BILL NUMBER: AB 1718	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 28, 2010
	AMENDED IN ASSEMBLY  APRIL 27, 2010
	AMENDED IN ASSEMBLY  MARCH 11, 2010

INTRODUCED BY   Assembly Member  Monning  
Blumenfield 

                        FEBRUARY 2, 2010

    An act to amend Section 470.5 of the Business and
Professions Code, relating to courts.   An act to amend
Sections 16182, 16183, 16200, 16202, 16211, 16211.5, and 53684 of,
and to repeal and add Sections 16180 and 16213 of, the Government
Code, and to amend Sections 2505, 2515, 20503, 20505, 20582, 20583,
20583.1, 20585, 20586, 20605, 20621, 20622, 20639.1, 20639.6,
20639.8, 20639.9, 20639.11, 20640.1, 20640.3, 20640.4, 20640.6,
20640.8, 20640.9, 20640.11, 20641, and 20643 of, to add Sections
20584.1, 20587, 20588, 20589, 20590, 20591, and 20648 to, to repeal
Section 20623 of, to repeal Chapter 3 (commencing with Section 20625)
of Part 10.5 of Division 2 of, and to repeal and add Sections 2514
and 20602 of, the Revenue and Taxation Code, relating to taxation,
making an   appropriation therefor. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1718, as amended,  Monning   Blumenfield
 .  Court fees.   Taxation: property tax
postponement.  
   The Senior Citizens and Disabled Citizens Property Tax
Postponement Law, until February 20, 2009, authorized a claimant, as
defined, to file a claim with the Controller to postpone the payment
of ad valorem property taxes, where household income, as defined, did
not exceed specified amounts. Existing law authorized the
Controller, upon approval of the claim, to either make payment
directly to specified entities, or to issue the claimant a
certificate of eligibility that constituted a written promise of the
state to pay the amount specified on the certificate, as provided.
Existing law required these payments to be made out of a specified
funds appropriated to the Controller, as specified, and also required
repaid property tax postponement payments be transferred, as
specified, to the General Fund.  
   This bill would revise and recast the provisions of the Senior
Citizens and Disabled Citizens Property Tax Postponement Law to,
among other things, delete the Controller's authority, either to make
payments directly to specified entities or to issue a property tax
postponement payment on behalf of the claimant upon receipt of a
specified verification from the county tax collector.  
   This bill would instead authorize the Controller to use moneys in
the Senior Citizens and Disabled Citizens Property Tax Postponement
Fund, a continuously appropriated fund that this bill would create,
to make property tax postponement payments, as specified, or to pay
costs incurred in administrating the program or the fund. This bill
would require all sums paid by the Controller to be secured by a
lien, which has priority over all other subsequently filed liens.
This bill would require the Controller to prescribe a maximum annual
postponement loan amount, and would require the Controller to
annually calculate the interest rate to be applied to a deferral made
on or after January 1, 2010, as provided. This bill would require
property tax postponement loan repayments, for all property tax
postponement loans made after January 1, 2010, to be deposited into
the fund. This bill would require the Controller to assess an annual
fee of $75 on each participant of the program for whom property taxes
are deferred on or after January 1, 2010, and the proceeds of the
fee to be deposited in the Senior Citizens and Disabled Citizens
Property Tax Postponement Fund. By requiring moneys to be deposited
within a continuously appropriated fund, this bill would make an
appropriation.  
   This bill would also create the Property Tax Postponement
Participating Local Agency Account, a trust account within the Senior
Citizens and Disabled Citizens Property Tax Postponement Fund, and
would require any moneys deposited in the fund by a county or city
and county participating in the program to be held for in the account
for 10 years from the date of their deposit. The bill would specify
the annual interest rate applicable to moneys in the account. By
requiring additional moneys to be deposited within a continuously
appropriated fund, this bill would make an appropriation.  
   This bill would prohibit a mortgagee, trustee, or other person
authorized to take sale on real property due to the mortgagor's or
trustor's failure to pay property taxes from filing a notice of
default for 5 years following the initiation of that authorization if
the mortgagor or trustor provides evidence of participation in the
property tax postponement program. The bill would require the
Controller to provide specified program participants with written
confirmation of participation for use as evidence.  
   This bill would also make conforming changes to the Senior
Citizens Mobilehome Property Tax Postponement Law and the Senior
Citizens Possessory Interest Holder Property Tax Postponement Law.
 
   Existing law, on and after February 20, 2009, prohibits a person
from filing a claim for postponement, and prohibits the Controller
from accepting applications for postponement, under the Senior
Citizens and Disabled Citizens Property Tax Postponement Law. 

   This bill would repeal that provision.  
   This bill would, for the 2009-10 and 2010-11 fiscal years,
authorize the tax collector to cancel any delinquent penalties owed
by the claimant for those fiscal years if a postponement claim is
timely filed, as specified.  
   The Senior Citizens Tenant-Stockholder Property Tax Postponement
Law authorizes a tenant-stockholder claimant, as defined, to file
with the Controller a claim to postpone the payment of ad valorem
property taxes, as specified.  
   This bill would repeal that law and make conforming changes to
related provisions.  
   Existing law requires the Administrative Office of the Courts to
make monthly distributions from superior court filing fees for the
support of specified dispute resolution programs established by
counties. Existing law provides that the total amount to be
distributed for those programs may be no more than $8 per filing fee.
 
   This bill would instead limit the amount to be distributed to an
unspecified amount. 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee: yes. State-mandated local program: no.


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

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) Since 1977, the Senior Citizens and Disabled Citizens Property
Tax Postponement Law has helped eligible elderly and disabled
residents on fixed incomes remain in their homes by deferring payment
of property taxes until the house is sold or ownership otherwise
transferred.  
   (b) Suspension of the Senior Citizens and Disabled Citizens
Property Tax Postponement Law in February 2009 has exposed
participants to possible default on property taxes in December 2009
and thereafter, and has heightened fears of home foreclosures. 

   (c) While counties may not force the sale of a home to collect on
delinquent property taxes for five years, no similar delay applies to
lenders that would protect the elderly and disabled who would have
participated in the property tax deferral program established
pursuant to the Senior Citizens and Disabled Citizens Property Tax
Postponement Law had it not been suspended. 
   SEC. 2.    Section 16180 of the   Government
Code   is repealed.  
   16180.  Out of the amount appropriated to the Controller by
Section 16100, the sum of twelve million seven hundred thousand
dollars ($12,700,000) for the 1977-78 fiscal year and each fiscal
year thereafter is hereby made available to the Controller to pay the
face amount of all certificates of eligibility for the postponement
of property taxes submitted to the Controller which are signed and
countersigned in the manner specified in Sections 20602, 20603,
20639.6, 20640.6, and 20640.7 of the Revenue and Taxation Code.

