Bill Text: CA AB2697 | 2011-2012 | Regular Session | Chaptered
Bill Title: Housing Omnibus Act.
Spectrum: Unknown
Status: (Passed) 2012-09-29 - Chaptered by Secretary of State - Chapter 770, Statutes of 2012. [AB2697 Detail]
Download: California-2011-AB2697-Chaptered.html
BILL NUMBER: AB 2697 CHAPTERED
BILL TEXT
CHAPTER 770
FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2012
APPROVED BY GOVERNOR SEPTEMBER 29, 2012
PASSED THE SENATE AUGUST 30, 2012
PASSED THE ASSEMBLY AUGUST 31, 2012
AMENDED IN SENATE AUGUST 22, 2012
AMENDED IN SENATE JULY 5, 2012
AMENDED IN SENATE JUNE 19, 2012
AMENDED IN ASSEMBLY MAY 3, 2012
INTRODUCED BY Committee on Housing and Community Development
MARCH 21, 2012
An act to amend Sections 798.49, 896, 1363.05, and 1368 of the
Civil Code, and to amend Sections 18045.6 and 18942 of the Health and
Safety Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 2697, Committee on Housing and Community Development. Housing
Omnibus Act.
(1) The Mobilehome Residency law requires the local agency of any
city, including a charter city, county, or city and county that
administers an ordinance, rule, regulation, or initiative measure
that establishes a maximum amount that management of a mobilehome
park may charge a tenant for rent to permit the management to
separately charge a homeowner for certain fees, as specified.
Existing law exempts from this requirement, among other things, costs
that are imposed on management for a fine, forfeiture, penalty,
money damages, or fee assessed or awarded by a court of law against
the management for a violation of the Mobilehome Residency Law.
This bill would correct an erroneous cross-reference within this
provision.
(2) Existing law sets forth standards for determining liability in
an action seeking the recovery of damages arising out of, or related
to, deficiencies in residential construction, design, and related
issues, as specified, including standards governing the installation
of heating, if any.
This bill would revise those standards to require heating to be
installed so as to be capable of maintaining a room temperature of 70
degrees Fahrenheit at a point 3 feet above the floor in any living
space if the heating was installed pursuant to a building permit
application submitted prior to January 1, 2008, or capable of
maintaining a room temperature of 68 degrees Fahrenheit at a point 3
feet above the floor and 2 feet from the exterior walls in all
habitable rooms at the design temperature if the heating was
installed pursuant to a building permit application submitted on or
after January 1, 2008.
(3) The Common Interest Development Open Meeting Act, within the
Davis-Stirling Common Interest Development Act, prohibits a board of
directors from conducting a meeting via a series of electronic
transmissions, except in the case of an emergency meeting. Existing
law requires the board, individually or collectively, to consent in
writing to the conduct of an emergency meeting of the board via
electronic transmission, and authorizes that written consent to be
transmitted electronically.
This bill would make a technical, nonsubstantive change to this
provision.
(4) The Common Interest Development Open Meeting Act, within the
Davis-Stirling Common Interest Development Act, defines the term
"meeting" to include a teleconference in which a majority of the
members of the board, in different locations are connected by
electronic means, as specified, requires the notice of a
teleconference meeting to identify at least one physical location so
that members of the association may attend, and requires at least one
member of the board of directors to be present at that location.
This bill would instead require that at least one member of the
board of directors or a person designated by the board be present at
that location.
(5) The Davis-Stirling Common Interest Development Act requires
the owner of a separate interest, as soon as practicable before
transfer of title to the separate interest or execution of a real
property sales contract, to provide various items to the prospective
purchaser, including, among other things, a statement describing any
prohibition, and its applicability, contained in the governing
documents against the rental or leasing of any separate interest in
the common interest development to a renter, lessee, or tenant.
This bill would eliminate the requirement to describe the
applicability of the prohibition.
(6) The Manufactured Housing Act of 1980 requires the Department
of Housing and Community Development to administer occupational
licenses for dealers, as defined. The act authorizes a dealer to
display manufactured homes, mobilehomes, or commercial coaches at a
fair, exposition, or similar exhibit for no more than 30 days, and
defines "mobilehome fair or exposition" to mean a display of
manufactured homes, mobilehomes, or commercial coaches not limited to
one dealer and not in a mobilehome park.
This bill would remove the 30-day limit on the display of
manufactured homes, mobilehome, or commercial coaches at a fair,
exposition, or similar exhibit. The bill would also revise the
definition of "mobilehome fair or exposition" to mean a display of
manufactured homes, mobilehomes, or commercial coaches not in a
mobilehome park and for which the initial opportunity to display is
open to all dealers. The bill would also specify that a display does
not qualify as a business location or an established place of
business for the purposes of procuring or maintaining a dealer's
license.
(7) The California Building Standards Law provides for the
promulgation of building standards by state agencies by requiring all
state agencies that adopt or propose adoption of any building
standard to submit the building standard to the California Building
Standards Commission for approval or adoption. Existing law requires
the commission to publish, or cause to be published, editions of the
code in its entirety once every 3 years.
Existing law requires the commission to publish the text of a
specified provision within the area of the code concerning
single-family residential occupancies with a note specifying that the
regulations may be subject to local government modification.
This bill would correct an erroneous cross-reference within that
provision.
(8) This bill would incorporate additional changes in Section 1368
of the Civil Code proposed by AB 1838, that would become operative
only if AB 1838 and this bill are both chaptered and become effective
on or before January 1, 2013, and this bill is chaptered last.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 798.49 of the Civil Code is amended to read:
798.49. (a) Except as provided in subdivision (d), the local
agency of any city, including a charter city, county, or city and
county, which administers an ordinance, rule, regulation, or
initiative measure that establishes a maximum amount that management
may charge a tenant for rent shall permit the management to
separately charge a homeowner for any of the following:
(1) The amount of any fee, assessment or other charge first
imposed by a city, including a charter city, a county, a city and
county, the state, or the federal government on or after January 1,
1995, upon the space rented by the homeowner.
