Amended in Senate May 6, 2014

Amended in Senate April 23, 2014

Amended in Senate April 10, 2014

Senate Bill No. 1214

Introduced by Senator Anderson

February 20, 2014

An act to amend Sections begin delete 16181 and 16211 end delete begin insert 16181, 16210, 16211, 16211.5, end insert of, to repeal begin delete Section 16213 end delete begin insert Sections 16212, 16213, and 16214 end insert of, and to repeal and add Section 16180 of, the Government Code, and to amend Sections begin insert 2515, end insert 3375, begin insert 20583, end insert 20584, begin insert 20621, end insert 20622, 20645.5, and 20645.6 of, to amend and repeal Section 20623 of, begin delete and end delete to add Section 3376 to, begin insert and to repeal and add Sections 2514 and 20602 of, end insert the Revenue and Taxation Code, relating to state government, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

SB 1214, as amended, Anderson. State Controller: property tax postponement.

The Senior Citizens and Disabled Citizens Property Tax Postponement Law, until February 20, 2009, authorized a claimant, as defined, to file a claim with the Controller to postpone the payment of ad valorem property taxes, where household income, as defined, did not exceed specified amounts. That law authorized the Controller, upon approval of the claim, to either make payment directly to specified entities, or to issue the claimant a certificate of eligibility that constituted a written promise of the state to pay the amount specified on the certificate, as provided. That law required these payments to be made out of specified funds appropriated to the Controller, as specified, and also required certain repaid property tax postponement payments to be paid into an impound account and transferred, as specified, to the General Fund.

Existing law, on and after February 20, 2009, prohibits a person from filing a claim for postponement, and prohibits the Controller from accepting applications for postponement, under the Senior Citizens and Disabled Citizens Property Tax Postponement Law.

This bill would make inoperative the prohibition against a person filing a claim for postponement and the Controller from accepting applications for postponement under the program as of July 1, 2016, and would repeal these provisions on January 1, 2017.

The bill would create in the State Treasury a Senior Citizens and Disabled Citizens Property Tax Postponement Fund and would require the fund to be an interest bearing fund. The bill would require that repaid property tax postponement payments be begin delete transferred from the impound account to, or be end delete directly deposited begin delete into, end delete begin insert into end insert the newly created fund. The bill would also require any remaining impound account funds as of January 1, 2015, to be transferred into the newly created fund. The bill would continuously appropriate these funds to the Controller for purposes of administering the property tax postponement program, as specified.

begin insert

Existing law requires a tax collector to notify the Controller, as directed, of all property subject to a recorded notice of lien for postponed property taxes that becomes tax defaulted subsequent to the date of entry on the secured roll of specified information or becomes subject to collection procedures.

end insert begin insert

This bill would, instead, require a tax collector or assessor, as applicable, to notify the Controller, within 60 days, as directed, of all property subject to such a recorded notice that becomes tax defaulted subsequent to the date of entry on the secured roll of specified information, or where the claimant has transferred ownership of residential dwelling or there has been a change of mailing address, or the claimant has been determined to be deceased.

end insert

Existing law requires the Controller to maintain a record of all properties against which a notice of lien for postponed property taxes has been recorded, and upon written request of any person or entity, as specified, issue a written statement of lien status, as provided. Existing law authorizes the Controller to establish a reasonable fee, not to exceed $10, for the provision of the statement of lien status.

This bill would increase the limitation on the amount of the fee the Controller is authorized to establish for providing the statement of lien status from $10 to $30.

Existing law requires that the owners equity interest in the residential dwelling be at least 20% of the full value of the property in order to be eligible to participate in the postponement program.

This bill would increase the equity requirement to at least 40%. begin insert The bill would make conforming changes to related provisions. end insert

Existing law requires a claim for postponement to be filed after May 15 of the calendar year in which the postponement is claimed, and on or before December 10 of that fiscal year.

This bill would instead require a claim for postponement to be filed after September 1 of the fiscal year in which postponement is claimed, and on or before April 10 of that fiscal year.

