BILL NUMBER: AB 2069	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 10, 2012

INTRODUCED BY   Assembly Member Solorio

                        FEBRUARY 23, 2012

   An act to amend Sections 5473.8, 5473.11, and 5474.6 of the Health
and Safety Code, and to amend Section 37212 of the Water Code,
relating to property-related service charges.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2069, as amended, Solorio. Sanitation, sewerage, and water
charges: collection.
   Existing law authorizes various local public entities to prescribe
fees or other charges for services and facilities furnished by them
in connection with their water, sanitation, storm drainage, or
sewerage system, as well as for the privilege of connecting to these
sanitation or sewerage facilities. These charges, under specified
circumstances, may be collected on the tax roll in the same manner as
property taxes and the amount of the charges constitutes a lien
against the lot or parcel against which the charge has been imposed,
unless the real property has been transferred or conveyed to a bona
fide purchaser for value, or a lien of a bona fide encumbrancer for
value has been created and attached prior to the date upon which the
first installment of the property taxes would become delinquent.
   This bill would instead require the transfer, conveyance, or
attachment to occur during the year  preceding  
prior to  the date on which the first installment of property
taxes that evidence the charges appears on the tax roll, in order to
preclude the local public entity's lien from attaching to the real
property of the bona fide purchaser or encumbrancer for value.
   Existing law requires the charges for the above described services
and facilities to remain delinquent for 60 days and the imposing
entity to provide the assessee with notice of the delinquency, in
order for the charges to constitute a lien against the lot or parcel
of land for which the service was provided.
   This bill would delete the 60 day delinquency and notice
requirements and, instead, authorize the amount of unpaid charges to
be secured at any time by filing a specified certificate in the
office of the county recorder. This bill would provide that the
amount required to be paid, with interest and a penalty, constitutes
a lien on all real property owned by the person or afterwards
acquired by him or her before the lien expires.
   Existing law provides procedures for the collection of unpaid
charges by a water district for water or other services. These unpaid
charges become a lien on the parcel of land upon which the water and
other services were used, unless the real property has been
transferred or conveyed to a bona fide purchaser for value, or a lien
of a bona fide encumbrancer for value has been created and attached
prior to the date of which the first installment of taxes would
become delinquent.
   This bill would require the transfer, conveyance, or attachment to
occur during the year  preceding   prior to
 the date on which the first installment of real property taxes
that evidence the charges appears on the tax roll, in order for the
water district's lien to not attach to the real property of the bona
fide purchaser or encumbrancer for value.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 5473.8 of the Health and Safety Code is amended
to read:
   5473.8.  All laws applicable to the levy,  collection
  collection,  and enforcement of general taxes of
the entity, including, but not limited to, those pertaining to the
matters of delinquency, correction, cancellation, refund and
redemption, are applicable to the charges authorized pursuant to this
article, except  that   that,  if any real
property to which these charges relate has been transferred or
conveyed to a bona fide purchaser for  value,  
value  or  if  a lien of a bona fide 
encumbracer   encumbrancer  for value has been
created and attaches  thereon,   thereon 
during the year prior to the date on which the first installment of
the general taxes that include the charges  that appear
  appears  on the assessment roll, then the lien
which would otherwise be imposed by Section 5473.5 shall not attach
to the real property and the charges relating to this property shall
be transferred to the unsecured roll of collection.
  SEC. 2.  Section 5473.11 of the Health and Safety Code is amended
to read:
   5473.11.  (a) An entity shall notify the assessee shown on the
latest equalized assessment roll whenever delinquent and unpaid
charges for services which would become a lien on the property
pursuant to subdivision (b) remain delinquent and unpaid for 60 days.

