Bill Text: CA AB2231 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: State Controller: property tax postponement.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Passed) 2014-09-28 - Chaptered by Secretary of State - Chapter 703, Statutes of 2014. [AB2231 Detail]

Download: California-2013-AB2231-Amended.html

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BILL NUMBER: AB 2231	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 21, 2014
	AMENDED IN ASSEMBLY  MARCH 24, 2014

INTRODUCED BY   Assembly Members Gordon, Levine, and Patterson

                        FEBRUARY 20, 2014

   An act to amend Sections  16181,  16182,  16184,
 16186, 16190, 16200, 16210, 16211,  16211.5, and 16213
  and 16211.5  of, to repeal Sections 16185, 16212,
 16213,  and 16214 of, and to repeal and add Section 16180
of, the Government Code, and to amend Sections 2514, 3375, 20503,
20583, 20584, 20602, 20621, 20622, 20645.5, and 20645.6 of, to amend
and repeal Section 20623 of, to repeal Section 20583.1 of, to add
Section 3376 to, and to repeal Chapter 3.3 (commencing with Section
20639) of Part 10.5 of Division 2 of, the Revenue and Taxation Code,
relating to state government, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2231, as amended, Gordon. State Controller: property tax
postponement.
   The Senior Citizens and Disabled Citizens Property Tax
Postponement Law, until February 20, 2009, authorized a claimant, as
defined, to file a claim with the Controller to postpone the payment
of ad valorem property taxes,  where   if 
household income, as defined, did not exceed specified amounts. That
law authorized the Controller, upon approval of the claim, to either
make a payment directly to specified entities, or to issue the
claimant a certificate of eligibility that constituted a written
promise of the state to pay the amount specified on the certificate,
as provided. That law required these payments to be made out of
specified funds appropriated to the Controller, and also required
certain repaid property tax postponement payments to be paid into an
impound account and transferred, as specified, to the General Fund.
That law also required all sums paid by the Controller for postponed
property taxes to be secured by a lien in favor of the State of
California.
   Existing law, on and after February 20, 2009, prohibits a person
from filing a claim for postponement, and prohibits the Controller
from accepting applications for postponement, under the Senior
Citizens and Disabled Citizens Property Tax Postponement Law.
   This bill would make inoperative the prohibition against a person
filing a claim for postponement and the Controller from accepting
applications for postponement under the program as of July 1, 2015,
and would repeal these provisions on January 1, 2016. This bill would
exclude losses and nonexpenses from "income" for purposes of these
provisions. This bill would also exclude mobilehomes and houseboats
from the scope of these provisions, would repeal the related Senior
Citizens Mobilehome Property Tax Postponement Law, and make
conforming changes to related provisions.
   This bill would create in the State Treasury a Senior Citizens and
Disabled Citizens Property Tax Postponement Fund. This bill would
delete the requirement that funds be placed in an impound account and
would, instead, require that repaid property tax postponement
payments be directly deposited into the newly created fund. The bill
would continuously appropriate these funds to the Controller for
purposes of administering the property tax postponement program, as
specified.
   Existing law authorizes the Controller to subordinate the lien for
postponed property taxes  where   if  the
Controller determines subordination is appropriate.
   This bill would eliminate that authorization  and make other
conforming changes  .
   Existing law requires that the owners equity interest in the
residential dwelling be at least 20% of the full value of the
property in order to be eligible to participate in the postponement
program.
   This bill would increase the equity requirement to at least 40%.
   Existing law requires the repayment of postponed taxes in
specified circumstances.
   This bill would, in addition, require repayment if the claimant
refinances the dwelling or has elected to participate in a revenue
mortgage program for the dwelling. The bill would require that the
county tax collector notify the Controller within 60 days of all
property subject to a "Notice of Lien for Postponed Property Taxes"
becoming tax defaulted or subject to collection procedures, as
specified.
   Existing law requires a claim for postponement to be filed after
May 15 of the calendar year in which the fiscal year for which
postponement is claimed begins, and on or before December 10 of that
fiscal year.
   This bill would instead require a claim for postponement to be
filed after September 1 of the calendar year in which the fiscal year
for which postponement is claimed begins, and on or before April 10
of that fiscal year.
