BILL NUMBER: AB 2776	CHAPTERED
	BILL TEXT

	CHAPTER  496
	FILED WITH SECRETARY OF STATE  SEPTEMBER 12, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 12, 2002
	PASSED THE ASSEMBLY  AUGUST 24, 2002
	PASSED THE SENATE  AUGUST 21, 2002
	AMENDED IN SENATE  AUGUST 8, 2002
	AMENDED IN ASSEMBLY  MAY 28, 2002
	AMENDED IN ASSEMBLY  MAY 14, 2002
	AMENDED IN ASSEMBLY  APRIL 29, 2002

INTRODUCED BY   Assembly Member Simitian

                        FEBRUARY 25, 2002

   An act to amend Section 11010 of the Business and Professions
Code, and to amend Sections 1102.6, 1103.4, and 1353 of the Civil
Code, relating to aviation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2776, Simitian.  Aviation:  noise.
   (1) Existing law requires any person who intends to offer
subdivided lands within California for sale or lease to file with the
Department of Real Estate an application for a public report
consisting of a notice of intention and a completed questionnaire
that includes, among other things, the location of all existing
airports, and of all proposed airports shown on the general plan of
any city or county, located within 2 statute miles of the
subdivision.  Existing law requires that a copy of the public report
of the Real Estate Commissioner, when issued, be given to the
prospective purchaser by the owner, subdivider, or agent prior to the
execution of a binding contract or agreement for the sale or lease
of any lot or parcel in a subdivision or upon request by any member
of the public.
   This bill would require the notice of intention filed with the
application for a public report, to include a statement regarding
whether the property is encompassed within an airport influence area,
as defined.
   (2) The Davis-Stirling Common Interest Development Act regulates
common interest developments and defines the declarations and other
governing documents that govern the operation of common interest
developments and the associations that manage common interest
developments.  A declaration is required to contain specified
information.  Existing law provides that an owner of a separate
interest in a common interest development must provide certain items
to a prospective purchaser prior to transfer of title, including,
among other things, a copy of the governing documents of the common
interest development.
   This bill would require that any declaration, recorded after
January 1, 2004, contain a statement regarding whether the property
is encompassed within an airport influence area.
   (3) Existing law requires a seller of residential property, to
make disclosures upon the transfer of that property, and sets forth
the content and form of these disclosures in a Real Estate Transfer
Disclosure Statement and a Natural Hazard Disclosure Statement.
Existing law requires certain sellers of residential real property
who have actual knowledge that the property is affected by or zoned
to permit certain manufacturing, commercial, or airport uses to give
written notice of that knowledge, as soon as practicable before
transfer of title.  Existing law requires the disclosure statement to
advise a purchaser that other reports and disclosures, such as an
inspection report, have or will be made in connection with the
transfer.
   This bill would revise the Real Estate Transfer Disclosure
Statement to require that statement to advise the prospective
purchaser of other disclosures required by law, including the Natural
Hazard Disclosure Report/Statement that may include airport
annoyances, earthquake, fire, flood, or special assessment
information, that have or will be made in connection with the
transfer.
   (4) Existing law limits the liability of a transferor for failing
to disclose natural hazards if the transferor obtains a report or
opinion prepared by a licensed engineer, land surveyor, geologist, or
expert in natural hazard discovery dealing with matters within the
scope of the professional's license or expertise.
   The bill would condition this limitation upon the expert in
natural hazard discovery determining whether the property is within
an airport influence area and if so, providing notice with the report