   SEC. 3.    Section 16180 is added to the  
Government Code   , to read:  
   16180.  (a) The Senior Citizens and Disabled Citizens Property Tax
Postponement Fund is hereby created in the State Treasury.
Notwithstanding Section 13340, moneys in the fund are continuously
appropriated to the Controller, without regard to fiscal year, for
use in accordance with this chapter.
   (b) All expenses incurred in carrying out the provisions of this
chapter and Chapter 2 (commencing with Section 20581), Chapter 3.3
(commencing with Section 20639), and Chapter 3.5 (commencing with
Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation
Code shall be payable solely from the fund. No liability or
obligation shall be imposed upon the state, and none shall be
incurred by the Controller, beyond those authorized by this chapter
or Chapter 2 (commencing with Section 20581), Chapter 3.3 (commencing
with Section 20639), and Chapter 3.5 (commencing with Section 20640)
of Part 10.5 of Division 2 of the Revenue and Taxation Code.
   (c) The Controller may use moneys in the fund for either of the
following purposes:
   (1) To make property tax payments on behalf of claimants pursuant
to this chapter and Chapter 2 of Part 10.5 of Division 2 of the
Revenue and Taxation Code.
   (2) To pay costs incurred in administering the program or the
fund.
   (d) Any moneys deposited into the Senior Citizens and Disabled
Citizens Property Tax Postponement Fund by a participating county or
city and county shall be held in a trust account which is hereby
created and titled the Property Tax Postponement Participating Local
Agency Account. All moneys in the account shall be nonstate moneys,
be exempt from subdivision (d), and shall be used exclusively by the
Controller for the purpose specified in paragraph (1) of subdivision
(c).
   (e) Deposits into the Participating Local Agency Account shall not
be subject to claim by the participating local agency until 10 years
after the date of deposit into the account. The Controller shall
credit to each subaccount in the account an annual interest rate
equal to the 5 percent per annum or an amount calculated using the
interest rate on the United States Treasury's 10-year bond note at
the date of deposit plus 2 percent, whichever is higher which shall
be repaid 10 years after the deposit date. If money in a subaccount
is used for the purpose specified in paragraph (1) of subdivision
(c), interest shall continue to be credited as provided in this
subdivision.
   (f) Deposits into the Participating Local Agency Account
authorized by resolution of a county board of supervisors shall be
deemed consistent with prudent financial management pursuant to
Section 53637 of the Government Code, and a prudent investment of
public funds pursuant to Sections 27000.3 and 27000.5 of the
Government Code.
   (g) The aggregate amount deposited into the Participating Local
Agency Account shall not exceed thirty million dollars ($30,000,000)
annually.
   (h) The Controller shall be responsible for maintaining the
account and shall maintain a separate subaccount for each deposit
made.
   (i) (1) Except for amounts appropriated by the Legislature for the
Controller's costs to administer the program in its initial year,
moneys deposited into this fund shall be from non-General Fund
revenue sources and any repayment made to a participating local
agency of any principal and interest shall be made exclusively from
this fund and shall not be a General Fund obligation.
   (2) Property tax postponement payments repaid pursuant to the
Senior Citizens and Disabled Citizens Property Tax Postponement law
as it existed on February 19, 2009, shall continue to be transferred
to the General Fund. 
   SEC. 4.    Section 16182 of the    
Government Code   is amended to read: 
   16182.  (a) All sums paid by the Controller under the provisions
of this chapter, together with interest thereon, shall be secured by
a lien in favor of the State of California upon the real property or
a mobilehome for which property taxes have been postponed, or both.
In the case of a residential dwelling which is part of a larger
parcel taxed as a unit, such as a duplex, farm, or multipurpose or
multidwelling building, the lien shall be against the entire tax
parcel.  Notwithstanding any other law to the contrary, this lien
shall have the same priority as a county property tax lien, as
described in Section 2192.1 of the Revenue and Taxation Code. 
   (b) In the case of real property:
   (1) The lien shall be evidenced by a notice of lien for postponed
property taxes executed by the Controller, or the authorized delegate
of the Controller, and shall secure all sums paid or owing pursuant
to this chapter, including amounts paid subsequent to the initial
payment of postponed taxes on the real property described in the
notice of lien.
   (2) The notice of lien may bear the facsimile signature of the
Controller. Each signature shall be that of the person who shall be
in the office at the time of execution of the notice of lien;
provided, however, that such notice of lien shall be valid and
binding notwithstanding any such person having ceased to hold the
office of Controller before the date of recordation.
   (3) The form and contents of the notice of lien for postponed
property taxes shall be prescribed by the Controller and shall
include, but not be limited to, the following:
   (A) The names of all record owners of the real property for which
the Controller has advanced funds for the payment of real property
taxes.
   (B) A description of the real property for which real property
taxes have been paid.
   (C) The identification number of the notice of lien which has been
assigned the lien by the Controller.
   (4) The notice of lien shall be recorded in the office of the
county recorder for the county in which the real property subject to
the lien is located.
   (5) The recorded notice of lien shall be indexed in the Grantor
Index to the names of all record owners of the real property and in
the Grantee Index to the Controller of the State of California.
   (6) After the notice of lien has been duly recorded and indexed,
it shall be returned by the county recorder to the office of the
Controller. The recorder shall provide the county tax collector with
a copy of the notice of lien which has been recorded by the
Controller.
   (7) From the time of recordation of a notice of lien for postponed
property taxes, a lien shall attach to the real property described
therein and shall have the priority of a judgment lien for all
amounts secured thereby, except that the lien shall remain in effect
until either of the following occurs:
   (A) It is released by the Controller in the manner prescribed by
Section 16186.
   (B) The foreclosure or sale of an obligation secured by a lien
which is senior in priority to the lien of the State of California.
   (c) In the case of mobilehomes:
   (1) The lien shall be evidenced by a notice of lien for postponed
property taxes executed by the Controller, or the authorized delegate
of the Controller, and shall secure all sums paid or owing pursuant
to this chapter.
   (2) The notice of lien may bear the facsimile signature of the
Controller. The signature shall be that of the person who is in the
office at the time of execution of the notice of lien. However, the
notice of lien is valid and binding notwithstanding the person having
ceased to hold the office of Controller before the date of filing.
   (3) The form and contents of the notice of lien for postponed
property taxes shall be prescribed by the Controller and shall
include, but not be limited to, all of the following:
   (A) The name or names of the registered owner or owners, legal
owner or owners, if different than the registered owner or owners and
the names, if any, of all junior lienholders.
   (B) The identification number of the notice of lien which has been
assigned the lien by the Controller.
   (4) The notice of lien shall be transmitted to the Department of
Housing and Community Development at its office in Sacramento,
California.
   (5) Upon receipt of the notice of lien for postponed property
taxes from the Controller, the Department of Housing and Community
Development shall amend the permanent title record of the mobilehome
to reflect that the property taxes on the mobilehome are subject to
postponement.
   (6) The Department of Housing and Community Development shall
provide the Controller with an  acknowledgement 
 acknowledgment  of receipt and amendment of the permanent
title record.
   (7) From the time the Department of Housing and Community
Development receives the notice of lien from the Controller, the
department shall impose a moratorium on any other amendments to the
permanent title record of the mobilehome for purposes of transferring
any ownership interest or transferring or creating any security
interest in the mobilehome, until released by the Controller in the
manner prescribed by Section 16186 or an authorization for the
amendments is given by the Controller in writing.
   (d) From the time of filing a notice of lien, a lien shall attach
to the mobilehome for which eligibility for the postponement of
property taxes has been granted.
   (e) Notwithstanding any other provision in this section, any
action required of a local agency by this section in order to give
effect to the Senior Citizens Mobilehome Property Tax Postponement
Law (Chapter 3.3 (commencing with Section 20639) of Part 10.5 of
Division 2 of the Revenue and Taxation  Code  
Code)  , and that has been determined by the Commission on State
Mandates to be a reimbursable mandate, shall be optional.
   SEC. 5.    Section 16183 of the   Government
Code   is amended to read: 
   16183.  (a)  (1)    From the
time a payment is made pursuant to Section 16180, the amount of that
payment shall bear interest at a rate (not compounded), determined as
follows:
   (1) For the period ending June 30, 1984, the rate of interest
shall be 7 percent per annum. 
   (2) The Controller shall establish an adjusted rate of interest
for the purpose of this subdivision not later than July 15th of any
year if the effective annual yield of the Pooled Money Investment
Account for the prior fiscal year is at least a full percentage point
more or less than the interest rate which is then in effect. The
adjusted rate of interest shall be equal per annum to the effective
annual yield earned in the prior fiscal year by the Pooled Money
Investment Account rounded to the nearest full percent, and shall
become effective for new deferrals, beginning on July 1, 1984, and on
July 1 of each immediately succeeding year.  
   (3) The rate of interest provided pursuant to this subdivision for
the first fiscal year commencing after payment is made pursuant to
Section 16180 shall apply for that fiscal year and each fiscal year
thereafter until these postponed property taxes are repaid. 

   (2) The Controller shall establish for program participants a rate
of interest equal to 7 percent per annum, unless a higher rate is
calculated at the interest rate based on the United States Treasury's
10-year bond note at the time the Controller approves a participant'
s application plus 4 percent, rounded to the nearest full percent.
The adjusted rate of interest shall be calculated no later than July
15 of any year. The interest rate shall become effective for new
deferrals, beginning on January 1, 2010, and on January 1 of each
immediately succeeding year.  
   (3) For deferrals made prior to January 1, 2010, the rate of
interest provided pursuant to this subdivision for the first year
commencing after payment is made pursuant to Section 16180 shall
apply for that fiscal year and each fiscal year thereafter until
those postponed property taxes are repaid.  
   (4) For deferrals made on or after January 1, 2010, the rate of
interest shall be adjusted annually, pursuant to paragraph (2). 