   (b) The amount of the unpaid charges may, in the discretion of the
 district   entity  , be secured at any
time by filing for record in the office of the county recorder of any
county, a certificate specifying the amount of the unpaid charges
and the name and address of the person liable  therefore
  therefor  . From the time of recordation of the
certificate, the amount required to be paid together with interest
and  a  penalty constitutes a lien upon all real
property in the county owned by the person or afterwards, and before
the lien expires, acquired by him or her. The lien shall have the
force, priority, and effect of a judgment lien and shall continue for
10 years from the date of the filing of the certificate unless
sooner released or otherwise discharged. The lien may, within 10
years from the filing of the certificate or within 10 years from the
date of the last extension of the lien in the manner herein provided,
be extended by filing for record a new certificate in the office of
the county recorder of any county and from the time of this filing
the lien shall be extended to the real property in this county for 10
years unless sooner released or otherwise discharged.
  SEC. 3.  Section 5474.6 of the Health and Safety Code is amended to
read:
   5474.6.  (a) The tax collector shall include the amounts of the
installments of fees or charges and the interest on bills for taxes
levied against the respective lots and parcels of land. Thereafter,
all laws applicable to the levy, collection and enforcement of taxes
of the entity, including penalties and interest thereon and
cancellation or refund thereof, shall be applicable to those
installments of fees or charges and interest, except that  if
 ,  during the year preceding the date on which the
first installment of real property taxes which evidence the fees or
charges appears on the roll,   if  any real
property to which the fees or charges relate has been transferred or
conveyed to a bona fide purchaser for  value,  
value  or  if  a lien of a bona fide
encumbrancer for value has been created and attaches 
thereon,   thereon during the year  prior to the
date on which the first installment of  those  
the general  taxes  would become delinquent 
 that include the fees or charges appears on the assessment roll
 , then the lien which would otherwise be imposed by Section
5474.5 shall not attach to  such   the 
real property and the fees or charges and interest shall be
transferred to the unsecured roll for collection.
   (b) The amount of the unpaid installments of fees or charges and
interest may, in the discretion of the entity, be secured at any time
by filing for record in the office of the county recorder of any
county, a certificate specifying the amount of the fees or charges
and interest and the name and address of the person liable 
therefore   therefor  . From the time of
recordation of the certificate, the amount required to be paid
together with interest and penalty constitutes a lien upon all real
property in the county owned by the person or afterwards, and before
the lien expires, acquired by him or her. The lien  has
  shall have  the force, priority, and effect of a
judgment lien and shall continue for 10 years from the date of the
filing of the certificate unless sooner released or otherwise
discharged. The lien may, within 10 years from the filing of the
certificate or within 10 years from the date of the last extension of
the lien in the manner herein provided, be extended by filing for
record a new certificate in the office of the county recorder of any
county and from the time of this filing the lien shall be extended to
the real property in this county for 10 years unless sooner released
or otherwise discharged.
  SEC. 4.  Section 37212 of the Water Code is amended to read:
   37212.  In case any charges for water or other services, or
either, remain unpaid:
   (a) If unpaid for 60 days or more on July 1st, the district board
may, by resolution, order the secretary to do each of the following:
   (1) Prepare a list of the parcels of land upon which water and
other services, or either, requested in writing by the owner of the
property, was used, and for which the charges remain unpaid.
   (2) Certify that the list is true and correct.
   (3) Submit the list of unpaid charges and parcels to the county
auditor no later than five days after the estimate of the district
board was furnished pursuant to Section 37206.
   Upon receipt by the county auditor of the list and a certified
copy of the resolution, the amount of the unpaid charges attributed
to each parcel mentioned in the list shall constitute a special
assessment against the parcel, and shall be a lien on that property
for that amount. The lien attaches upon recordation in the office of
the county recorder of the county in which the property is situated
of a certified copy of the resolution of the district board
accompanied by a certified copy of the list specifically describing
the real property by a legal description or reference to an assessor'
s parcel number and specifying the amount applicable to each parcel.
The assessment shall be collected at the same time and in the same
manner as ordinary municipal ad valorem taxes are collected, and
shall be subject to the same penalties, and the same procedure and
sale in case of delinquency as provided for the taxes. All laws
applicable to the levy,  collection  
collection,  and enforcement of municipal ad valorem taxes shall
be applicable to the assessment, except that  if  ,
 during the year preceding the date on which the first
installment of real property taxes which evidence the charges appears
on the roll,   if  any real property to which the
lien would attach has been transferred or conveyed to a bona fide
purchaser for  value,   value  or 
if  a lien of a bona fide encumbrancer for value has been
created and attached  thereon,   thereon during
the year  prior to the date on which the first installment of
the taxes  would become delinquent   that
include the assessment appears on the   assessment roll
 , then the lien which would otherwise be imposed by this
section shall not attach to  such   the 
real property and the delinquent and unpaid charges, as certified,
relating to the property shall be transferred to the unsecured roll
for collection.
   The county shall deduct from the charges collected an amount
sufficient to compensate the county for costs incurred in collecting
the delinquent and unpaid charges. The amount of this compensation
shall be fixed by agreement between the board of supervisors and the
district's board of directors.
   (b) The amount of the unpaid charges may, in the discretion of the
district, be secured at any time by filing for record in the office
of the county recorder of any county, a certificate specifying the
amount of the charges and the name and address of the person liable
therefor.
   From the time of recordation of the certificate, the amount
required to be paid together with interest and penalty constitutes a
lien upon all real property in the county owned by the person or
afterwards, and before the lien expires, acquired by him or her. The
lien has the force, priority, and effect of a judgment lien and shall
continue for 10 years from the date of the filing of the certificate
unless sooner released or otherwise discharged. The lien may, within
10 years from the filing of the certificate or within 10 years from
the date of the last extension of the lien in the manner herein
provided, be extended by filing for record a new certificate in the
office of the county recorder of any county and from the time of the
filing the lien shall be extended to the real property in this county
for 10 years unless sooner released or otherwise discharged.