Amended in Assembly April 30, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 587

Introduced by Assembly Member Chau

February 24, 2015

An act to add Section 798.58.5 to the Civil Code, to amend Sections 18092.7, 18116.1, and 18550 of the Health and Safety Code, and to amend Section 5832 of the Revenue and Taxation Code, relating to mobilehomes.

LEGISLATIVE COUNSEL’S DIGEST

AB 587, as amended, Chau. Mobilehomes: payments: nonpayment or late payments.

(1) Existing law subjects manufactured homes or mobilehomes sold as new prior to July 1, 1980, to a vehicle license fee and requires annual payment of the fee. Existing law provides that nonpayment of certain fees and penalties, including the vehicle license fee, constitutes a lien on the manufactured home or mobilehome, and prohibits the Department of Housing and Community Development from, among other things, issuing a duplicate or new certificate of title or registration card or amending the permanent title record of the manufactured home or mobilehome that is subject of that lien.

This begin delete bill would, end delete begin insert bill, end insert when a person who is not currently the registered owner of a manufactured home or mobilehome applies to the department for registration or transfer of registration of the manufactured home or mobilehome prior to December 31, 2018, and meets other specified requirements, begin insert would end insert require the department to waive all outstanding charges assessed by the department prior to the transfer of title of the manufactured home or mobilehome, release any lien imposed with respect to those charges, issue a duplicate or new certificate of title or registration card, and amend the title record of the manufactured home or mobilehome.

(2) Existing law provides that mobilehomes and manufactured homes not subject to the vehicle license fee are subject to local property taxation, and requires the department to withhold the registration or transfer of registration of any manufactured home or mobilehome subject to local property taxation until the applicant for registration presents a tax clearance certificate or conditional tax clearance certificate issued by the tax collector of the county where the manufactured home or mobilehome is located. Existing law requires the county tax collector to issue a tax clearance certificate or conditional tax clearance certificate if specified requirements are met.

This begin delete bill would, end delete begin insert bill, end insert when a person who is not currently the registered owner of a manufactured home or mobilehome subject to local property taxation applies to the department for registration or transfer of registration of the manufactured home or mobilehome prior to December 31, 2018, and meets other specified requirements, begin insert would end insert require the department to issue a conditional transfer of title. The bill would require a county tax collector to issue a tax liability certificate to a person with a conditional transfer of title who applies for the certificate prior to January 1, begin delete 2019 end delete begin insert 2019, end insert and pays the taxes reasonably owed from the date of sale of the manufactured home or mobilehome. By increasing the duties of county tax collectors this bill would impose a state-mandated local program.

(3) Existing law authorizes the management of a mobilehome park to terminate a tenancy for, among other things, failure of the homeowner or resident to comply with a local ordinance or state law or regulation relating to mobilehomes within a reasonable time after the homeowner receives a notice of noncompliance from the appropriate governmental agency. Under existing law, it is unlawful for any person to use or cause, or permit to be used for occupancy, any manufactured home or mobilehome that does not conform to the registration requirements of the department.

This bill would prohibit eviction from a mobilehome park for nonconformance with the registration and titling requirements of state law prior to January 1, 2017, or when an application to transfer title of a manufactured home or mobilehome pursuant to the above-described provisions is filed prior to January 1, 2019, and completed within one year of the filing date. The bill would provide that it is not unlawful under these conditions for a park owner to permit an applicant to transfer title who is not in compliance with the registration requirements of the department to occupy a manufactured home or mobilehome. The bill would also make related and conforming changes.

(4)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.

(5)Section 2229 of the Revenue and Taxation Code requires the Legislature to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.

This bill would provide that, notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.

Vote: ²⁄₃. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

SECTION 1.  

Section 798.58.5 is added to the Civil Code, to
read:

798.58.5.  

