Bill Text: CA SB752 | 2013-2014 | Regular Session | Chaptered
Bill Title: Commercial and industrial common interest developments.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2013-10-05 - Chaptered by Secretary of State. Chapter 605, Statutes of 2013. [SB752 Detail]
Download: California-2013-SB752-Chaptered.html
BILL NUMBER: SB 752 CHAPTERED
BILL TEXT
CHAPTER 605
FILED WITH SECRETARY OF STATE OCTOBER 5, 2013
APPROVED BY GOVERNOR OCTOBER 5, 2013
PASSED THE SENATE SEPTEMBER 12, 2013
PASSED THE ASSEMBLY SEPTEMBER 6, 2013
AMENDED IN ASSEMBLY SEPTEMBER 3, 2013
AMENDED IN ASSEMBLY AUGUST 7, 2013
AMENDED IN ASSEMBLY JUNE 24, 2013
AMENDED IN SENATE APRIL 18, 2013
INTRODUCED BY Senator Roth
FEBRUARY 22, 2013
An act to amend Sections 10153.2, 11003, 11003.2, 11004.5,
11010.3, 23426.5, and 23428.20 of the Business and Professions Code,
to amend Sections 714, 714.1, 782, 782.5, 783, 783.1, 1098, 1133,
1633.3, 2924b, 2955.1, 4202, and 4280 of, to add Part 5.3 (commencing
with Section 6500) to Division 4 of, and to repeal Section 6870 of,
the Civil Code, to amend Sections 86 and 116.540 of the Code of Civil
Procedure, to amend Sections 12191, 12956.1, 12956.2, 53341.5,
65008, 66411, 66412, 66424, 66427, 66452.10, and 66475.2 of the
Government Code, to amend Sections 13132.7, 19850, 25400.22, 25915.2,
33050, 33435, 33436, 35811, 37630, 50955, 51602, and 116048 of the
Health and Safety Code, to amend Section 790.031 of the Insurance
Code, to amend Section 2188.6 of the Revenue and Taxation Code, to
amend Sections 21107.7, 22651, 22651.05, and 22658 of the Vehicle
Code, and to amend Section 13553 of the Water Code, relating to
common interest developments.
LEGISLATIVE COUNSEL'S DIGEST
SB 752, Roth. Commercial and industrial common interest
developments.
The Davis-Stirling Common Interest Development Act provides for
the creation and regulation of common interest developments, as
defined, but exempts common interest developments that are limited to
industrial or commercial uses from specified provisions of the act.
This bill would establish the Commercial and Industrial Common
Interest Development Act, which would provide for the creation and
regulation of commercial and industrial common interest developments.
The bill would make various conforming changes.
This bill would incorporate additional changes to Section 1633.3
of the Civil Code proposed by SB 251 that would become operative if
this bill and SB 251 are both chaptered and this bill is chaptered
last.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 10153.2 of the Business and Professions Code,
as amended by Section 2 of Chapter 181 of the Statutes of 2012, is
amended to read:
10153.2. (a) An applicant to take the examination for an original
real estate broker license shall also submit evidence, satisfactory
to the commissioner, of successful completion, at an accredited
institution, of:
(1) A three-semester unit course, or the quarter equivalent
thereof, in each of the following:
(A) Real estate practice.
(B) Legal aspects of real estate.
(C) Real estate appraisal.
(D) Real estate financing.
(E) Real estate economics or accounting.
(2) A three-semester unit course, or the quarter equivalent
thereof, in three of the following:
(A) Advanced legal aspects of real estate.
(B) Advanced real estate finance.
(C) Advanced real estate appraisal.
(D) Business law.
(E) Escrows.
(F) Real estate principles.
(G) Property management.
(H) Real estate office administration.
(I) Mortgage loan brokering and lending.
(J) Computer applications in real estate.
(K) On and after July 1, 2004, California law that relates to
common interest developments, including, but not limited to, topics
addressed in the Davis-Stirling Common Interest Development Act (Part
5 (commencing with Section 4000) of Division 4 of the Civil Code)
and in the Commercial and Industrial Common Interest Development Act
(Part 5.3 (commencing with Section 6500) of Division 4 of the Civil
Code).
(b) The commissioner shall waive the requirements of this section
for an applicant who is a member of the State Bar of California and
shall waive the requirements for which an applicant has successfully
completed an equivalent course of study as determined under Section
10153.5.
(c) The commissioner shall extend credit under this section for
any course completed to satisfy requirements of Section 10153.3 or
10153.4.
SEC. 2. Section 11003 of the Business and Professions Code, as
amended by Section 4 of Chapter 181 of the Statutes of 2012, is
amended to read:
11003. "Planned development" has the same meaning as specified in
Section 4175 or 6562 of the Civil Code.
SEC. 3. Section 11003.2 of the Business and Professions Code, as
amended by Section 5 of Chapter 181 of the Statutes of 2012, is
amended to read:
11003.2. "Stock cooperative" has the same meaning as specified in
Section 4190 or 6566 of the Civil Code, except that, as used in this
chapter, a "stock cooperative" does not include a limited-equity
housing cooperative.
SEC. 4. Section 11004.5 of the Business and Professions Code, as
amended by Section 7 of Chapter 181 of the Statutes of 2012, is
amended to read:
11004.5. In addition to the provisions of Section 11000, the
reference in this code to "subdivided lands" and "subdivision" shall
include all of the following:
(a) Any planned development, as defined in Section 11003,
containing five or more lots.
(b) Any community apartment project, as defined by Section 11004,
containing five or more apartments.
(c) Any condominium project containing five or more condominiums,
as defined in Section 783 of the Civil Code.
(d) Any stock cooperative as defined in Section 11003.2, including
any legal or beneficial interests therein, having or intended to
have five or more shareholders.
(e) Any limited-equity housing cooperative, as defined in Section
11003.4.
(f) In addition, the following interests shall be subject to this
chapter and the regulations of the commissioner adopted pursuant
thereto:
(1) Any accompanying memberships or other rights or privileges
created in, or in connection with, any of the forms of development
referred to in subdivision (a), (b), (c), (d), or (e) by any deeds,
conveyances, leases, subleases, assignments, declarations of
restrictions, articles of incorporation, bylaws, or contracts
applicable thereto.
(2) Any interests or memberships in any owners' association as
defined in Section 4080 or 6528 of the Civil Code, created in
connection with any of the forms of the development referred to in
subdivision (a), (b), (c), (d), or (e).
(g) Notwithstanding this section, time-share plans, exchange
programs, incidental benefits, and short-term product subject to
Chapter 2 (commencing with Section 11210) are not "subdivisions" or
"subdivided lands" subject to this chapter.
SEC. 5. Section 11010.3 of the Business and Professions Code is
amended to read:
11010.3. (a) This chapter shall not apply to the proposed sale or
lease of lots or other interests in a subdivision that is limited to
industrial or commercial uses by law or by a declaration of
covenants, conditions, and restrictions that has been recorded in the
official records of the county or counties in which the subdivision
is located.
(b) For the purposes of this section, "commercial use" includes,
but is not limited to, the operation of a business that provides
facilities for the overnight stay of its customers, employees, or
agents.
SEC. 6. Section 23426.5 of the Business and Professions Code, as
amended by Section 17 of Chapter 181 of the Statutes of 2012, is
amended to read:
23426.5. (a) For purposes of this article, "club" also means any
tennis club that maintains not less than four regulation tennis
courts, together with the necessary facilities and clubhouse, has
members paying regular monthly dues, has been in existence for not
less than 45 years, and is not associated with a common interest
development as defined in Section 4100 or 6534 of the Civil Code, a
community apartment project as defined in Section 11004 of this code,
a project consisting of condominiums as defined in Section 783 of
the Civil Code, or a mobilehome park as defined in Section 18214 of
the Health and Safety Code.
(b) It shall be unlawful for any club licensed pursuant to this
section to make any discrimination, distinction, or restriction
against any person on account of age or any characteristic listed or
defined in subdivision (b) or (e) of Section 51 of the Civil Code.
SEC. 7. Section 23428.20 of the Business and Professions Code, as
amended by Section 18 of Chapter 181 of the Statutes of 2012, is
amended to read:
23428.20. (a) For the purposes of this article, "club" also means
any bona fide nonprofit corporation that has been in existence for
not less than nine years, has more than 8,500 memberships issued and
outstanding to owners of condominiums and owners of memberships in
stock cooperatives, and owns, leases, operates, or maintains
recreational facilities for its members.
(b) For the purposes of this article, "club" also means any bona
fide nonprofit corporation that was formed as a condominium
homeowners' association, has at least 250 members, has served daily
meals to its members and guests for a period of not less than 12
years, owns or leases, operates, and maintains a clubroom or rooms
for its membership, has an annual fee of not less than nine hundred
dollars ($900) per year per member, and has as a condition of
membership that one member of each household be at least 54 years of
age.
(c) Section 23399 and the numerical limitation of Section 23430
shall not apply to a club defined in this section.
(d) No license shall be issued pursuant to this section to any
club that withholds membership or denies facilities or services to
any person on account of any basis listed in subdivision (a) or (d)
of Section 12955 of the Government Code, as those bases are defined
in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
subdivision (p) of Section 12955, and Section 12955.2 of the
Government Code.
(e) Notwithstanding subdivision (d), with respect to familial
status, subdivision (d) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (d)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51, Section 4760, and Section
6714 of the Civil Code, and subdivisions (n), (o), and (p) of Section
12955 of the Government Code shall apply to subdivision (d).
SEC. 8. Section 714 of the Civil Code, as amended by Section 20 of
Chapter 181 of the Statutes of 2012, is amended to read:
714. (a) Any covenant, restriction, or condition contained in any
deed, contract, security instrument, or other instrument affecting
the transfer or sale of, or any interest in, real property, and any
provision of a governing document, as defined in Section 4150 or
6552, that effectively prohibits or restricts the installation or use
of a solar energy system is void and unenforceable.
(b) This section does not apply to provisions that impose
reasonable restrictions on solar energy systems. However, it is the
policy of the state to promote and encourage the use of solar energy
systems and to remove obstacles thereto. Accordingly, reasonable
restrictions on a solar energy system are those restrictions that do
not significantly increase the cost of the system or significantly
decrease its efficiency or specified performance, or that allow for
an alternative system of comparable cost, efficiency, and energy
conservation benefits.
(c) (1) A solar energy system shall meet applicable health and
safety standards and requirements imposed by state and local
permitting authorities.
(2) A solar energy system for heating water shall be certified by
the Solar Rating Certification Corporation (SRCC) or other nationally
recognized certification agencies. SRCC is a nonprofit third party
supported by the United States Department of Energy. The
certification shall be for the entire solar energy system and
installation.
(3) A solar energy system for producing electricity shall also
meet all applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories such as
Underwriters Laboratories and, where applicable, rules of the Public
Utilities Commission regarding safety and reliability.
(d) For the purposes of this section:
(1) (A) For solar domestic water heating systems or solar swimming
pool heating systems that comply with state and federal law,
"significantly" means an amount exceeding 20 percent of the cost of
the system or decreasing the efficiency of the solar energy system by
an amount exceeding 20 percent, as originally specified and
proposed.
(B) For photovoltaic systems that comply with state and federal
law, "significantly" means an amount not to exceed two thousand
dollars ($2,000) over the system cost as originally specified and
proposed, or a decrease in system efficiency of an amount exceeding
20 percent as originally specified and proposed.
(2) "Solar energy system" has the same meaning as defined in
paragraphs (1) and (2) of subdivision (a) of Section 801.5.
(e) (1) Whenever approval is required for the installation or use
of a solar energy system, the application for approval shall be
processed and approved by the appropriate approving entity in the
same manner as an application for approval of an architectural
modification to the property, and shall not be willfully avoided or
delayed.
(2) For an approving entity that is an association, as defined in
Section 4080 or 6528, and that is not a public entity, both of the
following shall apply:
(A) The approval or denial of an application shall be in writing.
(B) If an application is not denied in writing within 60 days from
the date of receipt of the application, the application shall be
deemed approved, unless that delay is the result of a reasonable
request for additional information.
(f) Any entity, other than a public entity, that willfully
violates this section shall be liable to the applicant or other party
for actual damages occasioned thereby, and shall pay a civil penalty
to the applicant or other party in an amount not to exceed one
thousand dollars ($1,000).
(g) In any action to enforce compliance with this section, the
prevailing party shall be awarded reasonable attorney's fees.
(h) (1) A public entity that fails to comply with this section may
not receive funds from a state-sponsored grant or loan program for
solar energy. A public entity shall certify its compliance with the
requirements of this section when applying for funds from a
state-sponsored grant or loan program.
(2) A local public entity may not exempt residents in its
jurisdiction from the requirements of this section.
SEC. 9. Section 714.1 of the Civil Code, as amended by Section 21
of Chapter 181 of the Statutes of 2012, is amended to read:
714.1. Notwithstanding Section 714, any association, as defined
in Section 4080 or 6528, may impose reasonable provisions which:
(a) Restrict the installation of solar energy systems installed in
common areas, as defined in Section 4095 or 6532, to those systems
approved by the association.
(b) Require the owner of a separate interest, as defined in
Section 4185 or 6564, to obtain the approval of the association for
the installation of a solar energy system in a separate interest
owned by another.
(c) Provide for the maintenance, repair, or replacement of roofs
or other building components.
(d) Require installers of solar energy systems to indemnify or
reimburse the association or its members for loss or damage caused by
the installation, maintenance, or use of the solar energy system.
SEC. 10. Section 782 of the Civil Code, as amended by Section 22
of Chapter 181 of the Statutes of 2012, is amended to read:
782. (a) Any provision in any deed of real property in
California, whether executed before or after the effective date of
this section, that purports to restrict the right of any persons to
sell, lease, rent, use, or occupy the property to persons having any
characteristic listed in subdivision (a) or (d) of Section 12955 of
the Government Code, as those bases are defined in Sections 12926,
12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
Section 12955 and Section 12955.2 of the Government Code, by
providing for payment of a penalty, forfeiture, reverter, or
otherwise, is void.
(b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of this code, relating to housing for senior citizens.
Subdivision (d) of Section 51, Section 4760, and Section 6714 of this
code, and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code shall apply to subdivision (a).
SEC. 11. Section 782.5 of the Civil Code, as amended by Section 23
of Chapter 181 of the Statutes of 2012, is amended to read:
782.5. (a) Any deed or other written instrument that relates to
title to real property, or any written covenant, condition, or
restriction annexed or made a part of, by reference or otherwise, any
deed or instrument that relates to title to real property, which
contains any provision that purports to forbid, restrict, or
condition the right of any person or persons to sell, buy, lease,
rent, use, or occupy the property on account of any basis listed in
subdivision (a) or (d) of Section 12955 of the Government Code, as
those bases are defined in Sections 12926, 12926.1, subdivision (m)
and paragraph (1) of subdivision (p) of Section 12955, and Section
12955.2 of the Government Code, with respect to any person or
persons, shall be deemed to be revised to omit that provision.
(b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of this code, relating to housing for senior citizens.
Subdivision (d) of Section 51, Section 4760, and Section 6714 of this
code, and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code shall apply to subdivision (a).
(c) This section shall not be construed to limit or expand the
powers of a court to reform a deed or other written instrument.
SEC. 12. Section 783 of the Civil Code, as amended by Section 24
of Chapter 181 of the Statutes of 2012, is amended to read:
783. A condominium is an estate in real property described in
Section 4125 or 6542. A condominium may, with respect to the duration
of its enjoyment, be either (1) an estate of inheritance or
perpetual estate, (2) an estate for life, (3) an estate for years,
such as a leasehold or a subleasehold, or (4) any combination of the
foregoing.
SEC. 13. Section 783.1 of the Civil Code, as amended by Section 25
of Chapter 181 of the Statutes of 2012, is amended to read:
783.1. In a stock cooperative, as defined in Section 4190 or
6566, both the separate interest, as defined in paragraph (4) of
subdivision (a) of Section 4185 or in paragraph (3) of subdivision
(a) of Section 6564, and the correlative interest in the stock
cooperative corporation, however designated, are interests in real
property.
SEC. 14. Section 1098 of the Civil Code, as amended by Section 32
of Chapter 181 of the Statutes of 2012, is amended to read:
1098. A "transfer fee" is any fee payment requirement imposed
within a covenant, restriction, or condition contained in any deed,
contract, security instrument, or other document affecting the
transfer or sale of, or any interest in, real property that requires
a fee be paid upon transfer of the real property. A transfer fee does
not include any of the following:
(a) Fees or taxes imposed by a governmental entity.
(b) Fees pursuant to mechanics' liens.
(c) Fees pursuant to court-ordered transfers, payments, or
judgments.
(d) Fees pursuant to property agreements in connection with a
legal separation or dissolution of marriage.
(e) Fees, charges, or payments in connection with the
administration of estates or trusts pursuant to Division 7
(commencing with Section 7000), Division 8 (commencing with Section
13000), or Division 9 (commencing with Section 15000) of the Probate
Code.
(f) Fees, charges, or payments imposed by lenders or purchasers of
loans, as these entities are described in subdivision (c) of Section
10232 of the Business and Professions Code.
(g) Assessments, charges, penalties, or fees authorized by the
Davis-Stirling Common Interest Development Act (Part 5 (commencing
with Section 4000) of Division 4) or by the Commercial and Industrial
Common Interest Development Act (Part 5.3 (commencing with Section
6500) of Division 4).
(h) Fees, charges, or payments for failing to comply with, or for
transferring the real property prior to satisfying, an obligation to
construct residential improvements on the real property.
(i) Any fee reflected in a document recorded against the property
on or before December 31, 2007, that is separate from any covenants,
conditions, and restrictions, and that substantially complies with
subdivision (a) of Section 1098.5 by providing a prospective
transferee notice of the following:
(1) Payment of a transfer fee is required.
(2) The amount or method of calculation of the fee.
(3) The date or circumstances under which the transfer fee payment
requirement expires, if any.
(4) The entity to which the fee will be paid.
(5) The general purposes for which the fee will be used.
SEC. 15. Section 1133 of the Civil Code, as amended by Section 35
of Chapter 181 of the Statutes of 2012, is amended to read:
1133. (a) If a lot, parcel, or unit of a subdivision is subject
to a blanket encumbrance, as defined in Section 11013 of the Business
and Professions Code, but is exempt from a requirement of compliance
with Section 11013.2 of the Business and Professions Code, the
subdivider, his or her agent, or representative, shall not sell, or
lease for a term exceeding five years, the lot, parcel, or unit, nor
cause it to be sold, or leased for a term exceeding five years, until
the prospective purchaser or lessee of the lot, parcel, or unit has
been furnished with and has signed a true copy of the following
notice:
BUYER/LESSEE IS AWARE OF THE FACT THAT THE LOT, PARCEL, OR UNIT
WHICH HE OR SHE IS PROPOSING TO PURCHASE OR LEASE IS SUBJECT TO A
DEED OF TRUST, MORTGAGE, OR OTHER LIEN KNOWN AS A "BLANKET
ENCUMBRANCE."
IF BUYER/LESSEE PURCHASES OR LEASES THIS LOT, PARCEL, OR UNIT, HE
OR SHE COULD LOSE THAT INTEREST THROUGH FORECLOSURE OF THE BLANKET
ENCUMBRANCE OR OTHER LEGAL PROCESS EVEN THOUGH BUYER/LESSEE IS NOT
DELINQUENT IN HIS OR HER PAYMENTS OR OTHER OBLIGATIONS UNDER THE
MORTGAGE, DEED OF TRUST, OR LEASE.
______ ________________
Date Signature of
Buyer or Lessee
(b) "Subdivision," as used in subdivision (a), means improved or
unimproved land that is divided or proposed to be divided for the
purpose of sale, lease, or financing, whether immediate or future,
into two or more lots, parcels, or units and includes a condominium
project, as defined in Section 4125 or 6542, a community apartment
project, as defined in Section 4105, a stock cooperative, as defined
in Section 4190 or 6566, and a limited equity housing cooperative, as
defined in Section 4190.
(c) The failure of the buyer or lessee to sign the notice shall
not invalidate any grant, conveyance, lease, or encumbrance.
(d) Any person or entity who willfully violates the provisions of
this section shall be liable to the purchaser of a lot or unit which
is subject to the provisions of this section for actual damages, and,
in addition thereto, shall be guilty of a public offense punishable
by a fine in an amount not to exceed five hundred dollars ($500). In
an action to enforce the liability or fine, the prevailing party
shall be awarded reasonable attorney's fees.
SEC. 16. Section 1633.3 of the Civil Code, as amended by Section
36 of Chapter 181 of the Statutes of 2012, is amended to read:
1633.3. (a) Except as otherwise provided in subdivisions (b) and
(c), this title applies to electronic records and electronic
signatures relating to a transaction.
(b) This title does not apply to transactions subject to the
following laws:
(1) A law governing the creation and execution of wills, codicils,
or testamentary trusts.
(2) Division 1 (commencing with Section 1101) of the Uniform
Commercial Code, except Sections 1107 and 1206.
(3) Divisions 3 (commencing with Section 3101), 4 (commencing with
Section 4101), 5 (commencing with Section 5101), 8 (commencing with
Section 8101), 9 (commencing with Section 9101), and 11 (commencing
with Section 11101) of the Uniform Commercial Code.
(4) A law that requires that specifically identifiable text or
disclosures in a record or a portion of a record be separately
signed, including initialed, from the record. However, this paragraph
does not apply to Section 1677 or 1678 of this code or Section 1298
of the Code of Civil Procedure.
(c) This title does not apply to any specific transaction
described in Section 17511.5 of the Business and Professions Code,
Section 56.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6,
1689.7, or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
Title 5 of Part 2 of Division 3 of, Section 1720, 1785.15, 1789.14,
1789.16, 1789.33, or 1793.23 of, Chapter 1 (commencing with Section
1801) of Title 2 of Part 4 of Division 3 of, Section 1861.24, 1862.5,
1917.712, 1917.713, 1950.5, 1950.6, 1983, 2924b, 2924c, 2924f,
2924i, 2924j, 2924.3, or 2937 of, Article 1.5 (commencing with
Section 2945) of Chapter 2 of Title 14 of Part 4 of Division 3 of,
Section 2954.5 or 2963 of, Chapter 2b (commencing with Section 2981)
or 2d (commencing with Section 2985.7) of Title 14 of Part 4 of
Division 3 of, Section 3071.5 of, Part 5 (commencing with Section
4000) of Division 4 of, or Part 5.3 (commencing with Section 6500) of
Division 4 of this code, subdivision (b) of Section 18608 or Section
22328 of the Financial Code, Section 1358.15, 1365, 1368.01, 1368.1,
1371, or 18035.5 of the Health and Safety Code, Section 662, 663,
664, 667.5, 673, 677, 678, 678.1, 786, 10086, 10113.7, 10127.7,
10127.9, 10127.10, 10197, 10199.44, 10199.46, 10235.16, 10235.40,
10509.4, 10509.7, 11624.09, or 11624.1 of the Insurance Code, Section
779.1, 10010.1, or 16482 of the Public Utilities Code, or Section
9975 or 11738 of the Vehicle Code. An electronic record may not be
substituted for any notice that is required to be sent pursuant to
Section 1162 of the Code of Civil Procedure. Nothing in this
subdivision shall be construed to prohibit the recordation of any
document with a county recorder by electronic means.
(d) This title applies to an electronic record or electronic
signature otherwise excluded from the application of this title under
subdivision (b) when used for a transaction subject to a law other
than those specified in subdivision (b).
(e) A transaction subject to this title is also subject to other
applicable substantive law.
(f) The exclusion of a transaction from the application of this
title under subdivision (b) or (c) shall be construed only to exclude
the transaction from the application of this title, but shall not be
construed to prohibit the transaction from being conducted by
electronic means if the transaction may be conducted by electronic
means under any other applicable law.
SEC. 16.5. Section 1633.3 of the Civil Code, as amended by Section
36 of Chapter 181 of the Statutes of 2012, is amended to read:
1633.3. (a) Except as otherwise provided in subdivisions (b) and
(c), this title applies to electronic records and electronic
signatures relating to a transaction.
(b) This title does not apply to transactions subject to the
following laws:
(1) A law governing the creation and execution of wills, codicils,
or testamentary trusts.
(2) Division 1 (commencing with Section 1101) of the Uniform
Commercial Code, except Sections 1206 and 1306.
(3) Divisions 3 (commencing with Section 3101), 4 (commencing with
Section 4101), 5 (commencing with Section 5101), 8 (commencing with
Section 8101), 9 (commencing with Section 9101), and 11 (commencing
with Section 11101) of the Uniform Commercial Code.
(4) A law that requires that specifically identifiable text or
disclosures in a record or a portion of a record be separately
signed, including initialed, from the record. However, this paragraph
does not apply to Section
1677 or 1678 of this code or Section 1298 of the Code of Civil
Procedure.
(c) This title does not apply to any specific transaction
described in Section 17511.5 of the Business and Professions Code,
Section 56.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6,
1689.7, or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
Title 5 of Part 2 of Division 3 of, Section 1720, 1785.15, 1789.14,
1789.16, or 1793.23 of, Chapter 1 (commencing with Section 1801) of
Title 2 of Part 4 of Division 3 of, Section 1861.24, 1862.5,
1917.712, 1917.713, 1950.5, 1950.6, 1983, 2924b, 2924c, 2924f, 2924i,
2924j, 2924.3, or 2937 of, Article 1.5 (commencing with Section
2945) of Chapter 2 of Title 14 of Part 4 of Division 3 of, Section
2954.5 or 2963 of, Chapter 2b (commencing with Section 2981) or 2d
(commencing with Section 2985.7) of Title 14 of Part 4 of Division 3
of, Section 3071.5 of, Part 5 (commencing with Section 4000) of
Division 4 of, or Part 5.3 (commencing with Section 6500) of Division
4 of this code, subdivision (b) of Section 18608 or Section 22328 of
the Financial Code, Section 1358.15, 1365, 1368.01, 1368.1, 1371, or
18035.5 of the Health and Safety Code, Section 662, paragraph (2) of
subdivision (a) of Section 663, 664, 667.5, 673, 677, paragraph (2)
of subdivision (a) of Section 678, subdivisions (a) and (b) of
Section 678.1, Section 786, 10113.7, 10127.7, 10127.9, 10127.10,
10192.18, 10199.44, 10199.46, 10235.16, 10235.40, 10509.4, 10509.7,
11624.09, or 11624.1 of the Insurance Code, Section 779.1, 10010.1,
or 16482 of the Public Utilities Code, or Section 9975 or 11738 of
the Vehicle Code. An electronic record may not be substituted for any
notice that is required to be sent pursuant to Section 1162 of the
Code of Civil Procedure. Nothing in this subdivision shall be
construed to prohibit the recordation of any document with a county
recorder by electronic means.
(d) This title applies to an electronic record or electronic
signature otherwise excluded from the application of this title under
subdivision (b) when used for a transaction subject to a law other
than those specified in subdivision (b).
(e) A transaction subject to this title is also subject to other
applicable substantive law.
(f) The exclusion of a transaction from the application of this
title under subdivision (b) or (c) shall be construed only to exclude
the transaction from the application of this title, but shall not be
construed to prohibit the transaction from being conducted by
electronic means if the transaction may be conducted by electronic
means under any other applicable law.
(g) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date.
SEC. 17. Section 2924b of the Civil Code is amended to read:
2924b. (a) Any person desiring a copy of any notice of default
and of any notice of sale under any deed of trust or mortgage with
power of sale upon real property or an estate for years therein, as
to which deed of trust or mortgage the power of sale cannot be
exercised until these notices are given for the time and in the
manner provided in Section 2924 may, at any time subsequent to
recordation of the deed of trust or mortgage and prior to recordation
of notice of default thereunder, cause to be filed for record in the
office of the recorder of any county in which any part or parcel of
the real property is situated, a duly acknowledged request for a copy
of the notice of default and of sale. This request shall be signed
and acknowledged by the person making the request, specifying the
name and address of the person to whom the notice is to be mailed,
shall identify the deed of trust or mortgage by stating the names of
the parties thereto, the date of recordation thereof, and the book
and page where the deed of trust or mortgage is recorded or the
recorder's number, and shall be in substantially the following form:
""In accordance with Section 2924b, Civil Code,
request is hereby
made that a copy of any notice of default and a
copy of any notice of sale
under the deed of trust (or mortgage) recorded
______, ____, in Book
_____ page ____ records of ____ County, (or filed
for record with
recorder's serial number ____, _______ County)
California, executed
by ____ as trustor (or mortgagor) in which
________ is named as
beneficiary (or mortgagee) and ______________ as
trustee be mailed to
_________________ at __________________________.
Name Address
NOTICE: A copy of any notice of default and of
any notice of sale will be
sent only to the address contained in this
recorded request. If your address changes, a new
request must be recorded.
