Bill Text: CA AB870 | 2021-2022 | Regular Session | Introduced


Bill Title: Hazardous materials: liens.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced) 2021-02-25 - Referred to Coms. on E.S. & T.M. and JUD. [AB870 Detail]

Download: California-2021-AB870-Introduced.html


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 870


Introduced by Assembly Member Santiago
(Principal coauthor: Senator Gonzalez)
(Coauthor: Assembly Member Cristina Garcia)
(Coauthor: Senator Durazo)

February 17, 2021


An act to add Section 25365.8 to the Health and Safety Code, relating to hazardous materials.


LEGISLATIVE COUNSEL'S DIGEST


AB 870, as introduced, Santiago. Hazardous materials: liens.
Existing law establishes that any costs or damage incurred by the Department of Toxic Substances Control and regional water quality control boards in carrying out or overseeing a response or corrective action for a release of hazardous materials on a real property constitute a claim and lien upon the real property owned by a responsible party that is subject to, or affected by, that action. Existing law establishes that the lien has the force and effect of, and a priority of, a judgment lien.
This bill would require the department, upon a determination of the scope of a necessary response or corrective action, to provide to the responsible parties an estimate of the costs to complete the response or corrective action. The bill would establish that the estimated costs constitute a claim and a lien upon the real property owned by a responsible party that is subject to, or affected by, the response or corrective action. The bill would establish that the lien takes priority over all other liens and encumbrances that are or have been recorded on the real property upon its recordation. The bill would establish that the lien does not apply if the responsible parties establish and demonstrate to the department sufficient financial assurance to cover the estimated costs.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 25365.8 is added to the Health and Safety Code, to read:

25365.8.
 (a) Upon a determination by the department of the scope of a necessary response or corrective action under a corrective action or a response action pursuant to this chapter or Chapter 6.5 (commencing with Section 25100), the department shall provide to the responsible parties an estimate of the costs to complete the response or corrective action, including the potential cost to the department in overseeing the response or corrective action and the cost of any required operation and maintenance.
(b) (1) Except as provided in subdivision (c) and notwithstanding Section 25365.6, the estimated costs determined pursuant to subdivision (a) constitute a claim and lien upon the real property owned by a responsible party that is subject to, or affected by, the response or corrective action. This lien shall attach regardless of whether the responsible party is insolvent. A lien established by this section shall be subject to the notice and hearing procedures required by due process of the law and shall arise at the time the department provides the cost estimate to the responsible party.
(2) The department shall not be considered a responsible party for a hazardous waste or hazardous substance release site because a claim and lien is imposed pursuant to this subdivision.
(3) The lien provided by this subdivision shall continue until the department certifies that the response or corrective action, including operation and maintenance, has been completed.
(4) The lien imposed by this subdivision shall take priority over all other liens and encumbrances that are or have been recorded on the real property upon its recordation in the county in which the property subject to the lien is located. The lien shall contain the legal description of the real property, the assessor’s parcel number, and the name of the owner of record, as shown on the latest equalized assessment roll. The lien shall also contain a legal description of the property that is the site of the hazardous waste or hazardous substance release, the assessor’s parcel number for that property, and the name of the owner of record, as shown on the latest equalized assessment roll, of that property.
(c) (1) Subdivision (b) does not apply if the responsible party establishes and demonstrates to the department, in accordance with Sections 66264.143 and 66264.146 of Title 22 of the California Code of Regulations, sufficient financial assurance to cover the estimated costs determined pursuant to subdivision (a).
(2) If more than one responsible party is subject to the response or corrective action, paragraph (1) is satisfied if the financial assurances provided by all responsible parties, in aggregate, are sufficient to cover the estimated costs determined pursuant to subdivision (a).

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