Amended in Senate June 23, 2015

Amended in Assembly April 30, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 587


Introduced by Assembly Member Chau

February 24, 2015


An actbegin insert to amend Sections 798.15 and 798.74 of, andend insert to add Section 798.58.5begin delete toend deletebegin insert to,end insert the Civil Code, to amend Sections 18092.7, 18116.1,begin delete and 18550end deletebegin insert 18100.5, and 18550end insert 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 bill, 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, would 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.begin insert This billend insertbegin insert would require a registered owner to apply to the department for a transfer clearance certificate, as specifiedend insertbegin insert, prior to transferring any ownership interest or transferring or creating any security interest in the manufactured home or mobilehome. This billend insertbegin insert would require the departmentend insertbegin insert, upon notification of any transfer of any ownership interest or transferring or creating any security interest in a manufactured home or mobilehome, to notify the transferee of the obligation to title and register the home and the procedure for titling and registration, and would require the department to notify the park management if the transferee fails to comply with the titling and registration requirements.end insert

begin insert

This bill would require the transferor or the owner of the mobilehome park, as applicable, whenever any title or interest in a manufactured home, mobilehome, commercial coach, truck camper, or floating home, or, whenever any title or interest of a registered owner of a manufactured home or mobilehome located within a mobilehome park, is transferred to another person or entity, to notify the department, as specified, and would authorize the department to prescribe a form for this purpose.

end insert

(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.

begin insert

The California Constitution authorizes the Legislature to exempt personal property from taxation by means of a statute approved by a 23 vote of the membership of each house.

end insert

This bill, 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, would 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, and pays the taxesend deletebegin insert 2019. Pursuant to the constitutional authorization described above, this bill would require the payment of only a portion of the taxes, as specified,end insert reasonably owed from the date of sale of the manufactured home or mobilehome. By increasing the duties of county taxbegin delete collectorsend deletebegin insert collectors,end insert this bill would impose a state-mandated local program.

begin insert

(3) The Mobilehome Residency Law governs the terms and conditions of residency in mobilehome parks and prescribes the content of a rental agreement for a tenancy.

end insert
begin insert

This bill would require a rental agreement to contain a provision stating that, prior to transferring any ownership interest in the mobilehome or manufactured home, the management may require proof of registration as owner and a copy of a transfer clearance certificate issued by the Department of Housing and Community Development.

end insert
begin delete

(3)

end delete

begin insert(4)end insert 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.

begin insert

(5) Existing law authorizes the management of a mobilehome park to require prior approval of a purchaser of a mobilehome that will remain in the park.

end insert
begin insert

This bill would also authorize the management to require proof of registration as owner and a copy of a transfer clearance certificate issued by the Department of Housing and Community Development. This bill would require management to notify the Department of Housing and Community Development of the sale of a home by forwarding specified information to the department if management approves for residency a prospective homeowner who is purchasing a home that will remain in the park and enters into a lease agreement with the prospective homeowner.

end insert
begin delete

(4)

end delete

begin insert(6)end insert 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.

begin delete

(5)

end delete

begin insert(7)end insert 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: 23. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

P4    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 798.15 of the end insertbegin insertCivil Codeend insertbegin insert is amended to
2read:end insert

3

798.15.  

The rental agreement shall be in writing and shall
4contain, in addition to the provisions otherwise required by law to
5be included, all of the following:

6(a) The term of the tenancy and the rent therefor.

P5    1(b) The rules and regulations of the park.

2(c) A copy of the text of this chapter shall be provided as an
3exhibit and shall be incorporated into the rental agreement by
4reference. Management shall do one of the following prior to
5February 1 of each year, if a significant change was made in this
6chapter by legislation enacted in the prior year:

7(1) Provide all homeowners with a copy of this chapter.

8(2) Provide written notice to all homeowners that there has been
9a change to this chapter and that they may obtain one copy of this
10chapter from management at no charge. Management shall provide
11a copy within a reasonable time, not to exceed seven days, upon
12request.

13(d) A provision specifying that (1) it is the responsibility of the
14management to provide and maintain physical improvements in
15the common facilities in good working order and condition and
16(2) with respect to a sudden or unforeseeable breakdown or
17deterioration of these improvements, the management shall have
18a reasonable period of time to repair the sudden or unforeseeable
19breakdown or deterioration and bring the improvements into good
20working order and condition after management knows or should
21have known of the breakdown or deterioration. For purposes of
22this subdivision, a reasonable period of time to repair a sudden or
23unforeseeable breakdown or deterioration shall be as soon as
24possible in situations affecting a health or safety condition, and
25shall not exceed 30 days in any other case except where exigent
26circumstances justify a delay.