Signature ______________''
Upon the filing for record of the request, the recorder shall
index in the general index of grantors the names of the trustors (or
mortgagors) recited therein and the names of persons requesting
copies.
(b) The mortgagee, trustee, or other person authorized to record
the notice of default or the notice of sale shall do each of the
following:
(1) Within 10 business days following recordation of the notice of
default, deposit or cause to be deposited in the United States mail
an envelope, sent by registered or certified mail with postage
prepaid, containing a copy of the notice with the recording date
shown thereon, addressed to each person whose name and address are
set forth in a duly recorded request therefor, directed to the
address designated in the request and to each trustor or mortgagor at
his or her last known address if different than the address
specified in the deed of trust or mortgage with power of sale.
(2) At least 20 days before the date of sale, deposit or cause to
be deposited in the United States mail an envelope, sent by
registered or certified mail with postage prepaid, containing a copy
of the notice of the time and place of sale, addressed to each person
whose name and address are set forth in a duly recorded request
therefor, directed to the address designated in the request and to
each trustor or mortgagor at his or her last known address if
different than the address specified in the deed of trust or mortgage
with power of sale.
(3) As used in paragraphs (1) and (2), the "last known address" of
each trustor or mortgagor means the last business or residence
physical address actually known by the mortgagee, beneficiary,
trustee, or other person authorized to record the notice of default.
For the purposes of this subdivision, an address is "actually known"
if it is contained in the original deed of trust or mortgage, or in
any subsequent written notification of a change of physical address
from the trustor or mortgagor pursuant to the deed of trust or
mortgage. For the purposes of this subdivision, "physical address"
does not include an email or any form of electronic address for a
trustor or mortgagor. The beneficiary shall inform the trustee of the
trustor's last address actually known by the beneficiary. However,
the trustee shall incur no liability for failing to send any notice
to the last address unless the trustee has actual knowledge of it.
(4) A "person authorized to record the notice of default or the
notice of sale" shall include an agent for the mortgagee or
beneficiary, an agent of the named trustee, any person designated in
an executed substitution of trustee, or an agent of that substituted
trustee.
(c) The mortgagee, trustee, or other person authorized to record
the notice of default or the notice of sale shall do the following:
(1) Within one month following recordation of the notice of
default, deposit or cause to be deposited in the United States mail
an envelope, sent by registered or certified mail with postage
prepaid, containing a copy of the notice with the recording date
shown thereon, addressed to each person set forth in paragraph (2),
provided that the estate or interest of any person entitled to
receive notice under this subdivision is acquired by an instrument
sufficient to impart constructive notice of the estate or interest in
the land or portion thereof that is subject to the deed of trust or
mortgage being foreclosed, and provided the instrument is recorded in
the office of the county recorder so as to impart that constructive
notice prior to the recording date of the notice of default and
provided the instrument as so recorded sets forth a mailing address
that the county recorder shall use, as instructed within the
instrument, for the return of the instrument after recording, and
which address shall be the address used for the purposes of mailing
notices herein.
(2) The persons to whom notice shall be mailed under this
subdivision are:
(A) The successor in interest, as of the recording date of the
notice of default, of the estate or interest or any portion thereof
of the trustor or mortgagor of the deed of trust or mortgage being
foreclosed.
(B) The beneficiary or mortgagee of any deed of trust or mortgage
recorded subsequent to the deed of trust or mortgage being
foreclosed, or recorded prior to or concurrently with the deed of
trust or mortgage being foreclosed but subject to a recorded
agreement or a recorded statement of subordination to the deed of
trust or mortgage being foreclosed.
(C) The assignee of any interest of the beneficiary or mortgagee
described in subparagraph (B), as of the recording date of the notice
of default.
(D) The vendee of any contract of sale, or the lessee of any
lease, of the estate or interest being foreclosed that is recorded
subsequent to the deed of trust or mortgage being foreclosed, or
recorded prior to or concurrently with the deed of trust or mortgage
being foreclosed but subject to a recorded agreement or statement of
subordination to the deed of trust or mortgage being foreclosed.
(E) The successor in interest to the vendee or lessee described in
subparagraph (D), as of the recording date of the notice of default.
(F) The office of the Controller, Sacramento, California, where,
as of the recording date of the notice of default, a "Notice of Lien
for Postponed Property Taxes" has been recorded against the real
property to which the notice of default applies.
(3) At least 20 days before the date of sale, deposit or cause to
be deposited in the United States mail an envelope, sent by
registered or certified mail with postage prepaid, containing a copy
of the notice of the time and place of sale addressed to each person
to whom a copy of the notice of default is to be mailed as provided
in paragraphs (1) and (2), and addressed to the office of any state
taxing agency, Sacramento, California, that has recorded, subsequent
to the deed of trust or mortgage being foreclosed, a notice of tax
lien prior to the recording date of the notice of default against the
real property to which the notice of default applies.
(4) Provide a copy of the notice of sale to the Internal Revenue
Service, in accordance with Section 7425 of the Internal Revenue Code
and any applicable federal regulation, if a "Notice of Federal Tax
Lien under Internal Revenue Laws" has been recorded, subsequent to
the deed of trust or mortgage being foreclosed, against the real
property to which the notice of sale applies. The failure to provide
the Internal Revenue Service with a copy of the notice of sale
pursuant to this paragraph shall be sufficient cause to rescind the
trustee's sale and invalidate the trustee's deed, at the option of
either the successful bidder at the trustee's sale or the trustee,
and in either case with the consent of the beneficiary. Any option to
rescind the trustee's sale pursuant to this paragraph shall be
exercised prior to any transfer of the property by the successful
bidder to a bona fide purchaser for value. A rescission of the
trustee's sale pursuant to this paragraph may be recorded in a notice
of rescission pursuant to Section 1058.5.
(5) The mailing of notices in the manner set forth in paragraph
(1) shall not impose upon any licensed attorney, agent, or employee
of any person entitled to receive notices as herein set forth any
duty to communicate the notice to the entitled person from the fact
that the mailing address used by the county recorder is the address
of the attorney, agent, or employee.
(d) Any deed of trust or mortgage with power of sale hereafter
executed upon real property or an estate for years therein may
contain a request that a copy of any notice of default and a copy of
any notice of sale thereunder shall be mailed to any person or party
thereto at the address of the person given therein, and a copy of any
notice of default and of any notice of sale shall be mailed to each
of these at the same time and in the same manner required as though a
separate request therefor had been filed by each of these persons as
herein authorized. If any deed of trust or mortgage with power of
sale executed after September 19, 1939, except a deed of trust or
mortgage of any of the classes excepted from the provisions of
Section 2924, does not contain a mailing address of the trustor or
mortgagor therein named, and if no request for special notice by the
trustor or mortgagor in substantially the form set forth in this
section has subsequently been recorded, a copy of the notice of
default shall be published once a week for at least four weeks in a
newspaper of general circulation in the county in which the property
is situated, the publication to commence within 10 business days
after the filing of the notice of default. In lieu of publication, a
copy of the notice of default may be delivered personally to the
trustor or mortgagor within the 10 business days or at any time
before publication is completed, or by posting the notice of default
in a conspicuous place on the property and mailing the notice to the
last known address of the trustor or mortgagor.
(e) Any person required to mail a copy of a notice of default or
notice of sale to each trustor or mortgagor pursuant to subdivision
(b) or (c) by registered or certified mail shall simultaneously cause
to be deposited in the United States mail, with postage prepaid and
mailed by first-class mail, an envelope containing an additional copy
of the required notice addressed to each trustor or mortgagor at the
same address to which the notice is sent by registered or certified
mail pursuant to subdivision (b) or (c). The person shall execute and
retain an affidavit identifying the notice mailed, showing the name
and residence or business address of that person, that he or she is
over 18 years of age, the date of deposit in the mail, the name and
address of the trustor or mortgagor to whom sent, and that the
envelope was sealed and deposited in the mail with postage fully
prepaid. In the absence of fraud, the affidavit required by this
subdivision shall establish a conclusive presumption of mailing.
(f) (1) Notwithstanding subdivision (a), with respect to separate
interests governed by an association, as defined in Section 4080 or
6528, the association may cause to be filed in the office of the
recorder in the county in which the separate interests are situated a
request that a mortgagee, trustee, or other person authorized to
record a notice of default regarding any of those separate interests
mail to the association a copy of any trustee's deed upon sale
concerning a separate interest. The request shall include a legal
description or the assessor's parcel number of all the separate
interests. A request recorded pursuant to this subdivision shall
include the name and address of the association and a statement that
it is an association as defined in Section 4080 or 6528. Subsequent
requests of an association shall supersede prior requests. A request
pursuant to this subdivision shall be recorded before the filing of a
notice of default. The mortgagee, trustee, or other authorized
person shall mail the requested information to the association within
15 business days following the date of the trustee's sale. Failure
to mail the request, pursuant to this subdivision, shall not affect
the title to real property.
(2) A request filed pursuant to paragraph (1) does not, for
purposes of Section 27288.1 of the Government Code, constitute a
document that either effects or evidences a transfer or encumbrance
of an interest in real property or that releases or terminates any
interest, right, or encumbrance of an interest in real property.
(g) No request for a copy of any notice filed for record pursuant
to this section, no statement or allegation in the request, and no
record thereof shall affect the title to real property or be deemed
notice to any person that any person requesting copies of notice has
or claims any right, title, or interest in, or lien or charge upon
the property described in the deed of trust or mortgage referred to
therein.
(h) "Business day," as used in this section, has the meaning
specified in Section 9.
SEC. 18. Section 2955.1 of the Civil Code, as amended by Section
41 of Chapter 181 of the Statutes of 2012, is amended to read:
2955.1. (a) Any lender originating a loan secured by the borrower'
s separate interest in a condominium project, as defined in Section
4125 or 6542, which requires earthquake insurance or imposes a fee or
any other condition in lieu thereof pursuant to an underwriting
requirement imposed by an institutional third-party purchaser shall
disclose all of the following to the potential borrower:
(1) That the lender or the institutional third party in question
requires earthquake insurance or imposes a fee or any other condition
in lieu thereof pursuant to an underwriting requirement imposed by
an institutional third-party purchaser.
(2) That not all lenders or institutional third parties require
earthquake insurance or impose a fee or any other condition in lieu
thereof pursuant to an underwriting requirement imposed by an
institutional third-party purchaser.
(3) Earthquake insurance may be required on the entire condominium
project.
(4) That lenders or institutional third parties may also require
that a condominium project maintain, or demonstrate an ability to
maintain, financial reserves in the amount of the earthquake
insurance deductible.
(b) For the purposes of this section, "institutional third party"
means the Federal Home Loan Mortgage Corporation, the Federal
National Mortgage Association, the Government National Mortgage
Association, and other substantially similar institutions, whether
public or private.
(c) The disclosure required by this section shall be made in
writing by the lender as soon as reasonably practicable.
SEC. 19. Section 4202 of the Civil Code is amended to read:
4202. This part does not apply to a commercial or industrial
common interest development, as defined in Section 6531.
SEC. 20. Section 4280 of the Civil Code is amended to read:
4280. (a) The articles of incorporation of an association filed
with the Secretary of State shall include a statement, which shall be
in addition to the statement of purposes of the corporation, that
does all of the following:
(1) Identifies the corporation as an association formed to manage
a common interest development under the Davis-Stirling Common
Interest Development Act.
(2) States the business or corporate office of the association, if
any, and, if the office is not on the site of the common interest
development, states the front street and nearest cross street for the
physical location of the common interest development.
(3) States the name and address of the association's managing
agent, if any.
(b) The statement filed by an incorporated association with the
Secretary of State pursuant to Section 8210 of the Corporations Code
shall also contain a statement identifying the corporation as an
association formed to manage a common interest development under the
Davis-Stirling Common Interest Development Act.
(c) Documents filed prior to January 1, 2014, in compliance with
former Section 1363.5, as it read on January 1, 2013, are deemed to
be in compliance with this section.
SEC. 21. Part 5.3 (commencing with Section 6500) is added to
Division 4 of the Civil Code, to read:
PART 5.3. Commercial and Industrial Common Interest
Developments
CHAPTER 1. GENERAL PROVISIONS
Article 1. Preliminary Provisions
6500. This part shall be known, and may be cited, as the
Commercial and Industrial Common Interest Development Act. In a
provision of this part, the part may be referred to as the act.
6502. Division, part, title, chapter, article, and section
headings do not in any manner affect the scope, meaning, or intent of
this act.
6505. Nothing in the act that added this part shall be construed
to invalidate a document prepared or action taken before January 1,
2014, if the document or action was proper under the law governing
common interest developments at the time that the document was
prepared or the action was taken. For the purposes of this section,
"document" does not include a governing document.
6510. Unless a contrary intent is clearly expressed, a local
zoning ordinance is construed to treat like structures, lots,
parcels, areas, or spaces in like manner regardless of the form of
the common interest development.
6512. (a) If a provision of this act requires that a document be
delivered to an association, the document shall be delivered to the
person designated to receive documents on behalf of the association,
in a written notice delivered by the association to members by
individual delivery. If notice of this designation has not been
given, the document shall be delivered to the president or secretary
of the association.
(b) A document delivered pursuant to this section may be delivered
by any of the following methods:
(1) First-class mail, postage prepaid, registered or certified
mail, express mail, or overnight delivery by an express service
carrier.
(2) By email, facsimile, or other electronic means, if the
association has assented to that method of delivery.
(3) By personal delivery, if the association has assented to that
method of delivery. If the association accepts a document by personal
delivery it shall provide a written receipt acknowledging delivery
of the document.
6514. (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) Email, facsimile, or other electronic means, if the recipient
has consented, in writing, to that method of delivery. The consent
may be revoked, in writing, by the recipient.
(b) 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.
6518. (a) This section governs the delivery of a document
pursuant to this act.
(b) If a document is delivered by mail, delivery is deemed to be
complete on deposit into the United States mail.
(c) If a document is delivered by electronic means, delivery is
complete at the time of transmission.
6520. If the association or a member has consented to receive
information by electronic delivery, and a provision of this act
requires that the information be in writing, that requirement is
satisfied if the information is provided in an electronic record
capable of retention by the recipient at the time of receipt. An
electronic record is not capable of retention by the recipient if the
sender or its information processing system inhibits the ability of
the recipient to print or store the electronic record.
6522. If a provision of this act requires that an action be
approved by a majority of all members, the action shall be approved
or ratified by an affirmative vote of a majority of the votes
entitled to be cast.
6524. If a provision of this act requires that an action be
approved by a majority of a quorum of the members, the action shall
be approved or ratified by an affirmative vote of a majority of the
votes represented and voting in a duly held election in which a
quorum is represented, which affirmative votes also constitute a
majority of the required quorum.
Article 2. Definitions
6526. The definitions in this article govern the construction of
this act.
6528. "Association" means a nonprofit corporation or
unincorporated association created for the purpose of managing a
common interest development.
6530. "Board" means the board of directors of the association.
6531. A "commercial or industrial common interest development"
means a common interest development that is limited to industrial or
commercial uses by law or by a declaration of covenants, conditions,
and restrictions that has been recorded in the official records of
each county in which the common interest development is located. For
the purposes of this section, "commercial use" includes, but is not
limited to, the operation of a business that provides facilities for
the overnight stay of its customers, employees, or agents.
6532. (a) "Common area" means the entire common interest
development except the separate interests therein. The estate in the
common area may be a fee, a life estate, an estate for years, or any
combination of the foregoing.
(b) Notwithstanding subdivision (a), in a planned development
described in subdivision (b) of Section 6562, the common area may
consist of mutual or reciprocal easement rights appurtenant to the
separate interests.
6534. "Common interest development" means any of the following:
(a) A condominium project.
(b) A planned development.
(c) A stock cooperative.
6540. "Condominium plan" means a plan described in Section 6624.
6542. (a) A "condominium project" means a real property
development consisting of condominiums.
(b) A condominium consists of an undivided interest in common in a
portion of real property coupled with a separate interest in space
called a unit, the boundaries of which are described on a recorded
final map, parcel map, or condominium plan in sufficient detail to
locate all boundaries thereof. The area within these boundaries may
be filled with air, earth, water, or fixtures, or any combination
thereof, and need not be physically attached to land except by
easements for access and, if necessary, support.
The description of the unit may refer to (1)
boundaries described in the recorded final map, parcel map, or
condominium plan, (2) physical boundaries, either in existence, or to
be constructed, such as walls, floors, and ceilings of a structure
or any portion thereof, (3) an entire structure containing one or
more units, or (4) any combination thereof.
(c) The portion or portions of the real property held in undivided
interest may be all of the real property, except for the separate
interests, or may include a particular three-dimensional portion
thereof, the boundaries of which are described on a recorded final
map, parcel map, or condominium plan. The area within these
boundaries may be filled with air, earth, water, or fixtures, or any
combination thereof, and need not be physically attached to land
except by easements for access and, if necessary, support.
(d) An individual condominium within a condominium project may
include, in addition, a separate interest in other portions of the
real property.
6544. "Declarant" means the person or group of persons designated
in the declaration as declarant, or if no declarant is designated,
the person or group of persons who sign the original declaration or
who succeed to special rights, preferences, or privileges designated
in the declaration as belonging to the signator of the original
declaration.
6546. "Declaration" means the document, however denominated, that
contains the information required by Section 6614.
6548. "Director" means a natural person who serves on the board.
6550. (a) "Exclusive use common area" means a portion of the
common area designated by the declaration for the exclusive use of
one or more, but fewer than all, of the owners of the separate
interests and which is or will be appurtenant to the separate
interest or interests.
(b) Unless the declaration otherwise provides, any shutters,
awnings, window boxes, doorsteps, stoops, porches, balconies, patios,
exterior doors, doorframes, and hardware incident thereto, screens
and windows or other fixtures designed to serve a single separate
interest, but located outside the boundaries of the separate
interest, are exclusive use common area allocated exclusively to that
separate interest.
(c) Notwithstanding the provisions of the declaration, internal
and external telephone wiring designed to serve a single separate
interest, but located outside the boundaries of the separate
interest, is exclusive use common area allocated exclusively to that
separate interest.
6552. "Governing documents" means the declaration and any other
documents, such as bylaws, operating rules, articles of
incorporation, or articles of association, which govern the operation
of the common interest development or association.
6553. "Individual notice" means the delivery of a document
pursuant to Section 6514.
6554. "Member" means an owner of a separate interest.
6560. "Person" means a natural person, corporation, government or
governmental subdivision or agency, business trust, estate, trust,
partnership, limited liability company, association, or other entity.
6562. "Planned development" means a real property development
other than a condominium project, or a stock cooperative, having
either or both of the following features:
(a) Common area that is owned either by an association or in
common by the owners of the separate interests who possess
appurtenant rights to the beneficial use and enjoyment of the common
area.
(b) Common area and an association that maintains the common area
with the power to levy assessments that may become a lien upon the
separate interests in accordance with Article 2 (commencing with
Section 6808) of Chapter 7.
6564. (a) "Separate interest" has the following meanings:
(1) In a condominium project, "separate interest" means a
separately owned unit, as specified in Section 6542.
(2) In a planned development, "separate interest" means a
separately owned lot, parcel, area, or space.
(3) In a stock cooperative, "separate interest" means the
exclusive right to occupy a portion of the real property, as
specified in Section 6566.
(b) Unless the declaration or condominium plan, if any exists,
otherwise provides, if walls, floors, or ceilings are designated as
boundaries of a separate interest, the interior surfaces of the
perimeter walls, floors, ceilings, windows, doors, and outlets
located within the separate interest are part of the separate
interest and any other portions of the walls, floors, or ceilings are
part of the common area.
(c) The estate in a separate interest may be a fee, a life estate,
an estate for years, or any combination of the foregoing.
6566. "Stock cooperative" means a development in which a
corporation is formed or availed of, primarily for the purpose of
holding title to, either in fee simple or for a term of years,
improved real property, and all or substantially all of the
shareholders of the corporation receive a right of exclusive
occupancy in a portion of the real property, title to which is held
by the corporation. The owners' interest in the corporation, whether
evidenced by a share of stock, a certificate of membership, or
otherwise, shall be deemed to be an interest in a common interest
development and a real estate development for purposes of subdivision
(f) of Section 25100 of the Corporations Code.
CHAPTER 2. APPLICATION OF ACT
6580. Subject to Section 6582, this act applies and a common
interest development is created whenever a separate interest coupled
with an interest in the common area or membership in the association
is, or has been, conveyed, provided all of the following are
recorded:
(a) A declaration.
(b) A condominium plan, if any exists.
(c) A final map or parcel map, if Division 2 (commencing with
Section 66410) of Title 7 of the Government Code requires the
recording of either a final map or parcel map for the common interest
development.
6582. (a) This act applies only to a commercial or industrial
common interest development.
(b) Nothing in this act may be construed to apply to a real
property development that does not contain common area. This
subdivision is declaratory of existing law.
CHAPTER 3. GOVERNING DOCUMENTS
Article 1. General Provisions
6600. (a) To the extent of any conflict between the governing
documents and the law, the law shall prevail.
(b) To the extent of any conflict between the articles of
incorporation and the declaration, the declaration shall prevail.
(c) To the extent of any conflict between the bylaws and the
articles of incorporation or declaration, the articles of
incorporation or declaration shall prevail.
(d) To the extent of any conflict between the operating rules and
the bylaws, articles of incorporation, or declaration, the bylaws,
articles of incorporation, or declaration shall prevail.
6602. Any deed, declaration, or condominium plan for a common
interest development shall be liberally construed to facilitate the
operation of the common interest development, and its provisions
shall be presumed to be independent and severable. Nothing in Article
3 (commencing with Section 715) of Chapter 2 of Title 2 of Part 1 of
Division 2 shall operate to invalidate any provisions of the
governing documents.
6604. In interpreting deeds and condominium plans, the existing
physical boundaries of a unit in a condominium project, when the
boundaries of the unit are contained within a building, or of a unit
reconstructed in substantial accordance with the original plans
thereof, shall be conclusively presumed to be its boundaries rather
than the metes and bounds expressed in the deed or condominium plan,
if any exists, regardless of settling or lateral movement of the
building and regardless of minor variance between boundaries shown on
the plan or in the deed and those of the building.
6606. (a) No declaration or other governing document shall
include a restrictive covenant in violation of Section 12955 of the
Government Code.
(b) Notwithstanding any other provision of law or provision of the
governing documents, the board, without approval of the members,
shall amend any declaration or other governing document that includes
a restrictive covenant prohibited by this section to delete the
restrictive covenant, and shall restate the declaration or other
governing document without the restrictive covenant but with no other
change to the declaration or governing document.
(c) If the declaration is amended under this section, the board
shall record the restated declaration in each county in which the
common interest development is located. If the articles of
incorporation are amended under this section, the board shall file a
certificate of amendment with the Secretary of State pursuant to
Section 7814 of the Corporations Code.
(d) If after providing written notice to an association, pursuant
to Section 6512, requesting that the association delete a restrictive
covenant that violates subdivision (a), and the association fails to
delete the restrictive covenant within 30 days of receiving the
notice, the Department of Fair Employment and Housing, a city or
county in which a common interest development is located, or any
person may bring an action against the association for injunctive
relief to enforce subdivision (a). The court may award attorney's
fees to the prevailing party.
6608. (a) Notwithstanding any provision of the governing
documents to the contrary, the board may, after the developer has
completed construction of the development, has terminated
construction activities, and has terminated marketing activities for
the sale, lease, or other disposition of separate interests within
the development, adopt an amendment deleting from any of the
governing documents any provision which is unequivocally designed and
intended, or which by its nature can only have been designed or
intended, to facilitate the developer in completing the construction
or marketing of the development. However, provisions of the governing
documents relative to a particular construction or marketing phase
of the development may not be deleted under the authorization of this
subdivision until that construction or marketing phase has been
completed.
(b) The provisions which may be deleted by action of the board
shall be limited to those which provide for access by the developer
over or across the common area for the purposes of (1) completion of
construction of the development, and (2) the erection, construction,
or maintenance of structures or other facilities designed to
facilitate the completion of construction or marketing of separate
interests.
(c) At least 30 days prior to taking action pursuant to
subdivision (a), the board shall deliver to all members, by
individual delivery pursuant to Section 6514, (1) a copy of all
amendments to the governing documents proposed to be adopted under
subdivision (a), and (2) a notice of the time, date, and place the
board will consider adoption of the amendments.
The board may consider adoption of amendments to the governing
documents pursuant to subdivision (a) only at a meeting that is open
to all members, who shall be given opportunity to make comments
thereon. All deliberations of the board on any action proposed under
subdivision (a) shall only be conducted in an open meeting.
(d) The board may not amend the governing documents pursuant to
this section without the approval of a majority of a quorum of the
members, pursuant to Section 6524. For the purposes of this section,
"quorum" means more than 50 percent of the members who own no more
than two separate interests in the development.
6610. (a) Notwithstanding any other law or provision of the
governing documents, if the governing documents include a reference
to a provision of the Davis-Stirling Common Interest Development Act
that was continued in a new provision by the act that added this
section, the board may amend the governing documents, solely to
correct the cross-reference, by adopting a board resolution that
shows the correction. Member approval is not required in order to
adopt a resolution pursuant to this section.
(b) A declaration that is corrected under this section may be
restated in corrected form and recorded, provided that a copy of the
board resolution authorizing the corrections is recorded along with
the restated declaration.
Article 2. Declaration
6614. (a) A declaration, recorded on or after January 1, 1986,
shall contain a legal description of the common interest development,
and a statement that the common interest development is a
condominium project, planned development, stock cooperative, or
combination thereof. The declaration shall additionally set forth the
name of the association and the restrictions on the use or enjoyment
of any portion of the common interest development that are intended
to be enforceable equitable servitudes.
(b) The declaration may contain any other matters the declarant or
the members consider appropriate.
6616. Except to the extent that a declaration provides by its
express terms that it is not amendable, in whole or in part, a
declaration that fails to include provisions permitting its amendment
at all times during its existence may be amended at any time.
6618. (a) The Legislature finds that there are common interest
developments that have been created with deed restrictions that do
not provide a means for the members to extend the term of the
declaration. The Legislature further finds that covenants and
restrictions, contained in the declaration, are an appropriate method
for protecting the common plan of developments and to provide for a
mechanism for financial support for the upkeep of common area
including, but not limited to, roofs, roads, heating systems, and
recreational facilities. If declarations terminate prematurely,
common interest developments may deteriorate and the supply of
affordable units could be impacted adversely. The Legislature further
finds and declares that it is in the public interest to provide a
vehicle for extending the term of the declaration if the extension is
approved by a majority of all members, pursuant to Section 6522.
(b) A declaration that specifies a termination date, but that
contains no provision for extension of the termination date, may be
extended, before its termination date, by the approval of members
pursuant to Section 6620.
(c) No single extension of the terms of the declaration made
pursuant to this section shall exceed the initial term of the
declaration or 20 years, whichever is less. However, more than one
extension may occur pursuant to this section.
6620. (a) A declaration may be amended pursuant to the
declaration or this act. An amendment is effective after all of the
following requirements have been met:
(1) The proposed amendment has been delivered by individual notice
to all members not less than 15 days and not more than 60 days prior
to any approval being solicited.
(2) The amendment has been approved by the percentage of members
required by the declaration and any other person whose approval is
required by the declaration.
(3) That fact has been certified in a writing executed and
acknowledged by the officer designated in the declaration or by the
association for that purpose, or if no one is designated, by the
president of the association.
(4) The amendment has been recorded in each county in which a
portion of the common interest development is located.
(b) If the declaration does not specify the percentage of members
who must approve an amendment of the declaration, an amendment may be
approved by a majority of all members, pursuant to Section 6522.
Article 3. Articles of Incorporation
6622. (a) The articles of incorporation of an association filed
with the Secretary of State shall include a statement, which shall be
in addition to the statement of purposes of the corporation, that
does all of the following:
(1) Identifies the corporation as an association formed to manage
a common interest development under the Commercial and Industrial
Common Interest Development Act.
