BILL NUMBER: AB 1718 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 9, 2010
AMENDED IN SENATE JULY 15, 2010
AMENDED IN ASSEMBLY MAY 28, 2010
AMENDED IN ASSEMBLY APRIL 27, 2010
AMENDED IN ASSEMBLY MARCH 11, 2010
INTRODUCED BY Assembly Member Blumenfield
(Coauthors: Assembly Members Huffman, Ma, Torres, and Yamada)
(Coauthors: Senators Alquist and Correa)
FEBRUARY 2, 2010
An act to amend Sections 16181, 16182, 16183, 16184,
16185, 16186, 16190, 16191, 16192, 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, 3698.5, 3698.7,
3793.1, 4671, 4671.3, 4672.3, 4673, 4673.1, 4674, 4703, 4703.2,
20503, 20505, 20542, 20582, 20583, 20583.1, 20585, 20586, 20605,
20621, 20622, 20640.1, 20640.3, 20640.4, 20640.6, 20640.8, 20640.9,
20640.11, 20641, 20641.5, 20643, 20645.5, and 20645.6 of, to add
Sections 20584.1, 20587, 20588, 20589, 20590, and 20591 to, to repeal
Section 20623 of, to repeal Chapter 3 (commencing with Section
20625) and Chapter 3.3 (commencing with Section 20639) 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. An act to amend Section 53684
of, and to add Chapter 11 (commencing with Section 30500) to Division
3 of Title 3 of, the Government Code, relating to taxation, and
declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 1718, as amended, Blumenfield. Taxation: property tax
postponement. deferment.
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. By
increasing the duties of local officials to administer the program,
this bill would impose a state-mandated local program. This bill
would require all sums paid by the Controller to be secured by a
lien, which has the same priority as a county tax lien, as described.
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, 2012, as provided. This bill would require
property tax postponement loan repayments, for all property tax
postponement loans made after February 20, 2009, 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 from the date on which the property taxes became
delinquent, if the mortgagor or trustor provides evidence of
participation in the property tax postponement program, as specified.
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 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.
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.
The Senior Citizens Mobilehome Property Tax Postponement Law
authorizes a mobilehome 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.
This bill would establish the County Deferred Property Tax Program
for Senior Citizens and Disabled Citizens, authorize a county to
elect to participate in the program by adopting a resolution
indicating the county's intention to participate in and administer
the program, and specify that the requirements of a county or county
officials set forth in the bill are conditioned upon the county's
passage of the above-described resolution.
This bill would authorize a claimant, as defined, upon verifying a
county's participation in the program, to apply, within a specified
filing period, to the county to participate in the program. The bill
would require the county treasurer, or another appropriate county
official, to review the claimant's application for program
participation, as specified, and, if the claimant is eligible, and if
there are sufficient funds within the county's Property Tax Deferral
Fund, which this bill would require a participating county to
establish within its treasury, to (1) defer property taxes on the
claimant's residential dwelling for that fiscal year, (2) issue a
subvention payment to that county's general fund, equivalent to the
amount of the deferred property taxes, from the county's Property Tax
Deferral Fund, and (3) apportion that subvention payment in the same
manner as if the property taxes had been paid. The bill would
authorize the county treasurer of a participating county, if he or
she makes a specified determination, upon the adoption of a specified
resolution by that county's board of supervisors, to deposit
specified funds in the county treasury for the purpose of investment
of those funds in the county's Property Tax Deferral Fund.
This bill would require the amount of property taxes deferred,
plus any interest accrued thereon, to be secured by a county property
tax lien, as specified. The bill would also require the lien to be
evidenced by a notice of lien, and various county officials to
process and record the notice of lien, as specified. The bill would
require a participating county to charge a claimant a specified
adjusted rate of interest on the amount owed for the deferment of
property taxes. The bill would require the amount secured by the lien
to be increased to reflect the accrual of interest on the property
taxes deferred, or decreased by the amount of any payment made to
reduce the amount secured by the lien. The bill would provide
procedures for the release of the lien if the obligation is paid in
full or otherwise discharged, and would require all amounts owed by a
claimant under the program to become due immediately under specified
circumstances.
