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Committee advances AB 418 to appropriations after vote, bill would add notice hearing and dispute process for Chapter 8 tax sales
Summary
AB 418, by Assemblymember Wilson, would create a required notice/hearing process and an administrative remedy for county Chapter 8 tax sales when property owners dispute negotiated sale prices; the committee voted to refer the bill to appropriations, 6-0.
Assembly Bill 418, authored by Assemblymember Wilson, was presented to the Assembly Revenue and Taxation Committee and advanced to the Assembly Appropriations Committee after a committee vote of 6-0.
AB 418 would create a process for California county tax collectors to follow when using the Chapter 8 tax-sale process, including a required notice and public hearing where parties — including nonprofit purchasers, cities, counties and neighborhood representatives — could discuss the proposed negotiated sale price and the justification for that price. The bill also would provide an administrative remedy for property owners who dispute the price set in a Chapter 8 negotiated sale.
Wilson told the committee that Chapter 8 is used to dispose of tax-defaulted properties that have little market value or are difficult to auction, and that the bill is intended to address potential constitutional concerns raised by the U.S. Supreme Court's decision in Tyler v. Hennepin by ensuring transparency and an opportunity to contest negotiated sale prices. Solano County Treasurer-Tax Collector Chuck Lomeli and Lake County Treasurer-Tax Collector Patrick Sullivan testified in support, describing the types of properties handled under Chapter 8 — inaccessible subdivisions, nuisance lots and wildfire-damaged land — and arguing that Chapter 8 sales can be a practical alternative to costly appraisals or repeated auctions that yield abandonment and repeated defaults.
Supporters said amendments were added to extend notice requirements from 30 to 45 days and that the Howard Jarvis Taxpayers Association moved from opposition to support after those changes. Mark Stivers of the California Housing Partnership, Scott Kaufman of the Howard Jarvis Taxpayers Association and Emma Jungwirth of the California State Association of Counties also registered support and gave brief remarks.
After presentation and public support testimony, the committee took a vote and recorded a 6-0 tally to refer AB 418 to the Appropriations Committee (a "do pass to appropriations" recommendation).
