HomeMy WebLinkAboutMINUTES - 07221997 - C26 TO: BOARD OF SUPERVISORS Contra
FROM:
Phil Batchelor, County Administrator ; Costa
��
DATE: July 22 , 1997 °°r;;couNr; �T� County
SUBJECT; Proposed Legislation
SPECIFIC REOUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION
ADOPT a position in support of proposed legislation AB 1178 (Davis) which would provide taxpayers
with consumer protections with respect to solicitations from companies that market homeowner
exemption and assessment appeal application filing services.
BACKGROUND
County clerks, clerks of the board, and administrators of county boards of equalization have received
numerous complaints from residents concerning solicitations from companies that offer to file a
homeowner exemption on the taxpayer's behalf, or that offer to provide'taxpayers with comparable sales
data to support an assessment appeal application. It is the later type of solicitation that concerns the
membership of the County Clerks Association.
Solicitations from this type of company often appear to be from an official government agency and imply
that, upon payment of a fee, the sender will provide the taxpayer with sales information on parcels of
real estate that are comparable to the taxpayer's property. The solicitations often inflate the estimated
tax savings because they are often based on sales data for properties that are not truly comparable to
the taxpayer's. These companies charge the taxpayer with a $39 to $89 filing fee and agree to provide
comparables that will assist them in achieving a reduction in their property tax assessments. Many
appeals filed by taxpayers who have paid for these "services" end up having their appeals denied
because the sales data that has been supplied to them is useless or even inadmissible at the appeal
hearing. What many potential appellants do not realize is that they can file their own tax appeals
without charge as well as secure comparables from the Assessor's Office without charge should they
desire to represent themselves in the appeals procedure.
Assembly Bill 1178 would reduce or eliminate deceptive mailed solicitations and would provide the
taxpayer with an important measure of protection.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
yy RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
L_APPROVE OTHER
SIGNATUREIS):
ACTION OF BOARD ON 11il g 2.2.> 1()C)7 APPROVED AS RECOMMENDED _ OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS(ABSENT AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC: CAO — Claude Van Marter ATTESTED July 22, 1997
PHIL BATCHELOR,CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY'ADMINISTRATOR
BY �',v DEPUTY
M382 (10/88)
532 ASSEMBLY WEEKLY HISTORY
A.B. No. 1178—Davis.
An act to amend Section 17533.6 of, and to add Sections 17537.8 and 17537.9 to,
the Business and Professions Code, relating to unfair practices.
1997
Feb. 28—Introduced. To print.
Mar. 1—From printer. May be heard in committee March 31.
Mar. 3—Read first time.
Mar. 20—Referred to Com.on HEALTH.
April 7—From committee chair, with author's amendments: Amend, and
re-refer to Com. on HEALTH. Read second time and amended.
April 9—Re-referred to Com. on HEALTH.
April 10—Withdrawn from committee. Re-referred to Com. on C.P.,G.E. &
E.D.
April 23—From committee: Do pass, and re-refer to Com. on APPR.
Re-referred. (Ayes 11. Noes 0. (April 22).
May 19—From committee: Amend,and do pass as amended. (Ayes 17. Noes
0.) (May 14).
May 20—Read second time and amended. Ordered .returned to second
reading.
May 21-Read second time. To third reading.
r May 27=Read third time, amended, and returned to third reading.
May 29—Read third time,passed,and to Senate. (Ayes 69.Noes 2.Page 2051.)
June 2—In Senate. Read first time. To Com. on RLS. for.assignment.
"". June 10—Referred to Com. on JUD.
July 2—From committee: Do pass, and re-refer to Com. on APPR. with
recommendation:To Consent Calendar.Re-referred. (Ayes 8. Noes
0.)
July 11—In committee: Hearing postponed by committee.
A.B. No. 1179—Woods.
An act to add Section 4675.2 to the Public Resources Code, relating to public
resources, and making an appropriation therefor.
1997
Feb. 28--Introduced. To print.
Mar. 1-From printer. May be heard in committee March 31.
Mar. 3—Read first time.
Mar. 20—Referred to Com. on NAT. RES.
April 9—In committee:Set,first hearing. Hearing canceled at the request of
author.
April 15—Fr6m committee chair, with author's amendments: Amend, and
re-refer.to Com. on NAT. RES. Read second time and amended.
April'17—Re-referred to Com. on NAT. RES.
May 1—From committee:Amend,do pass as amended,and re-refer to Corn. `
on APPR. (Ayes 9. Noes 0.) (April 21).
May 5—Read
'second time and amended.