or opinion.
   This bill would provide that its provisions will become operative
on January 1, 2004.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares that the current
mechanisms for providing notice to homebuyers of potential airport
impact are inadequate, as evidenced by the number of complaints and
lawsuits regarding airport noise by residents of surrounding
communities.
  SEC. 2.  Section 11010 of the Business and Professions Code is
amended to read:
   11010.  (a) Except as otherwise provided pursuant to subdivision
(c) or elsewhere in this chapter, any person who intends to offer
subdivided lands within this state for sale or lease shall file with
the Department of Real Estate an application for a public report
consisting of a notice of intention and a completed questionnaire on
a form prepared by the department.
   (b) The notice of intention shall contain the following
information about the subdivided lands and the proposed offering:
   (1) The name and address of the owner.
   (2) The name and address of the subdivider.
   (3) The legal description and area of lands.
   (4) A true statement of the condition of the title to the land,
particularly including all encumbrances thereon.
   (5) A true statement of the terms and conditions on which it is
intended to dispose of the land, together with copies of any
contracts intended to be used.
   (6) A true statement of the provisions, if any, that have been
made for public utilities in the proposed subdivision, including
water, electricity, gas, telephone, and sewerage facilities.  For
subdivided lands that were subject to the imposition of a condition
pursuant to subdivision (b) of Section 66473.7 of the Government
Code, the true statement of the provisions made for water shall be
satisfied by submitting a copy of the written verification of the
available water supply obtained pursuant to Section 66473.7 of the
Government Code.
   (7) A true statement of the use or uses for which the proposed
subdivision will be offered.
   (8) A true statement of the provisions, if any, limiting the use
or occupancy of the parcels in the subdivision.
   (9) A true statement of the amount of indebtedness that is a lien
upon the subdivision or any part thereof, and that was incurred to
pay for the construction of any onsite or offsite improvement, or any
community or recreational facility.
   (10) A true statement or reasonable estimate, if applicable, of
the amount of any indebtedness which has been or is proposed to be
incurred by an existing or proposed special district, entity, taxing
area, assessment district, or community facilities district within
the boundaries of which, the subdivision, or any part thereof, is
located, and that is to pay for the construction or installation of
any improvement or to furnish community or recreational facilities to
that subdivision, and which amounts are to be obtained by ad valorem
tax or assessment, or by a special assessment or tax upon the
subdivision, or any part thereof.
   (11) (A) As to each school district serving the subdivision, a
statement from the appropriate district that indicates the location
of each high school, junior high school, and elementary school
serving the subdivision, or documentation that a statement to that
effect has been requested from the appropriate school district.
   (B) In the event that, as of the date the notice of intention and
application for issuance of a public report are otherwise deemed to
be qualitatively and substantially complete pursuant to Section
11010.2, the statement described in subparagraph (A) has not been
provided by any school district serving the subdivision, the person
who filed the notice of intention and application for issuance of a
public report shall immediately provide the department with the name,
address, and telephone number of that district.
   (12) (A) The location of all existing airports, and of all
proposed airports shown on the general plan of any city or county,
located within two statute miles of the subdivision.  If the property
is located within an airport influence area, the following statement
shall be included in the notice of intention:


