BILL NUMBER: AB 806	CHAPTERED
	BILL TEXT

	CHAPTER  181
	FILED WITH SECRETARY OF STATE  AUGUST 17, 2012
	APPROVED BY GOVERNOR  AUGUST 17, 2012
	PASSED THE SENATE  JULY 2, 2012
	PASSED THE ASSEMBLY  AUGUST 6, 2012
	AMENDED IN SENATE  JANUARY 4, 2012

INTRODUCED BY   Assembly Member Torres

                        FEBRUARY 17, 2011

   An act to amend Sections 10131.01, 10153.2, 10177, 11003, 11003.2,
11004, 11004.5, 11010.10, 11018.1, 11018.12, 11018.6, 11211.7,
11500, 11502, 11504, 11505, 23426.5, and 23428.20 of the Business and
Professions Code, to amend Sections 51.11, 714, 714.1, 782, 782.5,
783, 783.1, 798.20, 799.10, 800.25, 895, 935, 945, 1098, 1102.6a,
1102.6d, 1133, 1633.3, 1864, 2079.3, 2924b, 2929.5, and 2955.1 of the
Civil Code, to amend Sections 86, 116.540, 564, 726.5, 729.035, and
736 of the Code of Civil Procedure, to amend Sections 12191, 12956.1,
12956.2, 53341.5, 65008, 65915, 65995.5, 66411, 66412, 66424, 66427,
66452.10, 66475.2, and 66477 of the Government Code, to amend
Sections 1597.531, 13132.7, 19850, 25400.22, 25915.2, 25915.5, 33050,
33435, 33436, 33769, 35811, 37630, 37923, 50955, 51602, and 116048
of the Health and Safety Code, to amend Section 790.031 of the
Insurance Code, to amend Section 2188.6 of the Revenue and Taxation
Code, to amend Sections 21107.7, 22651, 22651.05, and 22658 of the
Vehicle Code, and to amend Section 13553 of the Water Code, relating
to common interest developments.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 806, Torres. Common interest developments.
   The Davis-Stirling Common Interest Development Act provides for
the creation and regulation of common interest developments.
   This bill, operative January 1, 2014, would make various technical
conforming changes to reflect a proposed revision and recodification
of the Davis-Stirling Common Interest Development Act, and the
operation of this bill would be contingent upon the enactment and
operation of that revision and recodification.


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

  SECTION 1.  Section 10131.01 of the Business and Professions Code
is amended to read:
   10131.01.  (a) Subdivision (b) of Section 10131 does not apply to
(1) the manager of a hotel, motel, auto and trailer park, to the
resident manager of an apartment building, apartment complex, or
court, or to the employees of that manager, or (2) any person or
entity, including a person employed by a real estate broker, who, on
behalf of another or others, solicits or arranges, or accepts
reservations or money, or both, for transient occupancies described
in paragraphs (1) and (2) of subdivision (b) of Section 1940 of the
Civil Code, in a dwelling unit in a common interest development, as
defined in Section 4100 of the Civil Code, in a dwelling unit in an
apartment building or complex, or in a single-family home, or (3) any
person other than the resident manager or employees of that manager,
performing the following functions, who is the employee of the
property management firm retained to manage a residential apartment
building or complex or court and who is performing under the
supervision and control of a broker of record who is an employee of
that property management firm or a salesperson licensed to the broker
who meets certain minimum requirements as specified in a regulation
issued by the commissioner:
   (A) Showing rental units and common areas to prospective tenants.
   (B) Providing or accepting preprinted rental applications, or
responding to inquiries from a prospective tenant concerning the
completion of the application.
   (C) Accepting deposits or fees for credit checks or administrative
costs and accepting security deposits and rents.
   (D) Providing information about rental rates and other terms and
provisions of a lease or rental agreement, as set out in a schedule
provided by an employer.
   (E) Accepting signed leases and rental agreements from prospective
tenants.
   (b) A broker or salesperson shall exercise reasonable supervision
and control over the activities of nonlicensed persons acting under
paragraph (3) of subdivision (a).
   (c) A broker employing nonlicensed persons to act under paragraph
(3) of subdivision (a) shall comply with Section 10163 for each
apartment building or complex or court where the nonlicensed persons
are employed.
  SEC. 2.  Section 10153.2 of the Business and Professions Code is
amended to read:
   10153.2.  (a) An applicant to take the examination for an original
real estate broker license shall also submit evidence, satisfactory
to the commissioner, of successful completion, at an accredited
institution, of:
   (1) A three-semester unit course, or the quarter equivalent
thereof, in each of the following:
   (A) Real estate practice.
   (B) Legal aspects of real estate.
   (C) Real estate appraisal.
   (D) Real estate financing.
   (E) Real estate economics or accounting.
   (2) A three-semester unit course, or the quarter equivalent
thereof, in three of the following:
   (A) Advanced legal aspects of real estate.
   (B) Advanced real estate finance.
   (C) Advanced real estate appraisal.
   (D) Business law.
   (E) Escrows.
   (F) Real estate principles.
   (G) Property management.
   (H) Real estate office administration.
   (I) Mortgage loan brokering and lending.
   (J) Computer applications in real estate.
   (K) On and after July 1, 2004, California law that relates to
common interest developments, including, but not limited to, topics
addressed in the Davis-Stirling Common Interest Development Act (Part
5 (commencing with Section 4000) of Division 4 of the Civil Code).
   (b) The commissioner shall waive the requirements of this section
for an applicant who is a member of the State Bar of California and
shall waive the requirements for which an applicant has successfully
completed an equivalent course of study as determined under Section
10153.5.
   (c) The commissioner shall extend credit under this section for
any course completed to satisfy requirements of Section 10153.3 or
10153.4.
  SEC. 3.  Section 10177 of the Business and Professions Code, as
added by Section 9 of Chapter 717 of the Statutes of 2011, is amended
to read:
   10177.  The commissioner may suspend or revoke the license of a
real estate licensee, delay the renewal of a license of a real estate
licensee, or deny the issuance of a license to an applicant, who has
done any of the following, or may suspend or revoke the license of a
corporation, delay the renewal of a license of a corporation, or
deny the issuance of a license to a corporation, if an officer,
director, or person owning or controlling 10 percent or more of the
corporation's stock has done any of the following:
   (a) Procured, or attempted to procure, a real estate license or
license renewal, for himself or herself or a salesperson, by fraud,
misrepresentation, or deceit, or by making a material misstatement of
fact in an application for a real estate license, license renewal,
or reinstatement.
   (b) Entered a plea of guilty or nolo contendere to, or been found
guilty of, or been convicted of, a felony, or a crime substantially
related to the qualifications, functions, or duties of a real estate
licensee, and the time for appeal has elapsed or the judgment of
conviction has been affirmed on appeal, irrespective of an order
granting probation following that conviction, suspending the
imposition of sentence, or of a subsequent order under Section 1203.4
of the Penal Code allowing that licensee to withdraw his or her plea
of guilty and to enter a plea of not guilty, or dismissing the
accusation or information.
   (c) Knowingly authorized, directed, connived at, or aided in the
publication, advertisement, distribution, or circulation of a
material false statement or representation concerning his or her
designation or certification of special education, credential, trade
organization membership, or business, or concerning a business
opportunity or a land or subdivision, as defined in Chapter 1
(commencing with Section 11000) of Part 2, offered for sale.
   (d) Willfully disregarded or violated the Real Estate Law (Part 1
(commencing with Section 10000)) or Chapter 1 (commencing with
Section 11000) of Part 2 or the rules and regulations of the
commissioner for the administration and enforcement of the Real
Estate Law and Chapter 1 (commencing with Section 11000) of Part 2.
   (e) Willfully used the term "realtor" or a trade name or insignia
of membership in a real estate organization of which the licensee is
not a member.
   (f) Acted or conducted himself or herself in a manner that would
have warranted the denial of his or her application for a real estate
license, or either had a license denied or had a license issued by
another agency of this state, another state, or the federal
government revoked or suspended for acts that, if done by a real
estate licensee, would be grounds for the suspension or revocation of
a California real estate license, if the action of denial,
revocation, or suspension by the other agency or entity was taken
only after giving the licensee or applicant fair notice of the
charges, an opportunity for a hearing, and other due process
protections comparable to the Administrative Procedure Act (Chapter
3.5 (commencing with Section 11340), Chapter 4 (commencing with
Section 11370), and Chapter 5 (commencing with Section 11500) of Part
1 of Division 3 of Title 2 of the Government Code), and only upon an
express finding of a violation of law by the agency or entity.
   (g) Demonstrated negligence or incompetence in performing an act
for which he or she is required to hold a license.
   (h) As a broker licensee, failed to exercise reasonable
supervision over the activities of his or her salespersons, or, as
the officer designated by a corporate broker licensee, failed to
exercise reasonable supervision and control of the activities of the
corporation for which a real estate license is required.
   (i) Used his or her employment by a governmental agency in a
capacity giving access to records, other than public records, in a
manner that violates the confidential nature of the records.
   (j) Engaged in any other conduct, whether of the same or a
different character than specified in this section, that constitutes
fraud or dishonest dealing.
   (k) Violated any of the terms, conditions, restrictions, and
limitations contained in an order granting a restricted license.
   (l) (1) Solicited or induced the sale, lease, or listing for sale
or lease of residential property on the ground, wholly or in part, of
loss of value, increase in crime, or decline of the quality of the
schools due to the present or prospective entry into the neighborhood
of a person or persons having a characteristic listed in subdivision
(a) or (d) of Section 12955 of the Government Code, as those
characteristics are defined in Sections 12926 and 12926.1,
subdivision (m) and paragraph (1) of subdivision (p) of Section
12955, and Section 12955.2 of the Government Code.
   (2) Notwithstanding paragraph (1), with respect to familial
status, paragraph (1) shall not be construed to apply to housing for
older persons, as defined in Section 12955.9 of the Government Code.
With respect to familial status, nothing in paragraph (1) shall be
construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and
799.5 of the Civil Code, relating to housing for senior citizens.
Subdivision (d) of Section 51 and Section 4760 of the Civil Code and
subdivisions (n), (o), and (p) of Section 12955 of the Government
Code shall apply to paragraph (1).
   (m) Violated the Franchise Investment Law (Division 5 (commencing
with Section 31000) of Title 4 of the Corporations Code) or
regulations of the Commissioner of Corporations pertaining thereto.
   (n) Violated the Corporate Securities Law of 1968 (Division 1
(commencing with Section 25000) of Title 4 of the Corporations Code)
or the regulations of the Commissioner of Corporations pertaining
thereto.
   (o) Failed to disclose to the buyer of real property, in a
transaction in which the licensee is an agent for the buyer, the
nature and extent of a licensee's direct or indirect ownership
interest in that real property. The direct or indirect ownership
interest in the property by a person related to the licensee by blood
or marriage, by an entity in which the licensee has an ownership
interest, or by any other person with whom the licensee has a special
relationship shall be disclosed to the buyer.
   (p) Violated Article 6 (commencing with Section 10237).
   (q) Violated or failed to comply with Chapter 2 (commencing with
Section 2920) of Title 14 of Part 4 of Division 3 of the Civil Code,
related to mortgages.
   If a real estate broker that is a corporation has not done any of
the foregoing acts, either directly or through its employees, agents,
officers, directors, or persons owning or controlling 10 percent or
more of the corporation's stock, the commissioner may not deny the
issuance or delay the renewal of a real estate license to, or suspend
or revoke the real estate license of, the corporation, provided that
any offending officer, director, or stockholder, who has done any of
the foregoing acts individually and not on behalf of the
corporation, has been completely disassociated from any affiliation
or ownership in the corporation. A decision by the commissioner to
delay the renewal of a real estate license shall toll the expiration
of that license until the results of any pending disciplinary actions
against that licensee are final, or until the licensee voluntarily
surrenders his, her, or its license, whichever is earlier.
   This section shall become operative on July 1, 2012.
  SEC. 4.  Section 11003 of the Business and Professions Code is
amended to read:
   11003.  "Planned development" has the same meaning as specified in
Section 4175 of the Civil Code.
  SEC. 5.  Section 11003.2 of the Business and Professions Code is
amended to read:
   11003.2.  "Stock cooperative" has the same meaning as specified in
Section 4190 of the Civil Code, except that, as used in this
chapter, a "stock cooperative" does not include a limited-equity
housing cooperative.
  SEC. 6.  Section 11004 of the Business and Professions Code is
amended to read:
   11004.  "Community apartment project" has the same meaning as
specified in Section 4105 of the Civil Code.
  SEC. 7.  Section 11004.5 of the Business and Professions Code is
amended to read:
   11004.5.  In addition to any provisions of Section 11000, the
reference in this code to "subdivided lands" and "subdivision" shall
include all of the following:
   (a) Any planned development, as defined in Section 11003,
containing five or more lots.
   (b) Any community apartment project, as defined by Section 11004,
containing five or more apartments.
   (c) Any condominium project containing five or more condominiums,
as defined in Section 783 of the Civil Code.
   (d) Any stock cooperative as defined in Section 11003.2, including
any legal or beneficial interests therein, having or intended to
have five or more shareholders.
   (e) Any limited-equity housing cooperative, as defined in Section
11003.4.
   (f) In addition, the following interests shall be subject to this
chapter and the regulations of the commissioner adopted pursuant
thereto:
   (1) Any accompanying memberships or other rights or privileges
created in, or in connection with, any of the forms of development
referred to in subdivision (a), (b), (c), (d), or (e) by any deeds,
conveyances, leases, subleases, assignments, declarations of
restrictions, articles of incorporation, bylaws, or contracts
applicable thereto.
   (2) Any interests or memberships in any owners' association as
defined in Section 4080 of the Civil Code, created in connection with
any of the forms of the development referred to in subdivision (a),
(b), (c), (d), or (e).
   (g) Notwithstanding this section, time-share plans, exchange
programs, incidental benefits, and short-term product subject to
Chapter 2 (commencing with Section 11210) are not "subdivisions" or
"subdivided lands" subject to this chapter.
  SEC. 8.  Section 11010.10 of the Business and Professions Code is
amended to read:
   11010.10.  A person who plans to offer for sale or lease lots or
other interests in a subdivision which sale or lease (a) is not
subject to the provisions of this chapter, (b) does not require the
submission of a notice of intention as provided in Section 11010, or
(c) is subject to this chapter and for which the local jurisdiction
requires review and approval of the declaration, as defined in
Section 4135 of the Civil Code, prior to or concurrently with the
recordation of the subdivision map and prior to the approval of the
declaration pursuant to a notice of intention for a public report,
may submit an application requesting review of the declaration, along
with any required supporting documentation, to the commissioner,
without the filing of a notice of intention for the subdivision for
which the declaration is being prepared. Upon approval, the
commissioner shall give notice to the applicant that the declaration
shall be approved for a subsequent notice of intent filing for any
public report for the subdivision identified in the application,
provided that the subdivision setup is substantially the same as that
originally described in the application for review of the
declaration.
  SEC. 9.  Section 11018.1 of the Business and Professions Code is
amended to read:
   11018.1.  (a) A copy of the public report of the commissioner,
when issued, shall 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. The requirement of this section extends to lots or
parcels offered by the subdivider after repossession. A receipt shall
be taken from the prospective purchaser in a form and manner as set
forth in regulations of the Real Estate Commissioner.
   (b) A copy of the public report shall be given by the owner,
subdivider, or agent at any time, upon oral or written request, to
any member of the public. A copy of the public report and a statement
advising that a copy of the public report may be obtained from the
owner, subdivider or agent at any time, upon oral or written request,
shall be posted in a conspicuous place at any office where sales or
leases or offers to sell or lease lots within the subdivision are
regularly made.
   (c) At the same time that a public report is required to be given
by the owner, subdivider, or agent pursuant to subdivision (a) with
respect to a common interest development, as defined, in Section 4100
of the Civil Code, the owner, subdivider, or agent shall give the
prospective purchaser a copy of the following statement:



   "Common Interest Development General Information


   The project described in the attached Subdivision Public Report is
known as a common-interest development. Read the public report
carefully for more information about the type of development. The
development includes common areas and facilities which will be owned
or operated by an owners' association. Purchase of a lot or unit
automatically entitles and obligates you as a member of the
association and, in most cases, includes a beneficial interest in the
areas and facilities. Since membership in the association is
mandatory, you should be aware of the following information before
you purchase:
   Your ownership in this development and your rights and remedies as
a member of its association will be controlled by governing
instruments which generally include a Declaration of Restrictions
(also known as CC&Rs), Articles of Incorporation (or association),
and bylaws. The provisions of these documents are intended to be, and
in most cases are, enforceable in a court of law. Study these
documents carefully before entering into a contract to purchase a
subdivision interest.
   In order to provide funds for operation and maintenance of the
common facilities, the association will levy assessments against your
lot or unit. If you are delinquent in the payment of assessments,
the association may enforce payment through court proceedings or your
lot or unit may be liened and sold through the exercise of a power
of sale. The anticipated income and expenses of the association,
including the amount that you may expect to pay through assessments,
are outlined in the proposed budget. Ask to see a copy of the budget
if the subdivider has not already made it available for your
examination.
   A homeowner association provides a vehicle for the ownership and
use of recreational and other common facilities which were designed
to attract you to buy in this development. The association also
provides a means to accomplish architectural control and to provide a
base for homeowner interaction on a variety of issues. The purchaser
of an interest in a common-interest development should contemplate
active participation in the affairs of the association. He or she
should be willing to serve on the board of directors or on committees
created by the board. In short, "they" in a common interest
development is "you." Unless you serve as a member of the governing
board or on a committee appointed by the board, your control of the
operation of the common areas and facilities is limited to your vote
as a member of the association. There are actions that can be taken
by the governing body without a vote of the members of the
association which can have a significant impact upon the quality of
life for association members.
   Until there is a sufficient number of purchasers of lots or units
in a common interest development to elect a majority of the governing
body, it is likely that the subdivider will effectively control the
affairs of the association. It is frequently necessary and equitable
that the subdivider do so during the early stages of development. It
is vitally important to the owners of individual subdivision
interests that the transition from subdivider to resident-owner
control be accomplished in an orderly manner and in a spirit of
cooperation.
   When contemplating the purchase of a dwelling in a common interest
development, you should consider factors beyond the attractiveness
of the dwelling units themselves. Study the governing instruments and
give careful thought to whether you will be able to exist happily in
an atmosphere of cooperative living where the interests of the group
must be taken into account as well as the interests of the
individual. Remember that managing a common interest development is
very much like governing a small community ... the management can
serve you well, but you will have to work for its success."

   Failure to provide the statement in accordance with this
subdivision shall not be deemed a violation subject to Section 10185.

