any impound account funds remainingbegin delete on January 1, 2015,end deletebegin insert upon the enactment of this billend insert to be transferred to the fund. The bill would continuously appropriate these funds to the Controller for purposes of administering the property tax postponement program, as specified.

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

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

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 owner’s equity interest in the residential dwelling be at least 20% of the full value of the property at the time the claimant files an initial postponement claim in order to be eligible to participate in the postponement program.

This bill would increase the equity requirement to at least 40% for each postponement claim.

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 require the tax collector or 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 processing that change, and require that the county tax collector or assessor notify the Controller within 60 days of all property subject to a “Notice of Lien for Postponed Property Taxes” and processed for notice of becoming tax defaulted or of the claimant for that property, if residential, transferring ownership or changing his or her mailing address, or having been determined to be deceased.

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. 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.

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-defaulted 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 require that, in the event that the property fails to receive the minimum bid and the minimum bid is reduced, all moneys paid to the Controller’s office and county tax collector be a proportionate allocation of the total moneys owed. The bill would also 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.

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.

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, and to cancel any delinquent penalties, costs, fees, and interest associated with these properties.

Existing law requires the price at which certain tax-defaulted property may be offered for sale to be the total amount necessary to redeem the property, plus costs.

This bill would require the outstanding balancebegin insert, as definend insertbegin inserted,end insert of any property tax postponement loan to also be included in the price described above.

Existing law requires, after certain other amounts have been satisfied, the proceeds from the sale of tax-defaulted property to be distributed to taxing agencies in specified proportions to each assessment fund with the remaining balance to each tax fund.

This bill would require the proceeds remaining after the distributions described above to be distributed to the State Controller for the outstanding balance of any property tax postponement loan.

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.

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

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

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

P6    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. The fund shall be an interest-bearing fund. 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
13Senior Citizens and Disabled Citizens Property Tax Postponement
14Law (Chapter 2 (commencing with Section 20581) of Part 10.5 of
15Division 2 of the Revenue and Taxation Code).

16(b) The Controller shall begin delete transfer any moneys in the fund in
17excess of ten million dollars ($10,000,000) to the General Fund.end delete

18begin insert do both of the following:end insert

begin insert

19(1) On June 30, 2017, transfer any moneys in the fund in excess
20of twenty million dollars ($20,000,000) to the General Fund.

end insert
begin insert

21(2) On June 30, 2018, and on June 30 each year thereafter,
22transfer any moneys in the fund in excess of fifteen million dollars
23($15,000,000) to the General Fund.

end insert

P7    1(c) begin deleteAny end deletebegin insertOn or after January 1, 2015, any end insertloan repayments
2relating to the Senior Citizens and Disabled Citizens Property Tax
3Postponement Law shall be deposited into the Senior Citizens and
4Disabled Citizens Property Tax Postponement Fund.

5(d) Any funds remainingbegin delete on January 1, 2015,end deletebegin insert upon the effective
6date of this sectionend insert
in an impound account formerly provided for
7pursuant to this chapter, shall be transferred to thebegin insert Senior Citizens
8andend insert
Disabled Citizens Property Tax Postponement Fund.

9

SEC. 3.  

Section 16181 of the Government Code is amended
10to read:

11

16181.  

(a) The Controller shall maintain a record of all
12properties against which a notice of lien for postponed property
13taxes has been recorded. The record shall include, but not be
14limited to, the names of each claimant, a description of the real
15property against which the lien is recorded, the identification
16number of the notice of lien assigned by the Controller, and the
17amount of the lien.

18(b) Upon written request of any person or entity, or the agent
19of either, having a legal or equitable interest in real property that
20is subject to a lien for postponed taxes, the Controller shall within
2110 working days following receipt of the request issue a written
22statement showing the amount of the obligation secured by the
23lien as of the date of the statement and any other information as
24will reasonably enable the person or entity, or the agent of either,
25to determine the amount to be paid the Controller in order to obtain
26a certificate of release or discharge of the lien for postponed taxes.

27(c) The Controller shall adopt regulations necessary to
28implement the provisions of this chapter and may establish a
29reasonable fee, not to exceed thirty dollars ($30), for the provision
30of the statement of lien status provided for herein.

31

SEC. 4.  

Section 16182 of the Government Code is amended
32to read:

33

16182.  

(a) All sums paid by the Controller under the provisions
34of this chapter, together with interest thereon, shall be secured by
35a lien in favor of the State of California when funds are transferred
36to the county by the Controller upon the real property for which
37property taxes have been postponed. In the case of a residential
38dwelling which is part of a larger parcel taxed as a unit, such as a
39duplex, farm, or multipurpose or multidwelling building, the lien
40shall be against the entire tax parcel.

P8    1(b) In the case of real property:

2(1) The lien shall be evidenced by a notice of lien for postponed
3 property taxes executed by the Controller, or the authorized
4delegate of the Controller, and shall secure all sums paid or owing
5pursuant to this chapter, including amounts paid subsequent to the
6initial payment of postponed taxes on the real property described
7in the notice of lien.

8(2) The notice of lien may bear the facsimile signature of the
9Controller. Each signature shall be that of the person who shall be
10in the office at the time of execution of the notice of lien; provided,
11however, that such notice of lien shall be valid and binding
12notwithstanding any such person having ceased to hold the office
13of Controller before the date of recordation.

14(3) The form and contents of the notice of lien for postponed
15property taxes shall be prescribed by the Controller and shall
16 include, but not be limited to, the following:

17(A) The names of all record owners of the real property for
18which the Controller has advanced funds for the payment of real
19property taxes.

20(B) A description of the real property for which real property
21taxes have been paid.

22(C) The identification number of the notice of lien which has
23been assigned the lien by the Controller.

24(4) Within 14 business days of the transfer of funds and the
25notice of lien to the county by the Controller, the notice of lien
26shall be recorded in the office of the county recorder for the county
27in which the real property subject to the lien is located.

28(5) The recorded notice of lien shall be indexed in the Grantor
29Index to the names of all record owners of the real property and
30in the Grantee Index to the Controller of the State of California.

31(6) After the notice of lien has been duly recorded and indexed,
32it shall be returned by the county recorder to the office of the
33Controller. The recorder shall provide the county tax collector with
34a copy of the notice of lien which has been recorded by the
35Controller.

36(7) From the time of recordation of a notice of lien for postponed
37property taxes, a lien shall attach to the real property described
38therein and shall have the priority of a judgment lien for all
39amounts secured thereby, except that the lien shall remain in effect
P9    1until it is released by the Controller in the manner prescribed by
2Section 16186.

3(c) In the case of mobilehome loans established prior to February
420, 2009, all of the following shall apply:

5(1) The lien shall be evidenced by a notice of lien for postponed
6property taxes excused by the Controller, or the authorized delegate
7of the Controller, and shall secure all sums paid owing pursuant
8to this chapter.