Existing law requires, if a postponement claim, as specified, is filed timely but before the delinquency date of the first or 2nd installment of property taxes, that any delinquent penalties and interest for the fiscal year be canceled unless the failure to perfect the claim was due to willful neglect on the part of the claimant or representative, in which case the certificates of eligibility for the fiscal year can be used to pay delinquent taxes only if accompanied by sufficient amounts to pay the delinquent interest and penalties.

This bill would instead require, if a postponement claim is filed timely before the delinquency date of the 2nd installment of property taxes on the secured roll, that any delinquent penalties, costs, fees, and interest accrued for the fiscal year be canceled. The bill would instead require, in the event of willful neglect to perfect the claim, that an electronic funds transfer for that current fiscal year be used to pay the delinquent taxes only if the amount is sufficient to pay delinquent penalties, costs, fees, and interest. The bill would authorize the tax collector, if the payment amount sufficient to pay all of the delinquent penalties, costs, fees, and interest is not received by the tax collector within 30 days from the date of the electronic funds transfer, to return the electronic funds transfer to the Controller to deny the postponement claim. The bill would require the Controller to provide a specified notification to the claimant and a copy of the notification to the tax collector. begin insert The bill would require the Controller, upon approval of a claim, to make payments directly to a county tax collector for the property taxes owed on behalf of a qualified claimant. The bill would revise existing provisions relating to certificates of eligibility and warrants to conform to the electronic funds transfer provisions. end insert

The bill would also require the Controller, upon written request of the tax collector, to provide the tax collector with information that is required for the preparation and enforcement of the sale of tax-defaulted property, and would require the tax collector or his or her designee to certify, under penalty of perjury, that the information is requested for these purposes. The bill would also provide that any information provided to the tax collector is not a public record and is not open to public inspection. By requiring the tax collector to make a certification under penalty of perjury, the bill would expand the crime of perjury, thereby imposing a state-mandated local program.

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

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: ²⁄₃. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

Section 16180 of the Government Code is
repealed.

SEC. 2.  

Section 16180 is added to the Government Code, to
read:

16180.  

(a) There is hereby created in the State Treasury a
Senior Citizens and Disabled Citizens Property Tax Postponement
Fund, which shall be an interest bearing fund. Subject to
subdivision (b) and notwithstanding Section 13340, the fund is
continuously appropriated to the Controller, commencing January
1, 2015, for purposes of administering this chapter, including, but
not limited to, necessary administrative costs and disbursements
relating to the postponement of property taxes pursuant to the
Senior Citizens and Disabled Citizens Property Tax Postponement
Law (Chapter 2 (commencing with Section 20581) of Part 10.5 of
Division 2 of the Revenue and Taxation Code).

(b) The Controller shall transfer any moneys in the fund in
excess of ten million dollars ($10,000,000) to the General Fund.

(c) Any loan repayments relating to the Senior Citizens and
Disabled Citizens Property Tax Postponement Law begin delete that are not
deposited into an impound account, as described in Section 16210
or 16211.5, end delete shall be deposited into the Senior Citizens and Disabled
Citizens Property Tax Postponement Fund.

(d) Any impound account funds remaining as of January 1,
2015, shall be transferred into the Senior Citizens and Disabled
Citizens Property Tax Postponement Fund.

SEC. 3.  

Section 16181 of the Government Code is amended
to read:

16181.  

(a) The Controller shall maintain a record of all
properties against which a notice of lien for postponed property
taxes has been recorded. The record shall include, but not be
limited to, the names of each claimant, a description of the real
property against which the lien is recorded, the identification
number of the notice of lien assigned by the Controller, and the
amount of the lien.

(b) The Controller shall maintain a record of all properties
against which the Department of Housing and Community
Development has been notified to withhold the transfer of title.
The record shall include, but not be limited to, the names of each
claimant, a description of the mobilehome against which a lien is
charged, and the amount of the lien.

(c) Upon written request of any person or entity, or the agent
of either, having a legal or equitable interest in real property or a
mobilehome which is subject to a lien for postponed taxes, the
Controller shall within 10 working days following receipt of the
request issue a written statement showing the amount of the
obligation secured by the lien as of the date of such statement and
such other information as will reasonably enable the person or
entity, or the agent of either, to determine the amount to be paid
the Controller in order to obtain a certificate of release or discharge
of the lien for postponed taxes.