  SEC. 10.  Section 11018.12 of the Business and Professions Code is
amended to read:
   11018.12.  (a) The commissioner may issue a conditional public
report for a subdivision specified in Section 11004.5 if the
requirements of subdivision (e) are met, all deficiencies and
substantive inadequacies in the documents that are required to make
an application for a final public report for the subdivision
substantially complete have been corrected, the material elements of
the setup of the offering to be made under the authority of the
conditional public report have been established, and all requirements
for the issuance of a public report set forth in the regulations of
the commissioner have been satisfied, except for one or more of the
following requirements, as applicable:
   (1) A final map has not been recorded.
   (2) A condominium plan pursuant to Section 4120 of the Civil Code
has not been recorded.
   (3) A declaration of covenants, conditions, and restrictions
pursuant to Sections 4250 and 4255 of the Civil Code has not been
recorded.
   (4) A declaration of annexation has not been recorded.
   (5) A recorded subordination of existing liens to the declaration
of covenants, conditions, and restrictions or declaration of
annexation, or escrow instructions to effect recordation prior to the
first sale, are lacking.
   (6) Filed articles of incorporation are lacking.
   (7) A current preliminary report of a licensed title insurance
company issued after filing of the final map and recording of the
declaration covering all subdivision interests to be included in the
public report has not been provided.
   (8) Other requirements the commissioner determines are likely to
be timely satisfied by the applicant, notwithstanding the fact that
the failure to meet these requirements makes the application
qualitatively incomplete.
   (b) The commissioner may issue a conditional public report for a
subdivision not referred to or specified in Section 11000.1 or
11004.5 if the requirements of subdivision (e) are met, all
deficiencies and substantive inadequacies in the documents that are
required to make an application for a final public report for the
subdivision substantially complete have been corrected, the material
elements of the setup of the offering to be made under the authority
of the conditional public report have been established, and all
requirements for issuance of a public report set forth in the
regulations of the commissioner have been satisfied, except for one
or more of the following requirements, as applicable:
   (1) A final map has not been recorded.
   (2) A declaration of covenants, conditions, and restrictions has
not been recorded.
   (3) A current preliminary report of a licensed title insurance
company issued after filing of the final map and recording of the
declaration covering all subdivision interests to be included in the
public report has not been provided.
   (4) Other requirements the commissioner determines are likely to
be timely satisfied by the applicant, notwithstanding the fact that
the failure to meet these requirements makes the application
qualitatively incomplete.
   (c) A decision by the commissioner to not issue a conditional
public report shall be noticed in writing to the applicant within
five business days and that notice shall specifically state the
reasons why the report is not being issued.
   (d) Notwithstanding the provisions of Section 11018.2, a person
may sell or lease, or offer for sale or lease, lots or parcels in a
subdivision pursuant to a conditional public report if, as a
condition of the sale or lease or offer for sale or lease, delivery
of legal title or other interest contracted for will not take place
until issuance of a public report and provided that the requirements
of subdivision (e) are met.
   (e) (1) Evidence shall be supplied that all purchase money will be
deposited in compliance with subdivision (a) of Section 11013.2 or
subdivision (a) of Section 11013.4, and in the case of a subdivision
referred to in subdivision (a) of this section, evidence shall be
given of compliance with paragraphs (1) and (2) of subdivision (a) of
Section 11018.5.
   (2) A description of the nature of the transaction shall be
supplied.
   (3) Provision shall be made for the return of the entire sum of
money paid or advanced by the purchaser if a subdivision public
report has not been issued during the term of the conditional public
report, or as extended, or the purchaser is dissatisfied with the
public report because of a change pursuant to Section 11012.
   (f) A subdivider, principal, or his or her agent shall provide a
prospective purchaser a copy of the conditional public report and a
written statement including all of the following:
   (1) Specification of the information required for issuance of a
public report.
   (2) Specification of the information required in the public report
that is not available in the conditional public report, along with a
statement of the reasons why that information is not available at
the time of issuance of the conditional public report.
   (3) A statement that no person acting as a principal or agent
shall sell or lease, or offer for sale or lease, lots or parcels in a
subdivision for which a conditional public report has been issued
except as provided in this article.
   (4) Specification of the requirements of subdivision (e).
   (g) The prospective purchaser shall sign a receipt that he or she
has received and has read the conditional public report and the
written statement provided pursuant to subdivision (f).
   (h) The term of a conditional public report shall not exceed six
months, and may be renewed for one additional term of six months if
the commissioner determines that the requirements for issuance of a
public report are likely to be satisfied during the renewal term.
                                                              (i) The
term of a conditional public report for attached residential
condominium units, as defined pursuant to Section 783 of the Civil
Code, consisting of 25 units or more as specified on the approved
tentative tract map, shall not exceed 30 months and may be renewed
for one additional term of six months if the commissioner determines
that the requirements for issuance of a public report are likely to
be satisfied during the renewal term.
  SEC. 11.  Section 11018.6 of the Business and Professions Code is
amended to read:
   11018.6.  Any person offering to sell or lease any interest
subject to the requirements of subdivision (a) of Section 11018.1 in
a subdivision described in Section 11004.5 shall make a copy of each
of the following documents available for examination by a prospective
purchaser or lessee before the execution of an offer to purchase or
lease and shall give a copy thereof to each purchaser or lessee as
soon as practicable before transfer of the interest being acquired by
the purchaser or lessee:
   (a) The declaration of covenants, conditions, and restrictions for
the subdivision.
   (b) Articles of incorporation or association for the subdivision
owners association.
   (c) Bylaws for the subdivision owners association.
   (d) Any other instrument which establishes or defines the common,
mutual, and reciprocal rights, and responsibilities of the owners or
lessees of interests in the subdivision as shareholders or members of
the subdivision owners association or otherwise.
   (e) To the extent available, the current financial information and
related statements as specified in Sections 5300 and 5565 of the
Civil Code, for subdivisions subject to those provisions.
   (f) A statement prepared by the governing body of the association
setting forth the outstanding delinquent assessments and related
charges levied by the association against the subdivision interests
in question under authority of the governing instruments for the
subdivision and association.
  SEC. 12.  Section 11211.7 of the Business and Professions Code is
amended to read:
   11211.7.  (a) Any time-share plan registered pursuant to this
chapter to which the Davis-Stirling Common Interest Development Act
(Part 5 (commencing with Section 4000) of Division 4 of the Civil
Code) might otherwise apply is exempt from that act, except for
Sections 4090, 4177, 4178, 4215, 4220, 4230, 4260 to 4275, inclusive,
4500 to 4510, inclusive, 4625 to 4650, inclusive, 4775 to 4790,
inclusive, 4900 to 4950, inclusive, 5500 to 5560, inclusive, and 5975
of the Civil Code.
   (b) (1) To the extent that a single site time-share plan or
component site of a multisite time-share plan located in the state is
structured as a condominium or other common interest development,
and there is any inconsistency between the applicable provisions of
this chapter and the Davis-Stirling Common Interest Development Act,
the applicable provisions of this chapter shall control.
   (2) To the extent that a time-share plan is part of a mixed use
project where the time-share plan comprises a portion of a
condominium or other common interest development, the applicable
provisions of this chapter shall apply to that portion of the project
uniquely comprising the time-share plan, and the Davis-Stirling
Common Interest Development Act shall apply to the project as a
whole.
   (c) (1) The offering of any time-share plan, exchange program,
incidental benefit, or short term product in this state that is
subject to the provisions of this chapter shall be exempt from
Sections 1689.5 to 1689.14, inclusive, of the Civil Code (Home
Solicitation Sales), Sections 1689.20 to 1689.24, inclusive, of the
Civil Code (Seminar Sales), and Sections 1812.100 to 1812.129,
inclusive, of the Civil Code (Contracts for Discount Buying
Services).
   (2) A developer or exchange company that, in connection with a
time-share sales presentation or offer to arrange an exchange, offers
a purchaser the opportunity to utilize the services of an affiliate,
subsidiary, or third-party entity in connection with wholesale or
retail air or sea transportation, shall not, in and of itself, cause
the developer or exchange company to be considered a seller of travel
subject to Sections 17550 to 17550.34, inclusive, of the Business
and Professions Code, so long as the entity that actually provides or
arranges the air or sea transportation is registered as a seller of
travel with the California Attorney General's office or is otherwise
exempt under those sections.
   (d) To the extent certain sections in this chapter require
information and disclosure that by their terms only apply to real
property time-share plans, those requirements shall not apply to
personal property time-share plans.
  SEC. 13.  Section 11500 of the Business and Professions Code is
amended to read:
   11500.  For purposes of this chapter, the following definitions
apply:
   (a) "Common interest development" means a residential development
identified in Section 4100 of the Civil Code.
   (b) "Association" has the same meaning as defined in Section 4080
of the Civil Code.
   (c) "Financial services" means acts performed or offered to be
performed, for compensation, for an association, including, but not
limited to, the preparation of internal unaudited financial
statements, internal accounting and bookkeeping functions, billing of
assessments, and related services.
   (d) "Management services" means acts performed or offered to be
performed in an advisory capacity for an association including, but
not limited to, the following:
   (1) Administering or supervising the collection, reporting, and
archiving of the financial or common area assets of an association or
common interest development, at the direction of the association's
board of directors.
   (2) Implementing resolutions and directives of the board of
directors of the association elected to oversee the operation of a
common interest development.
   (3) Implementing provisions of governing documents, as defined in
Section 4150 of the Civil Code, that govern the operation of the
common interest development.
   (4) Administering association contracts, including insurance
contracts, within the scope of the association's duties or with other
common interest development managers, vendors, contractors, and
other third-party providers of goods and services to an association
or common interest development.
   (e) "Professional association for common interest development
managers" means an organization that meets all of the following:
   (1) Has at least 200 members or certificants who are common
interest development managers in California.
   (2) Has been in existence for at least five years.
   (3) Operates pursuant to Section 501(c) of the Internal Revenue
Code.
   (4) Certifies that a common interest development manager has met
the criteria set forth in Section 11502 without requiring membership
in the association.
   (5) Requires adherence to a code of professional ethics and
standards of practice for certified common interest development
managers.
  SEC. 14.  Section 11502 of the Business and Professions Code is
amended to read:
   11502.  In order to be called a "certified common interest
development manager," a person shall meet one of the following
requirements:
   (a) Prior to July 1, 2003, has passed a knowledge, skills, and
aptitude examination as specified in Section 11502.5 or has been
granted a certification or a designation by a professional
association for common interest development managers, and who has,
within five years prior to July 1, 2004, received instruction in
California law pursuant to paragraph (1) of subdivision (b).
   (b) On or after July 1, 2003, has successfully completed an
educational curriculum that shall be no less than a combined 30 hours
in coursework described in this subdivision and passed an
examination or examinations that test competence in common interest
development management in the following areas:
   (1) The law that relates to the management of common interest
developments, including, but not limited to, the following courses of
study:
   (A) Topics covered by the Davis-Stirling Common Interest
Development Act, contained in Part 5 (commencing with Section 4000)
of Division 4 of the Civil Code, including, but not limited to, the
types of California common interest developments, disclosure
requirements pertaining to common interest developments, meeting
requirements, financial reporting requirements, and member access to
association records.
   (B) Personnel issues, including, but not limited to, general
matters related to independent contractor or employee status, the
laws on harassment, the Unruh Civil Rights Act, the California Fair
Employment and Housing Act, and the Americans with Disabilities Act.
   (C) Risk management, including, but not limited to, insurance
coverage, maintenance, operations, and emergency preparedness.
   (D) Property protection for associations, including, but not
limited to, pertinent matters relating to environmental hazards such
as asbestos, radon gas, and lead-based paint, the Vehicle Code, local
and municipal regulations, family day care facilities, energy
conservation, Federal Communications Commission rules and
regulations, and solar energy systems.
   (E) Business affairs of associations, including, but not limited
to, necessary compliance with federal, state, and local law.
   (F) Basic understanding of governing documents, codes, and
regulations relating to the activities and affairs of associations
and common interest developments.
   (2) Instruction in general management that is related to the
managerial and business skills needed for management of a common
interest development, including, but not limited to, the following:
   (A) Finance issues, including, but not limited to, budget
preparation; management; administration or supervision of the
collection, reporting, and archiving of the financial or common area
assets of an association or common interest development; bankruptcy
laws; and assessment collection.
   (B) Contract negotiation and administration.
   (C) Supervision of employees and staff.
   (D) Management of maintenance programs.
   (E) Management and administration of rules, regulations, and
parliamentary procedures.
   (F) Management and administration of architectural standards.
   (G) Management and administration of the association's
recreational programs and facilities.
   (H) Management and administration of owner and resident
communications.
   (I) Training and strategic planning for the association's board of
directors and its committees.
   (J) Implementation of association policies and procedures.
   (K) Ethics, professional conduct, and standards of practice for
common interest development managers.
   (L) Current issues relating to common interest developments.
   (M) Conflict avoidance and resolution mechanisms.
  SEC. 15.  Section 11504 of the Business and Professions Code is
amended to read:
   11504.  On or before September 1, 2003, and annually thereafter, a
person who either provides or contemplates providing the services of
a common interest development manager to an association shall
disclose to the board of directors of the association the following
information:
   (a) Whether or not the common interest development manager has met
the requirements of Section 11502 so he or she may be called a
certified common interest development manager.
   (b) The name, address, and telephone number of the professional
association that certified the common interest development manager,
the date the manager was certified, and the status of the
certification.
   (c) The location of his or her primary office.
   (d) Prior to entering into or renewing a contract with an
association, the common interest development manager shall disclose
to the board of directors of the association or common interest
development whether the fidelity insurance of the common interest
development manager or his or her employer covers the current year's
operating and reserve funds of the association. This requirement
shall not be construed to compel an association to require a common
interest development manager to obtain or maintain fidelity
insurance.
   (e) Whether the common interest development manager possesses an
active real estate license.
   This section may not preclude a common interest development
manager from disclosing information as required in Section 5375 of
the Civil Code.
  SEC. 16.  Section 11505 of the Business and Professions Code is
amended to read:
   11505.  It is an unfair business practice for a common interest
development manager, a company that employs the common interest
development manager, or a company that is controlled by a company
that also has a financial interest in a company employing that
manager, to do any of the following:
   (a) On or after July 1, 2003, to hold oneself out or use the title
of "certified common interest development manager" or any other term
that implies or suggests that the person is certified as a common
interest development manager without meeting the requirements of
Section 11502.
   (b) To state or advertise that he or she is certified, registered,
or licensed by a governmental agency to perform the functions of a
certified common interest development manager.
   (c) To state or advertise a registration or license number, unless
the license or registration is specified by a statute, regulation,
or ordinance.
   (d) To fail to comply with any item to be disclosed in Section
11504 of this code, or Section 5375 of the Civil Code.
  SEC. 17.  Section 23426.5 of the Business and Professions Code is
amended to read:
   23426.5.  (a) For purposes of this article, "club" also means any
tennis club that maintains not less than four regulation tennis
courts, together with the necessary facilities and clubhouse, has
members paying regular monthly dues, has been in existence for not
less than 45 years, and is not associated with a common interest
development as defined in Section 4100 of the Civil Code, a community
apartment project as defined in Section 11004 of this code, a
project consisting of condominiums as defined in Section 783 of the
Civil Code, or a mobilehome park as defined in Section 18214 of the
Health and Safety Code.
   (b) It shall be unlawful for any club licensed pursuant to this
section to make any discrimination, distinction, or restriction
against any person on account of age or any characteristic listed or
defined in subdivision (b) or (e) of Section 51 of the Civil Code.
  SEC. 18.  Section 23428.20 of the Business and Professions Code is
amended to read:
   23428.20.  (a) For the purposes of this article, "club" also means
any bona fide nonprofit corporation that has been in existence for
not less than nine years, has more than 8,500 memberships issued and
outstanding to owners of condominiums and owners of memberships in
stock cooperatives, and owns, leases, operates, or maintains
recreational facilities for its members.
   (b) For the purposes of this article, "club" also means any bona
fide nonprofit corporation that was formed as a condominium
homeowners' association, has at least 250 members, has served daily
meals to its members and guests for a period of not less than 12
years, owns or leases, operates, and maintains a clubroom or rooms
for its membership, has an annual fee of not less than nine hundred
dollars ($900) per year per member, and has as a condition of
membership that one member of each household be at least 54 years
old.
   (c) Section 23399 and the numerical limitation of Section 23430
shall not apply to a club defined in this section.
   (d) No license shall be issued pursuant to this section to any
club that withholds membership or denies facilities or services to
any person on account of any basis listed in subdivision (a) or (d)
of Section 12955 of the Government Code, as those bases are defined
in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
subdivision (p) of Section 12955, and Section 12955.2 of the
Government Code.
   (e) Notwithstanding subdivision (d), with respect to familial
status, subdivision (d) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (d)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51 and Section 4760 of the Civil
Code and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code shall apply to subdivision (d).
  SEC. 19.  Section 51.11 of the Civil Code is amended to read:
   51.11.  (a) The Legislature finds and declares that this section
is essential to establish and preserve housing for senior citizens.
There are senior citizens who need special living environments, and
find that there is an inadequate supply of this type of housing in
the state.
   (b) For the purposes of this section, the following definitions
apply:
   (1) "Qualifying resident" or "senior citizen" means a person 62
years of age or older, or 55 years of age or older in a senior
citizen housing development.
   (2) "Qualified permanent resident" means a person who meets both
of the following requirements:
   (A) Was residing with the qualifying resident or senior citizen
prior to the death, hospitalization, or other prolonged absence of,
or the dissolution of marriage with, the qualifying resident or
senior citizen.
   (B) Was 45 years of age or older, or was a spouse, cohabitant, or
person providing primary physical or economic support to the
qualifying resident or senior citizen.
   (3) "Qualified permanent resident" also means a disabled person or
person with a disabling illness or injury who is a child or
grandchild of the senior citizen or a qualified permanent resident as
defined in paragraph (2) who needs to live with the senior citizen
or qualified permanent resident because of the disabling condition,
illness, or injury. For purposes of this section, "disabled" means a
person who has a disability as defined in subdivision (b) of Section
54. A "disabling injury or illness" means an illness or injury which
results in a condition meeting the definition of disability set forth
in subdivision (b) of Section 54.
   (A) For any person who is a qualified permanent resident under
paragraph (3) whose disabling condition ends, the owner, board of
directors, or other governing body may require the formerly disabled
resident to cease residing in the development upon receipt of six
months' written notice; provided, however, that the owner, board of
directors, or other governing body may allow the person to remain a
resident for up to one year, after the disabling condition ends.
   (B) The owner, board of directors, or other governing body of the
senior citizen housing development may take action to prohibit or
terminate occupancy by a person who is a qualified permanent resident
under paragraph (3) if the owner, board of directors, or other
governing body finds, based on credible and objective evidence, that
the person is likely to pose a significant threat to the health or
safety of others that cannot be ameliorated by means of a reasonable
accommodation; provided, however, that action to prohibit or
terminate the occupancy may be taken only after doing both of the
following:
   (i) Providing reasonable notice to and an opportunity to be heard
for the disabled person whose occupancy is being challenged, and
reasonable notice to the coresident parent or grandparent of that
person.
   (ii) Giving due consideration to the relevant, credible, and
objective information provided in that hearing. The evidence shall be
taken and held in a confidential manner, pursuant to a closed
session, by the owner, board of directors, or other governing body in
order to preserve the privacy of the affected persons.
   The affected persons shall be entitled to have present at the
hearing an attorney or any other person authorized by them to speak
on their behalf or to assist them in the matter.
   (4) "Senior citizen housing development" means a residential
development developed with more than 20 units as a senior community
by its developer and zoned as a senior community by a local
governmental entity, or characterized as a senior community in its
governing documents, as these are defined in Section 4150, or
qualified as a senior community under the federal Fair Housing
Amendments Act of 1988, as amended. Any senior citizen housing
development which is required to obtain a public report under Section
11010 of the Business and Professions Code and which submits its
application for a public report after July 1, 2001, shall be required
to have been issued a public report as a senior citizen housing
development under Section 11010.05 of the Business and Professions
Code.
   (5) "Dwelling unit" or "housing" means any residential
accommodation other than a mobilehome.
   (6) "Cohabitant" refers to persons who live together as husband
and wife, or persons who are domestic partners within the meaning of
Section 297 of the Family Code.
   (7) "Permitted health care resident" means a person hired to
provide live-in, long-term, or terminal health care to a qualifying
resident, or a family member of the qualifying resident providing
that care. For the purposes of this section, the care provided by a
permitted health care resident must be substantial in nature and must
provide either assistance with necessary daily activities or medical
treatment, or both.
   A permitted health care resident shall be entitled to continue his
or her occupancy, residency, or use of the dwelling unit as a
permitted resident in the absence of the senior citizen from the
dwelling unit only if both of the following are applicable:
   (A) The senior citizen became absent from the dwelling due to
hospitalization or other necessary medical treatment and expects to
return to his or her residence within 90 days from the date the
absence began.
   (B) The absent senior citizen or an authorized person acting for
the senior citizen submits a written request to the owner, board of
directors, or governing board stating that the senior citizen desires
that the permitted health care resident be allowed to remain in
order to be present when the senior citizen returns to reside in the
development.
   Upon written request by the senior citizen or an authorized person
acting for the senior citizen, the owner, board of directors, or
governing board shall have the discretion to allow a permitted health
care resident to remain for a time period longer than 90 days from
the date that the senior citizen's absence began, if it appears that
the senior citizen will return within a period of time not to exceed
an additional 90 days.
   (c) The covenants, conditions, and restrictions and other
documents or written policy shall set forth the limitations on
occupancy, residency, or use on the basis of age. Any limitation
shall not be more exclusive than to require that one person in
residence in each dwelling unit may be required to be a senior
citizen and that each other resident in the same dwelling unit may be
required to be a qualified permanent resident, a permitted health
care resident, or a person under 55 years of age whose occupancy is
permitted under subdivision (g) of this section or subdivision (b) of
Section 51.12. That limitation may be less exclusive, but shall at
least require that the persons commencing any occupancy of a dwelling
unit include a senior citizen who intends to reside in the unit as
his or her primary residence on a permanent basis. The application of
the rules set forth in this subdivision regarding limitations on
occupancy may result in less than all of the dwellings being actually
occupied by a senior citizen.
   (d) The covenants, conditions, and restrictions or other documents
or written policy shall permit temporary residency, as a guest of a
senior citizen or qualified permanent resident, by a person of less
than 55 years of age for periods of time, not more than 60 days in
any year, that are specified in the covenants, conditions, and
restrictions or other documents or written policy.
   (e) Upon the death or dissolution of marriage, or upon
hospitalization, or other prolonged absence of the qualifying
resident, any qualified permanent resident shall be entitled to
continue his or her occupancy, residency, or use of the dwelling unit
as a permitted resident. This subdivision shall not apply to a
permitted health care resident.
   (f) The covenants, conditions, and restrictions or other documents
or written policies applicable to any condominium, stock
cooperative, limited-equity housing cooperative, planned development,
or multiple-family residential property that contained age
restrictions on January 1, 1984, shall be enforceable only to the
extent permitted by this section, notwithstanding lower age
restrictions contained in those documents or policies.
   (g) Any person who has the right to reside in, occupy, or use the
housing or an unimproved lot subject to this section on or after
January 1, 1985, shall not be deprived of the right to continue that
residency, occupancy, or use as the result of the enactment of this
section by Chapter 1147 of the Statutes of 1996.
   (h) A housing development may qualify as a senior citizen housing
development under this section even though, as of January 1, 1997, it
does not meet the definition of a senior citizen housing development
specified in subdivision (b), if the development complies with that
definition for every unit that becomes occupied after January 1,
1997, and if the development was once within that definition, and
then became noncompliant with the definition as the result of any one
of the following:
   (1) The development was ordered by a court or a local, state, or
federal enforcement agency to allow persons other than qualifying
residents, qualified permanent residents, or permitted health care
residents to reside in the development.
   (2) The development received a notice of a pending or proposed
action in, or by, a court, or a local, state, or federal enforcement
agency, which action could have resulted in the development being
ordered by a court or a state or federal enforcement agency to allow
persons other than qualifying residents, qualified permanent
residents, or permitted health care residents to reside in the
development.
   (3) The development agreed to allow persons other than qualifying
residents, qualified permanent residents, or permitted health care
residents to reside in the development by entering into a
stipulation, conciliation agreement, or settlement agreement with a
local, state, or                                              federal
enforcement agency or with a private party who had filed, or
indicated an intent to file, a complaint against the development with
a local, state, or federal enforcement agency, or file an action in
a court.
   (4) The development allowed persons other than qualifying
residents, qualified permanent residents, or permitted health care
residents to reside in the development on the advice of counsel in
order to prevent the possibility of an action being filed by a
private party or by a local, state, or federal enforcement agency.
   (i) The covenants, conditions, and restrictions or other documents
or written policy of the senior citizen housing development shall
permit the occupancy of a dwelling unit by a permitted health care
resident during any period that the person is actually providing
live-in, long-term, or hospice health care to a qualifying resident
for compensation.
   (j) This section shall only apply to the County of Riverside.
  SEC. 20.  Section 714 of the Civil Code is amended to read:
   714.  (a) Any covenant, restriction, or condition contained in any
deed, contract, security instrument, or other instrument affecting
the transfer or sale of, or any interest in, real property, and any
provision of a governing document, as defined in Section 4150, that
effectively prohibits or restricts the installation or use of a solar
energy system is void and unenforceable.
   (b) This section does not apply to provisions that impose
reasonable restrictions on solar energy systems. However, it is the
policy of the state to promote and encourage the use of solar energy
systems and to remove obstacles thereto. Accordingly, reasonable
restrictions on a solar energy system are those restrictions that do
not significantly increase the cost of the system or significantly
decrease its efficiency or specified performance, or that allow for
an alternative system of comparable cost, efficiency, and energy
conservation benefits.
   (c) (1) A solar energy system shall meet applicable health and
safety standards and requirements imposed by state and local
permitting authorities.
   (2) A solar energy system for heating water shall be certified by
the Solar Rating Certification Corporation (SRCC) or other nationally
recognized certification agencies. SRCC is a nonprofit third party
supported by the United States Department of Energy. The
certification shall be for the entire solar energy system and
installation.
   (3) A solar energy system for producing electricity shall also
meet all applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories such as
Underwriters Laboratories and, where applicable, rules of the Public
Utilities Commission regarding safety and reliability.
   (d) For the purposes of this section:
   (1) (A) For solar domestic water heating systems or solar swimming
pool heating systems that comply with state and federal law,
"significantly" means an amount exceeding 20 percent of the cost of
the system or decreasing the efficiency of the solar energy system by
an amount exceeding 20 percent, as originally specified and
proposed.
   (B) For photovoltaic systems that comply with state and federal
law, "significantly" means an amount not to exceed two thousand
dollars ($2,000) over the system cost as originally specified and
proposed, or a decrease in system efficiency of an amount exceeding
20 percent as originally specified and proposed.
   (2) "Solar energy system" has the same meaning as defined in
paragraphs (1) and (2) of subdivision (a) of Section 801.5.
   (e) (1) Whenever approval is required for the installation or use
of a solar energy system, the application for approval shall be
processed and approved by the appropriate approving entity in the
same manner as an application for approval of an architectural
modification to the property, and shall not be willfully avoided or
delayed.
   (2) For an approving entity that is a homeowners' association, as
defined in Section 4080, and that is not a public entity, both of the
following shall apply:
   (A) The approval or denial of an application shall be in writing.
   (B) If an application is not denied in writing within 60 days from
the date of receipt of the application, the application shall be
deemed approved, unless that delay is the result of a reasonable
request for additional information.
   (f) Any entity, other than a public entity, that willfully
violates this section shall be liable to the applicant or other party
for actual damages occasioned thereby, and shall pay a civil penalty
to the applicant or other party in an amount not to exceed one
thousand dollars ($1,000).
   (g) In any action to enforce compliance with this section, the
prevailing party shall be awarded reasonable attorney's fees.
   (h) (1) A public entity that fails to comply with this section may
not receive funds from a state-sponsored grant or loan program for
solar energy. A public entity shall certify its compliance with the
requirements of this section when applying for funds from a
state-sponsored grant or loan program.
   (2) A local public entity may not exempt residents in its
jurisdiction from the requirements of this section.
  SEC. 21.  Section 714.1 of the Civil Code is amended to read:
   714.1.  Notwithstanding Section 714, any association, as defined
in Section 4080, may impose reasonable provisions which:
   (a) Restrict the installation of solar energy systems installed in
common areas, as defined in Section 4095, to those systems approved
by the association.
   (b) Require the owner of a separate interest, as defined in
Section 4185, to obtain the approval of the association for the
installation of a solar energy system in a separate interest owned by
another.
   (c) Provide for the maintenance, repair, or replacement of roofs
or other building components.
   (d) Require installers of solar energy systems to indemnify or
reimburse the association or its members for loss or damage caused by
the installation, maintenance, or use of the solar energy system.
  SEC. 22.  Section 782 of the Civil Code is amended to read:
   782.  (a) Any provision in any deed of real property in
California, whether executed before or after the effective date of
this section, that purports to restrict the right of any persons to
sell, lease, rent, use, or occupy the property to persons having any
characteristic listed in subdivision (a) or (d) of Section 12955 of
the Government Code, as those bases are defined in Sections 12926,
12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
Section 12955 and Section 12955.2 of the Government Code, by
providing for payment of a penalty, forfeiture, reverter, or
otherwise, is void.
   (b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5, relating to housing for senior citizens. Subdivision (d)
of Section 51 and Section 4760 of this code and subdivisions (n),
(o), and (p) of Section 12955 of the Government Code shall apply to
subdivision (a).
  SEC. 23.  Section 782.5 of the Civil Code is amended to read:
   782.5.  (a) Any deed or other written instrument that relates to
title to real property, or any written covenant, condition, or
restriction annexed or made a part of, by reference or otherwise, any
deed or instrument that relates to title to real property, which
contains any provision that purports to forbid, restrict, or
condition the right of any person or persons to sell, buy, lease,
rent, use, or occupy the property on account of any basis listed in
subdivision (a) or (d) of Section 12955 of the Government Code, as
those bases are defined in Sections 12926, 12926.1, subdivision (m)
and paragraph (1) of subdivision (p) of Section 12955, and Section
12955.2 of the Government Code, with respect to any person or
persons, shall be deemed to be revised to omit that provision.
   (b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5, relating to housing for senior citizens. Subdivision (d)
of Section 51 and Section 4760 of this code and subdivisions (n),
(o), and (p) of Section 12955 of the Government Code shall apply to
subdivision (a).
   (c) This section shall not be construed to limit or expand the
powers of a court to reform a deed or other written instrument.
  SEC. 24.  Section 783 of the Civil Code is amended to read:
   783.  A condominium is an estate in real property described in
Section 4125. A condominium may, with respect to the duration of its
enjoyment, be either (1) an estate of inheritance or perpetual
estate, (2) an estate for life, (3) an estate for years, such as a
leasehold or a subleasehold, or (4) any combination of the foregoing.