9(2) From the time that the Department of Housing and
10Community Development receives the notice of lien from the
11Controller, the department shall impose a moratorium on any other
12amendments to the permanent title record of the mobilehome unit
13until released by the Controller in the manner prescribed by Section
1416186, or an authorization for the amendments is given by the
15Controller in writing.

16(3) From the time of filing a notice of lien, a lien shall attach to
17the mobilehome for which eligibility for the postponement of
18property taxes has been granted.

19begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 16183 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
20read:end insert

21

16183.  

(a) (1) From the time a payment is made pursuant to
22Section 16180, the amount of that payment shall bear interest at a
23rate (not compounded), determined as follows:

24(1) begin deleteFor the period ending June 30, 1984, end deletebegin insertBeginning July 1, 2016, end insert
25the rate of interest shall be 7 percent per annum.

26(2) The Controller shall establish an adjusted rate of interest for
27the purpose of this subdivision not later than July 15th of any year
28if the effective annual yield of the Pooled Money Investment
29Account for the prior fiscal year is at least a full percentage point
30more or less than the interest rate which is then in effect. The
31adjusted rate of interest shall be equal per annum to the effective
32annual yield earned in the prior fiscal year by the Pooled Money
33Investment Account rounded to the nearest full percent, and shall
34become effective for new deferrals, beginning on July 1, 1984,
35and on July 1 of each immediately succeedingbegin delete yearend deletebegin insert year, until June
3630, 2016end insert
.

37(3) The rate of interest provided pursuant to this subdivision for
38the first fiscal year commencing after payment is made pursuant
39to Section 16180 shall apply for that fiscal year and each fiscal
40year thereafter until these postponed property taxes are repaid.

P10   1(b) The interest provided for in subdivision (a) shall be applied
2beginning the first day of the month following the month in which
3that payment is made and continuing on the first day of each month
4thereafter until that amount is paid. In the event that any payments
5are applied, in any month, to reduce the amount paid pursuant to
6Section 16180, the interest provided for herein shall be applied to
7the balance of that amount beginning on the first day of the
8following month.

9(c) In computing interest in accordance with this section,
10fractions of a cent shall be disregarded.

11(d) For the purpose of this section, the time a payment is made
12shall be deemed to be the time a certificate of eligibility is
13countersigned by the tax collector or the delinquency date of the
14respective tax installment, whichever is later.

15(e) The Controller shall include on forms supplied to claimants
16pursuant to Sections 20621, 20630.5, 20639.9, 20640.9, and 20641
17of the Revenue and Taxation Code, a statement of the interest rate
18which shall apply to amounts postponed for the fiscal year to which
19the form applies.

20

begin deleteSEC. 5.end delete
21begin insertSEC. 6.end insert  

Section 16184 of the Government Code is amended
22to read:

23

16184.  

The Controller shall reduce the amount of the obligation
24secured by the lien against the real property by the amount of any
25payments received for that purpose and by notification of any
26amounts paid by the Franchise Tax Board pursuant to Section
27 20564 or by any amounts authorized pursuant to subdivision (f)
28of Section 20621 of the Revenue and Taxation Code. The
29Controller shall also increase the amount of the obligation secured
30by the lien by the amount of any subsequent payments made
31pursuant to Section 16180 with respect to the real property and to
32reflect the accumulation of interest. All such increases and
33decreases shall be entered in the record described in Section 16181.

34

begin deleteSEC. 6.end delete
35begin insertSEC. 7.end insert  

Section 16185 of the Government Code is repealed.

36

begin deleteSEC. 7.end delete
37begin insertSEC. 8.end insert  

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

39

16186.  

(a) If at any time the amount of the obligation secured
40by the lien for postponed property taxes is paid in full or otherwise
P11   1discharged, the Controller, or the authorized delegate of the
2Controller, shall in the case of real property:

3(1) Execute and cause to be recorded in the office of the county
4recorder of the county wherein the real property described in the
5lien is located, a release of the lien conclusively evidencing the
6satisfaction of all amounts secured by the lien. The cost of
7recording the release of the lien shall be added to and become part
8of the obligation secured by the lien being released.

9(2) Direct the tax collector to remove from the secured roll, the
10information required to be entered thereon by paragraph (1) of
11subdivision (a) of Section 2514 of the Revenue and Taxation Code
12with respect to the property described in the lien.

13(3) Direct the assessor to remove from the assessment records
14applicable to the property described in the lien, the information
15required to be entered on such records by Section 2515 of the
16Revenue and Taxation Code.

17(b) If at any time the amount of the obligation secured by the
18lien for postponed property taxes is paid in full or otherwise
19discharged, the Controller, or the authorized delegate of the
20Controller, shall, in the case of mobilehome loans established prior
21to February 20, 2009:

22(1) Direct the tax collector to remove from the secured roll the
23information required to be entered thereon by paragraph (1) of
24 subdivision (a) of Section 2514 of the Revenue and Taxation Code.

25(2) Transmit a Release of Lien to the owner of the mobilehome,
26or the owner’s heirs or assigns. The owner, or the owner’s heirs
27or assigns, shall transmit the Release of Lien, and a fee of six
28dollars ($6), to the Department of Housing and Community
29Development. Upon receipt of the Release of Lien and the fee, the
30department shall terminate the restriction on the permanent title
31record as provided in Section 16182.

32

begin deleteSEC. 8.end delete
33begin insertSEC. 9.end insert  

Section 16190 of the Government Code is amended
34to read:

35

16190.  

All amounts owing pursuant to Article 1 (commencing
36with Section 16180) of this chapter shall become due if any of the
37following occurs:

38(a) The claimant, who is either the sole owner or sole possessory
39interestholder of the residential dwelling, as defined in Section
4020583 or Section 20640 of the Revenue and Taxation Code, or a
P12   1coowner or copossessory interestholder with a person other than
2a spouse or other individual eligible to postpone property taxes
3pursuant to Chapter 2 (commencing with Section 20581), Chapter
43.3 (commencing with Section 20639), or Chapter 3.5
5(commencing with Section 20640) of Part 10.5 of Division 2 of
6such code, ceases to occupy the premises as his residential
7dwelling, dies, or sells, conveys, or disposes of the property, or
8allows any tax or special assessment on the premises described in
9Section 20583 of such code to become delinquent. If the sole owner
10or possessory interestholder claimant dies and his or her surviving
11spouse inherits the premises and continues to own and occupy it
12as his or her principal place of residence, then the lien amount does
13not become due and payable unless taxes or special assessments
14described in the preceding sentence become delinquent, or such
15surviving spouse dies, or sells, conveys, or disposes of the interest
16in the property.

17(b) The claimant, who is a coowner or copossessory
18interestholder of the residential dwelling, as defined in Section
1920583 or Section 20640.2 of the Revenue and Taxation Code, with
20a spouse or another individual eligible to postpone property taxes
21pursuant to Chapter 2 (commencing with Section 20581), Chapter
223.3 (commencing with Section 20639), or Chapter 3.5
23(commencing with Section 20640) of Part 10.5 of Division 2 of
24such code, dies, and the surviving spouse or other surviving eligible
25individual allows any tax or special assessment on the premises
26described in Section 20583 of such code to become delinquent or
27such surviving spouse or other individual ceases to occupy the
28premises as a residential dwelling, dies, or conveys, or disposes
29of the interest in the property.

