BILL NUMBER: AB 2546	CHAPTERED  09/23/02

	CHAPTER  817
	FILED WITH SECRETARY OF STATE  SEPTEMBER 23, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 23, 2002
	PASSED THE ASSEMBLY  AUGUST 15, 2002
	PASSED THE SENATE  AUGUST 8, 2002
	AMENDED IN SENATE  JUNE 26, 2002
	AMENDED IN ASSEMBLY  MAY 13, 2002
	AMENDED IN ASSEMBLY  APRIL 29, 2002

INTRODUCED BY   Assembly Member Nation

                        FEBRUARY 21, 2002

   An act to add Section 1368.1 to the Civil Code, relating to common
interest developments.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2546, Nation.  Common interest developments:  marketing and
sales.
   Existing law, the Davis-Stirling Common Interest Development Act,
requires that a common interest development be managed by an
association, as defined.
   This bill would provide that any rule or regulation of an
association that arbitrarily or unreasonably restricts an owner's
ability to market, as defined, his or her interest in a common
interest development is void.  The bill would also prohibit an
association from adopting, enforcing, or otherwise imposing any rule
or regulation that:  (1) imposes an assessment or fee in connection
with the marketing of an owner's interest in the common interest
development in an amount that exceeds the association's actual or
direct costs; or (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, except for sales and
marketing by the association, as specified.  The bill would include a
specified exception from these provisions.


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


  SECTION 1.  Section 1368.1 is added to the Civil Code, to read:
   1368.1.  (a) Any rule or regulation of an association that
arbitrarily or unreasonably restricts an owner's ability to market
his or her interest in a common interest development is void.
   (b) No association may adopt, enforce, or otherwise impose any
rule or regulation 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.  That assessment or fee shall be deemed to
violate the limitation set forth in Section 1366.1.
   (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 areas 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.