This bill would authorize a participating county to charge a fee
to the claimant to cover the actual costs of administering the
program, and would require the fee proceeds to be deposited in an
account within the county's Property Tax Deferral Fund, to be used
exclusively for those administration costs. The bill would specify
that costs to foreclose on a residential dwelling for which property
taxes have been deferred under the program are administrative costs.
The bill would prohibit a mortgagee, trustee, or other person
authorized to take sale on the real property for which property taxes
are deferred due to the failure to pay property taxes from filing a
notice of default based solely on the failure to pay property taxes
if the mortgagor or trustor provided the mortgagee, trustee, or other
person authorized to take sale, evidence of the mortgagor's or
trustor's participation in the Senior Citizens and Disabled Citizens
Property Tax Postponement Program during the 2008-09 fiscal year. The
bill would require the Controller to provide written notice to
individuals that participated in the program during 2008, 2009, or
the 2008-09 fiscal year for use as written confirmation of that
participation.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: majority 2/3 . Appropriation:
yes no . 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. Chapter 11 (commencing with Section 30500)
is added to Division 3 of Title 3 of the Government Code
, to read:
CHAPTER 11. COUNTY DEFERRED PROPERTY TAX PROGRAM FOR SENIOR
CITIZENS AND DISABLED CITIZENS
Article 1. General Provisions and Definitions
30500. This chapter shall be known and may be cited as the County
Deferred Property Tax Program for Senior Citizens and Disabled
Citizens.
30501. Unless the context requires otherwise, the definitions set
forth in this article shall govern the construction of this chapter.
30502. (a) "Claimant" means an owner of a residential dwelling,
as defined in Section 30508, who applies to a participating county
for deferment of property taxes pursuant to this chapter and meets
all of the following requirements:
(1) Has an income, as defined in Section 30503, that does not
exceed thirty-five thousand five hundred dollars ($35,500).
(2) Has (A) attained eligibility for full Social Security benefits
as of the last day of the filing period for that fiscal year, or (B)
is blind or disabled, as defined in Section 12050 of the Welfare and
Institutions Code.
(3) Has equity of at least 20 percent of the full assessed value
of the residential dwelling, as determined for purposes of ad valorem
property taxation, or at least 20 percent of the fair market value,
as determined by the county assessor or tax collector, sufficient to
protect the county's interest in any residential dwelling after
deferment.
(b) Only one claimant per residential dwelling may have property
taxes deferred under this chapter at any one time.
(c) A claimant shall apply to participate in the program in each
year that he or she seeks to defer property taxes under the program.
(d) The claimant may be required to furnish evidence of his or her
ongoing eligibility in order to continue participation in the
program in a subsequent year.
(e) If the claimant fails or refuses to furnish any information
requested in writing by the county pursuant to this chapter, or files
a fraudulent claim for deferment under this chapter, any county
obligation to defer property taxes under this chapter shall be null
and void.
30503. (a) "Income" means adjusted gross income, as defined in
Section 17072 of the Revenue and Taxation Code, plus all of the
following cash items:
(1) Amounts contributed on behalf of the contributor to a
tax-sheltered retirement plan or deferred compensation plan.
(2) Annual winnings from the California Lottery in excess of six
hundred dollars ($600) in the current calendar year.
(3) Exempt interest received from any source.
(4) Gifts and inheritances in excess of three hundred dollars
($300), other than transfers between members of the household. Gifts
and inheritances shall include noncash items.
(5) 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" shall include unreimbursed expenses paid or incurred during
the income calendar year and any expenses paid or incurred thereafter
up until the day the claim is filed. For purposes of this paragraph,
funeral expenses shall not exceed five thousand dollars ($5,000).
