Senate Bill No. 825

Introduced by Committee on Governance and Finance (Senators Wolk (Chair), Beall, DeSaulnier, Emmerson, Hernandez, Knight, and Liu)

March 20, 2013

An act to amend Sections 6157 and 6159 of the Government Code, and to amend Sections 75.12, 606, 2611.6, and 3716 of the Revenue and Taxation Code, relating to government finance.

LEGISLATIVE COUNSEL’S DIGEST

SB 825, as introduced, Committee on Governance and Finance. Government finance.

(1) Existing law requires a public agency to accept payment for designated obligations by personal check, as specified, and authorizes the public agency to impose a charge not to exceed the agency’s actual costs if the check is returned unpaid. Existing law also authorizes a public agency to accept a credit card, debit card, or electronic funds transfer, in payment of these designated obligations subject to approval by the governing body of the agency or other appropriate entity, as specified.

This bill would also authorize a public agency to accept a corporate check, cashier’s check, money order, or other draft methods for payment of these designated obligations and to impose a charge for any type of returned check or other authorized payment method that is not honored, in an amount that does not exceed the agency’s actual processing and collections costs. This bill would authorize the amount of the charge to be added to, and become part of, the underlying obligation, as specified.

(2) Existing property tax law requires a supplemental assessment to be made when property undergoes a change in ownership or has had new construction completed after the period in which the property was assessed in an assessment year. For purposes of these provisions, existing property tax law presumes that new construction is completed on the date of completion, unless the owner does not intend to occupy or use the property, in which case the owner is required to notify the county assessor, as specified. Existing property tax law excludes from this notice requirement, and presumes that a supplemental assessment is not required for, an owner of property that meets specified conditions. Existing property tax law requires the owner of property who notifies the assessor that he or she does not intend to occupy or use the property to notify the assessor if certain events occur, as specified.

This bill would require the owner of property, who is excluded from the notice requirement described above and whose property meets specified conditions, to also notify the assessor if certain events occur. By requiring county assessors to process this additional notification from property owners, this bill would impose a state-mandated local program.

(3) Existing property tax law requires, for any tract of land situated in 2 or more revenue districts, that the portion of the land in each district be separately assessed. Existing law also provides, as an exception to that requirement, that where the owner of 2 or more contiguous parcels comprising the multiple district tract is identical and the full value of any parcel is less than $25,000, that parcel may for assessment purposes be combined with the contiguous parcel with the greatest assessed valuation.

This bill would revise the threshold for the purpose of that exception from $25,000 to $50,000.

(4) Existing property tax law requires that each county tax bill, or a statement accompanying that bill, include specified information.

This bill would additionally require that each county tax bill, or a statement accompanying that bill, include information specifying that relief from penalties, if an informal or formal assessment review is requested, shall applies only to the difference between the county assessor’s final determination of value and the value on the assessment roll, as specified.

By imposing a new duty upon local tax officials with respect to information required to be included in each county tax bill, this bill would create a state-mandated local program.

(5) Existing property tax law generally authorizes a county tax collector to sell tax-defaulted property 5 years or more, or 3 years or more in the case of nonresidential commercial property, after that property has become tax defaulted. Existing property tax law requires the tax collector to report specified information regarding the sale to the assessor within 10 days after the sale.

This bill would extend the period of time the tax collector has to report specified information regarding the sale to the assessor from 10 days to 30 days after the sale.

(6)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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

SECTION 1.  

Section 6157 of the Government Code is amended
to read:

6157.  

(a) The state, and each city, whether general law or
chartered, county, and district, each subdivision, department, board,
commission, body, or agency of the foregoing, shall accept personal
checks begin insert , in addition to any other authorized form of payment, end insert drawn
in its favor or in favor of a designated official thereof, in payment
for any license, permit, or fee, or in payment of any obligation
owing to the public agency or trust deposit, if the person issuing
the check furnishes to the person authorized to receive payment
satisfactory proof of residence in this state and if the personal
check is drawn on a banking institution located in this state.

(b) If any personal check begin insert , corporate check, cashier’s check,
money order, or other draft method end insert offered in payment pursuant
to this section is returned without payment, for any reason, a
reasonable charge for the returned check , not to exceed the actual
costs incurred by the public agency, may be imposed to recover
the public agency’s processing and collection costs. This charge
may be added to, and become part of, any underlying obligation
other than an obligation which constitutes a lien on real property,
and a different method of payment for that payment and future
payments by this person may be prescribed.

