Existing law requires a county tax collector to publish various notices in a newspaper, including a notice specifying, among other things, the dates when property taxes on the secured roll will be due and the penalties and costs for delinquency.

This bill would require the tax collector to also provide notice on the tax collectors regularly maintained Internet Web site of any notice required to be published in a newspaper of general circulation under the Revenue and Taxation Code, as provided.

By imposing new duties upon local government officials, this bill would impose a state-mandated local program.

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 the statutory provisions noted above.

Existing law requires a county tax collector to publish various notices in a newspaper, including a notice specifying, among other things, the dates when property taxes on the secured roll will be due and the penalties and costs for delinquency.

This bill would require the tax collector to also provide notice on the tax collectors regularly maintained Internet Web site of any notice required to be published in a newspaper of general circulation under the Revenue and Taxation Code, as provided.

By imposing new duties upon local government officials, this bill would impose a state-mandated local program.

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 the statutory provisions noted above.

Existing law requires a county tax collector to publish various notices in a newspaper, including a notice specifying, among other things, the dates when property taxes on the secured roll will be due and the penalties and costs for delinquency.

This bill would require the tax collector to also post provide notice on the tax collectors regularly maintained Internet Web site of any notice required to be published in a newspaper of general circulation under the Revenue and Taxation Code, as provided.

By imposing new duties upon local government officials, this bill would impose a state-mandated local program.

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 the statutory provisions noted above.

Existing property tax law requires assessees to report change in ownership information to the assessor, as provided.

This bill would make a nonsubstantive change to that provision.

SENATE THIRD READING

STR Bill Id:SB 653

Author:(Moorlach)

As Amended Ver:April 19, 2017

Majority vote

SENATE VOTE: 39-0

SUMMARY: Requires tax collectors to publish on their Internet Web sites (website) any notice that tax collectors must publish in a newspaper. Specifically, this bill:

1. Requires the tax collector to publish on the tax collector's website any notice that a tax collector must publish in a newspaper, and to keep such notice available for at least the same amount of time as the notice is required to be in the newspaper.
2. Requires the notice to be provided by either posting a copy of the newspaper containing the notice in a format that is downloaded in PDF format, or by providing a link to the website of the newspaper containing the notice.
3. Defines "newspaper" for the purposes of this bill to mean a newspaper of general circulation.
4. Provides that, if the Commission on State Mandates determines that this bill contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to current law governing state mandated local costs.

FISCAL EFFECT: According to the Assembly Appropriations Committee, there are unknown reimbursable mandate costs to counties, potentially in excess of $150,000 (General Fund) annually, to post the required information on their websites. Actual costs will depend on the extent to which county tax collectors file claims with the Commission, and whether the Commission approves those claims as reimbursable.

The State's larger counties generally have in-house information technology (IT) departments, and consequently would likely be able to publish notices on their internet sites with comparatively little new expense beyond one-time programming and set-up costs. However, smaller counties (that lack full-time IT staff), anecdotally report that their external IT departments can require advanced notice of one to two weeks for even minor posting changes, and their billing includes things such as overhead and management expenses in addition to the staff time to update the internet site.

COMMENTS:

1. Bill Summary. This bill requires tax collectors to publish on their websites any notice that tax collectors must publish in a newspaper. The notice must remain on the website for at least the same amount of time as the notice is required to be in the newspaper, and must be provided by either posting a copy of the newspaper containing the notice in a format that is downloaded in PDF format, or by providing a link to the website of the newspaper containing the notice. This bill is sponsored by the author.
2. Author's Statement. According to the author, "Currently, under a law enacted in 1939, Treasurer-Tax Collectors must post all required notices in newspapers or, if there is no local newspaper, three public places in each township within the county. Senate Bill 653 would require Treasurer-Tax Collectors to also post the notice on their websites either by posting a link to the newspaper's online notice or posting a PDF of the newspaper notice.

"By posting the notices online, they will be more accessible and will reach more people, especially as circulation numbers of newspapers continue to decline. Senate Bill 653 would also give counties the ability to keep notices available online long after they would be published in the newspaper. With the advent and increasing use of the internet, modernizing a nearly eighty-year-old law helps notify more people so they may resolve issues with the county."