   (b) The interest provided for in subdivision (a) shall be applied
beginning the first day of the month following the month in which
that payment is made and continuing on the first day of each month
thereafter until that amount is paid. In the event that any payments
are applied, in any month, to reduce the amount paid pursuant to
Section 16180, the interest provided for herein shall be applied to
the balance of that amount beginning on the first day of the
following month.
   (c) In computing interest in accordance with this section,
fractions of a cent shall be disregarded.
   (d) For the purpose of this section, the time a payment is made
shall be deemed to be the  time a certificate of eligibility
is countersigned by the tax collector or the delinquency date of the
respective tax installment, whichever is later   date
the Controller issues the property tax postponement payment to the
county  .
   (e) The Controller shall include on forms supplied to claimants
pursuant to Sections 20621, 20630.5, 20639.9, 20640.9, and 20641 of
the Revenue and Taxation Code, a statement of the interest rate which
shall apply to amounts postponed for the fiscal year to which the
form applies. 
   (f) The Controller shall assess an annual fee of seventy-five
dollars ($75) to all claimants, as defined in Section 20505 of the
Revenue and Taxation Code, approved to participate in the property
tax postponement program and for whom property taxes are deferred on
or after January 1, 2010.  
   (g) Amounts collected pursuant to this section shall be deposited
into the Senior Citizens and Disabled Citizens Property Tax
Postponement Fund for expenditures in the manner provided in Section
16180. 
   SEC. 6.    Section 16200 of the   Government
Code   is amended to read: 
   16200.  In the event that the Controller receives the notice
described in Section 16187 of this code or Section 3375 of the
Revenue and Taxation Code, the Controller may take any of the
following actions which will best serve the interests of the state:
   (a) Out of the amount appropriated by  Section 16100,
 the  Legislature or otherwise deposited into the Senior
Citizens and Disabled Citizens Property Tax Postponement Fund, the
 Controller may pay the amount of any delinquent taxes,
interest, or penalties on the property or the amount of any other
obligation secured by a lien or encumbrance on the property and add
such amount to the amount secured by the lien on such property
provided for in Article 1 (commencing with Section 16180) of this
chapter.
   (b) Notify by United States mail the tax collector or other party
that such notice has been received and that the Controller must be
given at least 20 days prior notice of the date that the property
will be sold at auction. If the Controller elects to proceed under
this subdivision, the Controller may use  funds appropriated
by Section 16100   moneys in the Senior Citizens and
Disabled Citizens Property Tax Postponement Fund, or from any
appropriation in lieu thereof,  to bid on the property at the
auction up to the amount secured by the state's lien on the property
and any lien on such property having priority over the state's lien.
All additional amounts paid pursuant to this subdivision shall be
added to the amount secured by the lien on such property provided for
in Article 1 (commencing with Section 16180) of this chapter.
   (c) Acknowledge by United States mail that the notice required by
Section 16187 of this code or Section 3375 of the Revenue and
Taxation Code has been received.
   SEC. 7.    Section 16202 of the   Government
Code   is amended to read: 
   16202.   (a)    Notwithstanding any other
provision of law, in the event that the state acquires an interest in
real property pursuant to subdivision (b) of Section 16200, the
Controller may, in addition to the options provided in Section 16201,
take any other action with respect to that real property interest as
will best serve the interest of the state. These actions may
include, but shall not be limited to, the sale, lease, or retention
of any interest so acquired. The Controller may contract with
licensed real estate brokers, maintenance and repair contractors,
security contractors, appraisers, property managers, insurance
brokers, and any other experts or specialists as may be necessary to
protect or preserve the state's interest in that property. The
Controller may pay the costs incurred pursuant to those contracts
 out of the amount appropriated by Section 16100 
 from moneys in the Senior Citizens and Disabled Citizens
Property Tax Postponement Fund  , or from any appropriation in
lieu thereof. 
   The 
    (b)     The  sale of those interests
may be made on the basis of conventional financing arrangements
including the securing of payment through the use of promissory
notes, deeds of trust, and other accepted methods of deferred
payment.
   SEC. 8.    Section 16211 of the   Government
Code   is amended to read: 
   16211.  The claimant under Chapter 2 (commencing with Section
20581), Chapter  3 (commencing with Section 20625), Chapter
 3.3 (commencing with Section  20639  
20639)  , or Chapter 3.5 (commencing with Section 20640) of Part
10.5 of Division 2 of the Revenue and Taxation Code whose
residential dwelling was sold or condemned may draw upon the amount
in the account to purchase a new residential dwelling, and the amount
so drawn shall be secured by a new lien against the new residential
dwelling from the time the Controller records the new lien against
the new residential dwelling as provided for under Section 16182.
   In the case of real property, the Controller shall subordinate the
new lien to the lien of the note and deed of trust of the purchase
money obligations used in the acquisition of the new residential
dwelling, provided the claimant has an equity of at least 20 percent
of the full value of the property, as required by paragraph (1) of
subdivision (b) of Section 20583 of the Revenue and Taxation Code,
prior to recordation of that subordination. The lien shall have
priority over all subsequent liens, except as provided in Section
2192.1 of the Revenue and Taxation Code.
   SEC. 9.    Section 16211.5 of the  
Government Code   is amended to read: 
   16211.5.  (a) In the event that the real property securing the
state's lien provided for in Article 1 (commencing with Section
16180) is the residential dwelling of a claimant under Chapter 2
(commencing with Section 20581) of Part 10.5 of Division 2 of the
Revenue and Taxation Code and is voluntarily sold, the funds derived
from the voluntary sale of the residential dwelling shall be placed
in an impound account for a period of six months. In connection with
the establishment of such account, the Controller shall release the
state's lien in the manner prescribed by Section 16186.
   (b) The claimant under Chapter 2 (commencing with Section 20581)
of Part 10.5 of Division 2 of the Revenue and Taxation Code whose
residential dwelling was voluntarily sold may draw upon the amount in
the account to purchase a new residential dwelling, and the amount
so drawn shall be secured by a new lien against the new residential
dwelling from the time the Controller records the new lien against
the new residential dwelling as provided for under Section 16182.
   The Controller shall subordinate such new lien to the note and
deed of trust of the purchase money obligations used in the
acquisition of the new residential dwelling, provided the claimant
has an equity of at least 20 percent of the full value of the
property, as required by paragraph (1) of subdivision (b) of Section
20583 of the Revenue and Taxation Code, prior to recordation of such
subordination. Such lien shall have priority over all subsequent
liens  , except as provided in Section 2192.1 of the Revenue
and Taxation Code  .
   SEC. 10.    Section 16213 of the  
Government Code   is repealed.  
   16213.  At the end of the six-month period specified in Section
16210 or the six-month period specified in Section 16211.5, all funds
remaining in an impound account shall be transferred to the General
Fund. 
   SEC. 11.    Section 16213 is added to the  
Government Code   , to read:  
   16213.  (a) For all property tax postponement loans made after
January 1, 2010, payments for amounts owed pursuant to Article 1
(commencing with Section 16180) shall be deposited into the Senior
Citizens and Disabled Citizens Property Tax Postponement Fund.
   (b) For all property tax postponement loans made before December
31, 2009, payments for amounts owed pursuant to Article 1 (commencing
with Section 16180) shall be placed into an impound account, as
specified in either Section 16210 or 16211.5, and shall be
transferred to the General Fund at the end of the applicable
six-month period. 
   SEC. 12.    Section 53684 of the  
Government Code   is amended to read: 
   53684.  (a) Unless otherwise provided by law, if the treasurer of
any local agency, or other official responsible for the funds of the
local agency, determines that the local agency has excess funds which
are not required for immediate use, the treasurer or other official
may, upon the adoption of a resolution by the legislative or
governing body of the local agency authorizing the investment of
funds pursuant to this section and with the consent of the county
treasurer, deposit the excess funds in the county treasury for the
purpose of investment by the county treasurer pursuant to Section
 16180,  53601  ,  or 53635.
   (b) The county treasurer shall, at least quarterly, apportion any
interest or other increment derived from the investment of funds
pursuant to this section in an amount proportionate to the average
daily balance of the amounts deposited by the local agency and to the
total average daily balance of deposits in the investment pool. In
apportioning and distributing that interest or increment, the county
treasurer may use the cash method, the accrual method, or any other
method in accordance with generally accepted accounting principles.
   Prior to distributing that interest or increment, the county
treasurer may deduct the actual costs incurred by the county in
administering this section in proportion to the average daily balance
of the amounts deposited by the local agency and to the total
average daily balance of deposits in the investment pool.
   (c) The county treasurer shall disclose to each local agency that
invests funds pursuant to this section the method of accounting used,
whether cash, accrual, or other, and shall notify each local agency
of any proposed changes in the accounting method at least 30 days
prior to the date on which the proposed changes take effect.
   (d) The treasurer or other official responsible for the funds of
the local agency may withdraw the funds of the local agency pursuant
to the procedure specified in Section 27136.
   (e) Any moneys deposited in the county treasury for investment
pursuant to this section are not subject to impoundment or seizure by
any county official or agency while the funds are so deposited.
   (f) This section is not operative in any county until the board of
supervisors of the county, by majority vote, adopts a resolution
making this section operative in the county.
   (g) It is the intent of the Legislature in enacting this section
to provide an alternative procedure to Section 51301 for local
agencies to deposit money in the county treasury for investment
purposes. Nothing in this section shall, therefore, be construed as a
limitation on the authority of a county and a city to contract for
the county treasurer to perform treasury functions for a city
pursuant to Section 51301.
                                                                
