BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2317
                                                                  Page  1

           REPLACE  - 08/26/2010 Changes per consultant.
          
          CONCURRENCE IN SENATE AMENDMENTS
          AB 2317 (Saldana)
          As Amended  August 20, 2010
          Majority vote
           
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          |ASSEMBLY:  |47-24|(May 17, 2010)  |SENATE: |21-14|(August 25,    |
          |           |     |                |        |     |2010)          |
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           Original Committee Reference:    L. GOV.  

           SUMMARY  :  Authorizes cities and counties to collect fines  
          related to nuisance abatement using a nuisance abatement lien or  
          a special assessment.  

           The Senate amendments  add a repeal date of January 1, 2014, to  
          the authorization for cities and counties to collect fines  
          related to nuisance abatement using a nuisance abatement lien or  
          a special assessment.

           EXISTING LAW  permits cities and counties to establish by  
          ordinance a procedure to collect nuisance abatement costs and  
          related administrative costs by a nuisance abatement lien or a  
          special assessment. 

           AS PASSED BY THE ASSEMBLY  , this bill authorized cities and  
          counties to collect fines related to nuisance abatement using a  
          nuisance abatement lien or a special assessment.  

           FISCAL EFFECT :  None

           COMMENTS  :  Government Code (GC) Sections 38773.5 and 25845 were  
          added in 1965 (Chapter 1941, Statutes of 1965) to allow cities  
          and counties to use special assessments to collect nuisance  
          abatement costs.  The original language for both these sections  
          was identical and gave cities and counties the authority to  
          establish by ordinance a procedure for nuisance abatement and to  
          make a special assessment against the parcel in order to recover  
          the cost of the abatement.  

          In 1990, the Legislature responded to concerns that special  
          assessments for the purpose of collecting the costs of nuisance  








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          abatement were too slow a process for local governments and were  
          frustrating for private lenders.  Thus, GC Section 38773.1 was  
          added in 1990 (Chapter 965, Statutes of 1990) to allow cities to  
          use abatement liens as an alternative to special assessments in  
          the collection of nuisance abatement costs.  It was said the  
          alternative would speed up cost recovery and relieve lenders'  
          worries because, unlike special assessments, which are  
          "superliens" and jump to the front of the line when collection  
          comes due, abatement liens assume a sequential priority with  
          respect to other financial claims against the real property.   
          Subsequent amendments to GC Section 25845 (Chapter 617, Statutes  
          of 1985) also allowed counties to impose an abatement lien.

          Under existing law, the legislative body of a local agency is  
          authorized to adopt an ordinance making the violation of any  
          local ordinance subject to an administrative fine or penalty.  

          In existing law, there are distinctions between public and  
          private nuisance along with potential remedies, including civil  
          actions to recover damages.  A nuisance is defined as: "Anything  
          which is injurious to health, including, but not limited to, the  
          illegal sale of controlled substances, or is indecent or  
          offensive to the senses, or an obstruction to the free use of  
          property, so as to interfere with the comfortable enjoyment of  
          life or property, or unlawfully obstructs the free passage or  
          use, in the customary manner, of any navigable lake, or river,  
          bay, stream, canal, or basin, or any public park, square,  
          street, or highway, is a nuisance."  Any private individual or  
          public entity can seek recourse for a public nuisance.  

          For a public nuisance, those remedies are indictment or  
          information, a civil action, or abatement.  

          According to the author, the collapse of the real estate market  
          has increased nuisance conditions found on real property and,  
          consequently, has become a vexing problem for communities and  
          local governments.  Owners often fail to maintain their  
          properties to such an extent that they pose health and safety  
          threats to their community.  Despite court hearings and findings  
          of violation, owners often ignore the imposition of fines, and  
          cities and counties have difficulty enforcing local nuisance  
          ordinances. 

          According to the author, although current law allows cities and  
          counties to adopt procedures for the recovery of nuisance  








                                                                  AB 2317
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          abatement and related administrative costs through a lien or  
          special assessment against the nuisance property, fines levied  
          against a property owner for maintaining the nuisance must be  
          addressed by local governments under entirely separate  
          procedures.  For instance, the City of San Marcos can levy a  
          fine for any violation of its municipal code as provided for in  
          its local ordinances.  Thus, a local government wishing to  
          collect both costs and fines for the nuisance abatement is  
          required to endure two administrative proceedings to recover  
          fines and out-of-pocket expenses for the same nuisance.  This is  
          not only an unnecessary burden to cities and counties; it is a  
          burden to any defendant who wishes to contest the imposition of  
          fines and costs.  In addition, while the costs incurred by a  
          local government to abate a nuisance are typically low, the  
          administrative burden to recover those costs is  
          disproportionately high and often economically unfeasible. 

          Support arguments.  Supporters say allowing cities and counties  
          to impose fines for nuisance abatement using the same procedure  
          for which they seek reimbursement for administrative costs  
          promotes government efficiency by combining two administrative  
          procedures into one.  It lowers the costs to cities and counties  
          in pursuing their legal right to seek fines for nuisance  
          abatement and lowers the cost to those who have had the nuisance  
          abated because they do not have to go through two administrative  
          procedures.

          Opposition arguments.  Opposition might object to using liens  
          and special assessments to impose fines because liens and  
          special assessments are powerful tools that should be used in  
          limited circumstances.  Opposition also might say expanding the  
          liabilities for which liens and special assessments may be  
          imposed encourages local governments to increase fines, thereby  
          setting a precedent for the further expansion of liens and  
          special assessments.  

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


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