1. Background. California law assigns to county tax collectors the duty to collect all taxes, including real and personal property taxes, school and special district taxes, and business licenses. As part of these duties, tax collectors administer the billing and collections process for property taxes, determining delinquency and default, and administering the sale of tax-defaulted property, among other obligations. Existing law requires the tax collector to post notices of specific events in a newspaper of general circulation or, if there isn't one, by posting the notice in up to three public places. Among others, tax collectors must publish notices containing information specified by law in the following circumstances:
   1. Specific information regarding due dates for payments on the secured roll, times when taxes become delinquent, penalties and costs for delinquency, that all taxes may be paid when the first installment is due, and the times and places at which payment can be made;
   2. Sale of improvements, personal property, and possessory interests of delinquent taxpayers;
   3. A notice of power and intent to sell all property that will be tax defaulted;
   4. Affidavit of real property in default;
   5. Notice of tax sale;
   6. Joint agreements for nonprofits to buy tax defaulted property; and,
   7. When excess proceeds from a tax sale exceed $150.

Generally, notices must be published once per week for three successive weeks. This requirement is satisfied when the notice appears three times in a newspaper published once per week, with at least five days between the first and last publication date. Tax collectors must publish required notices, with the sole exception for cases in which the excess proceeds of a tax sale are less than the cost to publish.

1. Arguments in Support. Orange County Treasurer-Tax Collector Shari L. Freidenrich, in support, writes, "Printed newspapers used to be the primary source of information for the public. However, that is changing as the public now gets a lot of their information from the internet and from different sources other than newspapers. This includes information about events in the world, but also weather, game sites and classified ads. Therefore, being able to provide these important property tax notices directly on County websites and not just in the printed newspaper or the newspaper website, is adding transparency of this important information to the public, especially those who no longer subscribe to printed or digital newspapers, at a very minimal cost."
2. Arguments in Opposition. According to the California Association of County Treasurers and Tax Collectors, (CACTTC) "CACCTTC has sought for years to reduce the amount of newspaper publications that tax collectors are required to pay for, as it is evident that publishing in a newspaper produces no benefit to the affected taxpayers. CACTTC believes that online notification is a far more effective way to reach taxpayers, since print newspapers have limited reach. There is absolutely no empirical evidence to suggest that newspaper publication drives delinquent taxpayers to cure their debt. If it was effective, tax collectors would not want to change the law, since their publication costs would be recovered when the delinquent taxpayer comes in to cure their debt. (This measure) does not relieve tax collectors of this wasteful mandate; it does, however, create a new mandate that not all county tax collectors can comply with easily. The bill presumes that while simultaneously paying newspapers for print notification (a cost that seems to escalate each and every year, as circulations shrink and readership dwindles), that tax collectors can also afford additional internet technology personnel for their offices. Our purpose in seeking legislation to reduce the amount of newspaper publication tax collectors to pay for is to reduce their costs, not increase them by now having to pay for two mandates."
3. State Mandate. This bill is keyed a state mandate, which means the state could be required to reimburse local agencies and school districts for implementing the bill's provisions if the Commission on State Mandates determines that the bill contains costs mandated by the state.

Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958 FN: 0001721

Date of Hearing: July 19, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

SBPCA Bill Id:SB 653

Author:(Moorlach) – As Amended Ver:April 19, 2017

Urgency: No State Mandated Local Program: Yes Reimbursable: Yes

SUMMARY:

This bill requires tax collectors to publish on their Internet Web sites any notice that tax collectors must publish in a newspaper. Specifically, this bill:

1. Requires the tax collector to publish on the tax collector's Internet Web site (website) any notice that a tax collector must publish in a newspaper, and to keep such notice available for at least the same amount of time as the notice is required to be in the newspaper.
2. Requires the notice to be provided by either posting a copy of the newspaper containing the notice in a format that is downloaded in PDF format, or by providing a link to the website of the newspaper containing the notice.
3. Defines "newspaper" for the purposes of this bill to mean a newspaper of general circulation.

