BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 1642|
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                                    CONSENT


          Bill No:  AB 1642
          Author:   Gordon (D), et al.
          Amended:  3/29/12 in Assembly
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  5-0, 6/19/12
          AYES:  Evans, Harman, Blakeslee, Corbett, Leno
           
          ASSEMBLY FLOOR  :  72-0, 4/23/12 - See last page for vote


          SUBJECT  :    County recorder:  recordation of documents

           SOURCE  :     Santa Clara County Board of Supervisors


           DIGEST  :    This bill repeals the existing acknowledgment 
          required for a notice of intent to preserve interest in 
          real property to instead require use of the general 
          acknowledgment form.  This bill also authorizes a county 
          recorder to record a real property document that is 
          required by a local ordinance to be recorded.

           ANALYSIS  :    Existing law requires a county recorder, upon 
          payment of proper fees and taxes, to accept for recordation 
          any instrument, paper, or notice that is authorized or 
          required by statute or court order to be recorded, if the 
          instrument, paper, or notice contains sufficient 
          information to be indexed as provided by statute, meets 
          recording requirements of state statutes and local 
          ordinances, and is photographically reproducible.  Existing 
          law prohibits a county recorder from refusing to record any 
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          instrument, paper, or notice that is authorized or required 
          by statute or court order to be recorded on the basis of 
          its lack of legal sufficiency.  (Government Code (GOV) 
          Section 27201(a))
          This bill requires a county recorder to accept for 
          recordation any instrument, paper, or notice that is 
          authorized or required to be recorded by a local ordinance 
          that relates to the recordation of any instrument, paper, 
          or notice that relates to real property.

          This bill prohibits a county recorder from refusing to 
          record any instrument, paper, or notice that is authorized 
          by local ordinance that relates to the recordation of any 
          instrument, paper, or notice that relates to real property 
          to be recorded based on its lack of legal sufficiency.

          Existing law provides that, if the time within which an 
          interest in real property expires depends upon recordation 
          of a notice of intent to preserve the interest, a person 
          may preserve the person's interest from expiration by 
          recording a notice of intent to preserve the interest 
          before the interest expires.  (Civil Code (CIV) Section 
          880.310 (a))

          Existing law provides that recordation of a notice of 
          intent to preserve an interest in real property creates a 
          presumption affecting the burden of proof that the person 
          who claims the interest has not abandoned and does not 
          intend to abandon the interest.  (CIV Section 880.310 (b))

          Existing law provides that a notice of intent to preserve 
          an interest in real property may be recorded by any of the 
          following persons:  (1) a person who claims the interest; 
          or (2) another person acting on behalf of a claimant if the 
          person is authorized to act on behalf of the claimant or if 
          the claimant is one of a class whose identity cannot be 
          established or is uncertain at the time of recording the 
          notice of intent to preserve the interest.  (CIV Section 
          880.320)

          Existing law provides that, subject to all statutory 
          requirements for recorded documents, a notice of intent to 
          preserve an interest in real property shall contain the 
          following acknowledgment of the identity of the subscribing 

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          individual or entity:

             State of
             ___________________,
             County of _________________,
             ss.
             On this _____ day of ________, in the year _____, before 
             me (here insert name and quality of officer), personally 
             appeared ______________, personally known to me (or 
             proved to me on the basis of satisfactory evidence) to 
             be the person whose name is subscribed to this 
             instrument, and acknowledged that he (she or they) 
             executed it.
             Signed:                       Official Seal:
             Office:
             (Civ. Code Sec. 880.340.)

          Existing law provides that, unless the document to be 
          recorded is otherwise provided for by statute, as 
          specified, before an instrument can be recorded its 
          execution shall be acknowledged by the person executing it, 
          or if executed by a corporation, by its president or 
          secretary or other person executing it on behalf of the 
          corporation, or, except for any power of attorney, 
          quitclaim deed, or grant deed other than a trustee's deed 
          or a deed of reconveyance, mortgage, deed of trust, or 
          security agreement, proved by subscribing witness or as 
          otherwise specified, and the acknowledgment or proof 
          certified as prescribed by law.  (GOV Section 27287)

          Existing law requires a person acknowledging an instrument 
          to verify, as specified, the identity of a subscribing 
          individual or entity to the instrument to be recorded.  
          (GOV Section 1185) 

          Existing law provides that any certificate of 
          acknowledgment taken within this state shall be in a 
          prescribed form and include the following information:

             State of California  )
             County of___________ )
             On______________________________________before me, (here 
             insert name and title of the officer), personally 
             appeared_____________________________, who proved to me 

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             on the basis of satisfactory evidence to be the 
             person(s) whose name(s) is/are subscribed to the within 
             instrument and acknowledged to me that he/she/they 
             executed the same in his/her/their authorized 
             capacity(ies), and that by his/her/their signature(s) on 
             the instrument the person(s), or the entity upon behalf 
             of which the person(s) acted, executed the instrument.
             I certify under PENALTY OF PERJURY under the laws of the 
             State of California that the foregoing paragraph is true 
             and correct.
             WITNESS my hand and official seal.
             Signature________________________________  (Seal)  (Civ. 
             Code Sec. 1189(a)(1).)

          This bill repeals the existing acknowledgment form for a 
          notice of intent to preserve interest and instead require 
          the notice of intent to contain a certificate of 
          acknowledgment.

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

           SUPPORT  :   (Verified  6/21/12)

          Santa Clara County Board of Supervisors (source)
          AFSCME
          California State Association of Counties
          County Recorders' Association of California
          League of California Cities

           ARGUMENTS IN SUPPORT  :    The author writes:
          
             Until recently, California Government Code Section 
             27201(a) has authorized the recordation of an NOV 
             �Notice of Violation].  Until last year, many 
             clerk-recorders around the state relied on an Attorney 
             General Opinion (63 Ops.Cal.Atty.Gen. 905) stating that, 
             for the purpose of interpreting Section 27201, the word 
             "statute" includes local ordinances.  

             However, a recent unpublished case out of the Sixth 
             District Court of Appeal holding otherwise, has cast 
             doubt on the legality of recording NOVs.  In County of 
             Santa Cruz v. Carrick (2011 WL 1466491), the court held 

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             that a local ordinance is not a "statute" for purposes 
             of Section 27201 and, thus, a county (or city) is not 
             authorized to record an NOV.  The holding in this case 
             is problematic, because it calls into question whether 
             NOVs authorized by local ordinance may be recorded and 
             if they are recorded whether they are valid.  
             Ultimately, if state law does not recognize the 
             authority of counties and cities to record NOVs pursuant 
             to local ordinances then current or future property 
             owners will not be notified when there are existing code 
             violations on a property.  AB 1642 addresses this 
             problem.

             Further, there is another provision in this bill which 
             relates to the recordation of Notices of Intent to 
             Preserve Interest.  Civil Code Section 880.340 is a 
             statutory "format" guideline for a Notice of Intent to 
             Preserve Interest.  County recorders have determined 
             that this statute conflicts with Government Code Section 
             27287 which contains a statutory requirement for 
             acknowledgement execution prior to recording.  The 
             section states that the acknowledgement used follow 
             Section 1189 or 1199 of the Civil Code.  Section 27287 
             also contains exceptions to the requirement, but a 
             Notice of Intent to Preserve Interest is not included as 
             an exception.  Thus, county recorders are concerned that 
             the language in Section 880.340 would be a violation of 
             Government Code Section 27287 because it does not follow 
             Civil Code 1189.  This provision clarifies Section 
             880.340 so that recordations of Notices of Intent to 
             Preserve Interest follow the statutory requirement in 
             Government Code 27287 by including an acknowledgement 
             that is incompliance with Civil Code 1189.


           ASSEMBLY FLOOR  :  72-0, 4/23/12
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Buchanan, Butler, Campos, Carter, Chesbro, Conway, Cook, 
            Dickinson, Donnelly, Eng, Feuer, Fong, Fuentes, Beth 
            Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, 
            Hagman, Halderman, Hall, Harkey, Hayashi, Roger 
            Hern�ndez, Hill, Huber, Hueso, Huffman, Jeffries, Jones, 
            Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, 

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            Mendoza, Miller, Mitchell, Monning, Morrell, Nielsen, 
            Norby, Olsen, Pan, Perea, V. Manuel P�rez, Portantino, 
            Silva, Skinner, Solorio, Swanson, Torres, Valadao, 
            Wagner, Wieckowski, Williams, Yamada, John A. P�rez
          NO VOTE RECORDED:  Brownley, Charles Calderon, Cedillo, 
            Davis, Fletcher, Furutani, Nestande, Smyth


          RJG:k  6/21/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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