BILL ANALYSIS                                                                                                                                                                                                    Ó

          |SENATE RULES COMMITTEE            |                        SB 801|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |

                                UNFINISHED BUSINESS 

          Bill No:  SB 801
          Author:   Committee on Governance and Finance  
          Amended:  8/18/15  
          Vote:     21  

           SENATE GOVERNANCE & FIN. COMMITTEE:  6-0, 4/29/15
           AYES:  Hertzberg, Nguyen, Beall, Hernandez, Lara, Pavley
           NO VOTE RECORDED:  Moorlach

           SENATE FLOOR:  36-0, 5/18/15
           AYES:  Allen, Anderson, Bates, Beall, Block, Cannella, De León,  
            Fuller, Gaines, Galgiani, Hancock, Hernandez, Hertzberg, Hill,  
            Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire,  
            Mendoza, Mitchell, Monning, Moorlach, Morrell, Nguyen,  
            Nielsen, Pan, Roth, Runner, Stone, Vidak, Wieckowski, Wolk
           NO VOTE RECORDED:  Berryhill, Hall, Pavley

           ASSEMBLY FLOOR:  80-0, 9/1/15 - See last page for vote

           SUBJECT:   Property tax postponement

          SOURCE:    State Controller Betty Yee

          DIGEST:   This bill makes minor, technical changes to the  
          Property Tax Postponement (PTP) Program.

          Assembly Amendments change the definition of "claimant" in the  
          four PTP laws to ensure consistency, change the application  
          period, set consistent fee amounts for claimants to request PTP  
          accounting statements, delete references in PTP law to  
          mobilehomes, and make further technical changes.   



                                                                     SB 801  
                                                                    Page  2

          Existing law:

           1) Establishes the Senior Citizens and Disabled Citizens PTP  
             Law, which allows the State Controller to pay property taxes  
             to county tax collectors, on behalf of individuals over the  
             age of 62 or disabled persons making less than $39,000 in  
             income per year.  

           2) Allows postponement for homes, mobilehomes, tenant  
             stockholder/cooperatives and possessory interests by  
             establishing a separate law for each.

           3) Directs the Controller to secure repayment of the loan by  
             recording a lien against the claimant's property, which is  
             satisfied when the home is sold or refinanced.  As liens are  
             repaid out of sales proceeds, revenue flows back to the  
             Controller, who in turn uses these funds to pay property  
             taxes for new applicants.   

           4) Provides that until recently, prohibited persons from filing  
             new claims for PTP and the Controller from accepting  
             applications (SBX3 8, Ducheny, Chapter 4, Statutes of  
             2009-10, Third Extraordinary Session).  However, the  
             Legislature resuscitated the program last year by removing  
             SBX3 8's prohibition, albeit with tightened eligibility  
             criteria and a requirement for the Controller to transfer to  
             the General Fund repayments received above a $20 million  
             total (AB 2231, Gordon, Chapter 703, Statutes of 2014).  

           5) Sets the application period from September 1st to April  

           6) States that under the prior PTP program, the Controller  
             provided "certificates of eligibility" to applicants to pay  
             their property taxes.  The Controller submitted these  
             "checks" to the county.  

           7) Requires county treasurers under the prior program, to add  
             the property description to the lien for properties, owned by  
             individuals enrolled in the program, and then forward the  
             lien to the county recorder for filing.  


                                                                     SB 801  
                                                                    Page  3

           8) Sets a $30 fee for claimants requesting an accounting of PTP  
             amounts postponed and interest charged, which was updated by  
             AB 2231 from $10, but not in the tenant-cooperative law. 

           9) Contains references throughout PTP law to mobile homes.  

           10)Allows the Controller to pay delinquent taxes under the  
             Possessory Interest Holder law, but not under the other three  

           11)Provides generally that county tax collectors should refund  
             property tax overpayments directly to taxpayers; however,  
             when the Controller pays on behalf of a taxpayer who  
             successfully appeals the Controller's determination of  
             eligibility and that taxpayer has already paid, the law  
             doesn't explicitly require the refund.  

          This bill:

           1) Removes the reference to certificates in several sections.

           2) Clarifies that interest rates for past loans are calculated  
             at the Pooled Money Investment Account rate, as was the case  
             under the former program, while future loans pay the 7% rate  
             provided for in AB 2231.

           3) Replaces references from county tax collectors to the  
             Controller in sections for preparing liens.

           4) Deletes the information required as part of the lien.

           5) Revises the application period currently set as September  
             1st to April 10th to October 1st to February 10th, to ensure  
             successful claimants can be notified before the first  
             property tax installment is due.

           6) Changes the verb from "recorded" to "executed" to  
             appropriately reflect the Controller's role in the revised  

           7) Increases the fee to $30 fee for claimants requesting an  
             accounting of PTP amounts postponed and interest charged in  


                                                                     SB 801  
                                                                    Page  4

             the tenant-cooperative law, making this fee amount consistent  
             with all other PTP laws.

           8) Removes references to mobilehomes throughout PTP laws.

           9) Deletes authority for the Controller to pay delinquent taxes  
             under the Possessory Interest Holder law.  

           10)States explicitly that in the event an appeal reverses the  
             initial denial of eligibility and the Controller sends a  
             payment for taxes due in the same fiscal year, for which the  
             taxpayer has paid the taxes, the county must refund that  

           11)Corrects erroneous cross-references and section numbering,  
             and removes other obsolete provisions.  


          When AB 2231 resurrected the PTP program, it didn't change all  
          the statutes necessary for the Controller to ensure that the law  
          would be administered effectively.  SB 801 consolidates several  
          minor, technical changes to PTP program statutes to assist the  
          Controller implement the program as she prepares to again begin  
          accepting applications in September.  Senate Rule 23 requires  
          all members of the Committee to sign Committee Bills prior to  
          introduction, so SB 801 can only contain items with universal  
          agreement; should anyone object to a provision in the measure,  
          it will be removed.      
          Related Legislation
          SB 477 (Leyva, 2015) adds mobilehomes back into the PTP program  
          by amending the general PTP law.  The Assembly Appropriations  
          Committee held the bill on its suspense file.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:NoLocal:    No

          SUPPORT:   (Verified9/1/15)


                                                                     SB 801  
                                                                    Page  5

          State Controller Betty Yee (source)

          OPPOSITION:   (Verified9/1/15)

          None received
           ASSEMBLY FLOOR:  80-0, 9/01/15
           AYES: Achadjian, Alejo, 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, O'Donnell, Olsen,  
            Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez,  
            Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,  
            Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins

          Prepared by:Colin Grinnell / GOV. & F. / (916) 651-4119
          9/1/15 21:12:30

                                   ****  END  ****