SEC. 13.    Section 2505 of the   Revenue and
Taxation Code   is amended to read: 
   2505.  (a) Except as provided in subdivision (b), the tax
collector or treasurer for any city or county may in his or her
discretion accept negotiable paper in payment of any tax, or
assessment, or on a redemption.
   (b) The tax collector of a county shall accept a 
certificate of eligibility to   property tax
postponement payment from the Controller issued pursuant to Section
20602 to  pay all or any part of any ad valorem property tax,
special assessment, or other charge or user fee appearing on the
county tax bill. The tax collector, treasurer, or other official
charged with the duty of collecting taxes for a chartered city which
levies and collects its own property taxes shall accept a 
certificate of eligibility   property tax postponement
payment from the Controller issued pursuant to Section 20602  to
pay all or any part of any ad valorem property tax, special
assessment, or other charge or user fee appearing on the tax bill of
such city. A certificate for partial payment shall not be accepted
unless accompanied by an amount sufficient to fully pay the remaining
ad valorem property taxes, special assessment, or other charge or
fee appearing on the respective tax bill installment.
   (c) Except as provided in Chapter 2 (commencing with Section
20581), Chapter  3. 3   3.3  (commencing
with Section 20639), Chapter 3.5 (commencing with Section 20640), or
Chapter 4 (commencing with Section 20641) of Part 10.5 of Division 2,
a certificate of eligibility shall not be used to pay any delinquent
taxes, assessments, penalties, costs, fees, or interest, or any
redemption charges.
   (d) For the 1978-79 fiscal year and thereafter, except as to those
amounts which can be paid by a certificate pursuant to subdivision
(c), the tax collector shall not accept a certificate of eligibility
to pay all or part of any installment if tendered after the
delinquency date thereof, unless accompanied by an amount sufficient
to fully pay any delinquent taxes, assessments, costs, penalties,
interest, fees or other charges resulting from the delinquency or
delinquencies.
   (e) In no event shall a certificate of eligibility be accepted
later than the expiration date designated thereon.
   SEC. 14.    Section 2514 of the   Revenue
and Taxation Code   is repealed.  
   2514.  (a) Upon receipt of a certificate of eligibility described
in Section 20602, Section 20639.6, or Section 20640.6 signed by the
claimant, the claimant's spouse, or authorized agent appointed under
regulations adopted by the Controller pursuant to Section 20603 or
Section 20640.7, the tax collector shall ascertain whether the amount
of money entered on the certificate by such claimant or agent, when
added to other amounts available for such purpose, are sufficient to
pay the amount due and owing.
   If such is the case, the tax collector or his or her designee
shall countersign the certificate and mark the tax paid. Once signed
and countersigned, a certificate of eligibility shall be deemed a
negotiable instrument for purposes of all laws of this state, as
specified in subdivision (d) of Section 20602. Upon acceptance of
such a certificate:
   (1) The tax collector shall enter the fact that taxes on the
property have been postponed in appropriate columns on the roll. In
the case of the secured roll, this information may be entered in that
portion of the roll which has been designated for tax default
information required by Section 3439.
   (2) In the case of a certificate of eligibility issued pursuant to
Section 20602, the tax collector shall determine if the property
described in the certificate of eligibility is subject to a lien
recorded pursuant to Section 16182 of the Government Code. If the
property is not subject to such a lien, the tax collector shall enter
the amount paid by use of the certificate, the date of such payment,
the Controller's identification number shown on the certificate of
eligibility, the address of the property covered by the certificate,
and the name of the claimant as shown on the certificate on a "notice
of lien for postponed property taxes" form which shall be provided
by the Controller. The tax collector shall thereafter forward such
notice of lien form to the assessor.
   (3) With respect to a claimant whose property taxes are paid by a
lender from an impound, trust, or other type of account described in
Section 2954 of the Civil Code, the tax collector shall notify the
auditor of the claimant's name and address, and the amount of money
entered on the certificate.
   The auditor, treasurer, or disbursing officer shall send a check
in the amount of money entered on the certificate to said claimant
within 30 days following the date on which the installment is paid by
the lender or the certificate of eligibility is received from the
claimant, whichever is later.
   (b) The procedures established by this chapter shall not be
construed to require a lender to alter the manner in which a lender
makes payment of the property taxes of such claimant.
   (c) Notwithstanding any other provision in this section, any
action required of a local agency by this section in order to give
effect to the Senior Citizens Mobilehome Property Tax Postponement
Law (Chapter 3.3 (commencing with Section 20639) of Part 10.5 of
Division 2, and that has been determined by the Commission on State
Mandates to be a reimbursable mandate, shall be optional. 
   SEC. 15.    Section 2514 is added to the  
Revenue and Taxation Code   , to read:  
   2514.  (a) Upon receipt of a property tax postponement payment
from the Controller issued pursuant to Section 20602, the tax
collector shall ascertain whether the amount of the property tax
postponement from the Controller, when added to other amounts
available for such purpose, is sufficient to pay the amount due and
owing.
   If such is the case, the tax collector or his or her designee
shall process the property tax postponement payment from the
Controller and mark the tax paid. Upon acceptance of the property tax
postponement payment from the Controller:
   (1) The tax collector shall enter the fact that taxes on the
property have been postponed in appropriate columns on the roll. In
the case of the secured roll, this information may be entered in that
portion of the roll that has been designated for tax default
information required by Section 3439.
   (2) In the case of a property tax postponement payment issued
pursuant to Section 20602, the tax collector shall determine if the
property is subject to a property tax postponement lien recorded
pursuant to Section 16182 of the Government Code. If the property is
not subject to such a lien, the tax collector shall enter the address
of the property, the name of the claimant, the county code, and the
assessor's parcel number on a "notice of lien for postponed property
taxes" form which shall be provided by the Controller. The tax
collector shall thereafter forward the notice of lien form to the
assessor.
   (3) With respect to a claimant whose property taxes are paid by a
lender from an impound, trust, or other type of account described in
Section 2954 of the Civil Code, the tax collector shall notify the
auditor of the claimant's name and address and the amount of the
property tax postponement payment.
   The auditor, treasurer, or disbursing officer shall send a check
in the amount of the property tax postponement payment to the
claimant within 30 days following the date on which the installment
is paid by the lender or the property tax postponement payment is
received from the Controller, whichever is later.
   (b) The procedures established by this chapter shall not be
construed to require a lender to alter the manner in which a lender
makes payment of the property taxes of such claimant.
   (c) Notwithstanding any other provision in this section, any
action required of a local agency by this section in order to give
effect to the Senior Citizens Mobilehome Property Tax Postponement
Law (Chapter 3.3 (commencing with Section 20639) of Part 10.5 of
Division 2), and that has been determined by the Commission on State
Mandates to be a reimbursable mandate, shall be optional. 
   SEC. 16.    Section 2515 of the   Revenue
and Taxation Code   is amended to read: 
   2515.  (a) Upon receipt of a "notice of lien for postponed
property taxes" from the tax collector, the assessor shall
immediately:
   (1) Enter, on the notice of lien, a description of the real
property for which the taxes have been paid by  use of a
certificate of eligibility   the Controller 
pursuant to Section 2514. Such description shall be a "metes and
bounds," "lot-block-tract," or  such   any 
other description as is determined by the Controller to sufficiently
describe the real property for the purpose of securing the state's
lien.
   (2) Enter on the notice of lien, the names of all record owners of
the property described under subdivision (a)  of this
section  , as disclosed by the assessor's records.
   (3) Upon entry of the information required by subdivisions (a) and
(b)  of this section  on the notice of lien, the
assessor shall immediately forward the notice of lien to the county
recorder.
   (4) Enter on the assessment records applicable to  such
  the  property, the fact that the taxes on the
property have been postponed and the Controller's identification
number, and shall, when  such   the  record
reveals a change in the ownership status of the property subsequent
to the date of entry of the postponement information thereon, notify
the Controller of  such   the  change in
the ownership status in the manner prescribed by the Controller.
   (b) From the time of recordation of the notice of lien pursuant to
Section 16182 of the Government Code, the lien for postponed
property taxes shall be deemed to impart constructive notice of the
contents thereof to subsequent purchasers, mortgagees, lessees  ,
 and other lienors.
   SEC. 17.    Section 20503 of the   Revenue
and Taxation Code   is amended to read: 
   20503.  (a) "Income" means adjusted gross income as defined in
Section 17072 plus all of the following cash items:
   (1) Public assistance and relief.
   (2) Nontaxable amount of pensions and annuities.
   (3) Social security benefits (except Medicare).
   (4) Railroad retirement benefits.
   (5) Unemployment insurance payments.
   (6) Veterans' benefits.
   (7) Exempt interest received from any source.
   (8) Gifts and inheritances in excess of three hundred dollars
($300), other than transfers between members of the household. Gifts
and inheritances include noncash items.
   (9) Amounts contributed on behalf of the contributor to a
tax-sheltered retirement plan or deferred compensation plan.
   (10) Temporary workers' compensation payments.
   (11) Sick leave payments.
   (12) Nontaxable military compensation as defined in Section 112 of
the Internal Revenue Code.
   (13) Nontaxable scholarship and fellowship grants as defined in
Section 117 of the Internal Revenue Code.
   (14) Nontaxable gain from the sale of a residence as defined in
Section 121 of the Internal Revenue Code.
   (15) Life insurance proceeds to the extent that the proceeds
exceed the expenses incurred for the last illness and funeral of the
deceased spouse of the claimant. "Expenses incurred for the last
illness" includes unreimbursed expenses paid or incurred during the
income calendar year and any expenses paid or incurred thereafter up
until the date the claim is filed. For purposes of this paragraph,
funeral expenses shall not exceed five thousand dollars ($5,000).
   (16) If an alternative minimum tax is required to be paid pursuant
to Chapter 2.1 (commencing with Section 17062) of Part 10, the
amount of alternative minimum taxable income (whether or not cash) in
excess of the regular taxable income.
   (17) Annual winnings from the California Lottery in excess of six
hundred dollars ($600) for the current year.
   (b) For purposes of this chapter, total income shall be determined
for the calendar year (or approved fiscal year ending within that
calendar year) which ends within the fiscal year for which assistance
is claimed. 
   (c) For purposes of Chapter 2 (commencing with Section 20581),
Chapter 3 (commencing with Section 20625), and Chapter 3.5
(commencing with Section 20640), total income shall be determined for
the calendar year ending immediately prior to the commencement of
the fiscal year for which postponement is claimed. 
   SEC. 18.    Section 20505 of the   Revenue
and Taxation Code   is amended to read:  
   20505.  "Claimant" means an individual who--
   (a) For 
    20505.    For  purposes of this chapter  ,
"claimant" means an individual who  was either (1) 62 years of
age or older on the last day of the calendar year or approved fiscal
year designated in subdivision (b)  or (c)  of
Section 20503,  whichever is applicable,  or (2)
blind or disabled, as defined in Section 12050 of the Welfare and
Institutions Code on the last day of the calendar year or approved
fiscal year designated in subdivision (b) of Section 20503, who was a
member of the household, and who was either: (1) the owner and
occupier of a residential dwelling on the last day of the year
designated in subdivision (b)  or (c)  of Section
20503, or (2) the renter of a rented residence on or before the last
day of the year designated in subdivision (b) of Section 20503. An
individual who qualifies as an owner-claimant may not qualify as a
renter-claimant for the same year. 
   (b) (1) For purposes of Chapter 2 (commencing with Section 20581),
Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing
with Section 20639), and Chapter 3.5 (commencing with Section 20640)
was a member of the household and either an owner-occupant, or a
tenant stockholder occupant, or a possessory interestholder occupant,
or a mobilehome owner-occupant, as the case may be, of the
residential dwelling as to which postponement is claimed on the last
day of the year designated in subdivision (b) or (c) of Section
20503, and who was 62 years of age or older by December 31 of the
fiscal year for which postponement is claimed.  
   (2) For purposes of Chapter 2 (commencing with Section 20581),
Chapter 3 (commencing with Section 20625), Chapter 3.3 (commencing
with Section 20639), and Chapter 3.5 (commencing with Section 20640)
was a member of the household and an owner-occupant of the
residential dwelling as to which postponement is claimed on the last
day of the year designated in subdivision (c) of Section 20503, and
who was blind or disabled, as defined in Section 12050 of the Welfare
and Institutions Code, at the time of application or on December 10
of the fiscal year for which postponement is claimed, whichever is
earlier.  
   (c) Where amounts have been postponed for any given fiscal year
and the claimant continues to own and occupy the residential dwelling
on December 31 of the calendar year in which the fiscal year begins,
and the claimant sells the dwelling and buys a new residential
dwelling in this state on or before December 31 of the following
fiscal year and the new dwelling is the claimant's principal place of
residence, then in that event, the claimant shall be deemed to be a
qualified claimant for the purpose of this section. These regulations
shall become effective immediately upon filing with the Secretary of
State. 
   SEC. 19.    Section 20582 of the   Revenue
and Taxation Code   is amended to read: 
   20582.  Unless the context otherwise requires, the definitions
given in  Chapter 1 (commencing with Section 20501) of this
part and in this article   this chapter  shall
govern the construction of  this chapter  
Chapter 2 (commencing with Section 20581), Chapter 3.3 (commencing
with Section 20639), Chapter 3.5 (commencing with Section 20640), and
Chapter 4 (commencing with Section 20641)  .
   SEC. 20.    Section 20583 of the   Revenue
and Taxation Code   is amended to read: 
   20583.  (a) "Residential dwelling" means a dwelling occupied as
the principal place of residence of the claimant, and so much of the
land surrounding it as is reasonably necessary for use of the
dwelling as a home, owned by  (1)  the claimant,  (2)
 the claimant and  spouse, or by the claimant and either
another individual eligible for postponement under this chapter or
an individual described in subdivision (a), (b), or (c) of Section
20511   the claimant's spouse, (3) the claimant and
parents, children (natural or adopted), or grandchildren of either
the claimant or the claimant's spouse, (4) the claimant and the
spouse of any parent, child (natural or adopted), or grandchild of
either the claimant or the claimant's spouse, or (5) the claimant and
another individual eligible for postponement under this chapter
 and located in this state. It shall include condominiums and
mobilehomes that are assessed as realty for local property tax
purposes. It also includes part of a multidwelling or multipurpose
building and a part of the land upon which it is built. In the case
of a mobilehome not assessed as real property that is located on land
owned by the claimant, "residential dwelling" includes the land on
which the mobilehome is situated and so much of the land surrounding
it as reasonably necessary for use of the mobilehome as a home. 
It shall also include a dwelling unit that is a mobilehome owned by a
claimant subject to property taxation pursuant to Part 13
(commencing with Section 5800) of Division 1 and located on land that
is owned or rented by the claimant. 
   (b) As used in this chapter in reference to ownership interests in
residential dwellings, "owned" includes (1) the interest of a vendee
in possession under a land sale contract provided that the contract
or memorandum thereof is recorded and only from the date of
recordation of the contract or memorandum thereof in the office of
the county recorder where the residential dwelling is located, (2)
the interest of the holder of a life estate provided that the
instrument creating the life estate is recorded and only from the
date of recordation of the instrument creating the life estate in the
office of the county recorder where the residential dwelling is
located, but "owned" does not include the interest of the holder of
any remainder interest or the holder of a reversionary interest in
the residential dwelling, (3) the interest of a joint tenant or a
tenant in common in the residential dwelling or the interest of a
tenant where title is held in tenancy by the entirety or a community
property interest where title is held as community property, and (4)
the interest in the residential dwelling in which the title is held
in trust, as described in subdivision (d) of Section 62, provided
that the Controller determines that the state's interest is
adequately protected.
   (c) For purposes of this chapter, the registered owner of a
mobilehome shall be deemed to be the owner of the mobilehome.
   (d) Except as provided in subdivision (c),  and Chapter 3
(commencing with Section 20625),  ownership must be
evidenced by an instrument duly recorded in the office of the county
where the residential dwelling is located.
   (e) "Residential dwelling" does not include any of the following:
   (1) Any residential dwelling in which the owners do not have an
equity of at least  20   30  percent of the
full value of the property as determined for purposes of property
taxation or at least 20   30  percent of
the fair market value as determined by the Controller and where the
Controller determines that the state's interest is adequately
protected. The  20-percent   30-percent 
equity requirement shall be met at the time the claimant or
authorized agent files an initial postponement claim and 
tenders to the tax collector the initial certificate of eligibility
described in Sections 20602, 20639.6, and 20640.6   for
each subsequent year of participation thereafter prior to the
Controller issuing payment as prescribed in Section 20602  .
   (2) Any residential dwelling in which the claimant's interest is
held pursuant to a contract of sale or under a life estate, unless
the claimant obtains the written consent of the vendor under the
contract of sale, or the holder of the reversionary interest upon
termination of the life estate, for the postponement of taxes and the
creation of a lien on the real property in favor of the state for
amounts postponed pursuant to this act.
   (3) Any residential dwelling on which the claimant does not
receive a secured tax bill.
   (4) Any residential dwelling in which the claimant's interest is
held as a possessory interest, except as provided in Chapter 3.5
(commencing with Section 20640). 
   (f) Notwithstanding subdivision (c) of Section 20584, houseboats
and floating homes, as defined by Section 20583.1, on which property
taxes are delinquent at the time the application for postponement
under this chapter is made, shall not be eligible for postponement.