27(e) A description of the physical improvements to be provided
28the homeowner during his or her tenancy.

29(f) A provision listing those services which will be provided at
30the time the rental agreement is executed and will continue to be
31offered for the term of tenancy and the fees, if any, to be charged
32for those services.

33(g) A provision stating that management may charge a
34reasonable fee for services relating to the maintenance of the land
35and premises upon which a mobilehome is situated in the event
36the homeowner fails to maintain the land or premises in accordance
37with the rules and regulations of the park after written notification
38to the homeowner and the failure of the homeowner to comply
39within 14 days. The written notice shall state the specific condition
40to be corrected and an estimate of the charges to be imposed by
P6    1management if the services are performed by management or its
2agent.

begin insert

3(h) A provision stating that, prior to transferring any ownership
4interest in the mobilehome or manufactured home, the management
5may require proof of registration as owner pursuant to Section
618080.1 of the Health and Safety Code and a copy of a transfer
7clearance certificate issued by the Department of Housing and
8Community Development pursuant to Section 18116.1 of the Health
9and Safety Code.

end insert
begin delete

10(h)

end delete

11begin insert(i)end insert All other provisions governing the tenancy.

begin delete

12(i)

end delete

13begin insert(j)end insert A copy of the following notice. Management shall also, prior
14to February 1 of each year, provide a copy of the following notice
15to all homeowners:
16

 

IMPORTANT NOTICE TO ALL MANUFACTURED HOME/MOBILEHOME OWNERS: CALIFORNIA LAW REQUIRES THAT YOU BE MADE AWARE OF THE FOLLOWING:

 

The Mobilehome Residency Law (MRL), found in Section 798 et seq. of the Civil Code, establishes the rights and responsibilities of homeowners and park management. The MRL is deemed a part of the terms of any park rental agreement or lease. This notice is intended to provide you with a general awareness of selected parts of the MRL. It does not serve as a legal explanation or interpretation. For authoritative information, you must read and understand the laws. These laws change from time to time. In any year in which the law has changed, you may obtain one copy of the full text of the law from management at no charge. This notice is required by Civil Code Section 798.15(i) and the information provided may not be current.

 

Homeowners and park management have certain rights and responsibilities under the MRL. These include, but are not limited to:

 

1.

 

Management must give a homeowner written notice of any increase in his or her rent at least 90 days before the date of the increase. (Civil Code Section 798.30)

2.

 

No rental or sales agreement may contain a provision by which a purchaser or a homeowner waives any of his or her rights under the MRL. (Civil Code Sections 798.19, 798.77)

3.

 

Management may not terminate or refuse to renew a homeowner’s tenancy except for one or more of the authorized reasons set forth in the MRL. (Civil Code Sections 798.55, 798.56)

4.

 

A homeowner must give written notice to the management of not less than 60 days before vacating his or her tenancy. (Civil Code Section 798.59)

5.

 

Homeowners, residents, and their guests must comply with the rental agreement or lease, including the reasonable rules and regulations of the park and all applicable local ordinances and state laws and regulations relating to mobilehomes. Failure to comply could be grounds for eviction from the park. (Civil Code Section 798.56)

6.

 

Homeowners must pay rent, utility charges, and reasonable incidental service charges in a timely manner. Failure to comply could be grounds for eviction from the park. (Civil Code Section 798.56)

7.

 

Homeowners have a right to peacefully assemble and freely communicate with respect to mobilehome living and for social or educational purposes. Homeowners have a right to meet in the park, at reasonable hours and in a reasonable manner, for any lawful purpose. Homeowners may not be charged a cleaning deposit in order to use the park clubhouse for meetings of resident organizations or for other lawful purposes, such as to hear from political candidates, so long as a homeowner of the park is hosting the meeting and all park residents are allowed to attend. Homeowners may not be required to obtain liability insurance in order to use common facilities unless alcohol is served. (Civil Code Sections 798.50, 798.51)

8.