  SEC. 25.  Section 783.1 of the Civil Code is amended to read:
   783.1.  In a stock cooperative, as defined in Section 4190, both
the separate interest, as defined in paragraph (4) of subdivision (a)
of Section 4185, and the correlative interest in the stock
cooperative corporation, however designated, are interests in real
property.
  SEC. 26.  Section 798.20 of the Civil Code is amended to read:
   798.20.  (a) Membership in any private club or organization that
is a condition for tenancy in a park shall not be denied on any basis
listed in subdivision (a) or (d) of Section 12955 of the Government
Code, as those bases are defined in Sections 12926, 12926.1,
subdivision (m) and paragraph (1) of subdivision (p) of Section
12955, and Section 12955.2 of the Government Code.
   (b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5, relating to housing for senior citizens. Subdivision (d)
of Section 51 and Section 4760 of this code and subdivisions (n),
(o), and (p) of Section 12955 of the Government Code shall apply to
subdivision (a).
  SEC. 27.  Section 799.10 of the Civil Code is amended to read:
   799.10.  A resident may not be prohibited from displaying a
political campaign sign relating to a candidate for election to
public office or to the initiative, referendum, or recall process in
the window or on the side of a manufactured home or mobilehome, or
within the site on which the home is located or installed. The size
of the face of a political sign may not exceed six square feet, and
the sign may not be displayed in excess of a period of time from 90
days prior to an election to 15 days following the election, unless a
local ordinance within the jurisdiction where the manufactured home
or mobilehome subject to this article is located imposes a more
restrictive period of time for the display of such a sign. In the
event of a conflict between the provisions of this section and the
provisions of Part 5 (commencing with Section 4000) of Division 4,
relating to the size and display of political campaign signs, the
provisions of this section shall prevail.
  SEC. 28.  Section 800.25 of the Civil Code is amended to read:
   800.25.  (a) Membership in any private club or organization that
is a condition for tenancy in a floating home marina shall not be
denied on any basis listed in subdivision (a) or (d) of Section 12955
of the Government Code, as those bases are defined in Sections
12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p)
of Section 12955, and Section 12955.2 of the Government Code.
   (b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5, relating to housing for senior citizens. Subdivision (d)
of Section 51 and Section 4760 of this code and subdivisions (n),
(o), and (p) of Section 12955 of the Government Code shall apply to
subdivision (a).
  SEC. 29.  Section 895 of the Civil Code is amended to read:
   895.  (a) "Structure" means any residential dwelling, other
building, or improvement located upon a lot or within a common area.
   (b) "Designed moisture barrier" means an installed moisture
barrier specified in the plans and specifications, contract
documents, or manufacturer's recommendations.
   (c) "Actual moisture barrier" means any component or material,
actually installed, that serves to any degree as a barrier against
moisture, whether or not intended as a barrier against moisture.
   (d) "Unintended water" means water that passes beyond, around, or
through a component or the material that is designed to prevent that
passage.
   (e) "Close of escrow" means the date of the close of escrow
between the builder and the original homeowner. With respect to
claims by an association, as defined in Section 4080, "close of
escrow" means the date of substantial completion, as defined in
Section 337.15 of the Code of Civil Procedure, or the date the
builder relinquishes control over the association's ability to decide
whether to initiate a claim under this title, whichever is later.
   (f) "Claimant" or "homeowner" includes the individual owners of
single-family homes, individual unit owners of attached dwellings
and, in the case of a common interest development, any association as
defined in Section 4080.
  SEC. 30.  Section 935 of the Civil Code is amended to read:
   935.  To the extent that provisions of this chapter are enforced
and those provisions are substantially similar to provisions in
Section 6000, but an action is subsequently commenced under Section
6000, the parties are excused from performing the substantially
similar requirements under Section 6000.
  SEC. 31.  Section 945 of the Civil Code is amended to read:
   945.  The provisions, standards, rights, and obligations set forth
in this title are binding upon all original purchasers and their
successors-in-interest. For purposes of this title, associations and
others having the rights set forth in Sections 4810 and 4815 shall be
considered to be original purchasers and shall have standing to
enforce the provisions, standards, rights, and obligations set forth
in this title.
  SEC. 32.  Section 1098 of the Civil Code is amended to read:
   1098.  A "transfer fee" is any fee payment requirement imposed
within a covenant, restriction, or condition contained in any deed,
contract, security instrument, or other document affecting the
transfer or sale of, or any interest in, real property that requires
a fee be paid upon transfer of the real property. A transfer fee does
not include any of the following:
   (a) Fees or taxes imposed by a governmental entity.
   (b) Fees pursuant to mechanics' liens.
   (c) Fees pursuant to court-ordered transfers, payments, or
judgments.
   (d) Fees pursuant to property agreements in connection with a
legal separation or dissolution of marriage.
   (e) Fees, charges, or payments in connection with the
administration of estates or trusts pursuant to Division 7
(commencing with Section 7000), Division 8 (commencing with Section
13000), or Division 9 (commencing with Section 15000) of the Probate
Code.
   (f) Fees, charges, or payments imposed by lenders or purchasers of
loans, as these entities are described in subdivision (c) of Section
10232 of the Business and Professions Code.
   (g) Assessments, charges, penalties, or fees authorized by the
Davis-Stirling Common Interest Development Act (Part 5 (commencing
with Section 4000) of Division 4).
   (h) Fees, charges, or payments for failing to comply with, or for
transferring the real property prior to satisfying, an obligation to
construct residential improvements on the real property.
   (i) Any fee reflected in a document recorded against the property
on or before December 31, 2007, that is separate from any covenants,
conditions, and restrictions, and that substantially complies with
subdivision (a) of Section 1098.5 by providing a prospective
transferee notice of the following:
   (1) Payment of a transfer fee is required.
   (2) The amount or method of calculation of the fee.
   (3) The date or circumstances under which the transfer fee payment
requirement expires, if any.
   (4) The entity to which the fee will be paid.
   (5) The general purposes for which the fee will be used.
  SEC. 33.  Section 1102.6a of the Civil Code is amended to read:
   1102.6a.  (a) On and after July 1, 1990, any city or county may
elect to require disclosures on the form set forth in subdivision (b)
in addition to those disclosures required by Section 1102.6.
However, this section does not affect or limit the authority of a
city or county to require disclosures on a different disclosure form
in connection with transactions subject to this article pursuant to
an ordinance adopted prior to July 1, 1990. An ordinance like this
adopted prior to July 1, 1990, may be amended thereafter to revise
the disclosure requirements of the ordinance, in the discretion of
the city council or county board of supervisors.
   (b) Disclosures required pursuant to this section pertaining to
the property proposed to be transferred, shall be set forth in, and
shall be made on a copy of, the following disclosure form: GRAPHIC
INSERT HERE:  SEE PRINTED VERSION OF THE BILL]
   (c) This section does not preclude the use of addenda to the form
specified in subdivision (b) to facilitate the required disclosures.
This section does not preclude a city or county from using the
disclosure form specified in subdivision (b) for a purpose other than
that specified in this section.
   (d) (1) On and after January 1, 2005, if a city or county adopts a
different or additional disclosure form pursuant to this section
regarding the proximity or effects of an airport, the statement in
that form shall contain, at a minimum, the information in the
statement "Notice of Airport in Vicinity" found in Section 11010 of
the Business and Professions Code, or Section 1103.4 or 4255.
   (2) On and after January 1, 2006, if a city or county does not
adopt a different or additional disclosure form pursuant to this
section, then the provision of an "airport influence area" disclosure
pursuant to Section 11010 of the Business and Professions Code, or
Section 1103.4 or 4255, or if there is not a current airport
influence map, a written disclosure of an airport within two statute
miles, shall be deemed to satisfy any city or county requirements for
the disclosure of airports in connection with transfers of real
property.
  SEC. 34.  Section 1102.6d of the Civil Code is amended to read:
   1102.6d.  Except for manufactured homes and mobilehomes located in
a common interest development governed by Part 5 (commencing with
Section 4000) of Division 4, the disclosures applicable to the resale
of a manufactured home or mobilehome pursuant to subdivision (b) of
Section 1102 are set forth in, and shall be made on a copy of, the
following disclosure form: GRAPHIC INSERT HERE:  SEE PRINTED VERSION
OF THE BILL]
  SEC. 35.  Section 1133 of the Civil Code is amended to read:
   1133.  (a) If a lot, parcel, or unit of a subdivision is subject
to a blanket encumbrance, as defined in Section 11013 of the Business
and Professions Code, but is exempt from a requirement of compliance
with Section 11013.2 of the Business and Professions Code, the
subdivider, his or her agent, or representative, shall not sell, or
lease for a term exceeding five years, the lot, parcel, or unit, nor
cause it to be sold, or leased for a term exceeding five years, until
the prospective purchaser or lessee of the lot, parcel, or unit has
been furnished with and has signed a true copy of the following
notice:


   BUYER/LESSEE IS AWARE OF THE FACT THAT THE LOT, PARCEL, OR UNIT
WHICH HE OR SHE IS PROPOSING TO PURCHASE OR LEASE IS SUBJECT TO A
DEED OF TRUST, MORTGAGE, OR OTHER LIEN KNOWN AS A "BLANKET
ENCUMBRANCE."
   IF BUYER/LESSEE PURCHASES OR LEASES THIS LOT, PARCEL, OR UNIT, HE
OR SHE COULD LOSE THAT INTEREST THROUGH FORECLOSURE OF THE BLANKET
ENCUMBRANCE OR OTHER LEGAL PROCESS EVEN THOUGH BUYER/LESSEE IS NOT
DELINQUENT IN HIS OR HER PAYMENTS OR OTHER OBLIGATIONS UNDER THE
MORTGAGE, DEED OF TRUST, OR LEASE.
______   ________________
  Date          Signature of
               Buyer or Lessee


   (b) "Subdivision," as used in subdivision (a), means improved or
unimproved land that is divided or proposed to be divided for the
purpose of sale, lease, or financing, whether immediate or future,
into two or more lots, parcels, or units and includes a condominium
project, as defined in Section 4125, a community apartment project,
as defined in Section 4105, a stock cooperative, as defined in
Section 4190, and a limited equity housing cooperative, as defined in
Section 4190.
   (c) The failure of the buyer or lessee to sign the notice shall
not invalidate any grant, conveyance, lease, or encumbrance.
   (d) Any person or entity who willfully violates the provisions of
this section shall be liable to the purchaser of a lot or unit which
is subject to the provisions of this section for actual damages, and,
in addition thereto, shall be guilty of a public offense punishable
by a fine in an amount not to exceed five hundred dollars ($500). In
an action to enforce the liability or fine, the prevailing party
shall be awarded reasonable attorney's fees.
  SEC. 36.  Section 1633.3 of the Civil Code is amended to read:
   1633.3.  (a) Except as otherwise provided in subdivisions (b) and
(c), this title applies to electronic records and electronic
signatures relating to a transaction.
   (b) This title does not apply to transactions subject to the
following laws:
   (1) A law governing the creation and execution of wills, codicils,
or testamentary trusts.
   (2) Division 1 (commencing with Section 1101) of the Uniform
Commercial Code, except Sections 1107 and 1206.
   (3) Divisions 3 (commencing with Section 3101), 4 (commencing with
Section 4101), 5 (commencing with Section 5101), 8 (commencing with
Section 8101), 9 (commencing with Section 9101), and 11 (commencing
with Section 11101) of the Uniform Commercial Code.
   (4) A law that requires that specifically identifiable text or
disclosures in a record or a portion of a record be separately
signed, including initialed, from the record. However, this paragraph
does not apply to Section 1677 or 1678 of this code or Section 1298
of the Code of Civil Procedure.
   (c) This title does not apply to any specific transaction
described in Section 17511.5 of the Business and Professions Code,
Section 56.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6,
1689.7, or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
Title 5 of Part 2 of Division 3 of, Section 1720, 1785.15, 1789.14,
1789.16, 1789.33, or 1793.23 of, Chapter 1 (commencing with Section
1801) of Title 2 of Part 4 of Division 3 of, Section 1861.24, 1862.5,
1917.712, 1917.713, 1950.5, 1950.6, 1983, 2924b, 2924c, 2924f,
2924i, 2924j, 2924.3, or 2937 of, Article 1.5 (commencing with
Section 2945) of Chapter 2 of Title 14 of Part 4 of Division 3 of,
Section 2954.5 or 2963 of, Chapter 2b (commencing with Section 2981)
or 2d (commencing with Section 2985.7) of Title 14 of Part 4 of
Division 3 of, Section 3071.5 of, or Part 5 (commencing with Section
4000) of Division 4 of, the Civil Code, subdivision (b) of Section
18608 or Section 22328 of the Financial Code, Section 1358.15, 1365,
1368.01, 1368.1, 1371, or 18035.5 of the Health and Safety Code,
Section 662, 663, 664, 667.5, 673, 677, 678, 678.1, 786, 10086,
10113.7, 10127.7, 10127.9, 10127.10, 10197, 10199.44, 10199.46,
10235.16, 10235.40, 10509.4, 10509.7, 11624.09, or 11624.1 of the
Insurance Code, Section 779.1, 10010.1, or 16482 of the Public
Utilities Code, or Section 9975 or 11738 of the Vehicle Code. An
electronic record may not be substituted for any notice that is
required to be sent pursuant to Section 1162 of the Code of Civil
Procedure. Nothing in this subdivision shall be construed to prohibit
the recordation of any document with a county recorder by electronic
means.
   (d) This title applies to an electronic record or electronic
signature otherwise excluded from the application of this title under
subdivision (b) when used for a transaction subject to a law other
than those specified in subdivision (b).
   (e) A transaction subject to this title is also subject to other
applicable substantive law.
   (f) The exclusion of a transaction from the application of this
title under subdivision (b) or (c) shall be construed only to exclude
the transaction from the application of this title, but shall not be
construed to prohibit the transaction from being conducted by
electronic means if the transaction may be conducted by electronic
means under any other applicable law.
  SEC. 37.  Section 1864 of the Civil Code is amended to read:
   1864.  Any person or entity, including a person employed by a real
estate broker, who, on behalf of another or others, solicits or
arranges, or accepts reservations or money, or both, for transient
occupancies described in paragraphs (1) and (2) of subdivision (b) of
Section 1940, in a dwelling unit in a common interest development,
as defined in Section 4100, in a dwelling unit in an apartment
building or complex, or in a single-family home, shall do each of the
following:
   (a) Prepare and maintain, in accordance with a written agreement
with the owner, complete and accurate records and books of account,
kept in accordance with generally accepted accounting principles, of
all reservations made and money received and spent with respect to
each dwelling unit. All money received shall be kept in a trust
account maintained for the benefit of owners of the dwelling units.
   (b) Render, monthly, to each owner of the dwelling unit, or to
that owner's designee, an accounting for each month in which there
are any deposits or disbursements on behalf of that owner, however,
in no event shall this accounting be rendered any less frequently
than quarterly.
                                                         (c) Make all
records and books of account with respect to a dwelling unit
available, upon reasonable advance notice, for inspection and copying
by the dwelling unit's owner. The records shall be maintained for a
period of at least three years.
   (d) Comply fully with all collection, payment, and recordkeeping
requirements of a transient occupancy tax ordinance, if any,
applicable to the occupancy.
   (e) In no event shall any activities described in this section
subject the person or entity performing those activities in any
manner to Part 1 (commencing with Section 10000) of Division 4 of the
Business and Professions Code. However, a real estate licensee
subject to this section may satisfy the requirements of this section
by compliance with the Real Estate Law.
  SEC. 38.  Section 2079.3 of the Civil Code is amended to read:
   2079.3.  The inspection to be performed pursuant to this article
does not include or involve an inspection of areas that are
reasonably and normally inaccessible to this type of an inspection,
nor an affirmative inspection of areas off the site of the subject
property or public records or permits concerning the title or use of
the property, and, if the property comprises a unit in a planned
development as defined in Section 11003 of the Business and
Professions Code, a condominium as defined in Section 783, or a stock
cooperative as defined in Section 11003.2 of the Business and
Professions Code, does not include an inspection of more than the
unit offered for sale, if the seller or the broker complies with the
provisions of Sections 4525 to 4580, inclusive.
  SEC. 39.  Section 2924b of the Civil Code is amended to read:
   2924b.  (a) Any person desiring a copy of any notice of default
and of any notice of sale under any deed of trust or mortgage with
power of sale upon real property or an estate for years therein, as
to which deed of trust or mortgage the power of sale cannot be
exercised until these notices are given for the time and in the
manner provided in Section 2924 may, at any time subsequent to
recordation of the deed of trust or mortgage and prior to recordation
of notice of default thereunder, cause to be filed for record in the
office of the recorder of any county in which any part or parcel of
the real property is situated, a duly acknowledged request for a copy
of the notice of default and of sale. This request shall be signed
and acknowledged by the person making the request, specifying the
name and address of the person to whom the notice is to be mailed,
shall identify the deed of trust or mortgage by stating the names of
the parties thereto, the date of recordation thereof, and the book
and page where the deed of trust or mortgage is recorded or the
recorder's number, and shall be in substantially the following form:
  ""In accordance with Section 2924b, Civil Code,
request is hereby
made that a copy of any notice of default and a
copy of any notice of sale
under the deed of trust (or mortgage) recorded
______, ____, in Book
_____ page ____ records of ____ County, (or filed
for record with
recorder's serial number ____, _______ County)
California, executed
by ____ as trustor (or mortgagor) in which
________ is named as
beneficiary (or mortgagee)       and
______________ as trustee be mailed to
_________________ at   __________________________.
          Name                    Address
NOTICE:  A copy of any notice of default and of
any notice of sale will be
sent only to the address contained in this
recorded request. If your address changes, a new
request must be recorded.
                        Signature  ______________''