May 8—Re-referred to Com. on APPR. f
May 21=In committee: Set, first hearing. Referred to APPR. suspense file. 4
May. 30—In committee: Set,second.hearmg.*Held under submission. 4
f
;
I
}
i
i
r
k
j
AMENDED IN ASSEMBLY MAY 27, 1997
AMENDED IN ASSEMBLY MAY 20, 1997
AMENDED IN ASSEMBLY APRIL 7, 1997
CALIFORNIA LEGISLATURE-1997-98 REGULAR SESSION
ASSEMBLY BILL No. 1178
Introduced by Assembly Member Davis
February 28, 1997
An act to amend Section 17533.6 of, and to add Sections
17537.8 and 17537.9 to, the Business and Professions Code,
relating to unfair practices.
LEGISLATIVE COUNSEL'S DIGEST
AB 1178, as amended, Davis. Consumer representation.
Existing law provides that certain advertising related
practices are unlawful, and . makes a . violation of those
provisions a misdemeanor as well as grounds for civil actions.
Among other things, it is unlawful for a nongovernmental
entity to solicit information, or the purchase of a product or
service, or a contribution by means of a mailing that contains
a symbol that implies a government connection unless it has
consent of a government entity, the solicitation bears a
statement on its face, or the envelope or outside cover
contains a specified notice.
This bill would specify that the nongovernmental entity
either must have consent of a government entity, or the
solicitation must bear a statement on its face and the envelope
or outside cover must contain a specified notice.
96
AB 1178 — 2 —
Existing law makes it unlawful for a person to make an
untrue or misleading statement in connection with the
offering or performance of a homestead filing service.
Existing law also requires specified disclosures by those
services, and limits the fee charged to $25.
This bill would impose similar requirements for
homeowners'exemption filing services and assessment appeal
application filing services, except that no fee limit would be
imposed for the latter.
Since a violation of these provisions would be a crime, the
bill would impose a state-mandated local program by creating
new crimes.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
1 SECTION 1. Section 17533.6 of the Business and
2 Professions Code is amended to read:
3 17533.6. It is unlawful for any person, firm,
4 corporation, or association that is a nongovernmental
5 entity to solicit information, or to solicit the purchase of
6 or payment for a product or service, or to solicit the
7 contribution of funds or membership fees, by means of a
8 mailing that contains a seal,insignia,trade or brand name,
9 or any other term or symbol that reasonably could be
10 interpreted or construed as implying any state or local
11 government connection, approval, or endorsement,
12 unless the requirements of subdivision (a) or (b) have
13 been met, as follows:
14 (a) The nongovernmental entity has an expressed
15 connection with, or the approval or endorsement of, a
16 state or local government entity, if permitted by other
17 provisions of law.
96
- 3 — AB 1178
Zake an - 1 (b) The solicitation meets both of the following
-ith the 2 requirements:
service. 3 (1) The solicitation bears on its face, in conspicuous
y those 4 and legible type in contrast by typography, layout, or
ats5 color with other printing on its face, the following notice:
t appeal for 6 "THIS PRODUCT OR SERVICE HAS NOT BEEN
o d be ` 7 APPROVED OR ENDORSED BY ANY GOVERNMENT
8 AGENCY, AND THIS OFFER IS NOT BEING MADE
ime, the9 BY AN AGENCY OF THE GOVERNMENT."
10 (2) The envelope or outside cover or wrapper in
�reating 11 which the matter is mailed bears on its face in capital
imburse 12 letters and in conspicuous and legible type, the following
dated 13 notice:
an
dated
14 "THIS IS NOT A GOVERNMENT DOCUMENT."
ures 15 SEC. 2. Section.17537.8 is added to the Business and
uired 16 Professions Code, to read:
-e
q 17 17537.8. (a) It is unlawful for any person to make any
18 untrue or misleading statements in any manner in
tee: yes. 19 connection with the offering or performance of a
( 20 homeowners' exemption filing service. For the purpose
follows: 21 of this section, an "untrue or misleading statement"
22 means and includes any representation that any of the
23 following is true:
less and 24 (1) A fee is required, in order to receive the
25 homeowners' exemption.
I., firm, f ( 26 (2) The offeror of the homeowners' exemption filing
nmental
27 service has a file or record covering a person to whom a
-chase of 28 solicitation is made.
elicit the 29 (3). The offeror of the homeowners' exemption filing
eans of a 30 service is, or is affiliated with, any governmental entity.
:id name, 31 A violation of this paragraph includes, but is not limited
could be 32 to, the following:
or local 33 (A) The misleading use of any governmental seal,
rsement, �^ 1 34 . emblem, or other similar symbol.