   Existing law makes optional certain duties of local agencies
related to recordation of the tax lien.
   This bill would delete that provision, thereby imposing a
state-mandated local program.
   Existing law requires, if a postponement claim, as specified, is
filed timely but before the delinquency date of the first or 2nd
installment of property taxes, that any delinquent penalties and
interest for the fiscal year be canceled unless the failure to
perfect the claim was due to willful neglect on the part of the
claimant or representative, in which case the certificates of
eligibility for the fiscal year can be used to pay delinquent taxes
only if accompanied by sufficient amounts to pay the delinquent
interest and penalties.
   This bill would instead require, if a postponement claim is filed
timely before the delinquency date of the 2nd installment of property
taxes on the secured roll, that any delinquent penalties, costs,
fees, and interest accrued for the fiscal year be canceled. This bill
would instead require, in the event of willful neglect to perfect
the claim, that an electronic funds transfer for that current fiscal
year be used to pay only the delinquent taxes. This bill would
authorize the tax collector, if the payment amount sufficient to pay
all of the delinquent penalties, costs, fees, and interest is not
received by the tax collector within 30 days from the date of the
electronic funds transfer, to return the electronic funds transfer to
the Controller to deny the postponement claim. This bill would
require the Controller to provide a specified notification to the
claimant and a copy of the notification to the tax collector.
   This bill would also require the Controller, upon written request
of the tax collector, to provide the tax collector with information
that is required for the preparation and enforcement of the sale of
tax-defaulted property, and would require the tax collector or his or
her designee to certify, under penalty of perjury, that the
information is requested for these purposes. This bill would also
provide that any information provided to the tax collector is not a
public record and is not open to public inspection. By requiring the
tax collector to make a certification under penalty of perjury, this
bill would expand the crime of perjury thereby imposing a
state-mandated local program.
   Existing constitutional provisions require that a statute that
limits the right of access to the meetings of public bodies or the
writings of public officials and agencies be adopted with findings
demonstrating the interest protected by the limitation and the need
for protecting that interest.
   This bill would make legislative findings to that effect.
   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 with regard to certain mandates no
reimbursement is required by this act for a specified reason.
   With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
   Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 16180 of the Government Code is repealed.
  SEC. 2.  Section 16180 is added to the Government Code, to read:
   16180.  (a) There is hereby created in the State Treasury a Senior
Citizens and Disabled Citizens Property Tax Postponement Fund.
Subject to subdivision (b) and notwithstanding Section 13340, the
fund is continuously appropriated to the Controller, commencing
January 1, 2015, for purposes of administering this chapter,
including, but not limited to, necessary administrative costs and
disbursements relating to the postponement of property taxes pursuant
to the Senior Citizens and Disabled Citizens Property Tax
Postponement Law (Chapter 2 (commencing with Section 20581) of Part
10.5 of Division 2 of the Revenue and Taxation Code).
   (b) The Controller shall transfer any moneys in the fund in excess
of ten million dollars ($10,000,000) to the General Fund.
   (c) Any loan repayments relating to the Senior Citizens and
Disabled Citizens Property Tax Postponement Law shall be deposited
into the Senior Citizens and Disabled Citizens Property Tax
Postponement Fund.
  SEC. 3.    Section 16181 of the   Government
Code   is amended to read: 
   16181.  (a) The Controller shall maintain a record of all
properties against which a notice of lien for postponed property
taxes has been recorded. The record shall include, but not be limited
to, the names of each claimant, a description of the real property
against which the lien is recorded, the identification number of the
notice of lien assigned by the Controller, and the amount of the
lien. 
   (b) The Controller shall maintain a record of all properties
against which the Department of Housing and Community Development has
been notified to withhold the transfer of title. The record shall
include, but not be limited to, the names of each claimant, a
description of the mobilehome against which a lien is charged, and
the amount of the lien.  
   (c) 
    (b)  Upon written request of any person or entity, or
the agent of either, having a legal or equitable interest in real
property  or a mobilehome which   that  is
subject to a lien for postponed taxes, the Controller shall within 10
working days following receipt of the request issue a written
statement showing the amount of the obligation secured by the lien as
of the date of  such   the  statement and
 such   any  other information as will
reasonably enable the person or entity, or the agent of either, to
determine the amount to be paid the Controller in order to obtain a
certificate of release or discharge of the lien for postponed taxes.

