Bill Text: CA AB587 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Mobilehomes: payments: nonpayment or late payments.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2016-09-21 - Chaptered by Secretary of State - Chapter 396, Statutes of 2016. [AB587 Detail]

Download: California-2015-AB587-Amended.html
BILL NUMBER: AB 587	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 26, 2015

INTRODUCED BY   Assembly Member Chau

                        FEBRUARY 24, 2015

   An act to  amend   add  Section 
798.15 of   798.58.5 to  the Civil Code,   to
amend Sections 18092.7, 18116.1, and 18550 of the Health and Safety
Code, and to amend Section 5832 of the Revenue and Taxation Code,
  relating to mobilehomes.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 587, as amended, Chau.  Mobilehome park residencies:
rental agreements.   Mobilehomes: payments: nonpayment
or late payments.  
   (1) Existing law subjects manufactured homes or mobilehomes sold
as new prior to July 1, 1980, to a vehicle license fee and requires
annual payment of the fee. Existing law provides that nonpayment of
certain fees and penalties, including the vehicle license fee,
constitutes a lien on the manufactured home or mobilehome, and
prohibits the Department of Housing and Community Development from,
among other things, issuing a duplicate or new certificate of title
or registration card or amending the permanent title record of the
manufactured home or mobilehome that is subject of that lien. 

   This bill would, when a person who is not currently the registered
owner of a manufactured home or mobilehome applies to the department
for registration or transfer of registration of the manufactured
home or mobilehome prior to December 31, 2018, and meets other
specified requirements, require the department to waive all
outstanding charges assessed by the department prior to the transfer
of title of the manufactured home or mobilehome, release any lien
imposed with respect to those charges, issue a duplicate or new
certificate of title or registration card, and amend the title record
of the manufactured home or mobilehome.  
   (2) Existing law provides that mobilehomes and manufactured homes
not subject to the vehicle license fee are subject to local property
taxation, and requires the department to withhold the registration or
transfer of registration of any manufactured home or mobilehome
subject to local property taxation until the applicant for
registration presents a tax clearance certificate or conditional tax
clearance certificate issued by the tax collector of the county where
the manufactured home or mobilehome is located. Existing law
requires the county tax collector to issue a tax clearance
certificate or conditional tax clearance certificate if specified
requirements are met.  
   This bill would, when a person who is not currently the registered
owner of a manufactured home or mobilehome subject to local property
taxation applies to the department for registration or transfer of
registration of the manufactured home or mobilehome prior to December
31, 2018, and meets other specified requirements, require the
department to issue a conditional transfer of title. The bill would
require a county tax collector to issue a tax liability certificate
to a person with a conditional transfer of title who applies for the
certificate prior to January 1, 2019 and pays the taxes reasonably
owed from the date of sale of the manufactured home or mobilehome. By
increasing the duties of county tax collectors this bill would
impose a state-mandated local program.  
   (3) Existing law authorizes the management of a mobilehome park to
terminate a tenancy for, among other things, failure of the
homeowner or resident to comply with a local ordinance or state law
or regulation relating to mobilehomes within a reasonable time after
the homeowner receives a notice of noncompliance from the appropriate
governmental agency. Under existing law, it is unlawful for any
person to use or cause, or permit to be used for occupancy, any
manufactured home or mobilehome that does not conform to the
registration requirements of the department.  
   This bill would prohibit eviction from a mobilehome park for
nonconformance with the registration and titling requirements of
state law prior to January 1, 2017, or when an application to
transfer title of a manufactured home or mobilehome pursuant to the
above-described provisions is filed prior to January 1, 2019, and
completed within one year of the filing date. The bill would provide
that it is not unlawful under these conditions for a park owner to
permit an applicant to transfer title who is not in compliance with
the registration requirements of the department to occupy a
manufactured home or mobilehome. The bill would also make related and
conforming changes. 
   (4)The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.  
   (5)Section 2229 of the Revenue and Taxation Code requires the
Legislature to reimburse local agencies annually for certain property
tax revenues lost as a result of any exemption or classification of
property for purposes of ad valorem property taxation. 
   This bill would provide that, notwithstanding Section 2229 of the
Revenue and Taxation Code, no appropriation is made and the state
shall not reimburse local agencies for property tax revenues lost by
them pursuant to the bill.  
   The Mobilehome Residency Law governs the terms and conditions of
residency in mobilehome parks and prescribes the content of a rental
agreement for a tenancy. The law requires that a copy of the
Mobilehome Residency Law be provided as an exhibit and incorporated
into the rental agreement by reference.  
   This bill would make technical, nonsubstantive changes in these
provisions. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee:  no   yes  .
State-mandated local program:  no   yes  .