FISCAL EFFECT:

Unknown reimbursable mandate costs to counties, potentially in excess of $150,000 (GF) annually, to post the required information on their internet Websites. Actual costs will depend on the extent to which county tax collectors file claims with the Commission, and 2) whether the Commission approves those claims as reimbursable.

The State’s larger counties generally have in-house information technology (IT) departments, and consequently would likely be able to publish notices on their internet sites with comparatively little new expense beyond one-time programming and set-up costs.

However, smaller counties (that lack full-time IT staff), anecdotally report that their external IT departments can require advanced notice of one to two weeks for even minor posting changes, and their billing includes things such as overhead and management expenses in addition to the staff time to update the internet site.

COMMENTS:

1. Purpose. According to the author, "By posting the notices online, they will be more accessible and will reach more people, especially as circulation numbers of newspapers continue to decline. Senate Bill 653 would also give counties the ability to keep notices available online long after they would be published in the newspaper. With the advent and increasing use of the internet, modernizing a nearly eighty-year-old law helps notify more people so they may resolve issues with the county."
2. Background. Existing law requires county tax collectors to collect, among other taxes, real and personal property taxes. In this role, they administer the billing and collections process for property taxes, determining delinquency and default, and administering the sale of tax-defaulted property, among other obligations. Existing law requires tax collectors to post notices of specific events in a newspaper of general circulation or, if there isn’t one, by posting the notice in up to three public places. Specifically, tax collectors must publish notices containing information specified by law in the following circumstances:
3. Specific information regarding due dates for payments on the secured roll, times when taxes become delinquent, penalties and costs for delinquency, that all taxes may be paid when the first installment is due, and the times and places at which payment can be made;
4. Sale of improvements, personal property, and possessory interests of delinquent taxpayers;
5. A notice of power and intent to sell all property that will be tax defaulted;
6. Affidavit of real property in default;
7. Notice of tax sale;
8. Joint agreements for nonprofits to buy tax defaulted property; and,
9. When excess proceeds from a tax sale exceed $150.

Generally, notices must be published once per week for three successive weeks. This requirement is satisfied when the notice appears three times in a newspaper published once per week, with at least five days between the first and last publication date. Tax collectors must publish required notices, with the sole exception for cases in which the excess proceeds of a tax sale are less than the cost to publish.

1. Arguments in Support. Orange County Treasurer-Tax Collector Shari L. Freidenrich, argues that being able to provide these important property tax notices directly on County websites and not just in the printed newspaper or the newspaper website, is adding transparency of this important information to the public, especially those who no longer subscribe to printed or digital newspapers, at a very minimal cost.
2. Arguments in Opposition. According to the California Association of County Treasurers and Tax Collectors, (CACTTC) "CACCTTC has sought for years to reduce the amount of newspaper publications that tax collectors are required to pay for, as it is evident that publishing in a newspaper produces no benefit to the affected taxpayers. However, this measure does not relieve tax collectors of this wasteful mandate; it does, however, create a new mandate that not all county tax collectors can comply with easily. The bill presumes that while simultaneously paying newspapers for print notification (a cost that seems to escalate each and every year, as circulations shrink and readership dwindles), that tax collectors can also afford additional internet technology personnel for their offices. Our

purpose in seeking legislation to reduce the amount of newspaper publication tax collectors to pay for is to reduce their costs, not increase them by now having to pay for two mandates."

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: June 28, 2017

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Cecilia Aguiar-Curry, Chair

SBPCA Bill Id:SB 653

Author:(Moorlach) – As Amended Ver:April 19, 2017

SENATE VOTE: 39-0

SUBJECT: County tax collectors: notices: publication.

SUMMARY: Requires tax collectors to publish on their Internet Web sites any notice that tax collectors must publish in a newspaper. Specifically, this bill:

1. Requires the tax collector to publish on the tax collector's Internet Web site (website) any notice that a tax collector must publish in a newspaper, and to keep such notice available for at least the same amount of time as the notice is required to be in the newspaper.
2. Requires the notice to be provided by either posting a copy of the newspaper containing the notice in a format that is downloaded in PDF format, or by providing a link to the website of the newspaper containing the notice.
3. Defines "newspaper" for the purposes of this bill to mean a newspaper of general circulation.
4. Provides that, if the Commission on State Mandates determines that this bill contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to current law governing state mandated local costs.

