BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1919|
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                                 THIRD READING


          Bill No:  AB 1919
          Author:   Davis (D)
          Amended:  8/2/10 in Senate
          Vote:     21

           
           SENATE LOCAL GOVERNMENT COMMITTEE  :  5-0, 6/30/10
          AYES:  Cox, Aanestad, Kehoe, DeSaulnier, Price

           ASSEMBLY FLOOR  :  43-33, 6/1/10 - See last page for vote


           SUBJECT  :    Local government: county surveyor: survey  
          monument
                        preservation fund

           SOURCE  :     Author


           DIGEST  :    This bill repeals the current prohibition  
          against charging county survey monument preservation fund  
          fees against grant deeds that convey parcels which were  
          created by recorded tract maps.  This bill allows a county  
          to deduct an administrative fee of up to five percent to  
          pay for the county recorder's costs before depositing the  
          revenues in the county survey monument preservation fund.

           ANALYSIS  :    Existing law authorizes counties to charge  
          survey monument preservation fund user fees to property  
          owners who record grant deeds that convey real property.   
          Grant deeds for lots created by recorded tract maps are  
          exempt.   The fee can't exceed $10 or an amount set by the  
          county board of supervisors that doesn't exceed the amount  
                                                           CONTINUED





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          reasonably necessary to provide the cost of the service.   
          The funds can't be used for any other purpose.

          The revenues go into a survey monument preservation fund to  
          pay for the county surveyor's work in retracing major  
          historical land division lines that private surveyors use  
          when surveying property.  The surveys rely on permanent  
          monuments as the physical evidence needed to establish  
          property boundaries.  The county surveyor can contract with  
          private surveyors for this work or allow a city engineer to  
          perform the work within the city.

          If a city engineer in a city with more than 1,500,000  
          residents (i.e., Los Angeles) preserves the survey  
          monuments in that city, the county recorder must send the  
          revenues collected from the grant deeds recorded in that  
          city to the city treasurer (AB 2855, Bradley, Chapter 334,  
          Statutes of 1986).

          This bill repeals the current prohibition against charging  
          county survey monument preservation fund fees against grant  
          deeds that convey parcels which were created by recorded  
          tract maps. 

          This bill allows a county to deduct an administrative fee  
          of up to five percent to pay for the county recorder's  
          costs before depositing the revenues in the county survey  
          monument preservation fund.

          The bill also makes clarifying and technical changes.

           Comments
           
          Over 80 percent of the grant deeds recorded on property  
          within the City of Los Angeles are exempt from Los Angeles  
          County's user fee because tract maps created the lots.  The  
          City says that the County's fee generates about $40,000 a  
          year for monument preservation work.  If the County imposed  
          the fee on the grant deeds for all parcels, the City would  
          get about $200,000 a year.  That's enough to preserve more  
          than 220 additional survey monuments a year.  The City  
          wants the Legislature to broaden the base against which  
          counties can charge these fees.








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          Accurate survey monuments benefit the private surveyors who  
          work on new subdivisions and other land development  
          projects.  Unreliable survey monuments can result in  
          confusion and costly lawsuits over property lines.  When  
          county surveyors preserve key survey monuments, they're  
          helping to avoid property disputes.  That's why state law  
          allows counties to charge fees to pay for preserving those  
          essential monuments.  The current exemption in state law  
          for previously subdivided lots means that counties charge  
          their user fees against a narrow base.  Neither they nor  
          the City of Los Angeles receive enough fee revenues to pay  
          for vigorous preservation programs.  If the rate stays the  
          same, but the base grows, a fee generates more revenue.  If  
          counties charge their existing survey monument preservation  
          user fees on all parcels, then the county surveyors will  
          have more money to replace more survey monuments.  This  
          bill generates more money for the counties and the City of  
          Los Angeles to preserve more survey monuments.

          When the 1986 Bradley bill proposed hiking the county  
          survey monument preservation user fee from $10 to $15, the  
          Senate Local Government Committee instead amended the bill  
          to recognize county supervisors' ability to raise the fee  
          above the statutory cap of $10 as long as county officials  
          show that the higher fee didn't exceed the county's  
          reasonable service costs.  If a county's current fee  
          doesn't cover a county's costs of preserving survey  
          monuments, the county surveyor can ask the board of  
          supervisors to raise the fee and generate more money.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  8/2/10)

          California Land Surveyors Association
          California State Association of Counties
          City of Los Angeles
          Counties of Butte and Humboldt
          County Recorders Association of California
          Regional Council of Rural Counties

           OPPOSITION  :    (Verified  8/2/10)








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          California Association of Realtors

           ARGUMENTS IN SUPPORT  :    Supporters state that deleting the  
          exemption for deeds conveying lots created by recorded  
          tract maps closes an 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. 

           ARGUMENTS IN OPPOSITION  :    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.  
           

           ASSEMBLY FLOOR  :  
          AYES:  Ammiano, Arambula, Bass, Beall, Block, Blumenfield,  
            Bradford, Brownley, Caballero, Charles Calderon, Carter,  
            Chesbro, Coto, Davis, De La Torre, De Leon, Eng, Evans,  
            Feuer, Fong, Fuentes, Furutani, Hall, Hayashi, Hernandez,  
            Huffman, Jones, Lieu, Bonnie Lowenthal, Ma, Mendoza,  
            Monning, Nava, Ruskin, Salas, Saldana, Skinner, Solorio,  
            Torlakson, Torres, Torrico, Yamada, John A. Perez
          NOES:  Adams, Anderson, Bill Berryhill, Blakeslee,  
            Buchanan, Conway, Cook, DeVore, Emmerson, Fletcher,  
            Fuller, Gaines, Galgiani, Garrick, Gilmore, Hagman,  
            Harkey, Hill, Huber, Jeffries, Knight, Logue, Miller,  
            Nestande, Niello, Nielsen, Norby, V. Manuel Perez,  
            Portantino, Silva, Smyth, Tran, Villines
          NO VOTE RECORDED:  Tom Berryhill, Audra Strickland, Swanson








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          AGB:nl  7/26/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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