BILL NUMBER: AB 104	CHAPTERED
	BILL TEXT

	CHAPTER  375
	FILED WITH SECRETARY OF STATE  SEPTEMBER 17, 2003
	APPROVED BY GOVERNOR  SEPTEMBER 16, 2003
	PASSED THE ASSEMBLY  AUGUST 28, 2003
	PASSED THE SENATE  AUGUST 21, 2003
	AMENDED IN SENATE  JULY 9, 2003
	AMENDED IN SENATE  JUNE 11, 2003

INTRODUCED BY   Assembly Member Lowenthal

                        JANUARY 10, 2003

   An act to add Section 1365.2 to the Civil Code, relating to common
interest developments.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 104, Lowenthal.  Common interest developments:  account books.
   The Davis-Stirling Common Interest Development Act defines and
regulates common interest developments.  The act requires that an
association manage the common interest development and that the
association make available specified financial documents to the
members of the association.
   This bill would require an association to make the accounting
books and records and the minutes of proceedings of the association
available for inspection and copying by a member of the association,
or the member's designated representative, as specified.  The bill
would permit the association, under certain circumstances, to satisfy
these requirements by providing copies of the requested records by
mail.  The bill would permit the association to withhold or redact
information from the accounting books and records and the minutes of
proceedings when the release of the information is reasonably likely
to lead to identity theft, fraud in connection with the association,
or is privileged by law, with specified exceptions regarding
compensation of employees, vendors, and contractors.  The bill would
prohibit, among other things, the sale or commercial use of the
association's accounting books and records and minutes of
proceedings.  The bill would permit the member to bring an action to
enforce the right to inspect and copy from the accounting books and
records and the minutes of proceedings, and would require a court to
award the member reasonable costs and expenses, as specified, if it
finds that the association unreasonably withheld access to the books
and records and the minutes of proceedings.  The bill would also
permit the court to assess a civil penalty of up to $500 for each
violation.


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


  SECTION 1.  Section 1365.2 is added to the Civil Code, to read:
   1365.2.  (a) (1) The association shall make the accounting books
and records and the minutes of proceedings of the association
available for inspection and copying by a member of the association,
or the member's designated representative, as provided by this
section.
   (2) A member of the association may designate another person to
inspect and copy the accounting books and records and the minutes of
proceedings on the member's behalf.  The member shall make this
designation in writing.
   (b) (1) The association shall make the accounting books and
records and the minutes of proceedings available for inspection and
copying in the association's business office within the common
interest development.
   (2) If the association does not have a business office within the
development, the association shall make the accounting books and
records and minutes of proceedings available for inspection and
copying at a place that the requesting member and the association
agree upon.
   (3) If the association and the requesting member cannot agree upon
a place for inspection and copying pursuant to paragraph (2), or if
the requesting member submits a written request directly to the
association for copies, the association may satisfy the requirement
to make the accounting books and records and the minutes of
proceedings available for inspection and copying by mailing copies of
the requested records to the member by first-class mail within 10
days of receiving the member's request.  The association may bill the
requesting member for its actual, reasonable costs for copying and
mailing requested documents.  The association shall inform the member
of the amount of the copying and mailing costs before sending the
requested documents.
   (c) (1) Except as provided in paragraph (2), the association may
withhold or redact information from the accounting books and records
and the minutes of proceedings for any of the following reasons:
   (A) The release of the information is reasonably likely to lead to
identity theft.  For the purposes of this section, "identity theft"
means the unauthorized use of another person's personal identifying
information to obtain credit, goods, services, money, or property.
   (B) The release of the information is reasonably likely to lead to
fraud in connection with the association.
   (C) The information is privileged under law.
   (2) Except as provided by the attorney-client privilege, the
association may not withhold or redact information concerning the
compensation paid to employees, vendors, or contractors.
Compensation information for individual employees shall be set forth
by job classification or title, not by the employee's name, social
security number, or other personal information.
   (d) (1) The accounting books and records and the minutes of
proceedings of an association, and any information from them, may not
be sold, used for a commercial purpose, or used for any other
purpose not reasonably related to a member's interest as a member.
An association may bring an action against any person who violates
this section for injunctive relief and for actual damages to the
association caused by the violation.
   (2) This section may not be construed to limit the right of an
association to damages for misuse of information obtained from the
accounting books and records and the minutes of proceedings pursuant
to this section or to limit the right of an association to injunctive
relief to stop the misuse of this information.
   (3) An association shall be entitled to recover reasonable costs
and expenses, including reasonable attorney's fees, in a successful
action to enforce its rights under this section.
   (e) A member of an association may bring an action to enforce the
member's right to inspect and copy the accounting books and records
and the minutes of proceedings of the association.  If a court finds
that the association unreasonably withheld access to the accounting
books and records and the minutes of proceedings, the court shall
award the member reasonable costs and expenses, including reasonable
attorney's fees, and may assess a civil penalty of up to five hundred
dollars ($500) for each violation.