(2) The amount of any increase on or after January 1, 1995, in an
existing fee, assessment or other charge imposed by any governmental
entity upon the space rented by the homeowner.
(3) The amount of any fee, assessment or other charge upon the
space first imposed or increased on or after January 1, 1993,
pursuant to any state or locally mandated program relating to housing
contained in the Health and Safety Code.
(b) If management has charged the homeowner for a fee, assessment,
or other charge specified in subdivision (a) that was increased or
first imposed on or after January 1, 1993, and the fee, assessment,
or other charge is decreased or eliminated thereafter, the charge to
the homeowner shall be decreased or eliminated accordingly.
(c) The amount of the fee, assessment or other charges authorized
by subdivision (a) shall be separately stated on any billing to the
homeowner. Any change in the amount of the fee, assessment, or other
charges that are separately billed pursuant to subdivision (a) shall
be considered when determining any rental adjustment under the local
ordinance.
(d) This section shall not apply to any of the following:
(1) Those fees, assessments, or charges imposed pursuant to the
Mobilehome Parks Act (Part 2.1 (commencing with Section 18200) of
Division 13 of the Health and Safety Code), unless specifically
authorized by Section 18502 of the Health and Safety Code.
(2) Those costs that are imposed on management by a court pursuant
to Section 798.39.5.
(3) Any fee or other exaction imposed upon management for the
specific purpose of defraying the cost of administration of any
ordinance, rule, regulation, or initiative measure that establishes a
maximum amount that management may charge a tenant for rent.
(4) Any tax imposed upon the property by a city, including a
charter city, county, or city and county.
(e) Those fees and charges specified in subdivision (a) shall be
separately stated on any monthly or other periodic billing to the
homeowner. If the fee or charge has a limited duration or is
amortized for a specified period, the expiration date shall be stated
on the initial notice and each subsequent billing to the homeowner
while the fee or charge is billed to the homeowner.
SEC. 2. Section 896 of the Civil Code is amended to read:
896. In any action seeking recovery of damages arising out of, or
related to deficiencies in, the residential construction, design,
specifications, surveying, planning, supervision, testing, or
observation of construction, a builder, and to the extent set forth
in Chapter 4 (commencing with Section 910), a general contractor,
subcontractor, material supplier, individual product manufacturer, or
design professional, shall, except as specifically set forth in this
title, be liable for, and the claimant's claims or causes of action
shall be limited to violation of, the following standards, except as
specifically set forth in this title. This title applies to original
construction intended to be sold as an individual dwelling unit. As
to condominium conversions, this title does not apply to or does not
supersede any other statutory or common law.
(a) With respect to water issues:
(1) A door shall not allow unintended water to pass beyond,
around, or through the door or its designed or actual moisture
barriers, if any.
(2) Windows, patio doors, deck doors, and their systems shall not
allow water to pass beyond, around, or through the window, patio
door, or deck door or its designed or actual moisture barriers,
including, without limitation, internal barriers within the systems
themselves. For purposes of this paragraph, "systems" include,
without limitation, windows, window assemblies, framing, substrate,
flashings, and trim, if any.
(3) Windows, patio doors, deck doors, and their systems shall not
allow excessive condensation to enter the structure and cause damage
to another component. For purposes of this paragraph, "systems"
include, without limitation, windows, window assemblies, framing,
substrate, flashings, and trim, if any.
(4) Roofs, roofing systems, chimney caps, and ventilation
components shall not allow water to enter the structure or to pass
beyond, around, or through the designed or actual moisture barriers,
including, without limitation, internal barriers located within the
systems themselves. For purposes of this paragraph, "systems"
include, without limitation, framing, substrate, and sheathing, if
any.
(5) Decks, deck systems, balconies, balcony systems, exterior
stairs, and stair systems shall not allow water to pass into the
adjacent structure. For purposes of this paragraph, "systems"
include, without limitation, framing, substrate, flashing, and
sheathing, if any.
(6) Decks, deck systems, balconies, balcony systems, exterior
stairs, and stair systems shall not allow unintended water to pass
within the systems themselves and cause damage to the systems. For
purposes of this paragraph, "systems" include, without limitation,
framing, substrate, flashing, and sheathing, if any.
(7) Foundation systems and slabs shall not allow water or vapor to
enter into the structure so as to cause damage to another building
component.
(8) Foundation systems and slabs shall not allow water or vapor to
enter into the structure so as to limit the installation of the type
of flooring materials typically used for the particular application.
(9) Hardscape, including paths and patios, irrigation systems,
landscaping systems, and drainage systems, that are installed as part
of the original construction, shall not be installed in such a way
as to cause water or soil erosion to enter into or come in contact
with the structure so as to cause damage to another building
component.
(10) Stucco, exterior siding, exterior walls, including, without
limitation, exterior framing, and other exterior wall finishes and
fixtures and the systems of those components and fixtures, including,
but not limited to, pot shelves, horizontal surfaces, columns, and
plant-ons, shall be installed in such a way so as not to allow
unintended water to pass into the structure or to pass beyond,
around, or through the designed or actual moisture barriers of the
system, including any internal barriers located within the system
itself. For purposes of this paragraph, "systems" include, without
limitation, framing, substrate, flashings, trim, wall assemblies, and
internal wall cavities, if any.
