BILL NUMBER: SB 188 CHAPTERED
BILL TEXT
CHAPTER 270
FILED WITH SECRETARY OF STATE SEPTEMBER 4, 2015
APPROVED BY GOVERNOR SEPTEMBER 4, 2015
PASSED THE SENATE MAY 14, 2015
PASSED THE ASSEMBLY AUGUST 20, 2015
AMENDED IN SENATE APRIL 14, 2015
INTRODUCED BY Senator Hancock
(Coauthors: Senators Wieckowski and Wolk)
(Coauthor: Assembly Member Bonilla)
FEBRUARY 9, 2015
An act to amend and repeal Section 12811.1 of the Public Utilities
Code, relating to utility charges.
LEGISLATIVE COUNSEL'S DIGEST
SB 188, Hancock. Municipal utility district: utility charges:
delinquencies.
(1) The existing Municipal Utility District Act authorizes the
formation of a municipal utility district. The act authorizes a
district to acquire, construct, own, operate, control, or use works
for supplying the inhabitants of the district and public agencies
with light, water, power, heat, transportation, telephone service, or
other means of communication, or means for the collection,
treatment, or disposition of garbage, sewage, or refuse matter. The
act authorizes a municipal utility district, by resolution or
ordinance, to require the owner of record of privately owned real
property within the district to pay the fees, tolls, rates, rentals,
or other charges for certain utility services rendered to a lessee,
tenant, or subtenant, and provides that those charges that have
become delinquent, together with interest and penalties, are a lien
on the property when a certificate is filed by the district in the
office of the county recorder and that the lien has the force,
effect, and priority of a judgment lien.
The act, in addition to the above-described methods, establishes
procedures, until January 1, 2016, for a municipal utility district
to collect delinquent fees, tolls, rates, rentals, or other charges,
together with interest and penalties thereon, for services rendered
to a lessee, tenant, or subtenant, through the tax roll, in the same
manner as property taxes. The act, until January 1, 2016, authorizes
a municipal utility district to collect delinquent fees, tolls,
rates, rentals, or other charges, together with interest and
penalties thereon, for services rendered to a lessee, tenant, or
subtenant, by recording in the office of the county recorder of the
county in which the affected parcel is located, a certificate
declaring the amount of the delinquent charges, together with
interest and penalties thereon, which would then constitute a lien
against the affected real property of the delinquent property owner
in that county and have the force, effect, and priority of a judgment
lien. The act, until January 1, 2016, requires a municipal utility
district that exercises these collection measures to reimburse the
county for the reasonable expenses incurred by the county.
This bill would extend the operation of these provisions
indefinitely. By requiring county auditors and recorders to undertake
certain actions in response to the exercise of collection measures
by a municipal utility district, the bill would impose a
state-mandated local program.
(2) The act prohibits a municipal utility district from collecting
delinquent fees or charges using the above-described collection
measures for the furnishing of electrical services and, beginning
January 1, 2016, for the furnishing of water or sewer service to
residential property.
This bill would permanently authorize a municipal utility district
to collect delinquent fees or charges using the above-described
collection measures for the furnishing of water or sewer service to
residential property.
(3) The act requires any district that places a lien on a property
for water or sewer service on or before December 31, 2014, pursuant
to the above-described collection measures, to submit a report
containing certain information to the Assembly and Senate Committees
on Judiciary and to the Assembly and Senate Committees on Local
Government on or before January 1, 2015.
This bill would delete this provision.
(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 no reimbursement is required by this
act for a specified reason.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. This act is intended to remove the sunset date in
Section 12811.1 of the Public Utilities Code on the authority of a
municipal utility district to collect delinquent fees, tolls, rates,
rentals, and other charges on the tax roll. This act is not intended
to change existing law regarding the protection provided to a
property owner pursuant to Section 12822.6 of the Public Utilities
Code, which prohibits a municipal utility district from collecting
delinquent charges or penalties from a property owner accrued by a
residential tenant in a nonmaster-metered building.
SEC. 2. Section 12811.1 of the Public Utilities Code, as amended
by Section 1 of Chapter 485 of the Statutes of 2010, is amended to
read:
12811.1. (a) Except when prohibited by Section 12822.6, a
district may, by resolution or ordinance, require the owner of record
of real property within the district to pay the fees, tolls, rates,
rentals, or other charges for services rendered to a lessee, tenant,
or subtenant, and those fees, tolls, rates, rentals, and other
charges that have become delinquent, together with interest and
penalties thereon, are a lien on the property when a certificate is
filed in the office of the county recorder pursuant to subdivision
(b) and the lien has the force, effect, and priority of a judgment
lien. No lien may be created under this section on any publicly owned
property.
(b) A lien under this section attaches when the district files for
recordation in the office of the county recorder a certificate
specifying the amount of the delinquent fees, tolls, rates, rentals,
or other charges together with interest and penalties thereon; the
name of the owner of record of the property to which services were
rendered by the district; and the legal description of the property.
Within 30 days of receipt of payment of all amounts due, including
recordation fees paid by the district, the district shall file for
recordation a release of the lien.