 

If a home complies with certain standards, the homeowner is entitled to sell it in place in the park. Management may require certain upgrades. Management may not require a homeowner to sell his or her home to the park, may not charge a transfer or selling fee, and may not require a homeowner to use a broker or dealer approved by the park. A homeowner has a right to advertise his or her home for sale. Management may deny approval of a buyer, but only for certain reasons listed in the law. (Civil Code Sections 798.70-798.74)

9.

 

Management has the right to enter the space upon which a mobilehome is situated for maintenance of utilities, trees, and driveways; for inspection and maintenance of the space in accordance with the rules and regulations of the park when the homeowner or resident fails to maintain the space; and for protection and maintenance of the mobilehome park at any reasonable time, but not in a manner or at a time that would interfere with the resident’s quiet enjoyment of his or her home. (Civil Code Section 798.26)

10.

 

A homeowner may not make any improvements or alterations to his or her space or home without following the rules and regulations of the park and all applicable local ordinances and state laws and regulations, which may include obtaining a permit to construct, and, if required by park rules or the rental agreement, without prior written approval of management. Failure to comply could be grounds for eviction from the park. (Civil Code Section 798.56)

   
P8    9

 

10

begin deleteSECTION 1.end delete
11begin insertSEC. 2.end insert  

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

12

798.58.5.  

Notwithstanding Section 798.56, nonconformance
13with the registration and titling requirements of state law, including,
14but not limited to, nonpayment or late payment of any fees, taxes,
15penalties, or interest related to the ownership of a mobilehome or
16manufactured home, shall not be a basis for eviction from a
17mobilehome park in either of the following situations:

18(a) If the nonconformance occurs prior to January 1, 2017.

19(b) An application to transfer title pursuant to Article 4
20(commencing with Section 18098) of Chapter 8 of Part 2 of
21Division 13 or subdivision (d) of Section 18116.1 of the Health
22and Safety Code is filed prior to January 1, 2019, and completed
23within one year of the filing date.

24begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 798.74 of the end insertbegin insertCivil Codeend insertbegin insert is amended to read:end insert

25

798.74.  

(a) The management may require the right of prior
26approval of a purchaser of a mobilehome that will remain in the
27park and that the selling homeowner or his or her agent give notice
28of the sale to the management before the close of thebegin delete sale.end deletebegin insert sale, end insert
29begin insertproof of registration as owner pursuant to Section 18080.1 of the
30Health and Safety Code, and a copy of the transfer clearance
31certificate issued by the Department of Housing and Community
32Development pursuant to Section 18116.1 of the Health and Safety
33Code.end insert
Approval cannot be withheld if the purchaser has the
34financial ability to pay the rent and charges of the park unless the
35management reasonably determines that, based on the purchaser’s
36prior tenancies, he or she will not comply with the rules and
37regulations of the park. In determining whether the purchaser has
38the financial ability to pay the rent and charges of the park, the
39management shall not require the purchaser to submit copies of
40any personal income tax returns in order to obtain approval for
P9    1residency in the park. However, management may require the
2purchaser to document the amount and source of his or her gross
3monthly income or means of financial support.

4Upon request of any prospective homeowner who proposes to
5purchase a mobilehome that will remain in the park, management
6shall inform that person of the information management will
7require in order to determine if the person will be acceptable as a
8homeowner in the park.

9Within 15 business days of receiving all of the information
10requested from the prospective homeowner, the management shall
11notify the seller and the prospective homeowner, in writing, of
12either acceptance or rejection of the application, and the reason if
13rejected. During this 15-day period the prospective homeowner
14shall comply with the management’s request, if any, for a personal
15interview. If the approval of a prospective homeowner is withheld
16for any reason other than those stated in this article, the
17management or owner may be held liable for all damages
18proximately resulting therefrom.

19(b) If the management collects a fee or charge from a prospective
20purchaser of a mobilehome in order to obtain a financial report or
21credit rating, the full amount of the fee or charge shall be credited
22toward payment of the first month’s rent for that mobilehome
23purchaser. If, for whatever reason, the prospective purchaser is
24rejected by the management, the management shall refund to the
25prospective purchaser the full amount of that fee or charge within
2630 days from the date of rejection. If the prospective purchaser is
27approved by the management, but, for whatever reason, the
28prospective purchaser elects not to purchase the mobilehome, the
29management may retain the fee, or a portion thereof, to defray its
30administrative costs under this section.

begin insert

31(c) If management approves for residency a prospective
32homeowner who is purchasing a home that will remain in the park
33and enters into a lease agreement with the prospective homeowner,
34management shall, within 20 days, notify the Department of
35Housing and Community Development of the sale of the home by
36forwarding to the department the name of the transferor, the name
37of the transferee and the address or location of the home, pursuant
38to Section 18100.5 of the Health and Safety code.

end insert
P10   1

begin deleteSEC. 2.end delete
2begin insertSEC. 4.end insert  

Section 18092.7 of the Health and Safety Code is
3amended to read:

4

18092.7.  