Notwithstanding Section 798.56, nonconformance
with the registration and titling requirements of state law, including,
but not limited to, nonpayment or late payment of any fees, taxes,
penalties, or interest related to the ownership of a mobilehome or
manufactured home, shall not be a basis for eviction from a
mobilehome park in either of the following situations:

(a)  begin delete Prior end delete begin insert If the nonconformance occurs prior end insert to January 1, 2017.

(b) An application to transfer title pursuant to Article 4
(commencing with Section 18098) of Chapter 8 of Part 2 of
Division 13 or subdivision (d) of Section 18116.1 of the Health
and Safety Code is filed prior to January 1, 2019, and completed
within one year of the filing date.

SEC. 2.  

Section 18092.7 of the Health and Safety Code is
amended to read:

18092.7.  

(a)  Except as provided in subdivision (b) and Section
18116.1, the department shall withhold the registration or transfer
of registration of any manufactured home, mobilehome, or floating
home which is subject to local property taxation, other than a new
manufactured home, mobilehome, or floating home for which
application is being made for an original registration, until the
applicant presents a tax clearance certificate or a conditional tax
clearance certificate issued pursuant to Section 2189.8 or 5832 of
the Revenue and Taxation Code by the tax collector of the county
where the manufactured home, mobilehome, or floating home is
located. Any conditional tax clearance certificate presented shall
indicate that the tax liability has been satisfied pursuant to
paragraph (3) of subdivision (m) of Section 18035.

(b)  In lieu of the tax clearance certificate or conditional tax
clearance certificate required by subdivision (a), the department
may accept a certification signed by the escrow officer under
penalty of perjury that the tax collector of the county where the
manufactured home is located has failed to respond to the written
demand for a conditional tax clearance certificate as prescribed
by subdivision (m) of Section 18035.

SEC. 3.  

Section 18116.1 of the Health and Safety Code is
amended to read:

18116.1.  

(a)  Nonpayment of the fees and penalties provided
for in Sections 18114, 18114.1, and 18115, and in subdivisions
(a), (b), (c), and (d) of Section 18116 that are due on a mobilehome,
manufactured home, commercial coach, truck camper, or floating
home shall constitute a lien in favor of the State of California in
the amount owing.

(b)  Notwithstanding any other provision of law, the lien
provided for in subdivision (a) shall include all fees and penalties
due and unpaid beginning with the fees for original registration
that became delinquent for 120 days or more and continue to accrue
to include all fees and penalties that subsequently become due and
remain unpaid.

(c)  Until the amount of a lien provided for in subdivision (a)
or (b) is paid to the department, the department shall not do either
of the following:

(1)  Amend the permanent title record of the manufactured
home, mobilehome, commercial coach, truck camper, or floating
home which is the subject of the lien for the purpose of transferring
any ownership interest or transferring or creating any security
interest in the manufactured home, mobilehome, commercial coach,
truck camper, or floating home.

(2)  Issue any duplicate, substitute, or new certificate of title,
registration card, or copy of a registration card with respect to the
manufactured home, mobilehome, commercial coach, truck camper,
or floating home which is the subject of the lien.

(d) (1) When application is made to the department for
registration or transfer of registration of a manufactured home or
mobilehome, and the applicant is not currently the registered
owner, with respect to all charges assessed by the department prior
to the date the title or interest in the manufactured home or
mobilehome was transferred to the applicant, the department shall
release any lien imposed pursuant to this chapter and waive all
outstanding charges assessed by the department, if all of the
following requirements are met:

(A) The applicant provides documentation demonstrating to the
satisfaction of the department ownership and the date of acquisition
of begin delete title or interest end delete begin insert ownership interest end insert pursuant to Section 18100.5
or 18102.5.

(B) The application is made prior to December 31, 2018.

(C) The applicant pays any charges assessed by the department
during the period between the time the applicant took begin delete title or
interest end delete begin insert ownership interest end insert or December 31, 2014, whichever is
later, and the time the applicant applies for relief pursuant to this
subdivision.