                     NOTICE OF AIRPORT IN VICINITY

      This property is presently located in the vicinity of an
airport,
  within what is known as an airport influence area.  For that
reason,
  the property may be subject to some of the  annoyances or
inconveniences
  associated with proximity to airport operations (for example:
noise,
  vibration, or odors).  Individual sensitivities to those annoyances
can
  vary from person to person.  You may wish to consider what airport
  annoyances, if any, are associated with the property before you
  complete your purchase and determine whether they are acceptable to
you.

   (B) For purposes of this section, an "airport influence area,"
also known as an "airport referral area," is the area in which
current or future airport-related noise, overflight, safety, or
airspace protection factors may significantly affect land uses or
necessitate restrictions on those uses as determined by an airport
land use commission.
   (13) A true statement, if applicable, referencing any soils or
geologic report or soils and geologic reports that have been prepared
specifically for the subdivision.
   (14) A true statement of whether or not fill is used, or is
proposed to be used in the subdivision and a statement giving the
name and the location of the public agency where information
concerning soil conditions in the subdivision is available.
   (15) Any other information that the owner, his or her agent, or
the subdivider may desire to present.
   (c) The commissioner may, by regulation, or on the basis of the
particular circumstances of a proposed offering, waive the
requirement of the submission of a completed questionnaire if the
commissioner determines that prospective purchasers or lessees of the
subdivision interests to be offered will be adequately protected
through the issuance of a public report based solely upon information
contained in the notice of intention.
  SEC. 3.  Section 1102.6 of the Civil Code is amended to read:
   1102.6.  The disclosures required by this article pertaining to
the property proposed to be transferred are set forth in, and shall
be made on a copy of, the following disclosure form:
  SEC. 4.  Section 1103.4 of the Civil Code is amended to read:
   1103.4.  (a) Neither the transferor nor any listing or selling
agent shall be liable for any error, inaccuracy, or omission of any
information delivered pursuant to this article if the error,
inaccuracy, or omission was not within the personal knowledge of the
transferor or the listing or selling agent, and was based on
information timely provided by public agencies or by other persons
providing information as specified in subdivision (c) that is
required to be disclosed pursuant to this article, and ordinary care
was exercised in obtaining and transmitting the information.
   (b) The delivery of any information required to be disclosed by
this article to a prospective transferee by a public agency or other
person providing information required to be disclosed pursuant to
this article shall be deemed to comply with the requirements of this
article and shall relieve the transferor or any listing or selling
agent of any further duty under this article with respect to that
item of information.
   (c) The delivery of a report or opinion prepared by a licensed
engineer, land surveyor, geologist, or expert in natural hazard
discovery dealing with matters within the scope of the professional's
license or expertise, shall be sufficient compliance for application
of the exemption provided by subdivision (a) if the information is
provided to the prospective transferee pursuant to a request
therefor, whether written or oral.  In responding to that request, an
expert may indicate, in writing, an understanding that the
information provided will be used in fulfilling the requirements of
Section 1103.2 and, if so, shall indicate the required disclosures,
or parts thereof, to which the information being furnished is
applicable.  Where that statement is furnished, the expert shall not
be responsible for any items of information, or parts thereof, other
than those expressly set forth in the statement.  In responding to
the request, the expert shall determine whether the property is
within an airport influence area as defined in subdivision (b) of
Section 11010 of the Business and Professions Code.  If the property
is within an airport influence area, the report shall contain the
following statement:


                  NOTICE OF AIRPORT IN VICINITY

          This property is presently located in the vicinity of an
    airport, within what is known as an airport influence area.
    For that reason, the property may be subject to some of the
    annoyances or inconveniences associated with proximity to
    airport operations (for example: noise, vibration, or odors).
    Individual sensitivities to those annoyances can vary from
    person to person.  You may wish to consider what airport
    annoyances, if any, are associated with the property before
    you complete your purchase and determine whether they are
    acceptable to you.

  SEC. 5.  Section 1353 of the Civil Code is amended to read:
   1353.  (a) (1) 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 community apartment project, 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.  If the property is located within an airport
influence area, a declaration, recorded after January 1,  2004, shall
contain the following statement:


                  NOTICE OF AIRPORT IN VICINITY

          This property is presently located in the vicinity of an
    airport, within what is known as an airport influence area.
    For that reason, the property may be subject to some of the
    annoyances or inconveniences associated with proximity to
    airport operations (for example: noise, vibration, or odors).
    Individual sensitivities to those annoyances can vary from
    person to person.  You may wish to consider what airport
    annoyances, if any, are associated with the property before
    you complete your purchase and determine whether they are
    acceptable to you.

   (2) For purposes of this section, an "airport influence  area,"
also known as an "airport referral area," is the area in which
current or future airport-related noise, overflight, safety, or
airspace protection factors may significantly affect land uses or
necessitate restrictions on those uses as determined by an airport
land use commission.
   (3) The statement in a declaration acknowledging that a property
is located in an airport influence area does not constitute a title
defect, lien, or encumbrance.
   (b) The declaration may contain any other matters the original
signator of the declaration or the owners consider appropriate.
  SEC. 6.  This act shall become operative on January 1, 2004.