BILL NUMBER: AB 1926 CHAPTERED 09/23/02 CHAPTER 803 FILED WITH SECRETARY OF STATE SEPTEMBER 23, 2002 APPROVED BY GOVERNOR SEPTEMBER 22, 2002 PASSED THE ASSEMBLY AUGUST 25, 2002 PASSED THE SENATE AUGUST 22, 2002 AMENDED IN SENATE AUGUST 5, 2002 AMENDED IN ASSEMBLY APRIL 30, 2002 AMENDED IN ASSEMBLY APRIL 15, 2002 AMENDED IN ASSEMBLY MARCH 18, 2002 INTRODUCED BY Assembly Member Horton (Principal coauthor: Assembly Member Robert Pacheco) (Principal coauthor: Senator Polanco) (Coauthors: Assembly Members Aroner, Bill Campbell, Cedillo, Chavez, Chu, Cohn, Correa, Cox, Diaz, Dutra, Kehoe, Koretz, Liu, Longville, Lowenthal, Nakano, Oropeza, Runner, Salinas, Steinberg, Washington, and Wright) (Coauthors: Senators Knight, Kuehl, Murray, Ortiz, Romero, Scott, and Speier) FEBRUARY 12, 2002 An act to amend Section 12956.1 of the Government Code, relating to discrimination. LEGISLATIVE COUNSEL'S DIGEST AB 1926, Horton. Discrimination: housing. (1) Existing law authorizes any person holding an ownership interest of record in property containing a restrictive covenant determined by the Department of Fair Employment and Housing to violate the fair housing laws to cause the recording of a modified document with the covenant stricken, as prescribed. This bill would, under specified circumstances, authorize any person holding an ownership interest of record in property that he or she believes is subject to an unlawfully restrictive covenant to submit for recordation a modified document with the covenant stricken. The bill would authorize the county recorder to record the document and, if recorded, would require the recorder to provide a specified form for attachment to the front of the document. The bill would create a state-mandated local program by imposing new duties on the county recorder. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 12956.1 of the Government Code 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 Section 1351 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, familial status, marital status, disability, national origin, or ancestry, that restriction violates state and federal fair housing laws and is void, and may be removed pursuant to Section 12956.1 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 set forth in paragraph (1) shall not apply to documents being submitted for recordation to a county recorder. (c) (1) Any person who holds an ownership interest of record in property that he or she believes is the subject of a restrictive covenant referred to in subdivision (b), may file an application with the Department of Fair Employment and Housing requesting a determination of whether the restrictive covenant violates the fair housing laws and is void. Any application pursuant to this subdivision shall be in writing, contain a copy of the document, and identify the location within the document where the restrictive covenant is located. (2) If the department determines that the document contains a restrictive covenant that violates the law, it shall provide the applicant with a written statement entitled "RACIALLY OR OTHERWISE UNLAWFULLY RESTRICTIVE COVENANT MODIFICATION" that sets forth this determination, including the page and line numbers of any void restrictive covenant, which statement may be recorded with the document pursuant to paragraph (3). The department shall process all applications within 90 days. The department shall include the following language at the end of the written statement which the applicant may complete and sign for purposes of recording pursuant to paragraph (3): I (We) __________ have an ownership interest of record in the property located at __________ (Address) that is the subject of this document. The Department of Fair Employment and Housing has determined that this document contains a restrictive covenant that violates the law and is void. Pursuant to Section 12956.1 of the Government Code, this document is being recorded solely for the purpose of eliminating that restrictive covenant as shown on page(s) __ of the document recorded on __ (Date) in book __ and page __, or instrument number __ of the official records of the County of _____. No other changes have been made. If executed at any place, within or without this state: I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct. ____________________ ___________________________ (Date and Place) (Owner(s) Signature(s)) (3) The applicant may strike out a void restrictive covenant identified by the department, complete and attach a copy of the written statement from the department to the front of the document, and cause the modified document to be recorded, if provided that all other requirements of recordation are met, including the payment of any recordation fee. (d) Subdivision (c) of this section shall not apply to persons holding an ownership interest in property that is part of a common interest development as defined in subdivision (c) of Section 1351 of the Civil Code, and where the board of directors of that common interest development is subject to the requirements of subdivision (b) of Section 1352.5 of the Civil Code. (e) The provisions of this section shall have no bearing or effect upon Section 12955.9. (f) 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. (g) (1) Any 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 submit for recordation to the county recorder of the county in which the property is located a modified document striking out the unlawfully restrictive covenant. (2) The county recorder may record the document, if all other requirements of recordation are met, including the payment of any recording fee, or may direct the person to obtain a determination, pursuant to subdivision (c), that the covenant is unlawful. If the recorder records the document, the recorder shall provide a form entitled "RACIAL OR OTHERWISE UNLAWFULLY RESTRICTIVE COVENANT MODIFICATION," which shall be recorded attached to the front of the document that strikes the unlawfully restrictive covenant. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.