California 2021 2021-2022 Regular Session

California Assembly Bill AB870 Amended / Bill

Filed 01/03/2022

                    Amended IN  Assembly  January 03, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 870Introduced by Assembly Member Santiago(Principal coauthor: Senator Gonzalez)(Coauthor: Assembly Member Cristina Garcia)(Coauthor: Senator Durazo)February 17, 2021 An act to amend Section 25365.6 of, and to add Section 25365.8 to to, the Health and Safety Code, relating to hazardous materials. LEGISLATIVE COUNSEL'S DIGESTAB 870, as amended, Santiago. Hazardous materials: liens. Existing law establishes that any costs or damage incurred by the Department of Toxic Substances Control and regional water quality control boards in carrying out or overseeing a response or corrective action for a release of hazardous materials on a real property constitute a claim and lien upon the real property owned by a responsible party that is subject to, or affected by, that action. Existing law specifies that the lien is subject to the notice and hearing procedures required by due process of the law. Existing law establishes that the lien has the force and effect of, and a priority of, a judgment lien.This bill would specify the notice and hearing procedures to be provided to the affected property owner.This bill would require the department, upon a determination of the scope of a necessary response or corrective action, to provide to the responsible parties an estimate of the costs to complete the response or corrective action. The bill would would, except as provided, establish that the estimated costs constitute a claim and a lien upon the real property owned by a responsible party that is subject to, or affected by, the response or corrective action. The bill would require the department to provide the affected property owner with a notice and an opportunity for a hearing before the recordation of the lien upon the affected property. The bill would establish that the lien takes priority over all other liens and encumbrances that are or have been recorded on the real property on or after January 1, 2023, upon its recordation. The bill would establish that the lien provision does not apply if the responsible parties establish and demonstrate to the department sufficient financial assurance to cover the estimated costs. The bill would authorize the department to impose an additional lien on the real property if the actual costs incurred by the department exceed the amount of the lien recorded based on the estimated costs to complete the response or corrective action.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares both of the following:(1) Courts have recognized that the state has a vitally important interest in ensuring the timely and efficient cleanup of hazardous substance releases that pose a threat to the public health or the environment.(2) The imposition of a lien on the property on which a hazardous substance release has occurred ensures that any costs and damages incurred by the state in performing the cleanup are paid and that the property owner who is responsible bears the costs of the cleanup.(b) It is the intent of the Legislature to establish a process for the imposition of a lien to cover the costs of cleaning up hazardous substances releases that comports with the due process requirements of the California and United States Constitutions by providing a meaningful opportunity for affected landowners to challenge the imposition of the lien to avoid the erroneous deprivation of private property interests.SEC. 2. Section 25365.6 of the Health and Safety Code is amended to read:25365.6. (a) (1) Any costs or damages incurred by the department or regional board pursuant to this chapter constitutes a claim and lien upon the real property owned by the responsible party that is subject to, or affected by, the removal and remedial action. This lien shall attach regardless of whether the responsible party is insolvent. A lien established by this section shall be subject to the notice and hearing procedures required by due process of the law and shall arise at the time costs are first incurred by the department or regional board with respect to a response action at the site.(2) The notice shall be provided to the affected property owner in a sufficient amount of time for the affected property owner to request a hearing before the department to challenge the imposition of the lien.(3) The hearing, if requested, shall be held before the recordation of the lien to allow the affected property owner to meaningfully challenge the amount and extent of the lien and the determination that the affected property owner is a responsible party. In the hearing, the department shall establish that it has a reasonable basis for the amount and extent of the lien. The affected landowner has the burden of demonstrating a defense to the departments determination that it is a responsible party.(b) The department shall not be considered a responsible party for a hazardous substance release site because a claim and lien is imposed pursuant to this section.(c) The lien provided by this section shall continue until the liability for these costs or damages, or a judgment against the responsible party, is satisfied. However, if it is determined by the court that the judgment against the responsible party will not be satisfied, the department may exercise its rights under the lien.(d) The lien imposed by this section shall have the force and effect of, and the priority of, a judgment lien upon its recordation in the county in which the property subject to the lien is located. The lien shall contain the legal description of the real property, the assessors parcel number, and the name of the owner of record, as shown on the latest equalized assessment roll. The lien shall also contain a legal description of the property which is the site of the hazardous substance release, the assessors parcel number for that property, and the name of the owner of record, as shown on the latest equalized assessment roll, of that property.(e) All funds recovered pursuant to this section shall be deposited in the state account.SECTION 1.SEC. 3. Section 25365.8 is added to the Health and Safety Code, to read:25365.8. (a) Upon a determination by the department of the scope of a necessary response or corrective action under a corrective action or a response action pursuant to this chapter or Chapter 6.5 (commencing with Section 25100), the department shall provide to the responsible parties an estimate of the costs to complete the response or corrective action, including the potential cost to the department in overseeing the response or corrective action and the cost of any required operation and maintenance.(b) (1) (A) Except as provided in subdivision (c) (e) or (f) and notwithstanding Section 25365.6, the estimated costs determined pursuant to subdivision (a) constitute a claim and lien upon the real property owned by a responsible party that is subject to, or affected by, the response or corrective action. This lien shall attach regardless of whether the responsible party is insolvent. A lien established by this section shall be subject to the notice and hearing procedures required by due process of the law and shall arise at the time the department provides the cost estimate to the responsible party. (B) The notice shall be provided to the affected property owner in a sufficient amount of time for the affected property owner to request a hearing before the department to challenge the imposition of the lien.(C) The hearing, if requested, shall be held before the recordation of the lien to allow the affected property owner to meaningfully challenge the amount and extent of the lien and the determination that the affected property owner is a responsible party. In the hearing, the department shall establish that it has a reasonable basis for the amount and extent of the lien. The affected landowner has the burden of demonstrating a defense to the departments determination that it is a responsible party.(D) The lien shall take effect upon the recordation of the lien with the county recorder of the county in which the affected property is located.(2) The department shall not be considered a responsible party for a hazardous waste or hazardous substance release site because a claim and lien is imposed pursuant to this subdivision.(3) The lien provided by this subdivision shall continue until the department certifies that the response or corrective action, including operation and maintenance, has been completed. completed and all costs have been paid by the responsible party.(4) The lien imposed by this subdivision shall take priority over all other liens and encumbrances that are or have been recorded on the real property on or after January 1, 2023, upon its recordation in the county in which the property subject to the lien is located. The lien shall contain the legal description of the real property, the assessors parcel number, and the name of the owner of record, as shown on the latest equalized assessment roll. The lien shall also contain a legal description of the property that is the site of the hazardous waste or hazardous substance release, the assessors parcel number for that property, and the name of the owner of record, as shown on the latest equalized assessment roll, of that property. (c) After the recording of the lien pursuant to this section, if the responsible party or parties meet the requirement of subdivision (e), the department shall release the lien recorded upon the affected property by recording a lien release with the county recorder.(d) (1) If the actual costs of the response or corrective action for the affected property exceed the amount of the lien recorded pursuant to subdivision (b) or the amount of the financial assurance provided by the responsible party, the department may impose an additional lien pursuant to this section for the difference between the actual costs and the amount of the lien recorded or financial assurance provided.(2) This subdivision does not apply if the responsible party covers the actual costs of the response or corrective action for the affected property. (c)(e) (1) Subdivision (b) does not apply if the responsible party establishes and demonstrates to the department, in accordance with Sections 66264.143 and 66264.146 of Title 22 of the California Code of Regulations, sufficient financial assurance to cover the estimated costs determined pursuant to subdivision (a).(2) If more than one responsible party is subject to the response or corrective action, paragraph (1) is satisfied if the financial assurances provided by all responsible parties, in aggregate, are sufficient to cover the estimated costs determined pursuant to subdivision (a).(f) (1) Subdivision (b) does not apply to an affected property that is owned by the state or federal government.(2) For purposes of this subdivision, state government does not include a municipal, local, city, county, or special district government, or any subdivisions of those entities.