(a)  Except as provided in subdivision (b) and Section
518116.1, the department shall withhold the registration or transfer
6of registration of any manufactured home, mobilehome, or floating
7home which is subject to local property taxation, other than a new
8manufactured home, mobilehome, or floating home for which
9application is being made for an original registration, until the
10applicant presents a tax clearance certificate or a conditional tax
11clearance certificate issued pursuant to Section 2189.8 or 5832 of
12the Revenue and Taxation Code by the tax collector of the county
13where the manufactured home, mobilehome, or floating home is
14located. Any conditional tax clearance certificate presented shall
15 indicate that the tax liability has been satisfied pursuant to
16paragraph (3) of subdivision (m) of Section 18035.

17(b)  In lieu of the tax clearance certificate or conditional tax
18clearance certificate required by subdivision (a), the department
19may accept a certification signed by the escrow officer under
20penalty of perjury that the tax collector of the county where the
21manufactured home is located has failed to respond to the written
22demand for a conditional tax clearance certificate as prescribed
23by subdivision (m) of Section 18035.

24begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 18100.5 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
25amended to read:end insert

26

18100.5.  

(a) begin insertWhenever any title or interest in a manufactured
27home, mobilehome, commercial coach, or truck camper, or floating
28home is transferred to another person or entity, in addition to any
29notice provided pursuant to this section, the transferor shall, within
3020 days, notify the department of the interest transferred and the
31party to whom it was transferred. The department may prescribe
32a form to be used for this purpose.end insert

begin insert

33(b) Whenever any title or interest of a registered owner of a
34manufactured home or mobilehome located within a mobilehome
35park is transferred to another person or entity, the owner of the
36mobilehome park shall, within 20 days, notify the department of
37the name of the transferor, the name of the transferee and the
38address or location of the home. The department may prescribe a
39form to be used for this purpose.

end insert

P11   1begin insert(c)end insert If the title or interest of a registered owner, legal owner,
2junior lienholder in a manufactured home, mobilehome,
3commercial coach, or truck camper, or floating home for which
4an original registration under this part has been obtained is
5transferred to another person, or, if all outstanding secured
6obligations previously held by a legal owner registered on the
7original or a subsequent registration or by a junior lienholder are
8satisfied and the person no longer has any obligation to extend
9credit, incur obligations, or otherwise give value to be secured by
10the manufactured home, mobilehome, commercial coach, truck
11camper, or floating home, or, if a security interest is taken in a
12manufactured home, mobilehome, commercial coach, truck camper,
13or floating home after the permanent title record has been
14established, the department shall be notified within 20 days and
15shall act as follows:

16(1) If the title or interest of a registered owner or legal owner
17is being transferred, the transferor and the transferee of the title or
18interest shall execute in the manner prescribed by the department
19the certificate of title for the manufactured home, mobilehome,
20commercial coach, truck camper, or floating home. If the transfer
21is made by a registered owner and the transferee is to assume the
22underlying indebtedness secured by the manufactured home,
23mobilehome, commercial coach, truck camper, or floating home
24and owed to a legal owner, the legal owner shall state on the
25certificate of title that legal title and interest are to be retained. The
26certificate of title along with all other supporting documents shall
27be fowarded to the department with appropriate fees. The
28department shall appropriately amend the permanent title record
29of the manufactured home, mobilehome, commercial coach, truck
30camper, or floating home, forward a new certificate of title
31reflecting the change to the permanent title record to the legal
32owner by first-class mail, and forward an amended registration
33card reflecting the change to the permanent title record to the
34registered owner with copies to all secured parties shown on the
35permanent title record. If there is no legal owner, the new certificate
36of title and amended registration card shall be forwarded to the
37registered owner.