(11) Stucco, exterior siding, and exterior walls shall not allow
excessive condensation to enter the structure and cause damage to
another component. For purposes of this paragraph, "systems" include,
without limitation, framing, substrate, flashings, trim, wall
assemblies, and internal wall cavities, if any.
(12) Retaining and site walls and their associated drainage
systems shall not allow unintended water to pass beyond, around, or
through its designed or actual moisture barriers including, without
limitation, any internal barriers, so as to cause damage. This
standard does not apply to those portions of any wall or drainage
system that are designed to have water flow beyond, around, or
through them.
(13) Retaining walls and site walls, and their associated drainage
systems, shall only allow water to flow beyond, around, or through
the areas designated by design.
(14) The lines and components of the plumbing system, sewer
system, and utility systems shall not leak.
(15) Plumbing lines, sewer lines, and utility lines shall not
corrode so as to impede the useful life of the systems.
(16) Sewer systems shall be installed in such a way as to allow
the designated amount of sewage to flow through the system.
(17) Showers, baths, and related waterproofing systems shall not
leak water into the interior of walls, flooring systems, or the
interior of other components.
(18) The waterproofing system behind or under ceramic tile and
tile countertops shall not allow water into the interior of walls,
flooring systems, or other components so as to cause damage. Ceramic
tile systems shall be designed and installed so as to deflect
intended water to the waterproofing system.
(b) With respect to structural issues:
(1) Foundations, load bearing components, and slabs, shall not
contain significant cracks or significant vertical displacement.
(2) Foundations, load bearing components, and slabs shall not
cause the structure, in whole or in part, to be structurally unsafe.
(3) Foundations, load bearing components, and slabs, and
underlying soils shall be constructed so as to materially comply with
the design criteria set by applicable government building codes,
regulations, and ordinances for chemical deterioration or corrosion
resistance in effect at the time of original construction.
(4) A structure shall be constructed so as to materially comply
with the design criteria for earthquake and wind load resistance, as
set forth in the applicable government building codes, regulations,
and ordinances in effect at the time of original construction.
(c) With respect to soil issues:
(1) Soils and engineered retaining walls shall not cause, in whole
or in part, damage to the structure built upon the soil or
engineered retaining wall.
(2) Soils and engineered retaining walls shall not cause, in whole
or in part, the structure to be structurally unsafe.
(3) Soils shall not cause, in whole or in part, the land upon
which no structure is built to become unusable for the purpose
represented at the time of original sale by the builder or for the
purpose for which that land is commonly used.
(d) With respect to fire protection issues:
(1) A structure shall be constructed so as to materially comply
with the design criteria of the applicable government building codes,
regulations, and ordinances for fire protection of the occupants in
effect at the time of the original construction.
(2) Fireplaces, chimneys, chimney structures, and chimney
termination caps shall be constructed and installed in such a way so
as not to cause an unreasonable risk of fire outside the fireplace
enclosure or chimney.
(3) Electrical and mechanical systems shall be constructed and
installed in such a way so as not to cause an unreasonable risk of
fire.
(e) With respect to plumbing and sewer issues:
Plumbing and sewer systems shall be installed to operate properly
and shall not materially impair the use of the structure by its
inhabitants. However, no action may be brought for a violation of
this subdivision more than four years after close of escrow.
(f) With respect to electrical system issues:
Electrical systems shall operate properly and shall not materially
impair the use of the structure by its inhabitants. However, no
action shall be brought pursuant to this subdivision more than four
years from close of escrow.
(g) With respect to issues regarding other areas of construction:
(1) Exterior pathways, driveways, hardscape, sidewalls, sidewalks,
and patios installed by the original builder shall not contain
cracks that display significant vertical displacement or that are
excessive. However, no action shall be brought upon a violation of
this paragraph more than four years from close of escrow.
(2) Stucco, exterior siding, and other exterior wall finishes and
fixtures, including, but not limited to, pot shelves, horizontal
surfaces, columns, and plant-ons, shall not contain significant
cracks or separations.
(3) (A) To the extent not otherwise covered by these standards,
manufactured products, including, but not limited to, windows, doors,
roofs, plumbing products and fixtures, fireplaces, electrical
fixtures, HVAC units, countertops, cabinets, paint, and appliances
shall be installed so as not to interfere with the products' useful
life, if any.
(B) For purposes of this paragraph, "useful life" means a
representation of how long a product is warranted or represented,
through its limited warranty or any written representations, to last
by its manufacturer, including recommended or required maintenance.
If there is no representation by a manufacturer, a builder shall
install manufactured products so as not to interfere with the product'
s utility.
(C) For purposes of this paragraph, "manufactured product" means a
product that is completely manufactured offsite.
(D) If no useful life representation is made, or if the
representation is less than one year, the period shall be no less
than one year. If a manufactured product is damaged as a result of a
violation of these standards, damage to the product is a recoverable
element of damages. This subparagraph does not limit recovery if
there has been damage to another building component caused by a
manufactured product during the manufactured product's useful life.
(E) This title does not apply in any action seeking recovery
solely for a defect in a manufactured product located within or
adjacent to a structure.
(4) Heating shall be installed so as to be capable of maintaining
a room temperature of 70 degrees Fahrenheit at a point three feet
above the floor in any living space if the heating was installed
pursuant to a building permit application submitted prior to January
1, 2008, or capable of maintaining a room temperature of 68 degrees
Fahrenheit at a point three feet above the floor and two feet from
exterior walls in all habitable rooms at the design temperature if
the heating was installed pursuant to a building permit application
submitted on or before January 1, 2008.
(5) Living space air-conditioning, if any, shall be provided in a
manner consistent with the size and efficiency design criteria
specified in Title 24 of the California Code of Regulations or its
successor.
