BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 129
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          ASSEMBLY THIRD READING
          AB 129 (Beall)
          As Introduced  January 11, 2011
          Majority vote 

           LOCAL GOVERNMENT    6-3                                         
           
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          |Ayes:|Alejo, Bradford, Campos,  |     |                          |
          |     |Davis, Gordon, Hueso      |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Smyth, Knight, Norby      |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 

           SUMMARY  :  Authorizes a city or county after notice and public 
          hearing to specially assess and record a notice of lien for any 
          fines or penalties related to ordinance violations constituting 
          a public nuisance or threat to public health and safety on the 
          real property that the fines or penalties are being assessed or 
          recorded on if the owner of the real property fails to pay those 
          fines or penalties after demand by the city or county.  
          Specifically,  this bill  :

          1)Authorizes a city or county after notice and public hearing to 
            specially assess and record a notice of lien for any fines or 
            penalties related to ordinance violations constituting a 
            public nuisance or threat to public health and safety on the 
            real property that the fines or penalties are being assessed 
            or recorded on if the owner of the real property fails to pay 
            those fines or penalties after demand by the city or county.

          2)Authorizes the assessment imposed by a city or county to be 
            collected at the same time and in the same manner as ordinary 
            county taxes are collected, and requires all laws applicable 
            to the levy, collection, and enforcement of county taxes be 
            applicable to the assessment.

          3)Provides the assessment does not constitute an assessment 
            lien, and does not constitute a lien on real property until a 
            notice of lien is recorded, pursuant to these provisions.

          4)Requires the notice of lien to, at a minimum, do all of the 








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            following:

             a)   Identify the assessor's parcel number and record owner;

             b)   Set forth the last known address of the record owner;

             c)   Set forth the date on which the assessment was ordered 
               by the city or county; and, 

             d)   The amount of the lien.

          5)Provides the recordation of a notice of lien has the same 
            effect as recordation of an abstract of a money judgment, as 
            recorded according to provisions in the California Code of 
            Civil Procedure.

          6)Provides the lien created has the same force, effect, and 
            priority as a judgment lien on real property, and, upon order 
            of the city, county, or any officer authorized by the city or 
            county to act on its behalf, the lien may be released or 
            subordinated in the same manner as a judgment lien on real 
            property may be released or subordinated.
          7)Authorizes a city or county through an ordinance to combine 
            the administrative procedures adopted for the imposition, 
            enforcement, collection, and administrative review for 
            administrative fines or penalties related to the violation of 
            any ordinance with nuisance abatement procedures that are 
            adopted through ordinance.

          8)Authorizes a city, county, school district, municipal 
            corporation, district, political subdivision, or any board, 
            commission, or agency thereof, or other local public agency to 
            appoint one or more hearing officers to hear and decide issues 
            regarding ordinance violations and the imposition of fines and 
            penalties.

           EXISTING LAW  :

          1)Permits the legislative body of a city, county, school 
            district, municipal corporation, district, political 
            subdivision, or any board, commission, or agency thereof, or 
            other local public agency to make any violation of any 
            ordinance enacted by the legislative body subject to an 
            administrative fine or penalty.








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          2)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.

          3)Allows a county board of supervisors to delegate its powers 
            and duties to establish a nuisance abatement procedure to a 
            hearing officer pursuant to statutory provisions governing 
            hearing officers.

           FISCAL EFFECT  :  None

           COMMENTS  :  SB 814 (Alquist and Kopp), Chapter 898, Statutes of 
          1995, which added Government Code Section 53069.4, was intended 
          to facilitate the implementation of the Administrative Citation 
          Ordinance as an efficient code enforcement methodology that 
          would avoid the necessity of a criminal prosecution.  
          Specifically, Government Code Section 53069.4 was written to 
          allow administrative citations to closely mirror the parking 
          citation program.  Subsequent amendments to that code section 
          dealt with accommodating changes in the municipal and superior 
          courts.

          Under existing law, cities and counties are authorized to 
          establish by ordinance a procedure to collect nuisance abatement 
          costs and related administrative costs by a nuisance abatement 
          lien or a special assessment.  At one point, there was a concern 
          that special assessments for the purpose of collecting the costs 
          of nuisance abatement were too slow a process for cities and 
          counties and were frustrating for private lenders.  
          Alternatively, abatement liens were seen as a viable way to 
          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.

          According to the author, this bill is intended to allow local 
          governments to make their code enforcement processes more 
          efficient and effective by authorizing them to make unpaid fine 
          and penalties for property-related code violations by a special 
          assessment against the property, allowing them to streamline 
          their code enforcement processes by combining their fine and 








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          penalties and nuisance abatement processes.  This bill also will 
          allow for a more streamlined process for hearing officers for 
          these administrative procedures.  The author says existing law 
          allows counties to use hearing officers, but imposes certain 
          procedural and substantive requirements that make the use of 
          hearing officers more onerous and expensive.

          AB 2613 (Beall) of 2010 contained identical provisions.  The 
          Assembly Local Government Committee passed AB 2613 on a 6-3 
          vote.  The Governor vetoed AB 2613, saying:

          "It is important that the due process rights of homeowners are 
          balanced against a local government's right to collect an 
          ordinance violation fine.  The current system that requires a 
          local government to seek judicial approval to impose a lien 
          properly balances these opposing interests."

          AB 2317 (Saldana) of 2010 contained similar provisions by 
          authorizing cities and counties to collect fines related to 
          nuisance abatement using a nuisance abatement lien or a special 
          assessment.  The Assembly Local Government Committee passed AB 
          2317 on a 6-2 vote.  AB 2317 was vetoed by the Governor with a 
          message similar to AB 2613.

          Support arguments:  Supporters, County of Santa Clara, say, 
          allowing local agencies to use hearing officers and combine 
          their administrative fine/penalty and nuisance abatement 
          processes, streamlines code enforcement procedures.  Also, 
          chronic and unresolved code enforcement situations could be 
          addressed quickly and efficiently under this bill.

          Opposition arguments:  Opposition, California Taxpayers 
          Association, say liens are a powerful tool that should only be 
          used in the most limited circumstances.  Expanding the 
          liabilities for which a lien may be imposed to fines could 
          incentivize local governments to increase fines and set a 
          precedent for further expanding special assessments and liens.  


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


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