Bill Text: CA AB587 | 2015-2016 | Regular Session | Chaptered
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-Chaptered.html
BILL NUMBER: AB 587 CHAPTERED
BILL TEXT
CHAPTER 396
FILED WITH SECRETARY OF STATE SEPTEMBER 21, 2016
APPROVED BY GOVERNOR SEPTEMBER 21, 2016
PASSED THE SENATE AUGUST 22, 2016
PASSED THE ASSEMBLY AUGUST 25, 2016
AMENDED IN SENATE AUGUST 15, 2016
AMENDED IN SENATE JUNE 30, 2016
AMENDED IN SENATE JUNE 20, 2016
AMENDED IN SENATE JUNE 8, 2016
AMENDED IN SENATE JUNE 23, 2015
AMENDED IN ASSEMBLY APRIL 30, 2015
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Chau
FEBRUARY 24, 2015
An act to amend Section 798.15 of the Civil Code, to amend
Sections 18092.7, 18116.1, and 18550 of, and to add Section 18550.1
to, 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, Chau. 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
(department) 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 the
subject of that lien.
This bill, 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, 2019, and meets other specified
requirements, would 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.
The California Constitution authorizes the Legislature to exempt
personal property from taxation by means of a statute approved by a
2/3 vote of the membership of each house.
This bill, 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, 2019, and meets other specified requirements, would 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, 2020. Pursuant to the constitutional
authorization described above, this bill would require the payment of
only a portion of the taxes, as specified, 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) The Mobilehome Residency Law governs the terms and conditions
of residency in mobilehome parks and requires a rental agreement for
a tenancy to include, among other things, a specified notice.
This bill would revise the contents of the notice.
(4) Existing law prohibits the use or occupancy of a manufactured
home, mobilehome, or recreational vehicle that fails to conform to
the regulations of the department, regarding, among other things,
water, electricity, and sewer connections.
This bill, beginning January 1, 2020, would make it unlawful for
any person to use for occupancy any manufactured home or mobilehome
that does not conform to the registration requirements of the
department, if the department provides notice to the occupant of the
registration requirements and any registration fees due.
(5) 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.
(6) 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 PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
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 and (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 subdivision, 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 and other important laws. 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
or more of the authorized reasons set forth
in the MRL. (Civil Code Sections 798.55,
3. 798.56) Homeowners must pay rent, utility
charges, and reasonable incidental service
charges in a timely manner. Failure to
comply could be grounds for eviction from
the park. (Civil Code Section 798.56)
Homeowners, residents, and their
guests must comply with the rental agreement
or lease, including the reasonable rules and
4. 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 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
5. 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. If you sell your home,
you are required to provide a manufactured
home and mobilehome transfer disclosure
statement to the buyer prior to sale. (Civil
Code Section 1102.6d) When a home is sold,
6. the owner is required to transfer the title
to the buyer. The sale of the home is not
complete until you receive the title from
the seller. It is the responsibility of the
buyer to also file paperwork with the
Department of Housing and Community
Development to register the home in his or
her name. (Civil Code Sections 798.70-798.74)
7. 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
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)
8. 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 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)
In California, mobilehome owners must pay
annual property tax to the county tax
collector or an annual fee in lieu of taxes
9. to the Department of Housing and Community
Development (HCD). If you are unsure which
to pay, contact HCD. Failure to pay taxes or
in lieu fees can have serious consequences,
including losing your home at a tax sale.
For more information on registration,
titling, and taxes, contact: the Department
10. of Housing and Community Development
www.hcd.ca.gov (800) 952-8356; your County
Tax Collector; or call your local county
government.
SEC. 2. Section 18092.7 of the Health and Safety Code is amended
to read:
18092.7. (a) 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
(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 ownership interest pursuant to Section 18100.5 or 18102.5.
(B) The application is made prior to December 31, 2019.
(C) The applicant pays any charges assessed by the department
during the period between the time the applicant took ownership
interest or December 31, 2015, 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.
(E) Any lien pursuant to Section 16182 of the Government Code has
been satisfied.
(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 and
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) Any manufactured home, mobilehome, or recreational vehicle in
an unsafe or unsanitary condition.
(d) Any manufactured home, mobilehome, or recreational vehicle
that is structurally unsound and does not protect its occupants
against the elements.
SEC. 5. Section 18550.1 is added to the Health and Safety Code, to
read:
18550.1. On and after January 1, 2020, it is unlawful for any
person to use for occupancy any manufactured home or mobilehome,
wherever the manufactured home or mobilehome is located, that does
not conform to the registration requirements of the department,
provided that the department has provided notice to the occupant of
the registration requirements and any registration fees due.
SEC. 6. 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, 2020, 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 and 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, 2017.
(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. 7. 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 the
California Constitution.
SEC. 8. 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. 9. 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.