(6) Attached structures shall be constructed to comply with
interunit noise transmission standards set by the applicable
government building codes, ordinances, or regulations in effect at
the time of the original construction. If there is no applicable
code, ordinance, or regulation, this paragraph does not apply.
However, no action shall be brought pursuant to this paragraph more
than one year from the original occupancy of the adjacent unit.
(7) Irrigation systems and drainage shall operate properly so as
not to damage landscaping or other external improvements. However, no
action shall be brought pursuant to this paragraph more than one
year from close of escrow.
(8) Untreated wood posts shall not be installed in contact with
soil so as to cause unreasonable decay to the wood based upon the
finish grade at the time of original construction. However, no action
shall be brought pursuant to this paragraph more than two years from
close of escrow.
(9) Untreated steel fences and adjacent components shall be
installed so as to prevent unreasonable corrosion. However, no action
shall be brought pursuant to this paragraph more than four years
from close of escrow.
(10) Paint and stains shall be applied in such a manner so as not
to cause deterioration of the building surfaces for the length of
time specified by the paint or stain manufacturers' representations,
if any. However, no action shall be brought pursuant to this
paragraph more than five years from close of escrow.
(11) Roofing materials shall be installed so as to avoid materials
falling from the roof.
(12) The landscaping systems shall be installed in such a manner
so as to survive for not less than one year. However, no action shall
be brought pursuant to this paragraph more than two years from close
of escrow.
(13) Ceramic tile and tile backing shall be installed in such a
manner that the tile does not detach.
(14) Dryer ducts shall be installed and terminated pursuant to
manufacturer installation requirements. However, no action shall be
brought pursuant to this paragraph more than two years from close of
escrow.
(15) Structures shall be constructed in such a manner so as not to
impair the occupants' safety because they contain public health
hazards as determined by a duly authorized public health official,
health agency, or governmental entity having jurisdiction. This
paragraph does not limit recovery for any damages caused by a
violation of any other paragraph of this section on the grounds that
the damages do not constitute a health hazard.
SEC. 3. Section 1363.05 of the Civil Code is amended to read:
1363.05. (a) This section shall be known and may be cited as the
Common Interest Development Open Meeting Act.
(b) Any member of the association may attend meetings of the board
of directors of the association, except when the board adjourns to,
or meets solely in, executive session to consider litigation, matters
relating to the formation of contracts with third parties, member
discipline, personnel matters, or to meet with a member, upon the
member's request, regarding the member's payment of assessments, as
specified in Section 1367 or 1367.1. The board of directors of the
association shall meet in executive session, if requested by a member
who may be subject to a fine, penalty, or other form of discipline,
and the member shall be entitled to attend the executive session. As
specified in paragraph (2) of subdivision (k), a member of the
association shall be entitled to attend a teleconference meeting or
the portion of a teleconference meeting that is open to members, and
that meeting or portion of the meeting shall be audible to the
members in a location specified in the notice of the meeting.
(c) Any matter discussed in executive session shall be generally
noted in the minutes of the immediately following meeting that is
open to the entire membership.
(d) The minutes, minutes proposed for adoption that are marked to
indicate draft status, or a summary of the minutes, of any meeting of
the board of directors of an association, other than an executive
session, shall be available to members within 30 days of the meeting.
The minutes, proposed minutes, or summary minutes shall be
distributed to any member of the association upon request and upon
reimbursement of the association's costs for making that
distribution.
(e) Members of the association shall be notified in writing at the
time that the pro forma budget required in Section 1365 is
distributed, or at the time of any general mailing to the entire
membership of the association, of their right to have copies of the
minutes of meetings of the board of directors, and how and where
those minutes may be obtained.
(f) Unless the bylaws provide for a longer period of notice,
members shall be given notice of the time and place of a meeting as
defined in subdivision (k), except for an emergency meeting or a
meeting that will be held solely in executive session, at least four
days prior to the meeting. Except for an emergency meeting, members
shall be given notice of the time and place of a meeting that will be
held solely in executive session at least two days prior to the
meeting. Notice shall be given by posting the notice in a prominent
place or places within the common area and by mail to any owner who
had requested notification of board meetings by mail, at the address
requested by the owner. Notice may also be given by mail, by delivery
of the notice to each unit in the development, by newsletter or
similar means of communication, or, with the consent of the member,
by electronic means. The notice shall contain the agenda for the
meeting.
(g) An emergency meeting of the board may be called by the
president of the association, or by any two members of the governing
body other than the president, if there are circumstances that could
not have been reasonably foreseen which require immediate attention
and possible action by the board, and which of necessity make it
impracticable to provide notice as required by this section.
(h) The board of directors of the association shall permit any
member of the association to speak at any meeting of the association
or the board of directors, except for meetings of the board held in
executive session. A reasonable time limit for all members of the
association to speak to the board of directors or before a meeting of
the association shall be established by the board of directors.
(i) (1) Except as described in paragraphs (2) to (4), inclusive,
the board of directors of the association may not discuss or take
action on any item at a nonemergency meeting unless the item was
placed on the agenda included in the notice that was posted and
distributed pursuant to subdivision (f). This subdivision does not
prohibit a resident who is not a member of the board from speaking on
issues not on the agenda.
(2) Notwithstanding paragraph (1), a member of the board of
directors, a managing agent or other agent of the board of directors,
or a member of the staff of the board of directors, may do any of
the following:
(A) Briefly respond to statements made or questions posed by a
person speaking at a meeting as described in subdivision (h).
(B) Ask a question for clarification, make a brief announcement,
or make a brief report on his or her own activities, whether in
response to questions posed by a member of the association or based
upon his or her own initiative.
