A brewing legal fight within Fresno County grows as Recorder Paul Dictos responded to threats from the Board of Supervisors with a letter from his own attorney saying they are violating his elected authority.

On Wednesday, attorney Patience Milrod sent a letter to County Counsel Doug Sloan saying that Dictos’ interpretation of Senate Bill 2 is legally defensible and within his capacity as a recorder.

Senate Bill 2 applies a $75 fee to real estate transactions. Dictos’ interpretation — one not common in California — applies that fee multiple times for large land transactions, something that can cost tens of thousands of dollars.

Milrod, however, said when voters elected Dictos, they gave him “the responsibility and discretion” to interpret and administer the law. She said money spent on legal action would only benefit large landowners.

“When the county threatens litigation to open a statutory loophole that would result in feeding developers’ profits at public expense, the public must inquire ‘for whose benefit is the county spending our taxpayer dollars to prosecute our county recorder?'” Milrod’s letter states. “Unfortunately, the county’s threat looks suspiciously like carrying developers’ water.”

In response, Sonja Dosti, communications director with the county said Sloan’s legal opinion is that Dictos’ interpretation is incorrect and that he’s overcharging fees.

“It is important to note that we are not aware of any other recorders in the state taking the same position as Mr. Dictos,” Dosti told GV Wire in an email. “Also, while the goal of collecting more funding for affordable housing may be laudable, that in no way affects the legal interpretation.”

She said clarification from the court or legislature would be needed to resolve the matter.

Milrod Suggests County Work with Dictos to Get Clarification

On March 23, supervisors announced they had sent a demand letter to Dictos telling him to comply with Sloan’s interpretation of SB 2 — which caps real estate fees at $225. The letter came after the county agreed to pay a $10,000 claim from a Bakersfield attorney who said her client was overcharged.

In her letter, however, Milrod said the county should not have awarded money to the attorney and that Dictos never had a chance to review the claim.

Under SB 2, Dictos has sent $54 million to the state since the law passed in 2018. In return, Fresno County has received $35 million intended for affordable housing. The money has funded housing projects in Mendota, Sanger, and Reedley.

Money kept at the state level funds various kinds of housing projects.

Most counties limit SB 2 to either a $75 fee or a $225 fee, regardless of how much land is being sold. Dictos, however, insists his interpretation is the correct one.

Because of the inconsistent interpretation, county recorders have sought clarification from both the attorney general and the state controller. But although the law has been in effect for eight years, there has been none thus far.

Even the Board of Equalization recognized the ambiguity, saying “it will be up to each county recorder to determine the best course of action,” Milrod’s letter stated.

For that, Milrod said, the county should work with Dictos in getting clarity.

“I’d respectfully suggest that rather than initiating litigation, the county spend its resources to join with Mr. Dictos to work to secure an authoritative opinion from the attorney general, or a clarifying amendment from the legislature,” Milrod said in her letter.

Paying Dictos’ Attorney Fees

Who pays for Dictos’ attorney fees will become a sticking point. In a previous inquiry, the county told GV Wire that the government isn’t required to pay his attorney fees. The county, however, sued him in his official capacity.

Milrod says government code requires the county pay his legal fees.

“Please consider this letter notice of his request … that the county reimburse to him the full amount of his defense costs and attorney fees,” the letter states.