(d) The Controller shall adopt regulations necessary to
implement the provisions of this chapter and may establish a
reasonable fee, not to exceed thirty dollars ($30), for the provision
of the statement of lien status provided for herein.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 16210 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

16210.  

begin delete In the event that end delete begin insert If end insert the amount secured by the state’s
lien provided for in Article 1 (commencing with Section 16180)
is paid by reason of the sale or condemnation of the property on
which the lien attaches, the funds begin delete so end delete received shall be placed in
begin delete an impound account for a period of six months. In connection with
the establishment of such an account, the Controller shall release
the state’s lien in the manner prescribed by Section 16186. end delete begin insert the
Senior Citizens and Disabled Citizens Property Tax Postponement
Fund. end insert

begin delete SEC. 4. end delete
begin insert SEC. 5. end insert   

Section 16211 of the Government Code is amended
to read:

16211.  

(a) The claimant under Chapter 2 (commencing with
Section 20581), Chapter 3 (commencing with Section 20625),
Chapter 3.3 (commencing with Section 20639, or Chapter 3.5
(commencing with Section 20640)) of Part 10.5 of Division 2 of
the Revenue and Taxation Code whose residential dwelling was
sold or condemned may draw upon the amount in the account to
purchase a new residential dwelling, and the amount so drawn
shall be secured by a new lien against the new residential dwelling
from the time the Controller records the new lien against the new
residential dwelling as provided for under Section 16182.

(b) In the case of real property, the Controller shall subordinate
the new lien to the lien of the note and deed of trust of the purchase
money obligations used in the acquisition of the new residential
dwelling, provided the claimant has an equity of at least 40 percent
of the full value of the property, as required by paragraph (1) of
subdivision (b) of Section 20583 of the Revenue and Taxation
Code, prior to recordation of that subordination. The lien shall
have priority over all subsequent liens, except as provided in
Section 2192.1 of the Revenue and Taxation Code.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 16211.5 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

16211.5.  

(a)  begin delete In the event that end delete begin insert If end insert the real property securing the
state’s lien provided for in Article 1 (commencing with Section
16180) is the residential dwelling of a claimant under Chapter 2
(commencing with Section 20581) of Part 10.5 of Division 2 of
the Revenue and Taxation Code and is voluntarily sold, the funds
derived from the voluntary sale of the residential dwelling shall
be placed in begin delete an impound account for a period of six months. In
connection with the establishment of such account, end delete begin insert the Senior
Citizens and Disabled Citizens Property Tax Postponement Fund.
At that time, end insert the Controller shall release the state’s lien in the
manner prescribed by Section 16186.

(b) The claimant under Chapter 2 (commencing with Section
20581) of Part 10.5 of Division 2 of the Revenue and Taxation
Code whose residential dwelling was voluntarily sold begin delete may end delete begin insert shall
not end insert draw upon the amount in the begin delete account to purchase a new
residential dwelling, and the amount so drawn shall be secured by
a new lien against the new residential dwelling from the time the
Controller records the new lien against the new residential dwelling
as provided for under Section 16182. end delete

begin delete The Controller shall subordinate such new lien to the note and
deed of trust of the purchase money obligations used in the
acquisition of the new residential dwelling, provided the claimant
has an equity of at least 20 percent of the full value of the property,
as required by paragraph (1) of subdivision (b) of Section 20583
of the Revenue and Taxation Code, prior to recordation of such
subordination. Such lien shall have priority over all subsequent
liens, except as provided in Section 2192.1 of the Revenue and
Taxation Code. end delete begin insert Senior Citizens and Disabled Citizens Property
Tax Postponement Fund. end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 16212 of the end insert begin insert Government Code end insert begin insert is repealed. end insert

begin delete

16212.  

An amount drawn pursuant to Section 16211 or 16211.5
shall be treated as an amount paid pursuant to Section 16180 for
all purposes of this chapter.

end delete

begin delete SEC. 5. end delete
begin insert SEC. 8. end insert   

Section 16213 of the Government Code is repealed.