(3) Notwithstanding paragraph (1), the board of directors or a
member of the board of directors, subject to rules or procedures of
the board of directors, may do any of the following:
(A) Provide a reference to, or provide other resources for factual
information to, its managing agent or other agents or staff.
(B) Request its managing agent or other agents or staff to report
back to the board of directors at a subsequent meeting concerning any
matter, or take action to direct its managing agent or other agents
or staff to place a matter of business on a future agenda.
(C) Direct its managing agent or other agents or staff to perform
administrative tasks that are necessary to carry out this
subdivision.
(4) (A) Notwithstanding paragraph (1), the board of directors may
take action on any item of business not appearing on the agenda
posted and distributed pursuant to subdivision (f) under any of the
following conditions:
(i) Upon a determination made by a majority of the board of
directors present at the meeting that an emergency situation exists.
An emergency situation exists if there are circumstances that could
not have been reasonably foreseen by the board, that require
immediate attention and possible action by the board, and that, of
necessity, make it impracticable to provide notice.
(ii) Upon a determination made by the board by a vote of
two-thirds of the members present at the meeting, or, if less than
two-thirds of total membership of the board is present at the
meeting, by a unanimous vote of the members present, that there is a
need to take immediate action and that the need for action came to
the attention of the board after the agenda was posted and
distributed pursuant to subdivision (f).
(iii) The item appeared on an agenda that was posted and
distributed pursuant to subdivision (f) for a prior meeting of the
board of directors that occurred not more than 30 calendar days
before the date that action is taken on the item and, at the prior
meeting, action on the item was continued to the meeting at which the
action is taken.
(B) Before discussing any item pursuant to this paragraph, the
board of directors shall openly identify the item to the members in
attendance at the meeting.
(j) (1) The board of directors shall not take action on any item
of business outside of a meeting.
(2) (A) Notwithstanding Section 7211 of the Corporations Code, the
board of directors shall not conduct a meeting via a series of
electronic transmissions, including, but not limited to, electronic
mail, except as specified in subparagraph (B).
(B) Electronic transmissions may be used as a method of conducting
an emergency meeting if all members of the board, individually or
collectively, consent in writing to that action, and if the written
consent or consents are filed with the minutes of the meeting of the
board. These written consents may be transmitted electronically.
(k) As used in this section:
(1) "Item of business" means any action within the authority of
the board, except those actions that the board has validly delegated
to any other person or persons, managing agent, officer of the
association, or committee of the board comprising less than a
majority of the directors.
(2) "Meeting" means either of the following:
(A) A congregation of a majority of the members of the board at
the same time and place to hear, discuss, or deliberate upon any item
of business that is within the authority of the board.
(B) A teleconference in which a majority of the members of the
board, in different locations, are connected by electronic means,
through audio or video or both. A teleconference meeting shall be
conducted in a manner that protects the rights of members of the
association and otherwise complies with the requirements of this
title. Except for a meeting that will be held solely in executive
session, the notice of the teleconference meeting shall identify at
least one physical location so that members of the association may
attend and at least one member of the board of directors or a person
designated by the board shall be present at that location.
Participation by board members in a teleconference meeting
constitutes presence at that meeting as long as all board members
participating in the meeting are able to hear one another and members
of the association speaking on matters before the board.
SEC. 4. Section 1368 of the Civil Code is amended to read:
1368. (a) The owner of a separate interest, other than an owner
subject to the requirements of Section 11018.6 of the Business and
Professions Code, shall, as soon as practicable before transfer of
title to the separate interest or execution of a real property sales
contract therefor, as defined in Section 2985, provide the following
to the prospective purchaser:
(1) A copy of the governing documents of the common
interest development, including any operating rules, and including a
copy of the association's articles of incorporation, or, if not
incorporated, a statement in writing from an authorized
representative of the association that the association is not
incorporated.
(2) If there is a restriction in the governing documents limiting
the occupancy, residency, or use of a separate interest on the basis
of age in a manner different from that provided in Section 51.3, a
statement that the restriction is only enforceable to the extent
permitted by Section 51.3 and a statement specifying the applicable
provisions of Section 51.3.
(3) A copy of the most recent documents distributed pursuant to
Section 1365.
(4) A true statement in writing obtained from an authorized
representative of the association as to the amount of the association'
s current regular and special assessments and fees, any assessments
levied upon the owner's interest in the common interest development
that are unpaid on the date of the statement, and any monetary fines
or penalties levied upon the owner's interest and unpaid on the date
of the statement. The statement obtained from an authorized
representative shall also include true information on late charges,
interest, and costs of collection which, as of the date of the
statement, are or may be made a lien upon the owner's interest in a
common interest development pursuant to Section 1367 or 1367.1.
(5) A copy or a summary of any notice previously sent to the owner
pursuant to subdivision (h) of Section 1363 that sets forth any
alleged violation of the governing documents that remains unresolved
at the time of the request. The notice shall not be deemed a waiver
of the association's right to enforce the governing documents against
the owner or the prospective purchaser of the separate interest with
respect to any violation. This paragraph shall not be construed to
require an association to inspect an owner's separate interest.
(6) A copy of the initial list of defects provided to each member
of the association pursuant to Section 1375, unless the association
and the builder subsequently enter into a settlement agreement or
otherwise resolve the matter and the association complies with
Section 1375.1. Disclosure of the initial list of defects pursuant to
this paragraph does not waive any privilege attached to the
document. The initial list of defects shall also include a statement
that a final determination as to whether the list of defects is
accurate and complete has not been made.
(7) A copy of the latest information provided for in Section
1375.1.
(8) Any change in the association's current regular and special
assessments and fees which have been approved by the association's
board of directors, but have not become due and payable as of the
date disclosure is provided pursuant to this subdivision.