(c) The acceptance of a personal check begin insert , corporate check,
cashier’s check, money order, or other draft method end insert pursuant to
this section constitutes payment of the obligation owed to the payee
public agency to the extent of the amount of the check as of the
date of acceptance when, but not before, the check is duly paid.

(d) The provisions in subdivision (b) prohibiting a returned
check charge being added to, and becoming a part of, an obligation
which constitutes a lien on real property do not apply to obligations
under the Veterans’ Farm and Home Purchase Act of 1974 (Article
3.1 (commencing with Section 987.50) of Chapter 6 of Division
4 of the Military and Veterans Code).

SEC. 2.  

Section 6159 of the Government Code is amended to
read:

6159.  

(a) The following definitions apply for purposes of this
section:

(1) “Credit card” means any card, plate, coupon book, or other
credit device existing for the purpose of being used from time to
time upon presentation to obtain money, property, labor, or services
on credit.

(2) “Card issuer” means any person, or his or her agent, who
issues a credit card and purchases credit card drafts.

(3) “Cardholder” means any person to whom a credit card is
issued or any person who has agreed with the card issuer to pay
obligations arising from the issuance of a credit card to another
person.

(4) “Debit card” means a card or other means of access to a
debit card cardholder’s account that may be used to initiate
electronic funds transfers from that account.

(5) “Draft purchaser” means any person who purchases credit
card drafts.

(6) “Electronic funds transfer” means any method by which a
person permits electronic access to, and transfer of, money held
in an account by that person.

(b) Subject to subdivisions (c) and (d), a court, city, county, city
and county, or other public agency may authorize the acceptance
of a credit card, debit card, or electronic funds transfer for any of
the following:

(1) The payment for the deposit of bail for any offense not
declared to be a felony or for any court-ordered fee, fine, forfeiture,
penalty, assessment, or restitution. Use of a card or electronic funds
transfer pursuant to this paragraph may include a requirement that
the defendant be charged any administrative fee charged by the
company issuing the card or processing the account for the cost
of the transaction.

(2) The payment of a filing fee or other court fee.

(3) The payment of any towage or storage costs for a vehicle
that has been removed from a highway, or from public or private
property, as a result of parking violations.

(4) The payment of child, family, or spousal support, including
reimbursement of public assistance, related fees, costs, or penalties,
with the authorization of the cardholder or accountholder.

(5) The payment for services rendered by any city, county, city
and county, or other public agency.

(6) The payment of any fee, charge, or tax due a city, county,
city and county, or other public agency.

(7) The payment of any moneys payable to the sheriff pursuant
to a levy under a writ of attachment or writ of execution. If the use
of a card or electronic funds transfer pursuant to this paragraph
includes any administrative fee charged by the company issuing
the card or processing the account for the cost of the transaction,
that fee shall be paid by the person who pays the money to the
sheriff pursuant to the levy.

(8) The payment of a donation, gift, bequest, or devise made to
or in favor of a county, or to or in favor of the board of supervisors
of a county, pursuant to Section 25355.

(c) A court desiring to authorize the use of a credit card, debit
card, or electronic funds transfer pursuant to subdivision (b) shall
obtain the approval of the Judicial Council. A city desiring to
authorize the use of a credit card, debit card, or electronic funds
transfer pursuant to subdivision (b) shall obtain the approval of its
city council. Any other public agency desiring to authorize the use
of a credit card, debit card, or electronic funds transfer pursuant
to subdivision (b) shall obtain the approval of the governing body
that has fiscal responsibility for that agency.

(d) After approval is obtained, a contract may be executed with
one or more credit card issuers, debit card issuers, electronic funds
transfer processors, or draft purchasers. The contract shall provide
for the following matters:

(1) The respective rights and duties of the court, city, county,
city and county, or other public agency and card issuer, funds
processor, or draft purchaser regarding the presentment,
acceptability, and payment of credit and debit card drafts and
electronic funds transfer requests.

(2) The establishment of a reasonable means by which to
facilitate payment settlements.

(3) The payment to the card issuer, funds processor, or draft
purchaser of a reasonable fee or discount.

(4) Any other matters appropriately included in contracts with
respect to the purchase of credit and debit card drafts and
processing of electronic funds transfer requests as may be agreed
upon by the parties to the contract.

(e) The honoring of a credit card, debit card, or electronic funds
transfer pursuant to subdivision (b) hereof constitutes payment of
the amount owing to the court, city, county, city and county, or
other public agency as of the date the credit or debit card is honored
or the electronic funds transfer is processed, provided the credit
or debit card draft is paid following its due presentment to a card
issuer or draft purchaser or the electronic funds transfer is
completed with transfer to the agency requesting the transfer.