   Upon the filing for record of the request, the recorder shall
index in the general index of grantors the names of the trustors (or
mortgagor) recited therein and the names of persons requesting
copies.
   (b) The mortgagee, trustee, or other person authorized to record
the notice of default or the notice of sale shall do each of the
following:
   (1) Within 10 business days following recordation of the notice of
default, deposit or cause to be deposited in the United States mail
an envelope, sent by registered or certified mail with postage
prepaid, containing a copy of the notice with the recording date
shown thereon, addressed to each person whose name and address are
set forth in a duly recorded request therefor, directed to the
address designated in the request and to each trustor or mortgagor at
his or her last known address if different than the address
specified in the deed of trust or mortgage with power of sale.
   (2) At least 20 days before the date of sale, deposit or cause to
be deposited in the United States mail an envelope, sent by
registered or certified mail with postage prepaid, containing a copy
of the notice of the time and place of sale, addressed to each person
whose name and address are set forth in a duly recorded request
therefor, directed to the address designated in the request and to
each trustor or mortgagor at his or her last known address if
different than the address specified in the deed of trust or mortgage
with power of sale.
   (3) As used in paragraphs (1) and (2), the "last known address" of
each trustor or mortgagor means the last business or residence
physical address actually known by the mortgagee, beneficiary,
trustee, or other person authorized to record the notice of default.
For the purposes of this subdivision, an address is "actually known"
if it is contained in the original deed of trust or mortgage, or in
any subsequent written notification of a change of physical address
from the trustor or mortgagor pursuant to the deed of trust or
mortgage. For the purposes of this subdivision, "physical address"
does not include an e-mail or any form of electronic address for a
trustor or mortgagor. The beneficiary shall inform the trustee of the
trustor's last address actually known by the beneficiary. However,
the trustee shall incur no liability for failing to send any notice
to the last address unless the trustee has actual knowledge of it.
   (4) A "person authorized to record the notice of default or the
notice of sale" shall include an agent for the mortgagee or
beneficiary, an agent of the named trustee, any person designated in
an executed substitution of trustee, or an agent of that substituted
trustee.
   (c) The mortgagee, trustee, or other person authorized to record
the notice of default or the notice of sale shall do the following:
   (1) Within one month following recordation of the notice of
default, deposit or cause to be deposited in the United States mail
an envelope, sent by registered or certified mail with postage
prepaid, containing a copy of the notice with the recording date
shown thereon, addressed to each person set forth in paragraph (2),
provided that the estate or interest of any person entitled to
receive notice under this subdivision is acquired by an instrument
sufficient to impart constructive notice of the estate or interest in
the land or portion thereof that is subject to the deed of trust or
mortgage being foreclosed, and provided the instrument is recorded in
the office of the county recorder so as to impart that constructive
notice prior to the recording date of the notice of default and
provided the instrument as so recorded sets forth a mailing address
that the county recorder shall use, as instructed within the
instrument, for the return of the instrument after recording, and
which address shall be the address used for the purposes of mailing
notices herein.
   (2) The persons to whom notice shall be mailed under this
subdivision are:
   (A) The successor in interest, as of the recording date of the
notice of default, of the estate or interest or any portion thereof
of the trustor or mortgagor of the deed of trust or mortgage being
foreclosed.
   (B) The beneficiary or mortgagee of any deed of trust or mortgage
recorded subsequent to the deed of trust or mortgage being
foreclosed, or recorded prior to or concurrently with the deed of
trust or mortgage being foreclosed but subject to a recorded
agreement or a recorded statement of subordination to the deed of
trust or mortgage being foreclosed.
   (C) The assignee of any interest of the beneficiary or mortgagee
described in subparagraph (B), as of the recording date of the notice
of default.
   (D) The vendee of any contract of sale, or the lessee of any
lease, of the estate or interest being foreclosed that is recorded
subsequent to the deed of trust or mortgage being foreclosed, or
recorded prior to or concurrently with the deed of trust or mortgage
being foreclosed but subject to a recorded agreement or statement of
subordination to the deed of trust or mortgage being foreclosed.
   (E) The successor in interest to the vendee or lessee described in
subparagraph (D), as of the recording date of the notice of default.