(6) Nontaxable amount of any pensions and annuities.
(7) Nontaxable gain from the sale of a residence, as defined in
Section 121 of the Internal Revenue Code.
(8) Nontaxable military compensation as defined in Section 112 of
the Internal Revenue Code.
(9) Nontaxable scholarship and fellowship grants as defined in
Section 117 of the Internal Revenue Code.
(10) Public assistance and relief.
(11) Railroad retirement benefits.
(12) Sick leave payments.
(13) Social Security benefits (not including Medicare benefits).
(14) Temporary workers' compensation payments.
(15) Unemployment insurance payments.
(16) Veterans' benefits.
(17) If an alternative minimum tax is required to be paid pursuant
to Chapter 2.1 (commencing with Section 17062) of Part 10 of the
Revenue and Taxation Code, the amount of the alternative minimum
taxable income, regardless of whether or not that amount is held in
cash, in excess of the regular taxable income otherwise applicable.
(b) Net business loss, net rental loss, net capital loss, or other
net losses, amounts deducted for depreciation, or other noncash
expenses shall not be deducted in calculating adjusted gross income
for purposes of this section.
(c) For purposes of this chapter, income shall be determined for
the calendar year that ends within the fiscal year for which
deferment is claimed pursuant to this chapter.
30504. (a) "Owner of a residential dwelling" includes all of the
following:
(1) An individual with an ownership interest of a vendee, who is
in possession of the residential dwelling 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 of a participating
county in which the residential dwelling is located.
(2) An individual with an ownership interest of a holder of a life
estate in the residential dwelling, provided that the instrument
creating the life estate is recorded, and only from the date of
recordation of that instrument in the office of the county recorder
of a participating county in which the residential dwelling is
located.
(3) If the residential dwelling is located within a participating
county, an individual with a joint-tenant or tenant-in-common
ownership interest in the residential dwelling, or the interest of a
tenant where title is held in tenancy by the entirety or as community
property.
(4) An individual with an ownership interest in the residential
dwelling and the title to the residential dwelling, located within a
participating county, is held in trust.
(5) For purposes of this chapter, an individual who is the
registered owner of a mobilehome attached to a permanent foundation
and assessed as real property.
(b) An ownership interest described in subdivision (a) shall be
required to be evidenced by a duly recorded instrument in the office
of the county recorder of a participating county in which the
residential dwelling is located.
30505. "Participating county" means a county that makes an
election described in Section 30510.
30506. "Program" means the County Deferred Property Tax Program
for Senior Citizens and Disabled Citizens.
30507. "Property taxes" means ad valorem property taxes or
special assessments imposed upon a residential dwelling within the
year in which deferment is sought.
30508. (a) (1) "Residential dwelling" means a dwelling, and the
land surrounding that dwelling as is reasonably necessary for the use
of the dwelling as a home, occupied by the claimant as his or her
principal place of residence, and owned by any of the following:
(A) The claimant.
(B) The claimant and the claimant's spouse.
(C) The claimant and his or her parents, children (whether natural
or adopted), or grandchildren of either the claimant or the claimant'
s spouse.
(D) The claimant and the spouse of any parent, child (whether
natural or adopted), or grandchild of either the claimant or the
claimant's spouse.
(E) The claimant and another individual who resides in this state
and is eligible for deferment under this chapter.
(2) "Residential dwelling" shall also include all of the
following:
(A) A condominium that is assessed as real property for local
property tax purposes.
(B) A portion of a multidwelling or multipurpose building and the
portion of land upon which it is built.
(C) A mobilehome that is permanently attached to a permanent
foundation and assessed as real property for local property tax
purposes.