   SEC. 21.    Section 20583.1 of the   Revenue
and Taxation Code   is amended to read: 
   20583.1.  For purposes of Section 20583, "residential dwelling"
 includes   shall not include  houseboats
and floating homes.
   SEC. 22.    Section 20584.1 is added to the 
 Revenue and Taxation Code   , to read:  
   20584.1.  The Controller shall prescribe a maximum annual
postponement loan amount. 
   SEC. 23.    Section 20585 of the   Revenue
and Taxation Code   is amended to read: 
   20585.  Postponement shall not be allowed under this chapter
 or Chapter 3 (commencing with Section 20625)  ,
Chapter 3.3 (commencing with Section 20639), or Chapter 3.5
(commencing with Section 20640) if household income exceeds either of
the following amounts:
   (a) For the 1976 calendar year or for any approved fiscal year
commencing within that calendar year, household income shall not
exceed twenty thousand dollars ($20,000).
   (b) For all subsequent calendar years and approved fiscal years,
postponement shall not be allowed under this chapter, Chapter
 3 (commencing with Section 20625), Chapter  3.3
(commencing with Section 20639), or Chapter 3.5 (commencing with
Section 20640) if household income exceeds an amount determined as
follows:
   (1) On or before March 1 of each year, the California Department
of Industrial Relations shall transmit to the Controller the
percentages of increase in the California Consumer Price Index for
all Urban Consumers and in the California Consumer Price Index for
Urban Wage Earners and Clerical Workers of December of the prior
calendar year over December of the preceding calendar year.
   (2) The Controller shall compute an inflation adjustment factor by
adding 100 percent to the larger of the California Consumer Price
Index percentage increases furnished pursuant to paragraph (1).
   (3) In 1978, the Franchise Tax Board shall multiply twenty
thousand dollars ($20,000) by the inflation adjustment factor to
determine the maximum allowable gross household income for the 1977
calendar year and for approved fiscal years commencing within that
calendar year. In 1979 and subsequent calendar years through and
including 1983, the Controller shall multiply the maximum allowable
household income determined for the preceding calendar year by the
inflation adjustment factor to determine the maximum allowable
household income for the applicable calendar year and approved fiscal
years commencing within that calendar year. In determining the
maximum allowable household income pursuant to this section, the
Controller shall round that amount to the nearest hundred dollar
amount.
   (c) For calendar year 1984 and subsequent calendar years and for
approved fiscal years commencing within those years, postponement
shall not be allowed under this chapter, Chapter  3
(commencing with Section 20626), Chapter  3.3 (commencing
with Section 20639), or Chapter 3.5 (commencing with Section 20640),
if household income exceeds an amount determined as follows:
   (1) For claimants who filed and qualified in the calendar year
1983 and for whom postponement has been allowed for each subsequent
calendar year up to and including the calendar year 2007, thirty-four
thousand dollars ($34,000). For these same claimants, for the
calendar year 2008 or for any approved fiscal year commencing within
that calendar year, household income shall not exceed thirty-five
thousand five hundred dollars ($35,500).
   (2) For all other claimants, for calendar years up to and
including 2006, household income shall not exceed twenty-four
thousand dollars ($24,000). For these same claimants, for the 2007
calendar year or for any approved fiscal year commencing within that
calendar year, household income shall not exceed thirty-one thousand
five hundred dollars ($31,500). For these same claimants, for the
2008 calendar year or for any approved fiscal year commencing within
that calendar year, household income shall not exceed thirty-five
thousand five hundred dollars ($35,500).
                                                       (3) (A) For
all claimants for the calendar year 2009 or for any approved fiscal
year commencing within that calendar year, postponement shall not be
allowed under this chapter, Chapter  3 (commencing with
Section 20626), Chapter  3.3 (commencing with Section
20639), or Chapter 3.5 (commencing with Section 20640), if household
income exceeds  thirty-nine   thirty-five 
thousand  five hundred  dollars  ($39,000) 
 ($35,500)  .
   (B) For the 2010 calendar year and each subsequent calendar year,
and for any approved fiscal year commencing within that calendar
year, the household income amount specified in subparagraph (A) shall
be adjusted for inflation, in accordance with an inflation factor
determined pursuant to paragraphs (1) and (2) of subdivision (b).
   SEC. 24.   Section 20586 of the   Revenue
and Taxation Code   is amended to read:
   20586.   (a)    For the purposes of Chapter 2
(commencing with Section 20581), Chapter  3 (commencing with
Section 20625), Chapter  3.3 (commencing with Section
20639), and Chapter 3.5 (commencing with Section 20640), only one
claimant per household each year shall be entitled to postponement.
When two or more individuals in a household are qualified as
claimants, they may determine who the claimant shall be. Such
decision is irrevocable. If the individuals are unable to agree, the
matter shall be determined by the Controller and his  or her
 decision shall be final. 
   (b) Except as provided in Section 16190 of the Government Code
and, notwithstanding any law, any amounts paid by the Controller in
the county during a calendar year pursuant to the property tax
postponement program together with any accrued interest shall be
repaid by the claimant to the state no later than June 30 of the year
following the expiration of the 10 year period. A claimant's
continued participation in the program shall be conditioned upon
compliance with this subdivision. 
   SEC. 25.    Section 20587 is added to the  
Revenue and Taxation Code   , to read:  
   20587.  (a) For the purposes of this chapter "income" means
adjusted gross income as defined in Section 17072 plus all of the
following cash items:
   (1) Public assistance and relief.
   (2) Nontaxable amount of pensions and annuities.
   (3) Social security benefits (except Medicare).
   (4) Railroad retirement benefits.
   (5) Unemployment insurance payments.
   (6) Veterans' benefits.
   (7) Exempt interest received from any source.
   (8) Gifts and inheritances in excess of three hundred dollars
($300), other than transfers between members of the household. Gifts
and inheritances include noncash items.
   (9) Amounts contributed on behalf of the contributor to a
tax-sheltered retirement plan or deferred compensation plan.
   (10) Temporary workers' compensation payments.
   (11) Sick leave payments.
   (12) Nontaxable military compensation as defined in Section 112 of
the Internal Revenue Code.
   (13) Nontaxable scholarship and fellowship grants as defined in
Section 117 of the Internal Revenue Code.
   (14) Nontaxable gain from the sale of a residence as defined in
Section 121 of the Internal Revenue Code.
   (15) Life insurance proceeds to the extent that the proceeds
exceed the expenses incurred for the last illness and funeral of the
deceased spouse of the claimant. "Expenses incurred for the last
illness" includes unreimbursed expenses paid or incurred during the
income calendar year and any expenses paid or incurred thereafter up
until the date the claim is filed. For purposes of this paragraph,
funeral expenses shall not exceed five thousand dollars ($5,000).
   (16) If an alternative minimum tax is required to be paid pursuant
to Chapter 2.1 (commencing with Section 17062) of Part 10, the
amount of alternative minimum taxable income (whether or not cash) in
excess of the regular taxable income.
   (17) Annual winnings from the California Lottery in excess of six
hundred dollars ($600) for the current year.
   (b) The total household income shall not include amounts deducted
for a net business loss, net rental loss, net capital loss, or other
net losses, amounts deducted for depreciation, or other noncash
expenses.
   (c) For purposes of Chapter 2 (commencing with Section 20581) and
Chapter 3.5 (commencing with Section 20640), total income shall be
determined for the calendar year ending immediately prior to the
commencement of the fiscal year for which postponement is claimed.