 Amended IN  Assembly  January 03, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 870Introduced by Assembly Member Santiago(Principal coauthor: Senator Gonzalez)(Coauthor: Assembly Member Cristina Garcia)(Coauthor: Senator Durazo)February 17, 2021 An act to amend Section 25365.6 of, and to add Section 25365.8 to to, the Health and Safety Code, relating to hazardous materials. LEGISLATIVE COUNSEL'S DIGESTAB 870, as amended, Santiago. Hazardous materials: liens. Existing law establishes that any costs or damage incurred by the Department of Toxic Substances Control and regional water quality control boards in carrying out or overseeing a response or corrective action for a release of hazardous materials on a real property constitute a claim and lien upon the real property owned by a responsible party that is subject to, or affected by, that action. Existing law specifies that the lien is subject to the notice and hearing procedures required by due process of the law. Existing law establishes that the lien has the force and effect of, and a priority of, a judgment lien.This bill would specify the notice and hearing procedures to be provided to the affected property owner.This bill would require the department, upon a determination of the scope of a necessary response or corrective action, to provide to the responsible parties an estimate of the costs to complete the response or corrective action. The bill would would, except as provided, establish that the estimated costs constitute a claim and a lien upon the real property owned by a responsible party that is subject to, or affected by, the response or corrective action. The bill would require the department to provide the affected property owner with a notice and an opportunity for a hearing before the recordation of the lien upon the affected property. The bill would establish that the lien takes priority over all other liens and encumbrances that are or have been recorded on the real property on or after January 1, 2023, upon its recordation. The bill would establish that the lien provision does not apply if the responsible parties establish and demonstrate to the department sufficient financial assurance to cover the estimated costs. The bill would authorize the department to impose an additional lien on the real property if the actual costs incurred by the department exceed the amount of the lien recorded based on the estimated costs to complete the response or corrective action.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO 

 Amended IN  Assembly  January 03, 2022

Amended IN  Assembly  January 03, 2022

 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION

 Assembly Bill 

No. 870

Introduced by Assembly Member Santiago(Principal coauthor: Senator Gonzalez)(Coauthor: Assembly Member Cristina Garcia)(Coauthor: Senator Durazo)February 17, 2021

Introduced by Assembly Member Santiago(Principal coauthor: Senator Gonzalez)(Coauthor: Assembly Member Cristina Garcia)(Coauthor: Senator Durazo)
February 17, 2021

 An act to amend Section 25365.6 of, and to add Section 25365.8 to to, the Health and Safety Code, relating to hazardous materials. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 870, as amended, Santiago. Hazardous materials: liens. 

Existing law establishes that any costs or damage incurred by the Department of Toxic Substances Control and regional water quality control boards in carrying out or overseeing a response or corrective action for a release of hazardous materials on a real property constitute a claim and lien upon the real property owned by a responsible party that is subject to, or affected by, that action. Existing law specifies that the lien is subject to the notice and hearing procedures required by due process of the law. Existing law establishes that the lien has the force and effect of, and a priority of, a judgment lien.This bill would specify the notice and hearing procedures to be provided to the affected property owner.This bill would require the department, upon a determination of the scope of a necessary response or corrective action, to provide to the responsible parties an estimate of the costs to complete the response or corrective action. The bill would would, except as provided, establish that the estimated costs constitute a claim and a lien upon the real property owned by a responsible party that is subject to, or affected by, the response or corrective action. The bill would require the department to provide the affected property owner with a notice and an opportunity for a hearing before the recordation of the lien upon the affected property. The bill would establish that the lien takes priority over all other liens and encumbrances that are or have been recorded on the real property on or after January 1, 2023, upon its recordation. The bill would establish that the lien provision does not apply if the responsible parties establish and demonstrate to the department sufficient financial assurance to cover the estimated costs. The bill would authorize the department to impose an additional lien on the real property if the actual costs incurred by the department exceed the amount of the lien recorded based on the estimated costs to complete the response or corrective action.