(b) "Residential dwelling" shall not include any of the following:
(1) Any dwelling in which the owner or owners do not have an
equity value of at least 20 percent of the full value of the
dwelling, as determined for property tax purposes, or an equity value
of at least 20 percent of the fair market value of the dwelling, as
determined by the county assessor or tax collector. "Equity value,"
as used in this subdivision, means the amount by which the fair
market value of the dwelling exceeds the total amount of liens or
other obligations against the property, as determined by the county
assessor or tax collector pursuant to his or her review of the
appropriate county records.
(2) Any dwelling in which the claimant's interest is a life estate
or is held pursuant to a contract of sale, unless the claimant
obtains the written consent of the holder of the reversionary
interest subject to the life estate, or the vendor under the contract
of sale, for the claimant to participate in the program with respect
to the dwelling.
(3) Any dwelling for which the claimant does not receive a secured
tax bill.
(4) Any dwelling in which the claimant's interest is held as a
possessory interest, except a life estate as described in paragraph
(2).
(5) Any houseboat or floating home.
Article 2. Deferment
30510. A county may elect to participate in the County Deferred
Property Tax Program for Senior Citizens and Disabled Citizens by
adopting a resolution indicating the county's intention to
participate in and to administer the program. All requirements of a
county or county officials set forth in this chapter are conditioned
upon the county's adoption of this resolution.
30511. (a) Upon verifying a county's participation in the
program, a claimant may submit his or her application to participate
in the program to the county, on a form to be created by the county
if it initiates its participation in the program pursuant to Section
30510.
(b) Upon a participating county's receipt of a claim for property
tax deferment under the program, submitted within the filing period
specified in Section 30512, the county treasurer, or other
appropriate county official, shall review the claimant's application
for program eligibility, consistent with the requirements specified
in Section 30502.
(c) If the claimant is eligible to participate in the program, and
if there are sufficient funds within the county's Property Tax
Deferral Fund, established pursuant to Section 30522, to defer
property taxes on the claimant's residential dwelling for that fiscal
year, the county treasurer or other appropriate county official,
shall do all of the following:
(1) Defer the property taxes due on the claimant's residential
dwelling and owing for that fiscal year.
(2) Issue a subvention payment to the county's general fund,
equivalent to the amount of the deferred property taxes, from the
county's Property Tax Deferral Fund.
(3) Apportion that subvention payment in the same manner as the
property taxes had they been paid.
(d) If the claimant's property taxes are deferred under the
program, the participating county shall not charge the claimant any
penalties, or undertake any collections actions with respect to the
underlying residential dwelling, unless authorized by this chapter.
(e) (1) The amount of property taxes deferred, plus any interest
accrued thereon, shall be secured by a county property tax lien, of
the priority described in Section 2192.1 of the Revenue and Taxation
Code, against the claimant's residential dwelling for which the
property taxes are deferred.
(2) In the case of a residential dwelling that is part of a larger
parcel taxed as a unit, including, but not limited to, a duplex,
farm, or multidwelling or multipurpose building, the lien shall be
against the entire tax parcel.
(f) The lien shall be evidenced by a notice of lien for deferred
property taxes executed by the county, and shall secure all sums
deferred and owing under this chapter, including amounts deferred
subsequent to the initial deferment. The notice of lien shall
include, but not be limited to, all of the following:
(1) The names of all record owners of the real property for which
the county has deferred property taxes under the program.
(2) A description of the real property for which property taxes
have been deferred.
(g) The identification number of the lien shall be recorded by the
county recorder, indexed in the county's Grantor Index to the names
of all record owners of the real property, and indexed in the county'
s Grantee Index.
30512. (a) The filing period for a claimant to apply to a
participating county for deferment under the program shall be from
October 1 to December 10 of each year.
(b) A participating county may require any information necessary
to process the claimant's application for deferment under the
program, whether through the county's application form or forms or
otherwise.
(c) Any form filed by a claimant under this chapter shall not be
under oath, but shall contain, or be verified by, a written
declaration that the information therein was provided under the
penalty of perjury.
(d) All forms supplied to the claimant shall include a statement
of the interest rate that will apply to the property taxes deferred
under the program.