30(c) The failure of the claimant to perform those acts the claimant
31is required to perform where such performance is secured, or will
32be secured in the event of nonperformance, by a lien which is
33senior to that of the lien provided by Section 16182.

34(d) Postponement was erroneously allowed because eligibility
35requirements were not met.

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

37(f) The claimant has elected to participate in a reverse mortgage
38program for the residential dwelling.

P13   1

begin deleteSEC. 9.end delete
2begin insertSEC. 10.end insert  

Section 16200 of the Government Code is amended
3to read:

4

16200.  

In the event that the Controller receives the notice
5described in Section 16187 of this code or Section 3375 of the
6Revenue and Taxation Code, the Controller may take any of the
7following actions which will best serve the interests of the state:

8(a) Notify by United States mail the tax collector or other party
9that such notice has been received and that the Controller must be
10given at least 20 days prior notice of the date that the property will
11be sold at auction. If the Controller elects to proceed under this
12subdivision, the Controller may use funds appropriated by Section
1316100 to bid on the property at the auction up to the amount
14secured by the state’s lien on the property and any lien on such
15property having priority over the state’s lien. All additional
16amounts paid pursuant to this subdivision shall be added to the
17amount secured by the lien on such property provided for in Article
181 (commencing with Section 16180) of this chapter.

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

22

begin deleteSEC. 10.end delete
23begin insertSEC. 11.end insert  

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

begin deleteSEC. 11.end delete
31begin insertSEC. 12.end insert  

Section 16211 of the Government Code is amended
32to read:

33

16211.  

The claimant under Chapter 2 (commencing with
34Section 20581), Chapter 3 (commencing with Section 20625), or
35Chapter 3.5 (commencing with Section 20640) of Part 10.5 of
36Division 2 of the Revenue and Taxation Code whose residential
37dwelling was sold or condemned shall not draw upon the amount
38in the Senior Citizens and Disabled Citizens Property Tax
39Postponement Fund.

P14   1

begin deleteSEC. 12.end delete
2begin insertSEC. 13.end insert  

Section 16211.5 of the Government Code is amended
3to read:

4

16211.5.  

(a) In the event that the real property securing the
5state’s lien provided for in Article 1 (commencing with Section
616180) is the residential dwelling of a claimant under Chapter 2
7(commencing with Section 20581) of Part 10.5 of Division 2 of
8the Revenue and Taxation Code and is voluntarily sold, the funds
9derived from the voluntary sale of the residential dwelling shall
10be placed in the Senior Citizens and Disabled Citizens Property
11Tax Postponement Fund. At that time, the Controller shall release
12the state’s lien in the manner prescribed by Section 16186.

13(b) The claimant under Chapter 2 (commencing with Section
1420581) of Part 10.5 of Division 2 of the Revenue and Taxation
15Code whose residential dwelling was voluntarily sold shall not
16draw upon the amount in the Senior Citizens and Disabled Citizens
17Property Tax Postponement Fund.

18

begin deleteSEC. 13.end delete
19begin insertSEC. 14.end insert  

Section 16212 of the Government Code is repealed.

20

begin deleteSEC. 14.end delete
21begin insertSEC. 15.end insert  

Section 16213 of the Government Code is repealed.

22

begin deleteSEC. 15.end delete
23begin insertSEC. 16.end insert  

Section 16214 of the Government Code is repealed.

24

begin deleteSEC. 16.end delete
25begin insertSEC. 17.end insert  

Section 2514 of the Revenue and Taxation Code is
26amended to read:

27

2514.  

(a) With respect to a claimant whose property taxes are
28paid by a lender from an impound, trust, or other type of account
29described in Section 2954 of the Civil Code, the tax collector shall
30notify the auditor of the claimant’s name and address, and the
31duplicate amount of money the Controller transferred to the tax
32collector via an electronic fund transfer.

33The county auditor, treasurer, or disbursing officer shall send a
34check in the amount of money based on the electronic transfer by
35the Controller, to the Controller within 60 days of the replicated
36payment.

37(b) The procedures established by this chapter shall not be
38construed to require a lender to alter the manner in which a lender
39makes payment of the property taxes of such a claimant.

P15   1

begin deleteSEC. 17.end delete
2begin insertSEC. 18.end insert  

Section 2515 of the Revenue and Taxation Code is
3amended to read:

4

2515.  

(a) Upon expeditiously processing a “notice of lien for
5postponed property taxes” from the tax collector, the tax collector
6or the assessor, whichever is applicable, shall immediately:

7(1) Enter, on the notice of lien, a description of the real property
8for which the taxes have been paid by use of a certificate of
9eligibility pursuant to Section 2514. Such description shall be a
10“metes and bounds,” “lot-block-tract,” or such other description
11as is determined by the Controller to sufficiently describe the real
12property for the purpose of securing the state’s lien.

13(2) Enter on the notice of lien, the names of all record owners
14of the property described under subdivision (a) of this section, as
15disclosed by the assessor’s records.

16(3) Upon entry of the information required by subdivisions (a)
17and (b) of this section on the notice of lien, the assessor shall
18immediately forward the notice of lien to the county recorder.

19(4) Enter on the assessment records applicable to the property,
20the fact that the taxes on the property have been postponed and
21the Controller’s identification number, and shall, if such record
22reveals a change in the ownership status of the property subsequent
23to the date of entry of the postponement information thereon, notify
24the Controller within 60 days of processing the change in the
25ownership status in the manner prescribed by the Controller.

26(b) From the time of recordation of the notice of lien pursuant
27to Section 16182 of the Government Code, the lien for postponed
28property taxes shall be deemed to impart constructive notice of
29the contents thereof to subsequent purchasers, mortgagees, lessees,
30and other lienors.

31

begin deleteSEC. 18.end delete
32begin insertSEC. 19.end insert  

Section 3375 of the Revenue and Taxation Code is
33amended to read:

34

3375.  

The county tax collector or assessor, whichever is
35applicable, shall notify the Controller within 60 days, in the manner
36as the Controller shall direct, of all property subject to a “Notice
37of Lien for Postponed Property Taxes” recorded pursuant to Section
3816182 of the Government Code and for which notice of any of the
39following has been expeditiously processed:

P16   1(a)  Becomes tax defaulted subsequent to the date of entry on
2the secured roll of the information required by subdivision (a) of
3Section 2514; or

4(b) The claimant of which transfers ownership or changes his
5or her mailing address, and the property is a residential property;
6or

7(c) The claimant of which has been determined to be deceased.

8

begin deleteSEC. 19.end delete
9begin insertSEC. 20.end insert  

Section 3376 is added to the Revenue and Taxation
10Code
, to read:

11

3376.  