(c) A district may, by resolution or ordinance, provide that any
delinquent fees, tolls, rates, rentals, or other charges, together
with interest and penalties thereon, including any delinquent fees,
tolls, rates, rentals, or other charges for services rendered to a
lessee, tenant, or subtenant, may be collected on the tax roll in the
same manner as property taxes. Before any entity may collect any
delinquent fees, tolls, rates, rentals, or other charges, together
with interest and penalties thereon, including any delinquent fees,
tolls, rates, rentals, or other charges for services rendered to a
lessee, tenant, or subtenant on the tax roll, the district shall
prepare a report, provide notice, conduct a public hearing, and file
a certificate in the office of the county recorder, as follows:
(1) The general manager shall prepare and file with the district
board of directors a report that describes each affected parcel of
real property and the amount of the delinquent fees, tolls, rates,
rentals, or other charges, together with interest and penalties
thereon, including any delinquent fees, tolls, rates, rentals, or
other charges for services rendered to a lessee, tenant, or subtenant
for each affected parcel for the year. The general manager shall
give notice of the filing of the report and of the time, date, and
place for a public hearing by publishing the notice pursuant to
Section 6066 of the Government Code in a newspaper of general
circulation, and by mailing the notice to the owner of each affected
parcel at least 14 days prior to the date of the hearing.
(2) At the public hearing, the board of directors shall hear and
consider any objections or protests to the report. At the conclusion
of the public hearing, the board of directors may adopt or revise the
delinquent fees, tolls, rates, rentals, or other charges, together
with interest and penalties thereon, including any delinquent fees,
tolls, rates, rentals, or other charges for services rendered to a
lessee, tenant, or subtenant. The board of directors shall make its
determination on each affected parcel and its determinations shall be
final.
(3) On or before August 10 of each year following these
determinations, the general manager shall file with the county
auditor a copy of the final report adopted by the board of directors.
The county auditor shall enter the amount of the delinquent fees,
tolls, rates, rentals, or other charges, together with interest and
penalties thereon, including any delinquent fees, tolls, rates,
rentals, or other charges for services rendered to a lessee, tenant,
or subtenant, against each of the affected parcels of real property
as they appear on the current assessment roll. The county tax
collector shall include the amount of the delinquent fees, tolls,
rates, rentals, or charges, together with interest and penalties
thereon, including any delinquent fees, tolls, rates, rentals, or
other charges for services rendered to a lessee, tenant, or
subtenant, on the tax bills for each affected parcel of real property
and collect the delinquent fees, tolls, rates, rentals, or charges,
together with interest and penalties thereon, including any
delinquent fees, tolls, rates, rentals, or other charges for services
rendered to a lessee, tenant, or subtenant, in the same manner as
property taxes.
(4) The district may recover any delinquent fees, tolls, rates,
rentals, or other charges, together with interest and penalties
thereon, including any delinquent fees, tolls, rates, rentals, or
other charges for services rendered to a lessee, tenant, or
subtenant, by recording in the office of the county recorder of the
county in which the affected parcel is located, a certificate
declaring the amount of the delinquent fees, tolls, rates, rentals,
or charges, together with interest and penalties thereon, including
any delinquent fees, tolls, rates, rentals, or other charges for
services rendered to a lessee, tenant, or subtenant, due, and the
name and last known address of the person liable therefor. From the
time of recordation of the certificate, the amount of the delinquent
fees, tolls, rates, rentals, or charges, together with interest and
penalties thereon, including any delinquent fees, tolls, rates,
rentals, or other charges for services rendered to a lessee, tenant,
or subtenant, constitutes a lien against the affected real property
of the delinquent property owner in that county. This lien shall have
the force, effect, and priority of a judgment lien. Within 30 days
of receipt of payment of all amounts due, including recordation fees
paid by the district, the district shall file for recordation a
release of the lien.
(5) The district shall not recover on the tax roll any delinquent
fees, tolls, rates, rentals, or other charges for services for
commercial use to a commercial tenant under an account established by
the commercial tenant, from any subsequent tenant or the property
owner, due to nonpayment of charges by a previous commercial tenant.
For this purpose, the term "subsequent commercial tenant" shall not
include an entity or adult person that was located at the same
address during the period the charges or penalties accrued. This
paragraph does not apply to master-metered accounts.
(d) Notwithstanding Sections 6103 and 27383 of the Government
Code, in filing any instrument, paper, or notice pursuant to this
section, the district shall pay all applicable recording fees
prescribed by law.
(e) A district shall reimburse the county for the reasonable
expenses incurred by the county pursuant to this section.
(f) The remedies in this section are cumulative and in addition to
any other remedy provided by law. The district may pursue remedies
alternatively or consecutively.
(g) This section does not apply to delinquent fees or charges for
the furnishing of electrical service.
SEC. 3. Section 12811.1 of the Public Utilities Code, as added by
Section 2 of Chapter 485 of the Statutes of 2010, is repealed.
SEC. 4. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.