BILL NUMBER: SB 1035 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 20, 2010
INTRODUCED BY Senator Hancock
FEBRUARY 12, 2010
An act to amend , repeal, and add Section 12811.1 of
the Public Utilities Code, relating to utility charges.
LEGISLATIVE COUNSEL'S DIGEST
SB 1035, as amended, Hancock. Municipal utility district: utility
charges: delinquencies.
The existing Municipal Utility District Act authorizes the
formation of a municipal utility district. The act authorizes a
district to acquire, construct, own, operate, control, or use works
for supplying the inhabitants of the district and public agencies
with light, water, power, heat, transportation, telephone service, or
other means of communication, or means for the collection,
treatment, or disposition of garbage, sewage, or refuse matter. The
act authorizes a municipal utility district, by resolution or
ordinance, to require the owner of record of privately owned real
property within the district to pay the fees, tolls, rates, rentals,
or other charges for certain utility services rendered to a lessee,
tenant, or subtenant, and provides that those charges that have
become delinquent, together with interest and penalties, are a lien
on the property when a certificate is filed by the district in the
office of the county recorder and that the lien has the force,
effect, and priority of a judgment lien. The act exempts water and
sewer services to residential property and electrical services from
this provision.
This bill, in addition to the above-described methods for
collecting delinquent charges, would establish procedures ,
until January 1, 2016, for a municipal utility district to
collect delinquent fees, tolls, rates, rentals, or other charges,
together with interest and penalties thereon, for services rendered
to a lessee, tenant, or subtenant, through the tax roll, in the same
manner as property taxes. The bill , until January 1, 2016,
would authorize a municipal utility district to collect
delinquent fees, tolls, rates, rentals, or other charges, together
with interest and penalties thereon, for services rendered to a
lessee, tenant, or subtenant, by recording in the office of the
county recorder of the county in which the affected parcel is
located, a certificate declaring the amount of the delinquent
charges, together with interest and penalties thereon, which would
then constitute a lien against the affected real property of the
delinquent property owner in that county and have the force, effect,
and priority of a judgment lien. The bill , until January 1,
2016, would delete the above-described exemption for water and
sewer services to residential property, thereby exempting only
electrical services from these collection provisions. The bill
would require any district that places a lien on a property for water
or sewer service on or before December 31, 2014, to submit a report
containing certain information to the Assembly and Senate
Committees on Judiciary on or before January 1, 2015. By
requiring county auditors and recorders to undertake certain actions
in response to the exercise of collection measures by a municipal
utility district, the bill would impose a state-mandated local
program. The bill would require a municipal utility district that
exercises these collection measures to reimburse the county for the
reasonable expenses incurred by the county.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 12811.1 of the Public Utilities Code is amended
to read:
12811.1. (a) A Except when prohibited by
Section 12822.6, a district may, by resolution or ordinance,
require the owner of record of real property within the district to
pay the fees, tolls, rates, rentals, or other charges for services
rendered to a lessee, tenant, or subtenant, and those fees, tolls,
rates, rentals, and other charges that have become delinquent,
together with interest and penalties thereon, are a lien on the
property when a certificate is filed in the office of the county
recorder pursuant to subdivision (b) and the lien has the force,
effect, and priority of a judgment lien. No lien may be created under
this section on any publicly owned property.
(b) A lien under this section attaches when the district files for
recordation in the office of the county recorder a certificate
specifying the amount of the delinquent fees, tolls, rates, rentals,
or other charges together with interest and penalties thereon; the
name of the owner of record of the property to which services were
rendered by the district; and the legal description of the property.
Within 30 days of receipt of payment of all amounts due, including
recordation fees paid by the district, the district shall file for
recordation a release of the lien.
(c) A district may, by resolution or ordinance, provide that any
delinquent fees, tolls, rates, rentals, or other charges, together
with interest and penalties thereon, including any delinquent fees,
tolls, rates, rentals, or other charges for services rendered to a
lessee, tenant, or subtenant, may be collected on the tax roll in the
same manner as property taxes. Before any entity may collect any
delinquent fees, tolls, rates, rentals, or other charges, together
with interest and penalties thereon, including any delinquent fees,
tolls, rates, rentals, or other charges for services rendered to a
lessee, tenant, or subtenant on the tax roll, the district shall
prepare a report, provide notice, conduct a public hearing, and file
a certificate in the office of the county recorder, as follows:
(1) The general manager shall prepare and file with the district
board of directors a report that describes each affected parcel of
real property and the amount of the delinquent fees, tolls, rates,
rentals, or other charges, together with interest and penalties
thereon, including any delinquent fees, tolls, rates, rentals, or
other charges for services rendered to a lessee, tenant, or subtenant
for each affected parcel for the year. The general manager shall
give notice of the filing of the report and of the time , date,
and place for a public hearing by publishing the notice
pursuant to Section 6066 of the Government Code in a newspaper of
general circulation, and by mailing the notice to the owner of each
affected parcel at least 14 days prior to the date of the
hearing .