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 16214 of the end insert begin insert Government Code end insert begin insert is repealed. end insert

begin delete

16214.  

All moneys in an impound account created pursuant to
this article are continually appropriated to the Controller for the
purposes of this article.

end delete

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 2514 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

2514.  

(a) Upon receipt of a certificate of eligibility described
in Section 20602, Section 20639.6, or Section 20640.6 signed by
the claimant, the claimant’s spouse, or authorized agent appointed
under regulations adopted by the Controller pursuant to Section
20603 or Section 20640.7, the tax collector shall ascertain whether
the amount of money entered on the certificate by such claimant
or agent, when added to other amounts available for such purpose,
are sufficient to pay the amount due and owing.

If such is the case, the tax collector or his or her designee shall
countersign the certificate and mark the tax paid. Once signed and
countersigned, a certificate of eligibility shall be deemed a
negotiable instrument for purposes of all laws of this state, as
specified in subdivision (d) of Section 20602. Upon acceptance
of such a certificate:

(1) The tax collector shall enter the fact that taxes on the
property have been postponed in appropriate columns on the roll.
In the case of the secured roll, this information may be entered in
that portion of the roll which has been designated for tax default
information required by Section 3439.

(2) In the case of a certificate of eligibility issued pursuant to
Section 20602, the tax collector shall determine if the property
described in the certificate of eligibility is subject to a lien recorded
pursuant to Section 16182 of the Government Code. If the property
is not subject to such a lien, the tax collector shall enter the amount
paid by use of the certificate, the date of such payment, the
Controller’s identification number shown on the certificate of
eligibility, the address of the property covered by the certificate,
and the name of the claimant as shown on the certificate on a
“notice of lien for postponed property taxes” form which shall be
provided by the Controller. The tax collector shall thereafter
forward such notice of lien form to the assessor.

(3) With respect to a claimant whose property taxes are paid by
a lender from an impound, trust, or other type of account described
in Section 2954 of the Civil Code, the tax collector shall notify
the auditor of the claimant’s name and address, and the amount of
money entered on the certificate.

The auditor, treasurer, or disbursing officer shall send a check
in the amount of money entered on the certificate to said claimant
within 30 days following the date on which the installment is paid
by the lender or the certificate of eligibility is received from the
claimant, whichever is later.

(b) The procedures established by this chapter shall not be
construed to require a lender to alter the manner in which a lender
makes payment of the property taxes of such claimant.

(c) Notwithstanding any other provision in this section, any
action required of a local agency by this section in order to give
effect to the Senior Citizens Mobilehome Property Tax
Postponement Law (Chapter 3.3 (commencing with Section 20639)
of Part 10.5 of Division 2, and that has been determined by the
Commission on State Mandates to be a reimbursable mandate,
shall be optional.

end delete

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 2514 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 2514. end insert   

(a) With respect to a claimant whose property taxes are
paid by a lender from an impound, trust, or other type of account
described in Section 2954 of the Civil Code, the tax collector shall
notify the auditor of the claimant’s name and address, and the
duplicate amount of money the Controller transferred to the tax
collector via an electronic funds transfer. The county auditor,
treasurer, or disbursing officer shall send a check in the amount
of money based on the electronic funds transfer by the Controller,
to the Controller, within 60 days following the date on which the
installment is paid by the lender.

(b) The procedures established by this chapter shall not be
construed to require a lender to alter the manner in which a lender
makes payment of the property taxes of the claimant.

end insert

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 2515 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
amended to read: end insert

2515.  

(a) Upon receipt of a “notice of lien for postponed
property taxes” from the tax collector, the assessor shall
immediately:

(1) Enter, on the notice of lien, a description of the real property
for which the taxes have been paid by use of a certificate of
eligibility pursuant to Section 2514. Such description shall be a
“metes and bounds,” “lot-block-tract,” or such other description
as is determined by the Controller to sufficiently describe the real
property for the purpose of securing the state’s lien.