(D) The applicant has not previously filed for relief pursuant to
this subdivision.

(2) If the applicant meets the requirements of paragraph (1) and
the other requirements of this chapter not related to nonpayment
or late payment of the department’s charges, fees, and penalties
related to registration and titling, the department shall waive the
outstanding charges, fees, or penalties identified in paragraph (1),
amend the title record, and issue a duplicate, substitute, or new
certificate of title, registration card, or copy of a registration card
with respect to the manufactured home or mobilehome, in
conformance with this chapter.

(3) For purposes of any amounts owing pursuant to this
subdivision, the department may establish a long term payment
program of up to five years. The department may provide that any
amounts owing under the payment program shall constitute a lien
in favor of the State of California in the amount owing and shall
be paid in full if the manufactured home or mobilehome is
subsequently transferred. Failure to make the payments required
by the plan is a violation of this chapter for which the department
may suspend, revoke, or cancel the certificate of title pursuant to
Section 18122.

(4) (A) If the manufactured home or mobilehome for which an
application has been submitted and approved pursuant to this
subdivision and the other requirements of this chapter not related
to nonpayment or late payment of the department’s charges, fees,
and penalties related to registration and titling, is subject to local
property taxation, the department shall issue a conditional transfer
of title.

(B) Upon presentation of a completed tax liability certificate as
provided in subdivision (f) of Section 5832 of the begin delete Revenue & end delete
begin insert Revenue and end insert Taxation Code, if the applicant meets all of the
requirements of this section and the other requirements of this
chapter not related to nonpayment or late payment of the
department’s charges, fees, and penalties related to registration
and titling, and the requirements of paragraph (2) are met, the
department shall amend the title record and issue a duplicate,
substitute, or new certificate of title.

SEC. 4.  

Section 18550 of the Health and Safety Code is
amended to read:

18550.  

It is unlawful for any person to use or cause, or permit
to be used for occupancy, any of the following manufactured homes
or mobilehomes wherever the manufactured homes or mobilehomes
are located, or recreational vehicles located in mobilehome parks:

(a)  Any manufactured home, mobilehome, or recreational
vehicle supplied with fuel, gas, water, electricity, or sewage
connections, unless the connections and installations conform to
regulations of the department.

(b)  Any manufactured home, mobilehome, or recreational
vehicle that is permanently attached with underpinning or
foundation to the ground, except for a manufactured home or
mobilehome bearing a department insignia or federal label, that is
installed in accordance with this part.

(c)  (1) Any manufactured home or mobilehome that does not
conform to the registration requirements of the department, except
as otherwise provided in this subdivision.

(2) Nonconformance is not a basis for eviction from a
mobilehome park of a person claiming to be an owner of a
manufactured home or mobilehome begin delete if end delete begin insert in either of the following
situations: end insert

begin insert

(A) If the noncomformance occurs prior to January 1, 2017.

end insert

begin insert (B) end insert begin insert   end insert begin insert If end insert the person files an application to transfer title pursuant to
Article 4 (commencing with Section 18098) of Chapter 8 of Part
2 of Division 13 or subdivision (d) of Section 18116.1 prior to
January 1, 2019, and completes the application within one year of
the filing date.

(3) It is not a violation of this section for a park owner to allow
a person not in compliance with the registration requirements of
the department to occupy a manufactured home or mobilehome if
the person meets the requirements of paragraph (2).

(d)  Any manufactured home, mobilehome, or recreational
vehicle in an unsafe or unsanitary condition.

(e)  Any manufactured home, mobilehome, or recreational
vehicle that is structurally unsound and does not protect its
occupants against the elements.

SEC. 5.  

Section 5832 of the Revenue and Taxation Code is
amended to read:

5832.  

(a) (1) Upon application, the county tax collector shall
issue a tax clearance certificate or a conditional tax clearance
certificate.