(2) States the business or corporate office of the association, if
any, and, if the office is not on the site of the common interest
development, states the front street and nearest cross street for the
physical location of the common interest development.
(3) States the name and address of the association's managing
agent, if any.
(b) The statement filed by an incorporated association with the
Secretary of State pursuant to Section 8210 of the Corporations Code
shall also contain a statement identifying the corporation as an
association formed to manage a common interest development under the
Commercial and Industrial Common Interest Development Act.
(c) Documents filed prior to January 1, 2014, in compliance with
former Section 1363.5, as it read on January 1, 2013, are deemed to
be in compliance with this section.
Article 4. Condominium Plan
6624. A condominium plan shall contain all of the following:
(a) A description or survey map of a condominium project, which
shall refer to or show monumentation on the ground.
(b) A three-dimensional description of a condominium project, one
or more dimensions of which may extend for an indefinite distance
upwards or downwards, in sufficient detail to identify the common
area and each separate interest.
(c) A certificate consenting to the recordation of the condominium
plan pursuant to this act that is signed and acknowledged as
provided in Section 6626.
6626. (a) The certificate consenting to the recordation of a
condominium plan that is required by subdivision (c) of Section 6624
shall be signed and acknowledged by all of the following persons:
(1) The record owner of fee title to that property included in the
condominium project.
(2) In the case of a condominium project that will terminate upon
the termination of an estate for years, by all lessors and lessees of
the estate for years.
(3) In the case of a condominium project subject to a life estate,
by all life tenants and remainder interests.
(4) The trustee or the beneficiary of each recorded deed of trust,
and the mortgagee of each recorded mortgage encumbering the
property.
(b) Owners of mineral rights, easements, rights-of-way, and other
nonpossessory interests do not need to sign the certificate.
(c) In the event a conversion to condominiums of a stock
cooperative has been approved by the required number of owners,
trustees, beneficiaries, and mortgagees pursuant to Section 66452.10
of the Government Code, the certificate need only be signed by those
owners, trustees, beneficiaries, and mortgagees approving the
conversion.
6628. A condominium plan may be amended or revoked by a recorded
instrument that is acknowledged and signed by all the persons who, at
the time of amendment or revocation, are persons whose signatures
are required under Section 6626.
Article 5. Operating Rules
6630. For the purposes of this article, "operating rule" means a
regulation adopted by the board that applies generally to the
management and operation of the common interest development or the
conduct of the business and affairs of the association.
6632. An operating rule is valid and enforceable only if all of
the following requirements are satisfied:
(a) The rule is in writing.
(b) The rule is within the authority of the board conferred by law
or by the declaration, articles of incorporation or association, or
bylaws of the association.
(c) The rule is not in conflict with governing law and the
declaration, articles of incorporation or association, or bylaws of
the association.
(d) The rule is reasonable, and is adopted, amended, or repealed
in good faith.
CHAPTER 4. OWNERSHIP AND TRANSFER OF INTERESTS
Article 1. Ownership Rights and Interests
6650. Unless the declaration otherwise provides, in a condominium
project, or in a planned development in which the common area is
owned by the owners of the separate interests, the common area is
owned as tenants in common, in equal shares, one for each separate
interest.
6652. Unless the declaration otherwise provides:
(a) In a condominium project, and in those planned developments
with common area owned in common by the owners of the separate
interests, there are appurtenant to each separate interest
nonexclusive rights of ingress, egress, and support, if necessary,
through the common area. The common area is subject to these rights.
(b) In a stock cooperative, and in a planned development with
common area owned by the association, there is an easement for
ingress, egress, and support, if necessary, appurtenant to each
separate interest. The common area is subject to these easements.
6654. Except as otherwise provided in law, an order of the court,
or an order pursuant to a final and binding arbitration decision, an
association may not deny a member or occupant physical access to the
member's or occupant's separate interest, either by restricting
access through the common area to the separate interest, or by
restricting access solely to the separate interest.
Article 2. Restrictions on Transfers
6656. (a) Except as provided in this section, the common area in
a condominium project shall remain undivided, and there shall be no
judicial partition thereof. Nothing in this section shall be deemed
to prohibit partition of a cotenancy in a condominium.
(b) The owner of a separate interest in a condominium project may
maintain a partition action as to the entire project as if the owners
of all of the separate interests in the project were tenants in
common in the entire project in the same proportion as their
interests in the common area. The court shall order partition under
this subdivision only by sale of the entire condominium project and
only upon a showing of one of the following:
(1) More than three years before the filing of the action, the
condominium project was damaged or destroyed, so that a material part
was rendered unfit for its prior use, and the condominium project
has not been rebuilt or repaired substantially to its state prior to
the damage or destruction.
(2) Three-fourths or more of the project is destroyed or
substantially damaged and owners of separate interests holding in the
aggregate more than a 50-percent interest in the common area oppose
repair or restoration of the project.
(3) The project has been in existence more than 50 years, is
obsolete and uneconomic, and owners of separate interests holding in
the aggregate more than a 50-percent interest in the common area
oppose repair or restoration of the project.
(4) Any conditions in the declaration for sale under the
circumstances described in this subdivision have been met.
6658. (a) In a condominium project, no labor performed or
services or materials furnished with the consent of, or at the
request of, an owner in the condominium project or the owners' agent
or contractor shall be the basis for the filing of a lien against any
other property of any other owner in the condominium project unless
that other owner has expressly consented to or requested the
performance of the labor or furnishing of the materials or services.
However, express consent shall be deemed to have been given by the
owner of any condominium in the case of emergency repairs thereto.
(b) Labor performed or services or materials furnished for the
common area, if duly authorized by the association, shall be deemed
to be performed or furnished with the express consent of each
condominium owner.
(c) The owner of any condominium may remove that owner's
condominium from a lien against two or more condominiums or any part
thereof by payment to the holder of the lien of the fraction of the
total sum secured by the lien that is attributable to the owner's
condominium.
Article 3. Transfer of Separate Interest
6662. In a condominium project the common area is not subject to
partition, except as provided in Section 6656. Any conveyance,
judicial sale, or other voluntary or involuntary transfer of the
separate interest includes the undivided interest in the common area.
Any conveyance, judicial sale, or other voluntary or involuntary
transfer of the owner's entire estate also includes the owner's
membership interest in the association.
6664. In a planned development, any conveyance, judicial sale, or
other voluntary or involuntary transfer of the separate interest
includes the undivided interest in the common area, if any exists.
Any conveyance, judicial sale, or other voluntary or involuntary
transfer of the owner's entire estate also includes the owner's
membership interest in the association.
6666. In a stock cooperative, any conveyance, judicial sale, or
other voluntary or involuntary transfer of the separate interest
includes the ownership interest in the corporation, however
evidenced. Any conveyance, judicial sale, or other voluntary or
involuntary transfer of the owner's entire estate also includes the
owner's membership interest in the association.
6668. Nothing in this article prohibits the transfer of exclusive
use areas, independent of any other interest in a common interest
subdivision, if authorization to separately transfer exclusive use
areas is expressly stated in the declaration and the transfer occurs
in accordance with the terms of the declaration.
6670. Any restrictions upon the severability of the component
interests in real property which are contained in the declaration
shall not be deemed conditions repugnant to the interest created
within the meaning of Section 711. However, these restrictions shall
not extend beyond the period in which the right to partition a
project is suspended under Section 6656.
CHAPTER 5. PROPERTY USE AND MAINTENANCE
Article 1. Protected Uses
6700. This article includes provisions that limit the authority
of an association or the governing documents to regulate the use of a
member's separate interest. Nothing in this article is intended to
affect the application of any other provision that limits the
authority of an association to regulate the use of a member's
separate interest, including, but not limited to, the following
provisions:
(a) Sections 712 and 713, relating to the display of signs.
(b) Sections 714 and 714.1, relating to solar energy systems.
(c) Section 714.5, relating to structures that are constructed
offsite and moved to the property in sections or modules.
(d) Sections 782,
782.5, and 6150 of this code and Section 12956.1 of the Government
Code, relating to racial restrictions.
6702. (a) Except as required for the protection of the public
health or safety, no governing document shall limit or prohibit, or
be construed to limit or prohibit, the display of the flag of the
United States by a member on or in the member's separate interest or
within the member's exclusive use common area.
(b) For purposes of this section, "display of the flag of the
United States" means a flag of the United States made of fabric,
cloth, or paper displayed from a staff or pole or in a window, and
does not mean a depiction or emblem of the flag of the United States
made of lights, paint, roofing, siding, paving materials, flora, or
balloons, or any other similar building, landscaping, or decorative
component.
(c) In any action to enforce this section, the prevailing party
shall be awarded reasonable attorney's fees and costs.
6704. (a) The governing documents may not prohibit posting or
displaying of noncommercial signs, posters, flags, or banners on or
in a member's separate interest, except as required for the
protection of public health or safety or if the posting or display
would violate a local, state, or federal law.
(b) For purposes of this section, a noncommercial sign, poster,
flag, or banner may be made of paper, cardboard, cloth, plastic, or
fabric, and may be posted or displayed from the yard, window, door,
balcony, or outside wall of the separate interest, but may not be
made of lights, roofing, siding, paving materials, flora, or
balloons, or any other similar building, landscaping, or decorative
component, or include the painting of architectural surfaces.
(c) An association may prohibit noncommercial signs and posters
that are more than nine square feet in size and noncommercial flags
or banners that are more than 15 square feet in size.
6706. Notwithstanding Section 4202, Section 4715 applies to an
owner of a separate interest in a common interest development who
kept a pet in that common interest development before January 1,
2014.
6708. (a) Any covenant, condition, or restriction contained in
any deed, contract, security instrument, or other instrument
affecting the transfer or sale of, or any interest in, a common
interest development that effectively prohibits or restricts the
installation or use of a video or television antenna, including a
satellite dish, or that effectively prohibits or restricts the
attachment of that antenna to a structure within that development
where the antenna is not visible from any street or common area,
except as otherwise prohibited or restricted by law, is void and
unenforceable as to its application to the installation or use of a
video or television antenna that has a diameter or diagonal
measurement of 36 inches or less.
(b) This section shall not apply to any covenant, condition, or
restriction, as described in subdivision (a), that imposes reasonable
restrictions on the installation or use of a video or television
antenna, including a satellite dish, that has a diameter or diagonal
measurement of 36 inches or less. For purposes of this section,
"reasonable restrictions" means those restrictions that do not
significantly increase the cost of the video or television antenna
system, including all related equipment, or significantly decrease
its efficiency or performance and include all of the following:
(1) Requirements for application and notice to the association
prior to the installation.
(2) Requirement of a member to obtain the approval of the
association for the installation of a video or television antenna
that has a diameter or diagonal measurement of 36 inches or less on a
separate interest owned by another.
(3) Provision for the maintenance, repair, or replacement of roofs
or other building components.
(4) Requirements for installers of a video or television antenna
to indemnify or reimburse the association or its members for loss or
damage caused by the installation, maintenance, or use of a video or
television antenna that has a diameter or diagonal measurement of 36
inches or less.
(c) Whenever approval is required for the installation or use of a
video or television antenna, including a satellite dish, the
application for approval shall be processed by the appropriate
approving entity for the common interest development in the same
manner as an application for approval of an architectural
modification to the property, and the issuance of a decision on the
application shall not be willfully delayed.
(d) In any action to enforce compliance with this section, the
prevailing party shall be awarded reasonable attorney's fees.
6710. (a) Any provision of a governing document that arbitrarily
or unreasonably restricts an owner's ability to market the owner's
interest in a common interest development is void.
(b) No association may adopt, enforce, or otherwise impose any
governing document that does either of the following:
(1) Imposes an assessment or fee in connection with the marketing
of an owner's interest in an amount that exceeds the association's
actual or direct costs.
(2) Establishes an exclusive relationship with a real estate
broker through which the sale or marketing of interests in the
development is required to occur. The limitation set forth in this
paragraph does not apply to the sale or marketing of separate
interests owned by the association or to the sale or marketing of
common area by the association.
(c) For purposes of this section, "market" and "marketing" mean
listing, advertising, or obtaining or providing access to show the
owner's interest in the development.
(d) This section does not apply to rules or regulations made
pursuant to Section 712 or 713 regarding real estate signs.
6712. (a) Notwithstanding any other law, a provision of the
governing documents shall be void and unenforceable if it does any of
the following:
(1) Prohibits, or includes conditions that have the effect of
prohibiting, the use of low water-using plants as a group.
(2) Has the effect of prohibiting or restricting compliance with
either of the following:
(A) A water-efficient landscape ordinance adopted or in effect
pursuant to subdivision (c) of Section 65595 of the Government Code.
(B) Any regulation or restriction on the use of water adopted
pursuant to Section 353 or 375 of the Water Code.
(b) This section shall not prohibit an association from applying
landscaping rules established in the governing documents, to the
extent the rules fully conform with the requirements of subdivision
(a).
6713. (a) Any covenant, restriction, or condition contained in
any deed, contract, security instrument, or other instrument
affecting the transfer or sale of any interest in a common interest
development, and any provision of a governing document, as defined in
Section 6552, that either effectively prohibits or unreasonably
restricts the installation or use of an electric vehicle charging
station in an owner's designated parking space, including, but not
limited to, a deeded parking space, a parking space in an owner's
exclusive use common area, or a parking space that is specifically
designated for use by a particular owner, or is in conflict with the
provisions of this section is void and unenforceable.
(b) (1) This section does not apply to provisions that impose
reasonable restrictions on electric vehicle charging stations.
However, it is the policy of the state to promote, encourage, and
remove obstacles to the use of electric vehicle charging stations.
(2) For purposes of this section, "reasonable restrictions" are
restrictions that do not significantly increase the cost of the
station or significantly decrease its efficiency or specified
performance.
(c) An electric vehicle charging station shall meet applicable
health and safety standards and requirements imposed by state and
local authorities, and all other applicable zoning, land use or other
ordinances, or land use permits.
(d) For purposes of this section, "electric vehicle charging
station" means a station that is designed in compliance with the
California Building Standards Code and delivers electricity from a
source outside an electric vehicle into one or more electric
vehicles. An electric vehicle charging station may include several
charge points simultaneously connecting several electric vehicles to
the station and any related equipment needed to facilitate charging
plug-in electric vehicles.
(e) If approval is required for the installation or use of an
electric vehicle charging station, the application for approval shall
be processed and approved by the association in the same manner as
an application for approval of an architectural modification to the
property, and shall not be willfully avoided or delayed. The approval
or denial of an application shall be in writing. If an application
is not denied in writing within 60 days from the date of receipt of
the application, the application shall be deemed approved, unless
that delay is the result of a reasonable request for additional
information.
(f) If the electric vehicle charging station is to be placed in a
common area or an exclusive use common area, as designated in the
common interest development's declaration, the following provisions
apply:
(1) The owner first shall obtain approval from the association to
install the electric vehicle charging station and the association
shall approve the installation if the owner agrees in writing to do
all of the following:
(A) Comply with the association's architectural standards for the
installation of the charging station.
(B) Engage a licensed contractor to install the charging station.
(C) Within 14 days of approval, provide a certificate of insurance
that names the association as an additional insured under the owner'
s insurance policy in the amount set forth in paragraph (3).
(D) Pay for the electricity usage associated with the charging
station.
(2) The owner and each successive owner of the charging station
shall be responsible for all of the following:
(A) Costs for damage to the charging station, common area,
exclusive use common area, or separate interests resulting from the
installation, maintenance, repair, removal, or replacement of the
charging station.
(B) Costs for the maintenance, repair, and replacement of the
charging station until it has been removed and for the restoration of
the common area after removal.
(C) The cost of electricity associated with the charging station.
(D) Disclosing to prospective buyers the existence of any charging
station of the owner and the related responsibilities of the owner
under this section.
(3) The owner and each successive owner of the charging station,
at all times, shall maintain a liability coverage policy in the
amount of one million dollars ($1,000,000), and shall name the
association as a named additional insured under the policy with a
right to notice of cancellation.
(4) An owner shall not be required to maintain a liability
coverage policy for an existing National Electrical Manufacturers
Association standard alternating current power plug.
(g) Except as provided in subdivision (h), installation of an
electric vehicle charging station for the exclusive use of an owner
in a common area, that is not an exclusive use common area, shall be
authorized by the association only if installation in the owner's
designated parking space is impossible or unreasonably expensive. In
such cases, the association shall enter into a license agreement with
the owner for the use of the space in a common area, and the owner
shall comply with all of the requirements in subdivision (f).
(h) The association or owners may install an electric vehicle
charging station in the common area for the use of all members of the
association and, in that case, the association shall develop
appropriate terms of use for the charging station.
(i) An association may create a new parking space where one did
not previously exist to facilitate the installation of an electric
vehicle charging station.
(j) An association that willfully violates this section shall be
liable to the applicant or other party for actual damages, and shall
pay a civil penalty to the applicant or other party in an amount not
to exceed one thousand dollars ($1,000).
(k) In any action to enforce compliance with this section, the
prevailing plaintiff shall be awarded reasonable attorney's fees.
Article 2. Modification of Separate Interest
6714. (a) Subject to the governing documents and applicable law,
a member may do the following:
(1) Make any improvement or alteration within the boundaries of
the member's separate interest that does not impair the structural
integrity or mechanical systems or lessen the support of any portions
of the common interest development.
(2) Modify the member's separate interest, at the member's
expense, to facilitate access for persons who are blind, visually
handicapped, deaf, or physically disabled, or to alter conditions
which could be hazardous to these persons. These modifications may
also include modifications of the route from the public way to the
door of the separate interest for the purposes of this paragraph if
the separate interest is on the ground floor or already accessible by
an existing ramp or elevator. The right granted by this paragraph is
subject to the following conditions:
(A) The modifications shall be consistent with applicable building
code requirements.
(B) The modifications shall be consistent with the intent of
otherwise applicable provisions of the governing documents pertaining
to safety or aesthetics.
(C) Modifications external to the separate interest shall not
prevent reasonable passage by other residents, and shall be removed
by the member when the separate interest is no longer occupied by
persons requiring those modifications who are blind, visually
handicapped, deaf, or physically disabled.
(D) Any member who intends to modify a separate interest pursuant
to this paragraph shall submit plans and specifications to the
association for review to determine whether the modifications will
comply with the provisions of this paragraph. The association shall
not deny approval of the proposed modifications under this paragraph
without good cause.
(b) Any change in the exterior appearance of a separate interest
shall be in accordance with the governing documents and applicable
provisions of law.
Article 3. Maintenance
6716. (a) Unless otherwise provided in the declaration of a
common interest development, the association is responsible for
repairing, replacing, or maintaining the common area, other than
exclusive use common area, and the owner of each separate interest is
responsible for maintaining that separate interest and any exclusive
use common area appurtenant to the separate interest.
(b) The costs of temporary relocation during the repair and
maintenance of the areas within the responsibility of the association
shall be borne by the owner of the separate interest affected.
6718. (a) In a condominium project or stock cooperative, unless
otherwise provided in the declaration, the association is responsible
for the repair and maintenance of the common area occasioned by the
presence of wood-destroying pests or organisms.
(b) In a planned development, unless a different maintenance
scheme is provided in the declaration, each owner of a separate
interest is responsible for the repair and maintenance of that
separate interest as may be occasioned by the presence of
wood-destroying pests or organisms. Upon approval of the majority of
all members of the association, pursuant to Section 6522, that
responsibility may be delegated to the association, which shall be
entitled to recover the cost thereof as a special assessment.
6720. (a) The association may cause the temporary, summary
removal of any occupant of a common interest development for such
periods and at such times as may be necessary for prompt, effective
treatment of wood-destroying pests or organisms.
(b) The association shall give notice of the need to temporarily
vacate a separate interest to the occupants and to the owners, not
less than 15 days nor more than 30 days prior to the date of the
temporary relocation. The notice shall state the reason for the
temporary relocation, the date and time of the beginning of
treatment, the anticipated date and time of termination of treatment,
and that the occupants will be responsible for their own
accommodations during the temporary relocation.
(c) Notice by the association shall be deemed complete upon
either:
(1) Personal delivery of a copy of the notice to the occupants,
and, if an occupant is not the owner, individual delivery pursuant to
Section 6514 of a copy of the notice to the owner.
(2) Individual delivery pursuant to Section 6514 to the occupant
at the address of the separate interest, and, if the occupant is not
the owner, individual delivery pursuant to Section 6514 of a copy of
the notice to the owner.
(d) For purposes of this section, "occupant" means an owner,
resident, guest, invitee, tenant, lessee, sublessee, or other person
in possession of the separate interest.
6722. Notwithstanding the provisions of the declaration, a member
is entitled to reasonable access to the common area for the purpose
of maintaining the internal and external telephone wiring made part
of the exclusive use common area of the member's separate interest
pursuant to subdivision (c) of Section 6550. The access shall be
subject to the consent of the association, whose approval shall not
be unreasonably withheld, and which may include the association's
approval of telephone wiring upon the exterior of the common area,
and other conditions as the association determines reasonable.
CHAPTER 6. ASSOCIATION GOVERNANCE
Article 1. Association Existence and Powers
6750. A common interest development shall be managed by an
association that may be incorporated or unincorporated. The
association may be referred to as an owners' association or a
community association.
6752. (a) Unless the governing documents provide otherwise, and
regardless of whether the association is incorporated or
unincorporated, the association may exercise the powers granted to a
nonprofit mutual benefit corporation, as enumerated in Section 7140
of the Corporations Code, except that an unincorporated association
may not adopt or use a corporate seal or issue membership
certificates in accordance with Section 7313 of the Corporations
Code.
(b) The association, whether incorporated or unincorporated, may
exercise the powers granted to an association in this act.
Article 2. Record Keeping
6756. To be effective, a request to change the member's
information in the association membership list shall be delivered in
writing to the association, pursuant to Section 6512.
Article 3. Conflict of Interest
6758. (a) Notwithstanding any other law, and regardless of
whether an association is incorporated or unincorporated, the
provisions of Sections 7233 and 7234 of the Corporations Code shall
apply to any contract or other transaction authorized, approved, or
ratified by the board or a committee of the board.
(b) A director or member of a committee shall not vote on any of
the following matters:
(1) Discipline of the director or committee member.
(2) An assessment against the director or committee member for
damage to the common area or facilities.
(3) A request, by the director or committee member, for a payment
plan for overdue assessments.
(4) A decision whether to foreclose on a lien on the separate
interest of the director or committee member.
(5) Review of a proposed physical change to the separate interest
of the director or committee member.
(6) A grant of exclusive use common area to the director or
committee member.
(c) Nothing in this section limits any other provision of law or
the governing documents that govern a decision in which a director
may have an interest.
Article 4. Government Assistance
6760. (a) To assist with the identification of commercial or
industrial common interest developments, each association, whether
incorporated or unincorporated, shall submit to the Secretary of
State, on a form and for a fee, to cover the reasonable cost to the
Secretary of State of processing the form, not to exceed thirty
dollars ($30), that the Secretary of State shall prescribe, the
following information concerning the association and the development
that it manages:
(1) A statement that the association is formed to manage a common
interest development under the Commercial and Industrial Common
Interest Development Act.
(2) The name of the association.
(3) The street address of the business or corporate office of the
association, if any.
(4) The street address of the association's onsite office, if
different from the street address of the business or corporate
office, or if there is no onsite office, the street address of the
responsible officer or managing agent of the association.
(5) The name, address, and either the daytime telephone number or
email address of the association's onsite office or managing agent.
(6) The name, street address, and daytime telephone number of the
association's managing agent, if any.
(7) The county, and, if in an incorporated area, the city in which
the development is physically located. If the boundaries of the
development are physically located in more than one county, each of
the counties in which it is located.
(8) If the development is in an unincorporated area, the city
closest in proximity to the development.
(9) The front street and nearest cross street of the physical
location of the development.
(10) The type of common interest development managed by the
association.
(11) The number of separate interests in the development.
(b) The association shall submit the information required by this
section as follows:
(1) By incorporated associations, within 90 days after the filing
of its original articles of incorporation, and thereafter at the time
the association files its statement of principal business activity
with the Secretary of State pursuant to Section 8210 of the
Corporations Code.
(2) By unincorporated associations, in July of 2003, and in that
same month biennially thereafter. Upon changing its status to that of
a corporation, the association shall comply with the filing
deadlines in paragraph (1).
(c) The association shall notify the Secretary of State of any
change in the street address of the association's onsite office or of
the responsible officer or managing agent of the association in the
form and for a fee, to cover the reasonable cost to the Secretary of
State of processing the form, prescribed by the Secretary of State,
within 60 days of the change.
(d) The penalty for an incorporated association's noncompliance
with the initial or biennial filing requirements of this section
shall be suspension of the association's rights, privileges, and
powers as a corporation and monetary penalties, to the same extent
and in the same manner as suspension and monetary penalties imposed
pursuant to Section 8810 of the Corporations Code.
(e) The statement required by this section may be filed,
notwithstanding suspension of the corporate powers, rights, and
privileges under this section or under provisions of the Revenue and
Taxation Code. Upon the filing of a statement under this section by a
corporation that has suffered suspension under this section, the
Secretary of State shall certify that fact to the Franchise Tax Board
and the corporation may thereupon be relieved from suspension,
unless the corporation is held in suspension by the Franchise Tax
Board by reason of Section 23301, 23301.5, or 23775 of the Revenue
and Taxation Code.
(f) The Secretary of State shall make the information submitted
pursuant to paragraph (5) of subdivision (a) available only for
governmental purposes and only to Members of the Legislature and the
Business, Consumer Services, and Housing Agency, upon written
request. All other information submitted pursuant to this section
shall be subject to public inspection pursuant to the California
Public Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code). The information
submitted pursuant to this section shall be made available for
governmental or public inspection.
(g) Whenever any form is filed pursuant to this section, it
supersedes any previously filed form.
(h) The Secretary of State may destroy or otherwise dispose of any
form filed pursuant to this section after it has been superseded by
the filing of a new form.
CHAPTER 7. ASSESSMENTS AND ASSESSMENT COLLECTION
Article 1. Establishment and Imposition of Assessments
6800. The association shall levy regular and special assessments
sufficient to perform its obligations under the governing documents
and this act.
6804. (a) Regular assessments imposed or collected to perform the
obligations of an association under the governing documents or this
act shall be exempt from execution by a judgment creditor of the
association only to the extent necessary for the association to
perform essential services, such as paying for utilities and
insurance. In determining the appropriateness of an exemption, a
court shall ensure that only essential services are protected under
this subdivision.
(b) This exemption shall not apply to any consensual pledges,
liens, or encumbrances that have been approved by a majority of a
quorum of members, pursuant to Section 6524, at a member meeting or
election, or to any state tax lien, or to any lien for labor or
materials supplied to the common area.
Article 2. Assessment Payment and Delinquency
6808. A regular or special assessment and any late charges,
reasonable fees and costs of collection, reasonable attorney's fees,
if any, and interest, if any, shall be a debt of the owner of the
separate interest at the time the assessment or other sums are
levied.
6810. (a) When an owner of a separate interest makes a payment
toward an assessment, the owner may request a receipt and the
association shall provide it. The receipt shall indicate the date of
payment and the person who received it.
(b) The association shall provide a mailing address for overnight
payment of assessments.
(c) An owner shall not be liable for any charges, interest,
or costs of collection for an assessment payment that is asserted to
be delinquent, if it is determined the assessment was paid on time to
the association.
6812. At least 30 days prior to recording a lien upon the
separate interest of the owner of record to collect a debt that is
past due under Section 6808, the association shall notify the owner
of record in writing by certified mail of the following:
(a) A general description of the collection and lien enforcement
procedures of the association and the method of calculation of the
amount, a statement that the owner of the separate interest has the
right to inspect the association records pursuant to Section 8333 of
the Corporations Code, and the following statement in 14-point
boldface type, if printed, or in capital letters, if typed:
"IMPORTANT NOTICE: IF YOUR SEPARATE INTEREST IS PLACED IN
FORECLOSURE BECAUSE YOU ARE BEHIND IN YOUR ASSESSMENTS, IT MAY BE
SOLD WITHOUT COURT ACTION."
(b) An itemized statement of the charges owed by the owner,
including items on the statement which indicate the amount of any
delinquent assessments, the fees and reasonable costs of collection,
reasonable attorney's fees, any late charges, and interest, if any.