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

   SECTION 1.    Section 798.58.5 is added to the 
 Civil Code   , to read:  
   798.58.5.  Notwithstanding Section 798.56, nonconformance with the
registration and titling requirements of state law, including, but
not limited to, nonpayment or late payment of any fees, taxes,
penalties, or interest related to the ownership of a mobilehome or
manufactured home, shall not be a basis for eviction from a
mobilehome park in either of the following situations:
   (a) Prior to January 1, 2017.
   (b) An application to transfer title pursuant to Article 4
(commencing with Section 18098) of Chapter 8 of Part 2 of Division 13
or subdivision (d) of Section 18116.1 of the Health and Safety Code
is filed prior to January 1, 2019, and completed within one year of
the filing date. 
   SEC. 2.    Section 18092.7 of the   Health
and Safety Code   is amended to read: 
   18092.7.  (a)   The   Except as provided in
subdivision (b) and Section 18116.1, the  department shall
withhold the registration or transfer of registration of any
manufactured home, mobilehome, or floating home which is subject to
local property taxation, other than a new manufactured home,
mobilehome, or floating home for which application is being made for
an original registration, until the applicant presents a tax
clearance certificate or a conditional tax clearance certificate
issued pursuant to Section 2189.8 or 5832 of the Revenue and Taxation
Code by the tax collector of the county where the manufactured home,
mobilehome, or floating home is located. Any conditional tax
clearance certificate presented shall indicate that the tax liability
has been satisfied pursuant to paragraph (3) of subdivision (m) of
Section 18035.
   (b)  In lieu of the tax clearance certificate or conditional tax
clearance certificate required by subdivision (a), the department may
accept a certification signed by the escrow officer under penalty of
perjury that the tax collector of the county where the manufactured
home is located has failed to respond to the written demand for a
conditional tax clearance certificate as prescribed by subdivision
 (   l   )   (m) 
of Section 18035.
   SEC. 3.    Section 18116.1 of the   Health
and Safety Code   is amended to read: 
   18116.1.  (a)  Nonpayment of the fees and penalties provided for
in Sections 18114, 18114.1, and 18115, and in subdivisions (a), (b),
(c), and (d) of Section 18116 that are due on a mobilehome,
manufactured home, commercial coach, truck camper, or floating home
shall constitute a lien in favor of the State of California in the
amount owing.
   (b)  Notwithstanding any other provision of law, the lien provided
for in subdivision (a) shall include all fees and penalties due and
unpaid beginning with the fees for original registration that became
delinquent for 120 days or more and continue to accrue to include all
fees and penalties that subsequently become due and remain unpaid.
   (c)  Until the amount of a lien provided for in subdivision (a) or
(b) is paid to the department, the department shall not do either of
the following:
   (1)  Amend the permanent title record of the manufactured home,
mobilehome, commercial coach, truck camper, or floating home which is
the subject of the lien for the purpose of transferring any
ownership interest or transferring or creating any security interest
in the manufactured home, mobilehome, commercial coach, truck camper,
or floating home.
   (2)  Issue any duplicate, substitute, or new certificate of title,
registration card, or copy of a registration card with respect to
the manufactured home, mobilehome, commercial coach, truck camper, or
floating home which is the subject of the lien. 
   (d) (1) When application is made to the department for
registration or transfer of registration of a manufactured home or
mobilehome, and the applicant is not currently the registered owner,
with respect to all charges assessed by the department prior to the
date the title or interest in the manufactured home or mobilehome was
transferred to the applicant, the department shall release any lien
imposed pursuant to this chapter and waive all outstanding charges
assessed by the department, if all of the following requirements are
met:  
   (A) The applicant provides documentation demonstrating to the
satisfaction of the department ownership and the date of acquisition
of title or interest pursuant to Section 18100.5 or 18102.5. 

   (B) The application is made prior to December 31, 2018.  

   (C) The applicant pays any charges assessed by the department
during the period between the time the applicant took title or
interest or December 31, 2014, whichever is later, and the time the
applicant applies for relief pursuant to this subdivision.  

