California Assembly Bill AB2069 Introduced / Bill

 BILL NUMBER: AB 2069INTRODUCED BILL TEXT 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 introduced, 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 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 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 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  such   the  charges  authorized pursuant to this article  , except that if any real property to which  such   these  charges relate has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide encumbracer for value has been created and attaches thereon,  during the year  prior to the date on which the first installment of  such   the general  taxes  would become delinquent   that include the charges that appear on the assessment roll  , then the lien which would otherwise be imposed by Section 5473.5 shall not attach to  such   the  real property and the charges relating to  such   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) Notwithstanding any other provision of this article, charges for services and facilities furnished by the entity shall constitute a lien against the lot or parcel of land for which the service was provided if the charges remain delinquent for a period of 60 days, and the entity has notified the assessee of the property shown on the latest equalized assessment roll of the delinquent charges pursuant to subdivision (a) and the lien provided by this section.   (c) The lien provided herein shall have no force or effect until a certificate specifying the amount of the unpaid charges is recorded with the county recorder and when so recorded shall have the force, effect and priority of a judgment lien and continue for three years from the time of recording unless sooner released or otherwise discharged.   (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 unpaid charges and the name and address of the person liable therefore. 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  such   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,  any real property to which  such   the  fees or charges relate has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide encumbrancer for value has been created and attaches thereon, prior to the date on which the first installment of  such   those  taxes would become delinquent, then the lien which would otherwise be imposed by Section 5474.5 shall not attach to such 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. 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 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  such   the  list is true and correct. (3) Submit  such   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  such   the  list and a certified copy of  such   the  resolution, the amount of the unpaid charges attributed to each parcel mentioned in  such   the  list shall constitute a special assessment against  such   the  parcel, and shall be a lien on that property for  such   that  amount.  Such  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  such   the resolution of the district board accompanied by a certified copy of  such   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  such   the  taxes. All laws applicable to the levy, collection and enforcement of municipal ad valorem taxes shall be applicable to  such   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,  any real property to which  such   the  lien would attach has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide encumbrancer for value has been created and attached thereon, prior to the date on which the first installment of  such   the  taxes would become delinquent, then the lien which would otherwise be imposed by this section shall not attach to such real property and the delinquent and unpaid charges, as certified, relating to  such   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  such   the  delinquent and unpaid charges. The amount of  such   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  such   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  such   the  filing the lien shall be extended to the real property in  such   this  county for 10 years unless sooner released or otherwise discharged.