(c) A statement that the owner shall not be liable to pay the
charges, interest, and costs of collection, if it is determined the
assessment was paid on time to the association.
6814. (a) The amount of the assessment, plus any costs of
collection, late charges, and interest assessed in accordance with
Section 6808, shall be a lien on the owner's separate interest in the
common interest development from and after the time the association
causes to be recorded with the county recorder of the county in which
the separate interest is located, a notice of delinquent assessment,
which shall state the amount of the assessment and other sums
imposed in accordance with Section 6808, a legal description of the
owner's separate interest in the common interest development against
which the assessment and other sums are levied, and the name of the
record owner of the separate interest in the common interest
development against which the lien is imposed.
(b) The itemized statement of the charges owed by the owner
described in subdivision (b) of Section 6812 shall be recorded
together with the notice of delinquent assessment.
(c) In order for the lien to be enforced by nonjudicial
foreclosure as provided in Sections 6820 and 6822, the notice of
delinquent assessment shall state the name and address of the trustee
authorized by the association to enforce the lien by sale.
(d) The notice of delinquent assessment shall be signed by the
person designated in the declaration or by the association for that
purpose, or if no one is designated, by the president of the
association.
(e) A copy of the recorded notice of delinquent assessment shall
be mailed by certified mail to every person whose name is shown as an
owner of the separate interest in the association's records, and the
notice shall be mailed no later than 10 calendar days after
recordation.
6816. A lien created pursuant to Section 6814 shall be prior to
all other liens recorded subsequent to the notice of delinquent
assessment, except that the declaration may provide for the
subordination thereof to any other liens and encumbrances.
6818. (a) Within 21 days of the payment of the sums specified in
the notice of delinquent assessment, the association shall record or
cause to be recorded in the office of the county recorder in which
the notice of delinquent assessment is recorded a lien release or
notice of rescission and provide the owner of the separate interest a
copy of the lien release or notice that the delinquent assessment
has been satisfied.
(b) If it is determined that a lien previously recorded against
the separate interest was recorded in error, the party who recorded
the lien shall, within 21 calendar days, record or cause to be
recorded in the office of the county recorder in which the notice of
delinquent assessment is recorded a lien release or notice of
rescission and provide the owner of the separate interest with a
declaration that the lien filing or recording was in error and a copy
of the lien release or notice of rescission.
6819. An association that fails to comply with the procedures set
forth in this section shall, prior to recording a lien, recommence
the required notice process. Any costs associated with recommencing
the notice process shall be borne by the association and not by the
owner of a separate interest.
Article 3. Assessment Collection
6820. (a) Except as otherwise provided in this article, after the
expiration of 30 days following the recording of a lien created
pursuant to Section 6814, the lien may be enforced in any manner
permitted by law, including sale by the court, sale by the trustee
designated in the notice of delinquent assessment, or sale by a
trustee substituted pursuant to Section 2934a.
(b) Nothing in Article 2 (commencing with Section 6808) or in
subdivision (a) of Section 726 of the Code of Civil Procedure
prohibits actions against the owner of a separate interest to recover
sums for which a lien is created pursuant to Article 2 (commencing
with Section 6808) or prohibits an association from taking a deed in
lieu of foreclosure.
6822. (a) Any sale by the trustee shall be conducted in
accordance with Sections 2924, 2924b, and 2924c applicable to the
exercise of powers of sale in mortgages and deeds of trust.
(b) In addition to the requirements of Section 2924, the
association shall serve a notice of default on the person named as
the owner of the separate interest in the association's records or,
if that person has designated a legal representative pursuant to this
subdivision, on that legal representative. Service shall be in
accordance with the manner of service of summons in Article 3
(commencing with Section 415.10) of Chapter 4 of Title 5 of Part 2 of
the Code of Civil Procedure. An owner may designate a legal
representative in a writing that is mailed to the association in a
manner that indicates that the association has received it.
(c) The fees of a trustee may not exceed the amounts prescribed in
Sections 2924c and 2924d, plus the cost of service for the notice of
default pursuant to subdivision (b).
6824. (a) A monetary charge imposed by the association as a means
of reimbursing the association for costs incurred by the association
in the repair of damage to common areas and facilities caused by a
member or the member's guest or tenant may become a lien against the
member's separate interest enforceable by the sale of the interest
under Sections 2924, 2924b, and 2924c, provided the authority to
impose a lien is set forth in the governing documents.
(b) A monetary penalty imposed by the association as a
disciplinary measure for failure of a member to comply with the
governing documents, except for the late payments, may not be
characterized nor treated in the governing documents as an assessment
that may become a lien against the member's separate interest
enforceable by the sale of the interest under Sections 2924, 2924b,
and 2924c.
6826. (a) An association may not voluntarily assign or pledge the
association's right to collect payments or assessments, or to
enforce or foreclose a lien to a third party, except when the
assignment or pledge is made to a financial institution or lender
chartered or licensed under federal or state law, when acting within
the scope of that charter or license, as security for a loan obtained
by the association.
(b) Nothing in subdivision (a) restricts the right or ability of
an association to assign any unpaid obligations of a former member to
a third party for purposes of collection.
6828. (a) Except as otherwise provided, this article applies to a
lien created on or after January 1, 2014.
(b) A lien created before January 1, 2014, is governed by the law
in existence at the time the lien was created.
CHAPTER 8. INSURANCE AND LIABILITY
6840. (a) It is the intent of the Legislature to offer civil
liability protection to owners of the separate interests in a common
interest development that have common area owned in tenancy in common
if the association carries a certain level of prescribed insurance
that covers a cause of action in tort.
(b) Any cause of action in tort against any owner of a separate
interest arising solely by reason of an ownership interest as a
tenant in common in the common area of a common interest development
shall be brought only against the association and not against the
individual owners of the separate interests, if both of the insurance
requirements in paragraphs (1) and (2) are met:
(1) The association maintained and has in effect for this cause of
action, one or more policies of insurance that include coverage for
general liability of the association.
(2) The coverage described in paragraph (1) is in the following
minimum amounts:
(A) At least two million dollars ($2,000,000) if the common
interest development consists of 100 or fewer separate interests.
(B) At least three million dollars ($3,000,000) if the common
interest development consists of more than 100 separate interests.
CHAPTER 9. DISPUTE RESOLUTION AND ENFORCEMENT
Article 1. Disciplinary Action
6850. (a) If an association adopts or has adopted a policy
imposing any monetary penalty, including any fee, on any association
member for a violation of the governing documents, including any
monetary penalty relating to the activities of a guest or tenant of
the member, the board shall adopt and distribute to each member, by
individual notice, a schedule of the monetary penalties that may be
assessed for those violations, which shall be in accordance with
authorization for member discipline contained in the governing
documents.
(b) Any new or revised monetary penalty that is adopted after
complying with subdivision (a) may be included in a supplement that
is delivered to the members individually, pursuant to Section 6553.
(c) A monetary penalty for a violation of the governing documents
shall not exceed the monetary penalty stated in the schedule of
monetary penalties or supplement that is in effect at the time of the
violation.
(d) An association shall provide a copy of the most recently
distributed schedule of monetary penalties, along with any applicable
supplements to that schedule, to any member on request.
6854. Nothing in Section 6850 shall be construed to create,
expand, or reduce the authority of the board to impose monetary
penalties on a member for a violation of the governing documents.
Article 2. Civil Actions
6856. (a) The covenants and restrictions in the declaration shall
be enforceable equitable servitudes, unless unreasonable, and shall
inure to the benefit of and bind all owners of separate interests in
the development. Unless the declaration states otherwise, these
servitudes may be enforced by any owner of a separate interest or by
the association, or by both.
(b) A governing document other than the declaration may be
enforced by the association against an owner of a separate interest
or by an owner of a separate interest against the association.
6858. An association has standing to institute, defend, settle,
or intervene in litigation, arbitration, mediation, or administrative
proceedings in its own name as the real party in interest and
without joining with it, the members, in matters pertaining to the
following:
(a) Enforcement of the governing documents.
(b) Damage to the common area.
(c) Damage to a separate interest that the association is
obligated to maintain or repair.
(d) Damage to a separate interest that arises out of, or is
integrally related to, damage to the common area or a separate
interest that the association is obligated to maintain or repair.
6860. (a) In an action maintained by an association pursuant to
subdivision (b), (c), or (d) of Section 6858, the amount of damages
recovered by the association shall be reduced by the amount of
damages allocated to the association or its managing agents in direct
proportion to their percentage of fault based upon principles of
comparative fault. The comparative fault of the association or its
managing agents may be raised by way of defense, but shall not be the
basis for a cross-action or separate action against the association
or its managing agents for contribution or implied indemnity, where
the only damage was sustained by the association or its members. It
is the intent of the Legislature in enacting this subdivision to
require that comparative fault be pleaded as an affirmative defense,
rather than a separate cause of action, where the only damage was
sustained by the association or its members.
(b) In an action involving damages described in subdivision (b),
(c), or (d) of Section 6858, the defendant or cross-defendant may
allege and prove the comparative fault of the association or its
managing agents as a setoff to the liability of the defendant or
cross-defendant even if the association is not a party to the
litigation or is no longer a party whether by reason of settlement,
dismissal, or otherwise.
(c) Subdivisions (a) and (b) apply to actions commenced on or
after January 1, 1993.
(d) Nothing in this section affects a person's liability under
Section 1431, or the liability of the association or its managing
agent for an act or omission that causes damages to another.
CHAPTER 10. CONSTRUCTION DEFECT LITIGATION
6870. (a) Before an association files a complaint for damages
against a builder, developer, or general contractor (respondent) of a
common interest development based upon a claim for defects in the
design or construction of the common interest development, all of the
requirements of this section shall be satisfied with respect to the
builder, developer, or general contractor.
(b) The association shall serve upon the respondent a "Notice of
Commencement of Legal Proceedings." The notice shall be served by
certified mail to the registered agent of the respondent, or if there
is no registered agent, then to any officer of the respondent. If
there are no current officers of the respondent, service shall be
upon the person or entity otherwise authorized by law to receive
service of process. Service upon the general contractor shall be
sufficient to initiate the process set forth in this section with
regard to any builder or developer, if the builder or developer is
not amenable to service of process by the foregoing methods. This
notice shall toll all applicable statutes of limitation and repose,
whether contractual or statutory, by and against all potentially
responsible parties, regardless of whether they were named in the
notice, including claims for indemnity applicable to the claim for
the period set forth in subdivision (c). The notice shall include all
of the following:
(1) The name and location of the project.
(2) An initial list of defects sufficient to apprise the
respondent of the general nature of the defects at issue.
(3) A description of the results of the defects, if known.
(4) A summary of the results of a survey or questionnaire
distributed to owners to determine the nature and extent of defects,
if a survey has been conducted or a questionnaire has been
distributed.
(5) Either a summary of the results of testing conducted to
determine the nature and extent of defects or the actual test
results, if that testing has been conducted.
(c) Service of the notice shall commence a period, not to exceed
180 days, during which the association, the respondent, and all other
participating parties shall try to resolve the dispute through the
processes set forth in this section. This 180-day period may be
extended for one additional period, not to exceed 180 days, only upon
the mutual agreement of the association, the respondent, and any
parties not deemed peripheral pursuant to paragraph (3) of
subdivision (e). Any extensions beyond the first extension shall
require the agreement of all participating parties. Unless extended,
the dispute resolution process prescribed by this section shall be
deemed completed. All extensions shall continue the tolling period
described in subdivision (b).
(d) Within 25 days of the date the association serves the Notice
of Commencement of Legal Proceedings, the respondent may request in
writing to meet and confer with the board. Unless the respondent and
the association otherwise agree, there shall be not more than one
meeting, which shall take place no later than 10 days from the date
of the respondent's written request, at a mutually agreeable time and
place. The meeting may be conducted in executive session, excluding
the association's members. The discussions at the meeting are
privileged communications and are not admissible in evidence in any
civil action, unless the association and the respondent consent in
writing to their admission.
(e) Upon receipt of the notice, the respondent shall, within 60
days, comply with the following:
(1) The respondent shall provide the association with access to,
for inspection and copying of, all plans and specifications,
subcontracts, and other construction files for the project that are
reasonably calculated to lead to the discovery of admissible evidence
regarding the defects claimed. The association shall provide the
respondent with access to, for inspection and copying of, all files
reasonably calculated to lead to the discovery of admissible evidence
regarding the defects claimed, including all reserve studies,
maintenance records and any survey questionnaires, or results of
testing to determine the nature and extent of defects. To the extent
any of the above documents are withheld based on privilege, a
privilege log shall be prepared and submitted to all other parties.
All other potentially responsible parties shall have the same rights
as the respondent regarding the production of documents upon receipt
of written notice of the claim, and shall produce all relevant
documents within 60 days of receipt of the notice of the claim.
(2) The respondent shall provide written notice by certified mail
to all subcontractors, design professionals, their insurers, and the
insurers of any additional insured whose identities are known to the
respondent or readily ascertainable by review of the project files or
other similar sources and whose potential responsibility appears on
the face of the notice. This notice to subcontractors, design
professionals, and insurers shall include a copy of the Notice of
Commencement of Legal Proceedings, and shall specify the date and
manner by which the parties shall meet and confer to select a dispute
resolution facilitator pursuant to paragraph (1) of subdivision (f),
advise the recipient of its obligation to participate in the meet
and confer or serve a written acknowledgment of receipt regarding
this notice, advise the recipient that it will waive any challenge to
selection of the dispute resolution facilitator if it elects not to
participate in the meet and confer, advise the recipient that it may
seek the assistance of an attorney, and advise the recipient that it
should contact its insurer, if any. Any subcontractor or design
professional, or insurer for that subcontractor, design professional,
or additional insured, who receives written notice from the
respondent regarding the meet and confer shall, prior to the meet and
confer, serve on the respondent a written acknowledgment of receipt.
That subcontractor or design professional shall, within 10 days of
service of the written acknowledgment of receipt, provide to the
association and the respondent a Statement of Insurance that includes
both of the following:
(A) The names, addresses, and contact persons, if known, of all
insurance carriers, whether primary or excess and regardless of
whether a deductible or self-insured retention applies, whose
policies were in effect from the commencement of construction of the
subject project to the present and which potentially cover the
subject claims.
(B) The applicable policy numbers for each policy of insurance
provided.
(3) Any subcontractor or design professional, or insurer for that
subcontractor, design professional, or additional insured, who so
chooses, may, at any time, make a written request to the dispute
resolution facilitator for designation as a peripheral party. That
request shall be served contemporaneously on the association and the
respondent. If no objection to that designation is received within 15
days, or upon rejection of that objection, the dispute resolution
facilitator shall designate that subcontractor or design professional
as a peripheral party, and shall thereafter seek to limit the
attendance of that subcontractor or design professional only to those
dispute resolution sessions deemed peripheral party sessions or to
those sessions during which the dispute resolution facilitator
believes settlement as to peripheral parties may be finalized.
Nothing in this subdivision shall preclude a party who has been
designated a peripheral party from being reclassified as a
nonperipheral party, nor shall this subdivision preclude a party
designated as a nonperipheral party from being reclassified as a
peripheral party after notice to all parties and an opportunity to
object. For purposes of this subdivision, a peripheral party is a
party having total claimed exposure of less than twenty-five thousand
dollars ($25,000).
(f) (1) Within 20 days of sending the notice set forth in
paragraph (2) of subdivision (e), the association, respondent,
subcontractors, design professionals, and their insurers who have
been sent a notice as described in paragraph (2) of subdivision (e)
shall meet and confer in an effort to select a dispute resolution
facilitator to preside over the mandatory dispute resolution process
prescribed by this section. Any subcontractor or design professional
who has been given timely notice of this meeting but who does not
participate, waives any challenge he or she may have as to the
selection of the dispute resolution facilitator. The role of the
dispute resolution facilitator is to attempt to resolve the conflict
in a fair manner. The dispute resolution facilitator shall be
sufficiently knowledgeable in the subject matter and be able to
devote sufficient time to the case. The dispute resolution
facilitator shall not be required to reside in or have an office in
the county in which the project is located. The dispute resolution
facilitator and the participating parties shall agree to a date,
time, and location to hold a case management meeting of all parties
and the dispute resolution facilitator, to discuss the claims being
asserted and the scheduling of events under this section. The case
management meeting with the dispute resolution facilitator shall be
held within 100 days of service of the Notice of Commencement of
Legal Proceedings at a location in the county where the project is
located. Written notice of the case management meeting with the
dispute resolution facilitator shall be sent by the respondent to the
association, subcontractors and design professionals, and their
insurers who are known to the respondent to be on notice of the
claim, no later than 10 days prior to the case management meeting,
and shall specify its date, time, and location. The dispute
resolution facilitator in consultation with the respondent shall
maintain a contact list of the participating parties.
(2) No later than 10 days prior to the case management meeting,
the dispute resolution facilitator shall disclose to the parties all
matters that could cause a person aware of the facts to reasonably
entertain a doubt that the proposed dispute resolution facilitator
would be able to resolve the conflict in a fair manner. The
facilitator's disclosure shall include the existence of any ground
specified in Section 170.1 of the Code of Civil Procedure for
disqualification of a judge, any attorney-client relationship the
facilitator has or had with any party or lawyer for a party to the
dispute resolution process, and any professional or significant
personal relationship the facilitator or his or her spouse or minor
child living in the household has or had with any party to the
dispute resolution process. The disclosure shall also be provided to
any subsequently noticed subcontractor or design professional within
10 days of the notice.
(3) A dispute resolution facilitator shall be disqualified by the
court if he or she fails to comply with this subdivision and any
party to the dispute resolution process serves a notice of
disqualification prior to the case management meeting. If the dispute
resolution facilitator complies with this subdivision, he or she
shall be disqualified by the court on the basis of the disclosure if
any party to the dispute resolution process serves a notice of
disqualification prior to the case management meeting.
(4) If the parties cannot mutually agree to a dispute resolution
facilitator, then each party shall submit a list of three dispute
resolution facilitators. Each party may then strike one nominee from
the other parties' list, and petition the court, pursuant to the
procedure described in subdivisions (n) and (o), for final selection
of the dispute resolution facilitator. The court may issue an order
for final selection of the dispute resolution facilitator pursuant to
this paragraph.
(5) Any subcontractor or design professional who receives notice
of the association's claim without having previously received timely
notice of the meet and confer to select the dispute resolution
facilitator shall be notified by the respondent regarding the name,
address, and telephone number of the dispute resolution facilitator.
Any such subcontractor or design professional may serve upon the
parties and the dispute resolution facilitator a written objection to
the dispute resolution facilitator within 15 days of receiving
notice of the claim. Within seven days after service of this
objection, the subcontractor or design professional may petition the
superior court to replace the dispute resolution facilitator. The
court may replace the dispute resolution facilitator only upon a
showing of good cause, liberally construed. Failure to satisfy the
deadlines set forth in this subdivision shall constitute a waiver of
the right to challenge the dispute resolution facilitator.
(6) The costs of the dispute resolution facilitator shall be
apportioned in the following manner: one-third to be paid by the
association; one-third to be paid by the respondent; and one-third to
be paid by the
subcontractors and design professionals, as allocated among them by
the dispute resolution facilitator. The costs of the dispute
resolution facilitator shall be recoverable by the prevailing party
in any subsequent litigation pursuant to Section 1032 of the Code of
Civil Procedure, provided however that any nonsettling party may,
prior to the filing of the complaint, petition the facilitator to
reallocate the costs of the dispute resolution facilitator as they
apply to any nonsettling party. The determination of the dispute
resolution facilitator with respect to the allocation of these costs
shall be binding in any subsequent litigation. The dispute resolution
facilitator shall take into account all relevant factors and
equities between all parties in the dispute resolution process when
reallocating costs.
(7) In the event the dispute resolution facilitator is replaced at
any time, the case management statement created pursuant to
subdivision (h) shall remain in full force and effect.
(8) The dispute resolution facilitator shall be empowered to
enforce all provisions of this section.
(g) (1) No later than the case management meeting, the parties
shall begin to generate a data compilation showing the following
information regarding the alleged defects at issue:
(A) The scope of the work performed by each potentially
responsible subcontractor.
(B) The tract or phase number in which each subcontractor provided
goods or services, or both.
(C) The units, either by address, unit number, or lot number, at
which each subcontractor provided goods or services, or both.
(2) This data compilation shall be updated as needed to reflect
additional information. Each party attending the case management
meeting, and any subsequent meeting pursuant to this section, shall
provide all information available to that party relevant to this data
compilation.
(h) At the case management meeting, the parties shall, with the
assistance of the dispute resolution facilitator, reach agreement on
a case management statement, which shall set forth all of the
elements set forth in paragraphs (1) to (8), inclusive, except that
the parties may dispense with one or more of these elements if they
agree that it is appropriate to do so. The case management statement
shall provide that the following elements shall take place in the
following order:
(1) Establishment of a document depository, located in the county
where the project is located, for deposit of documents, defect lists,
demands, and other information provided for under this section. All
documents exchanged by the parties and all documents created pursuant
to this subdivision shall be deposited in the document depository,
which shall be available to all parties throughout the prefiling
dispute resolution process and in any subsequent litigation. When any
document is deposited in the document depository, the party
depositing the document shall provide written notice identifying the
document to all other parties. The costs of maintaining the document
depository shall be apportioned among the parties in the same manner
as the costs of the dispute resolution facilitator.
(2) Provision of a more detailed list of defects by the
association to the respondent after the association completes a
visual inspection of the project. This list of defects shall provide
sufficient detail for the respondent to ensure that all potentially
responsible subcontractors and design professionals are provided with
notice of the dispute resolution process. If not already completed
prior to the case management meeting, the Notice of Commencement of
Legal Proceedings shall be served by the respondent on all additional
subcontractors and design professionals whose potential
responsibility appears on the face of the more detailed list of
defects within seven days of receipt of the more detailed list. The
respondent shall serve a copy of the case management statement,
including the name, address, and telephone number of the dispute
resolution facilitator, to all the potentially responsible
subcontractors and design professionals at the same time.
(3) Nonintrusive visual inspection of the project by the
respondent, subcontractors, and design professionals.
(4) Invasive testing conducted by the association, if the
association deems appropriate. All parties may observe and photograph
any testing conducted by the association pursuant to this paragraph,
but may not take samples or direct testing unless, by mutual
agreement, costs of testing are shared by the parties.
(5) Provision by the association of a comprehensive demand which
provides sufficient detail for the parties to engage in meaningful
dispute resolution as contemplated under this section.
(6) Invasive testing conducted by the respondent, subcontractors,
and design professionals, if they deem appropriate.
(7) Allowance for modification of the demand by the association if
new issues arise during the testing conducted by the respondent,
subcontractors, or design professionals.
(8) Facilitated dispute resolution of the claim, with all parties,
including peripheral parties, as appropriate, and insurers, if any,
present and having settlement authority. The dispute resolution
facilitators shall endeavor to set specific times for the attendance
of specific parties at dispute resolution sessions. If the dispute
resolution facilitator does not set specific times for the attendance
of parties at dispute resolution sessions, the dispute resolution
facilitator shall permit those parties to participate in dispute
resolution sessions by telephone.
(i) In addition to the foregoing elements of the case management
statement described in subdivision (h), upon mutual agreement of the
parties, the dispute resolution facilitator may include any or all of
the following elements in a case management statement: the exchange
of consultant or expert photographs; expert presentations; expert
meetings; or any other mechanism deemed appropriate by the parties in
the interest of resolving the dispute.
(j) The dispute resolution facilitator, with the guidance of the
parties, shall at the time the case management statement is
established, set deadlines for the occurrence of each event set forth
in the case management statement, taking into account such factors
as the size and complexity of the case, and the requirement of this
section that this dispute resolution process not exceed 180 days
absent agreement of the parties to an extension of time.
(k) (1) At a time to be determined by the dispute resolution
facilitator, the respondent may submit to the association all of the
following:
(A) A request to meet with the board to discuss a written
settlement offer.
(B) A written settlement offer and a concise explanation of the
reasons for the terms of the offer.
(C) A statement that the respondent has access to sufficient funds
to satisfy the conditions of the settlement offer.
(D) A summary of the results of testing conducted for the purposes
of determining the nature and extent of defects, if this testing has
been conducted, unless the association provided the respondent with
actual test results.
(2) If the respondent does not timely submit the items required by
this subdivision, the association shall be relieved of any further
obligation to satisfy the requirements of this subdivision only.
(3) No less than 10 days after the respondent submits the items
required by this paragraph, the respondent and the board shall meet
and confer about the respondent's settlement offer.
(4) If the board rejects a settlement offer presented at the
meeting held pursuant to this subdivision, the board shall hold a
meeting open to each member of the association. The meeting shall be
held no less than 15 days before the association commences an action
for damages against the respondent.
(5) No less than 15 days before this meeting is held, a written
notice shall be sent to each member of the association specifying all
of the following:
(A) That a meeting will take place to discuss problems that may
lead to the filing of a civil action, and the time and place of this
meeting.
(B) The options that are available to address the problems,
including the filing of a civil action and a statement of the various
alternatives that are reasonably foreseeable by the association to
pay for those options and whether these payments are expected to be
made from the use of reserve account funds or the imposition of
regular or special assessments, or emergency assessment increases.
(C) The complete text of any written settlement offer and a
concise explanation of the specific reasons for the terms of the
offer submitted to the board at the meeting held pursuant to
subdivision (d) that was received from the respondent.
(6) The respondent shall pay all expenses attributable to sending
the settlement offer to all members of the association. The
respondent shall also pay the expense of holding the meeting, not to
exceed three dollars ($3) per association member.
(7) The discussions at the meeting and the contents of the notice
and the items required to be specified in the notice pursuant to
paragraph (5) are privileged communications and are not admissible in
evidence in any civil action, unless the association consents to
their admission.
(8) No more than one request to meet and discuss a written
settlement offer may be made by the respondent pursuant to this
subdivision.
(l) All defect lists and demands, communications, negotiations,
and settlement offers made in the course of the prelitigation dispute
resolution process provided by this section shall be inadmissible
pursuant to Sections 1119 to 1124, inclusive, of the Evidence Code
and all applicable decisional law. This inadmissibility shall not be
extended to any other documents or communications which would not
otherwise be deemed inadmissible.
(m) Any subcontractor or design professional may, at any time,
petition the dispute resolution facilitator to release that party
from the dispute resolution process upon a showing that the
subcontractor or design professional is not potentially responsible
for the defect claims at issue. The petition shall be served
contemporaneously on all other parties, who shall have 15 days from
the date of service to object. If a subcontractor or design
professional is released, and it later appears to the dispute
resolution facilitator that it may be a responsible party in light of
the current defect list or demand, the respondent shall renotice the
party as provided by paragraph (2) of subdivision (e), provide a
copy of the current defect list or demand, and direct the party to
attend a dispute resolution session at a stated time and location. A
party who subsequently appears after having been released by the
dispute resolution facilitator shall not be prejudiced by its absence
from the dispute resolution process as the result of having been
previously released by the dispute resolution facilitator.
(n) Any party may, at any time, petition the superior court in the
county where the project is located, upon a showing of good cause,
and the court may issue an order, for any of the following, or for
appointment of a referee to resolve a dispute regarding any of the
following:
(1) To take a deposition of any party to the process, or subpoena
a third party for deposition or production of documents, which is
necessary to further prelitigation resolution of the dispute.
(2) To resolve any disputes concerning inspection, testing,
production of documents, or exchange of information provided for
under this section.
(3) To resolve any disagreements relative to the timing or
contents of the case management statement.
(4) To authorize internal extensions of timeframes set forth in
the case management statement.
(5) To seek a determination that a settlement is a good faith
settlement pursuant to Section 877.6 of the Code of Civil Procedure
and all related authorities. The page limitations and meet and confer
requirements specified in this section shall not apply to these
motions, which may be made on shortened notice. Instead, these
motions shall be subject to other applicable state law, rules of
court, and local rules. A determination made by the court pursuant to
this motion shall have the same force and effect as the
determination of a postfiling application or motion for good faith
settlement.
(6) To ensure compliance, on shortened notice, with the obligation
to provide a Statement of Insurance pursuant to paragraph (2) of
subdivision (e).
(7) For any other relief appropriate to the enforcement of the
provisions of this section, including the ordering of parties, and
insurers, if any, to the dispute resolution process with settlement
authority.