(2) Enter on the notice of lien, the names of all record owners
of the property described under subdivision (a) of this section, as
disclosed by the assessor’s records.

(3) Upon entry of the information required by begin delete subdivisions (a)
and (b) of this section end delete begin insert paragraphs (1) and (2) end insert on the notice of lien,
the assessor shall immediately forward the notice of lien to the
county recorder.

(4) Enter on the assessment records applicable to begin delete such end delete begin insert the end insert
property, the fact that the taxes on the property have been
postponed and the Controller’s identification number, begin delete and shall, end delete
begin insert and, end insert when begin delete such end delete begin insert the end insert record reveals a change in the ownership status
of the property subsequent to the date of entry of the postponement
information thereon, begin insert shall end insert notify the begin delete Controller end delete begin insert Controller, within
60 days of receiving notification, end insert of begin delete such end delete begin insert that end insert change in the
ownership status in the manner prescribed by the Controller.

(b) From the time of recordation of the notice of lien pursuant
to Section 16182 of the Government Code, the lien for postponed
property taxes shall be deemed to impart constructive notice of
the contents thereof to subsequent purchasers, mortgagees, lessees
and other lienors.

begin delete SEC. 6. end delete
begin insert SEC. 13. end insert   

Section 3375 of the Revenue and Taxation Code is
amended to read:

3375.  

The tax collector begin insert or assessor, whichever is applicable, end insert
shall notify the Controller, begin insert within 60 days, end insert in the manner as the
Controller shall direct, of all property subject to a begin delete “Notice of Lien
for Postponed Property Taxes” end delete begin insert “notice of lien for postponed
property taxes” end insert recorded pursuant to Section 16182 of the
Government Code that becomes tax defaulted subsequent to the
date of entry on the secured roll of the information required by
subdivision (a) of Section begin delete 2514. end delete begin insert 2514, or where the claimant has
transferred ownership of the residential dwelling or there has been
a change of mailing address, or the claimant has been determined
as deceased. end insert

begin delete SEC. 7. end delete
begin insert SEC. 14. end insert   

Section 3376 is added to the Revenue and Taxation
Code, to read:

3376.  

(a) Upon request of the tax collector, the Controller shall
provide to the tax collector information that is required for the
preparation and enforcement of the sale of property under this part.
This information may include social security numbers.

(b) The tax collector or his or her designee shall certify, under
penalty of perjury, to the Controller, that the information requested
pursuant to subdivision (a) is required for the purposes specified
in subdivision (a).

(c) Any information provided to the tax collector pursuant to
this subdivision is not a public record and is not open to public
inspection.

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 20583 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
amended to read: end insert

20583.  

(a) “Residential dwelling” means a dwelling occupied
as the principal place of residence of the claimant, and so much
of the land surrounding it as is reasonably necessary for use of the
dwelling as a home, owned by the claimant, the claimant and
spouse, or by the claimant and either another individual eligible
for postponement under this chapter or an individual described in
subdivision (a), (b), or (c) of Section 20511 and located in this
state. It shall include condominiums and mobilehomes that are
assessed as realty for local property tax purposes. It also includes
part of a multidwelling or multipurpose building and a part of the
land upon which it is built. In the case of a mobilehome not
assessed as real property that is located on land owned by the
claimant, “residential dwelling” includes the land on which the
mobilehome is situated and so much of the land surrounding it as
reasonably necessary for use of the mobilehome as a home.

(b) As used in this chapter in reference to ownership interests
in residential dwellings, “owned” includes (1) the interest of a
vendee in possession under a land sale contract provided that the
contract or memorandum thereof is recorded and only from the
date of recordation of the contract or memorandum thereof in the
office of the county recorder where the residential dwelling is
located, (2) the interest of the holder of a life estate provided that
the instrument creating the life estate is recorded and only from
the date of recordation of the instrument creating the life estate in
the office of the county recorder where the residential dwelling is
located, but “owned” does not include the interest of the holder of
any remainder interest or the holder of a reversionary interest in
the residential dwelling, (3) the interest of a joint tenant or a tenant
in common in the residential dwelling or the interest of a tenant
where title is held in tenancy by the entirety or a community
property interest where title is held as community property, and
(4) the interest in the residential dwelling in which the title is held
in trust, as described in subdivision (d) of Section 62, provided
that the Controller determines that the state’s interest is adequately
protected.