FISCAL EFFECT: According to the Senate Appropriations Committee, "This bill could result in a reimbursable mandate, the magnitude of which is unknown but potentially in excess of $50,000 in a given fiscal year (General Fund)."

COMMENTS:

1. Bill Summary. This bill requires tax collectors to publish on their websites any notice that tax collectors must publish in a newspaper. The notice must remain on the website for at least the same amount of time as the notice is required to be in the newspaper, and must be provided by either posting a copy of the newspaper containing the notice in a format that is downloaded in PDF format, or by providing a link to the website of the newspaper containing the notice. This bill is sponsored by the author.
2. Author's Statement. According to the author, "Currently, under a law enacted in 1939, Treasurer-Tax Collectors must post all required notices in newspapers or, if there is no local newspaper, three public places in each township within the county. Senate Bill 653 would require Treasurer-Tax Collectors to also post the notice on their websites either by posting a link to the newspaper’s online notice or posting a PDF of the newspaper notice.

"By posting the notices online, they will be more accessible and will reach more people, especially as circulation numbers of newspapers continue to decline. Senate Bill 653 would also give counties the ability to keep notices available online long after they would be published in the newspaper. With the advent and increasing use of the internet, modernizing a nearly eighty-year-old law helps notify more people so they may resolve issues with the county."

1. Background. California law assigns to county tax collectors the duty to collect all taxes, including real and personal property taxes, school and special district taxes, and business licenses. As part of these duties, tax collectors administer the billing and collections process for property taxes, determining delinquency and default, and administering the sale of tax-defaulted property, among other obligations. Existing law requires the tax collector to post notices of specific events in a newspaper of general circulation or, if there isn’t one, by posting the notice in up to three public places. Among others, tax collectors must publish notices containing information specified by law in the following circumstances:
   1. Specific information regarding due dates for payments on the secured roll, times when taxes become delinquent, penalties and costs for delinquency, that all taxes may be paid when the first installment is due, and the times and places at which payment can be made;
   2. Sale of improvements, personal property, and possessory interests of delinquent taxpayers;
   3. A notice of power and intent to sell all property that will be tax defaulted;
   4. Affidavit of real property in default;
   5. Notice of tax sale;
   6. Joint agreements for nonprofits to buy tax defaulted property; and,
   7. When excess proceeds from a tax sale exceed $150.

Generally, notices must be published once per week for three successive weeks. This requirement is satisfied when the notice appears three times in a newspaper published once per week, with at least five days between the first and last publication date. Tax collectors must publish required notices, with the sole exception for cases in which the excess proceeds of a tax sale are less than the cost to publish.

1. Arguments in Support. Orange County Treasurer-Tax Collector Shari L. Freidenrich, in support, writes, "Printed newspapers used to be the primary source of information for the public. However, that is changing as the public now gets a lot of their information from the internet and from different sources other than newspapers. This includes information about events in the world, but also weather, game sites and classified ads. Therefore, being able to provide these important property tax notices directly on County websites and not just in the printed newspaper or the newspaper website, is adding transparency of this important information to the public, especially those who no longer subscribe to printed or digital newspapers, at a very minimal cost."
2. Arguments in Opposition. According to the California Association of County Treasurers and Tax Collectors, (CACTTC) "CACCTTC has sought for years to reduce the amount of newspaper publications that tax collectors are required to pay for, as it is evident that publishing in a newspaper produces no benefit to the affected taxpayers. CACTTC believes that online notification is a far more effective way to reach taxpayers, since print newspapers have limited reach. There is absolutely no empirical evidence to suggest that newspaper publication drives delinquent taxpayers to cure their debt. If it was effective, tax collectors would not want to change the law, since their publication costs would be recovered when the delinquent taxpayer comes in to cure their debt. (This measure) does not relieve tax collectors of this wasteful mandate; it does, however, create a new mandate that not all county tax collectors can comply with easily. The bill presumes that while simultaneously paying newspapers for print notification (a cost that seems to escalate each and every year, as circulations shrink and readership dwindles), that tax collectors can also afford additional internet technology personnel for their offices. Our purpose in seeking legislation to reduce the amount of newspaper publication tax collectors to pay for is to reduce their costs, not increase them by now having to pay for two mandates."
3. State Mandate. This bill is keyed a state mandate, which means the state could be required to reimburse local agencies and school districts for implementing the bill's provisions if the Commission on State Mandates determines that the bill contains costs mandated by the state.

