SB 188, as introduced, Hancock. Municipal utility district: utility charges: delinquencies.
(1) The existing Municipal Utility District Act authorizes the formation of a municipal utility district. The act authorizes a district to acquire, construct, own, operate, control, or use works for supplying the inhabitants of the district and public agencies with light, water, power, heat, transportation, telephone service, or other means of communication, or means for the collection, treatment, or disposition of garbage, sewage, or refuse matter. The act authorizes a municipal utility district, by resolution or ordinance, to require the owner of record of privately owned real property within the district to pay the fees, tolls, rates, rentals, or other charges for certain utility services rendered to a lessee, tenant, or subtenant, and provides that those charges that have become delinquent, together with interest and penalties, are a lien on the property when a certificate is filed by the district in the office of the county recorder and that the lien has the force, effect, and priority of a judgment lien.
The act, in addition to the above-described methods, establishes procedures, until January 1, 2016, for a municipal utility district to collect delinquent fees, tolls, rates, rentals, or other charges, together with interest and penalties thereon, for services rendered to a lessee, tenant, or subtenant, through the tax roll, in the same manner as property taxes. The act, until January 1, 2016, authorizes a municipal utility district to collect delinquent fees, tolls, rates, rentals, or other charges, together with interest and penalties thereon, for services rendered to a lessee, tenant, or subtenant, by recording in the office of the county recorder of the county in which the affected parcel is located, a certificate declaring the amount of the delinquent charges, together with interest and penalties thereon, which would then constitute a lien against the affected real property of the delinquent property owner in that county and have the force, effect, and priority of a judgment lien. The act, until January 1, 2016, requires a municipal utility district that exercises these collection measures to reimburse the county for the reasonable expenses incurred by the county.
This bill would extend the operation of these provisions indefinitely. By requiring county auditors and recorders to undertake certain actions in response to the exercise of collection measures by a municipal utility district, the bill would impose a state-mandated local program.
(2) The act prohibits a municipal utility district from collecting delinquent fees or charges using the above-described collection measures for the furnishing of electrical services and, beginning January 1, 2016, for the furnishing of water or sewer service to residential property.
This bill would permanently authorize a municipal utility district to collect delinquent fees or charges using the above-described collection measures for the furnishing of water or sewer service to residential property.
(3) The act requires any district that places a lien on a property for water or sewer service on or before December 31, 2014, pursuant to the above-described collection measures, to submit a report containing certain information to the Assembly and Senate Committees on Judiciary and to the Assembly and Senate Committees on Local Government on or before January 1, 2015.
This bill would delete this provision.
(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 no reimbursement is required by this act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 12811.1 of the Public Utilities Code, as
2amended by Section 1 of Chapter 485 of the Statutes of 2010, is
3amended to read:
(a) Except when prohibited by Section 12822.6, a
5district may, by resolution or ordinance, require the owner of record
6of real property within the district to pay the fees, tolls, rates,
7rentals, or other charges for services rendered to a lessee, tenant,
8or subtenant, and those fees, tolls, rates, rentals, and other charges
9that have become delinquent, together with interest and penalties
10thereon, are a lien on the property when a certificate is filed in the
11office of the county recorder pursuant to subdivision (b) and the
12lien has the force, effect, and priority of a judgment lien. No lien
13may be created under this section on any publicly owned property.
14(b) A lien under this section attaches when the district files for
15recordation in the office of the county
recorder a certificate
16specifying the amount of the delinquent fees, tolls, rates, rentals,
17or other charges together with interest and penalties thereon; the
18name of the owner of record of the property to which services were
19rendered by the district; and the legal description of the property.
20Within 30 days of receipt of payment of all amounts due, including
21recordation fees paid by the district, the district shall file for
22recordation a release of the lien.
23(c) A district may, by resolution or ordinance, provide that any
24delinquent fees, tolls, rates, rentals, or other charges, together with
25interest and penalties thereon, including any delinquent fees, tolls,
26rates, rentals, or other charges for services rendered to a lessee,
27tenant, or subtenant, may be collected on the tax roll in the same
28manner as property taxes. Before any entity may collect any
29delinquent fees, tolls, rates, rentals, or other charges, together with
30interest and
penalties thereon, including any delinquent fees, tolls,
31rates, rentals, or other charges for services rendered to a lessee,
32tenant, or subtenant on the tax roll, the district shall prepare a
33report, provide notice, conduct a public hearing, and file a
34certificate in the office of the county recorder, as follows:
35(1) The general manager shall prepare and file with the district
36board of directors a report that describes each affected parcel of
37real property and the amount of the delinquent fees, tolls, rates,
38rentals, or other charges, together with interest and penalties
P4 1thereon, including any delinquent fees, tolls, rates, rentals, or other
2charges for services rendered to a lessee, tenant, or subtenant for
3each affected parcel for the year. The general manager shall give
4notice of the filing of the report and of the time, date, and place
5for a public hearing by publishing the notice pursuant to Section
66066 of the Government Code in a
newspaper of general
7circulation, and by mailing the notice to the owner of each affected
8parcel at least 14 days prior to the date of the hearing.
9(2) At the public hearing, the board of directors shall hear and
10consider any objections or protests to the report. At the conclusion
11of the public hearing, the board of directors may adopt or revise
12the delinquent fees, tolls, rates, rentals, or other charges, together
13with interest and penalties thereon, including any delinquent fees,
14tolls, rates, rentals, or other charges for services rendered to a
15lessee, tenant, or subtenant. The board of directors shall make its
16determination on each affected parcel and its determinations shall
17be final.
18(3) On or before August 10 of each year following these
19determinations, the general manager shall file with the county
20auditor a copy of the final report adopted by the board of directors.