   (F) The office of the Controller, Sacramento, California, where,
as of the recording date of the notice of default, a "Notice of Lien
for Postponed Property Taxes" has been recorded against the real
property to which the notice of default applies.
   (3) At least 20 days before the date of sale, deposit or cause to
be deposited in the United States mail an envelope, sent by
registered or certified mail with postage prepaid, containing a copy
of the notice of the time and place of sale addressed to each person
to whom a copy of the notice of default is to be mailed as provided
in paragraphs (1) and (2), and addressed to the office of any state
taxing agency, Sacramento, California, that has recorded, subsequent
to the deed of trust or mortgage being foreclosed, a notice of tax
lien prior to the recording date of the notice of default against the
real property to which the notice of default applies.
   (4) Provide a copy of the notice of sale to the Internal Revenue
Service, in accordance with Section 7425 of the Internal Revenue Code
and any applicable federal regulation, if a "Notice of Federal Tax
Lien under Internal Revenue Laws" has been recorded, subsequent to
the deed of trust or mortgage being foreclosed, against the real
property to which the notice of sale applies. The failure to provide
the Internal Revenue Service with a copy of the notice of sale
pursuant to this paragraph shall be sufficient cause to rescind the
trustee's sale and invalidate the trustee's deed, at the option of
either the successful bidder at the trustee's sale or the trustee,
and in either case with the consent of the beneficiary. Any option to
rescind the trustee's sale pursuant to this paragraph shall be
exercised prior to any transfer of the property by the successful
bidder to a bona fide purchaser for value. A recision of the trustee'
s sale pursuant to this paragraph may be recorded in a notice of
recision pursuant to Section 1058.5.
   (5) The mailing of notices in the manner set forth in paragraph
(1) shall not impose upon any licensed attorney, agent, or employee
of any person entitled to receive notices as herein set forth any
duty to communicate the notice to the entitled person from the fact
that the mailing address used by the county recorder is the address
of the attorney, agent, or employee.
   (d) Any deed of trust or mortgage with power of sale hereafter
executed upon real property or an estate for years therein may
contain a request that a copy of any notice of default and a copy of
any notice of sale thereunder shall be mailed to any person or party
thereto at the address of the person given therein, and a copy of any
notice of default and of any notice of sale shall be mailed to each
of these at the same time and in the same manner required as though a
separate request therefor had been filed by each of these persons as
herein authorized. If any deed of trust or mortgage with power of
sale executed after September 19, 1939, except a deed of trust or
mortgage of any of the classes excepted from the provisions of
Section 2924, does not contain a mailing address of the trustor or
mortgagor therein named, and if no request for special notice by the
trustor or mortgagor in substantially the form set forth in this
section has subsequently been recorded, a copy of the notice of
default shall be published once a week for at least four weeks in a
newspaper of general circulation in the county in which the property
is situated, the publication to commence within 10 business days
after the filing of the notice of default. In lieu of publication, a
copy of the notice of default may be delivered personally to the
trustor or mortgagor within the 10 business days or at any time
before publication is completed, or by posting the notice of default
in a conspicuous place on the property and mailing the notice to the
last known address of the trustor or mortgagor.
   (e) Any person required to mail a copy of a notice of default or
notice of sale to each trustor or mortgagor pursuant to subdivision
(b) or (c) by registered or certified mail shall simultaneously cause
to be deposited in the United States mail, with postage prepaid and
mailed by first-class mail, an envelope containing an additional copy
of the required notice addressed to each trustor or mortgagor at the
same address to which the notice is sent by registered or certified
mail pursuant to subdivision (b) or (c). The person shall execute and
retain an affidavit identifying the notice mailed, showing the name
and residence or business address of that person, that he or she is
over the age of 18 years, the date of deposit in the mail, the name
and address of the trustor or mortgagor to whom sent, and that the
envelope was sealed and deposited in the mail with postage fully
prepaid. In the absence of fraud, the affidavit required by this
subdivision shall establish a conclusive presumption of mailing.
   (f) (1) Notwithstanding subdivision (a), with respect to separate
interests governed by an association, as defined in Section 4080, the
association may cause to be filed in the office of the recorder in
the county in which the separate interests are situated a request
that a mortgagee, trustee, or other person authorized to record a
notice of default regarding any of those separate interests mail to
the association a copy of any trustee's deed upon sale concerning a
separate interest. The request shall include a legal description or
the assessor's parcel number of all the separate interests. A request
recorded pursuant to this subdivision shall include the name and
address of the association and a statement that it is a homeowners'
association. Subsequent requests of an association shall supersede
prior requests. A request pursuant to this subdivision shall be
recorded before the filing of a notice of default. The mortgagee,
trustee, or other authorized person shall mail the requested
information to the association within 15 business days following the
date the trustee's deed is recorded. Failure to mail the request,
pursuant to this subdivision, shall not affect the title to real
property.
   (2) A request filed pursuant to paragraph (1) does not, for
purposes of Section 27288.1 of the Government Code, constitute a
document that either effects or evidences a transfer or encumbrance
of an interest in real property or that releases or terminates any
interest, right, or encumbrance of an interest in real property.
   (g) No request for a copy of any notice filed for record pursuant
to this section, no statement or allegation in the request, and no
record thereof shall affect the title to real property or be deemed
notice to any person that any person requesting copies of notice has
or claims any right, title, or interest in, or lien or charge upon
the property described in the deed of trust or mortgage referred to
therein.
   (h) "Business day," as used in this section, has the meaning
specified in Section 9.
  SEC. 40.  Section 2929.5 of the Civil Code is amended to read:
   2929.5.  (a) A secured lender may enter and inspect the real
property security for the purpose of determining the existence,
location, nature, and magnitude of any past or present release or
threatened release of any hazardous substance into, onto, beneath, or
from the real property security on either of the following:
   (1) Upon reasonable belief of the existence of a past or present
release or threatened release of any hazardous substance into, onto,
beneath, or from the real property security not previously disclosed
in writing to the secured lender in conjunction with the making,
renewal, or modification of a loan, extension of credit, guaranty, or
other obligation involving the borrower.
   (2) After the commencement of nonjudicial or judicial foreclosure
proceedings against the real property security.
   (b) The secured lender shall not abuse the right of entry and
inspection or use it to harass the borrower or tenant of the
property. Except in case of an emergency, when the borrower or tenant
of the property has abandoned the premises, or if it is
impracticable to do so, the secured lender shall give the borrower or
tenant of the property reasonable notice of the secured lender's
intent to enter, and enter only during the borrower's or tenant's
normal business hours. Twenty-four hours' notice shall be presumed to
be reasonable notice in the absence of evidence to the contrary.
   (c) The secured lender shall reimburse the borrower for the cost
of repair of any physical injury to the real property security caused
by the entry and inspection.
   (d) If a secured lender is refused the right of entry and
inspection by the borrower or tenant of the property, or is otherwise
unable to enter and inspect the property without a breach of the
peace, the secured lender may, upon petition, obtain an order from a
court of competent jurisdiction to exercise the secured lender's
rights under subdivision (a), and that action shall not constitute an
action within the meaning of subdivision (a) of Section 726 of the
Code of Civil Procedure.
   (e) For purposes of this section:
   (1) "Borrower" means the trustor under a deed of trust, or a
mortgagor under a mortgage, where the deed of trust or mortgage
encumbers real property security and secures the performance of the
trustor or mortgagor under a loan, extension of credit, guaranty, or
other obligation. The term includes any successor-in-interest of the
trustor or mortgagor to the real property security before the deed of
trust or mortgage has been discharged, reconveyed, or foreclosed
upon.
   (2) "Hazardous substance" includes all of the following:
   (A) Any "hazardous substance" as defined in subdivision (h) of
Section 25281 of the Health and Safety Code.
   (B) Any "waste" as defined in subdivision (d) of Section 13050 of
the Water Code.
   (C) Petroleum, including crude oil or any fraction thereof,
natural gas, natural gas liquids, liquefied natural gas, or synthetic
gas usable for fuel, or any mixture thereof.
   (3) "Real property security" means any real property and
improvements, other than a separate interest and any related interest
in the common area of a residential common interest development, as
the terms "separate interest," "common area," and "common interest
development" are defined in Sections 4095, 4100, and 4185, or real
property consisting of one acre or less which contains 1 to 15
dwelling units.
   (4) "Release" means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching,
dumping, or disposing into the environment, including continuing
migration, of hazardous substances into, onto, or through soil,
surface water, or groundwater.
   (5) "Secured lender" means the beneficiary under a deed of trust
against the real property security, or the mortgagee under a mortgage
against the real property security, and any successor-in-interest of
the beneficiary or mortgagee to the deed of trust or mortgage.
  SEC. 41.  Section 2955.1 of the Civil Code is amended to read:
   2955.1.  (a) Any lender originating a loan secured by the borrower'
s separate interest in a condominium project, as defined in Section
4125, which requires earthquake insurance or imposes a fee or any
other condition in lieu thereof pursuant to an underwriting
requirement imposed by an institutional third-party purchaser shall
disclose all of the following to the potential borrower:
   (1) That the lender or the institutional third party in question
requires earthquake insurance or imposes a fee or any other condition
in lieu thereof pursuant to an underwriting requirement imposed by
an institutional third party purchaser.
   (2) That not all lenders or institutional third parties require
earthquake insurance or impose a fee or any other condition in lieu
thereof pursuant to an underwriting requirement imposed by an
institutional third party purchaser.
   (3) Earthquake insurance may be required on the entire condominium
project.
   (4) That lenders or institutional third parties may also require
that a condominium project maintain, or demonstrate an ability to
maintain, financial reserves in the amount of the earthquake
insurance deductible.
   (b) For the purposes of this section, "institutional third party"
means the Federal Home Loan Mortgage Corporation, the Federal
National Mortgage Association, the Government National Mortgage
Association, and other substantially similar institutions, whether
public or private.
   (c) The disclosure required by this section shall be made in
writing by the lender as soon as reasonably practicable.
  SEC. 42.  Section 86 of the Code of Civil Procedure, as amended by
Section 21 of Chapter 697 of the Statutes of 2010, is amended to
read:
   86.  (a) The following civil cases and proceedings are limited
civil cases:
   (1) A case at law in which the demand, exclusive of interest, or
the value of the property in controversy amounts to twenty-five
thousand dollars ($25,000) or less. This paragraph does not apply to
a case that involves the legality of any tax, impost, assessment,
toll, or municipal fine, except an action to enforce payment of
delinquent unsecured personal property taxes if the legality of the
tax is not contested by the defendant.
   (2) An action for dissolution of partnership where the total
assets of the partnership do not exceed twenty-five thousand dollars
($25,000); an action of interpleader where the amount of money or the
value of the property involved does not exceed twenty-five thousand
dollars ($25,000).
   (3) An action to cancel or rescind a contract when the relief is
sought in connection with an action to recover money not exceeding
twenty-five thousand dollars ($25,000) or property of a value not
exceeding twenty-five thousand dollars ($25,000), paid or delivered
under, or in consideration of, the contract; an action to revise a
contract where the relief is sought in an action upon the contract if
the action otherwise is a limited civil case.
   (4) A proceeding in forcible entry or forcible or unlawful
detainer where the whole amount of damages claimed is twenty-five
thousand dollars ($25,000) or less.
   (5) An action to enforce and foreclose a lien on personal property
where the amount of the lien is twenty-five thousand dollars
($25,000) or less.
   (6) An action to enforce and foreclose, or a petition to release,
a lien arising under the provisions of Chapter 4 (commencing with
Section 8400) of Title 2 of Part 6 of Division 4 of the Civil Code,
or to enforce and foreclose an assessment lien on a common interest
development as defined in Section 4100 of the Civil Code, where the
amount of the liens is twenty-five thousand dollars ($25,000) or
less. However, if an action to enforce the lien affects property that
is also affected by a similar pending action that is not a limited
civil case, or if the total amount of liens sought to be foreclosed
against the same property aggregates an amount in excess of
twenty-five thousand dollars ($25,000), the action is not a limited
civil case.
   (7) An action for declaratory relief when brought pursuant to
either of the following:
   (A) By way of cross-complaint as to a right of indemnity with
respect to the relief demanded in the complaint or a cross-complaint
in an action or proceeding that is otherwise a limited civil case.
   (B) To conduct a trial after a nonbinding fee arbitration between
an attorney and client, pursuant to Article 13 (commencing with
Section 6200) of Chapter 4 of Division 3 of the Business and
Professions Code, where the amount in controversy is twenty-five
thousand dollars ($25,000) or less.
   (8) An action to issue a temporary restraining order or
preliminary injunction; to take an account, where necessary to
preserve the property or rights of any party to a limited civil case;
to make any order or perform any act, pursuant to Title 9
(commencing with Section 680.010) of Part 2 (enforcement of
judgments) in a limited civil case; to appoint a receiver pursuant to
Section 564 in a limited civil case; to determine title to personal
property seized in a limited civil case.
   (9) An action under Article 3 (commencing with Section 708.210) of
Chapter 6 of Division 2 of Title 9 of Part 2 for the recovery of an
interest in personal property or to enforce the liability of the
debtor of a judgment debtor where the interest claimed adversely is
of a value not exceeding twenty-five thousand dollars ($25,000) or
the debt denied does not exceed twenty-five thousand dollars
($25,000).
   (10) An arbitration-related petition filed pursuant to either of
the following:
   (A) Article 2 (commencing with Section 1292) of Chapter 5 of Title
9 of Part 3, except for uninsured motorist arbitration proceedings
in accordance with Section 11580.2 of the Insurance Code, if the
petition is filed before the arbitration award becomes final and the
matter to be resolved by arbitration is a limited civil case under
paragraphs (1) to (9), inclusive, of subdivision (a) or if the
petition is filed after the arbitration award becomes final and the
amount of the award and all other rulings, pronouncements, and
decisions made in the award are within paragraphs (1) to (9),
inclusive, of subdivision (a).
   (B) To confirm, correct, or vacate a fee arbitration award between
an attorney and client that is binding or has become binding,
pursuant to Article 13 (commencing with Section 6200) of Chapter 4 of
Division 3 of the Business and Professions Code, where the
arbitration award is twenty-five thousand dollars ($25,000) or less.
   (b) The following cases in equity are limited civil cases:
   (1) A case to try title to personal property when the amount
involved is not more than twenty-five thousand dollars ($25,000).
   (2) A case when equity is pleaded as a defensive matter in any
case that is otherwise a limited civil case.
                           (3) A case to vacate a judgment or order
of the court obtained in a limited civil case through extrinsic
fraud, mistake, inadvertence, or excusable neglect.
  SEC. 43.  Section 116.540 of the Code of Civil Procedure is amended
to read:
   116.540.  (a) Except as permitted by this section, no individual
other than the plaintiff and the defendant may take part in the
conduct or defense of a small claims action.
   (b) Except as additionally provided in subdivision (i), a
corporation may appear and participate in a small claims action only
through a regular employee, or a duly appointed or elected officer or
director, who is employed, appointed, or elected for purposes other
than solely representing the corporation in small claims court.
   (c) A party who is not a corporation or a natural person may
appear and participate in a small claims action only through a
regular employee, or a duly appointed or elected officer or director,
or in the case of a partnership, a partner, engaged for purposes
other than solely representing the party in small claims court.
   (d) If a party is an individual doing business as a sole
proprietorship, the party may appear and participate in a small
claims action by a representative and without personally appearing if
both of the following conditions are met:
   (1) The claim can be proved or disputed by evidence of an account
that constitutes a business record as defined in Section 1271 of the
Evidence Code, and there is no other issue of fact in the case.
   (2) The representative is a regular employee of the party for
purposes other than solely representing the party in small claims
actions and is qualified to testify to the identity and mode of
preparation of the business record.
   (e) A plaintiff is not required to personally appear, and may
submit declarations to serve as evidence supporting his or her claim
or allow another individual to appear and participate on his or her
behalf, if (1) the plaintiff is serving on active duty in the United
States Armed Forces outside this state, (2) the plaintiff was
assigned to his or her duty station after his or her claim arose, (3)
the assignment is for more than six months, (4) the representative
is serving without compensation, and (5) the representative has
appeared in small claims actions on behalf of others no more than
four times during the calendar year. The defendant may file a claim
in the same action in an amount not to exceed the jurisdictional
limits stated in Sections 116.220, 116.221, and 116.231.
   (f) A party incarcerated in a county jail, a Department of
Corrections and Rehabilitation facility, or a Division of Juvenile
Facilities facility is not required to personally appear, and may
submit declarations to serve as evidence supporting his or her claim,
or may authorize another individual to appear and participate on his
or her behalf if that individual is serving without compensation and
has appeared in small claims actions on behalf of others no more
than four times during the calendar year.
   (g) A defendant who is a nonresident owner of real property may
defend against a claim relating to that property without personally
appearing by (1) submitting written declarations to serve as evidence
supporting his or her defense, (2) allowing another individual to
appear and participate on his or her behalf if that individual is
serving without compensation and has appeared in small claims actions
on behalf of others no more than four times during the calendar
year, or (3) taking the action described in both (1) and (2).
   (h) A party who is an owner of rental real property may appear and
participate in a small claims action through a property agent under
contract with the owner to manage the rental of that property, if (1)
the owner has retained the property agent principally to manage the
rental of that property and not principally to represent the owner in
small claims court, and (2) the claim relates to the rental
property.
   (i) A party that is an association created to manage a common
interest development, as defined in Section 4100 of the Civil Code,
may appear and participate in a small claims action through an agent,
a management company representative, or bookkeeper who appears on
behalf of that association.
   (j) At the hearing of a small claims action, the court shall
require any individual who is appearing as a representative of a
party under subdivisions (b) to (i), inclusive, to file a declaration
stating (1) that the individual is authorized to appear for the
party, and (2) the basis for that authorization. If the
representative is appearing under subdivision (b), (c), (d), (h), or
(i), the declaration also shall state that the individual is not
employed solely to represent the party in small claims court. If the
representative is appearing under subdivision (e), (f), or (g), the
declaration also shall state that the representative is serving
without compensation, and has appeared in small claims actions on
behalf of others no more than four times during the calendar year.
   (k) A husband or wife who sues or who is sued with his or her
spouse may appear and participate on behalf of his or her spouse if
(1) the claim is a joint claim, (2) the represented spouse has given
his or her consent, and (3) the court determines that the interests
of justice would be served.
   (l) If the court determines that a party cannot properly present
his or her claim or defense and needs assistance, the court may in
its discretion allow another individual to assist that party.
   (m) Nothing in this section shall operate or be construed to
authorize an attorney to participate in a small claims action except
as expressly provided in Section 116.530.
  SEC. 44.  Section 564 of the Code of Civil Procedure is amended to
read:
   564.  (a) A receiver may be appointed, in the manner provided in
this chapter, by the court in which an action or proceeding is
pending in any case in which the court is empowered by law to appoint
a receiver.
   (b) A receiver may be appointed by the court in which an action or
proceeding is pending, or by a judge thereof, in the following
cases:
   (1) In an action by a vendor to vacate a fraudulent purchase of
property, or by a creditor to subject any property or fund to the
creditor's claim, or between partners or others jointly owning or
interested in any property or fund, on the application of the
plaintiff, or of any party whose right to or interest in the property
or fund, or the proceeds thereof, is probable, and where it is shown
that the property or fund is in danger of being lost, removed, or
materially injured.
   (2) In an action by a secured lender for the foreclosure of a deed
of trust or mortgage and sale of property upon which there is a lien
under a deed of trust or mortgage, where it appears that the
property is in danger of being lost, removed, or materially injured,
or that the condition of the deed of trust or mortgage has not been
performed, and that the property is probably insufficient to
discharge the deed of trust or mortgage debt.
   (3) After judgment, to carry the judgment into effect.
   (4) After judgment, to dispose of the property according to the
judgment, or to preserve it during the pendency of an appeal, or
pursuant to the Enforcement of Judgments Law (Title 9 (commencing
with Section 680.010)), or after sale of real property pursuant to a
decree of foreclosure, during the redemption period, to collect,
expend, and disburse rents as directed by the court or otherwise
provided by law.
   (5) Where a corporation has been dissolved, as provided in Section
565.
   (6) Where a corporation is insolvent, or in imminent danger of
insolvency, or has forfeited its corporate rights.
   (7) In an action of unlawful detainer.
   (8) At the request of the Public Utilities Commission pursuant to
Section 855 or 5259.5 of the Public Utilities Code.
   (9) In all other cases where necessary to preserve the property or
rights of any party.
   (10) At the request of the Office of Statewide Health Planning and
Development, or the Attorney General, pursuant to Section 129173 of
the Health and Safety Code.
   (11) In an action by a secured lender for specific performance of
an assignment of rents provision in a deed of trust, mortgage, or
separate assignment document. The appointment may be continued after
entry of a judgment for specific performance if appropriate to
protect, operate, or maintain real property encumbered by a deed of
trust or mortgage or to collect rents therefrom while a pending
nonjudicial foreclosure under power of sale in a deed of trust or
mortgage is being completed.
   (12) In a case brought by an assignee under an assignment of
leases, rents, issues, or profits pursuant to subdivision (g) of
Section 2938 of the Civil Code.
   (c) A receiver may be appointed, in the manner provided in this
chapter, including, but not limited to, Section 566, by the superior
court in an action brought by a secured lender to enforce the rights
provided in Section 2929.5 of the Civil Code, to enable the secured
lender to enter and inspect the real property security for the
purpose of determining the existence, location, nature, and magnitude
of any past or present release or threatened release of any
hazardous substance into, onto, beneath, or from the real property
security. The secured lender shall not abuse the right of entry and
inspection or use it to harass the borrower or tenant of the
property. Except in case of an emergency, when the borrower or tenant
of the property has abandoned the premises, or if it is
impracticable to do so, the secured lender shall give the borrower or
tenant of the property reasonable notice of the secured lender's
intent to enter and shall enter only during the borrower's or tenant'
s normal business hours. Twenty-four hours' notice shall be presumed
to be reasonable notice in the absence of evidence to the contrary.
   (d) Any action by a secured lender to appoint a receiver pursuant
to this section shall not constitute an action within the meaning of
subdivision (a) of Section 726.
   (e) For purposes of this section:
   (1) "Borrower" means the trustor under a deed of trust, or a
mortgagor under a mortgage, where the deed of trust or mortgage
encumbers real property security and secures the performance of the
trustor or mortgagor under a loan, extension of credit, guaranty, or
other obligation. The term includes any successor in interest of the
trustor or mortgagor to the real property security before the deed of
trust or mortgage has been discharged, reconveyed, or foreclosed
upon.
   (2) "Hazardous substance" means any of the following:
   (A) Any "hazardous substance" as defined in subdivision (h) of
Section 25281 of the Health and Safety Code.
   (B) Any "waste" as defined in subdivision (d) of Section 13050 of
the Water Code.
   (C) Petroleum including crude oil or any fraction thereof, natural
gas, natural gas liquids, liquefied natural gas, or synthetic gas
usable for fuel, or any mixture thereof.
   (3) "Real property security" means any real property and
improvements, other than a separate interest and any related interest
in the common area of a residential common interest development, as
the terms "separate interest," "common area," and "common interest
development" are defined in Section 4095, 4100, and 4185 of the Civil
Code, or real property consisting of one acre or less that contains
1 to 15 dwelling units.
   (4) "Release" means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching,
dumping, or disposing into the environment, including continuing
migration, of hazardous substances into, onto, or through soil,
surface water, or groundwater.
   (5) "Secured lender" means the beneficiary under a deed of trust
against the real property security, or the mortgagee under a mortgage
against the real property security, and any successor in interest of
the beneficiary or mortgagee to the deed of trust or mortgage.
  SEC. 45.  Section 726.5 of the Code of Civil Procedure is amended
to read:
   726.5.  (a) Notwithstanding subdivision (a) of Section 726 or any
other provision of law, except subdivision (d) of this section, a
secured lender may elect between the following where the real
property security is environmentally impaired and the borrower's
obligations to the secured lender are in default:
   (1) (A) Waiver of its lien against (i) any parcel of real property
security that is environmentally impaired or is an affected parcel,
and (ii) all or any portion of the fixtures and personal property
attached to the parcels; and
   (B) Exercise of (i) the rights and remedies of an unsecured
creditor, including reduction of its claim against the borrower to
judgment, and (ii) any other rights and remedies permitted by law.
   (2) Exercise of (i) the rights and remedies of a creditor secured
by a deed of trust or mortgage and, if applicable, a lien against
fixtures or personal property attached to the real property security,
and (ii) any other rights and remedies permitted by law.
   (b) Before the secured lender may waive its lien against any
parcel of real property security pursuant to paragraph (1) of
subdivision (a) on the basis of the environmental impairment
contemplated by paragraph (3) of subdivision (e), (i) the secured
lender shall provide written notice of the default to the borrower,
and (ii) the value of the subject real property security shall be
established and its environmentally impaired status shall be
confirmed by an order of a court of competent jurisdiction in an
action brought by the secured lender against the borrower. The
complaint for a valuation and confirmation action may include causes
of action for a money judgment for all or part of the secured
obligation, in which case the waiver of the secured lender's liens
under paragraph (1) of subdivision (a) shall result only if and when
a final money judgment is obtained against the borrower.
   (c) If a secured lender elects the rights and remedies permitted
by paragraph (1) of subdivision (a) and the borrower's obligations
are also secured by other real property security, fixtures, or
personal property, the secured lender shall first foreclose against
the additional collateral to the extent required by applicable law in
which case the amount of the judgment of the secured lender pursuant
to paragraph (1) of subdivision (a) shall be limited to the extent
Section 580a or 580d, or subdivision (b) of Section 726 apply to the
foreclosures of additional real property security. The borrower may
waive or modify the foreclosure requirements of this subdivision
provided that the waiver or modification is in writing and signed by
the borrower after default.
   (d) Subdivision (a) shall be inapplicable if all of the following
are true:
   (1) The release or threatened release was not knowingly or
negligently caused or contributed to, or knowingly or willfully
permitted or acquiesced to, by any of the following:
   (A) The borrower or any related party.
   (B) Any affiliate or agent of the borrower or any related party.
   (2) In conjunction with the making, renewal, or modification of
the loan, extension of credit, guaranty, or other obligation secured
by the real property security, neither the borrower, any related
party, nor any affiliate or agent of either the borrower or any
related party had actual knowledge or notice of the release or
threatened release, or if a person had knowledge or notice of the
release or threatened release, the borrower made written disclosure
thereof to the secured lender after the secured lender's written
request for information concerning the environmental condition of the
real property security, or the secured lender otherwise obtained
actual knowledge thereof, prior to the making, renewal, or
modification of the obligation.
   (e) For purposes of this section:
   (1) "Affected parcel" means any portion of a parcel of real
property security that is (A) contiguous to the environmentally
impaired parcel, even if separated by roads, streets, utility
easements, or railroad rights-of-way, (B) part of an approved or
proposed subdivision within the meaning of Section 66424 of the
Government Code, of which the environmentally impaired parcel is also
a part, or (C) within 2,000 feet of the environmentally impaired
parcel.
   (2) "Borrower" means the trustor under a deed of trust, or a
mortgagor under a mortgage, where the deed of trust or mortgage
encumbers real property security and secures the performance of the
trustor or mortgagor under a loan, extension of credit, guaranty, or
other obligation. The term includes any successor-in-interest of the
trustor or mortgagor to the real property security before the deed of
trust or mortgage has been discharged, reconveyed, or foreclosed
upon.
   (3) "Environmentally impaired" means that the estimated costs to
clean up and remediate a past or present release or threatened
release of any hazardous substance into, onto, beneath, or from the
real property security, not disclosed in writing to, or otherwise
actually known by, the secured lender prior to the making of the loan
or extension of credit secured by the real property security,
exceeds 25 percent of the higher of the aggregate fair market value
of all security for the loan or extension of credit (A) at the time
of the making of the loan or extension of credit, or (B) at the time
of the discovery of the release or threatened release by the secured
lender. For the purposes of this definition, the estimated cost to
clean up and remediate the contamination caused by the release or
threatened release shall include only those costs that would be
incurred reasonably and in good faith, and fair market value shall be
determined without giving consideration to the release or threatened
release, and shall be exclusive of the amount of all liens and
encumbrances against the security that are senior in priority to the
lien of the secured lender. Notwithstanding the foregoing, the real
property security for any loan or extension of credit secured by a
single parcel of real property which is included in the National
Priorities List pursuant to Section 9605 of Title 42 of the United
States Code, or in any list published by the Department of Toxic
Substances Control pursuant to subdivision (b) of Section 25356 of
the Health and Safety Code, shall be deemed to be environmentally
impaired.
   (4) "Hazardous substance" means any of the following:
   (A) Any "hazardous substance" as defined in subdivision (h) of
Section 25281 of the Health and Safety Code.
   (B) Any "waste" as defined in subdivision (d) of Section 13050 of
the Water Code.
   (C) Petroleum, including crude oil or any fraction thereof,
natural gas, natural gas liquids, liquefied natural gas, or synthetic
gas usable for fuel, or any mixture thereof.
   (5) "Real property security" means any real property and
improvements, other than a separate interest and any related interest
in the common area of a residential common interest development, as
the terms "separate interest," "common area," and "common interest
development" are defined in Sections 4095, 4100, and 4185 of the
Civil Code, or real property which contains only 1 to 15 dwelling
units, which in either case (A) is solely used (i) for residential
purposes, or (ii) if reasonably contemplated by the parties to the
deed of trust or mortgage, for residential purposes as well as
limited agricultural or commercial purposes incidental thereto, and
(B) is the subject of an issued certificate of occupancy unless the
dwelling is to be owned and occupied by the borrower.
   (6) "Related party" means any person who shares an ownership
interest with the borrower in the real property security, or is a
partner or joint venturer with the borrower in a partnership or joint
venture, the business of which includes the acquisition,
development, use, lease, or sale of the real property security.
   (7) "Release" means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching,
dumping, or disposing into the environment, including continuing
migration, of hazardous substances into, onto, or through soil,
surface water, or groundwater. The term does not include actions
directly relating to the incorporation in a lawful manner of building
materials into a permanent improvement to the real property
security.
   (8) "Secured lender" means the beneficiary under a deed of trust
against the real property security, or the mortgagee under a mortgage
against the real property security, and any successor-in-interest of
the beneficiary or mortgagee to the deed of trust or mortgage.
   (f) This section shall not be construed to invalidate or otherwise
affect in any manner any rights or obligations arising under
contract in connection with a loan or extension of credit, including,
without limitation, provisions limiting recourse.
   (g) This section shall only apply to loans, extensions of credit,
guaranties, or other obligations secured by real property security
made, renewed, or modified on or after January 1, 1992.
  SEC. 46.  Section 729.035 of the Code of Civil Procedure is amended
to read:
   729.035.  Notwithstanding any provision of law to the contrary,
the sale of a separate interest in a common interest development is
subject to the right of redemption within 90 days after the sale if
the sale arises from a foreclosure by the association of a common
interest development pursuant to Sections 5700, 5710, and 5735 of the
Civil Code, subject to the conditions of Sections 5705, 5715, and
5720 of the Civil Code.
  SEC. 47.  Section 736 of the Code of Civil Procedure is amended to
read:
   736.  (a) Notwithstanding any other provision of law, a secured
lender may bring an action for breach of contract against a borrower
for breach of any environmental provision made by the borrower
relating to the real property security, for the recovery of damages,
and for the enforcement of the environmental provision, and that
action or failure to foreclose first against collateral shall not
constitute an action within the meaning of subdivision (a) of Section
726, or constitute a money judgment for a deficiency or a deficiency
judgment within the meaning of Section 580a, 580b, or 580d, or
subdivision (b) of Section 726. No injunction for the enforcement of
an environmental provision may be issued after (1) the obligation
secured by the real property security has been fully satisfied, or
(2) all of the borrower's rights, title, and interest in and to the
real property security has been transferred in a bona fide
transaction to an unaffiliated third party for fair value.
   (b) The damages a secured lender may recover pursuant to
subdivision (a) shall be limited to reimbursement or indemnification
of the following:
   (1) If not pursuant to an order of any federal, state, or local
governmental agency relating to the cleanup, remediation, or other
response action required by applicable law, those costs relating to a
reasonable and good faith cleanup, remediation, or other response
action concerning a release or threatened release of hazardous
substances which is anticipated by the environmental provision.
   (2) If pursuant to an order of any federal, state, or local
governmental agency relating to the cleanup, remediation, or other
response action required by applicable law which is anticipated by
the environmental provision, all amounts reasonably advanced in good
faith by the secured lender in connection therewith, provided that
the secured lender negotiated, or attempted to negotiate, in good
faith to minimize the amounts it was required to advance under the
order.
   (3) Indemnification against all liabilities of the secured lender
to any third party relating to the breach and not arising from acts,
omissions, or other conduct which occur after the borrower is no
longer an owner or operator of the real property security, and
provided the secured lender is not responsible for the
environmentally impaired condition of the real property security in
accordance with the standards set forth in subdivision (d) of Section
726.5. For purposes of this paragraph, the term "owner or operator"
means those persons described in Section 101(20)(A) of the
Comprehensive Environmental Response, Compensation, and Liability Act
of 1980, as amended (42 U.S.C. Sec. 9601, et seq.).
   (4) Attorneys' fees and costs incurred by the secured lender
relating to the breach.
   The damages a secured lender may recover pursuant to subdivision
(a) shall not include (i) any part of the principal amount or accrued
interest of the secured obligation, except for any amounts advanced
by the secured lender to cure or mitigate the breach of the
environmental provision that are added to the principal amount, and
contractual interest thereon, or (ii) amounts which relate to a
release which was knowingly permitted, caused, or contributed to by
the secured lender or any affiliate or agent of the secured lender.
   (c) A secured lender may not recover damages against a borrower
pursuant to subdivision (a) for amounts advanced or obligations
incurred for the cleanup or other remediation of real property
security, and related attorneys' fees and costs, if all of the
following are true:
   (1) The original principal amount of, or commitment for, the loan
or other obligation secured by the real property security did not
exceed two hundred thousand dollars ($200,000).
   (2) In conjunction with the secured lender's acceptance of the
environmental provision, the secured lender agreed in writing to
accept the real property security on the basis of a completed
environmental site assessment and other relevant information from the
borrower.
   (3) The borrower did not permit, cause, or contribute to the
release or threatened release.
   (4) The deed of trust or mortgage covering the real property
security has not been discharged, reconveyed, or foreclosed upon.
   (d) This section is not intended to establish, abrogate, modify,
limit, or otherwise affect any cause of action other than that
provided by subdivision (a) that a secured lender may have against a
borrower under an environmental provision.
   (e) This section shall apply only to environmental provisions
contracted in conjunction with loans, extensions of credit,
guaranties, or other obligations made, renewed, or modified on or
after January 1, 1992. Notwithstanding the foregoing, this section
shall not be construed to validate, invalidate, or otherwise affect
in any manner the rights and obligations of the parties to, or the
enforcement of, environmental provisions contracted before January 1,
1992.
                                                 (f) For purposes of
this section:
   (1) "Borrower" means the trustor under a deed of trust, or a
mortgagor under a mortgage, where the deed of trust or mortgage
encumbers real property security and secures the performance of the
trustor or mortgagor under a loan, extension of credit, guaranty, or
other obligation. The term includes any successor-in-interest of the
trustor or mortgagor to the real property security before the deed of
trust or mortgage has been discharged, reconveyed, or foreclosed
upon.
   (2) "Environmental provision" means any written representation,
warranty, indemnity, promise, or covenant relating to the existence,
location, nature, use, generation, manufacture, storage, disposal,
handling, or past, present, or future release or threatened release,
of any hazardous substance into, onto, beneath, or from the real
property security, or to past, present, or future compliance with any
law relating thereto, made by a borrower in conjunction with the
making, renewal, or modification of a loan, extension of credit,
guaranty, or other obligation involving the borrower, whether or not
the representation, warranty, indemnity, promise, or covenant is or
was contained in or secured by the deed of trust or mortgage, and
whether or not the deed of trust or mortgage has been discharged,
reconveyed, or foreclosed upon.
   (3) "Hazardous substance" means any of the following:
   (A) Any "hazardous substance" as defined in subdivision (h) of
Section 25281 of the Health and Safety Code.
   (B) Any "waste" as defined in subdivision (d) of Section 13050 of
the Water Code.
   (C) Petroleum, including crude oil or any fraction thereof,
natural gas, natural gas liquids, liquefied natural gas, or synthetic
gas usable for fuel, or any mixture thereof.
   (4) "Real property security" means any real property and
improvements, other than a separate interest and any related interest
in the common area of a residential common interest development, as
the terms "separate interest," "common area," and "common interest
development" are defined in Sections 4095, 4100, and 4185 of the
Civil Code, or real property which contains only 1 to 15 dwelling
units, which in either case (A) is solely used (i) for residential
purposes, or (ii) if reasonably contemplated by the parties to the
deed of trust or mortgage, for residential purposes as well as
limited agricultural or commercial purposes incidental thereto, and
(B) is the subject of an issued certificate of occupancy unless the
dwelling is to be owned and occupied by the borrower.
   (5) "Release" means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching,
dumping, or disposing into the environment, including continuing
migration, of hazardous substances into, onto, or through soil,
surface water, or groundwater. The term does not include actions
directly relating to the incorporation in a lawful manner of building
materials into a permanent improvement to the real property
security.
   (6) "Secured lender" means the beneficiary under a deed of trust
against the real property security, or the mortgagee under a mortgage
against the real property security, and any successor-in-interest of
the beneficiary or mortgagee to the deed of trust or mortgage.
  SEC. 48.  Section 12191 of the Government Code is amended to read:
   12191.  The miscellaneous business entity filing fees are the
following:
   (a) Foreign Associations, as defined in Sections 170 and 171 of
the Corporations Code:
   (1) Filing the statement and designation upon the qualification of
a foreign association pursuant to Section 2105 of the Corporations
Code: One hundred dollars ($100).
   (2) Filing an amended statement and designation by a foreign
association pursuant to Section 2107 of the Corporations Code: Thirty
dollars ($30).
   (3) Filing a certificate showing the surrender of the right of a
foreign association to transact intrastate business pursuant to
Section 2112 of the Corporations Code: No fee.
   (b) Unincorporated Associations:
   (1) Filing a statement in accordance with Section 24003 of the
Corporations Code as to principal place of office or place for
sending notices or designating agent for service: Twenty-five dollars
($25).
   (2) Insignia Registrations: Ten dollars ($10).
   (c) Community Associations and Common Interest Developments:
   (1) Filing a statement by a community association in accordance
with Section 5405 of the Civil Code to register the common interest
development that it manages: An amount not to exceed thirty dollars
($30).
   (2) Filing an amended statement by a community association in
accordance with Section 5405 of the Civil Code: No fee.
  SEC. 49.  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
Sections 4080, 4135, and 4150 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, gender, gender identity, gender expression, sexual
orientation, familial status, marital status, disability, genetic
information, national origin, source of income as defined in
subdivision (p) of Section 12955, or ancestry, that restriction
violates state and federal fair housing laws and is void, and may be
removed pursuant to Section 12956.2 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) 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.
  SEC. 50.  Section 12956.2 of the Government Code is amended to
read:
   12956.2.  (a) A 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 record a document titled Restrictive Covenant Modification. The
county recorder may choose to waive the fee prescribed for recording
and indexing instruments pursuant to Section 27361 in the case of the
modification document provided for in this section. The modification
document shall include a complete copy of the original document
containing the unlawfully restrictive language with the unlawfully
restrictive language stricken.
   (b) Before recording the modification document, the county
recorder shall submit the modification document and the original
document to the county counsel who shall determine whether the
original document contains an unlawful restriction based on race,
color, religion, sex, gender, gender identity, gender expression,
sexual orientation, familial status, marital status, disability,
national origin, source of income as defined in subdivision (p) of
Section 12955, or ancestry. The county counsel shall return the
documents and inform the county recorder of its determination. The
county recorder shall refuse to record the modification document if
the county counsel finds that the original document does not contain
an unlawful restriction as specified in this paragraph.
   (c) The modification document shall be indexed in the same manner
as the original document being modified. It shall contain a recording
reference to the original document in the form of a book and page or
instrument number, and date of the recording.
   (d) Subject to covenants, conditions, and restrictions that were
recorded after the recording of the original document that contains
the unlawfully restrictive language and subject to covenants,
conditions, and restrictions that will be recorded after the
Restrictive Covenant Modification, the restrictions in the
Restrictive Covenant Modification, once recorded, are the only
restrictions having effect on the property. The effective date of the
terms and conditions of the modification document shall be the same
as the effective date of the original document.
   (e) The county recorder shall make available to the public
Restrictive Covenant Modification forms.
   (f) If the holder of an ownership interest of record in property
causes to be recorded a modified document pursuant to this section
that contains modifications not authorized by this section, the
county recorder shall not incur liability for recording the document.
The liability that may result from the unauthorized recordation is
the sole responsibility of the holder of the ownership interest of
record who caused the modified recordation.
   (g) This section does not apply to persons holding an ownership
interest in property that is part of a common interest development as
defined in Section 4100 of the Civil Code if the board of directors
of that common interest development is subject to the requirements of
subdivision (b) of Section 4225 of the Civil Code.
  SEC. 51.  Section 53341.5 of the Government Code is amended to
read:
   53341.5.  (a) If a lot, parcel, or unit of a subdivision is
subject to a special tax levied pursuant to this chapter, the
subdivider, his or her agent, or representative, shall not sell, or
lease for a term exceeding five years, or permit a prospective
purchaser or lessor to sign a contract of purchase or a deposit
receipt or any substantially equivalent document in the event of a
lease with respect to the lot, parcel, or unit, or cause it to be
sold or leased for a term exceeding five years, until the prospective
purchaser or lessee of the lot, parcel, or unit has been furnished
with and has signed a written notice as provided in this section. The
notice shall contain the heading "NOTICE OF SPECIAL TAX" in type no
smaller than 8-point type, and shall be in substantially the
following form. The form may be modified as needed to clearly and
accurately describe the tax structure and other characteristics of
districts created before January 1, 1993, or to clearly and
accurately consolidate information about the tax structure and other
characteristics of two or more districts that levy or are authorized
to levy special taxes with respect to the lot, parcel, or unit:


      NOTICE OF SPECIAL TAX

COMMUNITY FACILITIES DISTRICT NO. ___

COUNTY OF ____, CALIFORNIA


TO: THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS:
__________________________________________________
__________________________________________________



   THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR ENTERING INTO A
CONTRACT TO PURCHASE THIS PROPERTY. THE SELLER IS REQUIRED TO GIVE
YOU THIS NOTICE AND TO OBTAIN A COPY SIGNED BY YOU TO INDICATE THAT
YOU HAVE RECEIVED AND READ A COPY OF THIS NOTICE.
   (1) This property is subject to a special tax, that is in addition
to the regular property taxes and any other charges, fees, special
taxes, and benefit assessments on the parcel. It is imposed on this
property because it is a new development, and is not necessarily
imposed generally upon property outside of this new development. If
you fail to pay this tax when due each year, the property may be
foreclosed upon and sold. The tax is used to provide public
facilities or services that are likely to particularly benefit the
property. YOU SHOULD TAKE THIS TAX AND THE BENEFITS FROM THE
FACILITIES AND SERVICES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING
WHETHER TO BUY THIS PROPERTY.
   (2) The maximum special tax that may be levied against this parcel
to pay for public facilities is $______ during the ____-__ tax year.
This amount will increase by __ percent per year after that (if
applicable). The special tax will be levied each year until all of
the authorized facilities are built and all special tax bonds are
repaid, but in any case not after the ____-__ tax year. An additional
special tax will be used to pay for ongoing service costs, if
applicable. The maximum amount of this tax is ____ dollars ($____)
during the ____-__ tax year. This amount may increase by ____, if
applicable, and that part may be levied until the ____-__ tax year
(or forever, as applicable).
   (3) The authorized facilities that are being paid for by the
special taxes, and by the money received from the sale of bonds that
are being repaid by the special taxes, are:

   These facilities may not yet have all been constructed or acquired
and it is possible that some may never be constructed or acquired.
   In addition, the special taxes may be used to pay for costs of the
following services:

   YOU MAY OBTAIN A COPY OF THE RESOLUTION OF FORMATION THAT
AUTHORIZED CREATION OF THE COMMUNITY FACILITIES DISTRICT, AND THAT
SPECIFIES MORE PRECISELY HOW THE SPECIAL TAX IS APPORTIONED AND HOW
THE PROCEEDS OF THE TAX WILL BE USED, FROM THE ____ (name of
jurisdiction) BY CALLING ____ (telephone number). THERE MAY BE A
CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE REASONABLE COST OF
PROVIDING THE DOCUMENT.

