BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 2613|
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                                 THIRD READING


          Bill No:  AB 2613
          Author:   Beall (D)
          Amended:  6/30/10 in Senate
          Vote:     21

           
           SENATE LOCAL GOVERNMENT COMMITTEE  :  3-1, 6/16/10
          AYES:  Kehoe, DeSaulnier, Price
          NOES:  Aanestad
          NO VOTE RECORDED:  Cox

           SENATE FLOOR  :  20-13, 8/11/10
          AYES:  Alquist, Cedillo, Corbett, DeSaulnier, Ducheny,  
            Florez, Hancock, Kehoe, Leno, Liu, Lowenthal, Padilla,  
            Pavley, Price, Romero, Simitian, Steinberg, Wolk, Wright,  
            Yee
          NOES:  Aanestad, Ashburn, Cogdill, Correa, Denham, Dutton,  
            Emmerson, Harman, Hollingsworth, Huff, Runner,  
            Strickland, Wyland
          NO VOTE RECORDED:  Calderon, Negrete McLeod, Oropeza,  
            Walters, Wiggins, Vacancy, Vacancy

           ASSEMBLY FLOOR  :  44-30, 5/13/10 - See last page for vote


           SUBJECT  :    Local government:  fines and penalties:   
          assessments

           SOURCE  :     County of Santa Clara


           DIGEST  :    This bill authorizes a city, county, or city and  
          county, after notice and public hearing, to order unpaid  
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          fines or penalties related to ordinance violations on real  
          property to be specially assessed against the parcel.  This  
          bill allows the assessment to be collected at the same time  
          and in the same manner as ordinary county taxes and subject  
          to the same penalties and the same procedure and sale in  
          case of delinquency.  This bill declares that all laws  
          applicable to the levy, collection, and enforcement of  
          county taxes apply to the special assessment.  This bill  
          specifies that the assessment does not constitute a lien on  
          the real property until a notice of lien is recorded.

           Senate Floor Amendment  of 6/30/10 is technical to make the  
          bill's terminology consistent. 

           ANALYSIS  :    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.  

          This bill authorizes a city, county, or city and county,  
          after notice and public hearing, to order unpaid fines or  
          penalties related to ordinance violations on real property  
          to be specially assessed against the parcel.  This bill  
          allows the assessment to be collected at the same time and  
          in the same manner as ordinary county taxes and subject to  
          the same penalties and the same procedure and sale in case  
          of delinquency.  This bill declares that all laws  
          applicable to the levy, collection, and enforcement of  
          county taxes apply to the special assessment.  This bill  
          specifies that the assessment does not constitute a lien on  
          the real property until a notice of lien is recorded.

          If a city, county, or city and county specially assesses  

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          the cost of the administrative fines or penalties against  
          the parcel, this bill authorizes it to record a notice of  
          abatement lien to perfect the lien.  The abatement lien  
          notice must: 

          1.Identify the assessor's parcel number 
          2.Identify the record owner 
          3.Set forth the last known address of the record owner
          4.Set forth the date upon which assessment was ordered by  
            the city, county, or city and county, and 
          5.State the amount of the lien.  

          This bill declares that recordation of a notice of  
          abatement lien has the same effect as recordation of an  
          abstract of a money judgment.  The lien against the parcel  
          has the same force, effect, and priority as a judgment lien  
          on real property.  The bill allows the city, county, or  
          city and county, or any authorized officer to release or  
          subordinate an abatement lien in the same manner as  
          releasing or subordinating a judgment lien on real  
          property.

          This bill authorizes a city, county, or city and county to  
          combine the administrative procedures that govern the  
          imposition, enforcement, collection, and administrative  
          review of administrative fines and penalties with specified  
          nuisance abatement procedures.

          This bill allows a local agency, in administrative  
          procedures to authorize the appointment of hearing officers  
          to hear and decide issues regarding ordinance violations  
          and the imposition of administrative fines or penalties.

           Background
           
           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  

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          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  
          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.

           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  

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          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.

           Local administrative fines and penalties  .  As an  
          alternative to civil and criminal enforcement mechanisms, a  
          local agency's legislative body can make any violation of  
          any of its ordinances subject to an administrative fine or  
          penalty (SB 814, Alquist, Chapter 898, Statutes of 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, local officials want to  
          collect unpaid administrative fines that are levied for  
          local ordinance violations on real property using the same  
          powers that they already use to collect unpaid nuisance  
          abatement costs.

           Related Legislation  

          AB 2317 (Saldana), lets cities and counties to use special  
          assessments and nuisance abatement liens to collect fines  
          related to nuisance abatement.  

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          SB 1427 (Price), 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.

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

          SUPPORT  :   (Verified  6/22/10)

          County of Santa Clara (source) 
          California State Association of Counties

           OPPOSITION  :    (Verified  6/22/10)

          California Taxpayers' Association
          Howard Jarvis Taxpayers Association


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


          AGB:nlk  8/17/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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