(o) (1) A petition filed pursuant to subdivision (n) shall be
filed in the superior court in the county in which the project is
located. The court shall hear and decide the petition within 10 days
after filing. The petitioning party shall serve the petition on all
parties, including the date, time, and location of the hearing no
later than five business days prior to the hearing. Any responsive
papers shall be filed and served no later than three business days
prior to the hearing. Any petition or response filed under this
section shall be no more than three pages in length.
(2) All parties shall meet with the dispute resolution
facilitator, if one has been appointed and confer in person or by the
telephone prior to the filing of that petition to attempt to resolve
the matter without requiring court intervention.
(p) As used in this section:
(1) "Association" shall have the same meaning as defined in
Section 6528.
(2) "Builder" means the declarant, as defined in Section 6544.
(3) "Common interest development" shall have the same meaning as
in Section 6534, except that it shall not include developments or
projects with less than 20 units.
(q) The alternative dispute resolution process and procedures
described in this section shall have no application or legal effect
other than as described in this section.
(r) This section shall become operative on July 1, 2002, however
it shall not apply to any pending suit or claim for which notice has
previously been given.
(s) This section shall become inoperative on July 1, 2017, and, as
of January 1, 2018, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2018, deletes or
extends the dates on which it becomes inoperative and is repealed.
6874. (a) As soon as is reasonably practicable after the
association and the builder have entered into a settlement agreement
or the matter has otherwise been resolved regarding alleged defects
in the common areas, alleged defects in the separate interests that
the association is obligated to maintain or repair, or alleged
defects in the separate interests that arise out of, or are
integrally related to, defects in the common areas or separate
interests that the association is obligated to maintain or repair,
where the defects giving rise to the dispute have not been corrected,
the association shall, in writing, inform only the members of the
association whose names appear on the records of the association that
the matter has been resolved, by settlement agreement or other
means, and disclose all of the following:
(1) A general description of the defects that the association
reasonably believes, as of the date of the disclosure, will be
corrected or replaced.
(2) A good faith estimate, as of the date of the disclosure, of
when the association believes that the defects identified in
paragraph (1) will be corrected or replaced. The association may
state that the estimate may be modified.
(3) The status of the claims for defects in the design or
construction of the common interest development that were not
identified in paragraph (1) whether expressed in a preliminary list
of defects sent to each member of the association or otherwise
claimed and disclosed to the members of the association.
(b) Nothing in this section shall preclude an association from
amending the disclosures required pursuant to subdivision (a), and
any amendments shall supersede any prior conflicting information
disclosed to the members of the association and shall retain any
privilege attached to the original disclosures.
(c) Disclosure of the information required pursuant to subdivision
(a) or authorized by subdivision (b) shall not waive any privilege
attached to the information.
(d) For the purposes of the disclosures required pursuant to this
section, the term "defects" shall be defined to include any damage
resulting from defects.
6876. (a) Not later than 30 days prior to the filing of any civil
action by the association against the declarant or other developer
of a common interest development for alleged damage to the common
areas, alleged damage to the separate interests that the association
is obligated to maintain or repair, or alleged damage to the separate
interests that arises out of, or is integrally related to, damage to
the common areas or separate interests that the association is
obligated to maintain or repair, the board shall provide a written
notice to each member of the association who appears on the records
of the association when the notice is provided. This notice shall
specify all of the following:
(1) That a meeting will take place to discuss problems that may
lead to the filing of a civil action.
(2) The options, including civil actions, that are available to
address the problems.
(3) The time and place of this meeting.
(b) Notwithstanding subdivision (a), if the association has reason
to believe that the applicable statute of limitations will expire
before the association files the civil action, the association may
give the notice, as described above, within 30 days after the filing
of the action.
SEC. 22. Section 86 of the Code of Civil Procedure, as amended by
Section 42 of Chapter 181 of the Statutes of 2012, is amended to
read:
86. (a) The following civil cases and proceedings are limited
civil cases:
(1) A case at law in which the demand, exclusive of interest, or
the value of the property in controversy amounts to twenty-five
thousand dollars ($25,000) or less. This paragraph does not apply to
a case that involves the legality of any tax, impost, assessment,
toll, or municipal fine, except an action to enforce payment of
delinquent unsecured personal property taxes if the legality of the
tax is not contested by the defendant.
(2) An action for dissolution of partnership where the total
assets of the partnership do not exceed twenty-five thousand dollars
($25,000); an action of interpleader where the amount of money or the
value of the property involved does not exceed twenty-five thousand
dollars ($25,000).
(3) An action to cancel or rescind a contract when the relief is
sought in connection with an action to recover money not exceeding
twenty-five thousand dollars ($25,000) or property of a value not
exceeding twenty-five thousand dollars ($25,000), paid or delivered
under, or in consideration of, the contract; an action to revise a
contract where the relief is sought in an action upon the contract if
the action otherwise is a limited civil case.
(4) A proceeding in forcible entry or forcible or unlawful
detainer where the whole amount of damages claimed is twenty-five
thousand dollars ($25,000) or less.
(5) An action to enforce and foreclose a lien on personal property
where the amount of the lien is twenty-five thousand dollars
($25,000) or less.
(6) An action to enforce and foreclose, or a petition to release,
a lien arising under Chapter 4 (commencing with Section 8400) of
Title 2 of Part 6 of Division 4 of the Civil Code, or to enforce and
foreclose an assessment lien on a common interest development as
defined in Section 4100 or 6534 of the Civil Code, where the amount
of the liens is twenty-five thousand dollars ($25,000) or less.
However, if an action to enforce the lien affects property that is
also affected by a similar pending action that is not a limited civil
case, or if the total amount of liens sought to be foreclosed
against the same property aggregates an amount in excess of
twenty-five thousand dollars ($25,000), the action is not a limited
civil case.
(7) An action for declaratory relief when brought pursuant to
either of the following:
(A) By way of cross-complaint as to a right of indemnity with
respect to the relief demanded in the complaint or a cross-complaint
in an action or proceeding that is otherwise a limited civil case.
(B) To conduct a trial after a nonbinding fee arbitration between
an attorney and client, pursuant to Article 13 (commencing with
Section 6200) of Chapter 4 of Division 3 of the Business and
Professions Code, where the amount in controversy is twenty-five
thousand dollars ($25,000) or less.
(8) An action to issue a temporary restraining order or
preliminary injunction; to take an account, where necessary to
preserve the property or rights of any party to a limited civil case;
to make any order or perform any act, pursuant to Title 9
(commencing with Section 680.010) of Part 2 (enforcement of
judgments) in a limited civil case; to appoint a receiver pursuant to
Section 564 in a limited civil case; to determine title to personal
property seized in a limited civil case.
(9) An action under Article 3 (commencing with Section 708.210) of
Chapter 6 of Division 2 of Title 9 of Part 2 for the recovery of an
interest in personal property or to enforce the liability of the
debtor of a judgment debtor where the interest claimed adversely is
of a value not exceeding twenty-five thousand dollars ($25,000) or
the debt denied does not exceed twenty-five thousand dollars
($25,000).
(10) An arbitration-related petition filed pursuant to either of
the following:
(A) Article 2 (commencing with Section 1292) of Chapter 5 of Title
9 of Part 3, except for uninsured motorist arbitration proceedings
in accordance with Section 11580.2 of the Insurance Code, if the
petition is filed before the arbitration award becomes final and the
matter to be resolved by arbitration is a limited civil case under
paragraphs (1) to (9), inclusive, of subdivision (a) or if the
petition is filed after the arbitration award becomes final and the
amount of the award and all other rulings, pronouncements, and
decisions made in the award are within paragraphs (1) to (9),
inclusive, of subdivision (a).
(B) To confirm, correct, or vacate a fee arbitration award between
an attorney and client that is binding or has become binding,
pursuant to Article 13 (commencing with Section 6200) of Chapter 4 of
Division 3 of the Business and Professions Code, where the
arbitration award is twenty-five thousand dollars ($25,000) or less.
(b) The following cases in equity are limited civil cases:
(1) A case to try title to personal property when the amount
involved is not more than twenty-five thousand dollars ($25,000).
(2) A case when equity is pleaded as a defensive matter in any
case that is otherwise a limited civil case.
(3) A case to vacate a judgment or order of the court obtained in
a limited civil case through extrinsic fraud, mistake, inadvertence,
or excusable neglect.
SEC. 23. Section 116.540 of the Code of Civil Procedure, as
amended by Section 43 of Chapter 181 of the Statutes of 2012, is
amended to read:
116.540. (a) Except as permitted by this section, no individual
other than the plaintiff and the defendant may take part in the
conduct or defense of a small claims action.
(b) Except as additionally provided in subdivision (i), a
corporation may appear and participate in a small claims action only
through a regular employee, or a duly appointed or elected officer or
director, who is employed, appointed, or elected for purposes other
than solely representing the corporation in small claims court.
(c) A party who is not a corporation or a natural person may
appear and participate in a small claims action only through a
regular employee, or a duly appointed or elected officer or director,
or in the case of a partnership, a partner, engaged for purposes
other than solely representing the party in small claims court.
(d) If a party is an individual doing business as a sole
proprietorship, the party may appear and participate in a small
claims action by a representative and without personally appearing if
both of the following conditions are met:
(1) The claim can be proved or disputed by evidence of an account
that constitutes a business record as defined in Section 1271 of the
Evidence Code, and there is no other issue of fact in the case.
(2) The representative is a regular employee of the party for
purposes other than solely representing the party in small claims
actions and is qualified to testify to the identity and mode of
preparation of the business record.
(e) A plaintiff is not required to personally appear, and may
submit declarations to serve as evidence supporting his or her claim
or allow another individual to appear and participate on his or her
behalf, if (1) the plaintiff is serving on active duty in the United
States Armed Forces outside this state, (2) the plaintiff was
assigned to his or her duty station after his or her claim arose, (3)
the assignment is for more than six months, (4) the representative
is serving without compensation, and (5) the representative has
appeared in small claims actions on behalf of others no more than
four times during the calendar year. The defendant may file a claim
in the same action in an amount not to exceed the jurisdictional
limits stated in Sections 116.220, 116.221, and 116.231.
(f) A party incarcerated in a county jail, a Department of
Corrections and Rehabilitation facility, or a Division of Juvenile
Facilities facility is not required to personally appear, and may
submit declarations to serve as evidence supporting his or her claim,
or may authorize another individual to appear and participate on his
or her behalf if that individual is serving without compensation and
has appeared in small claims actions on behalf of others no more
than four times during the calendar year.
(g) A defendant who is a nonresident owner of real property may
defend against a claim relating to that property without personally
appearing by (1) submitting written declarations to serve as evidence
supporting his or her defense, (2) allowing another individual to
appear and participate on his or her behalf if that individual is
serving without compensation and has appeared in small claims actions
on behalf of others no more than four times during the calendar
year, or (3) taking the
action described in both (1) and (2).
(h) A party who is an owner of rental real property may appear and
participate in a small claims action through a property agent under
contract with the owner to manage the rental of that property, if (1)
the owner has retained the property agent principally to manage the
rental of that property and not principally to represent the owner in
small claims court, and (2) the claim relates to the rental
property.
(i) A party that is an association created to manage a common
interest development, as defined in Section 4100 or in Sections 6528
and 6534 of the Civil Code, may appear and participate in a small
claims action through an agent, a management company representative,
or bookkeeper who appears on behalf of that association.
(j) At the hearing of a small claims action, the court shall
require any individual who is appearing as a representative of a
party under subdivisions (b) to (i), inclusive, to file a declaration
stating (1) that the individual is authorized to appear for the
party, and (2) the basis for that authorization. If the
representative is appearing under subdivision (b), (c), (d), (h), or
(i), the declaration also shall state that the individual is not
employed solely to represent the party in small claims court. If the
representative is appearing under subdivision (e), (f), or (g), the
declaration also shall state that the representative is serving
without compensation, and has appeared in small claims actions on
behalf of others no more than four times during the calendar year.
(k) A husband or wife who sues or who is sued with his or her
spouse may appear and participate on behalf of his or her spouse if
(1) the claim is a joint claim, (2) the represented spouse has given
his or her consent, and (3) the court determines that the interests
of justice would be served.
(l) If the court determines that a party cannot properly present
his or her claim or defense and needs assistance, the court may in
its discretion allow another individual to assist that party.
(m) Nothing in this section shall operate or be construed to
authorize an attorney to participate in a small claims action except
as expressly provided in Section 116.530.
SEC. 24. Section 12191 of the Government Code is amended to read:
12191. The miscellaneous business entity filing fees are the
following:
(a) Foreign associations, as defined in Sections 170 and 171 of
the Corporations Code:
(1) Filing the statement and designation upon the qualification of
a foreign association pursuant to Section 2105 of the Corporations
Code: One hundred dollars ($100).
(2) Filing an amended statement and designation by a foreign
association pursuant to Section 2107 of the Corporations Code: Thirty
dollars ($30).
(3) Filing a certificate showing the surrender of the right of a
foreign association to transact intrastate business pursuant to
Section 2112 of the Corporations Code: No fee.
(b) Unincorporated Associations:
(1) Filing a statement in accordance with Section 18200 of the
Corporations Code as to principal place of office or place for
sending notices or designating agent for service: Twenty-five dollars
($25).
(2) Insignia Registrations: Ten dollars ($10).
(c) Community Associations and Common Interest Developments:
(1) Filing a statement by a community association in accordance
with Section 5405 or 6760 of the Civil Code to register the common
interest development that it manages: An amount not to exceed thirty
dollars ($30).
(2) Filing an amended statement by a community association in
accordance with Section 5405 or 6760 of the Civil Code: No fee.
SEC. 25. Section 12956.1 of the Government Code, as amended by
Section 49 of Chapter 181 of the Statutes of 2012, is amended to
read:
12956.1. (a) As used in this section, "association," "governing
documents," and "declaration" have the same meanings as set forth in
Sections 4080, 4135, and 4150 or Sections 6528, 6546, and 6552 of the
Civil Code.
(b) (1) A county recorder, title insurance company, escrow
company, real estate broker, real estate agent, or association that
provides a copy of a declaration, governing document, or deed to any
person shall place a cover page or stamp on the first page of the
previously recorded document or documents stating, in at least
14-point boldface type, the following:
"If this document contains any restriction based on race, color,
religion, sex, gender, gender identity, gender expression, sexual
orientation, familial status, marital status, disability, genetic
information, national origin, source of income as defined in
subdivision (p) of Section 12955, or ancestry, that restriction
violates state and federal fair housing laws and is void, and may be
removed pursuant to Section 12956.2 of the Government Code. Lawful
restrictions under state and federal law on the age of occupants in
senior housing or housing for older persons shall not be construed as
restrictions based on familial status."
(2) The requirements of paragraph (1) shall not apply to documents
being submitted for recordation to a county recorder.
(c) Any person who records a document for the express purpose of
adding a racially restrictive covenant is guilty of a misdemeanor.
The county recorder shall not incur any liability for recording the
document. Notwithstanding any other provision of law, a prosecution
for a violation of this subdivision shall commence within three years
after the discovery of the recording of the document.
SEC. 26. Section 12956.2 of the Government Code, as amended by
Section 50 of Chapter 181 of the Statutes of 2012, is amended to
read:
12956.2. (a) A person who holds an ownership interest of record
in property that he or she believes is the subject of an unlawfully
restrictive covenant in violation of subdivision (l) of Section 12955
may record a document titled Restrictive Covenant Modification. The
county recorder may choose to waive the fee prescribed for recording
and indexing instruments pursuant to Section 27361 in the case of the
modification document provided for in this section. The modification
document shall include a complete copy of the original document
containing the unlawfully restrictive language with the unlawfully
restrictive language stricken.
(b) Before recording the modification document, the county
recorder shall submit the modification document and the original
document to the county counsel who shall determine whether the
original document contains an unlawful restriction based on race,
color, religion, sex, gender, gender identity, gender expression,
sexual orientation, familial status, marital status, disability,
national origin, source of income as defined in subdivision (p) of
Section 12955, or ancestry. The county counsel shall return the
documents and inform the county recorder of its determination. The
county recorder shall refuse to record the modification document if
the county counsel finds that the original document does not contain
an unlawful restriction as specified in this paragraph.
(c) The modification document shall be indexed in the same manner
as the original document being modified. It shall contain a recording
reference to the original document in the form of a book and page or
instrument number, and date of the recording.
(d) Subject to covenants, conditions, and restrictions that were
recorded after the recording of the original document that contains
the unlawfully restrictive language and subject to covenants,
conditions, and restrictions that will be recorded after the
Restrictive Covenant Modification, the restrictions in the
Restrictive Covenant Modification, once recorded, are the only
restrictions having effect on the property. The effective date of the
terms and conditions of the modification document shall be the same
as the effective date of the original document.
(e) The county recorder shall make available to the public
Restrictive Covenant Modification forms.
(f) If the holder of an ownership interest of record in property
causes to be recorded a modified document pursuant to this section
that contains modifications not authorized by this section, the
county recorder shall not incur liability for recording the document.
The liability that may result from the unauthorized recordation is
the sole responsibility of the holder of the ownership interest of
record who caused the modified recordation.
(g) This section does not apply to persons holding an ownership
interest in property that is part of a common interest development as
defined in Section 4100 or 6534 of the Civil Code if the board of
directors of that common interest development is subject to the
requirements of subdivision (b) of Section 4225 or of subdivision (b)
of Section 6606 of the Civil Code.
SEC. 27. Section 53341.5 of the Government Code, as amended by
Section 51 of Chapter 181 of the Statutes of 2012, is amended to
read:
53341.5. (a) If a lot, parcel, or unit of a subdivision is
subject to a special tax levied pursuant to this chapter, the
subdivider, his or her agent, or representative, shall not sell, or
lease for a term exceeding five years, or permit a prospective
purchaser or lessor to sign a contract of purchase or a deposit
receipt or any substantially equivalent document in the event of a
lease with respect to the lot, parcel, or unit, or cause it to be
sold or leased for a term exceeding five years, until the prospective
purchaser or lessee of the lot, parcel, or unit has been furnished
with and has signed a written notice as provided in this section. The
notice shall contain the heading "NOTICE OF SPECIAL TAX" in type no
smaller than 8-point type, and shall be in substantially the
following form. The form may be modified as needed to clearly and
accurately describe the tax structure and other characteristics of
districts created before January 1, 1993, or to clearly and
accurately consolidate information about the tax structure and other
characteristics of two or more districts that levy or are authorized
to levy special taxes with respect to the lot, parcel, or unit:
NOTICE OF SPECIAL TAX
COMMUNITY FACILITIES DISTRICT NO. ___
COUNTY OF ____, CALIFORNIA
TO: THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS:
__________________________________________________
__________________________________________________
THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR ENTERING INTO A
CONTRACT TO PURCHASE THIS PROPERTY. THE SELLER IS REQUIRED TO GIVE
YOU THIS NOTICE AND TO OBTAIN A COPY SIGNED BY YOU TO INDICATE THAT
YOU HAVE RECEIVED AND READ A COPY OF THIS NOTICE.
(1) This property is subject to a special tax, that is in addition
to the regular property taxes and any other charges, fees, special
taxes, and benefit assessments on the parcel. It is imposed on this
property because it is a new development, and is not necessarily
imposed generally upon property outside of this new development. If
you fail to pay this tax when due each year, the property may be
foreclosed upon and sold. The tax is used to provide public
facilities or services that are likely to particularly benefit the
property. YOU SHOULD TAKE THIS TAX AND THE BENEFITS FROM THE
FACILITIES AND SERVICES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING
WHETHER TO BUY THIS PROPERTY.
(2) The maximum special tax that may be levied against this parcel
to pay for public facilities is $______ during the ____-__ tax year.
This amount will increase by __ percent per year after that (if
applicable). The special tax will be levied each year until all of
the authorized facilities are built and all special tax bonds are
repaid, but in any case not after the ____-__ tax year. An additional
special tax will be used to pay for ongoing service costs, if
applicable. The maximum amount of this tax is ____ dollars ($____)
during the ____-__ tax year. This amount may increase by ____, if
applicable, and that part may be levied until the ____-__ tax year
(or forever, as applicable).
(3) The authorized facilities that are being paid for by the
special taxes, and by the money received from the sale of bonds that
are being repaid by the special taxes, are:
These facilities may not yet have all been constructed or acquired
and it is possible that some may never be constructed or acquired.
In addition, the special taxes may be used to pay for costs of the
following services:
YOU MAY OBTAIN A COPY OF THE RESOLUTION OF FORMATION THAT
AUTHORIZED CREATION OF THE COMMUNITY FACILITIES DISTRICT, AND THAT
SPECIFIES MORE PRECISELY HOW THE SPECIAL TAX IS APPORTIONED AND HOW
THE PROCEEDS OF THE TAX WILL BE USED, FROM THE ____ (name of
jurisdiction) BY CALLING ____ (telephone number). THERE MAY BE A
CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE REASONABLE COST OF
PROVIDING THE DOCUMENT.
I (WE) ACKNOWLEDGE THAT I (WE) HAVE READ THIS NOTICE AND RECEIVED
A COPY OF THIS NOTICE PRIOR TO ENTERING INTO A CONTRACT TO PURCHASE
OR SIGNING A DEPOSIT RECEIPT WITH RESPECT TO THE ABOVE-REFERENCED
PROPERTY. I (WE) UNDERSTAND THAT I (WE) MAY TERMINATE THE CONTRACT TO
PURCHASE OR DEPOSIT RECEIPT WITHIN THREE DAYS AFTER RECEIVING THIS
NOTICE IN PERSON OR WITHIN FIVE DAYS AFTER IT WAS DEPOSITED IN THE
MAIL BY GIVING WRITTEN NOTICE OF THAT TERMINATION TO THE OWNER,
SUBDIVIDER, OR AGENT SELLING THE PROPERTY.
DATE: _______________________
________________________ ____
________________________ _______________________
____
________________________ _______________________
____
(b) "Subdivision," as used in subdivision (a), means improved or
unimproved land that is divided or proposed to be divided for the
purpose of sale, lease, or financing, whether immediate or future,
into two or more lots, parcels, or units and includes a condominium
project, as defined by Section 4125 or 6542 of the Civil Code, a
community apartment project, a stock cooperative, and a
limited-equity housing cooperative, as defined in Sections 11004,
11003.2, and 11003.4, respectively, of the Business and Professions
Code.
(c) The buyer shall have three days after delivery in person or
five days after delivery by deposit in the mail of any notice
required by this section, to terminate his or her agreement by
delivery of written notice of that termination to the owner,
subdivider, or agent.
(d) The failure to furnish the notice to the buyer or lessee, and
failure of the buyer or lessee to sign the notice of a special tax,
shall not invalidate any grant, conveyance, lease, or encumbrance.
(e) Any person or entity who willfully violates the provisions of
this section shall be liable to the purchaser of a lot or unit that
is subject to the provisions of this section, for actual damages, and
in addition thereto, shall be guilty of a public offense punishable
by a fine in an amount not to exceed five hundred dollars ($500). In
an action to enforce a liability or fine, the prevailing party shall
be awarded reasonable attorney's fees.
SEC. 28. Section 65008 of the Government Code, as amended by
Section 52 of Chapter 181 of the Statutes of 2012, is amended to
read:
65008. (a) Any action pursuant to this title by any city, county,
city and county, or other local governmental agency in this state is
null and void if it denies to any individual or group of individuals
the enjoyment of residence, landownership, tenancy, or any other
land use in this state because of any of the following reasons:
(1) (A) The lawful occupation, age, or any characteristic of the
individual or group of individuals listed in subdivision (a) or (d)
of Section 12955, as those bases are defined in Sections 12926,
12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
Section 12955 and Section 12955.2.
(B) Notwithstanding subparagraph (A), with respect to familial
status, subparagraph (A) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9. With respect to
familial status, nothing in subparagraph (A) shall be construed to
affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the
Civil Code, relating to housing for senior citizens. Subdivision (d)
of Section 51, Section 4760, and Section 6714 of the Civil Code, and
subdivisions (n), (o), and (p) of Section 12955 of this code shall
apply to subparagraph (A).
(2) The method of financing of any residential development of the
individual or group of individuals.
(3) The intended occupancy of any residential development by
persons or families of very low, low, moderate, or middle income.
(b) (1) No city, county, city and county, or other local
governmental agency shall, in the enactment or administration of
ordinances pursuant to any law, including this title, prohibit or
discriminate against any residential development or emergency shelter
for any of the following reasons:
(A) Because of the method of financing.
(B) (i) Because of the lawful occupation, age, or any
characteristic listed in subdivision (a) or (d) of Section 12955, as
those characteristics are defined in Sections 12926, 12926.1,
subdivision (m) and paragraph (1) of subdivision (p) of Section
12955, and Section 12955.2 of the owners or intended occupants of the
residential development or emergency shelter.
(ii) Notwithstanding clause (i), with respect to familial status,
clause (i) shall not be construed to apply to housing for older
persons, as defined in Section 12955.9. With respect to familial
status, nothing in clause (i) shall be construed to affect Sections
51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating
to housing for senior citizens. Subdivision (d) of Section 51,
Section 4760, and Section 6714 of the Civil Code, and subdivisions
(n), (o), and (p) of Section 12955 of this code shall apply to clause
(i).
(C) Because the development or shelter is intended for occupancy
by persons and families of very low, low, or moderate income, as
defined in Section 50093 of the Health and Safety Code, or persons
and families of middle income.
(D) Because the development consists of a multifamily residential
project that is consistent with both the jurisdiction's zoning
ordinance and general plan as they existed on the date the
application was deemed complete, except that a project shall not be
deemed to be inconsistent with the zoning designation for the site if
that zoning designation is inconsistent with the general plan only
because the project site has not been rezoned to conform with a more
recently adopted general plan.
(2) The discrimination prohibited by this subdivision includes the
denial or conditioning of a residential development or shelter
because of, in whole or in part, either of the following:
(A) The method of financing.
(B) The occupancy of the development by persons protected by this
subdivision, including, but not limited to, persons and families of
very low, low, or moderate income.
(3) A city, county, city and county, or other local government
agency may not, pursuant to subdivision (d) of Section 65589.5,
disapprove a housing development project or condition approval of a
housing development project in a manner that renders the project
infeasible if the basis for the disapproval or conditional approval
includes any of the reasons prohibited in paragraph (1) or (2).
(c) For the purposes of this section, "persons and families of
middle income" means persons and families whose income does not
exceed 150 percent of the median income for the county in which the
persons or families reside.
(d) (1) No city, county, city and county, or other local
governmental agency may impose different requirements on a
residential development or emergency shelter that is subsidized,
financed, insured, or otherwise assisted by the federal or state
government or by a local public entity, as defined in Section 50079
of the Health and Safety Code, than those imposed on nonassisted
developments, except as provided in subdivision (e). The
discrimination prohibited by this subdivision includes the denial or
conditioning of a residential development or emergency shelter based
in whole or in part on the fact that the development is subsidized,
financed, insured, or otherwise assisted as described in this
paragraph.
(2) (A) No city, county, city and county, or other local
governmental agency may, because of the lawful occupation age, or any
characteristic of the intended occupants listed in subdivision (a)
or (d) of Section 12955, as those characteristics are defined in
Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
subdivision (p) of Section 12955, and Section 12955.2 or because the
development is intended for occupancy by persons and families of very
low, low, moderate, or middle income, impose different requirements
on these residential developments than those imposed on developments
generally, except as provided in subdivision (e).
(B) Notwithstanding subparagraph (A), with respect to familial
status, subparagraph (A) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9. With respect to
familial status, nothing in subparagraph (A) shall be construed to
affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the
Civil Code, relating to housing for senior citizens. Subdivision (d)
of Section 51, Section 4760, and Section 6714 of the Civil Code, and
subdivisions (n), (o), and (p) of Section 12955 of this code shall
apply to subparagraph (A).
(e) Notwithstanding subdivisions (a) to (d), inclusive, this
section and this title do not prohibit either of the following:
(1) The County of Riverside from enacting and enforcing zoning to
provide housing for older persons, in accordance with state or
federal law, if that zoning was enacted prior to January 1, 1995.