21The
county auditor shall enter the amount of the delinquent fees,
22tolls, rates, rentals, or other charges, together with interest and
23penalties thereon, including any delinquent fees, tolls, rates, rentals,
24or other charges for services rendered to a lessee, tenant, or
25subtenant, against each of the affected parcels of real property as
26they appear on the current assessment roll. The county tax collector
27shall include the amount of the delinquent fees, tolls, rates, rentals,
28or charges, together with interest and penalties thereon, including
29any delinquent fees, tolls, rates, rentals, or other charges for
30services rendered to a lessee, tenant, or subtenant, on the tax bills
31for each affected parcel of real property and collect the delinquent
32fees, tolls, rates, rentals, or charges, together with interest and
33penalties thereon, including any delinquent fees, tolls, rates, rentals,
34or other charges for services rendered to a lessee, tenant, or
35subtenant, in the same manner as property taxes.
36(4) The district may recover any delinquent fees, tolls, rates,
37rentals, or other charges, together with interest and penalties
38thereon, including any delinquent fees, tolls, rates, rentals, or other
39charges for services rendered to a lessee, tenant, or subtenant, by
40recording in the office of the county recorder of the county in
P5 1which the affected parcel is located, a certificate declaring the
2amount of the delinquent fees, tolls, rates, rentals, or charges,
3together with interest and penalties thereon, including any
4delinquent fees, tolls, rates, rentals, or other charges for services
5rendered to a lessee, tenant, or subtenant, due, and the name and
6last known address of the person liable therefore. From the time
7of recordation of the certificate, the amount of the delinquent fees,
8tolls, rates, rentals, or charges, together with interest and penalties
9thereon, including any delinquent fees, tolls, rates, rentals, or other
10charges for services
rendered to a lessee, tenant, or subtenant,
11constitutes a lien against the affected real property of the delinquent
12property owner in that county. This lien shall have the force, effect,
13and priority of a judgment lien. Within 30 days of receipt of
14payment of all amounts due, including recordation fees paid by
15the district, the district shall file for recordation a release of the
16lien.
17(5) The district shall not recover on the tax roll any delinquent
18fees, tolls, rates, rentals, or other charges for services for
19commercial use to a commercial tenant under an account
20established by the commercial tenant, from any subsequent tenant
21or the property owner, due to nonpayment of charges by a previous
22commercial tenant. For this purpose, the term “subsequent
23commercial tenant” shall not include an entity or adult person that
24was located at the same address during the period the charges or
25penalties accrued. This paragraph does not apply to
master-metered
26accounts.
27(d) Notwithstanding Sections 6103 and 27383 of the
28Government Code, in filing any instrument, paper, or notice
29pursuant to this section, the district shall pay all applicable
30recording fees prescribed by law.
31(e) A district shall reimburse the county for the reasonable
32expenses incurred by the county pursuant to this section.
33(f) Any district that places a lien on a property for water
or sewer
34service pursuant to this section on or before December 31, 2014,
35shall submit to the Assembly and Senate Committees on Judiciary
36and to the Assembly and Senate Committees on Local Government,
37on or before January 1, 2015, a report containing the following
38information:
39(1) The total number of liens created under this section for water
40or sewer service and the total dollar amount of those liens.
P6 1(2) The overall effectiveness of the liens and any problems
2associated with the use of those liens.
3(g)
end delete
4begin insert(f)end insert The remedies in this section are cumulative and in addition
5to any other remedy provided by law. The district may pursue
6remedies alternatively or consecutively.
7(h)
end delete
8begin insert(g)end insert This section does not apply to delinquent fees or charges
9for the furnishing of electrical service.
10(i) This section shall remain in effect only until January 1, 2016,
11and as of that date is repealed, unless a later enacted statute, that
12is enacted before January 1, 2016, deletes or extends that date.
Section 12811.1 of the Public Utilities Code, as added
14by Section 2 of Chapter 485 of the Statutes of 2010, is repealed.
(a) A district, by resolution or ordinance, may require
16the owner of record of real property within the district to pay the
17fees, tolls, rates, rentals, or other charges for services rendered to
18a lessee, tenant, or subtenant, and those fees, tolls, rates, rentals,
19and other charges that have become delinquent, together with
20interest and penalties thereon, are a lien on the property when a
21certificate is filed in the office of the county recorder pursuant to
22subdivision (b) and the lien has the force, effect, and priority of a
23judgment lien. A lien shall not be created under this section on
24any publicly owned property.
25(b) A lien under this section attaches when the district files for
26recordation in the office of the county recorder a certificate
27specifying the amount of the delinquent fees, tolls, rates, rentals,
28or other charges together with interest and penalties thereon; the
29name
of the owner of record of the property to which services were
30rendered by the district; and the legal description of the property.
31Within 30 days of receipt of payment of all amounts due, including
32recordation fees paid by the district, the district shall file for
33recordation a release of the lien.
34(c) Notwithstanding Sections 6103 and 27383 of the Government
35Code, in filing any instrument, paper, or notice pursuant to this
36section, the district shall pay all applicable recording fees
37prescribed by law.
38(d) The remedies in this section are in addition to any other
39remedy provided by law.
P7 1(e) This section does not apply to delinquent fees or charges for
2the furnishing of water or sewer service to residential property or
3electrical service.
4(f) This section shall become operative on January 1, 2016.
No reimbursement is required by this act pursuant to
6Section 6 of Article XIII B of the California Constitution because
7a local agency or school district has the authority to levy service
8charges, fees, or assessments sufficient to pay for the program or
9level of service mandated by this act, within the meaning of Section
1017556 of the Government Code.
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