Existing law establishes that any costs or damage incurred by the Department of Toxic Substances Control and regional water quality control boards in carrying out or overseeing a response or corrective action for a release of hazardous materials on a real property constitute a claim and lien upon the real property owned by a responsible party that is subject to, or affected by, that action. Existing law specifies that the lien is subject to the notice and hearing procedures required by due process of the law. Existing law establishes that the lien has the force and effect of, and a priority of, a judgment lien.

This bill would specify the notice and hearing procedures to be provided to the affected property owner.

This bill would require the department, upon a determination of the scope of a necessary response or corrective action, to provide to the responsible parties an estimate of the costs to complete the response or corrective action. The bill would would, except as provided, establish that the estimated costs constitute a claim and a lien upon the real property owned by a responsible party that is subject to, or affected by, the response or corrective action. The bill would require the department to provide the affected property owner with a notice and an opportunity for a hearing before the recordation of the lien upon the affected property. The bill would establish that the lien takes priority over all other liens and encumbrances that are or have been recorded on the real property on or after January 1, 2023, upon its recordation. The bill would establish that the lien provision does not apply if the responsible parties establish and demonstrate to the department sufficient financial assurance to cover the estimated costs. The bill would authorize the department to impose an additional lien on the real property if the actual costs incurred by the department exceed the amount of the lien recorded based on the estimated costs to complete the response or corrective action.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares both of the following:(1) Courts have recognized that the state has a vitally important interest in ensuring the timely and efficient cleanup of hazardous substance releases that pose a threat to the public health or the environment.(2) The imposition of a lien on the property on which a hazardous substance release has occurred ensures that any costs and damages incurred by the state in performing the cleanup are paid and that the property owner who is responsible bears the costs of the cleanup.(b) It is the intent of the Legislature to establish a process for the imposition of a lien to cover the costs of cleaning up hazardous substances releases that comports with the due process requirements of the California and United States Constitutions by providing a meaningful opportunity for affected landowners to challenge the imposition of the lien to avoid the erroneous deprivation of private property interests.SEC. 2. Section 25365.6 of the Health and Safety Code is amended to read:25365.6. (a) (1) Any costs or damages incurred by the department or regional board pursuant to this chapter constitutes a claim and lien upon the real property owned by the responsible party that is subject to, or affected by, the removal and remedial action. This lien shall attach regardless of whether the responsible party is insolvent. A lien established by this section shall be subject to the notice and hearing procedures required by due process of the law and shall arise at the time costs are first incurred by the department or regional board with respect to a response action at the site.(2) The notice shall be provided to the affected property owner in a sufficient amount of time for the affected property owner to request a hearing before the department to challenge the imposition of the lien.(3) The hearing, if requested, shall be held before the recordation of the lien to allow the affected property owner to meaningfully challenge the amount and extent of the lien and the determination that the affected property owner is a responsible party. In the hearing, the department shall establish that it has a reasonable basis for the amount and extent of the lien. The affected landowner has the burden of demonstrating a defense to the departments determination that it is a responsible party.(b) The department shall not be considered a responsible party for a hazardous substance release site because a claim and lien is imposed pursuant to this section.(c) The lien provided by this section shall continue until the liability for these costs or damages, or a judgment against the responsible party, is satisfied. However, if it is determined by the court that the judgment against the responsible party will not be satisfied, the department may exercise its rights under the lien.(d) The lien imposed by this section shall have the force and effect of, and the priority of, a judgment lien upon its recordation in the county in which the property subject to the lien is located. The lien shall contain the legal description of the real property, the assessors parcel number, and the name of the owner of record, as shown on the latest equalized assessment roll. The lien shall also contain a legal description of the property which is the site of the hazardous substance release, the assessors parcel number for that property, and the name of the owner of record, as shown on the latest equalized assessment roll, of that property.(e) All funds recovered pursuant to this section shall be deposited in the state account.SECTION 1.SEC. 3. Section 25365.8 is added to the Health and Safety Code, to read:25365.8. (a) Upon a determination by the department of the scope of a necessary response or corrective action under a corrective action or a response action pursuant to this chapter or Chapter 6.5 (commencing with Section 25100), the department shall provide to the responsible parties an estimate of the costs to complete the response or corrective action, including the potential cost to the department in overseeing the response or corrective action and the cost of any required operation and maintenance.(b) (1) (A) Except as provided in subdivision (c) (e) or (f) and notwithstanding Section 25365.6, the estimated costs determined pursuant to subdivision (a) constitute a claim and lien upon the real property owned by a responsible party that is subject to, or affected by, the response or corrective action. This lien shall attach regardless of whether the responsible party is insolvent. A lien established by this section shall be subject to the notice and hearing procedures required by due process of the law and shall arise at the time the department provides the cost estimate to the responsible party. (B) The notice shall be provided to the affected property owner in a sufficient amount of time for the affected property owner to request a hearing before the department to challenge the imposition of the lien.(C) The hearing, if requested, shall be held before the recordation of the lien to allow the affected property owner to meaningfully challenge the amount and extent of the lien and the determination that the affected property owner is a responsible party. In the hearing, the department shall establish that it has a reasonable basis for the amount and extent of the lien. The affected landowner has the burden of demonstrating a defense to the departments determination that it is a responsible party.(D) The lien shall take effect upon the recordation of the lien with the county recorder of the county in which the affected property is located.(2) The department shall not be considered a responsible party for a hazardous waste or hazardous substance release site because a claim and lien is imposed pursuant to this subdivision.(3) The lien provided by this subdivision shall continue until the department certifies that the response or corrective action, including operation and maintenance, has been completed. completed and all costs have been paid by the responsible party.(4) The lien imposed by this subdivision shall take priority over all other liens and encumbrances that are or have been recorded on the real property on or after January 1, 2023, upon its recordation in the county in which the property subject to the lien is located. The lien shall contain the legal description of the real property, the assessors parcel number, and the name of the owner of record, as shown on the latest equalized assessment roll. The lien shall also contain a legal description of the property that is the site of the hazardous waste or hazardous substance release, the assessors parcel number for that property, and the name of the owner of record, as shown on the latest equalized assessment roll, of that property. (c) After the recording of the lien pursuant to this section, if the responsible party or parties meet the requirement of subdivision (e), the department shall release the lien recorded upon the affected property by recording a lien release with the county recorder.(d) (1) If the actual costs of the response or corrective action for the affected property exceed the amount of the lien recorded pursuant to subdivision (b) or the amount of the financial assurance provided by the responsible party, the department may impose an additional lien pursuant to this section for the difference between the actual costs and the amount of the lien recorded or financial assurance provided.(2) This subdivision does not apply if the responsible party covers the actual costs of the response or corrective action for the affected property. (c)(e) (1) Subdivision (b) does not apply if the responsible party establishes and demonstrates to the department, in accordance with Sections 66264.143 and 66264.146 of Title 22 of the California Code of Regulations, sufficient financial assurance to cover the estimated costs determined pursuant to subdivision (a).(2) If more than one responsible party is subject to the response or corrective action, paragraph (1) is satisfied if the financial assurances provided by all responsible parties, in aggregate, are sufficient to cover the estimated costs determined pursuant to subdivision (a).(f) (1) Subdivision (b) does not apply to an affected property that is owned by the state or federal government.(2) For purposes of this subdivision, state government does not include a municipal, local, city, county, or special district government, or any subdivisions of those entities.