(2) Any city, county, or city and county from extending
preferential treatment to residential developments or emergency
shelters assisted by the federal or state government or by a local
public entity, as defined in Section 50079 of the Health and Safety
Code, or other residential developments or emergency shelters
intended for occupancy by persons and families of low and moderate
income, as defined in Section 50093 of the Health and Safety Code, or
persons and families of middle income, or agricultural employees, as
defined in subdivision (b) of Section 1140.4 of the Labor Code, and
their families. This preferential treatment may include, but need not
be limited to, reduction or waiver of fees or changes in
architectural requirements, site development and property line
requirements, building setback requirements, or vehicle parking
requirements that reduce development costs of these developments.
(f) "Residential development," as used in this section, means a
single-family residence or a multifamily residence, including
manufactured homes, as defined in Section 18007 of the Health and
Safety Code.
(g) This section shall apply to chartered cities.
(h) The Legislature finds and declares that discriminatory
practices that inhibit the development of housing for persons and
families of very low, low, moderate, and middle incomes, or emergency
shelters for the homeless, are a matter of statewide concern.
SEC. 29. Section 66411 of the Government Code, as amended by
Section 55 of Chapter 181 of the Statutes of 2012, is amended to
read:
66411. Regulation and control of the design and improvement of
subdivisions are vested in the legislative bodies of local agencies.
Each local agency shall, by ordinance, regulate and control the
initial design and improvement of common interest developments as
defined in Section 4100 or 6534 of the Civil Code and subdivisions
for which this division requires a tentative and final or parcel map.
In the development, adoption, revision, and application of this type
of ordinance, the local agency shall comply with the provisions of
Section 65913.2. The ordinance shall specifically provide for proper
grading and erosion control, including the prevention of
sedimentation or damage to offsite property. Each local agency may by
ordinance regulate and control other subdivisions, provided that the
regulations are not more restrictive than the regulations for those
subdivisions for which a tentative and final or parcel map are
required by this division, and provided further that the regulations
shall not be applied to short-term leases (terminable by either party
on not more than 30 days' notice in writing) of a portion of the
operating right-of-way of a railroad corporation as defined by
Section 230 of the Public Utilities Code unless a showing is made in
individual cases, under substantial evidence, that public policy
necessitates the application of the regulations to those short-term
leases in individual cases.
SEC. 30. Section 66412 of the Government Code, as amended by
Section 56 of Chapter 181 of the Statutes of 2012, is amended to
read:
66412. This division shall be inapplicable to any of the
following:
(a) The financing or leasing of apartments, offices, stores, or
similar space within apartment buildings, industrial buildings,
commercial buildings, mobilehome parks, or trailer parks.
(b) Mineral, oil, or gas leases.
(c) Land dedicated for cemetery purposes under the Health and
Safety Code.
(d) A lot line adjustment between four or fewer existing adjoining
parcels, where the land taken from one parcel is added to an
adjoining parcel, and where a greater number of parcels than
originally existed is not thereby created, if the lot line adjustment
is approved by the local agency, or advisory agency. A local agency
or advisory agency shall limit its review and approval to a
determination of whether or not the parcels resulting from the lot
line adjustment will conform to the local general plan, any
applicable specific plan, any applicable coastal plan, and zoning and
building ordinances. An advisory agency or local agency shall not
impose conditions or exactions on its approval of a lot line
adjustment except to conform to the local general plan, any
applicable specific plan, any applicable coastal plan, and zoning and
building ordinances, to require the prepayment of real property
taxes prior to the approval of the lot line adjustment, or to
facilitate the relocation of existing utilities, infrastructure, or
easements. No tentative map, parcel map, or final map shall be
required as a condition to the approval of a lot line adjustment. The
lot line adjustment shall be reflected in a deed, which shall be
recorded. No record of survey shall be required for a lot line
adjustment unless required by Section 8762 of the Business and
Professions Code. A local agency shall approve or disapprove
a lot line adjustment pursuant to
the Permit Streamlining Act (Chapter 4.5 (commencing with Section
65920) of Division 1).
(e) Boundary line or exchange agreements to which the State Lands
Commission or a local agency holding a trust grant of tide and
submerged lands is a party.
(f) Any separate assessment under Section 2188.7 of the Revenue
and Taxation Code.
(g) The conversion of a community apartment project, as defined in
Section 4105 of the Civil Code, to a condominium, as defined in
Section 783 of the Civil Code, but only if all of the following
requirements are met:
(1) The property was subdivided before January 1, 1982, as
evidenced by a recorded deed creating the community apartment
project.
(2) Subject to compliance with Sections 4290 and 4295 of the Civil
Code, all conveyances and other documents necessary to effectuate
the conversion shall be executed by the required number of owners in
the project as specified in the bylaws or other organizational
documents. If the bylaws or other organizational documents do not
expressly specify the number of owners necessary to execute the
conveyances and other documents, a majority of owners in the project
shall be required to execute the conveyances or other documents.
Conveyances and other documents executed under the foregoing
provisions shall be binding upon and affect the interests of all
parties in the project.
(3) If subdivision, as defined in Section 66424, of the property
occurred after January 1, 1964, both of the following requirements
are met:
(A) A final or parcel map of that subdivision was approved by the
local agency and recorded, with all of the conditions of that map
remaining in effect after the conversion.
(B) No more than 49 percent of the units in the project were owned
by any one person as defined in Section 17, including an
incorporator or director of the community apartment project, on
January 1, 1982.
(4) The local agency certifies that the above requirements were
satisfied if the local agency, by ordinance, provides for that
certification.
(h) The conversion of a stock cooperative, as defined in Section
4190 or 6566 of the Civil Code, to a condominium, as defined in
Section 783 of the Civil Code, but only if all of the following
requirements are met:
(1) The property was subdivided before January 1, 1982, as
evidenced by a recorded deed creating the stock cooperative, an
assignment of lease, or issuance of shares to a stockholder.
(2) A person renting a unit in a cooperative shall be entitled at
the time of conversion to all tenant rights in state or local law,
including, but not limited to, rights respecting first refusal,
notice, and displacement and relocation benefits.
(3) Subject to compliance with Sections 4290 and 4295, or with
Sections 6626 and 6628, of the Civil Code, all conveyances and other
documents necessary to effectuate the conversion shall be executed by
the required number of owners in the cooperative as specified in the
bylaws or other organizational documents. If the bylaws or other
organizational documents do not expressly specify the number of
owners necessary to execute the conveyances and other documents, a
majority of owners in the cooperative shall be required to execute
the conveyances or other documents. Conveyances and other documents
executed under the foregoing provisions shall be binding upon and
affect the interests of all parties in the cooperative.
(4) If subdivision, as defined in Section 66424, of the property
occurred after January 1, 1980, both of the following requirements
are met:
(A) A final or parcel map of that subdivision was approved by the
local agency and recorded, with all of the conditions of that map
remaining in effect after the conversion.
(B) No more than 49 percent of the shares in the project were
owned by any one person as defined in Section 17, including an
incorporator or director of the cooperative, on January 1, 1982.
(5) The local agency certifies that the above requirements were
satisfied if the local agency, by ordinance, provides for that
certification.
(i) The leasing of, or the granting of an easement to, a parcel of
land, or any portion or portions thereof, in conjunction with the
financing, erection, and sale or lease of a wind powered electrical
generation device on the land, if the project is subject to
discretionary action by the advisory agency or legislative body.
(j) The leasing or licensing of a portion of a parcel, or the
granting of an easement, use permit, or similar right on a portion of
a parcel, to a telephone corporation as defined in Section 234 of
the Public Utilities Code, exclusively for the placement and
operation of cellular radio transmission facilities, including, but
not limited to, antennae support structures, microwave dishes,
structures to house cellular communications transmission equipment,
power sources, and other equipment incidental to the transmission of
cellular communications, if the project is subject to discretionary
action by the advisory agency or legislative body.
(k) Leases of agricultural land for agricultural purposes. As used
in this subdivision, "agricultural purposes" means the cultivation
of food or fiber, or the grazing or pasturing of livestock.
(l) The leasing of, or the granting of an easement to, a parcel of
land, or any portion or portions thereof, in conjunction with the
financing, erection, and sale or lease of a solar electrical
generation device on the land, if the project is subject to review
under other local agency ordinances regulating design and improvement
or, if the project is subject to other discretionary action by the
advisory agency or legislative body.
(m) The leasing of, or the granting of an easement to, a parcel of
land or any portion or portions of the land in conjunction with a
biogas project that uses, as part of its operation, agricultural
waste or byproducts from the land where the project is located and
reduces overall emissions of greenhouse gases from agricultural
operations on the land if the project is subject to review under
other local agency ordinances regulating design and improvement or if
the project is subject to discretionary action by the advisory
agency or legislative body.
SEC. 31. Section 66424 of the Government Code, as amended by
Section 57 of Chapter 181 of the Statutes of 2012, is amended to
read:
66424. "Subdivision" means the division, by any subdivider, of
any unit or units of improved or unimproved land, or any portion
thereof, shown on the latest equalized county assessment roll as a
unit or as contiguous units, for the purpose of sale, lease, or
financing, whether immediate or future. Property shall be considered
as contiguous units, even if it is separated by roads, streets,
utility easement, or railroad rights-of-way. "Subdivision" includes a
condominium project, as defined in Section 4125 or 6542 of the Civil
Code, a community apartment project, as defined in Section 4105 of
the Civil Code, or the conversion of five or more existing dwelling
units to a stock cooperative, as defined in of Section 4190 or 6566
of the Civil Code.
SEC. 32. Section 66427 of the Government Code, as amended by
Section 58 of Chapter 181 of the Statutes of 2012, is amended to
read:
66427. (a) A map of a condominium project, a community apartment
project, or of the conversion of five or more existing dwelling units
to a stock cooperative project need not show the buildings or the
manner in which the buildings or the airspace above the property
shown on the map are to be divided, nor shall the governing body have
the right to refuse approval of a parcel, tentative, or final map of
the project on account of the design or the location of buildings on
the property shown on the map that are not violative of local
ordinances or on account of the manner in which airspace is to be
divided in conveying the condominium.
(b) A map need not include a condominium plan or plans, as defined
in Section 4120 or 6540 of the Civil Code, and the governing body
may not refuse approval of a parcel, tentative, or final map of the
project on account of the absence of a condominium plan.
(c) Fees and lot design requirements shall be computed and imposed
with respect to those maps on the basis of parcels or lots of the
surface of the land shown thereon as included in the project.
(d) Nothing herein shall be deemed to limit the power of the
legislative body to regulate the design or location of buildings in a
project by or pursuant to local ordinances.
(e) If the governing body has approved a parcel map or final map
for the establishment of condominiums on property pursuant to the
requirements of this division, the separation of a three-dimensional
portion or portions of the property from the remainder of the
property or the division of that three-dimensional portion or
portions into condominiums shall not constitute a further subdivision
as defined in Section 66424, provided each of the following
conditions has been satisfied:
(1) The total number of condominiums established is not increased
above the number authorized by the local agency in approving the
parcel map or final map.
(2) A perpetual estate or an estate for years in the remainder of
the property is held by the condominium owners in undivided interests
in common, or by an association as defined in Section 4100 or 6528
of the Civil Code, and the duration of the estate in the remainder of
the property is the same as the duration of the estate in the
condominiums.
(3) The three-dimensional portion or portions of property are
described on a condominium plan or plans, as defined in Section 4120
or 6540 of the Civil Code.
SEC. 33. Section 66452.10 of the Government Code, as amended by
Section 59 of Chapter 181 of the Statutes of 2012, is amended to
read:
66452.10. A stock cooperative, as defined in Section 11003.2 of
the Business and Professions Code, or a community apartment project,
as defined in Section 11004 of the Business and Professions Code,
shall not be converted to a condominium, as defined in Section 783 of
the Civil Code, unless the required number of (1) owners and (2)
trustees or beneficiaries of each recorded deed of trust and
mortgagees of each recorded mortgage in the cooperative or project,
as specified in the bylaws, or other organizational documents, have
voted in favor of the conversion. If the bylaws or other
organizational documents do not expressly specify the number of votes
required to approve the conversion, a majority vote of the (1)
owners and (2) trustees or beneficiaries of each recorded deed of
trust and mortgagees of each recorded mortgage in the cooperative or
project shall be required. Upon approval of the conversion as set
forth above and in compliance with Sections 4290 and 4295 or Sections
6626 and 6628 of the Civil Code, all conveyances and other documents
necessary to effectuate the conversion shall be executed by the
required number of owners in the cooperative or project as specified
in the bylaws or other organizational documents. If the bylaws or
other organizational documents do not expressly specify the number of
owners necessary to execute the conveyances or other documents, a
majority of owners in the cooperative or project shall be required to
execute the conveyances and other documents. Conveyances and other
documents executed under the foregoing provisions shall be binding
upon and affect the interests of all parties in the cooperative or
project. The provisions of Section 66499.31 shall not apply to a
violation of this section.
SEC. 34. Section 66475.2 of the Government Code, as amended by
Section 60 of Chapter 181 of the Statutes of 2012, is amended to
read:
66475.2. (a) There may be imposed by local ordinance a
requirement of a dedication or an irrevocable offer of dedication of
land within the subdivision for local transit facilities such as bus
turnouts, benches, shelters, landing pads, and similar items that
directly benefit the residents of a subdivision. The irrevocable
offers may be terminated as provided in subdivisions (c) and (d) of
Section 66477.2.
(b) Only the payment of fees in lieu of the dedication of land may
be required in subdivisions that consist of the subdivision of
airspace in existing buildings into condominium projects, stock
cooperatives, or community apartment projects, as those terms are
defined in Sections 4105, 4125, and 4190 or Sections 6542 and 6566 of
the Civil Code.
SEC. 35. Section 13132.7 of the Health and Safety Code, as amended
by Section 63 of Chapter 181 of the Statutes of 2012, is amended to
read:
13132.7. (a) Within a very high fire hazard severity zone
designated by the Director of Forestry and Fire Protection pursuant
to Article 9 (commencing with Section 4201) of Chapter 1 of Part 2 of
Division 4 of the Public Resources Code and within a very high
hazard severity zone designated by a local agency pursuant to Chapter
6.8 (commencing with Section 51175) of Part 1 of Division 1 of Title
5 of the Government Code, the entire roof covering of every existing
structure where more than 50 percent of the total roof area is
replaced within any one-year period, every new structure, and any
roof covering applied in the alteration, repair, or replacement of
the roof of every existing structure, shall be a fire retardant roof
covering that is at least class B as defined in the Uniform Building
Code, as adopted and amended by the State Building Standards
Commission.
(b) In all other areas, the entire roof covering of every existing
structure where more than 50 percent of the total roof area is
replaced within any one-year period, every new structure, and any
roof covering applied in the alteration, repair, or replacement of
the roof of every existing structure, shall be a fire retardant roof
covering that is at least class C as defined in the Uniform Building
Code, as adopted and amended by the State Building Standards
Commission.
(c) Notwithstanding subdivision (b), within state responsibility
areas classified by the State Board of Forestry and Fire Protection
pursuant to Article 3 (commencing with Section 4125) of Chapter 1 of
Part 2 of Division 4 of the Public Resources Code, except for those
state responsibility areas designated as moderate fire hazard
responsibility zones, the entire roof covering of every existing
structure where more than 50 percent of the total roof area is
replaced within any one-year period, every new structure, and any
roof covering applied in the alteration, repair, or replacement of
the roof of every existing structure, shall be a fire retardant roof
covering that is at least class B as defined in the Uniform Building
Code, as adopted and amended by the State Building Standards
Commission.
(d) (1) Notwithstanding subdivision (a), (b), or (c), within very
high fire hazard severity zones designated by the Director of
Forestry and Fire Protection pursuant to Article 9 (commencing with
Section 4201) of Chapter 1 of Part 2 of Division 4 of the Public
Resources Code or by a local agency pursuant to Chapter 6.8
(commencing with Section 51175) of Part 1 of Division 1 of Title 5 of
the Government Code, the entire roof covering of every existing
structure where more than 50 percent of the total roof area is
replaced within any one-year period, every new structure, and any
roof covering applied in the alteration, repair, or replacement of
the roof of every existing structure, shall be a fire retardant roof
covering that is at least class A as defined in the Uniform Building
Code, as adopted and amended by the State Building Standards
Commission.
(2) Paragraph (1) does not apply to any jurisdiction containing a
very high fire hazard severity zone if the jurisdiction fulfills both
of the following requirements:
(A) Adopts the model ordinance approved by the State Fire Marshal
pursuant to Section 51189 of the Government Code or an ordinance that
substantially conforms to the model ordinance of the State Fire
Marshal.
(B) Transmits, upon adoption, a copy of the ordinance to the State
Fire Marshal.
(e) The State Building Standards Commission shall incorporate the
requirements set forth in subdivisions (a), (b), and (c) by
publishing them as an amendment to the California Building Standards
Code in accordance with Chapter 4 (commencing with Section 18935) of
Part 2.5 of Division 13.
(f) Nothing in this section shall limit the authority of a city,
county, city and county, or fire protection district in establishing
more restrictive requirements, in accordance with current law, than
those specified in this section.
(g) This section shall not affect the validity of an ordinance,
adopted prior to the effective date for the relevant roofing standard
specified in subdivisions (a) and (b), by a city, county, city and
county, or fire protection district, unless the ordinance mandates a
standard that is less stringent than the standards set forth in
subdivision (a), in which case the ordinance shall not be valid on or
after the effective date for the relevant roofing standard specified
in subdivisions (a) and (b).
(h) Any qualified historical building or structure as defined in
Section 18955 may, on a case-by-case basis, utilize alternative roof
constructions as provided by the State Historical Building Code.
(i) The installer of the roof covering shall provide certification
of the roof covering classification, as provided by the manufacturer
or supplier, to the building owner and, when requested, to the
agency responsible for enforcement of this part. The installer shall
also install the roof covering in accordance with the manufacturer's
listing.
(j) No wood roof covering materials shall be sold or applied in
this state unless both of the following conditions are met:
(1) The materials have been approved and listed by the State Fire
Marshal as complying with the requirements of this section.
(2) The materials have passed at least 5 years of the 10-year
natural weathering test. The 10-year natural weathering test required
by this subdivision shall be conducted in accordance with standard
15-2 of the 1994 edition of the Uniform Building Code at a testing
facility recognized by the State Fire Marshal.
(k) The Insurance Commissioner shall accept the use of fire
retardant wood roof covering material that complies with the
requirements of this section, used in the partial repair or
replacement of nonfire retardant wood roof covering material, as
complying with the requirement in Section 2695.9 of Title 10 of the
California Code of Regulations relative to matching replacement items
in quality, color, and size.
( l ) No common interest development, as defined in
Section 4100 or 6534 of the Civil Code, may require an owner to
install or repair a roof in a manner that is in violation of this
section. The governing documents, as defined in Section 4150 or 6552
of the Civil Code, of a common interest development within a very
high fire severity zone shall allow for at least one type of fire
retardant roof covering material that meets the requirements of this
section.
SEC. 36. Section 19850 of the Health and Safety Code, as amended
by Section 64 of Chapter 181 of the Statutes of 2012, is amended to
read:
19850. The building department of every city or county shall
maintain an official copy, which may be on microfilm or other type of
photographic copy, of the plans of every building, during the life
of the building, for which the department issued a building permit.
"Building department" means the department, bureau, or officer
charged with the enforcement of laws or ordinances regulating the
erection, construction, or alteration of buildings.
Except for plans of a common interest development as defined in
Section 4100 or 6534 of the Civil Code, plans need not be filed for:
(a) Single or multiple dwellings not more than two stories and
basement in height.
(b) Garages and other structures appurtenant to buildings
described under subdivision (a).
(c) Farm or ranch buildings.
(d) Any one-story building where the span between bearing walls
does not exceed 25 feet. The exemption in this subdivision does not,
however, apply to a steel frame or concrete building.
SEC. 37. Section 25400.22 of the Health and Safety Code, as
amended by Section 65 of Chapter 181 of the Statutes of 2012, is
amended to read:
25400.22. (a) No later than 10 working days after the date when a
local health officer determines that property is contaminated
pursuant to subdivision (b) of Section 25400.20, the local health
officer shall do all of the following:
(1) Except as provided in paragraph (2), if the property is real
property, record with the county recorder a lien on the property. The
lien shall specify all of the following:
(A) The name of the agency on whose behalf the lien is imposed.
(B) The date on which the property is determined to be
contaminated.
(C) The legal description of the real property and the assessor's
parcel number.
(D) The record owner of the property.
(E) The amount of the lien, which shall be the greater of two
hundred dollars ($200) or the costs incurred by the local health
officer in compliance with this chapter, including, but not limited
to, the cost of inspection performed pursuant to Section 25400.19 and
the county recorder's fee.
(2) (A) If the property is a mobilehome or manufactured home
specified in paragraph (2) of subdivision (t) of Section 25400.11,
amend the permanent record with a restraint on the mobilehome, or
manufactured home with the Department of Housing and Community
Development, in the form prescribed by that department, providing
notice of the determination that the property is contaminated.
(B) If the property is a recreational vehicle specified in
paragraph (2) of subdivision (t) of Section 25400.11, perfect by
filing with the Department of Motor Vehicles a vehicle license stop
on the recreational vehicle in the form prescribed by that
department, providing notice of the determination that the property
is contaminated.
(C) If the property is a mobilehome or manufactured home, not
subject to paragraph (2) of subdivision (t) of Section 25400.11, is
located on real property, and is not attached to that real property,
the local health officer shall record a lien for the real property
with the county recorder, and the Department of Housing and Community
Development shall amend the permanent record with a restraint for
the mobilehome or manufactured home, in the form and with the
contents prescribed by that department.
(3) A lien, restraint, or vehicle license stop issued pursuant to
paragraph (2) shall specify all of the following:
(A) The name of the agency on whose behalf the lien, restraint, or
vehicle license stop is imposed.
(B) The date on which the property is determined to be
contaminated.
(C) The legal description of the real property and the assessor's
parcel number, and the mailing and street address or space number of
the manufactured home, mobilehome, or recreational vehicle or the
vehicle identification number of the recreational vehicle, if
applicable.
(D) The registered owner of the mobilehome, manufactured home, or
recreational vehicle, if applicable, or the name of the owner of the
real property as indicated in the official county records.
(E) The amount of the lien, if applicable, which shall be the
greater of two hundred dollars ($200) or the costs incurred by the
local health officer in compliance with this chapter, including, but
not limited to, the cost of inspection performed pursuant to Section
25400.19 and the fee charged by the Department of Housing and
Community Development and the Department of Motor Vehicles pursuant
to paragraph (2) of subdivision (b).
(F) Other information required by the county recorder for the
lien, the Department of Housing and Community Development for the
restraint, or the Department of Motor Vehicles for the vehicle
license stop.
(4) Issue to persons specified in subdivisions (d), (e), and (f)
an order prohibiting the use or occupancy of the contaminated
portions of the property.
(b) (1) The county recorder's fees for recording and indexing
documents provided for in this section shall be in the amount
specified in Article 5 (commencing with Section 27360) of Chapter 6
of Part 3 of Title 3 of the Government Code.
(2) The Department of Housing and Community Development and the
Department of Motor Vehicles may charge a fee to cover its
administrative costs for recording and indexing documents provided
for in paragraph (2) of subdivision (a).
(c) (1) A lien recorded pursuant to subdivision (a) shall have the
force, effect, and priority of a judgment lien. The restraint
amending the permanent record pursuant to subdivision (a) shall be
displayed on any manufactured home or mobilehome title search until
the restraint is released. The vehicle license stop shall remain in
effect until it is released.
(2) The local health officer shall not authorize the release of a
lien, restraint, or vehicle license stop made pursuant to subdivision
(a), until one of the following occurs:
(A) The property owner satisfies the real property lien, or the
contamination in the mobilehome, manufactured home, or recreational
vehicle is abated to the satisfaction of the local health officer
consistent with the notice in the restraint, or vehicle license stop
and the local health officer issues a release pursuant to Section
25400.27.
(B) For a manufactured home or mobilehome, the local health
officer determines that the unit will be destroyed or permanently
salvaged. For the purposes of this paragraph, the unit shall not be
reregistered after this determination is made unless the local health
officer issues a release pursuant to Section 25400.27.
(C) The lien, restraint, or vehicle license stop is extinguished
by a senior lien in a foreclosure sale.
(d) Except as otherwise specified in this section, an order issued
pursuant to this section shall be served, either personally or by
certified mail, return receipt requested, in the following manner:
(1) For real property, to all known occupants of the property and
to all persons who have an interest in the property, as contained in
the records of the recorder's office of the county in which the
property is located.
(2) In the case of a mobilehome or manufactured home, the order
shall be served to the legal owner, as defined in Section 18005.8,
each junior lienholder, as defined in Section 18005.3, and the
registered owner, as defined in Section 18009.5.
(3) In the case of a recreational vehicle, the order shall be
served on the legal owner, as defined in Section 370 of the Vehicle
Code, and the registered
owner, as defined in Section 505 of the Vehicle Code.
(e) If the whereabouts of the person described in subdivision (d)
are unknown and cannot be ascertained by the local health officer, in
the exercise of reasonable diligence, and the local health officer
makes an affidavit to that effect, the local health officer shall
serve the order by personal service or by mailing a copy of the order
by certified mail, postage prepaid, return receipt requested, as
follows:
(1) The order related to real property shall be served to each
person at the address appearing on the last equalized tax assessment
roll of the county where the property is located, and to all
occupants of the affected unit.
(2) In the case of a mobilehome or manufactured home, the order
shall be served to the legal owner, as defined in Section 18005.8,
each junior lienholder, as defined in Section 18005.3, and the
registered owner, as defined in Section 18009.5, at the address
appearing on the permanent record and all occupants of the affected
unit at the mobilehome park space.
(3) In the case of a recreational vehicle, the order shall be
served on the legal owner, as defined in Section 370 of the Vehicle
Code, and the registered owner, as defined in Section 505 of the
Vehicle Code, at the address appearing on the permanent record and
all occupants of the affected vehicle at the mobilehome park or
special occupancy park space.
(f) (1) The local health officer shall also mail a copy of the
order required by this section to the address of each person or party
having a recorded right, title, estate, lien, or interest in the
property and to the association of a common interest development, as
defined in Sections 4080 and 4100 or Sections 6528 and 6534 of the
Civil Code.
(2) In addition to the requirements of paragraph (1), if the
affected property is a mobilehome, manufactured home, or recreational
vehicle, specified in paragraph (2) of subdivision (t) of Section
25400.11, the order issued by the local health officer shall also be
served, either personally or by certified mail, return receipt
requested, to the owner of the mobilehome park or special occupancy
park.
(g) The order issued pursuant to this section shall include all of
the following information:
(1) A description of the property.
(2) The parcel identification number, address, or space number, if
applicable.
(3) The vehicle identification number, if applicable.
(4) A description of the local health officer's intended course of
action.
(5) A specification of the penalties for noncompliance with the
order.
(6) A prohibition on the use of all or portions of the property
that are contaminated.
(7) A description of the measures the property owner is required
to take to decontaminate the property.
(8) An indication of the potential health hazards involved.
(9) A statement that a property owner who fails to provide a
notice or disclosure that is required by this chapter is subject to a
civil penalty of up to five thousand dollars ($5,000).
(h) The local health officer shall provide a copy of the order to
the local building or code enforcement agency or other appropriate
agency responsible for the enforcement of the State Housing Law (Part
1.5 (commencing with Section 17910) of Division 13).
(i) The local health officer shall post the order in a conspicuous
place on the property within one working day of the date that the
order is issued.
SEC. 38. Section 25915.2 of the Health and Safety Code, as amended
by Section 66 of Chapter 181 of the Statutes of 2012, is amended to
read:
25915.2. (a) Notice provided pursuant to this chapter shall be
provided in writing to each individual employee, and shall be mailed
to other owners designated to receive the notice pursuant to
subdivision (a) of Section 25915.5, within 15 days of the first
receipt by the owner of information identifying the presence or
location of asbestos-containing construction materials in the
building. This notice shall be provided annually thereafter. In
addition, if new information regarding those items specified in
paragraphs (1) to (5), inclusive, of subdivision (a) of Section 25915
has been obtained within 90 days after the notice required by this
subdivision is provided or any subsequent 90-day period, then a
supplemental notice shall be provided within 15 days of the close of
that 90-day period.
(b) Notice provided pursuant to this chapter shall be provided to
new employees within 15 days of commencement of work in the building.
(c) Notice provided pursuant to this chapter shall be mailed to
any new owner designated to receive the notice pursuant to
subdivision (a) of Section 25915.5 within 15 days of the effective
date of the agreement under which a person becomes a new owner.