REGISTERED SUPPORT / OPPOSITION:

Support

Orange County Treasurer-Tax Collector Shari L. Freidenrich

Opposition

California Association of County Treasurers and Tax Collectors

Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958

 THIRD READING  

Bill No: SB 653

Author:

:

Vote:

SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 4/26/17

AYES: McGuire, Nguyen, Beall, Hernandez, Hertzberg, Lara, Moorlach

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/25/17

AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener

SUBJECT:

SOURCE: Author

DIGEST:

This bill requires the tax collector to publish on their Internet Web site any notice that the law requires be published in a newspaper.

ANALYSIS:

Existing law:

1. Assigns to county tax collectors the duty to collect all taxes, including real and personal property taxes, school and special district taxes, and business licenses. As part of these duties, tax collectors administer the billing and collections process for property taxes, determining delinquency and default, and administering the sale of tax-defaulted property, among other obligations.
2. Requires the tax collector to post notices of specific events in a newspaper of general circulation, or if there isn’t one, by posting the notice in up to three public places. Among others, tax collectors must publish notices containing information specified by law in the following circumstances:
3. Specific information regarding due dates for payments on the secured roll, times when taxes become delinquent, penalties and costs for delinquency, that all taxes may be paid when the first installment is due, and the times and places at which payment can be made,
4. Sale of improvements, personal property, and possessory interests of delinquent taxpayers,
5. A notice of power and intent to sell all property that will be tax defaulted,
6. Affidavit of real property in default,
7. Notice of tax sale,
8. Joint agreements for nonprofits to buy tax defaulted property,
9. When excess proceeds from a tax sale exceed $150.
10. Requires notices to comply with provisions of the Government Code which require the notice be published once per week for three successive weeks. This requirement is satisfied when the notice appears three times in a newspaper published once per week, with at least five days between the first and last publication date. Tax collectors must publish all required notices, with the sole exception for cases in which the excess proceeds of a tax sale are less than the cost to publish.

This bill:

1. Requires the tax collector to publish on their Internet Web site any notice that the law requires be published in a newspaper, and be available for at least the same amount of time as the notice is required to be in the newspaper.
   
2. Allows the notice requirement is satisfied by either posting a copy of the newspaper containing the notice in a format that is downloaded in PDF format, or by providing a link to the Internet Web site of the newspaper containing the notice.
   
3. Defines “newspaper” as a newspaper of general circulation.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee, “This bill could result in a reimbursable mandate, the magnitude of which is unknown but potentially in excess of $50,000 in a given fiscal year (General Fund).”

SUPPORT: (Verified 5/25/17)

Orange County Treasurer-Tax Collector Shari Freidenrich

OPPOSITION: (Verified 5/25/17)

California Association of County Treasurer-Tax Collectors

ARGUMENTS IN SUPPORT: According to the author, “Currently, under a law enacted in 1939, Treasurer-Tax Collectors must post all required notices in newspapers or, if there is no local newspaper, three public places in each township within the county. Senate Bill 653 would require Treasurer-Tax Collectors to also post the notice on their websites. By posting the notices online, they will be more accessible and will reach more people, especially as circulation numbers of newspapers continue to decline. Senate Bill 653 would also give counties the ability to keep notices available online long after they would be published in the newspaper. With the advent and increasing use of the internet, modernizing a nearly eighty-year-old law helps notify more people so they may resolve issues with the county.”