(c) For purposes of this chapter, the registered owner of a
mobilehome shall be deemed to be the owner of the mobilehome.

(d) Except as provided in subdivision (c), and Chapter 3
(commencing with Section 20625), ownership must be evidenced
by an instrument duly recorded in the office of the county where
the residential dwelling is located.

(e) “Residential dwelling” does not include any of the following:

(1) Any residential dwelling in which the owners do not have
an equity of at least begin delete 20 end delete begin insert 40 end insert percent of the full value of the property
as determined for purposes of property taxation or at least begin delete 20 end delete begin insert 40 end insert
percent of the fair market value as determined by the Controller
and where the Controller determines that the state’s interest is
adequately protected. The begin delete 20-percent end delete begin insert 40-percent end insert equity requirement
shall be met at the time the claimant or authorized agent files an
initial postponement claim and tenders to the tax collector the
initial certificate of eligibility described in Sections 20602,
20639.6, and 20640.6.

(2) Any residential dwelling in which the claimant’s interest is
held pursuant to a contract of sale or under a life estate, unless the
claimant obtains the written consent of the vendor under the
contract of sale, or the holder of the reversionary interest upon
termination of the life estate, for the postponement of taxes and
the creation of a lien on the real property in favor of the state for
amounts postponed pursuant to this act.

(3) Any residential dwelling on which the claimant does not
receive a secured tax bill.

(4) Any residential dwelling in which the claimant’s interest is
held as a possessory interest, except as provided in Chapter 3.5
(commencing with Section 20640).

(f) Notwithstanding subdivision (c) of Section 20584, houseboats
and floating homes, as defined by Section 20583.1, on which
property taxes are delinquent at the time the application for
postponement under this chapter is made, shall not be eligible for
postponement.

begin delete SEC. 8. end delete
begin insert SEC. 16. end insert   

Section 20584 of the Revenue and Taxation Code is
amended to read:

20584.  

(a) “Property taxes” means all ad valorem property
taxes, special assessments, and other charges or user fees that are
attributable to the residential dwelling on the county tax bill and
the ad valorem property taxes, special assessments, or other charges
or user fees appearing on the tax bill of any chartered city that
levies and collects its own property taxes.

(b) Whenever a residential dwelling is an integral part of a larger
tax unit, such as a duplex, farm or a multipurpose building,
“property taxes” shall be the percentage of the total property taxes
as the value of the residential dwelling is of the value of the total
tax unit.

(c) “Property taxes” includes any property taxes for current
fiscal years for which the claim is made and excludes delinquent
taxes for prior fiscal years.

begin insert

begin insert SEC. 17. end insert   

end insert

begin insert Section 20602 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

20602.  

(a) Upon approval of a claim described in Section
20601, the Controller may do either of the following:

(1) Make payments directly to a lender, mortgage company,
escrow company, or county tax collector for the property taxes
owed on behalf of a qualified claimant. Payments may, upon
appropriation by the Legislature, be made out of the amounts
otherwise appropriated pursuant to Section 16100 of the
Government Code that are secured by a lien and obligation as
specified by Article 1 (commencing with Section 16180) of Chapter
5 of Division 4 of the Government Code.

(2) Issue to the claimant a certificate of eligibility, which shall
consist of two parts, both of which shall contain the name of the
claimant, the address of the residential dwelling on which the
claimant has applied for property tax postponement, and that other
information and in that form as the Controller shall prescribe. In
the event that that residential dwelling is located in a chartered
city which levies and collects its own taxes, the Controller shall
issue a duplicate certificate of eligibility to pay all or any part of
the property taxes appearing on that city’s tax bill. Each part of a
certificate of eligibility shall be payable in an unspecified amount
and shall contain statements to identify the property tax installment
to which it may be applied.

(b) The Controller shall prescribe the form of the certificates of
eligibility to pay all delinquent taxes and assessments authorized
by this chapter.