(a) Upon request of the tax collector, the Controller shall
12provide to the tax collector information that is required for the
13preparation and enforcement of the sale of property under Part 6
14(commencing with Section 3351) of Division 1. This information
15may include social security numbers.

16(b) The tax collector or his or her designee shall certify, under
17penalty of perjury, to the Controller, that the information requested
18pursuant to subdivision (a) is required for the purposes specified
19in subdivision (a).

20(c) Any information provided to the tax collector pursuant
21subdivision (a) is not a public record and is not open to public
22inspection.

23(d) In the event of a tax-defaulted property sale, the tax collector
24or assessor shall include the outstanding balance of the property
25tax postponement loan in the minimum bid. Should the property
26fail to receive the minimum bid, and the minimum bid is reduced,
27all moneys paid to the Controller’s office and county tax collector
28shall be a proportionate allocation of the total moneys owed.

29

begin deleteSEC. 20.end delete
30begin insertSEC. 21.end insert  

Section 3691 of the Revenue and Taxation Code is
31amended to read:

32

3691.  

(a) (1) (A) Five years or more, or three years or more
33in the case of nonresidential commercial property, after the property
34has become tax defaulted, the tax collector shall have the power
35to sell and shall attempt to sell in accordance with Section 3692
36all or any portion of tax-defaulted property that has not been
37redeemed, without regard to the boundaries of the parcels, as
38provided in this chapter, unless by other provisions of law the
39property is not subject to sale. Any person, regardless of any prior
40or existing lien on, claim to, or interest in, the property, may
P17   1purchase at the sale. In the case of tax-defaulted property that has
2been damaged by a disaster in an area declared to be a disaster
3area by local, state, or federal officials and whose damage has not
4been substantially repaired, the five-year period set forth in this
5subdivision shall be tolled until five years have elapsed from the
6date the damage to the property was incurred.

7(B) A county may elect, by an ordinance or resolution adopted
8by a majority vote of its entire governing body, to adopt conditions
9and procedures for the delay of sale of properties as described in
10subparagraph (A) that it finds may be eligible to file a property
11tax postponement claim with the State Controller prior to January
121, 2017, and may cancel any delinquent penalties, costs, fees, and
13interest associated with these properties.

14(C) A county may elect, by an ordinance or resolution adopted
15by a majority vote of its entire governing body, to have the
16five-year time period described in subparagraph (A) apply to
17tax-defaulted nonresidential commercial property.

18(D) For purposes of this subdivision, “nonresidential commercial
19property” means all property except the following:

20(i) A constructed single-family or multifamily unit that is
21intended to be used primarily as a permanent residence, is used
22primarily as a permanent residence, or that is zoned as a residence,
23and the land on which that unit is constructed.

24(ii) Real property that is used and zoned for producing
25commercial agricultural commodities.

26(2) When a part of a tax-defaulted parcel is sold, the balance
27continues subject to redemption and shall be separately valued for
28the purpose of redemption in the manner provided by Chapter 2
29(commencing with Section 4131) of Part 7.

30(3) The tax collector shall provide notice of an intended sale
31under this subdivision in the manner prescribed by Sections 3704
32and 3704.5 and any other applicable statute. If the intended sale
33is of nonresidential commercial property that has been tax-defaulted
34for fewer than five years, all of the following apply:

35(A) On or before the notice date, the tax collector shall also
36mail, in the manner specified in paragraph (1) of subdivision (c)
37of Section 2924b of the Civil Code, notice containing any
38information contained in the publication required under Sections
393704 and 3704.5 to, as applicable, all of the following:

P18   1(i) The parties specified in paragraph (2) of subdivision (c) of
2Section 2924b of the Civil Code.

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

5(iii) Any beneficiary of a deed of trust or a mortgagee of any
6mortgage recorded against the nonresidential commercial property,
7and any assignee or vendee of these beneficiaries or mortgagees.

8(B) For purposes of this paragraph:

9(i) “Notice date” means a date not less than 45 days nor more
10than 120 days before an intended sale or not less than 45 days nor
11more than 120 days before the date upon which the property may
12be sold.

13(ii) “Recording date of the notice of default” as used in
14subdivision (c) of Section 2924b of the Civil Code means a date
15that is 30 days before the notice date.

16(iii) “Deed of trust or mortgage being foreclosed” as used in
17subdivision (c) of Section 2924b of the Civil Code means the
18defaulted tax lien.

19(b) (1) (A) Three years or more after the property has become
20tax defaulted and a request has been made by a city, county, city
21and county, or nonprofit organization pursuant to Section 3692.4,
22or a request has been made by a person or entity that has recorded
23a nuisance abatement lien on that property, to offer that property
24at the next scheduled tax sale, the tax collector shall have the power
25to sell and may sell all or any portion of tax-defaulted property
26that has not been redeemed, without regard to the boundaries of
27parcels, as provided in this chapter at the next scheduled tax sale,
28unless by other provisions of law the property is not subject to
29sale. Any person, regardless of any prior or existing lien on, claim
30to, or interest in, the property, may purchase at the sale.

31(B) When a part of a tax-defaulted parcel is sold, the balance
32continues subject to redemption and shall be separately valued for
33the purpose of redemption in the manner provided by Chapter 2
34(commencing with Section 4131) of Part 7.

35(2) Before the tax collector sells vacant residential developed
36property pursuant to this subdivision, actual notice, by certified
37mail, shall be provided to the property owner, if the property
38owner’s identity can be determined from the county assessor’s or
39county recorder’s records. The tax collector’s power of sale shall
P19   1not be affected by the failure of the property owner to receive
2notice.

3(3) Before the tax collector sells vacant residential developed
4property pursuant to this subdivision, notice of the sale shall be
5given in the manner specified by Section 3704.7.

6(c) The amendments made to this section by the act adding this
7subdivision apply to property that becomes tax defaulted on or
8after January 1, 2005.

9

begin deleteSEC. 21.end delete
10begin insertSEC. 22.end insert  

Section 3698.5 of the Revenue and Taxation Code is
11amended to read:

12

3698.5.  

(a) Except as provided in Section 3698.7, the minimum
13price at which property may be offered for sale pursuant to this
14chapter shall be an amount not less than the total amount necessary
15to redeem, plus costs and the outstanding balance of any property
16tax postponement loan. For purposes of this subdivision:

17(1) The “total amount necessary to redeem” is the sum of the
18following:

19(A) The amount of defaulted taxes.

20(B) Delinquent penalties and costs.

21(C) Redemption penalties.

22(D) A redemption fee.

