BILL ANALYSIS                                                                                                                                                                                                    



                                        
                       SENATE LOCAL GOVERNMENT COMMITTEE
                            Senator Dave Cox, Chair


          BILL NO:  AB 2317                    HEARING:  6/16/10
          AUTHOR:  Saldana                     FISCAL:  No
          VERSION:  4/5/10                     CONSULTANT:   
          Weinberger
          
                            NUISANCE ABATEMENT FINES

                           Background and Existing Law  

          The United States and California Constitutions prohibit  
          governments from impairing property rights without due  
          process of law.  The California Constitution also allows  
          counties and cities to adopt and enforce ordinances that  
          regulate local health, safety, peace, and welfare.

          State law defines a nuisance as anything that is injurious  
          to health, indecent or offensive to the senses, obstructs  
          the free use of property, or unlawfully obstructs free  
          passage.  In addition to civil and criminal enforcement  
          mechanisms, counties and cities can adopt ordinances that  
          establish local procedures for abating nuisances (AB 2593,  
          Veysey, 1965).  Counties and cities can recover abatement  
          costs, including administrative costs, by using a special  
          assessment, abatement lien, or both.  

          I.   Counties' nuisance abatement procedures  .  A county  
          ordinance establishing administrative procedures for  
          nuisance abatement must require that the owner of the  
          parcel, and anyone known to be in possession of the parcel,  
          receive notice of the abatement proceeding and have a  
          hearing before the board of supervisors before the county  
          can abate the nuisance.  The county supervisors can  
          delegate the hearing to a hearing board or hearing officer.  
           A county may summarily abate a nuisance that a board of  
          supervisors or county officer determine constitute an  
          immediate threat to public health or safety.

          If the owner fails to pay the county's abatement costs, the  
          board of supervisors can order the abatement cost to be  
          specially assessed against the parcel.  The assessment can  
          be collected on the property tax bill, subject to the same  
          penalties, procedure, and sale in case of delinquency as  
          are provided for ordinary county taxes.  All laws regarding  
          the levy, collection, and enforcement of county taxes apply  




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          to the special assessment.

          If a county specially assesses abatement costs against a  
          parcel, it can also record a notice of abatement lien,  
          which has the same effect as recordation of an abstract of  
          a money judgment and has the same priority as a judgment  
          lien.  If no abatement lien is recorded and the real  
          property on which an assessment is imposed is sold, or  
          becomes foreclosed, before the first installment of the  
          taxes becomes delinquent, then the assessment transfers to  
          the unsecured tax roll for collection.
          II.   Cities' nuisance abatement procedures  .  A city  
          ordinance establishing a procedure for nuisance abatement  
          and making the cost of abatement of a nuisance upon a  
          parcel of land a special assessment against that parcel  
          must include notice, by certified mail, to the property  
          owner.  The notice must be given at the time of imposing  
          the assessment and must specify that the property may be  
          sold after three years by the tax collector for unpaid  
          delinquent assessments.  The tax collector's power of sale  
          is not affected by the failure of the property owner to  
          receive notice.  The assessment can be collected on the  
          property tax bill, subject to the same penalties,  
          procedure, and sale in case of delinquency as provided for  
          ordinary municipal taxes.  All laws regarding the levy,  
          collection and enforcement of municipal taxes apply to the  
          special assessment.  However, if the real property is sold,  
          or becomes foreclosed, before the first installment of the  
          taxes becomes delinquent, then the cost of abatement  
          transfers to the unsecured tax roll for collection.

          Alternatively, a city can, by ordinance, establish a  
          procedure to collect abatement costs, including  
          administrative costs, by a nuisance abatement lien.  The  
          ordinance must require that the owner of the parcel on  
          which the nuisance is maintained receive notice prior to  
          recordation of the abatement lien.  If the owner cannot be  
          served with the notice, it can be posted on the property  
          and published in a newspaper.  A nuisance abatement lien  
          must be recorded with the county recorder and has the  
          force, effect, and priority of a judgment lien.  The lien  
          may be foreclosed by an action brought by the city for a  
          money judgment.