ARGUMENTS IN OPPOSITION: According to the California Association of County Treasurers and Tax Collectors, (CACTTC) “CACCTTC has sought for many years to reduce the amount of newspaper publications that tax collectors are required to pay for, as it is evident that publishing in the newspaper produces no benefit to the affected taxpayers. CACTTC believes that online notification is a far more effective way to reach taxpayers, since print newspapers have limited reach. There is absolutely no empirical evidence to suggest that newspaper publication drives delinquent taxpayers to cure their debt. If it was effective, tax collectors would not want to change the law, since their publication costs would be recovered when the delinquent taxpayer comes in to cure their debt. This measure does not relieve tax collectors of this wasteful mandate; it does however create a new mandate that not all county tax collectors can comply with easily. The bill presumes that while simultaneously paying newspapers for print notification, that tax collectors can also afford additional internet technology personnel for our offices. Our purpose in seeking legislation is to reduce the amount of newspaper publication tax collectors to pay for is to reduce their costs, not increase them by having to pay for two mandates.”

Prepared by:

5/27/17 16:39:17

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

SB 653 (Moorlach) - County tax collectors: notices: publication

This bill may meet the criteria for referral to the Suspense File.

Bill Summary:

SB 653 would require tax collectors to publish on their internet sites any notice that current law requires be published in a newspaper.

Fiscal Impact:

This bill could result in a reimbursable mandate, the magnitude of which is unknown but potentially in excess of $50,000 in a given fiscal year (General Fund).

Background:

Current law (dating back to 1939) assigns to county tax collectors the duty to collect all taxes, including real and personal property taxes, school and special district taxes, and business licenses. In this role, they administer the billing and collections process for property taxes, determine delinquency and default, and administer the sale of tax-defaulted property. Current law requires tax collectors to post notices of specific events in a newspaper of general circulation, as defined. Specifically, they must publish notices containing information specified by law in the following circumstances:

• Specific information regarding due dates for payments on the secured property roll, times when taxes become delinquent, penalties and costs for delinquency, that all taxes may be paid when the first installment is due, and the times and places at which payment can be made.
• Sale of improvements, personal property, and possessory interests of delinquent taxpayers.
• A notice of power and intent to sell all property that will be tax defaulted.
• Affidavit of real property in default.
• Notice of tax sale.
• Joint agreements for nonprofits to buy tax defaulted property.
• When excess proceeds from a tax sale exceed $150.

Generally, these published notices must comply with provisions of the Government Code, which require that they be published once per week for three successive weeks. This requirement is satisfied when the notice appears three times in a newspaper published once per week, with at least five days between the first and last publication date. While assessors may publish relevant lists on the assessor’s website upon approval of the county board of supervisors instead of sending information by mail, current law neither allows nor requires tax collectors to publish notices on their internet sites.

Proposed Law:

This bill would require county tax collectors to publish on their internet site any notice that current law requires be published in a newspaper. The measure would require that the notice be provided for at least as long as is required to be published in the newspaper. The notice must be provided by either: (1) posting a copy of the newspaper containing the notice in a format that is downloaded in PDF format, or (2) providing a link to the Internet Web site of the newspaper containing the notice. The measure defines “newspaper” as a newspaper of general circulation.

Staff Comments:

Discussions with county tax collectors indicate that complying with the measure would require more than a few simple steps to publish the relevant information on their internet sites. The State’s larger counties generally have in-house information technology (IT) departments, and consequently would likely be able to publish notices on their internet sites with comparatively little new expense beyond one-time programming and set-up costs.

Conversely, smaller counties (that lack full-time IT staff), anecdotally report that their external IT departments can require advanced notice of one to two weeks for even minor posting changes, and their billing includes things such as overhead and management expenses in addition to the staff time to update the internet site. All told, the number of internet postings for each of the 58 counties in a given year is unknown; consequently, the aggregate cost of the bill is thus also unknown, but could exceed $50,000 in a given fiscal year.

Under the California Constitution, the State is required to reimburse local governments for the costs of new or expanded state mandated local programs. This measure would require the State to reimburse local agencies pursuant to existing statutory provisions if the Commission on State Mandates (Commission) determines that the bill imposes a reimbursable mandate.

Thus, any potential fiscal impacts to the State resulting from this bill would depend on (1) the extent to which county tax collectors file claims with the Commission, and (2) whether the Commission approves those claims as reimbursable.

-- END --

SENATE COMMITTEE ON GOVERNANCE AND FINANCE

Senator Mike McGuire, Chair

2017 - 2018 Regular

County tax collectors: notices: publication

Requires the tax collector to publish on their Internet web site any notice that the law requires be published in a newspaper.