(e) A county may grant a reasonable extension for filing a claim
if it determines that good cause for the extension exists. However,
no extension shall be granted beyond the termination of the fiscal
year for which deferment is requested.
30513. (a) Upon receipt of a notice of lien for deferred property
taxes from the county treasurer, the county assessor, or other
appropriate county official, shall immediately do all of the
following:
(1) Enter on the notice of lien a description of the real property
for which the taxes have been deferred.
(2) Enter on the notice of lien the names of all record owners of
the real property, as disclosed by the county assessor's records.
(3) Enter on the assessment records applicable to the property,
the fact that the taxes on the property have been deferred.
(b) Upon entry of the information required by subdivision (a), the
county assessor shall immediately forward the notice of lien to the
county recorder, who shall record the notice of lien.
(c) When the record reveals a change in the ownership status of
the real property subsequent to the date of entry of the deferral
information thereon, the county assessor shall notify the county
treasurer of the change in the ownership status in the manner
prescribed by the county treasurer.
(d) As of the recordation of the notice of lien pursuant to this
section, the lien for deferred property taxes shall be deemed to
impart constructive notice of the contents thereof to subsequent
purchasers, mortgagees, lessees, and any other lienholders.
30514. (a) A participating county shall reduce the amount secured
by the lien provided for in subdivision (e) of Section 30511 by the
amount of any payment received for that purpose.
(b) A participating county shall increase the amount secured by
that lien to reflect the accrual of interest on the property taxes
deferred, or any subsequent deferral of property taxes made with
respect to that residential dwelling pursuant to a claim of that
claimant.
30515. If at any time the amount of the obligation secured by the
lien for deferred property taxes is paid in full or is otherwise
discharged, the county treasurer, or other appropriate county
official, shall do all of the following:
(a) Execute and cause to be recorded by the county recorder a
release of the associated lien conclusively evidencing the
satisfaction of all amounts secured by the lien. The cost of
recording the release of the lien shall be added to, and become part
of the obligation secured by, the lien being released.
(b) Direct the county tax collector, or other appropriate county
official, to remove from the secured roll the information required to
be entered thereon by paragraph (1) of subdivision (a) of Section
2514 of the Revenue and Taxation Code with respect to the real
property described in the lien.
(c) Direct the county tax collector, or other appropriate county
official, to remove the information required to be entered into the
county assessment records by Section 2515 of the Revenue and Taxation
Code from the assessment records applicable to the real property
described in the lien.
30516. (a) If property taxes are deferred for a claimant and that
claimant subsequently dies, all amounts owed by that claimant
pursuant to this chapter shall become due as of the end of that
fiscal year, unless another eligible claimant for the same
residential dwelling successfully applies to the county for deferment
pursuant to this chapter for the next fiscal year.
(b) All amounts owed by the claimant pursuant to this chapter
shall become due immediately if either of the following occurs:
(1) A claimant whose property taxes have been deferred under this
chapter fails to perform any acts that claimant is required to
perform, and the performance of that act or those acts is secured, or
will be in the event of nonperformance, by a lien that is senior to
the lien provided for by this chapter.
(2) Deferment was granted erroneously because eligibility
requirements were not actually met.
30517. (a) The county treasurer, or other appropriate county
official, shall maintain a record of all residential dwellings
against which a notice of lien for deferred property taxes has been
recorded pursuant to this chapter. With respect to each residential
dwelling, the record shall include, but not be limited to, the name
of the claimant, a description of the real property against which the
lien is recorded, the identification number of the notice of lien,
and the amount of the lien.
(b) Information and records of the program not required to be
disclosed shall be maintained pursuant to Section 408 of the Revenue
and Taxation Code.
Article 3. Financing
30520. A participating county may charge an application fee from
a claimant upon that claimant's submission of an application form to
participate in the program. This fee shall cover the actual costs of
administrating the program, consistent with Section 54895. The
proceeds of the fee shall be deposited in an account within the
Property Tax Deferral Fund, established by Section 30522, to be used
exclusively to pay those administration costs.
