BILL NUMBER: SB 537	AMENDED
	BILL TEXT

	AMENDED IN SENATE   MAY 16, 1995

INTRODUCED BY  Senator Hughes

                        FEBRUARY 21, 1995

   An act to add Section 27388 to the Government Code, relating to
recordation fees  , and making an appropriation therefor
 .



	LEGISLATIVE COUNSEL'S DIGEST


   SB 537, as amended, Hughes.  Recordation fees.
   Existing law requires the county recorder, upon payment of proper
fees and taxes, to accept for recordation any instrument, paper, or
notice that is authorized or required by law to be recorded.
   This bill would provide that in addition to other recording fees,
upon the adoption of a resolution by the county board of supervisors,
a fee of $1 shall be paid at the time of recording of every
instrument, paper, or notice, as specified.  The bill would require
 that  the fees collected  to be paid to the
Controller, and would specify that the fees are continuously
appropriated to   be placed in the real estate fraud
prosecution trust fund to be distributed by the county auditor or
director of finance, as determined by a real estate fraud prosecution
fund committee, to district attorneys and local law enforcement
agencies for the purpose of determining, investigating, and
prosecuting real estate fraud crimes.
   Vote:   2/3   majority  .
Appropriation:   yes   no  .  Fiscal
committee:   yes   no  .  State-mandated
local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 27388 is added to the Government Code, to read:

   27388.  (a) In addition to any other recording fees specified in
this code, upon the adoption of a resolution by the county board of
supervisors, a fee of one dollar ($1) shall be paid at the time of
recording of every instrument, paper, or notice required or permitted
by law to be recorded within that county, except those expressly
exempted from payment of recording fees.  The fees, after deduction
of any incidental administrative costs incurred by the county in
carrying out this section, shall be paid quarterly to the 
Controller   county auditor or director of finance, to
be placed in a real estate fraud prosecution trust fund  .

   (b) Notwithstanding Section 13340 of the Government Code, the
money paid to the Controller is continuously appropriated, without
regard to fiscal years, for the administrative costs of the
Controller, and for disbursement by the Controller to each county
which has adopted a resolution pursuant to subdivision (a), based
upon the number of documents recorded for an address within that
county.
   (c) Money allocated to a county shall be expended to 

   (b) Money placed in the real estate fraud prosecution trust fund
shall be expended to  fund programs to enhance the capacity of
local police and prosecutors to deter, investigate, and prosecute
real estate fraud crimes. After incidental expenses, 60 percent of
those funds shall be distributed to district attorneys  and
40 percent of those funds to local law enforcement agencies 
 , and 40 percent of those funds shall be distributed to local
law enforcement agencies within the county in accordance with
subdivision (c).  In those counties where the investigation of real
estate fraud is done exclusively by the district attorney, after
incidental expenses, 100 percent of those funds shall be distributed
to the district attorney  .  The funds distributed shall be
expended for the exclusive purpose of deterring, investigating, and
prosecuting real estate fraud crimes.  
   (d) Any funds received by a county pursuant to this section that
are not expended to deter, investigate, or prosecute real estate
crimes within the following fiscal year shall be returned to the
Controller, to be disbursed to counties that have adopted resolutions
pursuant to this section or to the Department of Real Estate for the
exclusive purpose of deterring, investigating, or prosecuting real
estate fraud crimes.  A district attorney's  
   (c) The county auditor or director of finance shall distribute
funds in the real estate fraud prosecution trust fund to eligible law
enforcement agencies within the county pursuant to subdivision (b),
as determined by a real estate fraud prosecution trust fund committee
composed of the district attorney, the county auditor or director of
finance, and the chief officer responsible for consumer protection
within the county, each of whom may appoint representatives of their
offices to serve on the committee.  The committee shall establish
deadlines and procedures for local law enforcement agencies within
the county to apply for the use of funds and shall review
applications and make determinations as to the award of funds using
the following criteria:
   (1)  Each law enforcement agency that seeks funds shall submit an
application to the committee setting forth in detail the agency's
proposed use of the funds.
   (2)  Each law enforcement agency that submits an application for
funds to the committee shall have a unit, division, or section
devoted solely to the investigation of real estate fraud, that has
been in existence for one year prior to the application date.
   (3)  The committee's determination to award funds to a law
enforcement agency shall be based on, but not be limited to, (A) the
number of real estate fraud cases filed in the prior year; (B) the
number of real estate fraud cases investigated in the prior year; (C)
the number of victims involved in the cases filed; and (D) the total
aggregated monetary loss suffered by victims, including individuals,
associations, institutions, or corporations, as a result of the real
estate fraud cases filed.
   (4) Each law enforcement agency that, pursuant to this section,
has been awarded funds in the previous year, upon reapplication for
funds to the committee in each successive year, in addition to any
information the committee may require in paragraph (3), shall be
required to submit a detailed accounting of funds received and
expended in the prior year.  The accounting shall include (A) the
amount of funds received and expended; (B) the uses to which those
funds were put, including payment of salaries and expenses, purchase
of equipment and supplies, and other expenditures by type; (C) the
number of filed complaints, investigations, arrests, and convictions
that resulted from the expenditure of the funds; and (D) other
relevant information the committee may reasonably require.
   (d) A district attorney's  office or a local law enforcement
agency that  has undertaken investigations and prosecutions which
will continue into a subsequent program year may receive nonexpended
funds  not exceeding 25 percent to the total annual funding
 from the previous fiscal year.
   (e) No money collected pursuant to this section shall be expended
to offset a reduction in any other source of funds.