(9) If there is a provision in the governing documents that
prohibits the rental or leasing of any of the separate interests in
the common interest development to a renter, lessee, or tenant, a
statement describing the prohibition.
(10) If requested by the prospective purchaser, a copy of the
minutes of the meetings, excluding meetings held in executive
session, of the association's board of directors, conducted over the
previous 12 months, that were approved by the association's board of
directors.
(b) (1) Upon written request, the association shall, within 10
days of the mailing or delivery of the request, provide the owner of
a separate interest, or any other recipient authorized by the owner,
with a copy of the requested documents specified in paragraphs (1) to
(10), inclusive, of subdivision (a). Upon receipt of a written
request, the association shall provide, on the form described in
Section 1368.2, a written or electronic estimate of the fees that
will be assessed for providing the requested documents. The documents
required to be made available pursuant to this section may be
maintained in electronic form, and may be posted on the association's
Internet Web site. Requesting parties shall have the option of
receiving the documents by electronic transmission if the association
maintains the documents in electronic form. The association may
collect a reasonable fee based upon the association's actual cost for
the procurement, preparation, reproduction, and delivery of the
documents requested pursuant to the provisions of this section.
(2) No additional fees may be charged by the association for the
electronic delivery of the documents requested.
(3) Fees for any documents required by this section shall be
distinguished from other fees, fines, or assessments billed as part
of the transfer or sales transaction. Delivery of the documents
required by this section shall not be withheld for any reason nor
subject to any condition except the payment of the fee allowed
pursuant to paragraph (1).
(4) An association may contract with any person or entity to
facilitate compliance with the requirements of this subdivision on
behalf of the association.
(5) The association shall also provide a recipient authorized by
the owner of a separate interest with a copy of the completed form
specified in Section 1368.2 at the time the required documents are
delivered.
(c) (1) Except as provided in paragraph (2), neither an
association nor a community service organization or similar entity
may impose or collect any assessment, penalty, or fee in connection
with a transfer of title or any other interest except for the
following:
(A) An amount not to exceed the association's actual costs to
change its records.
(B) An amount authorized by subdivision (b).
(2) The prohibition in paragraph (1) does not apply to a community
service organization or similar entity, or to a nonprofit entity
that provides services to a common interest development under a
declaration of trust, that is described in subparagraph (A) or (B):
(A) The community service organization or similar entity satisfies
both of the following requirements:
(i) The community service organization or similar entity was
established prior to February 20, 2003.
(ii) The community service organization or similar entity exists
and operates, in whole or in part, to fund or perform environmental
mitigation or to restore or maintain wetlands or native habitat, as
required by the state or local government as an express written
condition of development.
(B) The community service organization or similar entity, or a
nonprofit entity that provides services to a common interest
development under a declaration of trust, satisfies all of the
following requirements:
(i) The organization or entity is not an organization or entity
described in subparagraph (A).
(ii) The organization or entity was established and received a
transfer fee prior to January 1, 2004.
(iii) On and after January 1, 2006, the organization or entity
offers a purchaser the following payment options for the fee or
charge it collects at time of transfer:
(I) Paying the fee or charge at the time of transfer.
(II) Paying the fee or charge pursuant to an installment payment
plan for a period of not less than seven years. If the purchaser
elects to pay the fee or charge in installment payments, the
organization or entity may also collect additional amounts that do
not exceed the actual costs for billing and financing on the amount
owed. If the purchaser sells the separate interest before the end of
the installment payment plan period, he or she shall pay the
remaining balance prior to transfer.
(3) For the purposes of this subdivision, a "community service
organization or similar entity" means a nonprofit entity, other than
an association, that is organized to provide services to residents of
the common interest development or to the public in addition to the
residents, to the extent community common areas or facilities are
available to the public. A "community service organization or similar
entity" does not include an entity that has been organized solely to
raise moneys and contribute to other nonprofit organizations that
are qualified as tax exempt under Section 501(c)(3) of the Internal
Revenue Code and that provide housing or housing assistance.
(d) Any person or entity who willfully violates this section is
liable to the purchaser of a separate interest that is subject to
this section for actual damages occasioned thereby and, in addition,
shall pay a civil penalty in an amount not to exceed five hundred
dollars ($500). In an action to enforce this liability, the
prevailing party shall be awarded reasonable attorneys' fees.
(e) Nothing in this section affects the validity of title to real
property transferred in violation of this section.
(f) In addition to the requirements of this section, an owner
transferring title to a separate interest shall comply with
applicable requirements of Sections 1133 and 1134.
(g) For the purposes of this section, a person who acts as a
community association manager is an agent, as defined in Section
2297, of the association.
SEC. 4.5. Section 1368 of the Civil Code is amended to read:
1368. (a) The owner of a separate interest, other than an owner
subject to the requirements of Section 11018.6 of the Business and
Professions Code, shall, as soon as practicable before transfer of
title to the separate interest or execution of a real property sales
contract therefor, as defined in Section 2985, provide the following
to the prospective purchaser:
(1) A copy of the governing documents of the common interest
development, including any operating rules, and including a copy of
the association's articles of incorporation, or, if not incorporated,
a statement in writing from an authorized representative of the
association that the association is not incorporated.
(2) If there is a restriction in the governing documents limiting
the occupancy, residency, or use of a separate interest on the basis
of age in a manner different from that provided in Section 51.3, a
statement that the restriction is only enforceable to the extent
permitted by Section 51.3 and a statement specifying the applicable
provisions of Section 51.3.
(3) A copy of the most recent documents distributed pursuant to
Section 1365.