38(2) If the interest of a junior lienholder is being transferred, the
39transferor and the transferee shall execute in a manner prescribed
40by the department the registration card, and the card so executed
P12   1shall be forwarded to the department with appropriate fees. The
2department shall appropriately amend the permanent title record
3and forward an amended registration card reflecting the change to
4the permanent title record to the registered owner with copies to
5all secured parties shown on the permanent title record.

6(3) If a creditor acquires a security interest in a manufactured
7home, mobilehome, commercial coach, truck camper, or floating
8home after the permanent title record has been established, the
9department shall amend the permanent title record to reflect the
10interest as that of a legal owner or as that of a junior lienholder,
11as appropriate. If the permanent title record already reflects the
12interest of one or more junior lienholders, the creditor then
13perfecting its interest pursuant to this section shall be designated
14as the most junior lienholder.

15(4) If a legal owner no longer holds an outstanding obligation
16or a commitment to make advances, incur obligations, or otherwise
17give value to be secured by the manufactured home, mobilehome,
18commercial coach, or truck camper, or floating home, the legal
19owner shall indicate its release of lien by appropriately signing the
20certificate of title for the manufactured home, mobilehome,
21commercial coach, truck camper, or floating home and forward
22the certificate of title to the department with appropriate fees. The
23department shall appropriately amend the permanent title record
24for the manufactured home, mobilehome, commercial coach, truck
25camper, or floating home, deliver a new certificate of title reflecting
26the change to the permanent title record to the new legal owner,
27if any, by first-class mail, and forward an amended registration
28card reflecting the change to the permanent title record to the
29 registered owner with copies to all secured parties shown on the
30registration card. For purposes of this paragraph, the following
31person shall be designated as the new legal owner:

32(A) The junior lienholder, if any.

33(B) If there is more than one junior lienholder, the junior
34lienholder whose statement of lien was designated as the most
35senior junior lienholder on the permanent title record shall be the
36legal owner.

37(5) If a junior lienholder no longer holds an outstanding
38obligation or a commitment to make advances, incur obligations,
39or otherwise give value to be secured by the manufactured home,
40mobilehome, commercial coach, truck camper, or floating home,
P13   1the junior lienholder shall forward the properly executed and
2released junior lienholder registration card to the department with
3appropriate fees. The department shall appropriately amend the
4permanent title record for the manufactured home, mobilehome,
5commercial coach, truck camper, or floating home and forward
6an amended registration card reflecting the change to the permanent
7title record to the registered owner with copies to all secured parties
8shown on the permanent title record.

begin delete

9(b)

end delete

10begin insert(d)end insert (1) Notwithstanding subdivision (d) of this section and
11subdivisions (c) and (e) of Section 18080.7, for the 120-day period
12beginning upon the receipt by the department of the notice of
13escrow and appropriate fee provided by paragraph (2) of
14subdivision (d) of Section 18035, or until the escrow is canceled
15or until the escrow closes and the resulting transfers of ownership
16interests and transfers or creation of legal owner and junior
17lienholder interests are acknowledged by the department as
18amendments to the permanent title record of the manufactured
19home, mobilehome, truck camper, or floating home, whichever is
20earlier, the department, except at its sole discretion, shall impose
21a moratorium on all of the following:

22(A) On any other amendments to the permanent title record of
23the manufactured home, mobilehome, truck camper, or floating
24home for the purpose of transferring any ownership interest or
25transferring or creating any security interest in the manufactured
26home or mobilehome.

27(B) On issuing any duplicate, substitute, or new certificate of
28title, registration card, or copy of a registration card regarding the
29manufactured home, mobilehome, or floating home.

30(C) On subsequent notices of escrow openings.

31(2) The department shall, upon receipt of the notice of escrow
32and the appropriate fee, forward to the escrow agent an
33acknowledgment of receipt and a true and correct copy of the
34permanent title record as of the commencement of the period of
35moratorium.

begin delete

36(c)

end delete

37begin insert(e)end insert If a secured party fails to comply with the provisions of
38subdivision (a) relating to releases of lien and the secured party
39thereafter receives a written demand from the registered owner
40that the secured party release its lien, the secured party shall be
P14   1liable to the registered owner for all actual damages suffered by
2the registered owner by reason of the failure to release the lien
3unless the secured party, within 20 days of receipt of the demand,
4complies with the requirements of subdivision (a), except where
5the secured party has reasonable cause for noncompliance.