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

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

SECTION 1. (a) The Legislature finds and declares both of the following:(1) Courts have recognized that the state has a vitally important interest in ensuring the timely and efficient cleanup of hazardous substance releases that pose a threat to the public health or the environment.(2) The imposition of a lien on the property on which a hazardous substance release has occurred ensures that any costs and damages incurred by the state in performing the cleanup are paid and that the property owner who is responsible bears the costs of the cleanup.(b) It is the intent of the Legislature to establish a process for the imposition of a lien to cover the costs of cleaning up hazardous substances releases that comports with the due process requirements of the California and United States Constitutions by providing a meaningful opportunity for affected landowners to challenge the imposition of the lien to avoid the erroneous deprivation of private property interests.

SECTION 1. (a) The Legislature finds and declares both of the following:(1) Courts have recognized that the state has a vitally important interest in ensuring the timely and efficient cleanup of hazardous substance releases that pose a threat to the public health or the environment.(2) The imposition of a lien on the property on which a hazardous substance release has occurred ensures that any costs and damages incurred by the state in performing the cleanup are paid and that the property owner who is responsible bears the costs of the cleanup.(b) It is the intent of the Legislature to establish a process for the imposition of a lien to cover the costs of cleaning up hazardous substances releases that comports with the due process requirements of the California and United States Constitutions by providing a meaningful opportunity for affected landowners to challenge the imposition of the lien to avoid the erroneous deprivation of private property interests.

SECTION 1. (a) The Legislature finds and declares both of the following:

### SECTION 1.

(1) Courts have recognized that the state has a vitally important interest in ensuring the timely and efficient cleanup of hazardous substance releases that pose a threat to the public health or the environment.

(2) The imposition of a lien on the property on which a hazardous substance release has occurred ensures that any costs and damages incurred by the state in performing the cleanup are paid and that the property owner who is responsible bears the costs of the cleanup.

(b) It is the intent of the Legislature to establish a process for the imposition of a lien to cover the costs of cleaning up hazardous substances releases that comports with the due process requirements of the California and United States Constitutions by providing a meaningful opportunity for affected landowners to challenge the imposition of the lien to avoid the erroneous deprivation of private property interests.

SEC. 2. Section 25365.6 of the Health and Safety Code is amended to read:25365.6. (a) (1) Any costs or damages incurred by the department or regional board pursuant to this chapter constitutes a claim and lien upon the real property owned by the responsible party that is subject to, or affected by, the removal and remedial action. This lien shall attach regardless of whether the responsible party is insolvent. A lien established by this section shall be subject to the notice and hearing procedures required by due process of the law and shall arise at the time costs are first incurred by the department or regional board with respect to a response action at the site.(2) The notice shall be provided to the affected property owner in a sufficient amount of time for the affected property owner to request a hearing before the department to challenge the imposition of the lien.(3) The hearing, if requested, shall be held before the recordation of the lien to allow the affected property owner to meaningfully challenge the amount and extent of the lien and the determination that the affected property owner is a responsible party. In the hearing, the department shall establish that it has a reasonable basis for the amount and extent of the lien. The affected landowner has the burden of demonstrating a defense to the departments determination that it is a responsible party.(b) The department shall not be considered a responsible party for a hazardous substance release site because a claim and lien is imposed pursuant to this section.(c) The lien provided by this section shall continue until the liability for these costs or damages, or a judgment against the responsible party, is satisfied. However, if it is determined by the court that the judgment against the responsible party will not be satisfied, the department may exercise its rights under the lien.(d) The lien imposed by this section shall have the force and effect of, and the priority of, a judgment lien upon its recordation in the county in which the property subject to the lien is located. The lien shall contain the legal description of the real property, the assessors parcel number, and the name of the owner of record, as shown on the latest equalized assessment roll. The lien shall also contain a legal description of the property which is the site of the hazardous substance release, the assessors parcel number for that property, and the name of the owner of record, as shown on the latest equalized assessment roll, of that property.(e) All funds recovered pursuant to this section shall be deposited in the state account.

