Bill Text

Bill Information


Bill PDF |Add To My Favorites | print page

AB-1193 Real property: property records: personal identifying information.(2023-2024)

SHARE THIS: share this bill in Facebook share this bill in Twitter
Date Published: 03/16/2023 09:00 PM
AB1193:v98#DOCUMENT

Amended  IN  Assembly  March 16, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 1193


Introduced by Assembly Member Pacheco

February 16, 2023


An act to amend Section 2924c add Article 3.1 (commencing with Section 27298) to Chapter 6 of Part 3 of Division 2 of Title 3 of the Civil Government Code, relating to foreclosure. privacy.


LEGISLATIVE COUNSEL'S DIGEST


AB 1193, as amended, Pacheco. Foreclosure: procedural requirements. Real property: property records: personal identifying information.
Existing law generally regulates county recorders, and requires recorders to, upon payment of proper fees and taxes, accept for recordation any instrument, paper, or notice that is authorized or required by statute, or court order to be recorded, or authorized or required to be recorded by a local ordinance that relates to the recordation of any instrument, paper, or notice that relates to real property, as specified. Existing law requires the county recorder or each county to establish a social security number truncation program in order to create a public record version of each official record, as specified.
This bill would, except as specified, require a county recorder or other county official who manages a county’s property records to establish a procedure that, among other things, redacts personal identifying information from property records and only allows access to an unredacted property record in person at the office of the county recorder or other county official who manages the county’s property records. By mandating a new program and higher level of service on county recorders and other county officials who manage a county’s property records, this bill would impose a state-mandated local program. The bill would define “personal identifying information” as a property address, a home address, an assessor’s parcel number, and a property legal description. The bill would make related findings and declarations.
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.

Existing law imposes various requirements to be satisfied before exercising a power of sale under a mortgage or deed of trust, a process commonly referred to as foreclosure. When a default in payment on a mortgage or deed of trust occurs, the power of sale cannot be exercised until a notice of default is recorded, as specified, and a prescribed written or typed notice of default is sent to specified parties. Existing law requires that this notice begin with the heading “Important Notice” and a statement advising that if the property is in foreclosure because of a failure to make timely payments, it may be sold without court action, among other things.

The bill would make nonsubstantive changes to those provisions and correct an erroneous cross reference.

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

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) Californians who own their own homes have their personal information and homeownership information contained in property records, which are maintained by each county’s recorder. This personal information includes the home addresses, assessor’s parcel numbers, and property legal descriptions.
(b) In recent years, partially as a result of the rise in the use of social media and online access to information, Californians have seen an increase in the number of personal threats, including threats directed to individual’s homes. The ease of access to free or inexpensive sources of personal information has considerably lowered the effort required for malicious actors to discover where individuals live and information about their family members.
(c) Recently, Congress approved, and the President signed, as part of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023, the Daniel Anderl Judicial Security and Privacy Act of 2022. This act included new federal protections for federal judges and their families. The act included grant funding for state and local governments to help prevent disclosure of personal information.
(d) While California has some of the most protective privacy laws in the nation, California does not address personal identifying information associated with property records. Although California has reviewed this issue a number of times over the past 50 years, the advent of new technologies may provide county recorders with new pathways to redact personal information for all Californians.
(e) It is the intent of this act to protect personal identifying information in county property records and to create a process that ensures appropriate unredacted access for key entities.

SEC. 2.

 Article 3.1 (commencing with Section 27298) is added to Chapter 6 of Part 3 of Division 2 of Title 3 of the Government Code, to read:
Article  3.1. Personal Identifying Information in Property Records