   (d) 
    (c)  The Controller shall adopt regulations necessary to
implement the provisions of this chapter and may establish a
reasonable fee, not to exceed ten dollars ($10), for the provision of
the statement of lien status provided for herein.
   SEC. 3.   SEC. 4.   Section 16182 of the
Government Code is amended to read:
   16182.  (a) All sums paid by the Controller under the provisions
of this chapter, together with interest thereon, shall be secured by
a lien in favor of the State of California when funds are transferred
to the county by the Controller upon the real property for which
property taxes have been postponed. In the case of a residential
dwelling which is part of a larger parcel taxed as a unit, such as a
duplex, farm, or multipurpose or multidwelling building, the lien
shall be against the entire tax parcel.
   (b) In the case of real property:
   (1) The lien shall be evidenced by a notice of lien for postponed
property taxes executed by the Controller, or the authorized delegate
of the Controller, and shall secure all sums paid or owing pursuant
to this chapter, including amounts paid subsequent to the initial
payment of postponed taxes on the real property described in the
notice of lien.
   (2) The notice of lien may bear the facsimile signature of the
Controller. Each signature shall be that of the person who shall be
in the office at the time of execution of the notice of lien;
provided, however, that such notice of lien shall be valid and
binding notwithstanding any such person having ceased to hold the
office of Controller before the date of recordation.
   (3) The form and contents of the notice of lien for postponed
property taxes shall be prescribed by the Controller and shall
include, but not be limited to, the following:
   (A) The names of all record owners of the real property for which
the Controller has advanced funds for the payment of real property
taxes.
   (B) A description of the real property for which real property
taxes have been paid.
   (C) The identification number of the notice of lien which has been
assigned the lien by the Controller.
   (4) The notice of lien shall be recorded in the office of the
county recorder for the county in which the real property subject to
the lien is located.
   (5) The recorded notice of lien shall be indexed in the Grantor
Index to the names of all record owners of the real property and in
the Grantee Index to the Controller of the State of California.
   (6) After the notice of lien has been duly recorded and indexed,
it shall be returned by the county recorder to the office of the
Controller. The recorder shall provide the county tax collector with
a copy of the notice of lien which has been recorded by the
Controller.
   (7) From the time of recordation of a notice of lien for postponed
property taxes, a lien shall attach to the real property described
therein and shall have the priority of a judgment lien for all
amounts secured thereby, except that the lien shall remain in effect
until it is released by the Controller in the manner prescribed by
Section 16186.
   SEC. 5.    Section 16184 of the   Government
Code   is amended to read: 
   16184.  The Controller shall reduce the amount of the obligation
secured by the lien against the real property  or mobilehome
 by the amount of any payments received for that purpose and
by notification of any amounts paid by the Franchise Tax Board
pursuant to Section 20564 or by any amounts authorized pursuant to
subdivision (f) of Section 20621 of the Revenue and Taxation Code.
The Controller shall also increase the amount of the obligation
secured by  such   the  lien by the amount
of any subsequent payments made pursuant to Section 16180 with
respect to the real property and to reflect the accumulation of
interest. All such increases and decreases shall be entered in the
record described in Section 16181.
  SEC. 4.   SEC. 6.   Section 16185 of the
Government Code is repealed.
   SEC. 5.   SEC. 7.   Section 16186 of the
Government Code is amended to read:
   16186.  If at any time the amount of the obligation secured by the
lien for postponed property taxes is paid in full or otherwise
discharged, the Controller, or the authorized delegate of the
Controller, shall in the case of real property:
   (a) Execute and cause to be recorded in the office of the county
recorder of the county wherein the real property described in the
lien is located, a release of the lien conclusively evidencing the
satisfaction of all amounts secured by the lien. The cost of
recording the release of the lien shall be added to and become part
of the obligation secured by the lien being released.
   (b) Direct the tax collector to remove from the secured roll, the
information required to be entered thereon by paragraph (1) of
subdivision (a) of Section 2514 of the Revenue and Taxation Code with
respect to the property described in the lien.
   (c) Direct the assessor to remove from the assessment records
applicable to the property described in the lien, the information
required to be entered on such records by Section 2515 of the Revenue
and Taxation Code.