(f) If any credit or debit card draft is not paid following due
presentment to a card issuer or draft purchaser or is charged back
to the court, city, county, city and county, or other public agency
for any reason, any record of payment made by the court, city, or
other public agency honoring the credit or debit card shall be void.
If any electronic funds transfer request is not completed with
transfer to the agency requesting the transfer or is charged back
to the agency for any reason, any record of payment made by the
agency processing the electronic funds transfer shall be void. Any
receipt issued in acknowledgment of payment shall also be void.
The obligation of the cardholder or accountholder shall continue
as an outstanding obligation as if no payment had been attempted.

begin insert

(g) If a credit card, debit card draft, electronic transfer, or other
payment offered in payment is returned without payment, for any
reason, a reasonable charge for the charge back or return, not to
exceed the actual costs incurred by the public agency, may be
imposed to recover the public agency’s processing and collection
costs. This charge may be added to, and become part of, any
underlying obligation other than an obligation which constitutes
a lien on real property, and a different method of payment for that
payment and future payments by this person may be prescribed.

end insert begin delete

(g)

end delete

begin insert (h) end insert  Notwithstanding Title 1.3 (commencing with Section 1747)
of Part 4 of Division 3 of the Civil Code, a court, city, county, city
and county, or any other public agency may impose a fee for the
use of a credit or debit card or electronic funds transfer, not to
exceed the costs incurred by the agency in providing for payment
by credit or debit card or electronic funds transfer. These costs
may include, but shall not be limited to, the payment of fees or
discounts as specified in paragraph (3) of subdivision (d). Any fee
imposed by a court pursuant to this subdivision shall be approved
by the Judicial Council. Any fee imposed by any other public
agency pursuant to this subdivision for the use of a credit or debit
card or electronic funds transfer shall be approved by the governing
body responsible for the fiscal decisions of the public agency.

begin delete

(h)

end delete

begin insert (i) end insert  Fees or discounts provided for under paragraph (3) of
subdivision (d) shall be deducted or accounted for prior to any
statutory or other distribution of funds received from the card
issuer, funds processor, or draft purchaser to the extent not
recovered from the cardholder or accountholder pursuant to
subdivision begin delete (g) end delete begin insert (h) end insert .

begin delete

(i)

end delete

begin insert (j) end insert  The Judicial Council may enter into a master agreement with
one or more credit or debit card issuers, funds processors, or draft
purchasers for the acceptance and payment of credit or debit card
drafts and electronic funds transfer requests received by the courts.
Any court may join in any of these master agreements or may enter
into a separate agreement with a credit or debit card issuer, funds
processor, or draft purchaser.

SEC. 3.  

Section 75.12 of the Revenue and Taxation Code is
amended to read:

75.12.  

(a) For the purposes of this chapter, new construction
shall be deemed completed on the earliest of the following dates:

(1) (A) The date upon which the new construction is available
for use by the owner, unless the owner does not intend to occupy
or use the property. The owner shall notify the assessor prior to,
or within 30 days of, the date of commencement of construction
that he or she does not intend to occupy or use the property. If the
owner does not notify the assessor as provided in this subdivision,
the date shall be conclusively presumed to be the date of
completion.

(B) Notwithstanding subparagraph (A), an owner is not required
to provide the notice described in subparagraph (A) and it is
begin insert ..0 end insert rebuttably presumed that a supplemental assessment is not
required on property described in clauses (i) to (iii), inclusive, if
the owner’s property meets all of the following conditions:

(i) The property is subdivided into five or more parcels in
accordance with the Subdivision Map Act (Division 2
(commencing with Section 66410) of Title 7 of the Government
Code), or any successor to that law.

(ii) A map describing the parcels has been recorded.

(iii) Zoning regulations that are applicable to the parcels or
building permits for the parcels require that, except for parcels
dedicated for public use, single-family residences will be
constructed on the parcels.

(2) If the owner does not intend to occupy or use the property,
the date the property is occupied or used with the owner’s consent.

(3) If the property cannot be functionally used or occupied on
the date it is available for use considering the type of property and
any special facts and circumstances affecting use or occupancy,
the date the property can be functionally used or occupied.

(b) For the purposes of this section:

(1) “Occupy or use” means the occupancy or use by the owner,
including the rental or lease of the property, except as provided in
paragraph (2).