23(2) “Costs” are those amounts described in subdivision (c) of
24Section 3704.7, subdivisions (a) and (b) of Section 4112, Sections
254672, 4672.1, 4672.2, 4673, and subdivision (b) of Section 4673.1.

begin insert

26(3) The “outstanding balance of any property tax postponement
27loan” is the sum of the following:

end insert
begin insert

28(A) The tax payments made by the State Controller’s Office on
29behalf of the claimant in the Property Tax Postponement Program.

end insert
begin insert

30(B) Accrued interest pursuant to Section 16183 of the
31Government Code, subject to Sections 20644 and 20644.5.

end insert
begin insert

32(C) Other associated fees and penalties as deemed appropriate
33by law.

end insert
begin insert

34(D) Less any payments already made on the property tax
35postponement loan.

end insert

36(b) This section shall not apply to property or interests that
37qualify for sale in accordance with the provisions of subdivisions
38(b) and (c) of Section 3692.

39(c) Where property or property interests have been offered for
40sale at least once and no acceptable bids therefor have been
P20   1received at the minimum price determined pursuant to subdivision
2(a), the tax collector may, in his or her discretion and with the
3approval of the board of supervisors, offer that same property or
4those interests at the same or next scheduled sale at a minimum
5price that the tax collector deems appropriate in light of the most
6current assessed valuation of that property or those interests, or
7any unique circumstance with respect to that property or those
8interests.

9

begin deleteSEC. 22.end delete
10begin insertSEC. 23.end insert  

Section 3698.7 of the Revenue and Taxation Code is
11amended to read:

12

3698.7.  

(a) With respect to property for which a property tax
13welfare exemption has been granted and that has become tax
14defaulted, the minimum price at which the property may be offered
15for sale pursuant to this chapter shall be the higher of the following:

16(1) Fifty percent of the fair market value of the property. For
17the purposes of this paragraph, “fair market value” means the
18amount as defined in Section 110 as determined pursuant to an
19appraisal of the property by the county assessor within one year
20immediately preceding the date of the public auction. From the
21proceeds of the sale, there shall be distributed to the county general
22fund an amount to reimburse the county for the cost of appraising
23the property. The value of the property as determined by the
24assessor pursuant to an appraisal shall be conclusively presumed
25to be the fair market value of the property for the purpose of
26determining the minimum price at which the property may be
27offered for sale.

28(2) The total amount necessary to redeem, plus costs and the
29outstanding balance of any property tax postponement loan. For
30purposes of this paragraph:

31(A) The “total amount necessary to redeem” is the sum of the
32following:

33(i) The amount of defaulted taxes.

34(ii) Delinquent penalties and costs.

35(iii) Redemption penalties.

36(iv) A redemption fee.

37(B) “Costs” are those amounts described in subdivision (c) of
38Section 3704.7, subdivisions (a) and (b) of Section 4112, Sections
394672, 4672.1, 4672.2, and 4673, and subdivision (b) of Section
404673.1.

begin insert

P21   1(3) The “outstanding balance of any property tax postponement
2loan” is the sum of the following:

end insert
begin insert

3(A) The tax payments made by the State Controller’s Office on
4behalf of the claimant in the Property Tax Postponement Program.

end insert
begin insert

5(B) Accrued interest pursuant to Section 16183 of the
6Government Code, subject to Sections 20644 and 20644.5.

end insert
begin insert

7(C) Other associated fees and penalties as deemed appropriate
8by law.

end insert
begin insert

9(D) Less any payments already made on the property tax
10postponement loan.

end insert

11(b) This section shall not apply to property or interests that
12qualify for sale in accordance with the provisions of subdivisions
13(b) and (c) of Section 3692.

14(c) Where property or property interests have been offered for
15sale at least once and no acceptable bids therefor have been
16received, at the minimum price determined pursuant to subdivision
17(a), the tax collector may, in his or her discretion and with the
18approval of the board of supervisors, offer that same property or
19those interests at the same or next scheduled sale at a minimum
20price that the tax collector deems appropriate in light of the most
21current assessed valuation of that property or those interests, or
22any unique circumstance with respect to that property or those
23interests.

24

begin deleteSEC. 23.end delete
25begin insertSEC. 24.end insert  

Section 3793.1 of the Revenue and Taxation Code is
26amended to read:

27

3793.1.  

(a) The sales price of any property sold under this
28article shall include, at a minimum, the amounts of all of the
29following:

30(1) All defaulted taxes and assessments, and all associated
31penalties and costs.

32(2) Redemption penalties and fees incurred through the month
33of the sale.

34(3) All costs of the sale.

35(4) The outstanding balance of any property tax postponement
36loan.

37(b) If the property or property interests have been offered for
38sale under the provisions of Chapter 7 (commencing with Section
393691) at least once and no acceptable bids therefor have been
40received, the tax collector may, in his or her discretion and with
P22   1the approval of the board of supervisors, offer that property or
2those interests at a minimum price that the tax collector deems
3appropriate.

4(c) The board of supervisors may permit a nonprofit organization
5to purchase property or property interests by way of installment
6payments.

begin insert

7(d) For purposes of this section, the “outstanding balance of
8any property tax postponement loan” is the sum of the following:

end insert
begin insert

9(1) The tax payments made by the State Controller’s Office on
10behalf of the claimant in the Property Tax Postponement Program.

end insert
begin insert

11(2) Accrued interest pursuant to Section 16183 of the
12Government Code, subject to Sections 20644 and 20644.5.

end insert
begin insert

13(3) Other associated fees and penalties as deemed appropriate
14by law.

end insert
begin insert

15(4) Less any payments already made on the property tax
16postponement loan.

end insert
17

begin deleteSEC. 24.end delete
18begin insertSEC. 25.end insert  

Section 4673.1 of the Revenue and Taxation Code is
19amended to read:

20

4673.1.  

After satisfaction of the amount specified in Sections
214672, 4672.1, and 4673, the proceeds shall be distributed as
22follows:

23(a) An amount of the proceeds up to but no greater than the
24amount required, at the time of sale, to redeem the property from
25tax default, the outstanding balance of any property tax
26postponement loan, and the sale to any taxing agency entitled to
27share in the proceeds shall be distributed as follows:

28(1) A pro rata share shall be distributed to each assessment fund
29in an amount bearing the same proportion as the assessment due
30each fund bears to the total amount of taxes and assessments
31necessary to redeem the property at the time of sale.

32(2) After distributing the proceeds according to paragraph (1),
33a pro rata share shall be distributed to each tax fund in an amount
34bearing the same proportion to the balance remaining as the tax
35rate for each fund bears to the total tax rate applicable to the
36property for the fiscal year preceding that in which the property
37was sold.

38(3) The remaining balance of the proceeds to be distributed
39under this section after distributing the proceeds according to
P23   1paragraphs (1) and (2) shall be distributed to the state controller
2for the outstanding balance of any property tax postponement loan.