SEC. 2. Section 25365.6 of the Health and Safety Code is amended to read:

### SEC. 2.

25365.6. (a) (1) Any costs or damages incurred by the department or regional board pursuant to this chapter constitutes a claim and lien upon the real property owned by the responsible party that is subject to, or affected by, the removal and remedial action. This lien shall attach regardless of whether the responsible party is insolvent. A lien established by this section shall be subject to the notice and hearing procedures required by due process of the law and shall arise at the time costs are first incurred by the department or regional board with respect to a response action at the site.(2) The notice shall be provided to the affected property owner in a sufficient amount of time for the affected property owner to request a hearing before the department to challenge the imposition of the lien.(3) The hearing, if requested, shall be held before the recordation of the lien to allow the affected property owner to meaningfully challenge the amount and extent of the lien and the determination that the affected property owner is a responsible party. In the hearing, the department shall establish that it has a reasonable basis for the amount and extent of the lien. The affected landowner has the burden of demonstrating a defense to the departments determination that it is a responsible party.(b) The department shall not be considered a responsible party for a hazardous substance release site because a claim and lien is imposed pursuant to this section.(c) The lien provided by this section shall continue until the liability for these costs or damages, or a judgment against the responsible party, is satisfied. However, if it is determined by the court that the judgment against the responsible party will not be satisfied, the department may exercise its rights under the lien.(d) The lien imposed by this section shall have the force and effect of, and the priority of, a judgment lien upon its recordation in the county in which the property subject to the lien is located. The lien shall contain the legal description of the real property, the assessors parcel number, and the name of the owner of record, as shown on the latest equalized assessment roll. The lien shall also contain a legal description of the property which is the site of the hazardous substance release, the assessors parcel number for that property, and the name of the owner of record, as shown on the latest equalized assessment roll, of that property.(e) All funds recovered pursuant to this section shall be deposited in the state account.

25365.6. (a) (1) Any costs or damages incurred by the department or regional board pursuant to this chapter constitutes a claim and lien upon the real property owned by the responsible party that is subject to, or affected by, the removal and remedial action. This lien shall attach regardless of whether the responsible party is insolvent. A lien established by this section shall be subject to the notice and hearing procedures required by due process of the law and shall arise at the time costs are first incurred by the department or regional board with respect to a response action at the site.(2) The notice shall be provided to the affected property owner in a sufficient amount of time for the affected property owner to request a hearing before the department to challenge the imposition of the lien.(3) The hearing, if requested, shall be held before the recordation of the lien to allow the affected property owner to meaningfully challenge the amount and extent of the lien and the determination that the affected property owner is a responsible party. In the hearing, the department shall establish that it has a reasonable basis for the amount and extent of the lien. The affected landowner has the burden of demonstrating a defense to the departments determination that it is a responsible party.(b) The department shall not be considered a responsible party for a hazardous substance release site because a claim and lien is imposed pursuant to this section.(c) The lien provided by this section shall continue until the liability for these costs or damages, or a judgment against the responsible party, is satisfied. However, if it is determined by the court that the judgment against the responsible party will not be satisfied, the department may exercise its rights under the lien.(d) The lien imposed by this section shall have the force and effect of, and the priority of, a judgment lien upon its recordation in the county in which the property subject to the lien is located. The lien shall contain the legal description of the real property, the assessors parcel number, and the name of the owner of record, as shown on the latest equalized assessment roll. The lien shall also contain a legal description of the property which is the site of the hazardous substance release, the assessors parcel number for that property, and the name of the owner of record, as shown on the latest equalized assessment roll, of that property.(e) All funds recovered pursuant to this section shall be deposited in the state account.

25365.6. (a) (1) Any costs or damages incurred by the department or regional board pursuant to this chapter constitutes a claim and lien upon the real property owned by the responsible party that is subject to, or affected by, the removal and remedial action. This lien shall attach regardless of whether the responsible party is insolvent. A lien established by this section shall be subject to the notice and hearing procedures required by due process of the law and shall arise at the time costs are first incurred by the department or regional board with respect to a response action at the site.(2) The notice shall be provided to the affected property owner in a sufficient amount of time for the affected property owner to request a hearing before the department to challenge the imposition of the lien.(3) The hearing, if requested, shall be held before the recordation of the lien to allow the affected property owner to meaningfully challenge the amount and extent of the lien and the determination that the affected property owner is a responsible party. In the hearing, the department shall establish that it has a reasonable basis for the amount and extent of the lien. The affected landowner has the burden of demonstrating a defense to the departments determination that it is a responsible party.(b) The department shall not be considered a responsible party for a hazardous substance release site because a claim and lien is imposed pursuant to this section.(c) The lien provided by this section shall continue until the liability for these costs or damages, or a judgment against the responsible party, is satisfied. However, if it is determined by the court that the judgment against the responsible party will not be satisfied, the department may exercise its rights under the lien.(d) The lien imposed by this section shall have the force and effect of, and the priority of, a judgment lien upon its recordation in the county in which the property subject to the lien is located. The lien shall contain the legal description of the real property, the assessors parcel number, and the name of the owner of record, as shown on the latest equalized assessment roll. The lien shall also contain a legal description of the property which is the site of the hazardous substance release, the assessors parcel number for that property, and the name of the owner of record, as shown on the latest equalized assessment roll, of that property.(e) All funds recovered pursuant to this section shall be deposited in the state account.



25365.6. (a) (1) Any costs or damages incurred by the department or regional board pursuant to this chapter constitutes a claim and lien upon the real property owned by the responsible party that is subject to, or affected by, the removal and remedial action. This lien shall attach regardless of whether the responsible party is insolvent. A lien established by this section shall be subject to the notice and hearing procedures required by due process of the law and shall arise at the time costs are first incurred by the department or regional board with respect to a response action at the site.

(2) The notice shall be provided to the affected property owner in a sufficient amount of time for the affected property owner to request a hearing before the department to challenge the imposition of the lien.

(3) The hearing, if requested, shall be held before the recordation of the lien to allow the affected property owner to meaningfully challenge the amount and extent of the lien and the determination that the affected property owner is a responsible party. In the hearing, the department shall establish that it has a reasonable basis for the amount and extent of the lien. The affected landowner has the burden of demonstrating a defense to the departments determination that it is a responsible party.

(b) The department shall not be considered a responsible party for a hazardous substance release site because a claim and lien is imposed pursuant to this section.

(c) The lien provided by this section shall continue until the liability for these costs or damages, or a judgment against the responsible party, is satisfied. However, if it is determined by the court that the judgment against the responsible party will not be satisfied, the department may exercise its rights under the lien.