   SEC. 6.   SEC. 8.   Section 16190 of the
Government Code is amended to read:
   16190.  All amounts owing pursuant to Article 1 (commencing with
Section 16180) of this chapter shall become due if any of the
following occurs:
   (a) The claimant, who is either the sole owner or sole possessory
interest holder of the residential dwelling, as defined in Section
20583 or Section 20640 of the Revenue and Taxation Code, or a coowner
or copossessory interest holder with a person other than a spouse or
other individual eligible to postpone property taxes pursuant to
Chapter 2 (commencing with Section 20581), Chapter 3.3 (commencing
with Section 20639), or Chapter 3.5 (commencing with Section 20640)
of Part 10.5 of Division 2 of such code, ceases to occupy the
premises as his residential dwelling, dies, or sells, conveys, or
disposes of the property, or allows any tax or special assessment on
the premises described in Section 20583 of such code to become
delinquent. If the sole owner or possessory interest holder claimant
dies and his or her surviving spouse inherits the premises and
continues to own and occupy it as his or her principal place of
residence, then the lien amount does not become due and payable
unless taxes or special assessments described in the preceding
sentence become delinquent, or such surviving spouse dies, or sells,
conveys or disposes of the interest in the property.
   (b) The claimant, who is a coowner or copossessory interest holder
of the residential dwelling, as defined in Section 20583 or Section
20640.2 of the Revenue and Taxation Code, with a spouse or another
individual eligible to postpone property taxes pursuant to Chapter 2
(commencing with Section 20581), Chapter 3.3 (commencing with Section
20639), or Chapter 3.5 (commencing with Section 20640) of Part 10.5
of Division 2 of such code, dies, and the surviving spouse or other
surviving eligible individual allows any tax or special assessment on
the premises described in Section 20583 of such code to become
delinquent or such surviving spouse or other individual ceases to
occupy the premises as a residential dwelling, dies, or conveys, or
disposes of the interest in the property.
   (c) The failure of the claimant to perform those acts the claimant
is required to perform where such performance is secured, or will be
secured in the event of nonperformance, by a lien which is senior to
that of the lien provided by Section 16182.
   (d) Postponement was erroneously allowed because eligibility
requirements were not met.
   (e) The claimant is refinancing the residential dwelling.
   (f) The claimant has elected to participate in a reverse mortgage
program for the residential dwelling.
   SEC. 7.   SEC. 9.  Section 16200 of the
Government Code is amended to read:
   16200.  In the event that the Controller receives the notice
described in Section 16187 of this code or Section 3375 of the
Revenue and Taxation Code, the Controller may take any of the
following actions which will best serve the interests of the state:
   (a) Notify by United States mail the tax collector or other party
that such notice has been received and that the Controller must be
given at least 20 days prior notice of the date that the property
will be sold at auction. If the Controller elects to proceed under
this subdivision, the Controller may use funds appropriated by
Section 16100 to bid on the property at the auction up to the amount
secured by the state's lien on the property and any lien on such
property having priority over the state's lien. All additional
amounts paid pursuant to this subdivision shall be added to the
amount secured by the lien on such property provided for in Article 1
(commencing with Section 16180) of this chapter.
   (b) Acknowledge by United States mail that the notice required by
Section 16187 of this code or Section 3375 of the Revenue and
Taxation Code has been received.
  SEC. 8.   SEC. 10.   Section 16210 of the
Government Code is amended to read:
   16210.  In the event that the amount secured by the state's lien
provided for in Article 1 (commencing with Section 16180) is paid by
reason of the sale or condemnation of the property on which the lien
attaches, the funds so received shall be placed in the Senior
Citizens and Disabled Citizens Property Tax Postponement Fund.
   SEC. 9.   SEC. 11.   Section 16211 of
the Government Code is amended to read:
   16211.  The claimant under Chapter 2 (commencing with Section
20581), Chapter 3 (commencing with Section 20625), or Chapter 3.5
(commencing with Section 20640) of Part 10.5 of Division 2 of the
Revenue and Taxation Code whose residential dwelling was sold or
condemned  may   shall not  draw upon the
amount in the  account to purchase a new residential
dwelling, and the amount so drawn shall be secured by a new lien
against the new residential dwelling from the time the Controller
records the new lien against the new residential dwelling as provided
for under Section 16182.   Senior Citizens and Disabled
Citizens Property Tax Postponement Fund.  
