BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 661|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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CONSENT
Bill No: AB 661
Author: Mathis (R)
Amended: 6/10/15 in Senate
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 6/17/15
AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach,
Pavley
ASSEMBLY FLOOR: 75-0, 5/22/15 - See last page for vote
SUBJECT: Counties: recording: real estate instruments
SOURCE: Author
DIGEST: This bill clarifies an exemption in current law from
fees that counties can place on certain recorded real estate
documents to fund real estate fraud prevention and enforcement.
ANALYSIS:
Existing law:
1)Allows counties to impose an additional recording fee on
certain real estate documents and put the money into a county
Real Estate Fraud Prosecution Trust Fund (SB 532, Hughes,
1995).
2)Permits county officials to use money from its Real Estate
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Fraud Prosecution Trust Fund to deter, investigate, and
prosecute real estate fraud crimes, with an emphasis on fraud
against individuals whose residences are in danger of, or are
in, foreclosure.
3)Authorizes counties to impose a tax at a specified rate on
deeds and other recorded instruments transferring real
property.
4)Defines "real estate instruments," for purposes of documentary
transfer taxes (DTT), to include: deeds of trust, assignments
of rents, covenants, conditions, and restrictions, easements,
and mechanics liens, among other documents.
5)Exempts from DTT common recorded instruments that do not
actually convey an interest real property on their own, such
as gifts, name changes, and instruments establishing the
separate property of a spouse.
This bill:
1)Deletes language stating that, for the purposes of fees that
counties can place on certain recorded real estate instruments
to fund real estate fraud prevention and enforcement, "real
estate instrument" does not include any deed, instrument, or
writing recorded "in connection with" a transfer subject to
the imposition of a documentary transfer tax, as specified.
2)Provides that the real estate fraud prevention and enforcement
fees permitted under current law must not apply to any real
estate instrument, paper, or notice accompanied by a
declaration stating that the transfer is:
a) Subject to a documentary transfer tax;
b) Recorded concurrently with a transfer subject to a
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documentary transfer tax; or
c) Presented for recording within the same business day as,
and is related to the recording of, a transfer subject to a
documentary transfer tax.
Comments
Purpose of the bill. State law allows counties to impose an
additional $10 recording fee on certain real estate documents to
fund county efforts to deter, investigate, and prosecute real
estate fraud. However, because the state law is ambiguous with
respect to what types of documents are exempted from this fee,
some citizens are paying the fee when not legally required to do
so; others are erroneously claiming their real estate documents
are exempt. Incorrect fees can result not only in delays, but
can also have financial implications for potential homeowners.
By clarifying which documents are exempt from the fee and which
are not, AB 661 facilitates accurate calculation of recording
fees in advance of home purchases and refinances, since all fees
must be paid at the time a document is submitted for recording.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:NoLocal: No
SUPPORT: (Verified6/18/15)
Alameda County District Attorney
Alpine County Assessor/Recorder
Calaveras County Clerk-Recorder
California District Attorneys Association
California Escrow Association
California Land Title Association
California State Association of Counties
Contra Costa County Clerk-Recorder and Registrar of Voters
County Recorders' Association of California
Inyo County Clerk and Recorder
Peter Aldana, Riverside County Assessor-County Clerk-Recorder
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Rural County Representatives of California
San Bernardino County Assessor-Recorder-County Clerk
San Francisco Office of the Assessor-Recorder
Sonoma County Clerk-Recorder-Assessor
OPPOSITION: (Verified6/18/15)
None received
ASSEMBLY FLOOR: 75-0, 5/22/15
AYES: Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla,
Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau,
Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,
Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina
Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,
Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,
Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,
Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,
Melendez, Mullin, Nazarian, Obernolte, Patterson, Perea,
Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,
Steinorth, Mark Stone, Thurmond, Ting, Wagner, Wilk, Williams,
Wood, Atkins
NO VOTE RECORDED: Alejo, O'Donnell, Olsen, Waldron, Weber
Prepared by:Toren Lewis / GOV. & F. / (916) 651-4119
6/18/15 15:09:53
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