Upon or accompanying each certificate shall be a brief statement
explaining that (1) those taxpayers whose property taxes are paid
by a lender via an impound, trust or other similar account should
enter the total amount of each installment on their respective
certificates and mail both certificates to the tax collector at the
same time, and (2) those taxpayers will receive a refund check
from the county or city in the amount they entered on each
certificate, within 30 days following the date on which the
installment is paid by the lender or the certificate of eligibility is
received by the tax collector, whichever is later, and (3) the intent
of this procedure is to make sure the taxes on the claimant’s
dwelling are not paid twice.

(c) When a certificate of eligibility has been signed by the
claimant, his or her spouse, or authorized agent and countersigned
by the person authorized to collect property taxes or assessments
for the local agency, such certificate shall constitute a written
promise on the part of the State of California to pay the sum of
money specified therein and such signed and countersigned
certificate shall be deemed a negotiable instrument for the sole
purpose of the payment of property taxes owing in the name of
the claimant or his or her spouse for purposes of all laws of this
state.

(d) A certificate of eligibility shall be valid for the duration
prescribed thereon by the Controller.

(e) The Controller shall issue certificates of eligibility claims
approved on or before September 30 between October 15 and
November 1 of the fiscal year for which postponement is claimed.
Certificates for claims approved after September 30 shall be issued
at such times as the Controller determines will best implement the
purpose of this chapter.

(f) The Controller shall prescribe the manner in which a claimant
eligible under this chapter, who has been issued a certificate of
eligibility which is lost or destroyed prior to being filed with the
local agency pursuant to subdivision (b) may obtain a duplicate
copy of said certificate as a replacement. (Under such conditions
as may be prescribed by the Controller, a duplicate copy shall be
deemed as having been filed with the local agency as of the date
a claimant requests issuance of such duplicate copy.)

end delete

begin insert

begin insert SEC. 18. end insert   

end insert

begin insert Section 20602 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 20602. end insert   

Upon approval of a claim described in Section 20601,
the Controller shall make payments directly to a county tax
collector for the property taxes owed on behalf of a qualified
claimant. Upon appropriation by the Legislature, payments may
be made out of the amounts otherwise appropriated pursuant to
Section 16100 of the Government Code that are secured by a
secured tax lien and obligation as specified by Article 1
(commencing with Section 16180) of Chapter 5 of Division 4 of
the Government Code.

end insert

begin insert

begin insert SEC. 19. end insert   

end insert

begin insert Section 20621 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
amended to read: end insert

20621.  

Each claimant applying for postponement under Article
2 (commencing with Section 20601) shall file a claim under penalty
of perjury with the Controller on a form supplied by the Controller.
The claim shall contain all of the following:

(a) Evidence acceptable to the Controller that the person was a
“senior citizen claimant” or a “blind or disabled claimant.”

(b) A statement showing the household income for the period
set forth in Section 20503.

(c) A statement describing the residential dwelling in a manner
that the Controller may prescribe.

(d) The name of the county in which the residential dwelling is
located and the address of the residential dwelling.

(e) The county assessor’s parcel number applicable to the
property for which the claimant is applying for the postponement
of property taxes.

(f) (1) Documentation evidencing the current existence of any
abstract of judgment, federal tax lien, or state tax lien filed or
recorded against the applicant, and any recorded mortgage or deed
of trust that affects the subject residential dwelling, for the purpose
of determining that the claimant possesses a begin delete 20-percent end delete begin insert 40-percent end insert
equity in the subject residential dwelling as required by paragraph
(1) of subdivision (b) of Section 20583.

(2) Actual costs, not in excess of fifty dollars ($50), paid by the
claimant to obtain the documentation shall, in the event the
Controller issues a certificate of eligibility, reduce the amount of
the lien for the year, but not the face amount of the payment
prescribed in Section 16180 of the Government Code.

(g) Other information required by the Controller to establish
eligibility.

begin delete SEC. 9. end delete
begin insert SEC. 20. end insert   

Section 20622 of the Revenue and Taxation Code is
amended to read:

20622.  