   In the case of real property, the Controller shall subordinate the
new lien to the lien of the note and deed of trust of the purchase
money obligations used in the acquisition of the new residential
dwelling, provided the claimant has an equity of at least 40 percent
of the full value of the property, as required by paragraph (1) of
subdivision (b) of Section 20583 of the Revenue and Taxation Code,
prior to recordation of that subordination. The lien shall have
priority over all subsequent liens, except as provided in Section
2192.1 of the Revenue and Taxation Code. 
   SEC. 10.   SEC. 12.   Section 16211.5 of
the Government Code is amended to read:
   16211.5.  (a) In the event that the real property securing the
state's lien provided for in Article 1 (commencing with Section
16180) is the residential dwelling of a claimant under Chapter 2
(commencing with Section 20581) of Part 10.5 of Division 2 of the
Revenue and Taxation Code and is voluntarily sold, the funds derived
from the voluntary sale of the residential dwelling shall be placed
in the Senior Citizens and Disabled Citizens Property Tax
Postponement Fund. At that time, the Controller shall release the
state's lien in the manner prescribed by Section 16186.
   (b) The claimant under Chapter 2 (commencing with Section 20581)
of Part 10.5 of Division 2 of the Revenue and Taxation Code whose
residential dwelling was voluntarily sold shall not draw upon the
amount in the Senior Citizens and Disabled Citizens Property Tax
Postponement Fund.
   SEC. 11.   SEC. 13.   Section 16212 of
the Government Code is repealed. 
  SEC. 12.    Section 16213 of the Government Code
is amended to read:
   16213.  At the end of the six-month period specified in Section
16210 or the six-month period specified in Section 16211.5, all funds
remaining in an impound account shall be transferred to the Senior
Citizens and Disabled Citizens Property Tax Postponement Fund,
established pursuant to Section 16180. 
   SEC. 14.    Section 16213 of the  
Government Code   is repealed.  
   16213.  At the end of the six-month period specified in Section
16210 or the six-month period specified in Section 16211.5, all funds
remaining in an impound account shall be transferred to the General
Fund. 
   SEC. 13.   SEC. 15.   Section 16214 of
the Government Code is repealed.
   SEC. 14.   SEC. 16.   Section 2514 of
the Revenue and Taxation Code is amended to read:
   2514.  (a) With respect to a claimant whose property taxes are
paid by a lender from an impound, trust, or other type of account
described in Section 2954 of the Civil Code, the tax collector shall
notify the auditor of the claimant's name and address, and the
duplicate amount of money the Controller transferred to the tax
collector via an electronic fund transfer.
   The county auditor, treasurer, or disbursing officer shall send a
check in the amount of money based on the electronic transfer by the
Controller, to the Controller within 60 days of the replicated
payment.
   (b) The procedures established by this chapter shall not be
construed to require a lender to alter the manner in which a lender
makes payment of the property taxes of such a claimant.
   SEC. 15.   SEC. 17.   Section 3375 of
the Revenue and Taxation Code is amended to read:
   3375.  The county tax collector shall notify the Controller within
60 days, in the manner as the Controller shall direct, of all
property subject to a "Notice of Lien for Postponed Property Taxes"
recorded pursuant to Section 16182 of the Government Code that
becomes tax defaulted subsequent to the date of entry on the secured
roll of the information required by subdivision (a) of Section 2514.
   SEC. 16.   SEC. 18.   Section 3376 is
added to the Revenue and Taxation Code, to read:
   3376.  (a) Upon request of the tax collector, the Controller shall
provide to the tax collector information that is required for the
preparation and enforcement of the sale of property under Part 6
(commencing with Section 3351) of Division 1. This information may
include social security numbers.
   (b) The tax collector or his or her designee shall certify, under
penalty of perjury, to the Controller, that the information requested
pursuant to subdivision (a) is required for the purposes specified
in subdivision (a).
   (c) Any information provided to the tax collector pursuant to this
subdivision is not a public record and is not open to public
inspection.
