BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1919
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 1919 (Davis)
          As Amended  April 5, 2010
          Majority vote 

           LOCAL GOVERNMENT    6-2                                         
           
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          |Ayes:|Caballero, Arambula,      |     |                          |
          |     |Bradford, Davis, Solorio, |     |                          |
          |     |De La Torre               |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Smyth, Knight             |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 

           SUMMARY  :  Deletes the $10 fee exemption under the survey  
          monument preservation fund for grant deeds conveying lots  
          created by recorded tract maps.  

           EXISTING LAW  :

          1)Provides for the collection of a $10 fee by the county  
            recorder on most grant deeds conveying real property.  

          2)Exempts from the $10 fee grant deeds conveying lots created by  
            recorded tract maps.

          3)Requires the $10 fee to go into a county survey monument  
            preservation fund, which covers expenses incurred by the  
            county surveyor for retracing major historical land division  
            lines upon which private surveys are based.

          4)Requires, when the survey is done by a city engineer within  
            the City of Los Angeles, 
          the $10 fee be transferred to the city treasurer to reimburse  
            the City of Los Angeles for expenses incurred by the city  
            engineer in conducting that survey.

           FISCAL EFFECT  :  None

           COMMENTS  :  Government Code (GC) Section 27585 was added in 1976  
          (Chapter 881, Statutes 1976) along with GC Section 27584.  The  








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          initial purpose of these two code sections was to provide  
          counties with reimbursement for necessary expenses incurred or  
          authorized by a county surveyor for retracing major historical  
          land division lines upon which later surveys are based.  Since  
          1976, the user fee has been capped at $10 with the money going  
          into a survey monument preservation fund maintained by the  
          county.

          GC Section 27585 was amended in 1986 [AB 2855 (Bradley), Chapter  
          334, Statutes of 1986] to allow, among other changes, the City  
          of Los Angeles to retain the $10 fee as reimbursement for  
          expenses for instances when a city engineer with the City of Los  
          Angeles did the survey work.

          Counties establish and maintain survey monuments throughout  
          their jurisdiction as required by the Subdivision Map Act, the  
          Professional Land Surveyors' Act, and the Professional Engineers  
          Act.  The monuments provide physical evidence of a boundary of  
          real property. These monuments affect local government projects,  
          other governmental agencies, and the private sector.  The  
          Professional Land Surveyors' Act specifically requires that,  
          when monuments are disturbed by reconstruction (including  
          paving), the governmental agency with local jurisdiction is  
          responsible for preserving and, if necessary, reconstructing the  
          monuments.  The City of Los Angeles, in conjunction with the  
          County of Los Angeles, also provides all of these services to  
          parcels located within the city limits.

          The author states the purpose of this legislation is to expand  
          the circumstances under which fees are collected so as to  
          provide additional funds for the survey monument preservation  
          fund.  The author says it is particularly unfair for landowners  
          who have only real property conveyed by deed be subject to the  
          $10 fee while real property conveyed by lot and tract is exempt.  
           In the City of Los Angeles alone, more than 80% of parcels are  
          conveyed by lot and tract, meaning less than 20% of the real  
          property conveyances are financially supporting the monument  
          preservation required equally of all real property conveyances.   
          According to the author, frequently a deed-conveyed parcel abuts  
          a lot-and-tract-conveyed parcel, making the financial inequity  
          even more apparent among neighbors.  

          Support arguments.  Supporters say deleting the exemption for  
          deeds conveying lots created by recorded tract maps closes an  








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          inequitable loophole in who is charged the $10 user fee for the  
          county survey monument preservation fund.  Because the sole  
          purpose of the fund is to reimburse the county surveyor, and, in  
          the case of the City of Los Angeles, the city surveyor, for  
          costs incurred to comply with state laws for the preservation of  
          monuments, this fee goes directly back to statutorily required  
          community services.  Supporters, California State Association of  
          Counties, also say the exemption creates confusion for county  
          recorders, with the exemption sometimes being overlooked or  
          applied incorrectly.

          Opposition arguments.  The California Association of Realtors,  
          questions why this fund is necessary in light of modern  
          technology that makes surveying more cost-effective when it  
          comes to the preservation and maintenance of survey monuments.   
          Adding an additional fee to every conveyance of real property is  
          a large sum of money, likely larger than is necessary for this  
          purpose.  It also could be argued that, in today's economy,  
          anything that makes the conveyance of real property more  
          expensive only hurts the overall economy. 

          
          Analysis Prepared by  :    Jennifer R. Klein / L. GOV. / (916)  
          319-3958 


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