(d) The lien imposed by this section shall have the force and effect of, and the priority of, a judgment lien upon its recordation in the county in which the property subject to the lien is located. The lien shall contain the legal description of the real property, the assessors parcel number, and the name of the owner of record, as shown on the latest equalized assessment roll. The lien shall also contain a legal description of the property which is the site of the hazardous substance release, the assessors parcel number for that property, and the name of the owner of record, as shown on the latest equalized assessment roll, of that property.

(e) All funds recovered pursuant to this section shall be deposited in the state account.

SECTION 1.SEC. 3. Section 25365.8 is added to the Health and Safety Code, to read:25365.8. (a) Upon a determination by the department of the scope of a necessary response or corrective action under a corrective action or a response action pursuant to this chapter or Chapter 6.5 (commencing with Section 25100), the department shall provide to the responsible parties an estimate of the costs to complete the response or corrective action, including the potential cost to the department in overseeing the response or corrective action and the cost of any required operation and maintenance.(b) (1) (A) Except as provided in subdivision (c) (e) or (f) and notwithstanding Section 25365.6, the estimated costs determined pursuant to subdivision (a) constitute a claim and lien upon the real property owned by a responsible party that is subject to, or affected by, the response or corrective action. This lien shall attach regardless of whether the responsible party is insolvent. A lien established by this section shall be subject to the notice and hearing procedures required by due process of the law and shall arise at the time the department provides the cost estimate to the responsible party. (B) The notice shall be provided to the affected property owner in a sufficient amount of time for the affected property owner to request a hearing before the department to challenge the imposition of the lien.(C) The hearing, if requested, shall be held before the recordation of the lien to allow the affected property owner to meaningfully challenge the amount and extent of the lien and the determination that the affected property owner is a responsible party. In the hearing, the department shall establish that it has a reasonable basis for the amount and extent of the lien. The affected landowner has the burden of demonstrating a defense to the departments determination that it is a responsible party.(D) The lien shall take effect upon the recordation of the lien with the county recorder of the county in which the affected property is located.(2) The department shall not be considered a responsible party for a hazardous waste or hazardous substance release site because a claim and lien is imposed pursuant to this subdivision.(3) The lien provided by this subdivision shall continue until the department certifies that the response or corrective action, including operation and maintenance, has been completed. completed and all costs have been paid by the responsible party.(4) The lien imposed by this subdivision shall take priority over all other liens and encumbrances that are or have been recorded on the real property on or after January 1, 2023, upon its recordation in the county in which the property subject to the lien is located. The lien shall contain the legal description of the real property, the assessors parcel number, and the name of the owner of record, as shown on the latest equalized assessment roll. The lien shall also contain a legal description of the property that is the site of the hazardous waste or hazardous substance release, the assessors parcel number for that property, and the name of the owner of record, as shown on the latest equalized assessment roll, of that property. (c) After the recording of the lien pursuant to this section, if the responsible party or parties meet the requirement of subdivision (e), the department shall release the lien recorded upon the affected property by recording a lien release with the county recorder.(d) (1) If the actual costs of the response or corrective action for the affected property exceed the amount of the lien recorded pursuant to subdivision (b) or the amount of the financial assurance provided by the responsible party, the department may impose an additional lien pursuant to this section for the difference between the actual costs and the amount of the lien recorded or financial assurance provided.(2) This subdivision does not apply if the responsible party covers the actual costs of the response or corrective action for the affected property. (c)(e) (1) Subdivision (b) does not apply if the responsible party establishes and demonstrates to the department, in accordance with Sections 66264.143 and 66264.146 of Title 22 of the California Code of Regulations, sufficient financial assurance to cover the estimated costs determined pursuant to subdivision (a).(2) If more than one responsible party is subject to the response or corrective action, paragraph (1) is satisfied if the financial assurances provided by all responsible parties, in aggregate, are sufficient to cover the estimated costs determined pursuant to subdivision (a).(f) (1) Subdivision (b) does not apply to an affected property that is owned by the state or federal government.(2) For purposes of this subdivision, state government does not include a municipal, local, city, county, or special district government, or any subdivisions of those entities.

SECTION 1.SEC. 3. Section 25365.8 is added to the Health and Safety Code, to read:

### SECTION 1.SEC. 3.

25365.8. (a) Upon a determination by the department of the scope of a necessary response or corrective action under a corrective action or a response action pursuant to this chapter or Chapter 6.5 (commencing with Section 25100), the department shall provide to the responsible parties an estimate of the costs to complete the response or corrective action, including the potential cost to the department in overseeing the response or corrective action and the cost of any required operation and maintenance.(b) (1) (A) Except as provided in subdivision (c) (e) or (f) and notwithstanding Section 25365.6, the estimated costs determined pursuant to subdivision (a) constitute a claim and lien upon the real property owned by a responsible party that is subject to, or affected by, the response or corrective action. This lien shall attach regardless of whether the responsible party is insolvent. A lien established by this section shall be subject to the notice and hearing procedures required by due process of the law and shall arise at the time the department provides the cost estimate to the responsible party. (B) The notice shall be provided to the affected property owner in a sufficient amount of time for the affected property owner to request a hearing before the department to challenge the imposition of the lien.(C) The hearing, if requested, shall be held before the recordation of the lien to allow the affected property owner to meaningfully challenge the amount and extent of the lien and the determination that the affected property owner is a responsible party. In the hearing, the department shall establish that it has a reasonable basis for the amount and extent of the lien. The affected landowner has the burden of demonstrating a defense to the departments determination that it is a responsible party.(D) The lien shall take effect upon the recordation of the lien with the county recorder of the county in which the affected property is located.(2) The department shall not be considered a responsible party for a hazardous waste or hazardous substance release site because a claim and lien is imposed pursuant to this subdivision.(3) The lien provided by this subdivision shall continue until the department certifies that the response or corrective action, including operation and maintenance, has been completed. completed and all costs have been paid by the responsible party.(4) The lien imposed by this subdivision shall take priority over all other liens and encumbrances that are or have been recorded on the real property on or after January 1, 2023, upon its recordation in the county in which the property subject to the lien is located. The lien shall contain the legal description of the real property, the assessors parcel number, and the name of the owner of record, as shown on the latest equalized assessment roll. The lien shall also contain a legal description of the property that is the site of the hazardous waste or hazardous substance release, the assessors parcel number for that property, and the name of the owner of record, as shown on the latest equalized assessment roll, of that property. (c) After the recording of the lien pursuant to this section, if the responsible party or parties meet the requirement of subdivision (e), the department shall release the lien recorded upon the affected property by recording a lien release with the county recorder.(d) (1) If the actual costs of the response or corrective action for the affected property exceed the amount of the lien recorded pursuant to subdivision (b) or the amount of the financial assurance provided by the responsible party, the department may impose an additional lien pursuant to this section for the difference between the actual costs and the amount of the lien recorded or financial assurance provided.(2) This subdivision does not apply if the responsible party covers the actual costs of the response or corrective action for the affected property. (c)(e) (1) Subdivision (b) does not apply if the responsible party establishes and demonstrates to the department, in accordance with Sections 66264.143 and 66264.146 of Title 22 of the California Code of Regulations, sufficient financial assurance to cover the estimated costs determined pursuant to subdivision (a).(2) If more than one responsible party is subject to the response or corrective action, paragraph (1) is satisfied if the financial assurances provided by all responsible parties, in aggregate, are sufficient to cover the estimated costs determined pursuant to subdivision (a).(f) (1) Subdivision (b) does not apply to an affected property that is owned by the state or federal government.(2) For purposes of this subdivision, state government does not include a municipal, local, city, county, or special district government, or any subdivisions of those entities.