   SEC. 17.   SEC. 19.   Section 20503 of
the Revenue and Taxation Code is amended to read:
   20503.  (a) "Income" means adjusted gross income as defined in
Section 17072 plus all of the following cash items:
   (1) Public assistance and relief.
   (2) Nontaxable amount of pensions and annuities.
   (3) Social security benefits (except Medicare).
   (4) Railroad retirement benefits.
   (5) Unemployment insurance payments.
   (6) Veterans' benefits.
   (7) Exempt interest received from any source.
   (8) Gifts and inheritances in excess of three hundred dollars
($300), other than transfers between members of the household. Gifts
and inheritances include noncash items.
   (9) Amounts contributed on behalf of the contributor to a
tax-sheltered retirement plan or deferred compensation plan.
   (10) Temporary workers' compensation payments.
   (11) Sick leave payments.
   (12) Nontaxable military compensation as defined in Section 112 of
the Internal Revenue Code.
   (13) Nontaxable scholarship and fellowship grants as defined in
Section 117 of the Internal Revenue Code.
   (14) Nontaxable gain from the sale of a residence as defined in
Section 121 of the Internal Revenue Code.
   (15) Life insurance proceeds to the extent that the proceeds
exceed the expenses incurred for the last illness and funeral of the
deceased spouse of the claimant. "Expenses incurred for the last
illness" includes unreimbursed expenses paid or incurred during the
income calendar year and any expenses paid or incurred thereafter up
until the date the claim is filed. For purposes of this paragraph,
funeral expenses shall not exceed five thousand dollars ($5,000).
   (16) If an alternative minimum tax is required to be paid pursuant
to Chapter 2.1 (commencing with Section 17062) of Part 10, the
amount of alternative minimum taxable income (whether or not cash) in
excess of the regular taxable income.
   (17) Annual winnings from the California Lottery in excess of six
hundred dollars ($600) for the current year.
   (b) For purposes of this chapter, total income shall be determined
for the calendar year (or approved fiscal year ending within that
calendar year) which ends within the fiscal year for which assistance
is claimed.
   (c) For purposes of this chapter, all losses and nonexpenses shall
be converted to zero for the purpose of determining whether the
homeowner meets the Property Tax Postponement requirement.
   (d) For purposes of Chapter 2 (commencing with Section 20581),
Chapter 3 (commencing with Section 20625), and Chapter 3.5
(commencing with Section 20640), total income shall be determined for
the calendar year ending immediately prior to the commencement of
the fiscal year for which postponement is claimed.
   SEC. 18.   SEC. 20.   Section 20583 of
the Revenue and Taxation Code is amended to read:
   20583.  (a) "Residential dwelling" means a dwelling occupied as
the principal place of residence of the claimant, and so much of the
land surrounding it as is reasonably necessary for use of the
dwelling as a home, owned by the claimant, the claimant and spouse,
or by the claimant and either another individual eligible for
postponement under this chapter or an individual described in
subdivision (a), (b), or (c) of Section 20511 and located in this
state. It shall include condominiums that are assessed as realty for
local property tax purposes. It also includes part of a multidwelling
or multipurpose building and a part of the land upon which it is
built.
   (b) As used in this chapter in reference to ownership interests in
residential dwellings, "owned" includes (1) the interest of a vendee
in possession under a land sale contract provided that the contract
or memorandum thereof is recorded and only from the date of
recordation of the contract or memorandum thereof in the office of
the county recorder where the residential dwelling is located, (2)
the interest of the holder of a life estate provided that the
instrument creating the life estate is recorded and only from the
date of recordation of the instrument creating the life estate in the
office of the county recorder where the residential dwelling is
located, but "owned" does not include the interest of the holder of
any remainder interest or the holder of a reversionary interest in
the residential dwelling, (3) the interest of a joint tenant or a
tenant in common in the residential dwelling or the interest of a
tenant where title is held in tenancy by the entirety or a community
property interest where title is held as community property, and (4)
the interest in the residential dwelling in which the title is held
in trust, as described in subdivision (d) of Section 62, provided
that the Controller determines that the state's interest is
adequately protected.
   (c) Except as provided in subdivision (c), and Chapter 3
(commencing with Section 20625), ownership must be evidenced by an
instrument duly recorded in the office of the county where the
residential dwelling is located.