          III.  Local administrative fines and penalties  .  As an  
          alternative to civil and criminal enforcement mechanisms, a  





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          local agency's legislative body can make any violation of  
          any of its ordinances subject to an administrative fine or  
          penalty (SB 814, Alquist, 1995).  The local agency must  
          adopt an ordinance specifying the administrative procedures  
          that govern the imposition, enforcement, collection, and  
          administrative review of the fines or penalties.  The  
          administrative procedures must grant a reasonable time to  
          remedy a continuing violation before the imposition of  
          administrative fines or penalties, when the violation  
          pertains to building, plumbing, electrical, or other  
          similar structural and zoning issues that do not create an  
          immediate danger to health or safety.  Within 20 days after  
          service of a final administrative order or decision  
          regarding administrative fines or penalties, a person  
          contesting that final administrative order or decision may  
          appeal in Superior Court.  Local agencies must go through a  
          civil court proceeding to collect unpaid fines and  
          penalties.

          To strengthen local code enforcement authority and avoid  
          the expense of civil litigation, city and county officials  
          want to collect unpaid fines related to nuisance abatement  
          using the same powers that they already use to collect  
          unpaid nuisance abatement costs.



                                   Proposed Law  

          Assembly Bill 2317 authorizes a county board of supervisors  
          to assess fines related to nuisance abatement against a  
          parcel if the parcel owner fails to pay the costs of  
          abatement upon demand by the county.

          AB 2317 authorizes a city council to establish a procedure  
          to collect abatement related fines by a nuisance abatement  
          lien.

          AB 2317 authorizes a city council to include fines in the  
          cost of abatement that the council can specially assess  
          against the parcel of land on which the nuisance is  
          maintained.


                                     Comments  






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          1.   A necessary enforcement tool  .  The current recession  
          has increased public nuisances in many cities and counties  
          while forcing local officials to cut their enforcement  
          budgets.  Local governments have fewer resources to enforce  
          codes and standards.  Some recalcitrant property owners  
          maintain nuisances on their properties while ignoring  
          administrative fines.  These fines accumulate into large  
          debts, which are costly for local officials to recover  
          through the courts.  Using special assessment and abatement  
          liens gives local officials a less expensive and more  
          effective method for collecting unpaid fines and will  
          provide a stronger incentive for property owners to comply  
          with local ordinances.  AB 2317 helps local agencies  
          protect the public's health and safety by giving them  
          stronger code enforcement authority that mirrors the  
          authority they already use to collect nuisance abatement  
          costs.

          2.   Too strong  ?  Special assessments and abatement liens  
          are powerful debt collection mechanisms, which local  
          officials can use to foreclose and sell real property.   
          When local governments use such powerful tools, property  
          owners need substantial due process safeguards.  Local  
          administrative proceedings must meet minimum due process  
          standards established by the courts, including adequate  
          notice to the proper parties, a reasonable opportunity to  
          be heard, and a chance to challenge the evidence.   
          Additionally, state law specifically allows property owners  
          to appeal local administrative fines and penalties in  
          Superior Court.  Before allowing local officials to collect  
          unpaid administrative fines with special assessments and  
          abatement liens, the Committee may wish to consider whether  
          existing administrative protections and appeals  
          opportunities adequately protect property owners' due  
          process rights.

          3.   Related bills .  At its June 16 hearing, the Committee  
          will hear AB 2613 (Beall, 2010), which authorizes a city,  
          county, or city and county to use special assessments and  
          nuisance abatement liens to collect unpaid fines related to  
          ordinance violations on real property.  SB 1427 (Price,  
          2010), which is awaiting referral to an Assembly policy  
          committee, requires local governments to provide notice and  
          an opportunity to correct violations before levying a fine  
          or penalty on a property owner for failure to maintain a  
          vacant foreclosed property.





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                                 Assembly Actions  

          Assembly Local Government Committee:  6-2
          Assembly Floor:                    47-24
           

                        Support and Opposition  (6/10/10)

           Support  :  Cities of San Marcos, Murrieta, Sacramento,  
          County of Sacramento, California State Association of  
          Counties, League of California Cities, Marin County Council  
          of Mayors & Councilmembers.

           Opposition  :  Howard Jarvis Taxpayers Association.