begin delete

6(d)

end delete

7begin insert(f)end insert Whenever the title or interest of the registered owner or legal
8owner in or to a manufactured home, mobilehome, commercial
9coach, truck camper, or floating home registered under this part
10passes to another in a manner other than by voluntary transfer, the
11new registered owner or legal owner may obtain a transfer of
12registration upon application therefor and upon presentation of the
13last certificate of title, if available, and current registration card,
14if available, issued for the manufactured home, mobilehome,
15commercial coach, truck camper, or floating home and any
16instruments or documents of authority or certified copies thereof
17as may be required by the department, or required by law, to
18evidence or effect the transfer of title or interest in that case. The
19department, when satisfied of the genuineness and regularity of
20the transfer, shall amend the permanent title record of the
21manufactured home, mobilehome, commercial coach, truck camper,
22or floating home, issue a new current registration card and
23certificate of title, and forward copies of the current registration
24card to all junior lienholders.

begin delete

25(e)

end delete

26begin insert(g)end insert The department shall not transfer registration until the
27applicant complies with the requirements of Section 18092.7.

28

begin deleteSEC. 3.end delete
29begin insertSEC. 6.end insert  

Section 18116.1 of the Health and Safety Code is
30amended to read:

31

18116.1.  

(a) Nonpayment of the fees and penalties provided
32for in Sections 18114, 18114.1, and 18115, and in subdivisions
33(a), (b), (c), and (d) of Section 18116 that are due on a mobilehome,
34manufactured home, commercial coach, truck camper, or floating
35home shall constitute a lien in favor of the State of California in
36the amount owing.

37(b) Notwithstanding any other provision of law, the lien provided
38for in subdivision (a) shall include all fees and penalties due and
39unpaid beginning with the fees for original registration that became
40delinquent for 120 days or more and continue to accrue to include
P15   1all fees and penalties that subsequently become due and remain
2unpaid.

3(c) Until the amount of a lien provided for in subdivision (a) or
4(b) is paid to the department, the department shall not do either of
5the following:

6(1) Amend the permanent title record of the manufactured home,
7mobilehome, commercial coach, truck camper, or floating home
8which is the subject of the lien for the purpose of transferring any
9ownership interest or transferring or creating any security interest
10in the manufactured home, mobilehome, commercial coach, truck
11camper, or floating home.

12(2) Issue any duplicate, substitute, or new certificate of title,
13registration card, or copy of a registration card with respect to the
14manufactured home, mobilehome, commercial coach, truck camper,
15or floating home which is the subject of the lien.

16(d) (1) When application is made to the department for
17registration or transfer of registration of a manufactured home or
18mobilehome, and the applicant is not currently the registered
19owner, with respect to all charges assessed by the department prior
20to the date the title or interest in the manufactured home or
21mobilehome was transferred to the applicant, the department shall
22release any lien imposed pursuant to this chapter and waive all
23outstanding charges assessed by the department, if all of the
24following requirements are met:

25(A) The applicant provides documentation demonstrating to the
26satisfaction of the department ownership and the date of acquisition
27of ownership interest pursuant to Section 18100.5 or 18102.5.

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

29(C) The applicant pays any charges assessed by the department
30during the period between the time the applicant took ownership
31interest or December 31, 2014, whichever is later, and the time
32the applicant applies for relief pursuant to this subdivision.

33(D) The applicant has not previously filed for relief pursuant to
34this subdivision.

begin insert

35(E) Any lien pursuant to Section 16182 of the Government Code
36has been satisfied.

end insert

37(2) If the applicant meets the requirements of paragraph (1) and
38the other requirements of this chapter not related to nonpayment
39or late payment of the department’s charges, fees, and penalties
40related to registration and titling, the department shall waive the
P16   1outstanding charges, fees, or penalties identified in paragraph (1),
2amend the title record, and issue a duplicate, substitute, or new
3certificate of title, registration card, or copy of a registration card
4with respect to the manufactured home or mobilehome, in
5conformance with this chapter.

6(3) For purposes of any amounts owing pursuant to this
7subdivision, the department may establish a long term payment
8program of up to five years. The department may provide that any
9amounts owing under the payment program shall constitute a lien
10in favor of the State of California in the amount owing and shall
11be paid in full if the manufactured home or mobilehome is
12subsequently transferred. Failure to make the payments required
13by the plan is a violation of this chapter for which the department
14may suspend, revoke, or cancel the certificate of title pursuant to
15Section 18122.