(b) have '
35 (B) The use of a business name including the word
ressed 36 "homeowners'exemption" or "exemption" and the word
!xp37 assessor, auditor'311, 99agency, bureau,
gent of, a 38 "department, "division," "federal," "state," "county,"
by other 39 "cit „ « „ «���:r_ „ e =,
Y� or
96 96
AB 1178 — 4 -
1 `municipal, " or the name of any city, county, city and
2 county, or any governmental entity.
3 (C) The use of an envelope that simulates an envelope
4 containing a government check, tax bill, or government
5 notice or an envelope that otherwise has the capacity to
6 be confused with, or mistaken for, an envelope sent by a
7 governmental entity.
8 (b) (1) It is unlawful to offer to perform a
9 homeowners' exemption filing service without making
10 the following disclosure:
11 "THIS HOMEOWNERS' EXEMPTION FILING
12 SERVICE IS NOT ASSOCIATED WITH ANY
13 GOVERNMENT AGENCY. YOU CAN OBTAIN AND
14 FILE A HOMEOWNERS' EXEMPTION CLAIM FORM,
15 AT NO COST, WITH THE COUNTY ASSESSOR'S
16 OFFICE."
17 (2) The disclosures specified in paragraph (1) shall be
18 placed at the top of each page of every advertisement or
19 promotional material disseminated by an offeror of a
20 homeowners' exemption filing service and shall be
21 printed in 12-point boldface type enclosed in a. box
22 formed by a heavy line.
23 (3) The disclosure specified in paragraph (1) shall be
24 recited at the beginning of every oral solicitation and
25 every broadcast advertisement and shall be delivered in
26 printed,form as prescribed by paragraph (2) before the
27 time each person who responds to the oral solicitation or
28 broadcast advertisement is obligated to pay for the
29 service.
30 (c) No offeror of a homeowners' exemption filing
31 service shall charge, demand, or collect any money until
32 after the homeowners' exemption is filed with the county
33 assessor. The total ' amount charged, demanded, or
34 collected by an offeror of a homeowners'exemption filing
35 service shall not exceed twenty-five dollars ($25).
36 (d) For the purposes of this section, the following
37 definitions apply:
38 (1) "Homeowners' exemption filing service" means
39 any service performed or offered to be performed for
40 compensation in connection with the preparation or
96
- 5 — AB 1178
:ity and 1 completion of a homeowners' exemption claim or in
2 connection with the assistance in any manner of another
zvelope 3 person to prepare or complete a homeowners' exemption
rnment 4 claim. .
iacity to 5 (2) "Homeowners' exemption" has the meaning
ent by a 6 described in Section 218 of the Revenue and Taxation
, .. 7 Code.
form a 8 SEC. 3. Section 17537.9 is added to the Business and
making 9 Professions Code, to read:
10 17537.9. (a) It is unlawful for any person to make any
FILING 11 untrue or misleading statements in any manner in
I ANY 12 connection with the offering or performance of an
IN AND 13 assessment appeal application filing service. For the
[FORM, 14 purpose of this section, an "untrue or misleading
ESSOR'S 15 statement" means and includes any representation thw
16 any of the following is true:
shall be 17 (1) The preparation of an assessment appea
ament or 18 application will result in a guaranteed reduction o
2�ror of a 19 property taxes of a stated amount.
shall be 20 (2) A fee is required in order for the county to proces
in a. box r $ ' 3� 21 a reduction of a property's value.
22 (3) The offeror of the assessment appeal applicatio"
shall be 23 filing service will be physically present to represent th
ation and 24 person to whom a solicitation is made before s-
livered in -1�1 25 assessment appeals board, county board of equalization
)efore the ,; ; 2, 26 or assessment hearing officer, unless the fee includes th.
2itation or 27 service.
y for the 28 (4) The offeror of the assessment appeal applicatic
29 filing service will prepare or complete the application
:ion filing 30 full,with the exception of the property owner's signatur
oney until 31 on behalf of the person to whom a solicitation is mad
the county 32 unless the fee includes this service.
anded, or 33 (5.) The offeror of the assessment appeal applicati(
3tion filing i. 34 filing service has a file or record covering a person
,25) • 35 whom a solicitation is made.
following 36 (6) The offeror of the assessment appeal applicati,
37 filing service is, or is affiliated with, any governmen,
ce" means 38 entity. A violation of this paragraph includes, but is r
ormed for 39 limited to, the following:
)aration or
96
AB 1178 — 6 —
I
- 6 -1 (A) The misleading use of any governmental seal,
2 emblem, or other similar symbol.