   I (WE) ACKNOWLEDGE THAT I (WE) HAVE READ THIS NOTICE AND RECEIVED
A COPY OF THIS NOTICE PRIOR TO ENTERING INTO A CONTRACT TO PURCHASE
OR SIGNING A DEPOSIT RECEIPT WITH RESPECT TO THE ABOVE-REFERENCED
PROPERTY. I (WE) UNDERSTAND THAT I (WE) MAY TERMINATE THE CONTRACT TO
PURCHASE OR DEPOSIT RECEIPT WITHIN THREE DAYS AFTER RECEIVING THIS
NOTICE IN PERSON OR WITHIN FIVE DAYS AFTER IT WAS DEPOSITED IN THE
MAIL BY GIVING WRITTEN NOTICE OF THAT TERMINATION TO THE OWNER,
SUBDIVIDER, OR AGENT SELLING THE PROPERTY.
DATE:                      _______________________
________________________   ____
________________________   _______________________
                            ____
________________________   _______________________
                            ____


   (b) "Subdivision," as used in subdivision (a), means improved or
unimproved land that is divided or proposed to be divided for the
purpose of sale, lease, or financing, whether immediate or future,
into two or more lots, parcels, or units and includes a condominium
project, as defined by Section 4125 of the Civil Code, a community
apartment project, a stock cooperative, and a limited-equity housing
cooperative, as defined in Sections 11004, 11003.2, and 11003.4,
respectively, of the Business and Professions Code.
   (c) The buyer shall have three days after delivery in person or
five days after delivery by deposit in the mail of any notice
required by this section, to terminate his or her agreement by
delivery of written notice of that termination to the owner,
subdivider, or agent.
   (d) The failure to furnish the notice to the buyer or lessee, and
failure of the buyer or lessee to sign the notice of a special tax,
shall not invalidate any grant, conveyance, lease, or encumbrance.
   (e) Any person or entity who willfully violates the provisions of
this section shall be liable to the purchaser of a lot or unit that
is subject to the provisions of this section, for actual damages, and
in addition thereto, shall be guilty of a public offense punishable
by a fine in an amount not to exceed five hundred dollars ($500). In
an action to enforce a liability or fine, the prevailing party shall
be awarded reasonable attorney's fees.
  SEC. 52.  Section 65008 of the Government Code is amended to read:
   65008.  (a) Any action pursuant to this title by any city, county,
city and county, or other local governmental agency in this state is
null and void if it denies to any individual or group of individuals
the enjoyment of residence, landownership, tenancy, or any other
land use in this state because of any of the following reasons:
   (1) (A) The lawful occupation, age, or any characteristic of the
individual or group of individuals listed in subdivision (a) or (d)
of Section 12955, as those bases are defined in Sections 12926,
12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
Section 12955 and Section 12955.2.
   (B) Notwithstanding subparagraph (A), with respect to familial
status, subparagraph (A) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9. With respect to
familial status, nothing in subparagraph (A) shall be construed to
affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the
Civil Code, relating to housing for senior citizens. Subdivision (d)
of Section 51 and Section 4760 of the Civil Code and subdivisions
(n), (o), and (p) of Section 12955 of this code shall apply to
subparagraph (A).
   (2) The method of financing of any residential development of the
individual or group of individuals.
   (3) The intended occupancy of any residential development by
persons or families of very low, low, moderate, or middle income.
   (b) (1) No city, county, city and county, or other local
governmental agency shall, in the enactment or administration of
ordinances pursuant to any law, including this title, prohibit or
discriminate against any residential development or emergency shelter
for any of the following reasons:
   (A) Because of the method of financing.
   (B) (i) Because of the lawful occupation, age, or any
characteristic listed in subdivision (a) or (d) of Section 12955, as
those characteristics are defined in Sections 12926, 12926.1,
subdivision (m) and paragraph (1) of subdivision (p) of Section
12955, and Section 12955.2 of the owners or intended occupants of the
residential development or emergency shelter.
   (ii) Notwithstanding clause (i), with respect to familial status,
clause (i) shall not be construed to apply to housing for older
persons, as defined in Section 12955.9. With respect to familial
status, nothing in clause (i) shall be construed to affect Sections
51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating
to housing for senior citizens. Subdivision (d) of Section 51 and
Section 4760 of the Civil Code and subdivisions (n), (o), and (p) of
Section 12955 of this code shall apply to clause (i).
   (C) Because the development or shelter is intended for occupancy
by persons and families of very low, low, or moderate income, as
defined in Section 50093 of the Health and Safety Code, or persons
and families of middle income.
   (D) Because the development consists of a multifamily residential
project that is consistent with both the jurisdiction's zoning
ordinance and general plan as they existed on the date the
application was deemed complete, except that a project shall not be
deemed to be inconsistent with the zoning designation for the site if
that zoning designation is inconsistent with the general plan only
because the project site has not been rezoned to conform with a more
recently adopted general plan.
   (2) The discrimination prohibited by this subdivision includes the
denial or conditioning of a residential development or shelter
because of, in whole or in part, either of the following:
   (A) The method of financing.
   (B) The occupancy of the development by persons protected by this
subdivision, including, but not limited to, persons and families of
very low, low, or moderate income.
   (3) A city, county, city and county, or other local government
agency may not, pursuant to subdivision (d) of Section 65589.5,
disapprove a housing development project or condition approval of a
housing development project in a manner that renders the project
infeasible if the basis for the disapproval or conditional approval
includes any of the reasons prohibited in paragraph (1) or (2).
   (c) For the purposes of this section, "persons and families of
middle income" means persons and families whose income does not
exceed 150 percent of the median income for the county in which the
persons or families reside.
   (d) (1) No city, county, city and county, or other local
governmental agency may impose different requirements on a
residential development or emergency shelter that is subsidized,
financed, insured, or otherwise assisted by the federal or state
government or by a local public entity, as defined in Section 50079
of the Health and Safety Code, than those imposed on nonassisted
developments, except as provided in subdivision (e). The
discrimination prohibited by this subdivision includes the denial or
conditioning of a residential development or emergency shelter based
in whole or in part on the fact that the development is subsidized,
financed, insured, or otherwise assisted as described in this
paragraph.
   (2) (A) No city, county, city and county, or other local
governmental agency may, because of the lawful occupation age, or any
characteristic of the intended occupants listed in subdivision (a)
or (d) of Section 12955, as those characteristics are defined in
Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
subdivision (p) of Section 12955, and Section 12955.2 or because the
development is intended for occupancy by persons and families of very
low, low, moderate, or middle income, impose different requirements
on these residential developments than those imposed on developments
generally, except as provided in subdivision (e).
   (B) Notwithstanding subparagraph (A), with respect to familial
status, subparagraph (A) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9. With respect to
familial status, nothing in subparagraph (A) shall be construed to
affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the
Civil Code, relating to housing for senior citizens. Subdivision (d)
of Section 51 and Section 4760 of the Civil Code and subdivisions
(n), (o), and (p) of Section 12955 of this code shall apply to
subparagraph (A).
   (e) Notwithstanding subdivisions (a) to (d), inclusive, this
section and this title do not prohibit either of the following:
   (1) The County of Riverside from enacting and enforcing zoning to
provide housing for older persons, in accordance with state or
federal law, if that zoning was enacted prior to January 1, 1995.
   (2) Any city, county, or city and county from extending
preferential treatment to residential developments or emergency
shelters assisted by the federal or state government or by a local
public entity, as defined in Section 50079 of the Health and Safety
Code, or other residential developments or emergency shelters
intended for occupancy by persons and families of low and moderate
income, as defined in Section 50093 of the Health and Safety Code, or
persons and families of middle income, or agricultural employees, as
defined in subdivision (b) of Section 1140.4 of the Labor Code, and
their families. This preferential treatment may include, but need not
be limited to, reduction or waiver of fees or changes in
architectural requirements, site development and property line
requirements, building setback requirements, or vehicle parking
requirements that reduce development costs of these developments.
   (f) "Residential development," as used in this section, means a
single-family residence or a multifamily residence, including
manufactured homes, as defined in Section 18007 of the Health and
Safety Code.
   (g) This section shall apply to chartered cities.
   (h) The Legislature finds and declares that discriminatory
practices that inhibit the development of housing for persons and
families of very low, low, moderate, and middle incomes, or emergency
shelters for the homeless, are a matter of statewide concern.
  SEC. 53.  Section 65915 of the Government Code is amended to read:
   65915.  (a) When an applicant seeks a density bonus for a housing
development within, or for the donation of land for housing within,
the jurisdiction of a city, county, or city and county, that local
government shall provide the applicant with incentives or concessions
for the production of housing units and child care facilities as
prescribed in this section. All cities, counties, or cities and
counties shall adopt an ordinance that specifies how compliance with
this section will be implemented. Failure to adopt an ordinance shall
not relieve a city, county, or city and county from complying with
this section.
   (b) (1) A city, county, or city and county shall grant one density
bonus, the amount of which shall be as specified in subdivision (f),
and incentives or concessions, as described in subdivision (d), when
an applicant for a housing development seeks and agrees to construct
a housing development, excluding any units permitted by the density
bonus awarded pursuant to this section, that will contain at least
any one of the following:
   (A) Ten percent of the total units of a housing development for
lower income households, as defined in Section 50079.5 of the Health
and Safety Code.
   (B) Five percent of the total units of a housing development for
very low income households, as defined in Section 50105 of the Health
and Safety Code.
   (C) A senior citizen housing development, as defined in Sections
51.3 and 51.12 of the Civil Code, or mobilehome park that limits
residency based on age requirements for housing for older persons
pursuant to Section 798.76 or 799.5 of the Civil Code.
   (D) Ten percent of the total dwelling units in a common interest
development as defined in Section 4100 of the Civil Code for persons
and families of moderate income, as defined in Section 50093 of the
Health and Safety Code, provided that all units in the development
are offered to the public for purchase.
   (2) For purposes of calculating the amount of the density bonus
pursuant to subdivision (f), the applicant who requests a density
bonus pursuant to this subdivision shall elect whether the bonus
shall be awarded on the basis of subparagraph (A), (B), (C), or (D)
of paragraph (1).
   (3) For the purposes of this section, "total units" or "total
dwelling units" does not include units added by a density bonus
awarded pursuant to this section or any local law granting a greater
density bonus.
   (c) (1) An applicant shall agree to, and the city, county, or city
and county shall ensure, continued affordability of all low- and
very low income units that qualified the applicant for the award of
the density bonus for 30 years or a longer period of time if required
by the construction or mortgage financing assistance program,
mortgage insurance program, or
     rental subsidy program. Rents for the lower income density bonus
units shall be set at an affordable rent as defined in Section 50053
of the Health and Safety Code. Owner-occupied units shall be
available at an affordable housing cost as defined in Section 50052.5
of the Health and Safety Code.
   (2) An applicant shall agree to, and the city, county, or city and
county shall ensure that, the initial occupant of the
moderate-income units that are directly related to the receipt of the
density bonus in the common interest development, as defined in
Section 4100 of the Civil Code, are persons and families of moderate
income, as defined in Section 50093 of the Health and Safety Code,
and that the units are offered at an affordable housing cost, as that
cost is defined in Section 50052.5 of the Health and Safety Code.
The local government shall enforce an equity sharing agreement,
unless it is in conflict with the requirements of another public
funding source or law. The following apply to the equity sharing
agreement:
   (A) Upon resale, the seller of the unit shall retain the value of
any improvements, the downpayment, and the seller's proportionate
share of appreciation. The local government shall recapture any
initial subsidy, as defined in subparagraph (B), and its
proportionate share of appreciation, as defined in subparagraph (C),
which amount shall be used within five years for any of the purposes
described in subdivision (e) of Section 33334.2 of the Health and
Safety Code that promote home ownership.
   (B) For purposes of this subdivision, the local government's
initial subsidy shall be equal to the fair market value of the home
at the time of initial sale minus the initial sale price to the
moderate-income household, plus the amount of any downpayment
assistance or mortgage assistance. If upon resale the market value is
lower than the initial market value, then the value at the time of
the resale shall be used as the initial market value.
   (C) For purposes of this subdivision, the local government's
proportionate share of appreciation shall be equal to the ratio of
the local government's initial subsidy to the fair market value of
the home at the time of initial sale.
   (d) (1) An applicant for a density bonus pursuant to subdivision
(b) may submit to a city, county, or city and county a proposal for
the specific incentives or concessions that the applicant requests
pursuant to this section, and may request a meeting with the city,
county, or city and county. The city, county, or city and county
shall grant the concession or incentive requested by the applicant
unless the city, county, or city and county makes a written finding,
based upon substantial evidence, of any of the following:
   (A) The concession or incentive is not required in order to
provide for affordable housing costs, as defined in Section 50052.5
of the Health and Safety Code, or for rents for the targeted units to
be set as specified in subdivision (c).
   (B) The concession or incentive would have a specific adverse
impact, as defined in paragraph (2) of subdivision (d) of Section
65589.5, upon public health and safety or the physical environment or
on any real property that is listed in the California Register of
Historical Resources and for which there is no feasible method to
satisfactorily mitigate or avoid the specific adverse impact without
rendering the development unaffordable to low- and moderate-income
households.
   (C) The concession or incentive would be contrary to state or
federal law.
   (2) The applicant shall receive the following number of incentives
or concessions:
   (A) One incentive or concession for projects that include at least
10 percent of the total units for lower income households, at least
5 percent for very low income households, or at least 10 percent for
persons and families of moderate income in a common interest
development.
   (B) Two incentives or concessions for projects that include at
least 20 percent of the total units for lower income households, at
least 10 percent for very low income households, or at least 20
percent for persons and families of moderate income in a common
interest development.
   (C) Three incentives or concessions for projects that include at
least 30 percent of the total units for lower income households, at
least 15 percent for very low income households, or at least 30
percent for persons and families of moderate income in a common
interest development.
   (3) The applicant may initiate judicial proceedings if the city,
county, or city and county refuses to grant a requested density
bonus, incentive, or concession. If a court finds that the refusal to
grant a requested density bonus, incentive, or concession is in
violation of this section, the court shall award the plaintiff
reasonable attorney's fees and costs of suit. Nothing in this
subdivision shall be interpreted to require a local government to
grant an incentive or concession that has a specific, adverse impact,
as defined in paragraph (2) of subdivision (d) of Section 65589.5,
upon health, safety, or the physical environment, and for which there
is no feasible method to satisfactorily mitigate or avoid the
specific adverse impact. Nothing in this subdivision shall be
interpreted to require a local government to grant an incentive or
concession that would have an adverse impact on any real property
that is listed in the California Register of Historical Resources.
The city, county, or city and county shall establish procedures for
carrying out this section, that shall include legislative body
approval of the means of compliance with this section.
   (e) (1) In no case may a city, county, or city and county apply
any development standard that will have the effect of physically
precluding the construction of a development meeting the criteria of
subdivision (b) at the densities or with the concessions or
incentives permitted by this section. An applicant may submit to a
city, county, or city and county a proposal for the waiver or
reduction of development standards that will have the effect of
physically precluding the construction of a development meeting the
criteria of subdivision (b) at the densities or with the concessions
or incentives permitted under this section, and may request a meeting
with the city, county, or city and county. If a court finds that the
refusal to grant a waiver or reduction of development standards is
in violation of this section, the court shall award the plaintiff
reasonable attorney's fees and costs of suit. Nothing in this
subdivision shall be interpreted to require a local government to
waive or reduce development standards if the waiver or reduction
would have a specific, adverse impact, as defined in paragraph (2) of
subdivision (d) of Section 65589.5, upon health, safety, or the
physical environment, and for which there is no feasible method to
satisfactorily mitigate or avoid the specific adverse impact. Nothing
in this subdivision shall be interpreted to require a local
government to waive or reduce development standards that would have
an adverse impact on any real property that is listed in the
California Register of Historical Resources, or to grant any waiver
or reduction that would be contrary to state or federal law.
   (2) A proposal for the waiver or reduction of development
standards pursuant to this subdivision shall neither reduce nor
increase the number of incentives or concessions to which the
applicant is entitled pursuant to subdivision (d).
   (f) For the purposes of this chapter, "density bonus" means a
density increase over the otherwise maximum allowable residential
density as of the date of application by the applicant to the city,
county, or city and county. The applicant may elect to accept a
lesser percentage of density bonus. The amount of density bonus to
which the applicant is entitled shall vary according to the amount by
which the percentage of affordable housing units exceeds the
percentage established in subdivision (b).
   (1) For housing developments meeting the criteria of subparagraph
(A) of paragraph (1) of subdivision (b), the density bonus shall be
calculated as follows:
   Percentage Low-Income  Percentage Density Bonus
           Units
            10                       20
            11                      21.5
            12                       23
            13                      24.5
            14                       26
            15                      27.5
            17                      30.5
            18                       32
            19                      33.5
            20                       35


   (2) For housing developments meeting the criteria of subparagraph
(B) of paragraph (1) of subdivision (b), the density bonus shall be
calculated as follows:
    Percentage Very Low   Percentage Density Bonus
       Income Units
             5                       20
             6                      22.5
             7                       25
             8                      27.5
             9                       30
            10                      32.5
            11                       35


   (3) For housing developments meeting the criteria of subparagraph
(C) of paragraph (1) of subdivision (b), the density bonus shall be
20 percent of the number of senior housing units.
   (4) For housing developments meeting the criteria of subparagraph
(D) of paragraph (1) of subdivision (b), the density bonus shall be
calculated as follows:
   Percentage Moderate-   Percentage Density Bonus
       Income Units
            10                        5
            11                        6
            12                        7
            13                        8
            14                        9
            15                       10
            16                       11
            17                       12
            18                       13
            19                       14
            20                       15
            21                       16
            22                       17
            23                       18
            24                       19
            25                       20
            26                       21
            27                       22
            28                       23
            29                       24
            30                       25
            31                       26
            32                       27
            33                       28
            34                       29
            35                       30
            36                       31
            37                       32
            38                       33
            39                       34
            40                       35


   (5) All density calculations resulting in fractional units shall
be rounded up to the next whole number. The granting of a density
bonus shall not be interpreted, in and of itself, to require a
general plan amendment, local coastal plan amendment, zoning change,
or other discretionary approval.
   (g) (1) When an applicant for a tentative subdivision map, parcel
map, or other residential development approval donates land to a
city, county, or city and county in accordance with this subdivision,
the applicant shall be entitled to a 15-percent increase above the
otherwise maximum allowable residential density for the entire
development, as follows:
    Percentage Very Low   Percentage Density Bonus
          Income
            10                       15
            11                       16
            12                       17
            13                       18
            14                       19
            15                       20
            16                       21
            17                       22
            18                       23
            19                       24
            20                       25
            21                       26
            22                       27
            23                       28
            24                       29
            25                       30
            26                       31
            27                       32
            28                       33
            29                       34
            30                       35