(2) Any tax clearance certificate issued shall be used to permit
registration of used manufactured homes and for any other purposes
that may be prescribed by the Controller. The certificate may
indicate that the county tax collector finds that no local property
tax is due or is likely to become due, or that any applicable local
property taxes have been paid or are to be paid in a manner not
requiring the withholding of registration or the transfer of
registration.

(3) Any conditional tax clearance certificate issued shall indicate
that the county tax collector finds that a tax liability exists, the
amount due, and the final date that amount may be paid before a
further tax liability is incurred. The certificate shall be in any form
that the Controller may prescribe, and shall be executed, issued,
and accepted for clearance of registration or permit issuance on
the conditions which the Controller may prescribe.

(b) Within five working days of receipt of the written demand
for a conditional tax clearance certificate or tax clearance
certificate, the county tax collector shall forward the conditional
tax clearance certificate or tax clearance certificate, showing no
tax liability exists, to the requesting escrow officer. In the event
the final due date of the tax clearance certificate or conditional tax
clearance certificate expires within 30 days of the date of its
issuance, an additional conditional tax clearance certificate or tax
clearance certificate shall be completed, which has a final due date
of at least 30 days beyond the date of issuance. The tax collector
shall not charge a fee for the issuance of a certificate unless a
previously issued tax clearance certificate or conditional tax
clearance certificate expires prior to the date upon which title
transfers. The fee for the issuance of a subsequent certificate with
respect to that manufactured home shall be an amount equal to the
actual costs of preparing and processing that certificate.

(c) If the tax collector fails to comply with the demand within
30 days from the date the demand is mailed, the escrow officer
may close the escrow in accordance with the provisions of
subdivision (m) of Section 18035 of the Health and Safety Code.

(d) Notwithstanding any provisions of law requiring the tax
collector to issue a tax clearance certificate or conditional tax
clearance certificate within a specified period of time, when an
escrow information demand is made pursuant to Section 18035 of
the Health and Safety Code for a manufactured home that has not
been enrolled in the county, the tax collector shall be afforded the
number of working days necessary for the assessor to determine
the value of the manufactured home and for the auditor to extend
tax liability.

(e) The issuance, alteration, forgery, or use of any tax clearance
certificate or conditional certificate in a manner contrary to the
requirements of the Controller constitutes a misdemeanor.

(f) (1) Prior to January 1, 2019, a person with a conditional
transfer of title as described in subparagraph (A) of paragraph (4)
of subdivision (d) of Section 18116.1 of the Health begin delete & end delete begin insert and end insert Safety
Code may apply to the tax collector to issue either a tax liability
or tax clearance certificate. The county tax collector shall issue a
tax liability certificate if the person pays the taxes reasonably owed
from the date of sale as shown on the conditional transfer of title,
without penalties or interest, and not to exceed the amounts
attributable one year prior to January 1, 2016.

(2) Upon issuance of a tax clearance or liability certificate, the
applicant shall be listed as the owner of record for all local property
tax purposes and the home shall not be subject to lien or seizure
based on any taxes, penalties, or interest as noted on the certificate
issued pursuant to paragraph (1). The tax collector shall notify the
assessor and other county agencies of the change.

(3) This subdivision does not relieve any owner other than the
applicant from tax liability, including penalties and interest, arising
from nonpayment prior to the date of sale, or prohibit a county tax
collector from collecting delinquent taxes, penalties, or interest
due prior to the date of sale, from any owner other than the
applicant.

SEC. 6.  

The Legislature finds and declares that the abatement
of taxes, penalties, and interest incurred prior to the date of sale
of a mobilehome or manufactured home to an applicant, as
described in this act, serves a public purpose and does not constitute
a gift of public funds within the meaning of Section 6 of Article
XVI of the California Constitution.

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.

SEC. 8.  

Notwithstanding Section 2229 of the Revenue and
Taxation Code, no appropriation is made by this act and the state
shall not reimburse any local agency for any property tax revenues
lost by it pursuant to this act.