The claim for postponement shall be filed after
September 1 of the fiscal year in which postponement is claimed,
and on or before April 10 of that fiscal year; if April 10 falls on
Saturday, Sunday, or a legal holiday, the date is extended to the
next business day.

begin delete SEC. 10. end delete
begin insert SEC. 21. end insert   

Section 20623 of the Revenue and Taxation Code is
amended to read:

20623.  

(a) No person shall file a claim for postponement under
this chapter on or after begin delete the effective date of the act adding this
section, end delete begin insert February 20, 2009, end insert and the Controller shall not accept
applications for postponement under this chapter on or after that
date.

(b) This section shall become inoperative on July 1, 2016, and
as of January 1, 2017, is repealed, unless a later enacted statute
that is enacted before January 1, 2017, deletes or extends the dates
on which it becomes inoperative and is repealed.

begin delete SEC. 11. end delete
begin insert SEC. 22. end insert   

Section 20645.5 of the Revenue and Taxation Code
is amended to read:

20645.5.  

(a) If a postponement claim under Chapter 2
(commencing with Section 20581), Chapter 3.3 (commencing with
Section 20639), or Chapter 3.5 (commencing with Section 20640)
is filed timely before the delinquency date of the second installment
of property taxes on the secured roll, then any delinquent penalties,
costs, fees, and interest accrued for that fiscal year shall be canceled
unless the failure to perfect the claim was due to willful neglect
on the part of the claimant or representative.

(b) In the event of willful neglect, an electronic funds transfer
for that current fiscal year can be used to pay delinquent taxes only
if accompanied by sufficient amounts to pay all of the delinquent
penalties, costs, fees, and interest. If an amount sufficient to pay
all of the delinquent penalties, costs, fees, and interest is not
received by the tax collector within 30 days from the date of the
electronic funds transfer, the tax collector may return the electronic
funds transfer to the Controller to deny the postponement claim.

(c) (1) The Controller shall notify the claimant in writing when
the electronic funds transfer has been submitted to the tax collector.

(2) In the event of willful neglect, in addition to the information
required pursuant to paragraph (1), the Controller shall also notify
the claimant in writing and provide a copy of the notification to
the tax collector, that a payment amount sufficient to pay all of
the delinquent penalties, costs, fees, and interest must be received
by the tax collector within 30 days from the date of the electronic
funds transfer, and that if this payment is not received by the tax
collector, the tax collector may return the electronic funds transfer
to the Controller to deny the postponement claim.

begin delete SEC. 12. end delete
begin insert SEC. 23. end insert   

Section 20645.6 of the Revenue and Taxation Code
is amended to read:

20645.6.  

(a) If the Controller denies a postponement claim
under Chapter 2 (commencing with Section 20581), Chapter 3
(commencing with Section 20625), Chapter 3.3 (commencing with
Section 20639), or Chapter 3.5 (commencing with Section 20640),
and the denial is reversed after appeal pursuant to Section 20645.1,
the Controller shall electronically transfer funds to the county, if
the taxes for the fiscal year have been paid, for the amount of the
taxes. If the taxes for the fiscal year are delinquent, any resulting
penalties or interest shall be canceled.

(b) The Controller shall notify the claimant in writing when an
electronic funds transfer has been made pursuant to subdivision
(a).

begin delete SEC. 13. end delete
begin insert SEC. 24. end insert   

The Legislature finds and declares that Section 6 of
this act, which adds Section 3376 to the Revenue and Taxation
Code, imposes a limitation on the public’s right of access to the
meetings of public bodies or the writings of public officials and
agencies within the meaning of Section 3 of Article I of the
California Constitution. Pursuant to that constitutional provision,
the Legislature makes the following findings to demonstrate the
interest protected by this limitation and the need for protecting
that interest:

In order to protect those persons subject to enforcement of Part
6 (commencing with Section 3351) of Division 1 of the Revenue
and Taxation Code against the risk of identity theft, it is in the
state’s interest to limit public access to information.

begin delete SEC. 14. end delete
begin insert SEC. 25. end insert   

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.