25365.8. (a) Upon a determination by the department of the scope of a necessary response or corrective action under a corrective action or a response action pursuant to this chapter or Chapter 6.5 (commencing with Section 25100), the department shall provide to the responsible parties an estimate of the costs to complete the response or corrective action, including the potential cost to the department in overseeing the response or corrective action and the cost of any required operation and maintenance.(b) (1) (A) Except as provided in subdivision (c) (e) or (f) and notwithstanding Section 25365.6, the estimated costs determined pursuant to subdivision (a) constitute a claim and lien upon the real property owned by a responsible party that is subject to, or affected by, the response or corrective action. This lien shall attach regardless of whether the responsible party is insolvent. A lien established by this section shall be subject to the notice and hearing procedures required by due process of the law and shall arise at the time the department provides the cost estimate to the responsible party. (B) The notice shall be provided to the affected property owner in a sufficient amount of time for the affected property owner to request a hearing before the department to challenge the imposition of the lien.(C) The hearing, if requested, shall be held before the recordation of the lien to allow the affected property owner to meaningfully challenge the amount and extent of the lien and the determination that the affected property owner is a responsible party. In the hearing, the department shall establish that it has a reasonable basis for the amount and extent of the lien. The affected landowner has the burden of demonstrating a defense to the departments determination that it is a responsible party.(D) The lien shall take effect upon the recordation of the lien with the county recorder of the county in which the affected property is located.(2) The department shall not be considered a responsible party for a hazardous waste or hazardous substance release site because a claim and lien is imposed pursuant to this subdivision.(3) The lien provided by this subdivision shall continue until the department certifies that the response or corrective action, including operation and maintenance, has been completed. completed and all costs have been paid by the responsible party.(4) The lien imposed by this subdivision shall take priority over all other liens and encumbrances that are or have been recorded on the real property on or after January 1, 2023, upon its recordation in the county in which the property subject to the lien is located. The lien shall contain the legal description of the real property, the assessors parcel number, and the name of the owner of record, as shown on the latest equalized assessment roll. The lien shall also contain a legal description of the property that is the site of the hazardous waste or hazardous substance release, the assessors parcel number for that property, and the name of the owner of record, as shown on the latest equalized assessment roll, of that property. (c) After the recording of the lien pursuant to this section, if the responsible party or parties meet the requirement of subdivision (e), the department shall release the lien recorded upon the affected property by recording a lien release with the county recorder.(d) (1) If the actual costs of the response or corrective action for the affected property exceed the amount of the lien recorded pursuant to subdivision (b) or the amount of the financial assurance provided by the responsible party, the department may impose an additional lien pursuant to this section for the difference between the actual costs and the amount of the lien recorded or financial assurance provided.(2) This subdivision does not apply if the responsible party covers the actual costs of the response or corrective action for the affected property. (c)(e) (1) Subdivision (b) does not apply if the responsible party establishes and demonstrates to the department, in accordance with Sections 66264.143 and 66264.146 of Title 22 of the California Code of Regulations, sufficient financial assurance to cover the estimated costs determined pursuant to subdivision (a).(2) If more than one responsible party is subject to the response or corrective action, paragraph (1) is satisfied if the financial assurances provided by all responsible parties, in aggregate, are sufficient to cover the estimated costs determined pursuant to subdivision (a).(f) (1) Subdivision (b) does not apply to an affected property that is owned by the state or federal government.(2) For purposes of this subdivision, state government does not include a municipal, local, city, county, or special district government, or any subdivisions of those entities.