3(b) After satisfaction of the amounts specified in subdivision
4(a), an amount of the proceeds necessary to satisfy current taxes
5and assessments and applicable penalties and costs thereon for the
6fiscal year in which the tax sale is held shall be distributed as
7provided in Chapter 1a (commencing with Section 4653) of this
8part. Current taxes and assessments referred to herein include taxes
9and assessments which would have been levied on the property if
10the property were not tax-deeded to any taxing agency and remains
11subject to sale by, or redemption from, the taxing agency.

begin insert

12(c) For purposes of this section, the “outstanding balance of
13any property tax postponement loan” is the sum of the following:

end insert
begin insert

14(1) The tax payments made by the State Controller’s Office on
15behalf of the claimant in the Property Tax Postponement Program.

end insert
begin insert

16(2) Accrued interest pursuant to Section 16183 of the
17Government Code, subject to Sections 20644 and 20644.5.

end insert
begin insert

18(3) Other associated fees and penalties as deemed appropriate
19by law.

end insert
begin insert

20(4) Less any payments already made on the property tax
21postponement loan.

end insert
22

begin deleteSEC. 25.end delete
23begin insertSEC. 26.end insert  

Section 20503 of the Revenue and Taxation Code is
24amended to read:

25

20503.  

(a) “Income” means adjusted gross income as defined
26in Section 17072 plus all of the following cash items:

27(1) Public assistance and relief.

28(2) Nontaxable amount of pensions and annuities.

29(3) Social security benefits (except Medicare).

30(4) Railroad retirement benefits.

31(5) Unemployment insurance payments.

32(6) Veterans’ benefits.

33(7) Exempt interest received from any source.

34(8) Gifts and inheritances in excess of three hundred dollars
35($300), other than transfers between members of the household.
36Gifts and inheritances include noncash items.

37(9) Amounts contributed on behalf of the contributor to a
38tax-sheltered retirement plan or deferred compensation plan.

39(10) Temporary workers’ compensation payments.

40(11) Sick leave payments.

P24   1(12) Nontaxable military compensation as defined in Section
2112 of the Internal Revenue Code.

3(13) Nontaxable scholarship and fellowship grants as defined
4in Section 117 of the Internal Revenue Code.

5(14) Nontaxable gain from the sale of a residence as defined in
6Section 121 of the Internal Revenue Code.

7(15) Life insurance proceeds to the extent that the proceeds
8exceed the expenses incurred for the last illness and funeral of the
9deceased spouse of the claimant. “Expenses incurred for the last
10illness” includes unreimbursed expenses paid or incurred during
11the income calendar year and any expenses paid or incurred
12thereafter up until the date the claim is filed. For purposes of this
13paragraph, funeral expenses shall not exceed five thousand dollars
14($5,000).

15(16) If an alternative minimum tax is required to be paid
16pursuant to Chapter 2.1 (commencing with Section 17062) of Part
1710, the amount of alternative minimum taxable income (whether
18or not cash) in excess of the regular taxable income.

19(17) Annual winnings from the California Lottery in excess of
20six hundred dollars ($600) for the current year.

21(b) For purposes of this chapter, total income shall be determined
22for the calendar year (or approved fiscal year ending within that
23calendar year) which ends within the fiscal year for which
24assistance is claimed.

25(c) For purposes of this chapter, all losses and nonexpenses shall
26be converted to zero for the purpose of determining whether the
27homeowner meets the Property Tax Postponement requirement.

28(d) For purposes of Chapter 2 (commencing with Section
2920581), Chapter 3 (commencing with Section 20625), and Chapter
303.5 (commencing with Section 20640), total income shall be
31determined for the calendar year ending immediately prior to the
32 commencement of the fiscal year for which postponement is
33claimed.

34

begin deleteSEC. 26.end delete
35begin insertSEC. 27.end insert  

Section 20583 of the Revenue and Taxation Code is
36amended to read:

37

20583.  

(a) “Residential dwelling” means a dwelling occupied
38as the principal place of residence of the claimant, and so much
39of the land surrounding it as is reasonably necessary for use of the
40dwelling as a home, owned by the claimant, the claimant and
P25   1spouse, or by the claimant and either another individual eligible
2for postponement under this chapter or an individual described in
3subdivision (a), (b), or (c) of Section 20511 and located in this
4state. It shall include condominiums that are assessed as realty for
5local property tax purposes. It also includes part of a multidwelling
6or multipurpose building and a part of the land upon which it is
7built.

8(b) As used in this chapter in reference to ownership interests
9in residential dwellings, “owned” includes (1) the interest of a
10vendee in possession under a land sale contract provided that the
11contract or memorandum thereof is recorded and only from the
12date of recordation of the contract or memorandum thereof in the
13office of the county recorder where the residential dwelling is
14located, (2) the interest of the holder of a life estate provided that
15the instrument creating the life estate is recorded and only from
16the date of recordation of the instrument creating the life estate in
17the office of the county recorder where the residential dwelling is
18located, but “owned” does not include the interest of the holder of
19any remainder interest or the holder of a reversionary interest in
20the residential dwelling, (3) the interest of a joint tenant or a tenant
21in common in the residential dwelling or the interest of a tenant
22where title is held in tenancy by the entirety or a community
23property interest where title is held as community property, and
24(4) the interest in the residential dwelling in which the title is held
25in trust, as described in subdivision (d) of Section 62, provided
26that the Controller determines that the state’s interest is adequately
27protected.

28(c) Except as provided in subdivision (c), and Chapter 3
29(commencing with Section 20625), ownership must be evidenced
30by an instrument duly recorded in the office of the county where
31the residential dwelling is located.

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

33(1) Any residential dwelling in which the owners do not have
34an equity of at least 40 percent of the full value of the property as
35determined for purposes of property taxation or at least 40 percent
36of the fair market value as determined by the Controller and where
37the Controller determines that the state’s interest is adequately
38protected. The 40-percent equity requirement shall be met each
39time the claimant or authorized agent files a postponement claim.

P26   1(2) Any residential dwelling in which the claimant’s interest is
2held pursuant to a contract of sale or under a life estate, unless the
3claimant obtains the written consent of the vendor under the
4contract of sale, or the holder of the reversionary interest upon
5termination of the life estate, for the postponement of taxes and
6the creation of a lien on the real property in favor of the state for
7amounts postponed pursuant to this act.

8(3) Any residential dwelling on which the claimant does not
9receive a secured tax bill.

10(4) Any residential dwelling in which the claimant’s interest is
11held as a possessory interest, except as provided in Chapter 3.5
12(commencing with Section 20640).

13

begin deleteSEC. 27.end delete
14begin insertSEC. 28.end insert  

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

16

begin deleteSEC. 28.end delete
17begin insertSEC. 29.end insert  

Section 20584 of the Revenue and Taxation Code is
18amended to read:

19

20584.  

(a) “Property taxes” means all ad valorem property
20taxes, special assessments, and other charges or user fees which
21are attributable to the residential dwelling on the county tax bill
22and the ad valorem property taxes, special assessments, or other
23charges or user fees appearing on the tax bill of any chartered city
24which levies and collects its own property taxes.

25(b) Whenever a residential dwelling is an integral part of a larger
26tax unit, such as a duplex, farm or a multipurpose building,
27“property taxes” shall be the percentage of the total property taxes
28as the value of the residential dwelling is of the value of the total
29tax unit.