   (d) "Residential dwelling" does not include any of the following:
   (1) Any residential dwelling in which the owners do not have an
equity of at least 40 percent of the full value of the property as
determined for purposes of property taxation or at least 40 percent
of the fair market value as determined by the Controller and where
the Controller determines that the state's interest is adequately
protected. The 40-percent equity requirement shall be met at the time
the claimant or authorized agent files an initial postponement claim
and tenders to the tax collector the initial certificate of
eligibility described in Sections 20602, 20639.6, and 20640.6.
   (2) Any residential dwelling in which the claimant's interest is
held pursuant to a contract of sale or under a life estate, unless
the claimant obtains the written consent of the vendor under the
contract of sale, or the holder of the reversionary interest upon
termination of the life estate, for the postponement of taxes and the
creation of a lien on the real property in favor of the state for
amounts postponed pursuant to this act.
   (3) Any residential dwelling on which the claimant does not
receive a secured tax bill.
   (4) Any residential dwelling in which the claimant's interest is
held as a possessory interest, except as provided in Chapter 3.5
(commencing with Section 20640).
   SEC. 19.   SEC. 21.   Section 20583.1 of
the Revenue and Taxation Code is repealed.
   SEC. 20.   SEC. 22.   Section 20584 of
the Revenue and Taxation Code is amended to read:
   20584.  (a) "Property taxes" means all ad valorem property taxes,
special assessments, and other charges or user fees which are
attributable to the residential dwelling on the county tax bill and
the ad valorem property taxes, special assessments, or other charges
or user fees appearing on the tax bill of any chartered city which
levies and collects its own property taxes.
   (b) Whenever a residential dwelling is an integral part of a
larger tax unit, such as a duplex, farm or a multipurpose building,
"property taxes" shall be the percentage of the total property taxes
as the value of the residential dwelling is of the value of the total
tax unit.
   (c) "Property taxes" means property taxes for current fiscal years
for which the claim is made and excludes delinquent taxes for prior
fiscal years.
   SEC. 21.   SEC. 23.   Section 20602 of
the Revenue and Taxation Code is amended to read:
   20602.  Upon approval of a claim described in Section 20601, the
Controller shall make payments directly to a county tax collector for
the property taxes owed on behalf of a qualified claimant. Payments
may, upon appropriation by the Legislature, be made out of the
amounts otherwise appropriated pursuant to Section 16100 of the
Government Code that are secured by a secured tax lien and obligation
as specified by Article 1 (commencing with Section 16180) of Chapter
5 of Division 4 of the Government Code.
   SEC. 22.   SEC. 24.   Section 20621 of
the Revenue and Taxation Code is amended to read:
   20621.  Each claimant applying for postponement under Article 2
(commencing with Section 20601) shall file a claim under penalty of
perjury with the Controller on a form supplied by the Controller. The
claim shall contain all of the following:
   (a) Evidence acceptable to the Controller that the person was a
"senior citizen claimant" or a "blind or disabled claimant."
   (b) A statement showing the household income for the period set
forth in Section 20503.
   (c) A statement describing the residential dwelling in a manner
that the Controller may prescribe.
   (d) The name of the county in which the residential dwelling is
located and the address of the residential dwelling.
   (e) The county assessor's parcel number applicable to the property
for which the claimant is applying for the postponement of property
taxes.
   (f) (1) Documentation evidencing the current existence of any
abstract of judgment, federal tax lien, or state tax lien filed or
recorded against the applicant, and any recorded mortgage or deed of
trust that affects the subject residential dwelling, for the purpose
of determining that the claimant
            possesses a 40-percent equity in the subject residential
dwelling as required by paragraph (1) of subdivision (b) of Section
20583.
   (2) Actual costs, not in excess of fifty dollars ($50), paid by
the claimant to obtain the documentation shall reduce the amount of
the lien for the year, but not the face amount of the payment
prescribed in Section 16180 of the Government Code.
   (g) Other information required by the Controller to establish
eligibility.
   SEC. 23.   SEC. 25.   Section 20622 of
the Revenue and Taxation Code is amended to read:
   20622.  The claim for postponement shall be filed after September
1 of the calendar year in which the fiscal year for which
postponement is claimed begins, and on or before April 10 of that
fiscal year; if April 10th falls on Saturday, Sunday, or a legal
holiday, the date is extended to the next business day.