Background

California law assigns to county tax collectors the duty to collect all taxes, including real and personal property taxes, school and special district taxes, and business licenses. As part of these duties, tax collectors administer the billing and collections process for property taxes, determining delinquency and default, and administering the sale of tax-defaulted property, among other obligations. Several sections in the Revenue Taxation Code require the tax collector to post notices of specific events in a newspaper of general circulation, or if there isn’t one, by posting the notice in up to three public places. Among others, tax collectors must publish notices containing information specified by law in the following circumstances:

• Specific information regarding due dates for payments on the secured roll, times when taxes become delinquent, penalties and costs for delinquency, that all taxes may be paid when the first installment is due, and the times and places at which payment can be made,
• Sale of improvements, personal property, and possessory interests of delinquent taxpayers,
• A notice of power and intent to sell all property that will be tax defaulted,
• Affidavit of real property in default,
• Notice of tax sale,
• Joint agreements for nonprofits to buy tax defaulted property,
• When excess proceeds from a tax sale exceed $150.

Generally, notices must comply with provisions of the Government Code which require the notice be published once per week for three successive weeks. This requirement is satisfied when the notice appears three times in a newspaper published once per week, with at least five days between the first and last publication date. Tax collectors must publish required notices, with the sole exception for cases in which the excess proceeds of a tax sale are less than the cost to publish (SB 948, Committee on Governance and Finance, 2011).

While assessors may publish relevant lists on the assessor’s website upon approval of the county board of supervisors instead of sending information by mail (SB 1493, Committee on Revenue and Taxation, 2010), state law neither allows nor requires tax collectors to publish notices on their websites. The author wants to require tax collectors to post on their web sites any notice currently required to be published in a notice of general circulation.

Proposed Law

Senate Bill 653 requires the tax collector to publish on their Internet web site any notice that the law requires be published in a newspaper. The measure requires that the notice be provided for at least as long as is required to be published in the newspaper. The notice must be provided by:

• Posting a copy of the newspaper containing the notice in a format that is downloaded in PDF format.
• Providing a link to the Internet Web site of the newspaper containing the notice.

The measure defines “newspaper” as a newspaper of general circulation.

State Revenue Impact

No estimate.

Comments

1. Purpose of the bill. According to the author, “Currently, under a law enacted in 1939, Treasurer-Tax Collectors must post all required notices in newspapers or, if there is no local newspaper, three public places in each township within the county. Senate Bill 653 would require Treasurer-Tax Collectors to also post the notice on their websites. By posting the notices online, they will be more accessible and will reach more people, especially as circulation numbers of newspapers continue to decline. Senate Bill 653 would also give counties the ability to keep notices available online long after they would be published in the newspaper. With the advent and increasing use of the internet, modernizing a nearly eighty-year-old law helps notify more people so they may resolve issues with the county.”

2. Right way? Laws requiring tax collectors to post specified notices were enacted decades ago, when newspapers were the predominant, if not the only, means of conveying vital information to the public. With the advent of the internet, social media, and online news aggregation services, media experts disagree regarding the primacy of print newspapers in serving this important role. Tax collectors question whether publishing notices in newspapers truly spurs taxpayers to cure delinquent debts, especially given the publishing costs they incur. SB 653 requires tax collectors to also publish these notices on their websites, which enhances the availability of this information. However, the bill does not relieve tax collectors of the newspaper publishing requirement, thereby adding an additional mandate. The Committee may wish to consider whether the newspaper publishing requirement is still necessary today, and if not, whether offering tax collectors the option to choose between a newspaper and their website is preferable.

3. Mandate. The California Constitution requires the state to reimburse local governments for the costs of new or expanded state mandated local programs. Because SB 653 imposes a duty on local officials, Legislative Counsel says that the bill imposes a new state mandate. The measure requires the state to reimburse local agencies pursuant to existing statutory provisions if the Commission on State Mandates determines that the bill imposes a reimbursable mandate.

Support and Opposition

(4/20/17)

Support: Unknown.

Opposition: California Association of County Treasurer-Tax Collectors.

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