30(c) “Property taxes” means property taxes for current fiscal
31years for which the claim is made and excludes delinquent taxes
32for prior fiscal years.

33begin insert

begin insertSEC. 30.end insert  

end insert

begin insertSection 20585 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
34amended to read:end insert

35

20585.  

Postponement shall not be allowed under this chapter
36or Chapter 3 (commencing with Section 20625), Chapter 3.3
37(commencing with Section 20639), or Chapter 3.5 (commencing
38with Section 20640) if household income exceedsbegin delete either of the
39following amounts:end delete
begin insert thirty five thousand five hundred dollars
40($35,500).end insert

begin delete

P27   1(a) For the 1976 calendar year or for any approved fiscal year
2commencing within that calendar year, household income shall
3not exceed twenty thousand dollars ($20,000).

end delete
begin delete

4(b) For all subsequent calendar years and approved fiscal years,
5postponement shall not be allowed under this chapter, Chapter 3
6(commencing with Section 20625), Chapter 3.3 (commencing with
7Section 20639), or Chapter 3.5 (commencing with Section 20640)
8if household income exceeds an amount determined as follows:

end delete
begin delete

9(1) On or before March 1 of each year, the California
10Department of Industrial Relations shall transmit to the Controller
11the percentages of increase in the California Consumer Price Index
12for all Urban Consumers and in the California Consumer Price
13Index for Urban Wage Earners and Clerical Workers of December
14of the prior calendar year over December of the preceding calendar
15year.

end delete
begin delete

16(2) The Controller shall compute an inflation adjustment factor
17by adding 100 percent to the larger of the California Consumer
18Price Index percentage increases furnished pursuant to paragraph
19(1).

end delete
begin delete

20(3) In 1978, the Franchise Tax Board shall multiply twenty
21thousand dollars ($20,000) by the inflation adjustment factor to
22determine the maximum allowable gross household income for
23the 1977 calendar year and for approved fiscal years commencing
24within that calendar year. In 1979 and subsequent calendar years
25through and including 1983, the Controller shall multiply the
26maximum allowable household income determined for the
27preceding calendar year by the inflation adjustment factor to
28determine the maximum allowable household income for the
29applicable calendar year and approved fiscal years commencing
30within that calendar year. In determining the maximum allowable
31household income pursuant to this section, the Controller shall
32round that amount to the nearest hundred dollar amount.

end delete
begin delete

33(c) For calendar year 1984 and subsequent calendar years and
34for approved fiscal years commencing within those years,
35postponement shall not be allowed under this chapter, Chapter 3
36(commencing with Section 20626), Chapter 3.3 (commencing with
37Section 20639), or Chapter 3.5 (commencing with Section 20640),
38if household income exceeds an amount determined as follows:

end delete
begin delete

39(1) For claimants who filed and qualified in the calendar year
401983 and for whom postponement has been allowed for each
P28   1subsequent calendar year up to and including the calendar year
22007, thirty-four thousand dollars ($34,000). For these same
3claimants, for the calendar year 2008 or for any approved fiscal
4year commencing within that calendar year, household income
5shall not exceed thirty-five thousand five hundred dollars
6($35,500).

end delete
begin delete

7(2) For all other claimants, for calendar years up to and including
82006, household income shall not exceed twenty-four thousand
9dollars ($24,000). For these same claimants, for the 2007 calendar
10year or for any approved fiscal year commencing within that
11calendar year, household income shall not exceed thirty-one
12thousand five hundred dollars ($31,500). For these same claimants,
13for the 2008 calendar year or for any approved fiscal year
14commencing within that calendar year, household income shall
15not exceed thirty-five thousand five hundred dollars ($35,500).

end delete
begin delete

16(3) (A) For all claimants for the calendar year 2009 or for any
17approved fiscal year commencing within that calendar year,
18postponement shall not be allowed under this chapter, Chapter 3
19(commencing with Section 20626), Chapter 3.3 (commencing with
20Section 20639), or Chapter 3.5 (commencing with Section 20640),
21if household income exceeds thirty-nine thousand dollars
22($39,000).

end delete
begin delete

23(B) For the 2010 calendar year and each subsequent calendar
24year, and for any approved fiscal year commencing within that
25calendar year, the household income amount specified in
26subparagraph (A) shall be adjusted for inflation, in accordance
27with an inflation factor determined pursuant to paragraphs (1) and
28(2) of subdivision (b).

end delete
29

begin deleteSEC. 29.end delete
30begin insertSEC. 31.end insert  

Section 20602 of the Revenue and Taxation Code is
31amended to read:

32

20602.  

Upon approval of a claim described in Section 20601,
33the Controller shall make payments directly to a county tax
34collector for the property taxes owed on behalf of a qualified
35claimant. Payments may, upon appropriation by the Legislature,
36be made out of the amounts otherwise appropriated pursuant to
37Section 16100 of the Government Code that are secured by a
38secured tax lien and obligation as specified by Article 1
39(commencing with Section 16180) of Chapter 5 of Division 4 of
40the Government Code.

P29   1

begin deleteSEC. 30.end delete
2begin insertSEC. 32.end insert  

Section 20621 of the Revenue and Taxation Code is
3amended to read:

4

20621.  

Each claimant applying for postponement under Article
52 (commencing with Section 20601) shall file a claim under penalty
6of perjury with the Controller on a form supplied by the Controller.
7The claim shall contain all of the following:

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

10(b) A statement showing the household income for the period
11set forth in Section 20503.

12(c) A statement describing the residential dwelling in a manner
13that the Controller may prescribe.

14(d) The name of the county in which the residential dwelling is
15located and the address of the residential dwelling.

16(e) The county assessor’s parcel number applicable to the
17property for which the claimant is applying for the postponement
18of property taxes.

19(f) (1) Documentation evidencing the current existence of any
20abstract of judgment, federal tax lien, or state tax lien filed or
21recorded against the applicant, and any recorded mortgage or deed
22of trust that affects the subject residential dwelling, for the purpose
23of determining that the claimant possesses a 40-percent equity in
24the subject residential dwelling as required by paragraph (1) of
25subdivision (b) of Section 20583.

26(2) Actual costs, not in excess of fifty dollars ($50), paid by the
27claimant to obtain the documentation shall reduce the amount of
28the lien for the year, but not the face amount of the payment
29prescribed in Section 16180 of the Government Code.

30(g) Other information required by the Controller to establish
31eligibility.

32

begin deleteSEC. 31.end delete
33begin insertSEC. 33.end insert  

Section 20622 of the Revenue and Taxation Code is
34amended to read:

35

20622.  

The claim for postponement shall be filed after
36September 1 of the fiscal year in which the postponement is
37claimed and on or before April 10 of that fiscal year; if April 10th
38falls on Saturday, Sunday, or a legal holiday, the date is extended
39to the next business day.

P30   1

begin deleteSEC. 32.end delete
2begin insertSEC. 34.end insert  

Section 20623 of the Revenue and Taxation Code is
3amended to read:

4

20623.  