   SEC. 24.   SEC. 26.   Section 20623 of
the Revenue and Taxation Code is amended to read:
   20623.  (a) No person shall file a claim for postponement under
this chapter on or after the effective date of the act adding this
section, and the Controller shall not accept applications for
postponement under this chapter on or after that date.
   (b) This section shall become inoperative on July 1, 2015, and as
of January 1, 2016, is repealed, unless a later enacted statute that
is enacted before January 1, 2016, deletes or extends the dates on
which it becomes inoperative and is repealed.
   SEC. 25.   SEC. 27.   Chapter 3.3
(commencing with Section 20639) of Part 10.5 of Division 2 of the
Revenue and Taxation Code is repealed.
   SEC. 26.   SEC. 28.   Section 20645.5 of
the Revenue and Taxation Code is amended to read:
   20645.5.  (a) If a postponement claim under Chapter 2 (commencing
with Section 20581), Chapter 3.3 (commencing with Section 20639), or
Chapter 3.5 (commencing with Section 20640) is filed timely before
the delinquency date of the second installment of property taxes on
the secured roll, then any delinquent penalties, costs, fees, and
interest accrued for that fiscal year shall be canceled unless the
failure to perfect the claim was due to willful neglect on the part
of the claimant or representative.
   (b) In the event of willful neglect, an electronic funds transfer
for that current fiscal year can be used to pay delinquent taxes only
if accompanied by sufficient amounts to pay all of the delinquent
penalties, costs, fees, and interest. If an amount sufficient to pay
all of the delinquent penalties, costs, fees, and interest is not
received by the tax collector within 30 days from the date of the
electronic funds transfer, the tax collector may return the
electronic funds transfer to the Controller to deny the postponement
claim.
   (c) (1) The Controller shall notify the claimant in writing when
the electronic funds transfer has been submitted to the tax
collector.
   (2) In the event of willful neglect, in addition to the
information required pursuant to paragraph (1), the Controller shall
also notify the claimant in writing and provide a copy of the
notification to the tax collector, that a payment amount sufficient
to pay all of the delinquent penalties, costs, fees, and interest
must be received by the tax collector within 30 days from the date of
the electronic funds transfer, and that if this payment is not
received by the tax collector, the tax collector may return the
electronic funds transfer to the Controller to deny the postponement
claim.
   SEC. 27.   SEC. 29.   Section 20645.6 of
the Revenue and Taxation Code is amended to read:
   20645.6.  (a) If the Controller denies a postponement claim under
Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with
Section 20625), Chapter 3.3 (commencing with Section 20639), or
Chapter 3.5 (commencing with Section 20640), and the denial is
reversed after appeal pursuant to Section 20645.1, the Controller
shall electronically transfer funds to the county, if the taxes for
the fiscal year have been paid, for the amount of the taxes. If the
taxes for the fiscal year are delinquent, any resulting penalties or
interest shall be canceled.
   (b) The Controller shall notify the claimant in writing when an
electronic funds transfer has been made pursuant to subdivision (a).
   SEC. 28.   SEC. 30.   The Legislature
finds and declares that Section 16 of this act, which adds Section
3376 to the Revenue and Taxation Code, imposes a limitation on the
public's right of access to the meetings of public bodies or the
writings of public officials and agencies within the meaning of
Section 3 of Article I of the California Constitution. Pursuant to
that constitutional provision, the Legislature makes the following
findings to demonstrate the interest protected by this limitation and
the need for protecting that interest:
   In order to protect those persons subject to enforcement of Part 6
(commencing with Section 3351) of Division 1 of the Revenue and
Taxation Code against the risk of identity theft, it is in the state'
s interest to limit public access to information.
   SEC. 29.   SEC. 31.   No reimbursement
is required by this act pursuant to Section 6 of Article XIII B of
the California Constitution for certain costs that may be incurred by
a local agency or school district because, in that regard, this act
creates a new crime or infraction, eliminates a crime or infraction,
or changes the penalty for a crime or infraction, within the meaning
of Section 17556 of the Government Code, or changes the definition of
a crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
   However, if the Commission on State Mandates determines that this
act contains other 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.