3 (B) The use of a business name including the word
4 "appeal" or "tax" and the word "assessor," "agency,"
5 "bureau," "department," "division," "federal," "state,"
6 "count " "cit " " ieip -i„ -d " 'Unit
Y, Y> - e
7 Stettes," or municipal, "or the name of any city, county,
8 city and county, or any governmental entity.
9 (C) The use of an envelope that simulates an envelope
10 containing a government check, tax bill, or government
11 notice or an envelope that otherwise has the capacity to
12 be confused with, or mistaken for, an envelope sent by a
13 governmental entity.
14 (b) (1) Itis unlawful to offer to perform an assessment'
15 appeal filing service without making the following
16 disclosure:.
17 "THIS ASSESSMENT APPEAL APPLICATION FILING
18 SERVICE IS NOT ASSOCIATED WITH ANY
19 GOVERNMENT AGENCY. IF YOU DISAGREE WITH
20 THE ASSESSED VALUE OF YOUR PROPERTY, YOU
21 HAVE THE RIGHT TO AN INFORMAL ASSESSMENT
22 REVIEW, AT NO COST, BY CONTACTING THE
23 ASSESSOR'S OFFICE DIRECTLY. IF YOU AND THE
24 ASSESSOR CANNOT AGREE TO THE VALUE OF
25 THE PROPERTY OR IF YOU DO NOT WISH TO
26 CONTACT THE ASSESSOR YOU CAN OBTAIN AND ;
27 FILE AN APPLICATION, AT NO COST, ON YOUR
28 OWN BEHALF. AN APPEALS BOARD HAS THE
29 AUTHORITY TO RAISE PROPERTY VALUES (BUT IN
30 NO CASE HIGHER THAN THE PROPOSITION 13
31 PROTECTED VALUE) AS WELL AS TO LOWER
32 PROPERTY VALUES."
33 (2) The disclosures specified in paragraph .(I) shall be
34 placed at the top of each page of every advertisement or
35 promotional material' disseminated by an offeror of an
36 assessment appeal application filing service and shall be
37 printed in 12-point boldface type enclosed in a box
38 formed by a heavy line.
39 (3) The disclosure specified in paragraph (1) shall be
40 recited at the beginning of every oral solicitation and
96
- 7 —
AB 1178
I
eal, 1 every broadcast advertisement and shall be delivered in
2 printed form as prescribed by paragraph (2) before the
ord 3 time each person who responds to the oral solicitation or
.y," 4 broadcast advertisement is obligated to pay for the
te," 5 service.
i-ed 6 (c) No offeror of an assessment appeal application
nty, 7 filing service shall charge, demand, or collect any money
8 until after the assessment appeal application is filed with
.ope 9 the clerk of the assessment appeals board.
.dent 10 (d) For the purposes of this section, the following
_y to 11 definitions apply:
by a 12 (1) "Assessment appeal application filing service"
13 means any service performed or offered to be performed
nent 14 for compensation in connection with the preparation or
,,ng 15 completion of an application for reduction in assessment
16 of residential property or in connection with the
,ING 17 assistance in any manner of another person to prepare or
ANY . 18 complete an application for reduction in assessment of
LITH 19 residential property. "Assessment appeal application
YOU 20 filing service" does not include any service performed by
:ENT 21 a person who actively advocates, in person or by written.
THE 22 and oral communications, on the behalf of the person to
THE 23 whom a solicitation is made before the assessment appeals
OF 24 board or the assessor's office. "Actively advocate" does
I TO 25 not include the act of providing the person to whom a
AND t
26 solicitation is made with a list of comparable sales of
OUR 27 residential property.
THE 28 (2) "Assessment appeal application" has the meaning
UT IN 29 described in Section 1603 of the Revenue and Taxation
)N 13 30 Code.
)WER 31 SEC. 4. No reimbursement is required by this act
32 pursuant to Section 6 of Article XIII B of the California
hall be 33 Constitution because the only costs that may be incurred
gent or 34 by a local agency or school district will be incurred
• of an ' " 35 because this act creates a new crime or infraction,
hall be 36 eliminates a crime or infraction, or changes the penalty
a box 37 for a crime or infraction, within the meaning of Section
38 17556 of the Government Code, or changes the definition
;hall be 39 of a crime within the meaning of Section 6 of Article
on and 40 XIII B of the California Constitution.
96 96
• r
AB 1178 — 8 —
I
8 —I Notwithstanding Section 17580 of the Government
2 Code, unless otherwise specified, the provisions of this act
3 shall become operative on the same date that the act
4 takes effect pursuant to the California Constitution.
