SLS 13RS-261 ENGROSSED Page 1 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2013 SENATE BILL NO. 51 BY SENATOR LONG Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. CIVIL PROCEDURE. Provides relative to municipal and parish actions, liens, and proceedings for blighted or abandoned property and for violations of public health, housing and certain other ordinances. (gov sig) AN ACT1 To amend and reenact R.S. 13:2575(A), (B), (C)(2), (D), (F) and (H) and2 2576(A)(introductory paragraph) and to enact R.S. 13:2576(A)(7), relative to3 administrative adjudication procedures for blighted or abandoned property, public4 health, housing, fire code, environmental and other ordinance violations; to provide5 certain municipal and parish population requirements and restrictions; to provide6 certain terms, conditions, requirements, and procedures; to provide for the7 enforcement of ordinances through administrative adjudication procedures and other8 procedures, including liens, actions and tax sales; to provide for the effects of such9 procedures and judgments; and to provide for related matters.10 Be it enacted by the Legislature of Louisiana:11 Section 1. R.S. 13:2575(A), (B), (C)(2), (D), (F) and (H) and 2576(A)(introductory12 paragraph) are hereby amended and reenacted and R.S. 13:2576(A)(7) is hereby enacted to13 read as follows:14 §2575. Municipalities with populations in excess of three hundred thousand;15 Blighted or abandoned property; public health, housing, fire code,16 building code and certain other ordinance and environmental17 SB NO. 51 SLS 13RS-261 ENGROSSED Page 2 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. violations; administrative adjudication; procedure; appeal; penalties1 A.(1) Any municipality or parish may prescribe civil fines for blighted2 property, abandoned property, or violation of public health, housing, fire code,3 environmental, and historic district ordinances in the municipality or parish by4 owners of immovable property, their agents, tenants, or representatives pursuant to5 the procedures for administrative adjudication provided in this Chapter. For the6 purposes of this Chapter, "housing violations" shall encompass only those conditions7 in privately owned structures which are determined to constitute a threat or danger8 to the public health, safety or welfare and/or to the environment, or a historic district.9 In municipalities with a population of seventy thousand or more, the term "housing10 violation" as used in this Chapter shall also encompass building codes, zoning,11 vegetation, and nuisance ordinances. However, nothing in this Section shall be12 construed to affect activities which occur on the premises of manufacturing facilities13 and which are regulated by Title 30 of the Louisiana Revised Statutes of 1950.14 (2) For purposes of this Chapter, except in any parish with a population15 of more than three hundred thousand and less than four hundred thousand16 according to the latest federal decennial census, "blighted property" shall have17 the same meaning as provided in R.S. 33:1374, and "abandoned property" shall18 have the same meaning as provided in R.S. 33:4720.59.19 B.(1) Any municipality or parish may adopt an ordinance or ordinances20 establishing an administrative adjudication hearing procedure under the provisions21 of this Chapter. The ordinance or ordinances shall provide for a time period for22 persons charged with owning blighted or abandoned property, or violating a23 public health, housing, fire code, environmental, and historic district ordinance to24 have a hearing under the provisions of this Chapter. The ordinance shall provide for25 the appointment of one or more hearing officers who may be the director of health26 of the municipality or parish or the health officer of the parish in which the27 municipality is located or the designee of such official or, in the discretion of the28 governing authority, who may be a person who shall have been licensed to practice29 SB NO. 51 SLS 13RS-261 ENGROSSED Page 3 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. law in Louisiana for two years.1 (2) Except in any parish with a population of more than three hundred2 thousand and less than four hundred thousand according to the latest federal3 decennial census, any municipality or parish that adopts an ordinance4 establishing an administrative adjudication hearing procedure for determining5 property to be blighted or abandoned, shall provide notice to the property6 owners and to all mortgage holders as provided in Subparagraphs (D)(2) and7 (F)(2) of this Section.8 (3) Each municipality or parish shall have the authority to empower the9 hearing officer with authority to:10 * * *11 C. (1)12 * * *13 (2) Any liens placed against such immovable property shall be included in14 the next annual ad valorem tax bill and shall be paid along with such taxes, subject,15 however, to any valid homestead exemption. Failure to pay the liens shall cause the16 immovable property in or on which the violation occurred to