   (D) The applicant has not previously filed for relief pursuant to
this subdivision.  
   (2) If the applicant meets the requirements of paragraph (1) and
the other requirements of this chapter not related to nonpayment or
late payment of the department's charges, fees, and penalties related
to registration and titling, the department shall waive the
outstanding charges, fees, or penalties identified in paragraph (1),
amend the title record, and issue a duplicate, substitute, or new
certificate of title, registration card, or copy of a registration
card with respect to the manufactured home or mobilehome, in
conformance with this chapter.  
   (3) For purposes of any amounts owing pursuant to this
subdivision, the department may establish a long term payment program
of up to five years. The department may provide that any amounts
owing under the payment program shall constitute a lien in favor of
the State of California in the amount owing and shall be paid in full
if the manufactured home or mobilehome is subsequently transferred.
Failure to make the payments required by the plan is a violation of
this chapter for which the department may suspend, revoke, or cancel
the certificate of title pursuant to Section 18122.  
   (4) (A) If the manufactured home or mobilehome for which an
application has been submitted and approved pursuant to this
subdivision and the other requirements of this chapter not related to
nonpayment or late payment of the department's charges, fees, and
penalties related to registration and titling, is subject to local
property taxation, the department shall issue a conditional transfer
of title.  
   (B) Upon presentation of a completed tax liability certificate as
provided in subdivision (f) of Section 5832 of the Revenue & Taxation
Code, if the applicant meets all of the requirements of this section
and the other requirements of this chapter not related to nonpayment
or late payment of the department's charges, fees, and penalties
related to registration and titling, and the requirements of
paragraph (2) are met, the department shall amend the title record
and issue a duplicate, substitute, or new certificate of title. 

   SEC. 4.    Section 18550 of the   Health and
Safety Code   is amended to read: 
   18550.  It is unlawful for any person to use or cause, or permit
to be used for occupancy, any of the following manufactured homes or
mobilehomes wherever the manufactured homes or mobilehomes are
located, or recreational vehicles located in mobilehome parks:
   (a)  Any manufactured home, mobilehome, or recreational vehicle
supplied with fuel, gas, water, electricity, or sewage connections,
unless the connections and installations conform to regulations of
the department.
   (b)  Any manufactured home, mobilehome, or recreational vehicle
that is permanently attached with underpinning or foundation to the
ground, except for a manufactured home or mobilehome bearing a
department insignia or federal label, that is installed in accordance
with this part.
   (c)   (1)    Any manufactured home or mobilehome
that does not conform to the registration requirements of the
 department.   department, except as otherwise
provided in this subdivision.  
   (2) Nonconformance is not a basis for eviction from a mobilehome
park of a person claiming to be an owner of a manufactured home or
mobilehome if the person files an application to transfer title
pursuant to Article 4 (commencing with Section 18098) of Chapter 8 of
Part 2 of Division 13 or subdivision (d) of Section 18116.1 prior to
January 1, 2019, and completes the application within one year of
the filing date.  
   (3) It is not a violation of this section for a park owner to
allow a person not in compliance with the registration requirements
of the department to occupy a manufactured home or mobilehome if the
person meets the requirements of paragraph (2). 
   (d)  Any manufactured home, mobilehome, or recreational vehicle in
an unsafe or unsanitary condition.
   (e)  Any manufactured home, mobilehome, or recreational vehicle
that is structurally unsound and does not protect its occupants
against the elements.
   SEC. 5.    Section 5832 of the   Revenue and
Taxation Code   is amended to read: 
   5832.  (a) (1) Upon application, the county tax collector shall
issue a tax clearance certificate or a conditional tax clearance
certificate.
   (2) Any tax clearance certificate issued shall be used to permit
registration of used manufactured homes and for any other purposes
that may be prescribed by the Controller. The certificate may
indicate that the county tax collector finds that no local property
tax is due or is likely to become due, or that any applicable local
property taxes have been paid or are to be paid in a manner not
requiring the withholding of registration or the transfer of
registration.
   (3) Any conditional tax clearance certificate issued shall
indicate that the county tax collector finds that a tax liability
exists, the amount due, and the final date that amount may be paid
before a further tax liability is incurred. The certificate shall be
in any form that the Controller may prescribe, and shall be executed,
issued, and accepted for clearance of registration or permit
issuance on the conditions which the Controller may prescribe.
   (b) Within five working days of receipt of the written demand for
a conditional tax clearance certificate or tax clearance certificate,
the county tax collector shall forward the conditional tax clearance
certificate or tax clearance certificate, showing no tax liability
exists, to the requesting escrow officer. In the event the final due
date of the tax clearance certificate or conditional tax clearance
certificate expires within 30 days of the date of its issuance, an
additional conditional tax clearance certificate or tax clearance
certificate shall be completed, which has a final due date of at
least 30 days beyond the date of issuance. The tax collector shall
not charge a fee for the issuance of a certificate unless a
previously issued tax clearance certificate or conditional tax
clearance certificate expires prior to the date upon which title
transfers. The fee for the issuance of a subsequent certificate with
respect to that manufactured home shall be an amount equal to the
actual costs of preparing and processing that certificate.
   (c) If the tax collector fails to comply with the demand within 30
days from the date the demand is mailed, the escrow officer may
close the escrow in accordance with the provisions of subdivision (m)
of Section 18035 of the Health and Safety Code.
   (d) Notwithstanding any provisions of law requiring the tax
collector to issue a tax clearance certificate or conditional tax
clearance certificate within a specified period of time, when an
escrow information demand is made pursuant to Section 18035 of the
Health and Safety Code for a manufactured home that has not been
enrolled in the county, the tax collector shall be afforded the
number of working days necessary for the assessor to determine the
value of the manufactured home and for the auditor to extend tax
liability.
   (e) The issuance, alteration, forgery, or use of any tax clearance
certificate or conditional certificate in a manner contrary to the
requirements of the Controller constitutes a misdemeanor. 
   (f) (1) Prior to January 1, 2019, a person with a conditional
transfer of title as described in subparagraph (A) of paragraph (4)
of subdivision (d) of Section 18116.1 of the Health & Safety Code may
apply to the tax collector to issue either a tax liability or tax
clearance certificate. The county tax collector shall issue a tax
liability certificate if the person pays the taxes reasonably owed
from the date of sale as shown on the conditional transfer of title,
without penalties or interest, and not to exceed the amounts
attributable one year prior to January 1, 2016.  
   (2) Upon issuance of a tax clearance or liability certificate, the
applicant shall be listed as the owner of record for all local
property tax purposes and the home shall not be subject to lien or
seizure based on any taxes, penalties, or interest as noted on the
certificate issued pursuant to paragraph (1). The tax collector shall
notify the assessor and other county agencies of the change. 