27298.
 (a) For purposes of this article, “personal identifying information” means all of the following:
(1) A property address.
(2) A home address.
(3) An assessor’s parcel number.
(4) A property legal description.
(b) By January 1, 2026, a county recorder or other county official who manages a county’s property records shall establish a procedure that does all of the following:
(1) Redacts personal identifying information from property records.
(2) Prohibits the provision of a copy of an unredacted property record online or by mail.
(3) Only allows access to an unredacted property record in person at the office of the county recorder or other county official who manages the county’s property records.
(4) Prohibits a person from copying an unredacted property record unless they have permission from the property owner.
(c) Notwithstanding subdivision (b), a county recorder or other county official who manages the county’s property records shall grant access to unredacted property records without requiring in-person review to all of the following:
(1) A consumer reporting agency, as defined by Section 1681a of Title 15 of the United States Code.
(2) A financial institution subject to the Gramm-Leach-Bliley Act (Public Law 106-102) and regulations implementing that act.
(3) A title company.
(4) An attorney representing a client in any of the following matters:
(A) Estate planning.
(B) Judgment enforcement.
(C) Bankruptcy debtor or trustee representation.
(D) Real estate transaction.
(5) A person specified in subdivision (b) of Section 2 of Article I of the California Constitution.
(6) A real estate licensee, as defined in Section 10014 of the Business and Professions Code.

SEC. 3.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
SECTION 1.Section 2924c of the Civil Code is amended to read:
2924c.

(a)(1)Whenever all or a portion of the principal sum of any obligation secured by deed of trust or mortgage on real property or an estate for years therein hereafter executed has, before the maturity date fixed in that obligation, become due or been declared due by reason of default in payment of interest or of any installment of principal, or by reason of failure of trustor or mortgagor to pay, in accordance with the terms of that obligation or of the deed of trust or mortgage, taxes, assessments, premiums for insurance, or advances made by beneficiary or mortgagee in accordance with the terms of that obligation or of the deed of trust or mortgage, the trustor or mortgagor or their successor in interest in the mortgaged or trust property or any part thereof, or any beneficiary under a subordinate deed of trust or any other person having a subordinate lien or encumbrance of record thereon, at any time within the period specified in subdivision (e), if the power of sale therein is to be exercised, or, otherwise at any time before entry of the decree of foreclosure, may pay to the beneficiary or the mortgagee or their successors in interest, respectively, the entire amount due, at the time payment is tendered, with respect to (A) all amounts of principal, interest, taxes, assessments, insurance premiums, or advances actually known by the beneficiary to be, and that are, in default and shown in the notice of default, under the terms of the deed of trust or mortgage and the obligation secured thereby, (B) all amounts in default on recurring obligations not shown in the notice of default, and (C) all reasonable costs and expenses, subject to subdivision (c), that are actually incurred in enforcing the terms of the obligation, deed of trust, or mortgage, and trustee’s or attorney’s fees, subject to subdivision (d), other than the portion of principal as would not then be due had no default occurred, and thereby cure the default theretofore existing, and thereupon, all proceedings theretofore had or instituted shall be dismissed or discontinued and the obligation and deed of trust or mortgage shall be reinstated and shall be and remain in force and effect, the same as if the acceleration had not occurred. This section does not apply to bonds or other evidences of indebtedness authorized or permitted to be issued by the Department of Financial Protection and Innovation or made by a public utility subject to the Public Utilities Code. For the purposes of this subdivision, the term “recurring obligation” means all amounts of principal and interest on the loan, or rents, subject to the deed of trust or mortgage in default due after the notice of default is recorded; all amounts of principal and interest or rents advanced on senior liens or leaseholds that are advanced after the recordation of the notice of default; and payments of taxes, assessments, and hazard insurance advanced after recordation of the notice of default. If the beneficiary or mortgagee has made no advances on defaults that would constitute recurring obligations, the beneficiary or mortgagee may require the trustor or mortgagor to provide reliable written evidence that the amounts have been paid before reinstatement.

(2)If the trustor, mortgagor, or other person authorized to cure the default pursuant to this subdivision does cure the default, the beneficiary or mortgagee or the agent for the beneficiary or mortgagee shall, within 21 days following the reinstatement, execute and deliver to the trustee a notice of rescission that rescinds the declaration of default and demand for sale and advises the trustee of the date of reinstatement. The trustee shall cause the notice of rescission to be recorded within 30 days of receipt of the notice of rescission and of all allowable fees and costs.

A charge, except for the recording fee, shall not be made against the trustor or mortgagor for the execution and recordation of the notice that rescinds the declaration of default and demand for sale.