(d) Subdivisions (a) and (c) shall not be construed to require
owners of a building or part of a building within a residential
common interest development to mail written notification to other
owners of a building or part of a building within the residential
common interest development, if all the following conditions are met:
(1) The association conspicuously posts, in each building or part
of a building known to contain asbestos-containing materials, a large
sign in a prominent location that fully informs persons entering
each building or part of a building within the common interest
development that the association knows the building contains
asbestos-containing materials.
The sign shall also inform persons of the location where further
information, as required by this chapter, is available about the
asbestos-containing materials known to be located in the building.
(2) The owners or association disclose, as soon as practicable
before the transfer of title of a separate interest in the common
interest development, to a transferee the existence of
asbestos-containing material in a building or part of a building
within the common interest development.
Failure to comply with this section shall not invalidate the
transfer of title of real property. This paragraph shall only apply
to transfers of title of separate interests in the common interest
development of which the owners have knowledge. As used in this
section, "association" and "common interest development" are defined
in Sections 4080 and 4100 or Sections 6528 and 6534 of the Civil
Code.
(e) If a person contracting with an owner receives notice pursuant
to this chapter, that contractor shall provide a copy of the notice
to his or her employees or contractors working within the building.
(f) If the asbestos-containing construction material in the
building is limited to an area or areas within the building that meet
all the following criteria:
(1) Are unique and physically defined.
(2) Contain asbestos-containing construction materials in
structural, mechanical, or building materials which are not
replicated throughout the building.
(3) Are not connected to other areas through a common ventilation
system; then, an owner required to give notice to his or her
employees pursuant to subdivision (a) of Section 25915 or 25915.1 may
provide that notice only to the employees working within or entering
that area or those areas of the building meeting the conditions
above.
(g) If the asbestos-containing construction material in the
building is limited to an area or areas within the building that meet
all the following criteria:
(1) Are accessed only by building maintenance employees or
contractors and are not accessed by tenants or employees in the
building, other than on an incidental basis.
(2) Contain asbestos-containing construction materials in
structural, mechanical, or building materials which are not
replicated in areas of the building which are accessed by tenants and
employees.
(3) The owner knows that no asbestos fibers are being released or
have the reasonable possibility to be released from the material;
then, as to that asbestos-containing construction material, an owner
required to give notice to his or her employees pursuant to
subdivision (a) of Section 25915 or Section 25915.1 may provide that
notice only to its building maintenance employees and contractors who
have access to that area or those areas of the building meeting the
conditions above.
(h) In those areas of a building where the asbestos-containing
construction material is composed only of asbestos fibers which are
completely encapsulated, if the owner knows that no asbestos fibers
are being released or have the reasonable possibility to be released
from that material in its present condition and has no knowledge that
other asbestos-containing material is present, then an owner
required to give notice pursuant to subdivision (a) of Section 25915
shall provide the information required in paragraph (2) of
subdivision (a) of Section 25915 and may substitute the following
notice for the requirements of paragraphs (1), (3), (4), and (5) of
subdivision (a) of Section 25915:
(1) The existence of, conclusions from, and a description or list
of the contents of, that portion of any survey conducted to determine
the existence and location of asbestos-containing construction
materials within the building that refers to the asbestos-containing
materials described in this subdivision, and information describing
when and where the results of the survey are available pursuant to
Section 25917.
(2) Information to convey that moving, drilling, boring, or
otherwise disturbing the asbestos-containing construction material
identified may present a health risk and, consequently, should not be
attempted by an unqualified employee. The notice shall identify the
appropriate person the employee is required to contact if the
condition of the asbestos-containing construction material
deteriorates.
SEC. 39. Section 33050 of the Health and Safety Code, as amended
by Section 68 of Chapter 181 of the Statutes of 2012, is amended to
read:
33050. (a) It is hereby declared to be the policy of the state
that in undertaking community redevelopment projects under this part
there shall be no discrimination because of any basis listed in
subdivision (a) or (d) of Section 12955 of the Government Code, as
those bases are defined in Sections 12926, 12926.1, subdivision (m)
and paragraph (1) of subdivision (p) of Section 12955, and Section
12955.2 of the Government Code.
(b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51, Section 4760, and Section
6714 of the Civil Code, and subdivisions (n), (o), and (p) of Section
12955 of the Government Code shall apply to subdivision (a).
SEC. 40. Section 33435 of the Health and Safety Code, as amended
by Section 69 of Chapter 181 of the Statutes of 2012, is amended to
read:
33435. (a) Agencies shall obligate lessees and purchasers of real
property acquired in redevelopment projects and owners of property
improved as a part of a redevelopment project to refrain from
restricting the rental, sale, or lease of the property on any basis
listed in subdivision (a) or (d) of Section 12955 of the Government
Code, as those bases are defined in Sections 12926, 12926.1,
subdivision (m) and paragraph (1) of subdivision (p) of Section
12955, and Section 12955.2 of the Government Code. All deeds, leases,
or contracts for the sale, lease, sublease, or other transfer of any
land in a redevelopment project shall contain or be subject to the
nondiscrimination or nonsegregation clauses hereafter prescribed.
(b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51, Section 4760, and Section
6714 of the Civil Code, and subdivisions (n), (o), and (p) of Section
12955 of the Government Code shall apply to subdivision (a).
SEC. 41. Section 33436 of the Health and Safety Code, as amended
by Section 70 of Chapter 181 of the Statutes of 2012, is amended to
read:
33436. Express provisions shall be included in all deeds, leases,
and contracts that the agency proposes to enter into with respect to
the sale, lease, sublease, transfer, use, occupancy, tenure, or
enjoyment of any land in a redevelopment project in substantially the
following form:
(a) (1) In deeds the following language shall appear--"The grantee
herein covenants by and for himself or herself, his or her heirs,
executors, administrators, and assigns, and all persons claiming
under or through them, that there shall be no discrimination against
or segregation of, any person or group of persons on account of any
basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926,
12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
Section 12955, and Section 12955.2 of the Government Code, in the
sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment
of the premises herein conveyed, nor shall the grantee or any person
claiming under or through him or her, establish or permit any
practice or practices of discrimination or segregation with reference
to the selection, location, number, use, or occupancy of tenants,
lessees, subtenants, sublessees, or vendees in the premises herein
conveyed. The foregoing covenants shall run with the land."
(2) Notwithstanding paragraph (1), with respect to familial
status, paragraph (1) shall not be construed to apply to housing for
older persons, as defined in Section 12955.9 of the Government Code.
With respect to familial status, nothing in paragraph (1) shall be
construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and
799.5 of the Civil Code, relating to housing for senior citizens.
Subdivision (d) of Section 51, Section 4760, and Section 6714 of the
Civil Code, and subdivisions (n), (o), and (p) of Section 12955 of
the Government Code shall apply to paragraph (1).
(b) (1) In leases the following language shall appear--"The lessee
herein covenants by and for himself or herself, his or her heirs,
executors, administrators, and assigns, and all persons claiming
under or through him or her, and this lease is made and accepted upon
and subject to the following conditions:
That there shall be no discrimination against or segregation of
any person or group of persons, on account of any basis listed in
subdivision (a) or (d) of Section 12955 of the Government Code, as
those bases are defined in Sections 12926, 12926.1, subdivision (m)
and paragraph (1) of subdivision (p) of Section 12955, and Section
12955.2 of the Government Code, in the leasing, subleasing,
transferring, use, occupancy, tenure, or enjoyment of the premises
herein leased nor shall the lessee himself or herself, or any person
claiming under or through him or her, establish or permit any such
practice or practices of discrimination or segregation with reference
to the selection, location, number, use, or occupancy, of tenants,
lessees, sublessees, subtenants, or vendees in the premises herein
leased."
(2) Notwithstanding paragraph (1), with respect to familial
status, paragraph (1) shall not be construed to apply to housing for
older persons, as defined in Section 12955.9 of the Government Code.
With respect to familial status, nothing in paragraph (1) shall be
construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and
799.5 of the Civil Code, relating to housing for senior citizens.
Subdivision (d) of Section 51, Section 4760, and Section 6714 of the
Civil Code, and subdivisions (n), (o), and (p) of Section 12955 of
the Government Code shall apply to paragraph (1).
(c) In contracts entered into by the agency relating to the sale,
transfer, or leasing of land or any interest therein acquired by the
agency within any survey area or redevelopment project the foregoing
provisions in substantially the forms set forth shall be included and
the contracts shall further provide that the foregoing provisions
shall be binding upon and shall obligate the contracting party or
parties and any subcontracting party or parties, or other transferees
under the instrument.
SEC. 42. Section 35811 of the Health and Safety Code, as amended
by Section 72 of Chapter 181 of the Statutes of 2012, is amended to
read:
35811. (a) No financial institution shall discriminate in the
availability of, or in the provision of, financial assistance for the
purpose of purchasing, constructing, rehabilitating, improving, or
refinancing housing accommodations due, in whole or in part, to the
consideration of any basis listed in subdivision (a) or (d) of
Section 12955 of the Government Code, as those bases are defined in
Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
subdivision (p) of Section 12955, and Section 12955.2 of the
Government Code.
(b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51, Section 4760, and Section
6714 of the Civil Code, and subdivisions (n), (o), and (p) of Section
12955 of the Government Code shall apply to subdivision (a).
SEC. 43. Section 37630 of the Health and Safety Code, as amended
by Section 73 of Chapter 181 of the Statutes of 2012, is amended to
read:
37630. (a) The local agency shall require that any property that
is rehabilitated with financing obtained under this part shall be
open, upon sale or rental of any portion thereof, to all regardless
of any basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926,
12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
Section 12955, and Section 12955.2 of the Government Code. The local
agency shall also require that contractors and subcontractors engaged
in historical rehabilitation financed under this part provide equal
opportunity for employment, without discrimination as to any basis
listed in subdivision (a) of Section 12940 of the Government Code, as
those bases are defined in Sections 12926 and 12926.1 of the
Government Code, and except as otherwise provided in Section 12940 of
the Government Code. All contracts and subcontracts for historical
rehabilitation financed under this part shall be let without
discrimination as to any basis listed in subdivision (a) of Section
12940 of the Government Code, as those bases are defined in Sections
12926 and 12926.1 of the Government Code, and except as otherwise
provided in Section 12940 of the Government Code.
(b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51, Section 4760, and Section
6714 of the Civil Code, and subdivisions (n), (o), and (p) of Section
12955 of the Government Code shall apply to subdivision (a).
SEC. 44. Section 50955 of the Health and Safety Code, as amended
by Section 75 of Chapter 181 of the Statutes of 2012, is amended to
read:
50955. (a) The agency and every housing sponsor shall require
that occupancy of housing developments assisted under this part shall
be open to all regardless of any basis listed in subdivision (a) or
(d) of Section 12955 of the Government Code, as those bases are
defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1)
of subdivision (p) of Section 12955, and Section 12955.2 of the
Government Code, that contractors and subcontractors engaged in the
construction of housing developments shall provide an equal
opportunity for employment, without discrimination as to any basis
listed in subdivision (a) of Section 12940 of the Government Code, as
those bases are defined in Sections 12926 and 12926.1 of the
Government Code, and except as otherwise provided in Section 12940 of
the Government Code, and that contractors and subcontractors shall
submit and receive approval of an affirmative action program prior to
the commencement of construction or rehabilitation. Affirmative
action requirements respecting apprenticeship shall be consistent
with Chapter 4 (commencing with Section 3070) of Division 3 of the
Labor Code.
All contracts for the management, construction, or rehabilitation
of housing developments, and contracts let by housing sponsors,
contractors, and subcontractors in the performance of management,
construction, or rehabilitation, shall be let without discrimination
as to any basis listed in subdivision (a) of Section 12940 of the
Government Code, as those bases are defined in Sections 12926 and
12926.1 of the Government Code, except as otherwise provided in
Section 12940 of the Government Code, and pursuant to an affirmative
action program, which shall be at not less than the Federal Housing
Administration affirmative action standards unless the board makes a
specific finding that the particular requirement would be unworkable.
The agency shall periodically review implementation of affirmative
action programs required by this section.
It shall be the policy of the agency and housing sponsors to
encourage participation with respect to all projects by minority
developers, builders, and entrepreneurs in all levels of
construction, planning, financing, and management of housing
developments. In areas of minority concentration the agency shall
require significant participation of minorities in the sponsorship,
construction, planning, financing, and management of housing
developments. The agency shall (1) require that, to the greatest
extent feasible, opportunities for training and employment arising in
connection with the planning, construction, rehabilitation, and
operation of housing developments financed pursuant to this part be
given to persons of low income residing in the area of that housing,
and (2) determine and implement means to secure the participation of
small businesses in the performance of contracts for work on housing
developments and to develop the capabilities of these small
businesses to more efficiently and competently participate in the
economic mainstream. In order to achieve this participation by small
businesses, the agency may, among other things, waive retention
requirements otherwise imposed on contractors or subcontractors by
regulation of the agency and may authorize or make advance payments
for work to be performed. The agency shall develop relevant selection
criteria for the participation of small businesses to ensure that,
to the greatest extent feasible, the participants possess the
necessary nonfinancial capabilities. The agency may, with respect to
these small businesses, waive bond requirements otherwise imposed
upon contractors or subcontractors by regulation of the agency, but
the agency shall in that case substantially reduce the risk through
(1) a pooled-risk bonding program, (2) a bond program in cooperation
with other federal or state agencies, or (3) development of a
self-insured bonding program with adequate reserves.
The agency shall adopt rules and regulations to implement this
section.
Prior to commitment of a mortgage loan, the agency shall require
each housing sponsor, except with respect to mutual self-help
housing, to submit an affirmative marketing program that meets
standards set forth in regulations of the agency. The agency shall
require each housing sponsor to conduct the affirmative marketing
program so approved. Additionally, the agency shall supplement the
efforts of individual housing sponsors by conducting affirmative
marketing programs with respect to housing at the state level.
(b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51, Section 4760, and Section
6714 of the Civil Code, and subdivisions (n), (o), and (p) of Section
12955 of the Government Code shall apply to subdivision (a).
SEC. 45. Section 51602 of the Health and Safety Code, as amended
by Section 76 of Chapter 181 of the Statutes of 2012, is amended to
read:
51602. (a) The agency shall require that occupancy of housing for
which a loan is insured pursuant to this part shall be open to all
regardless of any basis listed in subdivision (a) or (d) of Section
12955 of the Government Code, as those bases are defined in Sections
12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p)
of Section 12955, and Section 12955.2 of the Government Code, and
that contractors and subcontractors engaged in the construction or
rehabilitation of housing funded by a loan insured pursuant to this
part shall provide an equal opportunity for employment without
discrimination as to any basis listed in subdivision (a) of Section
12940 of the Government Code, as those bases are defined in Sections
12926 and 12926.1 of the Government Code, and except as otherwise
provided in Section 12940 of the Government Code.
(b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51, Section 4760, and Section
6714 of the Civil Code, and subdivisions (n), (o), and (p) of Section
12955 of the Government Code shall apply to subdivision (a).
(c) A qualified developer
shall certify compliance with this section and Section 50955
according to requirements specified by the pertinent criteria of the
agency.
SEC. 46. Section 116048 of the Health and Safety Code, as amended
by Section 77 of Chapter 181 of the Statutes of 2012, is amended to
read:
116048. (a) On or after January 1, 1987, for public swimming
pools in any common interest development, as defined in Section 4100
or 6534 of the Civil Code, that consists of fewer than 25 separate
interests, as defined in Section 4185 or 6564 of the Civil Code, the
person operating each pool open for use shall be required to keep a
record of the information required by subdivision (a) of Section
65523 of Title 22 of the California Administrative Code, except that
the information shall be recorded at least two times per week and at
intervals no greater than four days apart.
(b) On or after January 1, 1987, any rule or regulation of the
department that is in conflict with subdivision (a) is invalid.
SEC. 47. Section 790.031 of the Insurance Code, as amended by
Section 78 of Chapter 181 of the Statutes of 2012, is amended to
read:
790.031. The requirements of subdivision (b) of Section 790.034,
and Sections 2071.1 and 10082.3 shall apply only to policies of
residential property insurance as defined in Section 10087, policies
and endorsements containing those coverages prescribed in Chapter 8.5
(commencing with Section 10081) of Part 1 of Division 2, policies
issued by the California Earthquake Authority pursuant to Chapter 8.6
(commencing with Section 10089.5) of Part 1 of Division 2, policies
and endorsements that insure against property damage and are issued
to common interest developments or to associations managing common
interest developments, as those terms are defined in Sections 4080
and 4100 or Sections 6528 and 6534 of the Civil Code, and to policies
issued pursuant to Section 120 that insure against property damage
to residential units or contents thereof owned by one or more persons
located in this state.
SEC. 48. Section 2188.6 of the Revenue and Taxation Code, as
amended by Section 79 of Chapter 181 of the Statutes of 2012, is
amended to read:
2188.6. (a) Unless a request for exemption has been recorded
pursuant to subdivision (d), prior to the creation of a condominium
as defined in Section 783 of the Civil Code, the county assessor may
separately assess each individual unit which is shown on the
condominium plan of a proposed condominium project when all of the
following documents have been recorded as required by law:
(1) A subdivision final map or parcel map, as described in
Sections 66434 and 66445, respectively, of the Government Code.
(2) A condominium plan, as defined in Section 4120 or 6540 of the
Civil Code.
(3) A declaration, as defined in Section 4135 or 6546 of the Civil
Code.
(b) The tax due on each individual unit shall constitute a lien
solely on that unit.
(c) The lien created pursuant to this section shall be a lien on
an undivided interest in a portion of real property coupled with a
separate interest in space called a unit as described in Section 4125
or 6542 of the Civil Code.
(d) The record owner of the real property may record with the
condominium plan a request that the real property be exempt from
separate assessment pursuant to this section. If a request for
exemption is recorded, separate assessment of a condominium unit
shall be made only in accordance with Section 2188.3.
(e) This section shall become operative on January 1, 1990, and
shall apply to condominium projects for which a condominium plan is
recorded after that date.
SEC. 49. Section 21107.7 of the Vehicle Code, as amended by
Section 80 of Chapter 181 of the Statutes of 2012, is amended to
read:
21107.7. (a) Any city or county may, by ordinance or resolution,
find and declare that there are privately owned and maintained roads
as described in the ordinance or resolution within the city or county
that are not generally held open for use of the public for purposes
of vehicular travel but, by reason of their proximity to or
connection with highways, the interests of any residents residing
along the roads and the motoring public will best be served by
application of the provisions of this code to those roads. No
ordinance or resolution shall be enacted unless there is first filed
with the city or county a petition requesting it by a majority of the
owners of any privately owned and maintained road, or by at least a
majority of the board of directors of a common interest development,
as defined by Section 4100 or 6534 of the Civil Code, that is
responsible for maintaining the road, and without a public hearing
thereon and 10 days' prior written notice to all owners of the road
or all of the owners in the development. Upon enactment of the
ordinance or resolution, the provisions of this code shall apply to
the privately owned and maintained road if appropriate signs are
erected at the entrance to the road of the size, shape, and color as
to be readily legible during daylight hours from a distance of 100
feet, to the effect that the road is subject to the provisions of
this code. The city or county may impose reasonable conditions and
may authorize the owners, or board of directors of the common
interest development, to erect traffic signs, signals, markings, and
devices which conform to the uniform standards and specifications
adopted by the Department of Transportation.
(b) The department shall not be required to provide patrol or
enforce any provisions of this code on any privately owned and
maintained road subjected to the provisions of this code under this
section, except those provisions applicable to private property other
than by action under this section.
(c) As used in this section, "privately owned and maintained roads"
includes roads owned and maintained by a city, county, or district
that are not dedicated to use by the public or are not generally held
open for use of the public for purposes of vehicular travel.
SEC. 50. Section 22651 of the Vehicle Code is amended to read:
22651. A peace officer, as defined in Chapter 4.5 (commencing
with Section 830) of Title 3 of Part 2 of the Penal Code, or a
regularly employed and salaried employee, who is engaged in directing
traffic or enforcing parking laws and regulations, of a city,
county, or jurisdiction of a state agency in which a vehicle is
located, may remove a vehicle located within the territorial limits
in which the officer or employee may act, under the following
circumstances:
(a) When a vehicle is left unattended upon a bridge, viaduct, or
causeway or in a tube or tunnel where the vehicle constitutes an
obstruction to traffic.
(b) When a vehicle is parked or left standing upon a highway in a
position so as to obstruct the normal movement of traffic or in a
condition so as to create a hazard to other traffic upon the highway.
(c) When a vehicle is found upon a highway or public land and a
report has previously been made that the vehicle is stolen or a
complaint has been filed and a warrant thereon is issued charging
that the vehicle was embezzled.
(d) When a vehicle is illegally parked so as to block the entrance
to a private driveway and it is impractical to move the vehicle from
in front of the driveway to another point on the highway.
(e) When a vehicle is illegally parked so as to prevent access by
firefighting equipment to a fire hydrant and it is impracticable to
move the vehicle from in front of the fire hydrant to another point
on the highway.
(f) When a vehicle, except highway maintenance or construction
equipment, is stopped, parked, or left standing for more than four
hours upon the right-of-way of a freeway that has full control of
access and no crossings at grade and the driver, if present, cannot
move the vehicle under its own power.
(g) When the person in charge of a vehicle upon a highway or
public land is, by reason of physical injuries or illness,
incapacitated to an extent so as to be unable to provide for its
custody or removal.
(h) (1) When an officer arrests a person driving or in control of
a vehicle for an alleged offense and the officer is, by this code or
other law, required or permitted to take, and does take, the person
into custody.
(2) When an officer serves a notice of an order of suspension or
revocation pursuant to Section 13388 or 13389.
(i) (1) When a vehicle, other than a rented vehicle, is found upon
a highway or public land, or is removed pursuant to this code, and
it is known that the vehicle has been issued five or more notices of
parking violations to which the owner or person in control of the
vehicle has not responded within 21 calendar days of notice of
citation issuance or citation issuance or 14 calendar days of the
mailing of a notice of delinquent parking violation to the agency
responsible for processing notices of parking violations, or the
registered owner of the vehicle is known to have been issued five or
more notices for failure to pay or failure to appear in court for
traffic violations for which a certificate has not been issued by the
magistrate or clerk of the court hearing the case showing that the
case has been adjudicated or concerning which the registered owner's
record has not been cleared pursuant to Chapter 6 (commencing with
Section 41500) of Division 17, the vehicle may be impounded until
that person furnishes to the impounding law enforcement agency all of
the following:
(A) Evidence of his or her identity.
(B) An address within this state at which he or she can be
located.
(C) Satisfactory evidence that all parking penalties due for the
vehicle and all other vehicles registered to the registered owner of
the impounded vehicle, and all traffic violations of the registered
owner, have been cleared.
(2) The requirements in subparagraph (C) of paragraph (1) shall be
fully enforced by the impounding law enforcement agency on and after
the time that the Department of Motor Vehicles is able to provide
access to the necessary records.
(3) A notice of parking violation issued for an unlawfully parked
vehicle shall be accompanied by a warning that repeated violations
may result in the impounding of the vehicle. In lieu of furnishing
satisfactory evidence that the full amount of parking penalties or
bail has been deposited, that person may demand to be taken without
unnecessary delay before a magistrate, for traffic offenses, or a
hearing examiner, for parking offenses, within the county in which
the offenses charged are alleged to have been committed and who has
jurisdiction of the offenses and is nearest or most accessible with
reference to the place where the vehicle is impounded. Evidence of
current registration shall be produced after a vehicle has been
impounded, or, at the discretion of the impounding law enforcement
agency, a notice to appear for violation of subdivision (a) of
Section 4000 shall be issued to that person.
(4) A vehicle shall be released to the legal owner, as defined in
Section 370, if the legal owner does all of the following:
(A) Pays the cost of towing and storing the vehicle.
(B) Submits evidence of payment of fees as provided in Section
9561.
(C) Completes an affidavit in a form acceptable to the impounding
law enforcement agency stating that the vehicle was not in possession
of the legal owner at the time of occurrence of the offenses
relating to standing or parking. A vehicle released to a legal owner
under this subdivision is a repossessed vehicle for purposes of
disposition or sale. The impounding agency shall have a lien on any
surplus that remains upon sale of the vehicle to which the registered
owner is or may be entitled, as security for the full amount of the
parking penalties for all notices of parking violations issued for
the vehicle and for all local administrative charges imposed pursuant
to Section 22850.5. The legal owner shall promptly remit to, and
deposit with, the agency responsible for processing notices of
parking violations from that surplus, on receipt of that surplus, the
full amount of the parking penalties for all notices of parking
violations issued for the vehicle and for all local administrative
charges imposed pursuant to Section 22850.5.
(5) The impounding agency that has a lien on the surplus that
remains upon the sale of a vehicle to which a registered owner is
entitled pursuant to paragraph (4) has a deficiency claim against the
registered owner for the full amount of the parking penalties for
all notices of parking violations issued for the vehicle and for all
local administrative charges imposed pursuant to Section 22850.5,
less the amount received from the sale of the vehicle.
(j) When a vehicle is found illegally parked and there are no
license plates or other evidence of registration displayed, the
vehicle may be impounded until the owner or person in control of the
vehicle furnishes the impounding law enforcement agency evidence of
his or her identity and an address within this state at which he or
she can be located.
(k) When a vehicle is parked or left standing upon a highway for
72 or more consecutive hours in violation of a local ordinance
authorizing removal.
(l) When a vehicle is illegally parked on a highway in violation
of a local ordinance forbidding standing or parking and the use of a
highway, or a portion thereof, is necessary for the cleaning, repair,
or construction of the highway, or for the installation of
underground utilities, and signs giving notice that the vehicle may
be removed are erected or placed at least 24 hours prior to the
removal by a local authority pursuant to the ordinance.
(m) When the use of the highway, or a portion of the highway, is
authorized by a local authority for a purpose other than the normal
flow of traffic or for the movement of equipment, articles, or
structures of unusual size, and the parking of a vehicle would
prohibit or interfere with that use or movement, and signs giving
notice that the vehicle may be removed are erected or placed at least
24 hours prior to the removal by a local authority pursuant to the
ordinance.
(n) Whenever a vehicle is parked or left standing where local
authorities, by resolution or ordinance, have prohibited parking and
have authorized the removal of vehicles. Except as provided in
subdivisions (v) and (w), a vehicle shall not be removed unless signs
are posted giving notice of the removal.
(o) (1) When a vehicle is found or operated upon a highway, public
land, or an offstreet parking facility under the following
circumstances:
(A) With a registration expiration date in excess of six months
before the date it is found or operated on the highway, public lands,
or the offstreet parking facility.
(B) Displaying in, or upon, the vehicle, a registration card,
identification card, temporary receipt, license plate, special plate,
registration sticker, device issued pursuant to Section 4853, or
permit that was not issued for that vehicle, or is not otherwise
lawfully used on that vehicle under this code.
(C) Displaying in, or upon, the vehicle, an altered, forged,
counterfeit, or falsified registration card, identification card,
temporary receipt, license plate, special plate, registration
sticker, device issued pursuant to Section 4853, or permit.
(2) When a vehicle described in paragraph (1) is occupied, only a
peace officer, as defined in Chapter 4.5 (commencing with Section
830) of Title 3 of Part 2 of the Penal Code, may remove the vehicle.
(3) For the purposes of this subdivision, the vehicle shall be
released under either of the following circumstances:
(A) To the registered owner or person in control of the vehicle
only after the owner or person furnishes the storing law enforcement
agency with proof of current registration and a currently valid
driver's license to operate the vehicle.
(B) To the legal owner or the legal owner's agency, without
payment of any fees, fines, or penalties for parking tickets or
registration and without proof of current registration, if the
vehicle will only be transported pursuant to the exemption specified
in Section 4022 and if the legal owner does all of the following:
(i) Pays the cost of towing and storing the vehicle.
(ii) Completes an affidavit in a form acceptable to the impounding
law enforcement agency stating that the vehicle was not in
possession of the legal owner at the time of occurrence of an offense
relating to standing or parking. A vehicle released to a legal owner
under this subdivision is a repossessed vehicle for purposes of
disposition or sale. The impounding agency has a lien on any surplus
that remains upon sale of the vehicle to which the registered owner
is or may be entitled, as security for the full amount of parking
penalties for any notices of parking violations issued for the
vehicle and for all local administrative charges imposed pursuant to
Section 22850.5. Upon receipt of any surplus, the legal owner shall
promptly remit to, and deposit with, the agency responsible for
processing notices of parking violations from that surplus, the full
amount of the parking penalties for all notices of parking violations
issued for the vehicle and for all local administrative charges
imposed pursuant to Section 22850.5.