be subject to the same17 provisions of law as govern tax sales of immovable property, except that in18 municipalities with populations in excess of three hundred thousand according to the19 latest federal decennial census, when the immovable property has been declared20 blighted or a public nuisance by an administrative hearing officer acting in21 accordance with this Section, the property owners and other parties having interests22 in the property shall not have a right of redemption. However, if the immovable23 property has been sold for nonpayment of taxes to a tax sale purchaser other than the24 municipality, and if the right of redemption from the tax sale has not elapsed at least25 one year prior to the sale pursuant to this Section, the tax sale purchaser shall have26 a right of redemption from the sale pursuant to this Section until one year after the27 right of redemption from the tax sale elapses. In addition, in municipalities with28 populations in excess of three hundred thousand according to the latest federal29 SB NO. 51 SLS 13RS-261 ENGROSSED Page 4 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. decennial census, failure to pay the liens shall also cause such liens and privileges1 to be subject to enforcement in accordance with R.S. 13:2576. Any liens placed2 against immovable property that has a legal homestead exemption from taxes will3 become payable ninety days after the death of the owner thereof or immediately4 upon recordation of any conventional mortgage on the immovable property or5 transfer of title to a new owner, whichever occurs first.6 D.(1) Prior to holding an administrative hearing for public health, housing,7 fire code, environmental, and historic district violations, the municipality or parish8 shall notify the property owner at least fifteen days in advance of the date that such9 a hearing is scheduled. This notification shall state the time, date, and location of the10 hearing, the alleged violations, and it shall be sent by certified or registered United11 States mail to the violator or personally served on the violator at the address as listed12 in the assessor's office of the municipality or parish. The date of the postmark shall13 be deemed to be the date of delivery. Any notification so sent and returned by the14 United States Post Office shall be considered as having fulfilled the notification15 requirement. Failure of any person charged with a violation to appear at the hearing16 shall be considered an admission of liability for the charged violation. Any order17 compelling the attendance of witnesses or the production of documents may be18 enforced by the city or municipal court of the municipality or the parish court in19 whose jurisdiction the municipality is located, or in the parish court of the parish20 initiating the action. 21 (2) Except in any parish with a population of more than three hundred22 thousand and less than four hundred thousand according to the latest federal23 decennial census, prior to holding an administrative hearing for the24 determination of blight or abandonment of property, the municipality or parish25 shall notify the property owner and all current mortgage holders holding a26 mortgage recorded in the parish mortgage records, at least fifteen days in27 advance of the date of the administrative hearing. The notification shall state28 the time, date, and location of the hearing, the location of the subject property,29 SB NO. 51 SLS 13RS-261 ENGROSSED Page 5 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. and an explanation that the hearing is for the purpose of making a1 determination whether the subject property is blighted or abandoned. The2 notice shall be sent by certified or registered United States mail or personally3 served on the property owner at the address listed in the assessor's office of the4 municipality or parish, and on each mortgage holder at the address provided5 in the recorded mortgage.6 * * *7 F.(1) The hearing officer shall issue an order within thirty days, excluding8 legal holidays, of the hearing stating whether or not the person charged is liable for9 the violation, and the amount of any fine, penalty, costs, or fee assessed against him,10 and a date by which the violation shall be corrected. In addition to the enforcement11 procedure and authority set forth in Paragraph (B)(2) of this Section, any order12 assessing a fine, penalty, costs, or fee or stipulating a correction date may be13 enforced by the city or municipal court of the municipality or the parish court in14 whose jurisdiction the municipality is located, or in the parish court of the parish15 initiating the action.16 (2) Except in any parish with a population of more than three hundred17 thousand and less than four hundred thousand according to the latest federal18 decennial census, within thirty days, excluding legal holidays, after the hearing19 to determine whether a property is blighted or abandoned, the hearing officer20 shall send written post hearing notice to the property owner and