(b)(1)The notice, of any default described in this section, recorded pursuant to Section 2924, and mailed to any person pursuant to Section 2924b, shall begin with the following statement, printed or typed thereon:

“IMPORTANT NOTICE [14-point boldface type if printed or in capital letters if typed]

IF YOUR PROPERTY IS IN FORECLOSURE BECAUSE YOU ARE BEHIND IN YOUR PAYMENTS, IT MAY BE SOLD WITHOUT ANY COURT ACTION, [14-point boldface type if printed or in capital letters if typed] and you may have the legal right to bring your account in good standing by paying all of your past due payments plus permitted costs and expenses within the time permitted by law for reinstatement of your account, which is normally five business days prior to the date set for the sale of your property. No sale date may be set until approximately 90 days from the date this notice of default may be recorded (which date of recordation appears on this notice).

This amount is

as of

(Date)

and will increase until your account becomes current.

While your property is in foreclosure, you still must pay other obligations (such as insurance and taxes) required by your note and deed of trust or mortgage. If you fail to make future payments on the loan, pay taxes on the property, provide insurance on the property, or pay other obligations as required in the note and deed of trust or mortgage, the beneficiary or mortgagee may insist that you do so in order to reinstate your account in good standing. In addition, the beneficiary or mortgagee may require as a condition to reinstatement that you provide reliable written evidence that you paid all senior liens, property taxes, and hazard insurance premiums.

Upon your written request, the beneficiary or mortgagee will give you a written itemization of the entire amount you must pay. You may not have to pay the entire unpaid portion of your account, even though full payment was demanded, but you must pay all amounts in default at the time payment is made. However, you and your beneficiary or mortgagee may mutually agree in writing prior to the time the notice of sale is posted (which may not be earlier than three months after this notice of default is recorded) to, among other things, (1) provide additional time in which to cure the default by transfer of the property or otherwise; or (2) establish a schedule of payments in order to cure your default; or both (1) and (2).

Following the expiration of the time period referred to in the first paragraph of this notice, unless the obligation being foreclosed upon or a separate written agreement between you and your creditor permits a longer period, you have only the legal right to stop the sale of your property by paying the entire amount demanded by your creditor.

To find out the amount you must pay, or to arrange for payment to stop the foreclosure, or if your property is in foreclosure for any other reason, contact:

(Name of beneficiary or mortgagee)

(Mailing address)

(Telephone)

If you have any questions, you should contact a lawyer or the governmental agency that may have insured your loan.

Notwithstanding the fact that your property is in foreclosure, you may offer your property for sale, provided the sale is concluded prior to the conclusion of the foreclosure.

Remember, YOU MAY LOSE LEGAL RIGHTS IF YOU DO NOT TAKE PROMPT ACTION. [14-point boldface type if printed or in capital letters if typed]”


Unless otherwise specified, the notice, if printed, shall appear in at least 12-point boldface type.

If the obligation secured by the deed of trust or mortgage is a contract or agreement described in paragraph (1) or (4) of subdivision (b) of Section 1632, the notice required herein shall be in Spanish if the trustor requested a Spanish language translation of the contract or agreement pursuant to Section 1632. If the obligation secured by the deed of trust or mortgage is contained in a home improvement contract, as defined in Sections 7151.2 and 7159 of the Business and Professions Code, that is subject to Title 2 (commencing with Section 1801), the seller shall specify on the contract whether or not the contract was principally negotiated in Spanish and if the contract was principally negotiated in Spanish, the notice required herein shall be in Spanish. An assignee of the contract or person authorized to record the notice of default shall not incur any obligation or liability for failing to mail a notice in Spanish unless Spanish is specified in the contract or the assignee or person has actual knowledge that the secured obligation was principally negotiated in Spanish. Unless specified in writing to the contrary, a copy of the notice required by subdivision (c) of Section 2924b shall be in English.

(2)Any failure to comply with this subdivision shall not affect the validity of a sale in favor of a bona fide purchaser or the rights of an encumbrancer for value and without notice.

(c)Costs and expenses that may be charged pursuant to Sections 2924 to 2924i, inclusive, shall be limited to the costs incurred for recording, mailing, including certified and express mail charges, publishing, and posting notices required by Sections 2924 to 2924i, inclusive, postponement pursuant to Section 2924g not to exceed fifty dollars ($50) per postponement and a fee for a trustee’s sale guarantee or, in the event of judicial foreclosure, a litigation guarantee. For purposes of this subdivision, a trustee or beneficiary may purchase a trustee’s sale guarantee at a rate meeting the standards contained in Sections 12401.1 and 12401.3 of the Insurance Code.