16(4) (A) If the manufactured home or mobilehome for which an
17application has been submitted and approved pursuant to this
18subdivision and the other requirements of this chapter not related
19to nonpayment or late payment of the department’s charges, fees,
20and penalties related to registration and titling, is subject to local
21property taxation, the department shall issue a conditional transfer
22of title.

23(B) Upon presentation of a completed tax liability certificate as
24 provided in subdivision (f) of Section 5832 of the Revenue and
25Taxation Code, if the applicant meets all of the requirements of
26this section and the other requirements of this chapter not related
27to nonpayment or late payment of the department’s charges, fees,
28and penalties related to registration and titling, and the requirements
29of paragraph (2) are met, the department shall amend the title
30record and issue a duplicate, substitute, or new certificate of title.

begin insert

31(e) Prior to transferring any ownership interest or transferring
32or creating any security interest in the manufactured home or
33mobilehome, a registered owner shall apply to the department for
34a transfer clearance certificate indicating the department may
35amend the title record and transfer the registration of the
36mobilehome or manufactured home. The department shall issue
37the transfer clearance certificate if it determines that it is not
38prohibited by law from amending the title record and transferring
39the registration of the mobilehome or manufactured home. This
40certificate shall expire 90 days from the date of issuance.

end insert
begin insert

P17   1(f) Upon notification of any transfer of any ownership interest
2or transferring or creating any security interest in a manufactured
3home or mobilehome, the department shall notify the transferee
4of the obligation to title and register the home pursuant to this
5chapter and the procedure for titling and registration. If, after 90
6days, the transferee has not complied with the titling and
7registration requirements of this chapter, the department shall
8notify the transferee and, if the mobilehome or manufactured home
9is located in a mobilehome park, the park management of the
10transferee’s failure to comply.

end insert
11

begin deleteSEC. 4.end delete
12begin insertSEC. 7.end insert  

Section 18550 of the Health and Safety Code is
13amended to read:

14

18550.  

It is unlawful for any person to use or cause, or permit
15to be used for occupancy, any of the following manufactured homes
16or mobilehomes wherever the manufactured homes or mobilehomes
17are located, or recreational vehicles located in mobilehome parks:

18(a) Any manufactured home, mobilehome, or recreational
19vehicle supplied with fuel, gas, water, electricity, or sewage
20connections, unless the connections and installations conform to
21regulations of the department.

22(b) Any manufactured home, mobilehome, or recreational
23vehicle that is permanently attached with underpinning or
24foundation to the ground, except for a manufactured home or
25mobilehome bearing a department insignia or federal label, that is
26installed in accordance with this part.

27(c) (1) Any manufactured home or mobilehome that does not
28conform to the registration requirements of the department, except
29as otherwise provided in this subdivision.

30(2) Nonconformance is not a basis for eviction from a
31mobilehome park of a person claiming to be an owner of a
32manufactured home or mobilehome in either of the following
33situations:

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

35(B) If the person files an application to transfer title pursuant
36to Article 4 (commencing with Section 18098) of Chapter 8 of
37Part 2 of Division 13 or subdivision (d) of Section 18116.1 prior
38to January 1, 2019, and completes the application within one year
39of the filing date.

P18   1(3) It is not a violation of this section for a park owner to allow
2a person not in compliance with the registration requirements of
3the department to occupy a manufactured home or mobilehome if
4the person meets the requirements of paragraph (2).

5(d) Any manufactured home, mobilehome, or recreational
6vehicle in an unsafe or unsanitary condition.

7(e) Any manufactured home, mobilehome, or recreational
8vehicle that is structurally unsound and does not protect its
9occupants against the elements.

10

begin deleteSEC. 5.end delete
11begin insertSEC. 8.end insert  

Section 5832 of the Revenue and Taxation Code is
12amended to read:

13

5832.  

(a) (1) Upon application, the county tax collector shall
14issue a tax clearance certificate or a conditional tax clearance
15certificate.

16(2) Any tax clearance certificate issued shall be used to permit
17registration of used manufactured homes and for any other purposes
18that may be prescribed by the Controller. The certificate may
19indicate that the county tax collector finds that no local property
20tax is due or is likely to become due, or that any applicable local
21property taxes have been paid or are to be paid in a manner not
22requiring the withholding of registration or the transfer of
23registration.