current21 mortgage holders explaining whether the hearing officer determined the subject22 property to be blighted or abandoned and state whether any fine, penalty, costs,23 or fees are assessed. The post hearing notice shall be sent to the property owner24 and current mortgage holders in the manner provided for in Subparagraph25 (D)(2) of this Section.26 * * *27 H. Any property owner or mortgage holder of property determined to28 be blighted or abandoned property, or any person determined by the hearing29 SB NO. 51 SLS 13RS-261 ENGROSSED Page 6 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. officer to be in violation of a public health, housing, fire code, environmental, or1 historic district ordinance may appeal this determination to the appropriate district2 court. Such appeal shall be instituted by filing, within thirty calendar days of the3 hearing officer's order, a petition with the clerk of court for the district court along4 with payment of such reasonable costs as may be required by the clerk. After filing5 a petition for appeal, the clerk of court of the district court shall schedule a hearing6 and notify all parties of the date, time, and place of such hearing. Service of notice7 of appeal under this Subsection shall not stay the enforcement and collection of the8 judgment unless the person who files the appeal furnishes security prior to filing9 notice of appeal with the agency of the municipality or parish designated by10 ordinance to accept such payments in the amount to be fixed by the hearing officer11 sufficient to assure satisfaction of the finding of the hearing officer relative to the12 fine, fee, penalty, costs of the hearing, and costs, if any, of correcting the violation.13 * * *14 §2576. Administrative adjudication of blighted or abandoned property, public15 health, housing, fire code, environmental, and historic district16 violations; municipalities with a population in excess of three17 hundred thousand18 A. In each any municipality or parish having a population of three hundred19 thousand or more according to the latest federal decennial census, the failure to pay20 the liens, privileges, and judicial mortgages, and any fines, fees, penalties, or hearing21 costs imposed pursuant to R.S. 13:2575 shall cause the liens, privileges, and judicial22 mortgages, and any fines, fees, penalties, or hearing costs to be enforceable pursuant23 to the following provisions, in addition to those provided for in R.S. 13:2575:24 * * *25 (7) If property for which tax sale title was acquired and held by a26 political subdivision pursuant to R.S. 47:2196 is sold pursuant to this Chapter,27 upon recordation of such sale the property shall no longer be deemed28 adjudicated property. For purposes of any rights of redemption required29 SB NO. 51 SLS 13RS-261 ENGROSSED Page 7 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. pursuant to state law, the redemption period shall be deemed to have1 commenced on the date of the recordation of the initial adjudication to the2 political subdivision and not on the date of sale pursuant to this Chapter.3 * * *4 Section 2. This Act shall become effective upon signature by the governor or, if not5 signed by the governor, upon expiration of the time for bills to become law without signature6 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If7 vetoed by the governor and subsequently approved by the legislature, this Act shall become8 effective on the day following such approval.9 The original instrument was prepared by Julie J. Baxter. The following digest, which does not constitute a part of the legislative instrument, was prepared by J. W. Wiley. DIGEST Long (SB 51) Present law provides that any municipality or parish may prescribe civil fines for violation of public health, house, fire code, environmental, and historic district ordinances in the municipality or parish by owners of immovable property, their agents, tenants, or representatives pursuant to the procedures for administrative adjudication provided in the present law. Proposed law retains present law and adds civil fines for blighted or abandoned property. Proposed law provides for the definitions of blighted property and abandoned property. Proposed law exempts any parish whose populations is more than 300,000 and less than 400,000 from the provisions of proposed law. Present law provides that any municipality or parish may adopt an ordinance or ordinances establishing an administrative adjudication hearing procedure under the provisions of present law. Proposed law provides that any municipality or parish may adopt an ordinance or ordinances establishing an administrative adjudication hearing procedure for blighted or abandoned property. Present law provides that any liens against immovable property as a result of such violations shall be included in the next annual ad valorem tax bill and all be paid along with such taxes, subject to any valid homestead exemption. Further provides that failure to pay such liens shall cause the immovable property