   SEC. 26.    Section 20588 is added to the  
Revenue and Taxation Code   , to read:  
   20588.  "Household income" means all income received by all
persons of a household while members of the household. In the case of
a nonresident claimant, "household income" also includes all income
of the claimant during the year without regard to source. 
   SEC. 27.    Section 20589 is added to the  
Revenue and Taxation Code   , to read:  
   20589.  (a) "Claimant" means an individual who is either of the
following:
   (1) For purposes of this chapter was either (1) 62 years of age or
older on the last day of the calendar year or approved fiscal year
designated in subdivision (b) or Section 20587, or (2) blind or
disabled, as defined in Section 12050 of the Welfare and Institutions
Code on the last day of the calendar year or approved fiscal year
designated in subdivision (b) of Section 20587, who was a member of
the household, and who was (1) the owner and occupier of a
residential dwelling on the last day of the year designated in
subdivision (b) or (c) of Section 20503, or (2) the renter of a
rented residence on or before the last day of the year designated in
subdivision (b) of Section 20503. An individual who qualifies as an
owner-claimant may not qualify as a renter-claimant for the same
year.
   (2) (A) For purposes of this chapter, Chapter 3.3 (commencing with
Section 20639), and Chapter 3.5 (commencing with Section 20640) was
a member of the household and either an owner-occupant, or a
possessory interestholder occupant, or a mobilehome owner-occupant,
as the case may be, of the residential dwelling as to which
postponement is claimed and who was 62 years of age or older by
December 31 of the fiscal year for which postponement is claimed.
   (B) For purposes of this chapter, Chapter 3.3 (commencing with
Section 20639), and Chapter 3.5 (commencing with Section 20640) was a
member of the household and an owner-occupant of the residential
dwelling as to which postponement is claimed and who was blind or
disabled, as defined in Section 12050 of the Welfare and Institutions
Code, at the time of application or on December 10 of the fiscal
year for which postponement is claimed, whichever is earlier.
   (b) Where amounts have been postponed for any given fiscal year
and the claimant continues to own and occupy the residential dwelling
on December 31 of the calendar year in which the fiscal year begins,
and the claimant sells the dwelling and buys a new residential
dwelling in this state on or before December 31 of the following
fiscal year and the new dwelling is the claimant's principal place of
residence, then in that event, the claimant shall be deemed to be a
qualified claimant for the purpose of this section. These regulations
shall become effective immediately upon filing with the Secretary of
State. 
   SEC. 28.    Section 20590 is added to the  
Revenue and Taxation Code   , to read:  
   20590.  "Household" includes the claimant and all other persons,
except bona fide renters, minors, or students (as defined by Section
151(c)(4) of the Internal Revenue Code), whose principal place of
residence is the residential dwelling of the claimant. 
   SEC. 29.   Section 20591 is added to the  
Revenue and Taxation Code   , to read:  
   20591.  (a) A claimant shall not lose his or her eligibility for
property tax postponement if he or she is temporarily confined to a
hospital or medical institution for medical reasons where the
residential dwelling was the principal place of residence of the
claimant immediately prior to the confinement.
   (b) For purposes of this section, "medical institution" means a
facility operated by, or licensed by, the United States, one of the
several states, a political subdivision of a state, the State
Department of Health Care Services, or exempt from such licensure
pursuant to subdivision (c) of Section 1312 of the Health and Safety
Code. 
   SEC. 30.    Section 20602 of the  Revenue
and Taxation Code   is repealed.  
   20602.  (a) Upon approval of a claim described in Section 20601,
the Controller may do either of the following:
   (1) Make payments directly to a lender, mortgage company, escrow
company, or county tax collector for the property taxes owed on
behalf of a qualified claimant. Payments may, upon appropriation by
the Legislature, be made out of the amounts otherwise appropriated
pursuant to Section 16100 of the Government Code that are secured by
a lien and obligation as specified by Article 1 (commencing with
Section 16180) of Chapter 5 of Division 4 of the Government Code.
   (2) Issue to the claimant a certificate of eligibility, which
shall consist of two parts, both of which shall contain the name of
the claimant, the address of the residential dwelling on which the
claimant has applied for property tax postponement, and that other
information and in that form as the Controller shall prescribe. In
the event that that residential dwelling is located in a chartered
city which levies and collects its own taxes, the Controller shall
issue a duplicate certificate of eligibility to pay all or any part
of the property taxes appearing on that city's tax bill. Each part of
a certificate of eligibility shall be payable in an unspecified
amount and shall contain statements to identify the property tax
installment to which it may be applied.
   (b) The Controller shall prescribe the form of the certificates of
eligibility to pay all delinquent taxes and assessments authorized
by this chapter.
   Upon or accompanying each certificate shall be a brief statement
explaining that (1) those taxpayers whose property taxes are paid by
a lender via an impound, trust or other similar account should enter
the total amount of each installment on their respective certificates
and mail both certificates to the tax collector at the same time,
and (2) those taxpayers will receive a refund check from the county
or city in the amount they entered on each certificate, within 30
days following the date on which the installment is paid by the
lender or the certificate of eligibility is received by the tax
collector, whichever is later, and (3) the intent of this procedure
is to make sure the taxes on the claimant's dwelling are not paid
twice.
   (c) When a certificate of eligibility has been signed by the
claimant, his or her spouse, or authorized agent and countersigned by
the person authorized to collect property taxes or assessments for
the local agency, such certificate shall constitute a written promise
on the part of the State of California to pay the sum of money
specified therein and such signed and countersigned certificate shall
be deemed a negotiable instrument for the sole purpose of the
payment of property taxes owing in the name of the claimant or his or
her spouse for purposes of all laws of this state.
   (d) A certificate of eligibility shall be valid for the duration
prescribed thereon by the Controller.
   (e) The Controller shall issue certificates of eligibility claims
approved on or before September 30 between October 15 and November 1
of the fiscal year for which postponement is claimed. Certificates
for claims approved after September 30 shall be issued at such times
as the Controller determines will best implement the purpose of this
chapter.
   (f) The Controller shall prescribe the manner in which a claimant
eligible under this chapter, who has been issued a certificate of
eligibility which is lost or destroyed prior to being filed with the
local agency pursuant to subdivision (b) may obtain a duplicate copy
of said certificate as a replacement. (Under such conditions as may
be prescribed by the Controller, a duplicate copy shall be deemed as
having been filed with the local agency as of the date a claimant
requests issuance of such duplicate copy.) 
   SEC. 31.    Section 20602 is added to the  
Revenue and Taxation Code   , to read:  
   20602.  (a) Upon approval of a claim described in Section 20601,
the county tax collector shall provide verification that the "notice
of lien for postponed property taxes" has been filed in a manner
prescribed by the Controller and shall provide to the Controller the
amount of the claimant's taxes due.
   (b) Upon receipt of the verification required by subdivision (a),
the Controller shall issue a property tax postponement payment on
behalf of a qualified claimant in a manner prescribed by the
Controller.
   (c) The Controller shall be indemnified from any losses that
result from the inaccurate filing of the "notice of lien for
postponed property taxes" by the county tax collector, assessor, or
county recorder. 
   SEC. 32.    Section 20605 of the   Revenue
and Taxation Code   is amended to read: 
   20605.  (a) The postponement of property taxes pursuant to this
chapter shall not affect the obligation of a borrower to continue to
make payments to a lender with respect to an impound, trust, or other
type of account described in Section 2954 of the Civil Code which
was established prior to the effective date of subdivision (b).
   (b) Except where required by federal law or regulation and
notwithstanding Sections 7153.2 and 7153.8 of the Financial Code, or
in the case of a loan which is made, guaranteed, or insured by a
federal government lending or insuring agency requiring the borrower
to make payments to a lender with respect to an impound, trust, or
other type of account described in Section 2954 of the Civil Code, or
where this subdivision would impair the obligations of a loan
agreement executed prior to the effective date of this subdivision,
no lender shall require a borrower to maintain an impound, trust or
other type of account with regard to taxes once such borrower has
elected to postpone such taxes pursuant to this chapter and has first
submitted to such lender evidence of tax postponement. Any payments
made by such borrower, prior to the time of submission of such
evidence of tax postponement, to such an impound, trust or other type
of account with regard to taxes for any such period, if not
previously used in payment or partial payment of such taxes, shall be
refunded to such borrower within thirty days thereafter. 
   (c) (1) A mortgagee, trustee, or other person authorized to take
sale on real property due to the mortgagor's or trustor's failure to
pay property taxes shall not file notice of default for five years
following the initial authorization to take sale if the mortgagor or
trustor provides evidence of participation in the property tax
postponement program established pursuant to Section 16180 of the
Government Code.  
   (2) Notwithstanding subdivision (b), no lender shall require a
borrower to maintain an impound, trust, or other type of account with
regard to taxes for a borrower who provides evidence of
participation in the property tax deferral program.  
   (3) Written confirmation from the Controller identifying the
individual as a participant in the program shall be considered
evidence of participation in the property tax postponement program
for purposes of this section. The Controller shall provide written
notice to individuals that participated in the program during 2008 or
2009 for use as evidence of participation. 
   SEC. 33.   Section 20621 of the   Revenue
and Taxation Code   is amended to read:
   20621.  Each claimant applying for postponement under Article 2
(commencing with Section 20601) shall file a claim under penalty of
perjury with the Controller on a form supplied by the Controller. The
claim shall contain all of the following:
   (a) Evidence acceptable to the Controller that the person was a
"senior citizen claimant" or a "blind or disabled claimant."
   (b) A statement showing the household income for the period set
forth in Section 20503.
   (c) A statement describing the residential dwelling in a manner
that the Controller may prescribe.
   (d) The name of the county in which the residential dwelling is
located and the address of the residential dwelling.
   (e) The county assessor's parcel number applicable to the property
for which the claimant is applying for the postponement of property
taxes.
   (f)  (1)    Documentation
evidencing the current existence of any abstract of judgment, federal
tax lien, or state tax lien filed or recorded against the applicant,
and any recorded mortgage or deed of trust that affects the subject
residential dwelling, for the purpose of determining that the
claimant possesses a  20-percent   30-percent
 equity in the subject residential dwelling as required by
paragraph (1) of subdivision  (b)   (e)  of
Section 20583. 
   (2) Actual costs, not in excess of fifty dollars ($50), paid by
the claimant to obtain the documentation shall, in the event the
Controller issues a certificate of eligibility, reduce the amount of
the lien for the year, but not the face amount of the payment
prescribed in Section 16180 of the Government Code.  
   (g) Authorization for the Controller to pay the claimant's
property taxes, if approved, and promising repayment of the loan as
provided by Section 16190 of the Government Code.  
   (g) 
    (h)  Other information required by the Controller to
establish eligibility.
   SEC. 34.    Section 20622 of the   Revenue
and Taxation Code   is amended to read: 
   20622.   (a)    The claim for postponement shall
be filed after  May 15   July 1  of the
calendar year in which the fiscal year for which postponement is
claimed begins, and on or before  December 10  
September 30  of that fiscal year; if  December 10th
  September 30  falls on Saturday, Sunday, or a
legal holiday, the date is extended to the next business day. 
Any claim for postponement filed after September 30, and on or before
June 30, may be considered for good cause.  
   (b) Any claims for postponement for the 2009-10 fiscal year shall
be filed after the effective date of the act adding this section and
on or before April 9, 2010. 
   SEC. 35.    Section 20623 of the   Revenue
and Taxation Code   is repealed.  
   20623.  No person shall file a claim for postponement under this
chapter on or after the effective date of the act adding this
section, and the Controller shall not accept applications for
postponement under this chapter on or after that date. 
   SEC. 36.    Chapter 3 (commencing with Section 20625)
of Part 10.5 of Division 2 of the   Revenue and Taxation
Code   is repealed. 
   SEC. 37.    Section 20639.1 of the   Revenue
and Taxation Code   is amended to read: 
   20639.1.  (a) Unless the context otherwise requires or unless
otherwise provided in this chapter, the definitions given in Chapter
 1 (commencing with Section 20501) and Chapter  2
(commencing with Section 20581) shall govern the construction of this
chapter.
   (b) Unless the context otherwise dictates or unless otherwise
provided in this chapter, the provisions of Chapter 1 (commencing
with Section 101) and Chapter 2 (commencing with Section 155) of Part
1 of Division 1 of this code, Section 2931c of the Civil Code,
Chapter 4.5 (commencing with Section 14735) of Part 5.5 of Division 3
of Title 2 of the Government Code, Chapter 6 (commencing with
Section 16180) of Part 1 of Division 4 of Title 2 of the Government
Code, Division 13 (commencing with Section 17000) of the Health and
Safety Code, and Division 9 (commencing with Section 9101) of the
Commercial Code shall be applicable to property tax postponements
made pursuant to this chapter.
   SEC. 38.    Section 20639.6 of the   Revenue
and Taxation Code  is amended to read: 
   20639.6.  (a) Upon receipt of the information described in Section
20639.9, the Controller shall determine whether the state's interest
would be adequately protected if postponement is granted, and, if
so, the Controller shall issue  to the claimant a certificate
of eligibility containing the name of the claimant, address of the
residential dwelling on which the claimant has applied for property
tax postponement, and such other information and in such form as the
Controller shall prescribe. In the event that the residential
dwelling is located in a chartered city which levies and collects its
own taxes, the Controller shall issue a duplicate certificate of
eligibility to pay all or any part of property taxes appearing on the
city's tax bill   a property tax postponement payment
as provided by Section 20602  .
   (b) The Controller shall  forward to the Department of
Housing and Community Development a notice of lien notifying the
department that the mobilehome described in the statement has been
approved for property tax postponement. The notice shall be in the
form and contain the information prescribed by the Controller
  secure a lien against the mobilehome that is
sufficient to secure the state's interest in loan repayment  .