(2) Property shall not be considered occupied or used by the
owner or with the owner’s consent if the occupancy or use is
incidental to an offer for a change of ownership, including, but not
limited to, use of the property as a model home.

(c) The board, after consultation with the California Assessors
Association, shall adopt rules and regulations defining the date of
completion of new construction in accordance with this section.
The rules and regulations shall not define the date of completion
in a manner that the date of completion of all new construction is
postponed until the following lien date.

(d) Nothing in this section shall preclude the reassessment of
that property on the assessment roll for January 1 following the
date of completion.

(e) The owner of any property who notifies the assessor pursuant
to begin insert subparagraph (A) of paragraph (1) of end insert subdivision (a) that he
or she does not intend to occupy or use the property begin insert and the owner
of any property that meets all of the conditions under subparagraph
(B) of paragraph (1) of subdivision (a) end insert shall notify the assessor
within 45 days of the earliest date that any of the following occur:

(1) The property changes ownership pursuant to an unrecorded
contract of sale.

(2) The property is leased or rented.

(3) The property is occupied or used by the owner for any
purpose other than provided in subdivision (b).

(4) The property is occupied or used with the owner’s consent
for any purpose other than provided in subdivision (b).

(f) The failure to provide the assessor the notice required by
subdivision (e), whether requested or not, shall result in a penalty
in the amount specified in Section 482.

SEC. 4.  

Section 606 of the Revenue and Taxation Code is
amended to read:

606.  

(a) Except as provided in subdivisions (b) and (c), when
any tract of land is situated in two or more revenue districts, the
part in each district shall be separately assessed.

(b) Where the owner of two or more contiguous parcels
comprising the tract is identical, and the full value of any parcel
is less than begin delete twenty-five thousand dollars ($25,000) end delete begin insert fifty thousand
dollars ($50,000) end insert , that parcel may be combined with the contiguous
parcel with the greatest assessed valuation.

(c) Where the owner of two or more contiguous parcels
comprising the tract is identical, and the tract of land is being used
for a single-family residence and constitutes 45,000 square feet or
less, the smallest parcel may be combined with the largest
contiguous parcel.

SEC. 5.  

Section 2611.6 of the Revenue and Taxation Code is
amended to read:

2611.6.  

The following information shall be included in each
county tax bill, whether mailed or electronically transmitted, or in
a separate statement accompanying the bill:

(a) The full value of locally assessed property, including
assessments made for irrigation district purposes in accordance
with Section 26625.1 of the Water Code.

(b) The tax rate required by Article XIII A of the California
Constitution.

(c) The rate or dollar amount of taxes levied in excess of the
1-percent limitation to pay for voter-approved indebtedness
incurred before July 1, 1978, or bonded indebtedness for the
acquisition or improvement of real property approved by two-thirds
of the voters on or after June 4, 1986.

(d) The amount of any special taxes and special assessments
levied.

(e) The amount of any tax rate reduction pursuant to Section
96.8, with the notation: “Tax reduction by (name of jurisdiction).”

(f) The amount of any exemptions. Exemptions reimbursable
by the state shall be shown separately.

(g) The total taxes due and payable on the property covered by
the bill.

(h) Instructions on tendering payment, including the name and
mailing address of the tax collector.

(i) The billing of any special purpose parcel tax as required by
paragraph (2) of subdivision (b) of Section 53087.4 of the
Government Code, or any successor to that paragraph.

(j) Information specifying all of the following:

(1) That if the taxpayer disagrees with the assessed value as
shown on the tax bill, the taxpayer has the right to an informal
assessment review by contacting the assessor’s office.

(2) That if the taxpayer and the assessor are unable to agree on
a proper assessed value pursuant to an informal assessment review,
the taxpayer has the right to file an application for reduction in
assessment for the following year with the county board of
equalization or the assessment appeals board, as applicable, and
the time period during which the application will be accepted.

(3) The address of the clerk of the county board of equalization
or the assessment appeals board, as applicable, at which forms for
an application for reduction in assessment may be obtained.

begin insert

(4) That if an informal or formal assessment review is requested,
relief from penalties shall apply only to the difference between the
county assessor’s final determination of value and the value on
the assessment roll for the fiscal year covered.

end insert

SEC. 6.  

Section 3716 of the Revenue and Taxation Code is
amended to read:

3716.  

Within begin delete 10 end delete begin insert 30 end insert days after the sale, the tax collector shall
report to the assessor the following:

(a) The name of the purchaser.

(b) The date the property was sold.

(c) The amount for which the property was sold.

(d) The description of the property conveyed.

SEC. 7.  

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