BILL NUMBER: SB 537	CHAPTERED
	BILL TEXT

	CHAPTER   942
	FILED WITH SECRETARY OF STATE   OCTOBER 16, 1995
	APPROVED BY GOVERNOR   OCTOBER 15, 1995
	PASSED THE SENATE   SEPTEMBER 12, 1995
	PASSED THE ASSEMBLY   SEPTEMBER 11, 1995
	AMENDED IN ASSEMBLY   SEPTEMBER 8, 1995
	AMENDED IN ASSEMBLY   JULY 19, 1995
	AMENDED IN ASSEMBLY   JUNE 26, 1995
	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.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 537, 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 up to $2 shall be paid at the time of recording of every
real estate instrument, as defined.  The bill would require that the
fees collected be placed in the Real Estate Fraud Prosecution Trust
Fund to be distributed by the county chief administrative officer, as
determined by a Real Estate Fraud Prosecution Trust Fund Committee,
to district attorneys and local law enforcement agencies for the
purpose of determining, investigating, and prosecuting real estate
fraud crimes, as specified.


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 up to two dollars ($2) shall be paid at the
time of recording of every real estate instrument, paper, or notice
required or permitted by law to be recorded within that county ,
except those expressly exempted from payment of recording fees.
"Real estate instrument" is defined for the purpose of this section
as a deed of trust, an assignment of deed of trust, a reconveyance, a
request for notice, and a notice of default.  "Real estate
instrument" does not include any deed, instrument, or writing subject
to the imposition of a documentary transfer tax as defined in
Section 11911 of the Revenue and Taxation Code, nor any document
required to facilitate the transfer subject to the documentary
transfer tax.  The fees, after deduction of any actual and necessary
administrative costs incurred by the county in carrying out this
section, shall be paid quarterly to the county auditor or director of
finance, to be placed in the Real Estate Fraud Prosecution Trust
Fund.
   (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 deduction of the actual and necessary
administrative costs referred to in subdivision (a), 60 percent of
the funds shall be distributed to district attorneys subject to
review pursuant to subdivision (d), and 40 percent of the 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 deduction of the actual and necessary
administrative costs referred to in subdivision (a), 100 percent of
the funds shall be distributed to the district attorney, subject to
review pursuant to subdivision (d).  The funds so distributed shall
be expended for the exclusive purpose of deterring, investigating,
and prosecuting real estate fraud crimes.
   (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 chief administrative
officer, 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.  If a county lacks a chief officer
responsible for consumer protection, the county board of supervisors
may appoint an appropriate representative to serve on the committee.
  The committee shall establish and publish deadlines and written
procedures for local law enforcement agencies within the county to
apply for the use of funds and shall review applications and make
determinations by majority vote as to the award of funds using the
following criteria:
   (1)  Each law enforcement agency that seeks funds shall submit a
written application to the committee setting forth in detail the
agency's proposed use of the funds.
   (2) In order to qualify for receipt of funds, each law enforcement
agency submitting an application shall provide written evidence that
the agency either:
   (A) Has a unit, division, or section devoted to the investigation
or prosecution of real estate fraud, or both, and the unit, division,
or section has been in existence for at least one year prior to the
application date.
   (B) Has on a regular basis, during the three years immediately
preceding the application date, accepted for investigation or
prosecution, or both, and assigned to specific persons employed by
the agency, cases of suspected real estate fraud, and actively
investigated and prosecuted those cases.
   (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, and those under active investigation by
that law enforcement agency.
   (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) The county board of supervisors shall annually review the
effectiveness of the district attorney in deterring, investigating,
and prosecuting real estate fraud crimes based upon information
provided by the district attorney in an annual report submitted to
the board detailing both:
   (1) Facts, based upon, but not 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; (D) the number of convictions
obtained in the prior year; and (E) the total aggregated monetary
loss suffered by victims, including individuals, associations,
institutions, corporations, and other relevant public entities,
according to the number of cases filed, investigations, prosecutions,
and convictions obtained.
   (2) An accounting of funds received and expended in the prior
year, which 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, prosecutions, and convictions that resulted from the
expenditure of funds; and (D) other relevant information provided at
the discretion of the district attorney.
   (e) The intent of the Legislature in enacting this section is to
have an impact on real estate fraud involving the largest number of
victims.  To the extent possible, an emphasis should be placed on
fraud against individuals whose residences are in danger of, or are
in, foreclosure as defined under subdivision (b) of Section 1695.1 of
the Civil Code.  Case filing decisions continue to be in the
discretion of the prosecutor.
   (f) A district attorney's office or a local enforcement agency
that has undertaken investigations and prosecutions that will
continue into a subsequent program year may receive nonexpended funds
from the previous fiscal year subsequent to the annual submission of
information detailing the accounting of funds received and expended
in the prior year.
   (g) No money collected pursuant to this section shall be expended
to offset a reduction in any other source of funds.  Funds from the
Real Estate Fraud Prosecution Trust Fund shall be used only in
connection with criminal investigations or prosecutions involving
recorded real estate documents.