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AB-588 Contractual assessments: financing public improvements: right to cancel documentation.(2017-2018)

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Date Published: 03/23/2017 09:00 PM
AB588:v98#DOCUMENT

Amended  IN  Assembly  March 23, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill
No. 588


Introduced by Assembly Member Dababneh

February 14, 2017


An act to amend Section 5898.10 5898.16 of the Streets and Highways Code, relating to contractual assessments.


LEGISLATIVE COUNSEL'S DIGEST


AB 588, as amended, Dababneh. Contractual assessments: financing public improvements. improvements: right to cancel documentation.
Existing law prohibits a public agency from permitting a property owner to participate in programs relating to voluntary contractual assessments to finance certain improvements, unless the property owner is given the right to cancel the contractual assessment in a document, as provided. Existing law requires the document to contain specified information, including that if the property owner sends or delivers the written notice to cancel in some way other than mail, fax, or email, it must be delivered to a specified address no later than an unspecified date.
This bill would instead require the document to provide that if the property owner sends or delivers the written notice to cancel in some way other than mail, fax, or email, it must be delivered to a specified address no later than midnight on the 3rd business day after whichever of specified events occurs last.

Existing law authorizes the legislative body of any public agency to determine that it would be convenient and advantageous to designate an area within which authorized public agency officials and property owners may enter into voluntary contractual assessments and make arrangements to finance public improvements to specified lots or parcels or to finance the installation of distributed generation renewable energy sources or energy or water efficiency improvements that are permanently fixed to real property, as specified.

This bill would make nonsubstantive changes to these provisions.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 5898.16 of the Streets and Highways Code is amended to read:

5898.16.
 (a) A public agency shall not permit a property owner to participate in any program established pursuant to this chapter for the purposes specified in paragraph (2) of subdivision (a) of Section 5898.20 or Section 5899 or 5899.3 if any of the following apply:
(1) The property owner’s participation would result in the total amount of the annual property taxes and assessments exceeding 5 percent of the property’s market value, as determined at the time of approval of the property owner’s contractual assessment.
(2) The property does not comply with the conditions specified in paragraphs (1) to (5), inclusive, and paragraph (8), and, in addition, for properties with energy efficiency improvements specified under Section 5898.20, paragraph (7), of subdivision (a) of Section 26063 of the Public Resources Code.
(b) A public agency shall not permit the property owner to participate in any program established pursuant to this chapter for the purposes specified in paragraph (2) of subdivision (a) of Section 5898.20 or Section 5899 or 5899.3 unless the property owner is given the right to cancel the contractual assessment without penalty or obligation, consistent with the following:
(1) The property owner shall receive the right to cancel document set forth below or a substantially similar document that displays the same information in a substantially similar format. The document shall be provided to the property owner as a printed copy unless the property owner agrees to an electronic copy.
Right to Cancel
Property Owner:  [Owner Full Name],[Phone],[Email] 
Property Address:  [Property Address] 

Your Right to Cancel:

You are entering into a contractual assessment with [Provider] for financing that will result in a lien on the property at [Property Address]. You may cancel this transaction, without cost, on or before midnight on the third business day after whichever of the following events occurs last:
(1) The date on which you signed the contractual assessment.
(2) The date you received your Financing Estimate and Disclosure.
(3) The date you received this notice of your right to cancel.
If you cancel the transaction, [Provider], within 20 calendar days after [Provider] receives notice of cancellation, must take the steps necessary to reflect the fact that, if recorded, the lien on your property has been discharged and removed from the tax rolls, and [Provider] must return to you any money you have given in connection with your application, not including the application processing fee. After [Provider] has done the things mentioned above, you must return any money paid to you or on your behalf, whether to your contractor or any other person. All money must be returned to the address below.


If you cancel the transaction:
●You will not be charged a cancellation fee; and
●You will be refunded any money you have given, excluding application and processing fees as applicable.
To cancel this transaction, you may submit this form to [Provider] in writing at:
Provider:__________
Attn:Right to Cancel Notification
Email:__________
Fax number:__________
Address:__________
Deadline to Cancel:
If you want to cancel this transaction, you must submit this form on or before midnight on the third business day after whichever of the following events occurs last:
(1) The date on which you signed the contractual assessment.
(2) The date you received your Financing Estimate and Disclosure.
(3) The date you received this notice of your right to cancel.
You may use any written statement that is signed and dated by you and states your intention to cancel, or you may use this notice by dating and signing below. If you cancel by mail, fax, or email, you must send the notice no later than midnight of the third business day following the date on which you signed the contractual assessment. If you send or deliver your written notice to cancel some other way, it must be delivered to the above address no later than the date indicated above. midnight on the third business day after whichever of the following events occurs last:
(1) The date on which you signed the contractual assessment.
(2) The date you received your Financing Estimate and Disclosure.
(3) The date you received this notice of your right to cancel.
I WISH TO CANCEL
Property Owner  
Date
(2) The property owner is deemed to have given notice of cancellation at the moment that the property owner sends the notice by mail, email, or fax or at the moment that the property owner otherwise delivers the notice, as applicable.
(c) This section only applies to a property owner who seeks to participate in a program established pursuant to this chapter for the purposes specified in paragraph (2) of subdivision (a) of Section 5898.20 or Section 5899 or 5899.3 for a residential property with four or fewer units.
(d) For the purposes of this section, “property owner” shall include all owners of record.

SECTION 1.Section 5898.10 of the Streets and Highways Code is amended to read:
5898.10.

This chapter provides an alternative procedure for authorizing assessments to finance any work that may be done pursuant to this division. The terms and definitions of this division apply to this chapter, except as otherwise provided. The Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)) does not apply to any proceedings taken pursuant to this chapter.