(d)(1)Trustee’s or attorney’s fees that may be charged pursuant to subdivision (a), or until the notice of sale is deposited in the mail to the trustor as provided in Section 2924b, if the sale is by power of sale contained in the deed of trust or mortgage, or, otherwise at any time before the decree of foreclosure, are hereby authorized to be in an amount as follows:

(A)If the unpaid principal sum secured is fifty thousand dollars ($50,000) or less, then in a base amount that does not exceed three hundred fifty dollars ($350).

(B)If the unpaid principal sum secured is greater than fifty thousand dollars ($50,000) but does not exceed one hundred fifty thousand dollars ($150,000), then in a base amount that does not exceed three hundred fifty dollars ($350) plus one-half of 1 percent of the unpaid principal sum secured exceeding fifty thousand dollars ($50,000).

(C)If the unpaid principal sum secured is greater than one hundred fifty thousand dollars ($150,000) but does not exceed five hundred thousand dollars ($500,000), then in a base amount that does not exceed three hundred dollars ($300) plus one-half of 1 percent of the unpaid principal sum secured exceeding fifty thousand dollars ($50,000) up to and including one hundred fifty thousand dollars ($150,000) plus one-quarter of 1 percent of any portion of the unpaid principal sum secured exceeding one hundred fifty thousand dollars ($150,000).

(D)If the unpaid principal sum secured is greater than five hundred thousand dollars ($500,000), then in a base amount that does not exceed three hundred dollars ($300) plus one-half of 1 percent of the unpaid principal sum secured exceeding fifty thousand dollars ($50,000) up to and including one hundred fifty thousand dollars ($150,000) plus one-quarter of 1 percent of any portion of the unpaid principal sum secured exceeding one hundred fifty thousand dollars ($150,000) up to and including five hundred thousand dollars ($500,000) plus one-eighth of 1 percent of any portion of the unpaid principal sum secured exceeding five hundred thousand dollars ($500,000).

(2)Any charge for trustee’s or attorney’s fees authorized by this subdivision shall be conclusively presumed to be lawful and valid where the charge does not exceed the amounts authorized in this subdivision. For purposes of this subdivision, the unpaid principal sum secured shall be determined as of the date the notice of default is recorded.

(e)Reinstatement of a monetary default under the terms of an obligation secured by a deed of trust, or mortgage may be made at any time within the period commencing with the date of recordation of the notice of default until five business days before the date of sale set forth in the initial recorded notice of sale.

In the event the sale does not take place on the date set forth in the initial recorded notice of sale or a subsequent recorded notice of sale is required to be given, the right of reinstatement shall be revived as of the date of recordation of the subsequent notice of sale, and shall continue from that date until five business days before the date of sale set forth in the subsequently recorded notice of sale.

In the event the date of sale is postponed on the date of sale set forth in either an initial or any subsequent notice of sale, or is postponed on the date declared for sale at an immediately preceding postponement of sale, and, the postponement is for a period that exceeds five business days from the date set forth in the notice of sale, or declared at the time of postponement, then the right of reinstatement is revived as of the date of postponement and shall continue from that date until five business days before the date of sale declared at the time of the postponement.

Nothing contained herein shall give rise to a right of reinstatement during the period of five business days before the date of sale, whether the date of sale is noticed in a notice of sale or declared at a postponement of sale.

Pursuant to this subdivision, a beneficiary, trustee, mortgagee, or their agents or successors shall not be liable in any manner to a trustor, mortgagor, their agents or successors or any beneficiary under a subordinate deed of trust or mortgage or any other person having a subordinate lien or encumbrance of record thereon for the failure to allow a reinstatement of the obligation secured by a deed of trust or mortgage during the period of five business days before the sale of the security property, and a right of reinstatement during this period is not created by this section. Any right of reinstatement created by this section is terminated five business days before the date of sale set forth in the initial date of sale, and is revived only as prescribed herein and only as of the date set forth herein.

As used in this subdivision, the term “business day” has the same meaning as specified in Section 9.