(4) A true statement in writing obtained from an authorized
representative of the association as to the amount of the association'
s current regular and special assessments and fees, any assessments
levied upon the owner's interest in the common interest development
that are unpaid on the date of the statement, and any monetary fines
or penalties levied upon the owner's interest and unpaid on the date
of the statement. The statement obtained from an authorized
representative shall also include true information on late charges,
interest, and costs of collection which, as of the date of the
statement, are or may be made a lien upon the owner's interest in a
common interest development pursuant to Section 1367 or 1367.1.
(5) A copy or a summary of any notice previously sent to the owner
pursuant to subdivision (h) of Section 1363 that sets forth any
alleged violation of the governing documents that remains unresolved
at the time of the request. The notice shall not be deemed a waiver
of the association's right to enforce the governing documents against
the owner or the prospective purchaser of the separate interest with
respect to any violation. This paragraph shall not be construed to
require an association to inspect an owner's separate interest.
(6) A copy of the initial list of defects provided to each member
of the association pursuant to Section 1375, unless the association
and the builder subsequently enter into a settlement agreement or
otherwise resolve the matter and the association complies with
Section 1375.1. Disclosure of the initial list of defects pursuant to
this paragraph does not waive any privilege attached to the
document. The initial list of defects shall also include a statement
that a final determination as to whether the list of defects is
accurate and complete has not been made.
(7) A copy of the latest information provided for in Section
1375.1.
(8) Any change in the association's current regular and special
assessments and fees which have been approved by the association's
board of directors, but have not become due and payable as of the
date disclosure is provided pursuant to this subdivision.
(9) If there is a provision in the governing documents that
prohibits the rental or leasing of any of the separate interests in
the common interest development to a renter, lessee, or tenant, a
statement describing the prohibition.
(10) If requested by the prospective purchaser, a copy of the
minutes of the meetings, excluding meetings held in executive
session, of the association's board of directors, conducted over the
previous 12 months, that were approved by the association's board of
directors.
(b) (1) Upon written request, the association shall, within 10
days of the mailing or delivery of the request, provide the owner of
a separate interest, or any other recipient authorized by the owner,
with a copy of the requested documents specified in paragraphs (1) to
(10), inclusive, of subdivision (a). Upon receipt of a written
request, the association shall provide, on the form described in
Section 1368.2, a written or electronic estimate of the fees that
will be assessed for providing the requested documents. The documents
required to be made available pursuant to this section may be
maintained in electronic form, and may be posted on the association's
Internet Web site. Requesting parties shall have the option of
receiving the documents by electronic transmission if the association
maintains the documents in electronic form. The association may
collect a reasonable fee based upon the association's actual cost for
the procurement, preparation, reproduction, and delivery of the
documents requested pursuant to the provisions of this section.
(2) No additional fees may be charged by the association for the
electronic delivery of the documents requested.
(3) (A) A cancellation fee for documents specified in subdivision
(a) shall not be collected if either of the following applies:
(i) The request was canceled in writing by the same party that
placed the order and work had not yet been performed on the order.
(ii) The request was canceled in writing and any work that had
been performed on the order was compensated.
(B) The association shall refund all fees collected pursuant to
paragraph (1) if the request was canceled in writing and work had not
yet been performed on the order.
(C) If the request was canceled in writing, the association shall
refund the share of fees collected pursuant to paragraph (1) that
represents the portion of the work not performed on the order.
(4) Fees for any documents required by this section shall be
distinguished from other fees, fines, or assessments billed as part
of the transfer or sales transaction. Delivery of the documents
required by this section shall not be withheld for any reason nor
subject to any condition except the payment of the fee allowed
pursuant to paragraph (1).
(5) An association may contract with any person or entity to
facilitate compliance with the requirements of this subdivision on
behalf of the association.
(6) The association shall also provide a recipient authorized by
the owner of a separate interest with a copy of the completed form
specified in Section 1368.2 at the time the required documents are
delivered.
(c) (1) Except as provided in paragraph (2), neither an
association nor a community service organization or similar entity
may impose or collect any assessment, penalty, or fee in connection
with a transfer of title or any other interest except for the
following:
(A) An amount not to exceed the association's actual costs to
change its records.
(B) An amount authorized by subdivision (b).
(2) The prohibition in paragraph (1) does not apply to a community
service organization or similar entity, or to a nonprofit entity
that provides services to a common interest development under a
declaration of trust, that is described in subparagraph (A) or (B):
(A) The community service organization or similar entity satisfies
both of the following requirements:
(i) The community service organization or similar entity was
established prior to February 20, 2003.
(ii) The community service organization or similar entity exists
and operates, in whole or in part, to fund or perform environmental
mitigation or to restore or maintain wetlands or native habitat, as
required by the state or local government as an express written
condition of development.
(B) The community service organization or similar entity, or a
nonprofit entity that provides services to a common interest
development under a declaration of trust, satisfies all of the
following requirements:
(i) The organization or entity is not an organization or entity
described in subparagraph (A).
(ii) The organization or entity was established and received a
transfer fee prior to January 1, 2004.
(iii) On and after January 1, 2006, the organization or entity
offers a purchaser the following payment options for the fee or
charge it collects at time of transfer:
(I) Paying the fee or charge at the time of transfer.
(II) Paying the fee or charge pursuant to an installment payment
plan for a period of not less than seven years. If the purchaser
elects to pay the fee or charge in installment payments, the
organization or entity may also collect additional amounts that do
not exceed the actual costs for billing and financing on the amount
owed. If the purchaser sells the separate interest before the end of
the installment payment plan period, he or she shall pay the
remaining balance prior to transfer.