   (c) The department, upon receipt of the notice, shall amend the
permanent title record of the mobilehome to record the fact that
postponement has been approved.  
   (d) The Controller shall prescribe the form of certificates of
eligibility to pay all taxes and assessments authorized by this
chapter.  
   Upon or accompanying the certificates shall be a brief statement
explaining that, those taxpayers whose property taxes are paid by a
lender via an impound, trust, or other similar account shall enter
the total amount of each installment on the certificates and mail the
certificates to the tax collector and that they will receive a
refund check from the county or city in the amount they entered on
the certificate, within 30 days following the date on which the
installment is paid by the lender or the certificate of eligibility
is received by the tax collector, whichever is later. 

   (e) When a certificate of eligibility has been signed by the
claimant, the claimant's spouse, or authorized agent and
countersigned by the person authorized to collect property taxes or
assessments or the local agency, the certificate shall constitute a
written promise on the part of the State of California to pay the sum
of money specified therein and the signed and countersigned
certificate shall be deemed a negotiable instrument for the sole
purpose of the payment of property taxes owing in the name of the
claimant or the claimant's spouse for purposes of all laws of this
state.  
   (f) A certificate of eligibility shall be valid for the duration
prescribed thereon by the Controller.  
   (g) The Controller shall issue certificates of eligibility at the
times the Controller determines shall best implement the purpose of
this chapter.  
   (h) The Controller shall prescribe the manner in which a claimant
eligible under this chapter, who has been issued a certificate of
eligibility which is lost or destroyed prior to being filed with the
local agency may obtain a duplicate copy of the certificate as a
replacement. Under the conditions which may be prescribed by the
Controller, a duplicate copy shall be deemed as having been filed
with the local agency as of the date a claimant requests issuance of
the duplicate copy. 
   SEC. 39.    Section 20639.8 of the   Revenue
and Taxation Code   is amended to read: 
   20639.8.  The claim for postponement shall be filed  after
May 15 of the calendar year in which the fiscal year for which
postponement is claimed begins, and on or before December 10 of such
fiscal year   pursuant to Section 20622  .
   SEC. 40.    Section 20639.9 of the   Revenue
and Taxation Code   is amended to read: 
                                  20639.9.  Each claimant applying
for postponement under this chapter shall file a claim under penalty
of perjury  with the Controller on a form supplied by the
Controller. The claim shall contain all of the following information
  as provided by Section 20621. A claim filed under this
chapter shall also include both of the following  : 
   (a) Evidence acceptable to the Controller that the person is a
senior citizen claimant.  
   (b) A statement showing the household income for the period set
forth in Section 20503.  
   (c) A statement describing the residential dwelling in the manner
the Controller may prescribe.  
   (d) The name of the county in which the residential dwelling is
located and the address of the residential dwelling. 

   (e) The county assessor's parcel number applicable to the property
for which the claimant is applying for the postponement of property
taxes.  
   (f) 
   (a)  A copy of the Certificate of Title issued by the
Department of Housing and Community Development or the certificate of
ownership issued by the Department of Motor Vehicles. 
   (g) 
    (b)  A copy of the registration card issued by the
Department of Housing and Community Development or the Department of
Motor Vehicles. 
   (h) Other information required by the Controller to establish
eligibility. 
   SEC. 41.    Section 20639.11 of the  
Revenue and Taxation Code   is amended to read: 
   20639.11.  All amounts postponed pursuant to this chapter shall
 be due if any of the following occurs:  become
due and payable as provided by Sections 16180 and 16190 of the
Government Code.  
   (a) The claimant ceases to occupy the residential dwelling as the
principal place of residence, sells or otherwise disposes of his or
her mobilehome.  
   (b) The claimant dies. However, if the surviving spouse or another
person eligible to postpone pursuant to this chapter continues to
occupy the mobilehome, then the postponed amounts shall not be due
unless such person dies or ceases to occupy the residential dwelling.
 
   (c) The failure of a claimant to perform those acts required by
the legal owner or junior lienholder.  
   (d) The claimant allows any subsequent taxes to remain unpaid or
to be transferred to the unsecured roll.  
   (e) Postponement was erroneously allowed because eligibility
requirements were not met. 
   SEC. 42.    Section 20640.1 of the   Revenue
and Taxation Code  is amended to read: 
   20640.1.  (a) Unless the context otherwise requires or unless
otherwise provided in this chapter, the definitions given in Chapter
 1 (commencing with Section 20501) and Chapter  2
(commencing with Section 20581) shall govern the construction of this
chapter.
   (b) Unless the context otherwise dictates or unless otherwise
provided in this chapter, the provisions of Chapter  1 and
Chapter 2 of this code   2 (commencing with Section
20581)  , Civil Code Section 2924b, Civil Code Section 2931c,
Chapter 4.5 (commencing with Section 14735) of Part 5.5 of Division 3
of Title 2 of the Government Code, Chapter 6 (commencing with
Section 16180) of Part 1 of Division 4 of Title 2 of the Government
Code shall be applicable to property tax postponements made pursuant
to this chapter.
   SEC. 43.    Section 20640.3 of the  Revenue
and Taxation Code   is amended to read: 
   20640.3.  A claimant is an individual who  does all of the
following  :
   (a) Holds a right to a possessory interest pursuant to a validly
recorded instrument conveying such possessory interest for a term of
years no less than 45 years beyond the last day of the calendar year
ending immediately prior to the fiscal year for which taxes are
initially  postponed;   postponed. 
   (b) Occupies as a principal place of residence the residential
dwelling affixed to such possessory interest real property on the
last day of the year designated  in Section 20503(c) of this
code;   in subdivision (c) of Section 20503. 
   (c)  Is 62 years of age or older on or before December 31
of the fiscal year for which postponement is claimed  
Satisfies the requirements specified in paragraph (1) or (2) of
subdivision (a) of Section 20589  .
   SEC. 44.    Section 20640.4 of the   Revenue
and Taxation Code   is amended to read: 
   20640.4.  (a) Subject to the limitations provided in Chapter
 1 (commencing with Section 20501), Chapter  2
(commencing with Section 20581), or this chapter, a claimant may file
with the Controller, a claim for postponement of a sum equal to, but
not exceeding the amount of property taxes, for the fiscal year for
which the claim is made.
   (b) Upon verification of the eligibility requirements set forth in
Section 20640.9 the Controller shall mail the claimant a Notice of
Election to Postpone which shall be in the form and contain such
information as the Controller may prescribe. Accompanying the notice
shall be a statement explaining that in order for the claimant to
postpone all or part of the property taxes, the Notice of Election to
Postpone must be mailed to the Controller with a copy of the
instrument creating the possessory interest, said copy to be
certified by the county recorder of the county in which such real
property is located. Where a memorandum of lease has been recorded in
lieu of such instrument, a certified copy of said memorandum shall
accompany the copy of the instrument creating the possessory
interest.
   (c) (1) Except as provided in this section, any possessory
interest or improvement on which property taxes are delinquent at the
time the application for postponement under this chapter is made or
on which any other property tax or special assessment imposed by a
special district or other tax code area are delinquent at the time
the application for postponement under this chapter is made shall not
be eligible for postponement.
   (2) For 1978-79 and thereafter, any taxes or assessments which
became delinquent after the claimant was 62 and before a lien is
established pursuant to Section 16182 of the Government Code shall
not disqualify an otherwise eligible claimant for postponement under
this chapter. An application to postpone taxes for 1978-79 or
thereafter also constitutes an application for postponement of all
such delinquent taxes and assessments, together with any penalties,
interest, fees, or other charges resulting from such delinquency and
such amounts shall, unless otherwise paid by the claimant, be paid
out of the amount appropriated by Section 16100 of the Government
Code and shall be added to and become part of the obligation secured
by the lien provided by Section 16182 of the Government Code.
   (d) The Controller shall mail to claimant for due execution the
appropriate security instrument for claimant's form of lease,
including the consent to assignment required by Section 20640.5(b).
   SEC. 45.    Section 20640.6 of the  Revenue
and Taxation Code   is amended to read: 
   20640.6.  (a)  Upon receipt of the information described in
Section 20640.4 and Section 20640.5, the  State 
Controller shall determine whether the state's interest would be
adequately protected if postponement is granted, and if so, shall
issue  to the claimant a certificate of eligibility
containing the name of claimant, address of the residential dwelling
on which the claimant has applied for property tax postponement, and
any other information and in the form as the State Controller shall
prescribe. In the event that the residential dwelling is located in a
chartered city which levies and collects its own taxes, the
Controller shall issue a duplicate certificate of eligibility to pay
all or any part of property taxes appearing on the city's tax bill
  a property tax postponement payment as provided by
Section 20602  .
   (b) The Controller shall  cause to be recorded with the
county recorder of the county in which the real property is located,
a copy of any instrument creating a security interest, which shall
include applicable consent forms, in favor of the state. The
instrument shall contain a legal description of the real property
subject to the possessory interest; and, if the legal description of
the possessory interest describes an area less than the entire
property ownership, the notice or document shall also contain a
reference to the record of the acquisition instrument to the entire
parcel from which the possessory interest was created. The priority
of the security interest shall be as of the date of recordation
  secure a lien against the possessory interest that is
sufficient to secure the state's interest in loan repayment  .