   (2) This increase shall be in addition to any increase in density
mandated by subdivision (b), up to a maximum combined mandated
density increase of 35 percent if an applicant seeks an increase
pursuant to both this subdivision and subdivision (b). All density
calculations resulting in fractional units shall be rounded up to the
next whole number. Nothing in this subdivision shall be construed to
enlarge or diminish the authority of a city, county, or city and
county to require a developer to donate land as a condition of
development. An applicant shall be eligible for the increased density
bonus described in this subdivision if all of the following
conditions are met:
   (A) The applicant donates and transfers the land no later than the
date of approval of the final subdivision map, parcel map, or
residential development application.
   (B) The developable acreage and zoning classification of the land
being transferred are sufficient to permit construction of units
affordable to very low income households in an amount not less than
10 percent of the number of residential units of the proposed
development.
   (C) The transferred land is at least one acre in size or of
sufficient size to permit development of at least 40 units, has the
appropriate general plan designation, is appropriately zoned with
appropriate development standards for development at the density
described in paragraph (3) of subdivision (c) of Section 65583.2, and
is or will be served by adequate public facilities and
infrastructure.
   (D) The transferred land shall have all of the permits and
approvals, other than building permits, necessary for the development
of the very low income housing units on the transferred land, not
later than the date of approval of the final subdivision map, parcel
map, or residential development application, except that the local
government may subject the proposed development to subsequent design
review to the extent authorized by subdivision (i) of Section 65583.2
if the design is not reviewed by the local government prior to the
time of transfer.
   (E) The transferred land and the affordable units shall be subject
to a deed restriction ensuring continued affordability of the units
consistent with paragraphs (1) and (2) of subdivision (c), which
shall be recorded on the property at the time of the transfer.
   (F) The land is transferred to the local agency or to a housing
developer approved by the local agency. The local agency may require
the applicant to identify and transfer the land to the developer.
   (G) The transferred land shall be within the boundary of the
proposed development or, if the local agency agrees, within
one-quarter mile of the boundary of the proposed development.
   (H) A proposed source of funding for the very low income units
shall be identified not later than the date of approval of the final
subdivision map, parcel map, or residential development application.
   (h) (1) When an applicant proposes to construct a housing
development that conforms to the requirements of subdivision (b) and
includes a child care facility that will be located on the premises
of, as part of, or adjacent to, the project, the city, county, or
city and county shall grant either of the following:
   (A) An additional density bonus that is an amount of square feet
of residential space that is equal to or greater than the amount of
square feet in the child care facility.
   (B) An additional concession or incentive that contributes
significantly to the economic feasibility of the construction of the
child care facility.
   (2) The city, county, or city and county shall require, as a
condition of approving the housing development, that the following
occur:
   (A) The child care facility shall remain in operation for a period
of time that is as long as or longer than the period of time during
which the density bonus units are required to remain affordable
pursuant to subdivision (c).
   (B) Of the children who attend the child care facility, the
children of very low income households, lower income households, or
families of moderate income shall equal a percentage that is equal to
or greater than the percentage of dwelling units that are required
for very low income households, lower income households, or families
of moderate income pursuant to subdivision (b).
   (3) Notwithstanding any requirement of this subdivision, a city,
county, or city and county shall not be required to provide a density
bonus or concession for a child care facility if it finds, based
upon substantial evidence, that the community has adequate child care
facilities.
   (4) "Child care facility," as used in this section, means a child
day care facility other than a family day care home, including, but
not limited to, infant centers, preschools, extended day care
facilities, and schoolage child care centers.
   (i) "Housing development," as used in this section, means a
development project for five or more residential units. For the
purposes of this section, "housing development" also includes a
subdivision or common interest development, as defined in Section
4100 of the Civil Code, approved by a city, county, or city and
county and consists of residential units or unimproved residential
lots and either a project to substantially rehabilitate and convert
an existing commercial building to residential use or the substantial
rehabilitation of an existing multifamily dwelling, as defined in
subdivision (d) of Section 65863.4, where the result of the
rehabilitation would be a net increase in available residential
units. For the purpose of calculating a density bonus, the
residential units shall be on contiguous sites that are the subject
of one development application, but do not have to be based upon
individual subdivision maps or parcels . The density bonus shall be
permitted in geographic areas of the housing development other than
the areas where the units for the lower income households are
located.
   (j) The granting of a concession or incentive shall not be
interpreted, in and of itself, to require a general plan amendment,
local coastal plan amendment, zoning change, or other discretionary
approval. This provision is declaratory of existing law.
   (k) For the purposes of this chapter, concession or incentive
means any of the following:
   (1) A reduction in site development standards or a modification of
zoning code requirements or architectural design requirements that
exceed the minimum building standards approved by the California
Building Standards Commission as provided in Part 2.5 (commencing
with Section 18901) of Division 13 of the Health and Safety Code,
including, but not limited to, a reduction in setback and square
footage requirements and in the ratio of vehicular parking spaces
that would otherwise be required that results in identifiable,
financially sufficient, and actual cost reductions.
   (2) Approval of mixed use zoning in conjunction with the housing
project if commercial, office, industrial, or other land uses will
reduce the cost of the housing development and if the commercial,
office, industrial, or other land uses are compatible with the
housing project and the existing or planned development in the area
where the proposed housing project will be located.
   (3) Other regulatory incentives or concessions proposed by the
developer or the city, county, or city and county that result in
identifiable, financially sufficient, and actual cost reductions.
   (l) Subdivision (k) does not limit or require the provision of
direct financial incentives for the housing development, including
the provision of publicly owned land, by the city, county, or city
and county, or the waiver of fees or dedication requirements.
   (m) Nothing in this section shall be construed to supersede or in
any way alter or lessen the effect or application of the California
Coastal Act (Division 20 (commencing with Section 30000) of the
Public Resources Code).
   (n) If permitted by local ordinance, nothing in this section shall
be construed to prohibit a city, county, or city and county from
granting a density bonus greater than what is described in this
section for a development that meets the requirements of this section
or from granting a proportionately lower density bonus than what is
required by this section for developments that do not meet the
requirements of this section.
   (o) For purposes of this section, the following definitions shall
apply:
   (1) "Development standard" includes a site or construction
condition, including, but not limited to, a height limitation, a
setback requirement, a floor area ratio, an onsite open-space
requirement, or a parking ratio that applies to a residential
development pursuant to any ordinance, general plan element, specific
plan, charter, or other local condition, law, policy, resolution, or
regulation.
   (2) "Maximum allowable residential density" means the density
allowed under the zoning ordinance and land use element of the
general plan, or if a range of density is permitted, means the
maximum allowable density for the specific zoning range and land use
element of the general plan applicable to the project. Where the
density allowed under the zoning ordinance is inconsistent with the
density allowed under the land use element of the general plan, the
general plan density shall prevail.
   (p) (1) Upon the request of the developer, no city, county, or
city and county shall require a vehicular parking ratio, inclusive of
handicapped and guest parking, of a development meeting the criteria
of subdivision (b), that exceeds the following ratios:
   (A) Zero to one bedroom: one onsite parking space.
   (B) Two to three bedrooms: two onsite parking spaces.
   (C) Four and more bedrooms: two and one-half parking spaces.
   (2) If the total number of parking spaces required for a
development is other than a whole number, the number shall be rounded
up to the next whole number. For purposes of this subdivision, a
development may provide "onsite parking" through tandem parking or
uncovered parking, but not through onstreet parking.
   (3) This subdivision shall apply to a development that meets the
requirements of subdivision (b) but only at the request of the
applicant. An applicant may request parking incentives or concessions
beyond those provided in this subdivision pursuant to subdivision
(d).
  SEC. 54.  Section 65995.5 of the Government Code is amended to
read:
   65995.5.  (a) The governing board of a school district may impose
the amount calculated pursuant to this section as an alternative to
the amount that may be imposed on residential construction calculated
pursuant to subdivision (b) of Section 65995.
   (b) To be eligible to impose the fee, charge, dedication, or other
requirement up to the amount calculated pursuant to this section, a
governing board shall do all of the following:
   (1) Make a timely application to the State Allocation Board for
new construction funding for which it is eligible and be determined
by the board to meet the eligibility requirements for new
construction funding set forth in Article 2 (commencing with Section
17071.10) and Article 3 (commencing with Section 17071.75) of Chapter
12.5 of Part 10 of the Education Code. A governing board that
submits an application to determine the district's eligibility for
new construction funding shall be deemed eligible if the State
Allocation Board fails to notify the district of the district's
eligibility within 120 days of receipt of the application.
   (2) Conduct and adopt a school facility needs analysis pursuant to
Section 65995.6.
   (3) Until January 1, 2000, satisfy at least one of the
requirements set forth in subparagraphs (A) to (D), inclusive, and,
on and after January 1, 2000, satisfy at least two of the
requirements set forth in subparagraphs (A) to (D), inclusive:
   (A) The district is a unified or elementary school district that
has a substantial enrollment of its elementary school pupils on a
multitrack year-round schedule. "Substantial enrollment" for purposes
of this paragraph means at least 30 percent of district pupils in
kindergarten and grades 1 to 6, inclusive, in the high school
attendance area in which all or some of the new residential units
identified in the needs analysis are planned for construction. A high
school district shall be deemed to have met the requirements of this
paragraph if either of the following apply:
   (i) At least 30 percent of the high school district's pupils are
on a multitrack year-round schedule.
   (ii) At least 40 percent of the pupils enrolled in public schools
in kindergarten and grades 1 to 12, inclusive, within the boundaries
of the high school attendance area for which the school district is
applying for new facilities are enrolled in multitrack year-round
schools.
   (B) The district has placed on the ballot in the previous four
years a local general obligation bond to finance school facilities
and the measure received at least 50 percent plus one of the votes
cast.
   (C) The district meets one of the following:
   (i) The district has issued debt or incurred obligations for
capital outlay in an amount equivalent to 15 percent of the district'
s local bonding capacity, including indebtedness that is repaid from
property taxes, parcel taxes, the district's general fund, special
taxes levied pursuant to Section 4 of Article XIII A of the
California Constitution, special taxes levied pursuant to Chapter 2.5
(commencing with Section 53311) of Division 2 of Title 5 that are
approved by a vote of registered voters, special taxes levied
pursuant to Chapter 2.5 (commencing with Section 53311) of Division 2
of Title 5 that are approved by a vote of landowners prior to
November 4, 1998, and revenues received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code). Indebtedness or other obligation
to finance school facilities to be owned, leased, or used by the
district, that is incurred by another public agency, shall be counted
for the purpose of calculating whether the district has met the debt
percentage requirement contained herein.
   (ii) The district has issued debt or incurred obligations for
capital outlay in an amount equivalent to 30 percent of the district'
s local bonding capacity, including indebtedness that is repaid from
property taxes, parcel taxes, the district's general fund, special
                                           taxes levied pursuant to
Section 4 of Article XIII A of the California Constitution, special
taxes levied pursuant to Chapter 2.5 (commencing with Section 53311)
of Division 2 of Title 5 that are approved by a vote of registered
voters, special taxes levied pursuant to Chapter 2.5 (commencing with
Section 53311) of Division 2 of Title 5 that are approved by a vote
of landowners after November 4, 1998, and revenues received pursuant
to the Community Redevelopment Law (Part 1 (commencing with Section
33000) of Division 24 of the Health and Safety Code). Indebtedness or
other obligation to finance school facilities to be owned, leased,
or used by the district, that is incurred by another public agency,
shall be counted for the purpose of calculating whether the district
has met the debt percentage requirement contained herein.
   (D) At least 20 percent of the teaching stations within the
district are relocatable classrooms.
   (c) The maximum square foot fee, charge, dedication, or other
requirement authorized by this section that may be collected in
accordance with Chapter 6 (commencing with Section 17620) of Part
10.5 of the Education Code shall be calculated by a governing board
of a school district, as follows:
   (1) The number of unhoused pupils identified in the school
facilities needs analysis shall be multiplied by the appropriate
amounts provided in subdivision (a) of Section 17072.10. This sum
shall be added to the site acquisition and development cost
determined pursuant to subdivision (h).
   (2) The full amount of local funds the governing board has
dedicated to facilities necessitated by new construction shall be
subtracted from the amount determined pursuant to paragraph (1).
Local funds include fees, charges, dedications, or other requirements
imposed on commercial or industrial construction.
   (3) The resulting amount determined pursuant to paragraph (2)
shall be divided by the projected total square footage of assessable
space of residential units anticipated to be constructed during the
next five-year period in the school district or the city and county
in which the school district is located. The estimate of the
projected total square footage shall be based on information
available from the city or county within which the residential units
are anticipated to be constructed or a market report prepared by an
independent third party.
   (d) A school district that has a common territorial jurisdiction
with a district that imposes the fee, charge, dedication, or other
requirement up to the amount calculated pursuant to this section or
Section 65995.7, may not impose a fee, charge, dedication, or other
requirement on residential construction that exceeds the limit set
forth in subdivision (b) of Section 65995 less the portion of that
amount it would be required to share pursuant to Section 17623 of the
Education Code, unless that district is eligible to impose the fee,
charge, dedication, or other requirement up to the amount calculated
pursuant to this section or Section 65995.7.
   (e) Nothing in this section is intended to limit or discourage the
joint use of school facilities or to limit the ability of a school
district to construct school facilities that exceed the amount of
funds authorized by Section 17620 of the Education Code and provided
by the state grant program, if the additional costs are funded solely
by local revenue sources other than fees, charges, dedications, or
other requirements imposed on new construction.
   (f) Except as provided in paragraph (5) of subdivision (a) of
Section 17620 of the Education Code, a fee, charge, dedication, or
other requirement authorized under this section and Section 65995.7
shall be expended solely on the school facilities identified in the
needs analysis as being attributable to projected enrollment growth
from the construction of new residential units. This subdivision does
not preclude the expenditure of a fee, charge, dedication, or other
requirement, authorized pursuant to subparagraph (C) of paragraph (1)
of subdivision (a) of Section 17620, on school facilities identified
in the needs analysis as necessary due to projected enrollment
growth attributable to the new residential units.
   (g) "Residential units" and "residences" as used in this section
and in Sections 65995.6 and 65995.7 means the development of
single-family detached housing units, single-family attached housing
units, manufactured homes and mobilehomes, as defined in subdivision
(f) of Section 17625 of the Education Code, condominiums, and
multifamily housing units, including apartments, residential hotels,
as defined in paragraph (1) of subdivision (b) of Section 50519 of
the Health and Safety Code, and stock cooperatives, as defined in
Section 4190 of the Civil Code.
   (h) Site acquisition costs shall not exceed half of the amount
determined by multiplying the land acreage determined to be necessary
under the guidelines of the State Department of Education, as
published in the "School Site Analysis and Development Handbook," as
that handbook read as of January 1, 1998, by the estimated cost
determined pursuant to Section 17072.12 of the Education Code. Site
development costs shall not exceed the estimated amount that would be
funded by the State Allocation Board pursuant to its regulations
governing grants for site development costs.
  SEC. 55.  Section 66411 of the Government Code is amended to read:
   66411.  Regulation and control of the design and improvement of
subdivisions are vested in the legislative bodies of local agencies.
Each local agency shall, by ordinance, regulate and control the
initial design and improvement of common interest developments as
defined in Section 4100 of the Civil Code and subdivisions for which
this division requires a tentative and final or parcel map. In the
development, adoption, revision, and application of this type of
ordinance, the local agency shall comply with the provisions of
Section 65913.2. The ordinance shall specifically provide for proper
grading and erosion control, including the prevention of
sedimentation or damage to offsite property. Each local agency may by
ordinance regulate and control other subdivisions, provided that the
regulations are not more restrictive than the regulations for those
subdivisions for which a tentative and final or parcel map are
required by this division, and provided further that the regulations
shall not be applied to short-term leases (terminable by either party
on not more than 30 days' notice in writing) of a portion of the
operating right-of-way of a railroad corporation as defined by
Section 230 of the Public Utilities Code unless a showing is made in
individual cases, under substantial evidence, that public policy
necessitates the application of the regulations to those short-term
leases in individual cases.
  SEC. 56.  Section 66412 of the Government Code is amended to read:
   66412.  This division shall be inapplicable to any of the
following:
   (a) The financing or leasing of apartments, offices, stores, or
similar space within apartment buildings, industrial buildings,
commercial buildings, mobilehome parks, or trailer parks.
   (b) Mineral, oil, or gas leases.
   (c) Land dedicated for cemetery purposes under the Health and
Safety Code.
   (d) A lot line adjustment between four or fewer existing adjoining
parcels, where the land taken from one parcel is added to an
adjoining parcel, and where a greater number of parcels than
originally existed is not thereby created, if the lot line adjustment
is approved by the local agency, or advisory agency. A local agency
or advisory agency shall limit its review and approval to a
determination of whether or not the parcels resulting from the lot
line adjustment will conform to the local general plan, any
applicable specific plan, any applicable coastal plan, and zoning and
building ordinances. An advisory agency or local agency shall not
impose conditions or exactions on its approval of a lot line
adjustment except to conform to the local general plan, any
applicable specific plan, any applicable coastal plan, and zoning and
building ordinances, to require the prepayment of real property
taxes prior to the approval of the lot line adjustment, or to
facilitate the relocation of existing utilities, infrastructure, or
easements. No tentative map, parcel map, or final map shall be
required as a condition to the approval of a lot line adjustment. The
lot line adjustment shall be reflected in a deed, which shall be
recorded. No record of survey shall be required for a lot line
adjustment unless required by Section 8762 of the Business and
Professions Code. A local agency shall approve or disapprove a lot
line adjustment pursuant to the Permit Streamlining Act (Chapter 4.5
(commencing with Section 65920) of Division 1).
   (e) Boundary line or exchange agreements to which the State Lands
Commission or a local agency holding a trust grant of tide and
submerged lands is a party.
   (f) Any separate assessment under Section 2188.7 of the Revenue
and Taxation Code.
   (g) The conversion of a community apartment project, as defined in
Section 4105 of the Civil Code, to a condominium, as defined in
Section 783 of the Civil Code, but only if all of the following
requirements are met:
   (1) The property was subdivided before January 1, 1982, as
evidenced by a recorded deed creating the community apartment
project.
   (2) Subject to compliance with Sections 4290 and 4295 of the Civil
Code, all conveyances and other documents necessary to effectuate
the conversion shall be executed by the required number of owners in
the project as specified in the bylaws or other organizational
documents. If the bylaws or other organizational documents do not
expressly specify the number of owners necessary to execute the
conveyances and other documents, a majority of owners in the project
shall be required to execute the conveyances or other documents.
Conveyances and other documents executed under the foregoing
provisions shall be binding upon and affect the interests of all
parties in the project.
   (3) If subdivision, as defined in Section 66424, of the property
occurred after January 1, 1964, both of the following requirements
are met:
   (A) A final or parcel map of that subdivision was approved by the
local agency and recorded, with all of the conditions of that map
remaining in effect after the conversion.
   (B) No more than 49 percent of the units in the project were owned
by any one person as defined in Section 17, including an
incorporator or director of the community apartment project, on
January 1, 1982.
   (4) The local agency certifies that the above requirements were
satisfied if the local agency, by ordinance, provides for that
certification.
   (h)  The conversion of a stock cooperative, as defined in Section
4190 of the Civil Code, to a condominium, as defined in Section 783
of the Civil Code, but only if all of the following requirements are
met:
   (1) The property was subdivided before January 1, 1982, as
evidenced by a recorded deed creating the stock cooperative, an
assignment of lease, or issuance of shares to a stockholder.
   (2) A person renting a unit in a cooperative shall be entitled at
the time of conversion to all tenant rights in state or local law,
including, but not limited to, rights respecting first refusal,
notice, and displacement and relocation benefits.
   (3) Subject to compliance with Sections 4290 and 4295 of the Civil
Code, all conveyances and other documents necessary to effectuate
the conversion shall be executed by the required number of owners in
the cooperative as specified in the bylaws or other organizational
documents. If the bylaws or other organizational documents do not
expressly specify the number of owners necessary to execute the
conveyances and other documents, a majority of owners in the
cooperative shall be required to execute the conveyances or other
documents. Conveyances and other documents executed under the
foregoing provisions shall be binding upon and affect the interests
of all parties in the cooperative.
   (4) If subdivision, as defined in Section 66424, of the property
occurred after January 1, 1980, both of the following requirements
are met:
   (A) A final or parcel map of that subdivision was approved by the
local agency and recorded, with all of the conditions of that map
remaining in effect after the conversion.
   (B) No more than 49 percent of the shares in the project were
owned by any one person as defined in Section 17, including an
incorporator or director of the cooperative, on January 1, 1982.
   (5) The local agency certifies that the above requirements were
satisfied if the local agency, by ordinance, provides for that
certification.
   (i) The leasing of, or the granting of an easement to, a parcel of
land, or any portion or portions thereof, in conjunction with the
financing, erection, and sale or lease of a wind powered electrical
generation device on the land, if the project is subject to
discretionary action by the advisory agency or legislative body.
   (j) The leasing or licensing of a portion of a parcel, or the
granting of an easement, use permit, or similar right on a portion of
a parcel, to a telephone corporation as defined in Section 234 of
the Public Utilities Code, exclusively for the placement and
operation of cellular radio transmission facilities, including, but
not limited to, antennae support structures, microwave dishes,
structures to house cellular communications transmission equipment,
power sources, and other equipment incidental to the transmission of
cellular communications, if the project is subject to discretionary
action by the advisory agency or legislative body.
   (k) Leases of agricultural land for agricultural purposes. As used
in this subdivision, "agricultural purposes" means the cultivation
of food or fiber, or the grazing or pasturing of livestock.
   (l) The leasing of, or the granting of an easement to, a parcel of
land, or any portion or portions thereof, in conjunction with the
financing, erection, and sale or lease of a solar electrical
generation device on the land, if the project is subject to review
under other local agency ordinances regulating design and improvement
or, if the project is subject to other discretionary action by the
advisory agency or legislative body.
   (m) The leasing of, or the granting of an easement to, a parcel of
land or any portion or portions of the land in conjunction with a
biogas project that uses, as part of its operation, agricultural
waste or byproducts from the land where the project is located and
reduces overall emissions of greenhouse gases from agricultural
operations on the land if the project is subject to review under
other local agency ordinances regulating design and improvement or if
the project is subject to discretionary action by the advisory
agency or legislative body.
  SEC. 57.  Section 66424 of the Government Code is amended to read:
   66424.  "Subdivision" means the division, by any subdivider, of
any unit or units of improved or unimproved land, or any portion
thereof, shown on the latest equalized county assessment roll as a
unit or as contiguous units, for the purpose of sale, lease, or
financing, whether immediate or future. Property shall be considered
as contiguous units, even if it is separated by roads, streets,
utility easement, or railroad rights-of-way. "Subdivision" includes a
condominium project, as defined in Section 4125 of the Civil Code, a
community apartment project, as defined in Section 4105 of the Civil
Code, or the conversion of five or more existing dwelling units to a
stock cooperative, as defined in of Section 4190 of the Civil Code.
  SEC. 58.  Section 66427 of the Government Code is amended to read:
   66427.  (a) A map of a condominium project, a community apartment
project, or of the conversion of five or more existing dwelling units
to a stock cooperative project need not show the buildings or the
manner in which the buildings or the airspace above the property
shown on the map are to be divided, nor shall the governing body have
the right to refuse approval of a parcel, tentative, or final map of
the project on account of the design or the location of buildings on
the property shown on the map that are not violative of local
ordinances or on account of the manner in which airspace is to be
divided in conveying the condominium.
   (b) A map need not include a condominium plan or plans, as defined
in Section 4120 of the Civil Code, and the governing body may not
refuse approval of a parcel, tentative, or final map of the project
on account of the absence of a condominium plan.
   (c) Fees and lot design requirements shall be computed and imposed
with respect to those maps on the basis of parcels or lots of the
surface of the land shown thereon as included in the project.
   (d) Nothing herein shall be deemed to limit the power of the
legislative body to regulate the design or location of buildings in a
project by or pursuant to local ordinances.
   (e) If the governing body has approved a parcel map or final map
for the establishment of condominiums on property pursuant to the
requirements of this division, the separation of a three-dimensional
portion or portions of the property from the remainder of the
property or the division of that three-dimensional portion or
portions into condominiums shall not constitute a further subdivision
as defined in Section 66424, provided each of the following
conditions has been satisfied:
   (1) The total number of condominiums established is not increased
above the number authorized by the local agency in approving the
parcel map or final map.
   (2) A perpetual estate or an estate for years in the remainder of
the property is held by the condominium owners in undivided interests
in common, or by an association as defined in Section 4100 of the
Civil Code, and the duration of the estate in the remainder of the
property is the same as the duration of the estate in the
condominiums.
   (3) The three-dimensional portion or portions of property are
described on a condominium plan or plans, as defined in Section 4120
of the Civil Code.
  SEC. 59.  Section 66452.10 of the Government Code is amended to
read:
   66452.10.  A stock cooperative, as defined in Section 11003.2 of
the Business and Professions Code, or a community apartment project,
as defined in Section 11004 of the Business and Professions Code,
shall not be converted to a condominium, as defined in Section 783 of
the Civil Code, unless the required number of (1) owners and (2)
trustees or beneficiaries of each recorded deed of trust and
mortgagees of each recorded mortgage in the cooperative or project,
as specified in the bylaws, or other organizational documents, have
voted in favor of the conversion. If the bylaws or other
organizational documents do not expressly specify the number of votes
required to approve the conversion, a majority vote of the (1)
owners and (2) trustees or beneficiaries of each recorded deed of
trust and mortgagees of each recorded mortgage in the cooperative or
project shall be required. Upon approval of the conversion as set
forth above and in compliance with Sections 4290 and 4295 of the
Civil Code, all conveyances and other documents necessary to
effectuate the conversion shall be executed by the required number of
owners in the cooperative or project as specified in the bylaws or
other organizational documents. If the bylaws or other organizational
documents do not expressly specify the number of owners necessary to
execute the conveyances or other documents, a majority of owners in
the cooperative or project shall be required to execute the
conveyances and other documents. Conveyances and other documents
executed under the foregoing provisions shall be binding upon and
affect the interests of all parties in the cooperative or project.
The provisions of Section 66499.31 shall not apply to a violation of
this section.
  SEC. 60.  Section 66475.2 of the Government Code is amended to
read:
   66475.2.  (a) There may be imposed by local ordinance a
requirement of a dedication or an irrevocable offer of dedication of
land within the subdivision for local transit facilities such as bus
turnouts, benches, shelters, landing pads, and similar items that
directly benefit the residents of a subdivision. The irrevocable
offers may be terminated as provided in subdivisions (c) and (d) of
Section 66477.2.
   (b) Only the payment of fees in lieu of the dedication of land may
be required in subdivisions that consist of the subdivision of
airspace in existing buildings into condominium projects, stock
cooperatives, or community apartment projects, as those terms are
defined in Sections 4105, 4125, and 4190 of the Civil Code.
  SEC. 61.  Section 66477 of the Government Code is amended to read:
   66477.  (a) The legislative body of a city or county may, by
ordinance, require the dedication of land or impose a requirement of
the payment of fees in lieu thereof, or a combination of both, for
park or recreational purposes as a condition to the approval of a
tentative map or parcel map, if all of the following requirements are
met:
   (1) The ordinance has been in effect for a period of 30 days prior
to the filing of the tentative map of the subdivision or parcel map.