24(3) Any conditional tax clearance certificate issued shall indicate
25that the county tax collector finds that a tax liability exists, the
26amount due, and the final date that amount may be paid before a
27further tax liability is incurred. The certificate shall be in any form
28that the Controller may prescribe, and shall be executed, issued,
29and accepted for clearance of registration or permit issuance on
30the conditions which the Controller may prescribe.

31(b) Within five working days of receipt of the written demand
32for a conditional tax clearance certificate or tax clearance
33certificate, the county tax collector shall forward the conditional
34tax clearance certificate or tax clearance certificate, showing no
35tax liability exists, to the requesting escrow officer. In the event
36the final due date of the tax clearance certificate or conditional tax
37clearance certificate expires within 30 days of the date of its
38issuance, an additional conditional tax clearance certificate or tax
39 clearance certificate shall be completed, which has a final due date
40of at least 30 days beyond the date of issuance. The tax collector
P19   1shall not charge a fee for the issuance of a certificate unless a
2previously issued tax clearance certificate or conditional tax
3clearance certificate expires prior to the date upon which title
4transfers. The fee for the issuance of a subsequent certificate with
5respect to that manufactured home shall be an amount equal to the
6actual costs of preparing and processing that certificate.

7(c) If the tax collector fails to comply with the demand within
830 days from the date the demand is mailed, the escrow officer
9may close the escrow in accordance with the provisions of
10subdivision (m) of Section 18035 of the Health and Safety Code.

11(d) Notwithstanding any provisions of law requiring the tax
12collector to issue a tax clearance certificate or conditional tax
13clearance certificate within a specified period of time, when an
14escrow information demand is made pursuant to Section 18035 of
15the Health and Safety Code for a manufactured home that has not
16been enrolled in the county, the tax collector shall be afforded the
17number of working days necessary for the assessor to determine
18the value of the manufactured home and for the auditor to extend
19tax liability.

20(e) The issuance, alteration, forgery, or use of any tax clearance
21certificate or conditional certificate in a manner contrary to the
22requirements of the Controller constitutes a misdemeanor.

23(f) (1) Prior to January 1, 2019, a person with a conditional
24transfer of title as described in subparagraph (A) of paragraph (4)
25of subdivision (d) of Section 18116.1 of the Health and Safety
26Code may apply to the tax collector to issue either a tax liability
27or tax clearance certificate. The county tax collector shall issue a
28tax liability certificate if the person pays the taxes reasonably owed
29from the date of sale as shown on the conditional transfer of title,
30without penalties or interest, and not to exceed the amounts
31attributable one year prior to January 1, 2016.

32(2) Upon issuance of a tax clearance or liability certificate, the
33applicant shall be listed as the owner of record for all local property
34 tax purposes and the home shall not be subject to lien or seizure
35based on any taxes, penalties, or interest as noted on the certificate
36issued pursuant to paragraph (1). The tax collector shall notify the
37assessor and other county agencies of the change.

38(3) This subdivision does not relieve any owner other than the
39applicant from tax liability, including penalties and interest, arising
40from nonpayment prior to the date of sale, or prohibit a county tax
P20   1collector from collecting delinquent taxes, penalties, or interest
2due prior to the date of sale, from any owner other than the
3applicant.

4

begin deleteSEC. 6.end delete
5begin insertSEC. 9.end insert  

The Legislature finds and declares that the abatement
6of taxes, penalties, and interest incurred prior to the date of sale
7of a mobilehome or manufactured home to an applicant, as
8described in this act, serves a public purpose and does not constitute
9a gift of public funds within the meaning of Section 6 of Article
10XVI of the California Constitution.

11

begin deleteSEC. 7.end delete
12begin insertSEC. 10.end insert  

If the Commission on State Mandates determines that
13this act contains costs mandated by the state, reimbursement to
14local agencies and school districts for those costs shall be made
15pursuant to Part 7 (commencing with Section 17500) of Division
164 of Title 2 of the Government Code.

17

begin deleteSEC. 8.end delete
18begin insertSEC. 11.end insert  

Notwithstanding Section 2229 of the Revenue and
19Taxation Code, no appropriation is made by this act and the state
20shall not reimburse any local agency for any property tax revenues
21lost by it pursuant to this act.



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