30521. (a) A participating county shall charge claimants an
adjusted rate of interest on the amount owed for the deferment of
property taxes pursuant to this chapter. The adjusted rate of
interest per annum shall be 7 percent, or the effective annual yield
earned in the prior fiscal year by the Pooled Money Investment
Account plus 2 percent, whichever is higher, rounded to the nearest
full percent.
(b) The interest provided for by subdivision (a) shall be applied
as of the first day of the month in which a deferment payment is made
pursuant to this chapter and every day of the month thereafter until
the lien is discharged. In the event that any payment is applied, in
any month, to reduce the amount owed under the lien, the interest
shall be applied to the balance of the amount owed 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.
30522. (a) Each participating county shall establish a Property
Tax Deferral Fund within its treasury. Consistent with the provisions
of Section 53684, and upon the passage of the resolution authorizing
the investment of funds described in subdivision (a) of Section
53685, those funds may be deposited in the Property Tax Deferral Fund
for the sole purpose of making property tax deferment subvention
payments pursuant to subdivision (c) of Section 30511.
(b) Costs to foreclose on a residential dwelling for which
property taxes have been deferred, but not repaid, under this chapter
shall be administrative costs, payable from the account described in
Section 30520.
30523. (a) The deferment 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 account, trust,
or other type of account described in Section 2954 of the Civil Code
which was established prior to the effective date of the act that
added this section.
(b) Except where required by federal law, regulation, rule, or
program, and notwithstanding Sections 7153.2 and 7153.8 of the
Financial Code, or in the case of a loan that 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 the act that added this section, no lender shall require a
borrower to maintain an impound, trust, or other type of account with
regard to taxes for any similar period, if not previously used in
payment or partial payment of those taxes, shall be refunded to the
borrower within 30 days.
(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 a 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
deferral program established pursuant to this chapter.
(2) Notwithstanding subdivision (b), no lender shall require a
borrower to maintain an impound, trust, or other type of account with
regard to taxes if the borrower provides evidence of participation
in the property tax deferral program established pursuant to this
chapter. A lender shall not file a notice of default based solely on
a mortgagor's failure to pay property taxes, until at least five
years have elapsed from the date on which the property taxes became
delinquent, if the mortgagor or trustor provided the mortgagee,
trustee, or other person authorized to take sale, evidence of his or
her participation in the Senior
Citizens and Disabled Citizens Property Tax Postponement
Program during the 2008-09 fiscal year.
(3) Written confirmation from the Controller identifying the
individual as a participant in the Senior Citizens and Disabled
Citizens Property Tax Postponement Program during the 2008-09 fiscal
year shall be considered evidence of participation for purposes of
this section. The Controller shall provide written notice to
individuals that participated in the program during 2008, 2009, or
the 2008-09 fiscal year for use as written confirmation of
participation.
30524. If a deferment claim is filed timely but before the
delinquency date of the first or second installment of property
taxes, then any delinquent penalties and interest for that fiscal
year shall be canceled unless the failure to perfect the claim was
due to willful neglect on the part of the claimant or his or her
representative. In the event of such willful neglect, any property
tax deferment subvention payment may be used only if it is
accompanied by sufficient amounts to pay the delinquent interest and
penalties.
30525. If a property tax deferment repayment is made to satisfy
an obligation secured by a lien for property tax deferment, and the
repayment exceeds the amount owed to the participating county under
the lien, the county shall refund the overpayment to the party
entitled thereto.
SEC. 3. 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
53601 30522, 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. 4. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to provide property tax deferment to seniors and disabled
citizens in urgent need of assistance, it is necessary that this act
take immediate effect. All matter omitted in this version of
the bill appears in the bill as amended in the Senate, July 15, 2010.
(JR11)