O
96
OFFICERS—1996-1998
KENNETH A. PETTIT �A
- President
Santa Barbara County
Mailing Address:
P,O.Box 159
Santa Barbara, CA 93102-0159 ra
(805)568-2215 H
MARSHA A.YOUNG O O
Vice-President
Mendocino County * L
BRADLEY J.CLARK
Treasurer O�1 blished V
Alameda County C��Q�
ANN REED July 8, 1997
Secretary
Shasta County
BOARD OF DIRECTORS
APPOINTED:
DEBORA CARRINGTON The Honorable Patrick Johnston
Ventura County Chair, Senate Committee on Appropriations
JANETGALLAGHER
County ER State Capitol, Room 2206
GARY GRANVILLE Sacramento, CA 95814
Orange County
CANDACE GRUBBS
Butte County Dear Senator Johnston:
HOWARD HANSON
Marin County
CO NYMc ORMA K Re: Assembly Bill 1178 (Davis) Consumer representation,
Los JOHN McKIBBEN As amended May 27, 1997
Los Angeles County To be heard in Senate Committee on Appropriations, July 14,
RON T 1997 SUPPORT
Alamedameds County
JULIE RODEWALD
San Luis Obispo County The County Clerks Association strongly supports Assembly Bill 1178 which
WARREN A.SLOCUM
San Mateo County would provide taxpayers with important consumer protections with respect
ELECTED: to solicitations from companies that market homeowner exemption and
SALLYNohen Area assessment appeal application filing services. We respectfully request that
Shasta County
BRUCE C.BOLI GER you and the members of your committee vote "aye" when this. important
Mother Lode Area piece of consumer legislation is heard in the Senate Committee on
Nevada County
EEVE LEWIS Appropriations on Monday, July 14, 1997.
Ba Area
Sonoma County
LARRY 0.TUNISON During the last four years, taxpayers have received numerous misleading,
Central Area
San Joaquin County and even fraudulent, solicitations from companies that offer to file a
FRANK K.JOHNSON
Southern Area homeowner exemption on the taxpayer's behalf, or that offer to provide
Riverside County taxpayers wli I c; ila 'Jai%a'Uie sales data iii sI.ipport an assessment appeal
ADVISORY COUNCIL TO
BOARD OF DIRECTORS application. As administrators of county boards of equalization, it is the latter
JOHN D'ALEXANDER type of solicitation that particularly concerns our membership.
Del Norte County
LONNA B.SMITH
Sutter County Solicitations from this type of company often appear to be from an official
LEGISLATIVE COMMITTEES
COURTS: government agency and imply that, upon payment of a fee, the sender will
LARRY JACKSON provide the taxpayer with sales information on parcels of real estate that are
Los Angeles County
comparable to the taxpayer's property. The comparable sales data is
ELECTIONS:
TONY IONS: RD purported to be useful to the taxpayer in seeking a reduction in the assessed
BERNYolo County value of the taxpayer's property. The solicitations often inflate the estimated
ERNEST R. to Coun S tax savings because the are often based on sales data for properties that
Sacramento County 9 Y P P
CLERK OF THE BOARD: are not truly comparable to the taxpayer's. Furthermore, the .services
JOANNE STURGES described b the companies differ marked) from those actual) provided to
Los Angeles County Y P Y Y
CINDY TURNER July 8, 1997 the taxpayer.
Sacramento County
COUNTY CLERK:
KATHLEEN MORAN
Colusa County
Ofcium Popur- Office of the People
July 8, 1997
Page 2
Our members have received many calls and letters of complaint from taxpayers who
believe that they have paid the county anywhere from $39 to $89 to review and reduce
their property tax assessment. Many appeals filed by taxpayers who have paid for these
"services" end up having their appeals denied because the sales data that has been
supplied to them is useless or even inadmissible at the appeal hearing.
Assembly Bill 1178 would reduce or eliminate deceptive mailed solicitations and would
provide taxpayers with an important measure of protection. Again, we ask that you vote
"aye„ ��:her Assembly Bill 11?8 is heard in the Senate Appropriations Committee on July
14, 1997. If you need any additional information from our membership, please call John
McKibben at (213) 974-1405. Thank you.
Very truly yours,
Joanne Sturges, Co-Chair
Clerks of the Board of Supervisors
Legislative Committee
c: Each Member and Consultant,
Senate Committee on Appropriations
The Honorable Susan Davis
The Honorable Johan Klehs
James A. Simpson, Legislative Advocate
mA1eg 1997\ab 1178sa
Q*GpUNTy'c
e+ �
w�@
fi w
K
� fi CA
O
v � zmInz
rnrn� ro
NN0rm -
prrnN1G
rn 'P t3 r-
� � a� a
0
CD '0
m o
{
N
-'a WN
o tat
CD
UA
ld }tly"'
UO