BILL NUMBER: AB 1718 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 19, 2010
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 Section 53684 of , and to add Chapter 11
(commencing with Section 30500) to Division 3 of Title 3 of, the
Government Code the Government Code, and to add Part
10.6 (commencing with Section 20800) to Division 2 of the Revenue
and Taxation 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
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.
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 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. Under the program, a
participating county would be authorized to defer a claimant's
property taxes retroactively, for the time period since the
suspension of the Senior Citi zens and Disabled Citizens
Property Tax Postponement Law, and prospectively, as specified,
unless retroactive deferment would impair a vested right of
a private party.
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, or county tax collector 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,
county, in an amount 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 , as specified . 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 an application fee to the claimant to
cover offset 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 provide if specified other
collection actions are unsuccessful, that costs to foreclose on
a residential dwelling for which property taxes have been deferred
under the program are would be
administrative costs.
The bill would prohibit a mortgagee, trustee,
lender 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, borrower
provides the lender or other person authorized to take sale
, evidence of the mortgagor's or trustor'
s borrower'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: 2/3. Appropriation: 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. 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 or 53635 , or Section 20822 of the Revenue and Taxation
Code .
(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. 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
SEC. 3. Part 10.6 (commencing with Section 20800) is
added to Division 2 of the Revenue and Taxation Code, to read:
PART 10.6. COUNTY DEFERRED PROPERTY TAX PROGRAM FOR
SENIOR CITIZENS AND DISABLED CITIZENS
CHAPTER 1. GENERAL PROVISIONS AND DEFINITIONS
20800. This part shall be known and may be
cited as the County Deferred Property Tax Program for Senior Citizens
and Disabled Citizens.
30501. 20801. Unless the context
requires otherwise, the definitions set forth in this
article shall govern the construction of this chapter
chapter shall govern the construction of this part .
30502. 20802. (a) "Claimant" means
an owner of a residential dwelling, as defined in Section
30508 20808 , 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
a household income, as defined in subdivision (a) of Section
20803 , 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 , except in the case of retroactive
deferment, as provided for in Section 20810, the age eligibility
shall be 62 years old .
(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 , any record of a deferment payment on the tax roll
shall be canceled, the tax or assessment shall be a lien as though no
payment had been made, and the amount of the lien shall
be increased by any penalties or interest resultant from property tax
delinquency .
30503. (a) "Income" means adjusted gross income, as defined in
Section 17072 of the Revenue and Taxation Code, plus all of
20803. (a) "Household income" means all income, as
defined in subdivision (b), received by any member of a household
while that member is or was a member of that household. In the case
of a nonresident claimant, "household income" shall include, but not
be limited to, all income received by the claimant during the
calendar year without regard to source.
(b) "Income" means adjusted gross
income, as defined in Section 17072, 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)
(c) 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)
(d) 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. 20804. (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. 20805. "Participating county"
means a county that makes an election described in Section
30510 20810 .
30506. 20806. "Program" means the
County Deferred Property Tax Program for Senior Citizens and Disabled
Citizens.
30507. 20807. "Property taxes"
means ad valorem property taxes or special assessments imposed upon a
residential dwelling within the year in which deferment is sought.
30508. 20808. (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
CHAPTER 2. DEFERMENT
30510. 20810. 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. Under this program, a participating county may defer
a claimant's property taxes retroactively, for the time period since
the suspension of the Senior Citizens and Disabled Citizens Property
Tax Postponement Law, and prospectively, as provided in
this part, unless retroactive deferment would impair a vested right
of a private party.
30511. 20811. (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 20810
.
(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 20812 , the
county treasurer , or other appropriate county official,
or county tax collector shall review the
claimant's application for program eligibility, consistent with the
requirements specified in Section 30502 20802
.
(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
20822 , to defer property taxes on the claimant'
s residential dwelling for that fiscal year, the county treasurer or
other appropriate county official county tax
collector , 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 to the county
to be processed in the same manner as all other property tax
payments .
(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
to taxes deferred under 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.
(g) The county recorder shall index the lien according to the
names of each record owner and the county.