in or on which the violation occurred to be subject to the same provisions of law as govern tax sales of immovable property, except that, in municipalities with populations in excess of 300,000, when the immovable property has been declared blighted or a public nuisance by an administrative hearing officer, the property owners and other parties having interests in the property shall not have a right of redemption. Present law provides that, in municipalities with populations in excess of 300,000, failure to pay certain liens shall cause such liens and privileges to be subject to enforcement in SB NO. 51 SLS 13RS-261 ENGROSSED Page 8 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. accordance with R.S. 13:2576. Proposed law removes present reference to municipalities with populations in excess of 300,000, so that failure to pay certain liens in any municipality or parish shall cause such liens and privileges to be subject to enforcement in accordance with R.S. 13:2576. Present law provides that prior to holding an administrative hearing for public health, housing, fire code, environmental, and historic district violations, the municipality or parish shall notify the property owner at least 15 days in advance of the date that such a hearing is scheduled. Further provides for the requirements of the notification. Proposed law provides that, except in any parish with a population of more than 300,000 and less than 400,000 according to the latest federal decennial census, prior to holding an administrative hearing for determination of blight or abandonment of property, the municipality or parish shall notify the property owner at least 15 days in advance of the date that such a hearing is scheduled. Further provides for the requirements of the notification. Present law provides that hearing officer will issue an order within 30 days, excluding legal holidays, of the hearing stating whether or not the person charged is liable for the violation, and the amount of any fine, penalty, costs, or fee assessed against him, and a date by which the violation shall be corrected. Proposed law provides that, except in any parish with a population of more than 300,000 and less than 400,000 according to the latest federal decennial census, within 30 days, excluding legal holidays, after the hearing to determine whether a property is blighted or abandoned, the hearing officer shall send written post hearing notice to the property owner and current mortgage holders explaining whether the hearing officer determined the subject property to be blighted or abandoned and state whether any fine, penalty, costs, or fees are assessed. Present law provides that any person determined by the hearing officer to be in violation of a public health, housing, fire code, environmental, or historic district ordinance may appeal this determination to the appropriate district court and provides for the appeal process. Proposed law retains present law and adds blighted or abandoned property determination to the present law appeal process. Present law references administrative adjudication of public health, housing, fire code, environmental and historic district violations. Proposed law adds references to administrative adjudication of blighted or abandoned property. Present law provides that in each municipality having a population of 300,000 or more, the failure to pay liens, privileges, judicial mortgages and any fines, fees, penalties or hearing costs imposed pursuant to R.S. 13:2575 shall cause the lien, privileges, judicial mortgages and any fines, fees, penalties or hearing costs to be enforceable pursuant to certain provisions listed. Proposed law removes reference to municipalities having a population of 300,000 or more, making present law applicable to any municipality or parish. Proposed law provides that if property for which tax sale title was acquired and held by a political subdivision pursuant to R.S. 47:2196 is sold pursuant to the present and proposed law, upon recordation of such sale the property shall no longer be deemed adjudicated property. For purposes of any rights of redemption required pursuant to state law, the redemption period shall be deemed to have commenced on the date of the recordation of the initial adjudication to the political subdivision and not on the date of sale pursuant to the present and proposed law. SB NO. 51 SLS 13RS-261 ENGROSSED Page 9 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Effective upon signature of the governor or lapse of time for gubernatorial action. (Amends R.S. 13:2575(A), (B), (C)(2), (D), (F) and (H) and 2576(A)(intro para); adds R.S. 13:2576(A)(7)) Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Senate and Governmental Affairs to the engrossed bill 1. Exempts any parish whose populations is more than 300,000 and less than 400,000 from the provisions of proposed law. 2. Adds definitions. 3. Adds a hearing procedure for blighted or abandoned property, including pre- hearing notice, post-hearing determination, and appeals process.