(4) The impounding agency that has a lien on the surplus that
remains upon the sale of a vehicle to which a registered owner is
entitled has a deficiency claim against the registered owner for the
full amount of parking penalties for any notices of parking
violations issued for the vehicle and for all local administrative
charges imposed pursuant to Section 22850.5, less the amount received
from the sale of the vehicle.
(5) As used in this subdivision, "offstreet parking facility"
means an offstreet facility held open for use by the public for
parking vehicles and includes a publicly owned facility for offstreet
parking, and a privately owned facility for offstreet parking if a
fee is not charged for the privilege to park and it is held open for
the common public use of retail customers.
(p) When the peace officer issues the driver of a vehicle a notice
to appear for a violation of Section 12500, 14601, 14601.1, 14601.2,
14601.3, 14601.4, 14601.5, or 14604 and the vehicle is not impounded
pursuant to Section 22655.5. A vehicle so removed from the highway
or public land, or from private property after having been on a
highway or public land, shall not be released to the registered owner
or his or her agent, except upon presentation of the registered
owner's or his or her agent's currently valid driver's license to
operate the vehicle and proof of current vehicle registration, to the
impounding law enforcement agency, or upon order of a court.
(q) When a vehicle is parked for more than 24 hours on a portion
of highway that is located within the boundaries of a common interest
development, as defined in Section 4100 or 6534 of the Civil Code,
and signs, as required by paragraph (1) of subdivision (a) of Section
22658 of this code, have been posted on that portion of highway
providing notice to drivers that vehicles parked thereon for more
than 24 hours will be removed at the owner's expense, pursuant to a
resolution or ordinance adopted by the local authority.
(r) When a vehicle is illegally parked and blocks the movement of
a legally parked vehicle.
(s) (1) When a vehicle, except highway maintenance or construction
equipment, an authorized emergency vehicle, or a vehicle that is
properly permitted or otherwise authorized by the Department of
Transportation, is stopped, parked, or left standing for more than
eight hours within a roadside rest area or viewpoint.
(2) Notwithstanding paragraph (1), when a commercial motor
vehicle, as defined in paragraph (1) of subdivision (b) of Section
15210, is stopped, parked, or left standing for more than 10 hours
within a roadside rest area or viewpoint.
(3) For purposes of this subdivision, a roadside rest area or
viewpoint is a publicly maintained vehicle parking area, adjacent to
a highway, utilized for the convenient, safe stopping of a vehicle to
enable motorists to rest or to view the scenery. If two or more
roadside rest areas are located on opposite sides of the highway, or
upon the center divider, within seven miles of each other, then that
combination of rest areas is considered to be the same rest area.
(t) When a peace officer issues a notice to appear for a violation
of Section 25279.
(u) When a peace officer issues a citation for a violation of
Section 11700 and the vehicle is being offered for sale.
(v) (1) When a vehicle is a mobile billboard advertising display,
as defined in Section 395.5, and is parked or left standing in
violation of a local resolution or ordinance adopted pursuant to
subdivision (m) of Section 21100, if the registered owner of the
vehicle was previously issued a warning citation for the same
offense, pursuant to paragraph (2).
(2) Notwithstanding subdivision (a) of Section 22507, a city or
county, in lieu of posting signs noticing a local ordinance
prohibiting mobile billboard advertising displays adopted pursuant to
subdivision (m) of Section 21100, may provide notice by issuing a
warning citation advising the registered owner of the vehicle that he
or she may be subject to penalties upon a subsequent violation of
the ordinance, that may include the removal of the vehicle as
provided in paragraph (1). A city or county is not required to
provide further notice for a subsequent violation prior to the
enforcement of penalties for a violation of the ordinance.
(w) (1) When a vehicle is parked or left standing in violation of
a local ordinance or resolution adopted pursuant to subdivision (p)
of Section 21100, if the registered owner of the vehicle was
previously issued a warning citation for the same offense, pursuant
to paragraph (2).
(2) Notwithstanding subdivision (a) of Section 22507, a city or
county, in lieu of posting signs noticing a local ordinance
regulating advertising signs adopted pursuant to subdivision (p) of
Section 21100, may provide notice by issuing a warning citation
advising the registered owner of the vehicle that he or she may be
subject to penalties upon a subsequent violation of the ordinance
that may include the removal of the vehicle as provided in paragraph
(1). A city or county is not required to provide further notice for a
subsequent violation prior to the enforcement of penalties for a
violation of the ordinance.
SEC. 51. Section 22651.05 of the Vehicle Code, as amended by
Section 82 of Chapter 181 of the Statutes of 2012, is amended to
read:
22651.05. (a) A trained volunteer of a state or local law
enforcement agency, who is engaged in directing traffic or enforcing
parking laws and regulations, of a city, county, or jurisdiction of a
state agency in which a vehicle is located, may remove or authorize
the removal of a vehicle located within the territorial limits in
which an officer or employee of that agency may act, under any of the
following circumstances:
(1) When a vehicle is parked or left standing upon a highway for
72 or more consecutive hours in violation of a local ordinance
authorizing the removal.
(2) When a vehicle is illegally parked or left standing on a
highway in violation of a local ordinance forbidding standing or
parking and the use of a highway, or a portion thereof, is necessary
for the cleaning, repair, or construction of the highway, or for the
installation of underground utilities, and signs giving notice that
the vehicle may be removed are erected or placed at least 24 hours
prior to the removal by local authorities pursuant to the ordinance.
(3) Wherever the use of the highway, or a portion thereof, is
authorized by local authorities for a purpose other than the normal
flow of traffic or for the movement of equipment, articles, or
structures of unusual size, and the parking of a vehicle would
prohibit or interfere with that use or movement, and signs giving
notice that the vehicle may be removed are erected or placed at least
24 hours prior to the removal by local authorities pursuant to the
ordinance.
(4) Whenever a vehicle is parked or left standing where local
authorities, by resolution or ordinance, have prohibited parking and
have authorized the removal of vehicles. A vehicle may not be removed
unless signs are posted giving notice of the removal.
(5) Whenever a vehicle is parked for more than 24 hours on a
portion of highway that is located within the boundaries of a common
interest development, as defined in Section 4100 or 6534 of the Civil
Code, and signs, as required by Section 22658.2, have been posted on
that portion of highway providing notice to drivers that vehicles
parked thereon for more than 24 hours will be removed at the owner's
expense, pursuant to a resolution or ordinance adopted by the local
authority.
(b) The provisions of this chapter that apply to a vehicle removed
pursuant to Section 22651 apply to a vehicle removed pursuant to
subdivision (a).
(c) For purposes of subdivision (a), a "trained volunteer" is a
person who, of his or her own free will, provides services, without
any financial gain, to a local or state law enforcement agency, and
who is duly trained and certified to remove a vehicle by a local or
state law enforcement agency.
SEC. 52. Section 22658 of the Vehicle Code, as amended by Section
83 of Chapter 181 of the Statutes of 2012, is amended to read:
22658. (a) The owner or person in lawful possession of private
property, including an association of a common interest development
as defined in Sections 4080 and 4100 or Sections 6528 and 6534 of the
Civil Code, may cause the removal of a vehicle parked on the
property to a storage facility that meets the requirements of
subdivision (n) under any of the following circumstances:
(1) There is displayed, in plain view at all entrances to the
property, a sign not less than 17 inches by 22 inches in size, with
lettering not less than one inch in height, prohibiting public
parking and indicating that vehicles will be removed at the owner's
expense, and containing the telephone number of the local traffic law
enforcement agency and the name and telephone number of each towing
company that is a party to a written general towing authorization
agreement with the owner or person in lawful possession of the
property. The sign may also indicate that a citation may also be
issued for the violation.
(2) The vehicle has been issued a notice of parking violation, and
96 hours have elapsed since the issuance of that notice.
(3) The vehicle is on private property and lacks an engine,
transmission, wheels, tires,
doors, windshield, or any other major part or equipment necessary
to operate safely on the highways, the owner or person in lawful
possession of the private property has notified the local traffic law
enforcement agency, and 24 hours have elapsed since that
notification.
(4) The lot or parcel upon which the vehicle is parked is improved
with a single-family dwelling.
(b) The tow truck operator removing the vehicle, if the operator
knows or is able to ascertain from the property owner, person in
lawful possession of the property, or the registration records of the
Department of Motor Vehicles the name and address of the registered
and legal owner of the vehicle, shall immediately give, or cause to
be given, notice in writing to the registered and legal owner of the
fact of the removal, the grounds for the removal, and indicate the
place to which the vehicle has been removed. If the vehicle is stored
in a storage facility, a copy of the notice shall be given to the
proprietor of the storage facility. The notice provided for in this
section shall include the amount of mileage on the vehicle at the
time of removal and the time of the removal from the property. If the
tow truck operator does not know and is not able to ascertain the
name of the owner or for any other reason is unable to give the
notice to the owner as provided in this section, the tow truck
operator shall comply with the requirements of subdivision (c) of
Section 22853 relating to notice in the same manner as applicable to
an officer removing a vehicle from private property.
(c) This section does not limit or affect any right or remedy that
the owner or person in lawful possession of private property may
have by virtue of other provisions of law authorizing the removal of
a vehicle parked upon private property.
(d) The owner of a vehicle removed from private property pursuant
to subdivision (a) may recover for any damage to the vehicle
resulting from any intentional or negligent act of a person causing
the removal of, or removing, the vehicle.
(e) (1) An owner or person in lawful possession of private
property, or an association of a common interest development, causing
the removal of a vehicle parked on that property is liable for
double the storage or towing charges whenever there has been a
failure to comply with paragraph (1), (2), or (3) of subdivision (a)
or to state the grounds for the removal of the vehicle if requested
by the legal or registered owner of the vehicle as required by
subdivision (f).
(2) A property owner or owner's agent or lessee who causes the
removal of a vehicle parked on that property pursuant to the
exemption set forth in subparagraph (A) of paragraph (1) of
subdivision ( l ) and fails to comply with that
subdivision is guilty of an infraction, punishable by a fine of one
thousand dollars ($1,000).
(f) An owner or person in lawful possession of private property,
or an association of a common interest development, causing the
removal of a vehicle parked on that property shall notify by
telephone or, if impractical, by the most expeditious means
available, the local traffic law enforcement agency within one hour
after authorizing the tow. An owner or person in lawful possession of
private property, an association of a common interest development,
causing the removal of a vehicle parked on that property, or the tow
truck operator who removes the vehicle, shall state the grounds for
the removal of the vehicle if requested by the legal or registered
owner of that vehicle. A towing company that removes a vehicle from
private property in compliance with subdivision ( l ) is
not responsible in a situation relating to the validity of the
removal. A towing company that removes the vehicle under this section
shall be responsible for the following:
(1) Damage to the vehicle in the transit and subsequent storage of
the vehicle.
(2) The removal of a vehicle other than the vehicle specified by
the owner or other person in lawful possession of the private
property.
(g) (1) (A) Possession of a vehicle under this section shall be
deemed to arise when a vehicle is removed from private property and
is in transit.
(B) Upon the request of the owner of the vehicle or that owner's
agent, the towing company or its driver shall immediately and
unconditionally release a vehicle that is not yet removed from the
private property and in transit.
(C) A person failing to comply with subparagraph (B) is guilty of
a misdemeanor.
(2) If a vehicle is released to a person in compliance with
subparagraph (B) of paragraph (1), the vehicle owner or authorized
agent shall immediately move that vehicle to a lawful location.
(h) A towing company may impose a charge of not more than one-half
of the regular towing charge for the towing of a vehicle at the
request of the owner, the owner's agent, or the person in lawful
possession of the private property pursuant to this section if the
owner of the vehicle or the vehicle owner's agent returns to the
vehicle after the vehicle is coupled to the tow truck by means of a
regular hitch, coupling device, drawbar, portable dolly, or is lifted
off the ground by means of a conventional trailer, and before it is
removed from the private property. The regular towing charge may only
be imposed after the vehicle has been removed from the property and
is in transit.
(i) (1) (A) A charge for towing or storage, or both, of a vehicle
under this section is excessive if the charge exceeds the greater of
the following:
(i) That which would have been charged for that towing or storage,
or both, made at the request of a law enforcement agency under an
agreement between a towing company and the law enforcement agency
that exercises primary jurisdiction in the city in which is located
the private property from which the vehicle was, or was attempted to
be, removed, or if the private property is not located within a city,
then the law enforcement agency that exercises primary jurisdiction
in the county in which the private property is located.
(ii) That which would have been charged for that towing or
storage, or both, under the rate approved for that towing operator by
the Department of the California Highway Patrol for the jurisdiction
in which the private property is located and from which the vehicle
was, or was attempted to be, removed.
(B) A towing operator shall make available for inspection and
copying his or her rate approved by the Department of the California
Highway Patrol, if any, within 24 hours of a request without a
warrant to law enforcement, the Attorney General, district attorney,
or city attorney.
(2) If a vehicle is released within 24 hours from the time the
vehicle is brought into the storage facility, regardless of the
calendar date, the storage charge shall be for only one day. Not more
than one day's storage charge may be required for a vehicle released
the same day that it is stored.
(3) If a request to release a vehicle is made and the appropriate
fees are tendered and documentation establishing that the person
requesting release is entitled to possession of the vehicle, or is
the owner's insurance representative, is presented within the initial
24 hours of storage, and the storage facility fails to comply with
the request to release the vehicle or is not open for business during
normal business hours, then only one day's storage charge may be
required to be paid until after the first business day. A business
day is any day in which the lienholder is open for business to the
public for at least eight hours. If a request is made more than 24
hours after the vehicle is placed in storage, charges may be imposed
on a full calendar day basis for each day, or part thereof, that the
vehicle is in storage.
(j) (1) A person who charges a vehicle owner a towing, service, or
storage charge at an excessive rate, as described in subdivision (h)
or (i), is civilly liable to the vehicle owner for four times the
amount charged.
(2) A person who knowingly charges a vehicle owner a towing,
service, or storage charge at an excessive rate, as described in
subdivision (h) or (i), or who fails to make available his or her
rate as required in subparagraph (B) of paragraph (1) of subdivision
(i), is guilty of a misdemeanor, punishable by a fine of not more
than two thousand five hundred dollars ($2,500), or by imprisonment
in a county jail for not more than three months, or by both that fine
and imprisonment.
(k) (1) A person operating or in charge of a storage facility
where vehicles are stored pursuant to this section shall accept a
valid bank credit card or cash for payment of towing and storage by a
registered owner, the legal owner, or the owner's agent claiming the
vehicle. A credit card shall be in the name of the person presenting
the card. "Credit card" means "credit card" as defined in
subdivision (a) of Section 1747.02 of the Civil Code, except, for the
purposes of this section, credit card does not include a credit card
issued by a retail seller.
(2) A person described in paragraph (1) shall conspicuously
display, in that portion of the storage facility office where
business is conducted with the public, a notice advising that all
valid credit cards and cash are acceptable means of payment.
(3) A person operating or in charge of a storage facility who
refuses to accept a valid credit card or who fails to post the
required notice under paragraph (2) is guilty of a misdemeanor,
punishable by a fine of not more than two thousand five hundred
dollars ($2,500), or by imprisonment in a county jail for not more
than three months, or by both that fine and imprisonment.
(4) A person described in paragraph (1) who violates paragraph (1)
or (2) is civilly liable to the registered owner of the vehicle or
the person who tendered the fees for four times the amount of the
towing and storage charges.
(5) A person operating or in charge of the storage facility shall
have sufficient moneys on the premises of the primary storage
facility during normal business hours to accommodate, and make change
in, a reasonable monetary transaction.
(6) Credit charges for towing and storage services shall comply
with Section 1748.1 of the Civil Code. Law enforcement agencies may
include the costs of providing for payment by credit when making
agreements with towing companies as described in subdivision (i).
( l ) (1) (A) A towing company shall not remove or
commence the removal of a vehicle from private property without first
obtaining the written authorization from the property owner or
lessee, including an association of a common interest development, or
an employee or agent thereof, who shall be present at the time of
removal and verify the alleged violation, except that presence and
verification is not required if the person authorizing the tow is the
property owner, or the owner's agent who is not a tow operator, of a
residential rental property of 15 or fewer units that does not have
an onsite owner, owner's agent or employee, and the tenant has
verified the violation, requested the tow from that tenant's assigned
parking space, and provided a signed request or electronic mail, or
has called and provides a signed request or electronic mail within 24
hours, to the property owner or owner's agent, which the owner or
agent shall provide to the towing company within 48 hours of
authorizing the tow. The signed request or electronic mail shall
contain the name and address of the tenant, and the date and time the
tenant requested the tow. A towing company shall obtain, within 48
hours of receiving the written authorization to tow, a copy of a
tenant request required pursuant to this subparagraph. For the
purpose of this subparagraph, a person providing the written
authorization who is required to be present on the private property
at the time of the tow does not have to be physically present at the
specified location of where the vehicle to be removed is located on
the private property.
(B) The written authorization under subparagraph (A) shall include
all of the following:
(i) The make, model, vehicle identification number, and license
plate number of the removed vehicle.
(ii) The name, signature, job title, residential or business
address, and working telephone number of the person, described in
subparagraph (A), authorizing the removal of the vehicle.
(iii) The grounds for the removal of the vehicle.
(iv) The time when the vehicle was first observed parked at the
private property.
(v) The time that authorization to tow the vehicle was given.
(C) (i) When the vehicle owner or his or her agent claims the
vehicle, the towing company prior to payment of a towing or storage
charge shall provide a photocopy of the written authorization to the
vehicle owner or the agent.
(ii) If the vehicle was towed from a residential property, the
towing company shall redact the information specified in clause (ii)
of subparagraph (B) in the photocopy of the written authorization
provided to the vehicle owner or the agent pursuant to clause (i).
(iii) The towing company shall also provide to the vehicle owner
or the agent a separate notice that provides the telephone number of
the appropriate local law enforcement or prosecuting agency by
stating "If you believe that you have been wrongfully towed, please
contact the local law enforcement or prosecuting agency at insert
appropriate telephone number]." The notice shall be in English and
in the most populous language, other than English, that is spoken in
the jurisdiction.
(D) A towing company shall not remove or commence the removal of a
vehicle from private property described in subdivision (a) of
Section 22953 unless the towing company has made a good faith inquiry
to determine that the owner or the property owner's agent complied
with Section 22953.
(E) (i) General authorization to remove or commence removal of a
vehicle at the towing company's discretion shall not be delegated to
a towing company or its affiliates except in the case of a vehicle
unlawfully parked within 15 feet of a fire hydrant or in a fire lane,
or in a manner which interferes with an entrance to, or exit from,
the private property.
(ii) In those cases in which general authorization is granted to a
towing company or its affiliate to undertake the removal or commence
the removal of a vehicle that is unlawfully parked within 15 feet of
a fire hydrant or in a fire lane, or that interferes with an
entrance to, or exit from, private property, the towing company and
the property owner, or owner's agent, or person in lawful possession
of the private property shall have a written agreement granting that
general authorization.
(2) If a towing company removes a vehicle under a general
authorization described in subparagraph (E) of paragraph (1) and that
vehicle is unlawfully parked within 15 feet of a fire hydrant or in
a fire lane, or in a manner that interferes with an entrance to, or
exit from, the private property, the towing company shall take, prior
to the removal of that vehicle, a photograph of the vehicle that
clearly indicates that parking violation. Prior to accepting payment,
the towing company shall keep one copy of the photograph taken
pursuant to this paragraph, and shall present that photograph and
provide, without charge, a photocopy to the owner or an agent of the
owner, when that person claims the vehicle.
(3) A towing company shall maintain the original written
authorization, or the general authorization described in subparagraph
(E) of paragraph (1) and the photograph of the violation, required
pursuant to this section, and any written requests from a tenant to
the property owner or owner's agent required by subparagraph (A) of
paragraph (1), for a period of three years and shall make them
available for inspection and copying within 24 hours of a request
without a warrant to law enforcement, the Attorney General, district
attorney, or city attorney.
(4) A person who violates this subdivision is guilty of a
misdemeanor, punishable by a fine of not more than two thousand five
hundred dollars ($2,500), or by imprisonment in a county jail for not
more than three months, or by both that fine and imprisonment.
(5) A person who violates this subdivision is civilly liable to
the owner of the vehicle or his or her agent for four times the
amount of the towing and storage charges.
(m) (1) A towing company that removes a vehicle from private
property under this section shall notify the local law enforcement
agency of that tow after the vehicle is removed from the private
property and is in transit.
(2) A towing company is guilty of a misdemeanor if the towing
company fails to provide the notification required under paragraph
(1) within 60 minutes after the vehicle is removed from the private
property and is in transit or 15 minutes after arriving at the
storage facility, whichever time is less.
(3) A towing company that does not provide the notification under
paragraph (1) within 30 minutes after the vehicle is removed from the
private property and is in transit is civilly liable to the
registered owner of the vehicle, or the person who tenders the fees,
for three times the amount of the towing and storage charges.
(4) If notification is impracticable, the times for notification,
as required pursuant to paragraphs (2) and (3), shall be tolled for
the time period that notification is impracticable. This paragraph is
an affirmative defense.
(n) A vehicle removed from private property pursuant to this
section shall be stored in a facility that meets all of the following
requirements:
(1) (A) Is located within a 10-mile radius of the property from
where the vehicle was removed.
(B) The 10-mile radius requirement of subparagraph (A) does not
apply if a towing company has prior general written approval from the
law enforcement agency that exercises primary jurisdiction in the
city in which is located the private property from which the vehicle
was removed, or if the private property is not located within a city,
then the law enforcement agency that exercises primary jurisdiction
in the county in which is located the private property.
(2) (A) Remains open during normal business hours and releases
vehicles after normal business hours.
(B) A gate fee may be charged for releasing a vehicle after normal
business hours, weekends, and state holidays. However, the maximum
hourly charge for releasing a vehicle after normal business hours
shall be one-half of the hourly tow rate charged for initially towing
the vehicle, or less.
(C) Notwithstanding any other provision of law and for purposes of
this paragraph, "normal business hours" are Monday to Friday,
inclusive, from 8 a.m. to 5 p.m., inclusive, except state holidays.
(3) Has a public pay telephone in the office area that is open and
accessible to the public.
(o) (1) It is the intent of the Legislature in the adoption of
subdivision (k) to assist vehicle owners or their agents by, among
other things, allowing payment by credit cards for towing and storage
services, thereby expediting the recovery of towed vehicles and
concurrently promoting the safety and welfare of the public.
(2) It is the intent of the Legislature in the adoption of
subdivision (l) to further the safety of the general public by
ensuring that a private property owner or lessee has provided his or
her authorization for the removal of a vehicle from his or her
property, thereby promoting the safety of those persons involved in
ordering the removal of the vehicle as well as those persons
removing, towing, and storing the vehicle.
(3) It is the intent of the Legislature in the adoption of
subdivision (g) to promote the safety of the general public by
requiring towing companies to unconditionally release a vehicle that
is not lawfully in their possession, thereby avoiding the likelihood
of dangerous and violent confrontation and physical injury to vehicle
owners and towing operators, the stranding of vehicle owners and
their passengers at a dangerous time and location, and impeding
expedited vehicle recovery, without wasting law enforcement's limited
resources.
(p) The remedies, sanctions, restrictions, and procedures provided
in this section are not exclusive and are in addition to other
remedies, sanctions, restrictions, or procedures that may be provided
in other provisions of law, including, but not limited to, those
that are provided in Sections 12110 and 34660.
(q) A vehicle removed and stored pursuant to this section shall be
released by the law enforcement agency, impounding agency, or person
in possession of the vehicle, or any person acting on behalf of
them, to the legal owner or the legal owner's agent upon presentation
of the assignment, as defined in subdivision (b) of Section 7500.1
of the Business and Professions Code; a release from the one
responsible governmental agency, only if required by the agency; a
government-issued photographic identification card; and any one of
the following as determined by the legal owner or the legal owner's
agent: a certificate of repossession for the vehicle, a security
agreement for the vehicle, or title, whether paper or electronic,
showing proof of legal ownership for the vehicle. Any documents
presented may be originals, photocopies, or facsimile copies, or may
be transmitted electronically. The storage facility shall not require
any documents to be notarized. The storage facility may require the
agent of the legal owner to produce a photocopy or facsimile copy of
its repossession agency license or registration issued pursuant to
Chapter 11 (commencing with Section 7500) of Division 3 of the
Business and Professions Code, or to demonstrate, to the satisfaction
of the storage facility, that the agent is exempt from licensure
pursuant to Section 7500.2 or 7500.3 of the Business and Professions
Code.
SEC. 53. Section 13553 of the Water Code, as amended by Section 84
of Chapter 181 of the Statutes of 2012, is amended to read:
13553. (a) The Legislature hereby finds and declares that the use
of potable domestic water for toilet and urinal flushing in
structures is a waste or an unreasonable use of water within the
meaning of Section 2 of Article X of the California Constitution if
recycled water, for these uses, is available to the user and meets
the requirements set forth in Section 13550, as determined by the
state board after notice and a hearing.
(b) The state board may require a public agency or person subject
to this section to furnish any information that may be relevant to
making the determination required in subdivision (a).
(c) For purposes of this section and Section 13554, "structure" or
"structures" means commercial, retail, and office buildings,
theaters, auditoriums, condominium projects, schools, hotels,
apartments, barracks, dormitories, jails, prisons, and reformatories,
and other structures as determined by the State Department of Public
Health.
(d) Recycled water may be used in condominium projects, as defined
in Section 4125 or 6542 of the Civil Code, subject to all of the
following conditions:
(1) Prior to the indoor use of recycled water in any condominium
project, the agency delivering the recycled water to the condominium
project shall file a report with, and receive written approval of the
report from, the State Department of Public Health. The report shall
be consistent with the provisions of Title 22 of the California Code
of Regulations generally applicable to dual-plumbed structures and
shall include all the following:
(A) That potable water service to each condominium project will be
provided with a backflow protection device approved by the State
Department of Public Health to protect the agency's public water
system, as defined in Section 116275 of the Health and Safety Code.
The backflow protection device approved by the State Department of
Public Health shall be inspected and tested annually by a person
certified in the inspection of backflow prevention devices.
(B) That any plumbing modifications in the condominium unit or any
physical alteration of the structure will be done in compliance with
state and local plumbing codes.
(C) That each condominium project will be tested by the recycled
water agency or the responsible local agency at least once every four
years to ensure that there are no indications of a possible cross
connection between the condominium's potable and nonpotable systems.
(D) That recycled water lines will be color coded consistent with
current statutes and regulations.
(2) The recycled water agency or the responsible local agency
shall maintain records of all tests and annual inspections conducted.
(3) The condominium's declaration, as defined in Section 4135 or
6546 of the Civil Code, shall provide that the laws and regulations
governing recycled water apply, shall not permit any exceptions to
those laws and regulations, shall incorporate the report described in
paragraph (1), and shall contain the following statement:
"NOTICE OF USE OF RECYCLED WATER
This property is approved by the State Department of Public Health
for the use of recycled water for toilet and urinal flushing. This
water is not potable, is not suitable for indoor purposes other than
toilet and urinal flushing purposes, and requires dual plumbing.
Alterations and modifications to the plumbing system require a permit
and are prohibited without first consulting with the appropriate
local building code enforcement agency and your property management
company or owners' association to ensure that the recycled water is
not mixed with the drinking water."
(e) The State Department of Public Health may adopt regulations as
necessary to assist in the implementation of this section.
(f) This section shall only apply to condominium projects that are
created, within the meaning of Section 4030 or 6580 of the Civil
Code, on or after January 1, 2008.
(g) This section and Section 13554 do not apply to a pilot program
adopted pursuant to Section 13553.1.
SEC. 54. Section 16.5 of this bill incorporates amendments to
Section 1633.3 of the Civil Code proposed by both this bill and
Senate Bill 251. It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2014, (2) each
bill amends Section 1633.3 of the Civil Code, and (3) this bill is
enacted after Senate Bill 251, in which case Section 16 of this bill
shall not become operative.