(3) For the purposes of this subdivision, a "community service
organization or similar entity" means a nonprofit entity, other than
an association, that is organized to provide services to residents of
the common interest development or to the public in addition to the
residents, to the extent community common areas or facilities are
available to the public. A "community service organization or similar
entity" does not include an entity that has been organized solely to
raise moneys and contribute to other nonprofit organizations that
are qualified as tax exempt under Section 501(c)(3) of the Internal
Revenue Code and that provide housing or housing assistance.
(d) Any person or entity who willfully violates this section is
liable to the purchaser of a separate interest that is subject to
this section for actual damages occasioned thereby and, in addition,
shall pay a civil penalty in an amount not to exceed five hundred
dollars ($500). In an action to enforce this liability, the
prevailing party shall be awarded reasonable attorneys' fees.
(e) Nothing in this section affects the validity of title to real
property transferred in violation of this section.
(f) In addition to the requirements of this section, an owner
transferring title to a separate interest shall comply with
applicable requirements of Sections 1133 and 1134.
(g) For the purposes of this section, a person who acts as a
community association manager is an agent, as defined in Section
2297, of the association.
SEC. 5. Section 18045.6 of the Health and Safety Code is amended
to read:
18045.6. (a) (1) If the manufacturer, distributor, or dealer
changes the site or location of his or her established place of
business, the manufacturer, distributor, or dealer shall immediately,
upon making the change, so notify the department. If a manufacturer,
distributor, or dealer for any reason whatsoever, ceases to be in
possession of an established place of business from and on which he
or she conducts the business for which the manufacturer, distributor,
or dealer is licensed, he or she shall immediately notify the
department and, upon demand by the department, shall deliver to the
department the manufacturer's, distributor's, or dealer's license and
all relevant records in his or her possession.
(2) The department may place a manufacturer, distributor, or
dealer license on an inactive status upon application of the
licensee. An inactive license shall remain valid for six months or
for the remaining term of the original license, whichever is less.
(b) If the dealer changes to, or adds, another franchise for the
sale of new manufactured homes, mobilehomes, or commercial coaches,
or cancels, or, for any cause whatever, otherwise loses a franchise
for the sale of new manufactured homes, mobilehomes, or commercial
coaches, he or she shall immediately so notify the department.
(c) A dealer's established place of business shall have posted in
a place conspicuous to the public the license issued by the
department to the dealer and to each salesperson employed by the
dealer.
(d) (1) Notwithstanding Section 18050 and this section, a dealer
may display manufactured homes, mobilehomes, or commercial coaches
at a fair, exposition, or similar exhibit. As used in this section,
"mobilehome fair or exposition" means a display of manufactured
homes, mobilehomes, or commercial coaches not in a mobilehome park
and for which the initial opportunity to display is open to all
dealers. The display shall not qualify as a business location or an
established place of business for the purposes of procuring or
maintaining a dealer's license.
(2) New manufactured homes or mobilehomes, installed pursuant to
Section 18613, may also be displayed and sold within a mobilehome
park or mobilehome subdivision by dealers. A display home may be used
and equipped only for the sale of the displayed home and shall not
be used as an established place of business, unless licensed as an
established place of business.
(3) Dealers and salespersons may negotiate listing agreements for
the sale of a used manufactured home or mobilehome which has been
titled by the department, and may negotiate and execute offers to
purchase and purchase documents for the sale of a new or used
manufactured home or mobilehome other than at the established place
of business.
(e) All manufactured homes, mobilehomes, or commercial coaches
displayed pursuant to subdivision (d) shall be identified by a sign
or device providing information relating to the dealer's name and the
location and address of the dealer's established place of business
and any other information that is required by the department.
(f) The requirements for an office specified in subdivision (b)
of Section 18045.5 shall not apply to a display location authorized
by subdivision (d), unless licensed as an established place of
business.
SEC. 6. Section 18942 of the Health and Safety Code is amended to
read:
18942. (a) The commission shall publish, or cause to be
published, editions of the code in its entirety once in every three
years. In the intervening period the commission shall publish, or
cause to be published, supplements as necessary. For emergency
building standards defined in subdivision (a) of Section 18913, an
emergency building standards supplement shall be published whenever
the commission determines it is necessary.
(b) The commission shall publish the text of Article 2.5
(commencing with Section 115920) of Chapter 5 of Part 10 of Division
104, within the requirements for single-family residential
occupancies contained in Part 2.5 of Title 24 of the California Code
of Regulations, with the following note:
"NOTE: These regulations are subject to local government
modification. You should verify the applicable local government
requirements at the time of application for a building permit."
(c) The commission shall publish the text of Section 116064.2
within Part 2 of Title 24 of the California Code of Regulations.
(d) The commission may publish, stockpile, and sell at a
reasonable price the code and materials incorporated therein by
reference if it deems the latter is insufficiently available to the
public, or unavailable at a reasonable price. Each state department
concerned and each city, county, or city and county shall have an
up-to-date copy of the code available for public inspection.
(e) (1) Each city, county, and city and county, including charter
cities, shall obtain and maintain with all revisions on a current
basis, at least one copy of the building standards and other state
regulations relating to buildings published in Titles 8, 19, 20, 24,
and 25 of the California Code of Regulations. These codes shall be
maintained in the office of the building official responsible for the
administration and enforcement of this part.
(2) This subdivision shall not apply to a city or county that
contracts for the administration and enforcement of the provisions of
this part with another local government agency that complies with
this section.
SEC. 7. Section 4.5 of this bill incorporates amendments to
Section 1368 of the Civil Code proposed by both this bill and
Assembly Bill 1838. It shall become operative only if (1) both bills
are enacted and become effective on or before January 1, 2013, (2)
each bill amends Section 1368 of the Civil Code, and (3) this bill is
enacted after Assembly Bill 1838, in which case Section 4 of this
bill shall not become operative.