   (3) This subdivision does not relieve any owner other than the
applicant from tax liability, including penalties and interest,
arising from nonpayment prior to the date of sale, or prohibit a
county tax collector from collecting delinquent taxes, penalties, or
interest due prior to the date of sale, from any owner other than the
applicant. 
   SEC. 6.    The Legislature finds and declares that
the abatement of taxes, penalties, and interest incurred prior to the
date of sale of a mobilehome or manufactured home to an applicant,
as described in this act, serves a public purpose and does not
constitute a gift of public funds within the meaning of Section 6 of
Article XVI of t   he California Constitution. 
   SEC. 7.    If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code. 
   SEC. 8.    Notwithstanding Section 2229 of the
Revenue and Taxation Code, no appropriation is made by this act and
the state shall not reimburse any local agency for any property tax
revenues lost by it pursuant to this act.  
  SECTION 1.    Section 798.15 of the Civil Code is
amended to read:
   798.15.  The rental agreement shall be in writing and shall
contain, in addition to the provisions otherwise required by law to
be included, all of the following:
   (a) The term of the tenancy and the rent therefor.
   (b) The rules and regulations of the park.
   (c) A copy of the text of this chapter shall be provided as an
exhibit and shall be incorporated into the rental agreement by
reference. Management shall do one of the following prior to February
1 of each year, if a significant change was made in this chapter by
legislation enacted in the prior year:
   (1) Provide all homeowners with a copy of this chapter.
   (2) Provide written notice to all homeowners that there has been a
change to this chapter and that they may obtain one copy of this
chapter from management at no charge. Management shall provide a copy
within a reasonable time, not to exceed seven days, upon request.
   (d) A provision specifying that:
   (1) It is the responsibility of the management to provide and
maintain physical improvements in the common facilities in good
working order and condition.
   (2) With respect to a sudden or unforeseeable breakdown or
deterioration of these improvements, the management shall have a
reasonable period of time to repair the sudden or unforeseeable
breakdown or deterioration and bring the improvements into good
working order and condition after management knows or should have
known of the breakdown or deterioration. For purposes of this
paragraph, a reasonable period of time to repair a sudden or
unforeseeable breakdown or deterioration shall be as soon as possible
in situations affecting a health or safety condition, and shall not
exceed 30 days in any other case except where exigent circumstances
justify a delay.
   (e) A description of the physical improvements to be provided the
homeowner during his or her tenancy.
   (f) A provision listing those services which will be provided at
the time the rental agreement is executed and will continue to be
offered for the term of tenancy and the fees, if any, to be charged
for those services.
   (g) A provision stating that management may charge a reasonable
fee for services relating to the maintenance of the land and premises
upon which a mobilehome is situated in the event the homeowner fails
to maintain the land or premises in accordance with the rules and
regulations of the park after written notification to the homeowner
and the failure of the homeowner to comply within 14 days. The
written notice shall state the specific condition to be corrected and
an estimate of the charges to be imposed by management if the
services are performed by management or its agent.
   (h) All other provisions governing the tenancy.
   (i) A copy of the following notice. Management shall also, prior
to February 1 of each year, provide a copy of the following notice to
all homeowners:
        IMPORTANT NOTICE TO ALL MANUFACTURED
   HOME/MOBILEHOME OWNERS: CALIFORNIA LAW REQUIRES
      THAT YOU BE MADE AWARE OF THE FOLLOWING:
The Mobilehome Residency Law (MRL), found in
Section 798 et seq. of the Civil Code,
establishes the rights and responsibilities of
homeowners and park management. The MRL is deemed
a part of the terms of any park rental agreement
or lease. This notice is intended to provide you
with a general awareness of selected parts of the
MRL. It does not serve as a legal explanation or
