BILL NUMBER: SB 948	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Wyland

                        FEBRUARY 23, 2007

   An act to add Section 1363.002 to the Civil Code, relating to
common interest developments.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 948, as introduced, Wyland. Common interest developments: board
member education.
   The Davis-Stirling Common Interest Development Act provides for
the creation and regulation of common interest developments. Existing
law requires the Department of Consumer Affairs and the Department
of Real Estate, to the extent existing funds are available, to
develop an online education course for the board of directors of an
association regarding the role, duties, laws, and responsibilities of
board members and prospective board members, and the nonjudicial
foreclosure process.
   This bill would, in addition, as of January 1, 2009, require every
member of the board of directors of an association to complete at
least one 3-hour course during every term of office relating to
decisional and statutory law regarding common interest developments.
The bill would require such a course to be approved by the Department
of Real Estate.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) There are more than 35,000 common interest developments in
California, comprising more than 4,300,000 dwellings. Dwellings in
those common interest developments comprise approximately 1/4 of the
state's housing stock.
   (b) Common interest developments are governed by associations.
Managing an association is a complex responsibility. Association
members elect volunteer boards of directors and those directors may
have little or no experience serving in that capacity. In order to
properly discharge their duties, directors must comply with many laws
and, in so doing, must interpret and enforce those laws. Directors
must also interpret and apply the provisions of the association's
governing documents and rules. Additionally, board members may not
fully understand their rights and obligations under the law. Mistakes
and misunderstandings are inevitable and may lead to serious,
costly, and divisive problems.
   (c) While litigation is one form of dispute resolution, the
principal remedy for disputes should be based on a policy of
prevention. Litigation is not a positive means of resolving
association issues when the disputants are neighbors and must
maintain ongoing relationships. The adversarial nature of litigation
can disrupt these relationships, creating animosity that degrades the
quality of life within an association, shifts the focus of the
board, and increases the likelihood of future disputes. Litigation
may increase the expenses of an association, which must be paid by
its members through increased assessments. In some cases, homeowners
cannot personally afford to file or defend a lawsuit.
   (d) Anecdotal accounts of conflicts and alleged abuses within
associations create continuing public demand for reform of common
interest development law. This results in frequent legal changes,
making the law more difficult to understand and apply while imposing
significant additional costs on associations.
   (e) Education will provide association directors with substantial
knowledge and increased proficiency in understanding the law, and
will provide a proactive, responsible, and nonjudicial approach to
preventing the frequency and severity of disputes within an
association.
  SEC. 2.  Section 1363.002 is added to the Civil Code, to read:
   1363.002.  (a) Every member of the board of directors of an
association shall complete at least one three-hour course during
every term of office relating to decisional and statutory law
regarding common interest developments.
   (b) A course shall not satisfy the requirement imposed by
subdivision (a) unless it has been approved by the Department of Real
Estate. The Department of Real Estate shall require such a course to
provide instruction, at a minimum, in applicable provisions of this
code, the Business and Professions Code, the Corporations Code, the
Government Code, and the Vehicle Code pertaining to common interest
developments, as well as court decisions relating to those
provisions.
   (c) Each association shall annually disclose, in writing, the
following information to the association members:
   (1) That board members are required to comply with subdivision
(a).
   (2) Whether current board members have complied with subdivision
(a).
   (d) This section shall become operative on January 1, 2009.