(2) At the public hearing, the board of directors shall hear and
consider any objections or protests to the report. At the conclusion
of the public hearing, the board of directors may adopt or revise the
delinquent fees, tolls, rates, rentals, or other charges, together
with interest and penalties thereon, including any delinquent fees,
tolls, rates, rentals, or other charges for services rendered to a
lessee, tenant, or subtenant. The board of directors shall make its
determination on each affected parcel and its determinations shall be
final.
(3) On or before August 10 of each year following these
determinations, the general manager shall file with the county
auditor a copy of the final report adopted by the board of directors.
The county auditor shall enter the amount of the delinquent fees,
tolls, rates, rentals, or other charges, together with interest and
penalties thereon, including any delinquent fees, tolls, rates,
rentals, or other charges for services rendered to a lessee, tenant,
or subtenant, against each of the affected parcels of real property
as they appear on the current assessment roll. The county tax
collector shall include the amount of the delinquent fees, tolls,
rates, rentals, or charges, together with interest and penalties
thereon, including any delinquent fees, tolls, rates, rentals, or
other charges for services rendered to a lessee, tenant, or
subtenant, on the tax bills for each affected parcel of real property
and collect the delinquent fees, tolls, rates, rentals, or charges,
together with interest and penalties thereon, including any
delinquent fees, tolls, rates, rentals, or other charges for services
rendered to a lessee, tenant, or subtenant, in the same manner as
property taxes.
(4) The district may recover any delinquent fees, tolls, rates,
rentals, or other charges, together with interest and penalties
thereon, including any delinquent fees, tolls, rates, rentals, or
other charges for services rendered to a lessee, tenant, or
subtenant, by recording in the office of the county recorder of the
county in which the affected parcel is located, a certificate
declaring the amount of the delinquent fees, tolls, rates, rentals,
or charges, together with interest and penalties thereon, including
any delinquent fees, tolls, rates, rentals, or other charges for
services rendered to a lessee, tenant, or subtenant, due, and the
name and last known address of the person liable therefore. From the
time of recordation of the certificate, the amount of the delinquent
fees, tolls, rates, rentals, or charges, together with interest and
penalties thereon, including any delinquent fees, tolls, rates,
rentals, or other charges for services rendered to a lessee, tenant,
or subtenant, constitutes a lien against the affected real property
of the delinquent property owner in that county. This lien shall have
the force, effect, and priority of a judgment lien. Within 30 days
of receipt of payment of all amounts due, including recordation fees
paid by the district, the district shall file for recordation a
release of the lien.
(5) The district shall not recover on the tax roll any delinquent
fees, tolls, rates, rentals, or other charges for services for
commercial use to a commercial tenant under an account established by
the commercial tenant, from any subsequent tenant or the property
owner, due to nonpayment of charges by a previous commercial tenant.
For this purpose, the term "subsequent commercial tenant" shall not
include an entity or adult person that was located at the same
address during the period the charges or penalties accrued. This
paragraph does not apply to master-metered accounts.
(d) In filing any instrument for recordation under this section,
the district shall pay the fees specified in Sections 27361 and
27361.4 of the Government Code.
(e) A district shall reimburse the county for the reasonable
expenses incurred by the county pursuant to this section.
(f) Any district that places a lien on a property for water or
sewer service pursuant to this section on or before December 31,
2014, shall submit to the Assembly and Senate Committees on
Judiciary, on or before January 1, 2015, a report containing the
following information:
(1) The total number of liens created under this section for water
or sewer service and the total dollar amount of those liens.
(2) The overall effectiveness of the liens and any problems
associated with the use of those liens.
(f)
(g) The remedies in this section are cumulative and in
addition to any other remedy provided by law. The district may pursue
remedies alternatively or consecutively.
(g)
(h) This section does not apply to delinquent fees or
charges for the furnishing of electrical service.
(i) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
SEC. 2. Section 12811.1 is added to the
Public Utilities Code , to read:
12811.1. (a) A district, by resolution or ordinance, may require
the owner of record of real property within the district to pay the
fees, tolls, rates, rentals, or other charges for services rendered
to a lessee, tenant, or subtenant, and those fees, tolls, rates,
rentals, and other charges that have become delinquent, together with
interest and penalties thereon, are a lien on the property when a
certificate is filed in the office of the county recorder pursuant to
subdivision (b) and the lien has the force, effect, and priority of
a judgment lien. A lien shall not be created under this section on
any publicly owned property.
(b) A lien under this section attaches when the district files for
recordation in the office of the county recorder a certificate
specifying the amount of the delinquent fees, tolls, rates, rentals,
or other charges together with interest and penalties thereon; the
name of the owner of record of the property to which services were
rendered by the district; and the legal description of the property.
Within 30 days of receipt of payment of all amounts due, including
recordation fees paid by the district, the district shall file for
recordation a release of the lien.
(c) In filing any instrument for recordation under this section,
the district shall pay the fees specified in Sections 27361 and
27361.4 of the Government Code.
(d) The remedies in this section are in addition to any other
remedy provided by law.
(e) This section does not apply to delinquent fees or charges for
the furnishing of water or sewer service to residential property or
electrical service.
(f) This section shall become operative on January 1, 2016.
SEC. 2. SEC. 3. No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because a local agency or school district has
the authority to levy service charges, fees, or assessments
sufficient to pay for the program or level of service mandated by
this act, within the meaning of Section 17556 of the Government Code.