Bill Text: CA SB261 | 2017-2018 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Common interest developments: governance.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Passed) 2018-09-27 - Chaptered by Secretary of State. Chapter 836, Statutes of 2018. [SB261 Detail]

Download: California-2017-SB261-Amended.html

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Amended  IN  Assembly  August 23, 2018

Amended  IN  Senate  April 04, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill

No. 261

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Introduced by Senator Monning Roth

February 08, 2017

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An act to add Section 45.5 to the Insurance Code, relating to insurance. amend Sections 4040 and 4360 of the Civil Code, relating to common interest developments.

LEGISLATIVE COUNSEL'S DIGEST

SB 261, as amended, Monning Roth. Insurance: reports: electronic submission. Common interest developments: governance.

Existing law, the Davis-Stirling Common Interest Development Act, governs the management and operation of common interest by an association. Under existing law, an association that is required to deliver a document by “individual delivery” or “individual notice” is authorized to deliver the document by email, facsimile, or other electronic means, if the recipient has consented in writing, unless the consent is revoked in writing.

This bill would authorize the recipient to consent to that delivery and revoke that consent by email.

Existing law requires the board of an association to provide general notice of a proposed rule change at least 30 days before making the rule change.

This bill would, instead, require at least 28 days general notice before making the rule change.

Existing law provides for the regulation of insurers by the Department of Insurance. Existing law directs the Insurance Commissioner to enforce the execution of laws regulating the business of insurance. The existing Insurance Code requires various entities to submit certain reports to specified committees of the Legislature. Existing law requires that any report that is required or requested by law to be submitted by a state or local agency to the Members of the Legislature, generally, be submitted as an electronic or printed copy to the Legislative Counsel.

This bill would authorize certain reports required to be submitted to a committee of the Legislature pursuant to the Insurance Code to be submitted electronically, as specified. The bill would also require that a report that is required under the Insurance Code to be submitted to a committee of the Legislature also be submitted as an electronic or printed copy to the Legislative Counsel.

Digest Key

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

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Bill Text

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

SECTION 1.

 Section 4040 of the Civil Code is amended to read:

4040.

 (a) If a provision of this act requires that an association deliver a document by “individual delivery” or “individual notice,” the document shall be delivered by one of the following methods:

(1) First-class mail, postage prepaid, registered or certified mail, express mail, or overnight delivery by an express service carrier. The document shall be addressed to the recipient at the address last shown on the books of the association.

(2) E-mail, Email, facsimile, or other electronic means, if the recipient has consented, in writing, writing or by email, to that method of delivery. The consent may be revoked, in writing, writing or by email, by the recipient.

(b) Upon receipt of a request by a member, pursuant to Section 5260, identifying a secondary address for delivery of notices of the following types, the association shall deliver an additional copy of those notices to the secondary address identified in the request:

(1) The documents to be delivered to the member pursuant to Article 7 (commencing with Section 5300) of Chapter 6.

(2) The documents to be delivered to the member pursuant to Article 2 (commencing with Section 5650) of Chapter 8, and Section 5710.

(c) For the purposes of this section, an unrecorded provision of the governing documents providing for a particular method of delivery does not constitute agreement by a member to that method of delivery.

SEC. 2.

 Section 4360 of the Civil Code is amended to read:

4360.

 (a) The board shall provide general notice pursuant to Section 4045 of a proposed rule change at least 30 28 days before making the rule change. The notice shall include the text of the proposed rule change and a description of the purpose and effect of the proposed rule change. Notice is not required under this subdivision if the board determines that an immediate rule change is necessary to address an imminent threat to public health or safety or imminent risk of substantial economic loss to the association.

(b) A decision on a proposed rule change shall be made at a board meeting, after consideration of any comments made by association members.

(c) As soon as possible after making a rule change, but not more than 15 days after making the rule change, the board shall deliver general notice pursuant to Section 4045 of the rule change. If the rule change was an emergency rule change made under subdivision (d), the notice shall include the text of the rule change, a description of the purpose and effect of the rule change, and the date that the rule change expires.

(d) If the board determines that an immediate rule change is required to address an imminent threat to public health or safety, or an imminent risk of substantial economic loss to the association, it may make an emergency rule change, and no notice is required, as specified in subdivision (a). An emergency rule change is effective for 120 days, unless the rule change provides for a shorter effective period. A rule change made under this subdivision may not be readopted under this subdivision.

SECTION 1.Section 45.5 is added to the Insurance Code, to read:

45.5.

(a)For purposes of this section, “report” includes any study or audit.

(b)A report required under this code to be submitted to a committee of the Legislature shall also be submitted as an electronic or printed copy to the Legislative Counsel.

(c)Reports required under Sections 1063, 1872.95, 12922, 12962, and 13902 may be submitted electronically to a committee of the Legislature. This subdivision is not intended to prohibit the submission of a report electronically if authorized by any other law or the consent of any legislative committee.

(d)(1)A report under this code that is submitted electronically to a committee of the Legislature may be submitted in any of the following ways:

(A)Providing the committee with a digital copy of the report delivered by electronic means to a person or account designated to receive reports.

(B)Providing the committee with a digital copy of the report stored on permanent media delivered by first-class mail.

(C)Placing the report on the reporting entity’s Internet Web site so that it is publicly available for a period of no less than three years. If a report is submitted electronically in accordance with this subparagraph, the committee shall be provided notice that the report is available that includes specific instructions on how to access the report and how to request a hard copy. The notice shall be delivered by first-class mail or by electronic means and addressed to the person or account designated to receive reports.

(2)Reports and notices submitted electronically shall be provided in a standard format accessible by software or other means that is available without charge or obligation and is acceptable to the committee.