   (c) The Controller shall prescribe the form of certificates of
eligibility to pay all delinquent taxes and assessments authorized by
this chapter.  
   Upon or accompanying each certificate shall be a brief statement
explaining that (1) those taxpayers whose property taxes are paid by
a lender via an impound, trust or other similar account should enter
the total amount of each installment on the certificates and mail the
certificates to the tax collector and (2) those taxpayers will
receive a refund check from the county or city in the amount they
entered on the certificate, within 30 days following the date on
which the installment is paid by the lender or the certificate of
eligibility is received by the tax collector, whichever is later.
 
   (d) When a certificate of eligibility has been signed by the
claimant, his or her spouse, or authorized agent and countersigned by
the person authorized to collect property taxes or assessments for
the local agency, the certificate shall constitute a written promise
on the part of the State of California to pay the sum of money
specified therein and the signed and countersigned certificate shall
be deemed a negotiable instrument for the sole purpose of the payment
of property taxes owing in the name of the claimant or his or her
spouse for purposes of all laws of this state.  
   (e) A certificate of eligibility shall be valid for the duration
prescribed thereon by the Controller.  
   (f) The Controller shall issue certificates of eligibility at such
times as the Controller determines will best implement the purpose
of this chapter.  
   (g) The Controller shall prescribe the manner in which a claimant
eligible under this chapter, who has been issued a certificate of
eligibility which is lost or destroyed prior to being filed with the
local agency may obtain a duplicate copy of the certificate as a
replacement. (Under conditions as may be prescribed by the
Controller, a duplicate copy shall be deemed as having been filed
with the local agency as of the date a claimant requests issuance of
a duplicate copy.) 
   SEC. 46.    Section 20640.8 of the   Revenue
and Taxation Code   is amended to read: 
   20640.8.  The claim for postponement shall be filed  after
May 15 of the calendar year in which the fiscal year for which
postponement is claimed begins, and on or before December 10 of such
fiscal year. If December 10th falls on Saturday, Sunday or a legal
holiday, the date is extended to the next business day  
pursuant to Section 20622  .
   SEC. 47.    Section 20640.9 of the   Revenue
and Taxation Code   is amended to read: 
   20640.9.  Each claimant applying for postponement under this
chapter shall file a claim under penalty of perjury  with the
Controller on a form supplied by the Controller. The claim shall
contain:   pursuant to Section 20621.  
   (a) Evidence acceptable to the Controller that the person was a
"senior citizen claimant." 
   (b) A statement showing the household income for the period set
forth in Section 20503.  
   (c) A statement describing the residential dwelling in such manner
as the Controller may prescribe.  
   (d) The name of the county in which the residential dwelling is
located and the address of the residential dwelling. 

   (e) The county assessor's parcel number applicable to the property
for which the claimant is applying for the postponement of property
taxes.  
   (f) Other information required by the State Controller to
establish eligibility. 
   SEC. 48.    Section   20640.11 of the 
 Revenue and Taxation Code  is amended to read: 
   20640.11.  All amounts postponed pursuant to this chapter shall
 be due if any of the following occurs:   become
due and payable as provided by Sections 16180 and 16190 of the
Government Code.  
   (a) The claimant ceases to occupy the residential dwelling as the
principal place of residence, sells or otherwise disposes of his
possessory interest, or the possessory interest agreement expires by
its terms.  
   (b) The claimant dies. However, if the surviving spouse or another
person eligible to postpone pursuant to this chapter continues to
occupy the residential dwelling, then the postponed amounts shall not
be due unless such person dies, or ceases to occupy the residential
dwelling.  
   (c) The failure of the claimant, the fee title owner, or any owner
of a prior recorded possessory interest to perform those acts
required by a security interest holder which is senior to the state's
security interest for postponed amounts.  
   (d) Postponement was erroneously allowed because eligibility
requirements were not met. 
   SEC. 49.    Section 20641 of the   Revenue
and Taxation Code   is amended to read: 
   20641.  Forms filed pursuant to this part shall not be under oath
but shall contain, or be verified by, a written declaration that they
are made under the penalty of perjury. All forms filed pursuant to
Chapter 1 (commencing with Section 20501) shall require such
information as the Franchise Tax Board may from time to time
prescribe, and shall be filed with the Franchise Tax Board. The
Franchise Tax Board shall prepare blank forms for the claimant and
shall distribute them throughout the state and furnish them upon
application. All forms filed pursuant to Chapter 2 (commencing with
Section 20581), Chapter  3 (commencing with Section 20625),
Chapter  3.3 (commencing with Section 20639), or Chapter 3.5
(commencing with Section 20640), shall require such information as
the Controller may from time to time prescribe, shall be filed with
the Controller, and the Controller shall prepare such blank forms for
the claimant and shall distribute them throughout the state and
furnish them upon application.
   SEC. 50.    Section 20643 of the   Revenue
and Taxation Code   is amended to read: 
   20643.  If any claimant fails or refuses to furnish any
information requested in writing by the Franchise Tax Board, pursuant
to this part, Chapter 1 (commencing with Section 20501), or by the
Controller, pursuant to Chapter 2 (commencing with Section 20581),
Chapter  3 (commencing with Section 20625), Chapter 
3.3 (commencing with Section 20639), or Chapter 3.5 (commencing with
Section 20640) or files a fraudulent claim, the assistance or
postponement authorized by this part shall be disallowed.
   SEC. 51.    Section 20648 is added to the  
Revenue and Taxation Code   , to read:  
   20648.  For the 2009-10 and 2010-11 fiscal years, if a
postponement claim is filed under Chapter 2 (commencing with Section
20581), Chapter 3.3 (commencing with Section 20639), or Chapter 3.5
(commencing with Section 20640), the tax collector may cancel any
delinquent penalties and interest owed by the claimant for those
fiscal years.  
  SECTION 1.    Section 470.5 of the Business and
Professions Code is amended to read:
   470.5.  (a) On and after January 1, 2006, as described in Section
68085.1 of the Government Code, the Administrative Office of the
Courts shall make monthly distributions from superior court filing
fees for the support of dispute resolution programs under this
chapter in each county that has acted to establish a program. The
amount distributed in each county shall be equal to the following:
   (1) From each first paper filing fee collected by the court as
provided under Section 70611 or 70612, subdivision (a) of Section
70613, subdivision (a) of Section 70614, or Section 70670 of the
Government Code, and each first paper or petition filing fee
collected by the court in a probate matter as provided under Section
70650, 70651, 70652, 70653, or 70655 of the Government Code, the same
amount as was required to be collected for the support of dispute
resolution programs in that county as of December 31, 2005, when a
fee was collected for the filing of a first paper in a civil action
under Section 26820.4 of the Government Code.
   (2) From each first paper filing fee in a limited civil case
collected by the court as provided under subdivision (b) of Section
70613 or subdivision (b) of Section 70614 of the Government Code, and
each first paper or petition filing fee collected by the court in a
probate matter as provided under Section 70654, 70656, or 70658 of
the Government Code, the same amount as was required to be collected
for the support of dispute resolution programs in that county as of
December 31, 2005, when a fee was collected for the filing of a first
paper in a civil action under Section 72055 of the Government Code
where the amount demanded, excluding attorney's fees and costs, was
ten thousand dollars ($10,000) or less.
   (b) Distributions under this section shall be used only for the
support of dispute resolution programs authorized by this chapter.
The county shall deposit the amounts distributed under this section
in an account created and maintained for this purpose by the county.
Records of these distributions shall be available for inspection by
the public upon request.
   (c) After January 1, 2006, a county that does not already have a
distribution from superior court filing fees under this section and
that establishes a dispute resolution program authorized by this
chapter may approve a distribution under this section. A county that
already has a distribution under this section may change the amount
of the distribution. The total amount to be distributed for the
support of dispute resolution programs under this section may not
exceed ____ dollars ($____) per filing fee.
   (d) The county may make changes under subdivision (c) to be
effective January 1 or July 1 of any year, on and after January 1,
2006. The county shall provide the Administrative Office of the
Courts with a copy of the action of the board of supervisors that
establishes the change at least 15 days before the date that the
change goes into effect. 
                           ____ CORRECTIONS  Digest-- Page 3.  Digest
Key.
____