interpretation. For authoritative information,
you must read and understand the laws. These laws
change from time to time. In any year in which
the law has changed, you may obtain one copy of
the full text of the law from management at no
charge. This notice is required by Civil Code
Section 798.15(i) and the information provided
may not be current.
Homeowners and park management have certain
rights and responsibilities under the MRL. These
include, but are not limited to:
      Management must give a homeowner written
1.   notice of any increase in his or her rent at
      least 90 days before the date of the
      increase. (Civil Code Section       798.30)
      No rental or sales agreement may contain a
      provision by which a purchaser or a
2.   homeowner waives any of his or her rights
      under the MRL. (Civil Code Sections 798.19,
      798.77)
      Management may not terminate or refuse to
      renew a homeowner's tenancy except for one
3.   or more of the authorized reasons set forth
      in the MRL. (Civil Code Sections 798.55,
      798.56)
      A homeowner must give written notice to the
4.   management of not less than 60 days before
      vacating his or her tenancy. (Civil Code
      Section 798.59)
      Homeowners, residents, and their guests must
      comply with the rental agreement or lease,
      including the reasonable rules and
5.   regulations of the park and all applicable
      local ordinances and state laws and
      regulations relating to mobilehomes. Failure
      to comply could be grounds for eviction from
      the park. (Civil Code Section 798.56)
      Homeowners must pay rent, utility charges,
      and reasonable incidental service charges in
6.   a timely manner. Failure to comply could be
      grounds for eviction from the park. (Civil
      Code Section 798.56)
      Homeowners have a right to peacefully
      assemble and freely communicate with respect
      to mobilehome living and for social or
      educational purposes. Homeowners have a
      right to meet in the park, at reasonable
      hours and in a reasonable manner, for any
      lawful purpose.       Homeowners may not be
      charged a cleaning deposit in order to use
7.   the park clubhouse for meetings of resident
      organizations or for other lawful purposes,
      such as to hear from political candidates,
      so long as a homeowner of the park is
      hosting the meeting and all park residents
      are allowed to attend. Homeowners may not be
      required to obtain liability insurance in
      order to use common facilities unless
      alcohol is served. (Civil Code Sections
      798.50, 798.51)
      If a home complies with certain standards,
      the homeowner is entitled to sell it in
      place in the park. Management may require
      certain upgrades. Management may not require
      a homeowner to sell his or her home to the
      park, may not charge a transfer or selling
8.   fee, and may not require a homeowner to use
      a broker or dealer approved by the park. A
      homeowner has a right to       advertise his
      or her home for sale. Management may deny
      approval of a buyer, but only for certain
      reasons listed in the law. (Civil Code
      Sections 798.70-798.74)
      Management has the right to enter the space
      upon which a mobilehome is situated for
      maintenance of utilities, trees, and
      driveways; for inspection and maintenance of
      the space in accordance with the rules and
      regulations of the park when the homeowner
9.   or resident fails to maintain the space; and
      for protection and maintenance of the
      mobilehome park at any reasonable time, but
      not in a manner or at a time that would
      interfere with the resident's quiet
      enjoyment of his or her home. (Civil Code
      Section 798.26)
      A homeowner may not make any improvements or
      alterations to his or her       space or
      home without following the rules and
      regulations of the park and all applicable
      local ordinances and state laws and
10.  regulations, which may include obtaining a
      permit to construct, and, if required by
      park rules or the rental agreement, without
      prior written approval of management.
      Failure to comply could be grounds for
      eviction from the park. (Civil Code Section
      798.56)


       
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