30512. 20812. (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. 20813. (a) Upon receipt of a
notice of lien for deferred property taxes from the county
treasurer, the county assessor, or other appropriate county
official county tax collector , 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 or county tax collector, as appropriate, of the
change in the ownership status in the manner prescribed by the county
treasurer or county tax collector .
(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. 20814. (a) A participating
county shall reduce the amount secured by the lien provided for in
subdivision (e) of Section 30511 20811
by the amount of any payment received for that purpose. Payments
shall be applied to the oldest deferral amount in order of lien
recordation date until p aid in full.
(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.
(c) A participating county shall annually adjust the lien as
described in this section.
30515. 20815. 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,
or county tax collector 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. 20816. (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. shall become due immediately if any of
the following occurs:
(1) The claimant ceases to own the residential dwelling by sale,
conveyance, or condemnation.
(2) The claimant ceases to reside permanently at the residential
dwelling.
(3) The claimant's equity in the residential dwelling falls below
the amount necessary to be eligible to participate in the program, as
provided by paragraph (3) of subdivision (a) of Section 20802 and
subdivision (b) of Section 20808.
(4) The claimant refinances existing loans on the residential
dwelling.
(5) Deferment was granted erroneously because eligibility
requirements were not actually met.
30517. (a) The county treasurer, or other appropriate county
official,
20817. (a) The county
treasurer or county tax collector 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 or book and page number of the
recording , 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 in the same manner as
described in Section 408 .
Article 3. Financing
CHAPTER 3. FINANCING
30520. 20820. 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.
form to participate in the program, consistent with Section
54985 of the Government Code. The application fees derived from all
claimants in a participating county shall be used to offset that
county's costs incurred in administering the program. The
county may include within the application fee any recording fee
required pursuant to Section 27361.3 of the Government Code for the
recording of the release or discharge of
the property tax deferral lien, and if the fee
is so included, the amount of that recording fee shall be
transferred to the county recorder, along with the documents
pertaining to release or discharge of the lien, upon the
release or discharge of the lien. The proceeds of the fee shall
be deposited in an account within the Property Tax Deferral Fund,
established by Section 30522 20822 , to
be used exclusively to pay those administration costs.
30521. 20821. (a) A participating
county shall charge claimants an adjusted rate of interest on the
amount owed for the deferment of property taxes
property taxes deferred 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 rate 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 rate 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.
(d) The interest rate shall be applicable solely to the amount of
property taxes deferred, and shall not be compounded.
30522. 20822. (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
Expenditures from this fund shall be for the sole p
urposes of making property tax deferment subvention payments pursuant
to subdivision (c) of Section 20811 and administrative costs, as
described in Section 20820.
(b) If deferred property taxes cannot
be collected through collection actions taken pursuant to Section
20816, 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 20820 .
30523. 20823. (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.
(b) (1) No lender shall require a borrower to maintain an impound,
trust, or other similar type of account with regard to property
taxes once the borrower has deferred these taxes pursuant to this
chapter and has first submitted to the lender evidence of tax
deferment under this part, except in the following circumstances:
(A) Federal law, regulation, rule, or program requires the
borrower to maintain an impound, trust, or other similar type of
account with regard to property taxes, notwithstanding Sections
7153.2 and 7153.8 of the Financial Code.
(B) The borrower is required to make payment to a lender using the
type of account described in Section 2954 of the Civil Code for a
loan that is made, guaranteed, or insured by a federal government
lending or insuring agency.
(C) The prohibition would impair the express obligations of a loan
agreement.
(2) If not previously used in payment or partial payment of
property taxes, any payment made by a borrower to an impound, trust,
or other similar type of account prior to the time of submission of
evidence of tax deferment pursuant to this part shall be refunded to
the borrower within 30 days thereafter.
(c) No lender or other person authorized to take sale on real
property shall file a notice of default based solely on a borrower's
failure to pay property taxes if the borrower provides evidence of
participation in the property tax deferment program established
pursuant to this part. A borrower who is a claimant shall provide
evidence of participation to each lender upon a participating county'
s approval of the claimant's application to participate in the
program.
(c)
(d) (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
20824. If the department claim is filed timely
, 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. 20825. 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
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.