25365.8. (a) Upon a determination by the department of the scope of a necessary response or corrective action under a corrective action or a response action pursuant to this chapter or Chapter 6.5 (commencing with Section 25100), the department shall provide to the responsible parties an estimate of the costs to complete the response or corrective action, including the potential cost to the department in overseeing the response or corrective action and the cost of any required operation and maintenance.(b) (1) (A) Except as provided in subdivision (c) (e) or (f) and notwithstanding Section 25365.6, the estimated costs determined pursuant to subdivision (a) constitute a claim and lien upon the real property owned by a responsible party that is subject to, or affected by, the response or corrective action. This lien shall attach regardless of whether the responsible party is insolvent. A lien established by this section shall be subject to the notice and hearing procedures required by due process of the law and shall arise at the time the department provides the cost estimate to the responsible party. (B) The notice shall be provided to the affected property owner in a sufficient amount of time for the affected property owner to request a hearing before the department to challenge the imposition of the lien.(C) The hearing, if requested, shall be held before the recordation of the lien to allow the affected property owner to meaningfully challenge the amount and extent of the lien and the determination that the affected property owner is a responsible party. In the hearing, the department shall establish that it has a reasonable basis for the amount and extent of the lien. The affected landowner has the burden of demonstrating a defense to the departments determination that it is a responsible party.(D) The lien shall take effect upon the recordation of the lien with the county recorder of the county in which the affected property is located.(2) The department shall not be considered a responsible party for a hazardous waste or hazardous substance release site because a claim and lien is imposed pursuant to this subdivision.(3) The lien provided by this subdivision shall continue until the department certifies that the response or corrective action, including operation and maintenance, has been completed. completed and all costs have been paid by the responsible party.(4) The lien imposed by this subdivision shall take priority over all other liens and encumbrances that are or have been recorded on the real property on or after January 1, 2023, upon its recordation in the county in which the property subject to the lien is located. The lien shall contain the legal description of the real property, the assessors parcel number, and the name of the owner of record, as shown on the latest equalized assessment roll. The lien shall also contain a legal description of the property that is the site of the hazardous waste or hazardous substance release, the assessors parcel number for that property, and the name of the owner of record, as shown on the latest equalized assessment roll, of that property. (c) After the recording of the lien pursuant to this section, if the responsible party or parties meet the requirement of subdivision (e), the department shall release the lien recorded upon the affected property by recording a lien release with the county recorder.(d) (1) If the actual costs of the response or corrective action for the affected property exceed the amount of the lien recorded pursuant to subdivision (b) or the amount of the financial assurance provided by the responsible party, the department may impose an additional lien pursuant to this section for the difference between the actual costs and the amount of the lien recorded or financial assurance provided.(2) This subdivision does not apply if the responsible party covers the actual costs of the response or corrective action for the affected property. (c)(e) (1) Subdivision (b) does not apply if the responsible party establishes and demonstrates to the department, in accordance with Sections 66264.143 and 66264.146 of Title 22 of the California Code of Regulations, sufficient financial assurance to cover the estimated costs determined pursuant to subdivision (a).(2) If more than one responsible party is subject to the response or corrective action, paragraph (1) is satisfied if the financial assurances provided by all responsible parties, in aggregate, are sufficient to cover the estimated costs determined pursuant to subdivision (a).(f) (1) Subdivision (b) does not apply to an affected property that is owned by the state or federal government.(2) For purposes of this subdivision, state government does not include a municipal, local, city, county, or special district government, or any subdivisions of those entities.



25365.8. (a) Upon a determination by the department of the scope of a necessary response or corrective action under a corrective action or a response action pursuant to this chapter or Chapter 6.5 (commencing with Section 25100), the department shall provide to the responsible parties an estimate of the costs to complete the response or corrective action, including the potential cost to the department in overseeing the response or corrective action and the cost of any required operation and maintenance.

(b) (1) (A) Except as provided in subdivision (c) (e) or (f) and notwithstanding Section 25365.6, the estimated costs determined pursuant to subdivision (a) constitute a claim and lien upon the real property owned by a responsible party that is subject to, or affected by, the response or corrective action. This lien shall attach regardless of whether the responsible party is insolvent. A lien established by this section shall be subject to the notice and hearing procedures required by due process of the law and shall arise at the time the department provides the cost estimate to the responsible party. 

(B) The notice shall be provided to the affected property owner in a sufficient amount of time for the affected property owner to request a hearing before the department to challenge the imposition of the lien.

(C) The hearing, if requested, shall be held before the recordation of the lien to allow the affected property owner to meaningfully challenge the amount and extent of the lien and the determination that the affected property owner is a responsible party. In the hearing, the department shall establish that it has a reasonable basis for the amount and extent of the lien. The affected landowner has the burden of demonstrating a defense to the departments determination that it is a responsible party.

(D) The lien shall take effect upon the recordation of the lien with the county recorder of the county in which the affected property is located.

(2) The department shall not be considered a responsible party for a hazardous waste or hazardous substance release site because a claim and lien is imposed pursuant to this subdivision.

(3) The lien provided by this subdivision shall continue until the department certifies that the response or corrective action, including operation and maintenance, has been completed. completed and all costs have been paid by the responsible party.

(4) The lien imposed by this subdivision shall take priority over all other liens and encumbrances that are or have been recorded on the real property on or after January 1, 2023, upon its recordation in the county in which the property subject to the lien is located. The lien shall contain the legal description of the real property, the assessors parcel number, and the name of the owner of record, as shown on the latest equalized assessment roll. The lien shall also contain a legal description of the property that is the site of the hazardous waste or hazardous substance release, the assessors parcel number for that property, and the name of the owner of record, as shown on the latest equalized assessment roll, of that property. 

(c) After the recording of the lien pursuant to this section, if the responsible party or parties meet the requirement of subdivision (e), the department shall release the lien recorded upon the affected property by recording a lien release with the county recorder.

(d) (1) If the actual costs of the response or corrective action for the affected property exceed the amount of the lien recorded pursuant to subdivision (b) or the amount of the financial assurance provided by the responsible party, the department may impose an additional lien pursuant to this section for the difference between the actual costs and the amount of the lien recorded or financial assurance provided.

(2) This subdivision does not apply if the responsible party covers the actual costs of the response or corrective action for the affected property. 

(c)



(e) (1) Subdivision (b) does not apply if the responsible party establishes and demonstrates to the department, in accordance with Sections 66264.143 and 66264.146 of Title 22 of the California Code of Regulations, sufficient financial assurance to cover the estimated costs determined pursuant to subdivision (a).

(2) If more than one responsible party is subject to the response or corrective action, paragraph (1) is satisfied if the financial assurances provided by all responsible parties, in aggregate, are sufficient to cover the estimated costs determined pursuant to subdivision (a).

(f) (1) Subdivision (b) does not apply to an affected property that is owned by the state or federal government.

(2) For purposes of this subdivision, state government does not include a municipal, local, city, county, or special district government, or any subdivisions of those entities.