(a) No person shall file a claim for postponement under
5this chapter on or after the effective date of the act adding this
6section, and the Controller shall not accept applications for
7postponement under this chapter on or after that date.

8(b) This section shall become inoperative on July 1, 2016, and
9as of January 1, 2017, is repealed.

10

begin deleteSEC. 33.end delete
11begin insertSEC. 35.end insert  

Section 20639.10 of the Revenue and Taxation Code
12 is amended to read:

13

20639.10.  

The Controller shall maintain a record of all persons
14who have received postponement amounts pursuant to this chapter.
15That record shall include the name and address of the claimant,
16the name and address of the legal owner of the mobilehome, the
17name and address of any other party whose consent is required by
18this chapter, and any other information deemed necessary by the
19Controller for administration purposes.

20

begin deleteSEC. 34.end delete
21begin insertSEC. 36.end insert  

Section 20639.11 of the Revenue and Taxation Code
22 is amended to read:

23

20639.11.  

All amounts postponed pursuant to this chapter shall
24be due if any of the following occurs:

25(a) The claimant ceases to occupy the residential dwelling as
26the principal place of residence, sells, or otherwise disposes of his
27or her mobilehome.

28(b) The claimant dies. However, if the surviving spouse was
29previously approved pursuant to this chapter continues to occupy
30the mobilehome, then the postponed amounts shall not be due
31unless that person dies or ceases to occupy the residential dwelling.

32(c) The failure of a claimant to perform those acts required by
33the legal owner or junior lienholder.

34(d) The claimant allows any subsequent taxes to remain unpaid
35or to be transferred to the unsecured roll.

36(e) Postponement was erroneously allowed because eligibility
37requirements were not met.

38

begin deleteSEC. 35.end delete
39begin insertSEC. 37.end insert  

Section 20639.12 of the Revenue and Taxation Code
40 is amended to read:

P31   1

20639.12.  

If the Controller determines that amounts postponed
2under this chapter have become due and payable, the Controller
3may take any or all of the following actions:

4(a) Demand payment of that amount from the claimant, the
5estate of any decedent claimant, or any person who was a cotenant
6with the claimant pursuant to the registration card.

7(b) Direct the Department of General Services to seize and sell
8any property pledged by the claimant as security for postponement.

9(c) Request the Attorney General to bring an action to recover
10amounts postponed under this chapter by the claimant.

11(d) Utilize any or all of the other enforcement and foreclosure
12provisions set forth in Article 3 (commencing with Section 16200)
13of Chapter 6 of Part 1 of Division 4 of Title 2 of the Government
14Code, as may be applicable.

15

begin deleteSEC. 36.end delete
16begin insertSEC. 38.end insert  

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

18

20645.5.  

(a) If a postponement claim under Chapter 2
19(commencing with Section 20581), Chapter 3.3 (commencing with
20Section 20639), or Chapter 3.5 (commencing with Section 20640)
21is filed timely before the delinquency date of the second installment
22of property taxes on the secured roll, then any delinquent penalties,
23costs, fees, and interest accrued for that fiscal year shall be canceled
24unless the failure to perfect the claim was due to willful neglect
25on the part of the claimant or representative.

26(b) In the event of willful neglect, an electronic funds transfer
27for that current fiscal year can be used to pay delinquent taxes only
28if accompanied by sufficient amounts to pay all of the delinquent
29penalties, costs, fees, and interest. If an amount sufficient to pay
30all of the delinquent penalties, costs, fees, and interest is not
31received by the tax collector within 30 days from the date of the
32electronic funds transfer, the tax collector may return the electronic
33funds transfer to the Controller to deny the postponement claim.

34(c) (1) The Controller shall notify the claimant in writing when
35the electronic funds transfer has been submitted to the tax collector.

36(2) In the event of willful neglect, in addition to the information
37required pursuant to paragraph (1), the Controller shall also notify
38the claimant in writing and provide a copy of the notification to
39the tax collector, that a payment amount sufficient to pay all of
40the delinquent penalties, costs, fees, and interest must be received
P32   1by the tax collector within 30 days from the date of the electronic
2funds transfer, and that if this payment is not received by the tax
3collector, the tax collector may return the electronic funds transfer
4to the Controller to deny the postponement claim.

5

begin deleteSEC. 37.end delete
6begin insertSEC. 39.end insert  

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

8

20645.6.  

(a) If the Controller denies a postponement claim
9under Chapter 2 (commencing with Section 20581), Chapter 3
10(commencing with Section 20625), Chapter 3.3 (commencing with
11Section 20639), or Chapter 3.5 (commencing with Section 20640),
12and the denial is reversed after appeal pursuant to Section 20645.1,
13the Controller shall electronically transfer funds to the county, if
14the taxes for the fiscal year have been paid, for the amount of the
15taxes. If the taxes for the fiscal year are delinquent, any resulting
16penalties or interest shall be canceled.

17(b) The Controller shall notify the claimant in writing when an
18electronic funds transfer has been made pursuant to subdivision
19(a).

20

begin deleteSEC. 38.end delete
21begin insertSEC. 40.end insert  

The Legislature finds and declares that Section 16 of
22this act, which adds Section 3376 to the Revenue and Taxation
23Code, imposes a limitation on the public’s right of access to the
24meetings of public bodies or the writings of public officials and
25agencies within the meaning of Section 3 of Article I of the
26California Constitution. Pursuant to that constitutional provision,
27the Legislature makes the following findings to demonstrate the
28interest protected by this limitation and the need for protecting
29that interest:

30In order to protect those persons subject to enforcement of Part
316 (commencing with Section 3351) of Division 1 of the Revenue
32and Taxation Code against the risk of identity theft, it is in the
33state’s interest to limit public access to information.

34

begin deleteSEC. 39.end delete
35begin insertSEC. 41.end insert  

No reimbursement is required by this act pursuant to
36Section 6 of Article XIII B of the California Constitution for certain
37costs that may be incurred by a local agency or school district
38because, in that regard, this act creates a new crime or infraction,
39eliminates a crime or infraction, or changes the penalty for a crime
40or infraction, within the meaning of Section 17556 of the
P33   1Government Code, or changes the definition of a crime within the
2meaning of Section 6 of Article XIII B of the California
3Constitution.

4However, if the Commission on State Mandates determines that
5this act contains other costs mandated by the state, reimbursement
6to local agencies and school districts for those costs shall be made
7pursuant to Part 7 (commencing with Section 17500) of Division
84 of Title 2 of the Government Code.

9

begin deleteSEC. 40.end delete
10begin insertSEC. 42.end insert  

This act is an urgency statute necessary for the
11immediate preservation of the public peace, health, or safety within
12the meaning of Article IV of the Constitution and shall go into
13immediate effect. The facts constituting the necessity are:

14In order to avoid the imminent sale of tax-defaulted dwellings
15of vulnerable Californians, it is necessary that this act take effect
16immediately.



O

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