   (2) The ordinance includes definite standards for determining the
proportion of a subdivision to be dedicated and the amount of any fee
to be paid in lieu thereof. The amount of land dedicated or fees
paid shall be based upon the residential density, which shall be
determined on the basis of the approved or conditionally approved
tentative map or parcel map and the average number of persons per
household. There shall be a rebuttable presumption that the average
number of persons per household by units in a structure is the same
as that disclosed by the most recent available federal census or a
census taken pursuant to Chapter 17 (commencing with Section 40200)
of Part 2 of Division 3 of Title 4. However, the dedication of land,
or the payment of fees, or both, shall not exceed the proportionate
amount necessary to provide three acres of park area per 1,000
persons residing within a subdivision subject to this section, unless
the amount of existing neighborhood and community park area, as
calculated pursuant to this subdivision, exceeds that limit, in which
case the legislative body may adopt the calculated amount as a
higher standard not to exceed five acres per 1,000 persons residing
within a subdivision subject to this section.
   (A) The park area per 1,000 members of the population of the city,
county, or local public agency shall be derived from the ratio that
the amount of neighborhood and community park acreage bears to the
total population of the city, county, or local public agency as shown
in the most recent available federal census. The amount of
neighborhood and community park acreage shall be the actual acreage
of existing neighborhood and community parks of the city, county, or
local public agency as shown on its records, plans, recreational
element, maps, or reports as of the date of the most recent available
federal census.
   (B) For cities incorporated after the date of the most recent
available federal census, the park area per 1,000 members of the
population of the city shall be derived from the ratio that the
amount of neighborhood and community park acreage shown on the
records, maps, or reports of the county in which the newly
incorporated city is located bears to the total population of the new
city as determined pursuant to Section 11005 of the Revenue and
Taxation Code. In making any subsequent calculations pursuant to this
section, the county in which the newly incorporated city is located
shall not include the figures pertaining to the new city which were
calculated pursuant to this paragraph. Fees shall be payable at the
time of the recording of the final map or parcel map or at a later
time as may be prescribed by local ordinance.
   (3) The land, fees, or combination thereof are to be used only for
the purpose of developing new or rehabilitating existing
neighborhood or community park or recreational facilities to serve
the subdivision.
   (4) The legislative body has adopted a general plan or specific
plan containing policies and standards for parks and recreation
facilities, and the park and recreational facilities are in
accordance with definite principles and standards.
   (5) The amount and location of land to be dedicated or the fees to
be paid shall bear a reasonable relationship to the use of the park
and recreational facilities by the future inhabitants of the
subdivision.
   (6) The city, county, or other local public agency to which the
land or fees are conveyed or paid shall develop a schedule specifying
how, when, and where it will use the land or fees, or both, to
develop park or recreational facilities to serve the residents of the
subdivision. Any fees collected under the ordinance shall be
committed within five years after the payment of the fees or the
issuance of building permits on one-half of the lots created by the
subdivision, whichever occurs later. If the fees are not committed,
they, without any deductions, shall be distributed and paid to the
then record owners of the subdivision in the same proportion that the
size of their lot bears to the total area of all lots within the
subdivision.
   (7) Only the payment of fees may be required in subdivisions
containing 50 parcels or less, except that when a condominium
project, stock cooperative, or community apartment project, as those
terms are defined in Sections 4105, 4125, and 4190 of the Civil Code,
exceeds 50 dwelling units, dedication of land may be required
notwithstanding that the number of parcels may be less than 50.
   (8) Subdivisions containing less than five parcels and not used
for residential purposes shall be exempted from the requirements of
this section. However, in that event, a condition may be placed on
the approval of a parcel map that if a building permit is requested
for construction of a residential structure or structures on one or
more of the parcels within four years, the fee may be required to be
paid by the owner of each parcel as a condition of the issuance of
the permit.
   (9) If the subdivider provides park and recreational improvements
to the dedicated land, the value of the improvements together with
any equipment located thereon shall be a credit against the payment
of fees or dedication of land required by the ordinance.
   (b) Land or fees required under this section shall be conveyed or
paid directly to the local public agency which provides park and
recreational services on a communitywide level and to the area within
which                                                     the
proposed development will be located, if that agency elects to accept
the land or fee. The local agency accepting the land or funds shall
develop the land or use the funds in the manner provided in this
section.
   (c) If park and recreational services and facilities are provided
by a public agency other than a city or county, the amount and
location of land to be dedicated or fees to be paid shall, subject to
paragraph (2) of subdivision (a), be jointly determined by the city
or county having jurisdiction and that other public agency.
   (d) This section does not apply to commercial or industrial
subdivisions or to condominium projects or stock cooperatives that
consist of the subdivision of airspace in an existing apartment
building that is more than five years old when no new dwelling units
are added.
   (e) Common interest developments, as defined in Section 1351 of
the Civil Code, shall be eligible to receive a credit, as determined
by the legislative body, against the amount of land required to be
dedicated, or the amount of the fee imposed, pursuant to this
section, for the value of private open space within the development
which is usable for active recreational uses.
   (f) Park and recreation purposes shall include land and facilities
for the activity of "recreational community gardening," which
activity consists of the cultivation by persons other than, or in
addition to, the owner of the land, of plant material not for sale.
   (g) This section shall be known and may be cited as the Quimby
Act.
  SEC. 62.  Section 1597.531 of the Health and Safety Code is amended
to read:
   1597.531.  (a) All family day care homes for children shall
maintain in force either liability insurance covering injury to
clients and guests in the amount of at least one hundred thousand
dollars ($100,000) per occurrence and three hundred thousand dollars
($300,000) in the total annual aggregate, sustained on account of the
negligence of the licensee or its employees, or a bond in the
aggregate amount of three hundred thousand dollars ($300,000). In
lieu of the liability insurance or the bond, the family day care home
may maintain a file of affidavits signed by each parent with a child
enrolled in the home which meets the requirements of this
subdivision. The affidavit shall state that the parent has been
informed that the family day care home does not carry liability
insurance or a bond according to standards established by the state.
If the provider does not own the premises used as the family day care
home, the affidavit shall also state that the parent has been
informed that the liability insurance, if any, of the owner of the
property or the homeowners' association, as appropriate, may not
provide coverage for losses arising out of, or in connection with,
the operation of the family day care home, except to the extent that
the losses are caused by, or result from, an action or omission by
the owner of the property or the homeowners' association, for which
the owner of the property or the homeowners' association would
otherwise be liable under the law. These affidavits shall be on a
form provided by the department and shall be reviewed at each
licensing inspection.
   (b) A family day care home that maintains liability insurance or a
bond pursuant to this section, and that provides care in premises
that are rented or leased or uses premises which share common space
governed by a homeowners' association, shall name the owner of the
property or the homeowners' association, as appropriate, as an
additional insured party on the liability insurance policy or bond if
all of the following conditions are met:
   (1) The owner of the property or governing body of the homeowners'
association makes a written request to be added as an additional
insured party.
   (2) The addition of the owner of the property or the homeowners'
association does not result in cancellation or nonrenewal of the
insurance policy or bond carried by the family day care home.
   (3) Any additional premium assessed for this coverage is paid by
the owner of the property or the homeowners' association.
   (c) As used in this section, "homeowners' association" means an
association of a common interest development, as defined in Sections
4080 and 4100 of the Civil Code.
  SEC. 63.  Section 13132.7 of the Health and Safety Code is amended
to read:
   13132.7.  (a) Within a very high fire hazard severity zone
designated by the Director of Forestry and Fire Protection pursuant
to Article 9 (commencing with Section 4201) of Chapter 1 of Part 2 of
Division 4 of the Public Resources Code and within a very high
hazard severity zone designated by a local agency pursuant to Chapter
6.8 (commencing with Section 51175) of Part 1 of Division 1 of Title
5 of the Government Code, the entire roof covering of every existing
structure where more than 50 percent of the total roof area is
replaced within any one-year period, every new structure, and any
roof covering applied in the alteration, repair, or replacement of
the roof of every existing structure, shall be a fire retardant roof
covering that is at least class B as defined in the Uniform Building
Code, as adopted and amended by the State Building Standards
Commission.
   (b) In all other areas, the entire roof covering of every existing
structure where more than 50 percent of the total roof area is
replaced within any one-year period, every new structure, and any
roof covering applied in the alteration, repair, or replacement of
the roof of every existing structure, shall be a fire retardant roof
covering that is at least class C as defined in the Uniform Building
Code, as adopted and amended by the State Building Standards
Commission.
   (c) Notwithstanding subdivision (b), within state responsibility
areas classified by the State Board of Forestry and Fire Protection
pursuant to Article 3 (commencing with Section 4125) of Chapter 1 of
Part 2 of Division 4 of the Public Resources Code, except for those
state responsibility areas designated as moderate fire hazard
responsibility zones, the entire roof covering of every existing
structure where more than 50 percent of the total roof area is
replaced within any one-year period, every new structure, and any
roof covering applied in the alteration, repair, or replacement of
the roof of every existing structure, shall be a fire retardant roof
covering that is at least class B as defined in the Uniform Building
Code, as adopted and amended by the State Building Standards
Commission.
   (d) (1) Notwithstanding subdivision (a), (b), or (c), within very
high fire hazard severity zones designated by the Director of
Forestry and Fire Protection pursuant to Article 9 (commencing with
Section 4201) of Chapter 1 of Part 2 of Division 4 of the Public
Resources Code or by a local agency pursuant to Chapter 6.8
(commencing with Section 51175) of Part 1 of Division 1 of Title 5 of
the Government Code, the entire roof covering of every existing
structure where more than 50 percent of the total roof area is
replaced within any one-year period, every new structure, and any
roof covering applied in the alteration, repair, or replacement of
the roof of every existing structure, shall be a fire retardant roof
covering that is at least class A as defined in the Uniform Building
Code, as adopted and amended by the State Building Standards
Commission.
   (2) Paragraph (1) does not apply to any jurisdiction containing a
very high fire hazard severity zone if the jurisdiction fulfills both
of the following requirements:
   (A) Adopts the model ordinance approved by the State Fire Marshal
pursuant to Section 51189 of the Government Code or an ordinance that
substantially conforms to the model ordinance of the State Fire
Marshal.
   (B) Transmits, upon adoption, a copy of the ordinance to the State
Fire Marshal.
   (e) The State Building Standards Commission shall incorporate the
requirements set forth in subdivisions (a), (b), and (c) by
publishing them as an amendment to the California Building Standards
Code in accordance with Chapter 4 (commencing with Section 18935) of
Part 2.5 of Division 13.
   (f) Nothing in this section shall limit the authority of a city,
county, city and county, or fire protection district in establishing
more restrictive requirements, in accordance with current law, than
those specified in this section.
   (g) This section shall not affect the validity of an ordinance,
adopted prior to the effective date for the relevant roofing standard
specified in subdivisions (a) and (b), by a city, county, city and
county, or fire protection district, unless the ordinance mandates a
standard that is less stringent than the standards set forth in
subdivision (a), in which case the ordinance shall not be valid on or
after the effective date for the relevant roofing standard specified
in subdivisions (a) and (b).
   (h) Any qualified historical building or structure as defined in
Section 18955 may, on a case-by-case basis, utilize alternative roof
constructions as provided by the State Historical Building Code.
   (i) The installer of the roof covering shall provide certification
of the roof covering classification, as provided by the manufacturer
or supplier, to the building owner and, when requested, to the
agency responsible for enforcement of this part. The installer shall
also install the roof covering in accordance with the manufacturer's
listing.
   (j) No wood roof covering materials shall be sold or applied in
this state unless both of the following conditions are met:
   (1) The materials have been approved and listed by the State Fire
Marshal as complying with the requirements of this section.
   (2) The materials have passed at least five years of the 10-year
natural weathering test. The 10-year natural weathering test required
by this subdivision shall be conducted in accordance with standard
15-2 of the 1994 edition of the Uniform Building Code at a testing
facility recognized by the State Fire Marshal.
   (k) The Insurance Commissioner shall accept the use of fire
retardant wood roof covering material that complies with the
requirements of this section, used in the partial repair or
replacement of nonfire retardant wood roof covering material, as
complying with the requirement in Section 2695.9 of Title 10 of the
California Code of Regulations relative to matching replacement items
in quality, color, and size.
   (  l  ) No common interest development, as defined in
Section 4100 of the Civil Code, may require a homeowner to install or
repair a roof in a manner that is in violation of this section. The
governing documents, as defined in Section 4150 of the Civil Code, of
a common interest development within a very high fire severity zone
shall allow for at least one type of fire retardant roof covering
material that meets the requirements of this section.
  SEC. 64.  Section 19850 of the Health and Safety Code is amended to
read:
   19850.  The building department of every city or county shall
maintain an official copy, which may be on microfilm or other type of
photographic copy, of the plans of every building, during the life
of the building, for which the department issued a building permit.
   "Building department" means the department, bureau, or officer
charged with the enforcement of laws or ordinances regulating the
erection, construction, or alteration of buildings.
   Except for plans of a common interest development as defined in
Section 4100 of the Civil Code, plans need not be filed for:
   (a) Single or multiple dwellings not more than two stories and
basement in height.
   (b) Garages and other structures appurtenant to buildings
described under subdivision (a).
   (c) Farm or ranch buildings.
   (d) Any one-story building where the span between bearing walls
does not exceed 25 feet. The exemption in this subdivision does not,
however, apply to a steel frame or concrete building.
  SEC. 65.  Section 25400.22 of the Health and Safety Code is amended
to read:
   25400.22.  (a) No later than 10 working days after the date when a
local health officer determines that property is contaminated
pursuant to subdivision (b) of Section 25400.20, the local health
officer shall do all of the following:
   (1) Except as provided in paragraph (2), if the property is real
property, record with the county recorder a lien on the property. The
lien shall specify all of the following:
   (A) The name of the agency on whose behalf the lien is imposed.
   (B) The date on which the property is determined to be
contaminated.
   (C) The legal description of the real property and the assessor's
parcel number.
   (D) The record owner of the property.
   (E) The amount of the lien, which shall be the greater of two
hundred dollars ($200) or the costs incurred by the local health
officer in compliance with this chapter, including, but not limited
to, the cost of inspection performed pursuant to Section 25400.19 and
the county recorder's fee.
   (2) (A) If the property is a mobilehome or manufactured home
specified in paragraph (2) of subdivision (t) of Section 25400.11,
amend the permanent record with a restraint on the mobilehome, or
manufactured home with the Department of Housing and Community
Development, in the form prescribed by that department, providing
notice of the determination that the property is contaminated.
   (B) If the property is a recreational vehicle specified in
paragraph (2) of subdivision (t) of Section 25400.11, perfect by
filing with the Department of Motor Vehicles a vehicle license stop
on the recreational vehicle in the form prescribed by that
department, providing notice of the determination that the property
is contaminated.
   (C) If the property is a mobilehome or manufactured home, not
subject to paragraph (2) of subdivision (t) of Section 25400.11, is
located on real property, and is not attached to that real property,
the local health officer shall record a lien for the real property
with the county recorder, and the Department of Housing and Community
Development shall amend the permanent record with a restraint for
the mobilehome or manufactured home, in the form and with the
contents prescribed by that department.
   (3) A lien, restraint, or vehicle license stop issued pursuant to
paragraph (2) shall specify all of the following:
   (A) The name of the agency on whose behalf the lien, restraint, or
vehicle license stop is imposed.
   (B) The date on which the property is determined to be
contaminated.
   (C) The legal description of the real property and the assessor's
parcel number, and the mailing and street address or space number of
the manufactured home, mobilehome, or recreational vehicle or the
vehicle identification number of the recreational vehicle, if
applicable.
   (D) The registered owner of the mobilehome, manufactured home, or
recreational vehicle, if applicable, or the name of the owner of the
real property as indicated in the official county records.
   (E) The amount of the lien, if applicable, which shall be the
greater of two hundred dollars ($200) or the costs incurred by the
local health officer in compliance with this chapter, including, but
not limited to, the cost of inspection performed pursuant to Section
25400.19 and the fee charged by the Department of Housing and
Community Development and the Department of Motor Vehicles pursuant
to paragraph (2) of subdivision (b).
   (F) Other information required by the county recorder for the
lien, the Department of Housing and Community Development for the
restraint, or the Department of Motor Vehicles for the vehicle
license stop.
   (4) Issue to persons specified in subdivisions (d), (e), and (f)
an order prohibiting the use or occupancy of the contaminated
portions of the property.
   (b) (1) The county recorder's fees for recording and indexing
documents provided for in this section shall be in the amount
specified in Article 5 (commencing with Section 27360) of Chapter 6
of Part 3 of Title 3 of the Government Code.
   (2) The Department of Housing and Community Development and the
Department of Motor Vehicles may charge a fee to cover its
administrative costs for recording and indexing documents provided
for in paragraph (2) of subdivision (a).
   (c) (1) A lien recorded pursuant to subdivision (a) shall have the
force, effect, and priority of a judgment lien. The restraint
amending the permanent record pursuant to subdivision (a) shall be
displayed on any manufactured home or mobilehome title search until
the restraint is released. The vehicle license stop shall remain in
effect until it is released.
   (2) The local health officer shall not authorize the release of a
lien, restraint, or vehicle license stop made pursuant to subdivision
(a), until one of the following occurs:
   (A) The property owner satisfies the real property lien, or the
contamination in the mobilehome, manufactured home, or recreational
vehicle is abated to the satisfaction of the local health officer
consistent with the notice in the restraint, or vehicle license stop
and the local health officer issues a release pursuant to Section
25400.27.
   (B) For a manufactured home or mobilehome, the local health
officer determines that the unit will be destroyed or permanently
salvaged. For the purposes of this paragraph, the unit shall not be
reregistered after this determination is made unless the local health
officer issues a release pursuant to Section 25400.27.
   (C) The lien, restraint, or vehicle license stop is extinguished
by a senior lien in a foreclosure sale.
   (d) Except as otherwise specified in this section, an order issued
pursuant to this section shall be served, either personally or by
certified mail, return receipt requested, in the following manner:
   (1) For real property, to all known occupants of the property and
to all persons who have an interest in the property, as contained in
the records of the recorder's office of the county in which the
property is located.
   (2) In the case of a mobilehome or manufactured home, the order
shall be served to the legal owner, as defined in Section 18005.8,
each junior lienholder, as defined in Section 18005.3, and the
registered owner, as defined in Section 18009.5.
   (3) In the case of a recreational vehicle, the order shall be
served on the legal owner, as defined in Section 370 of the Vehicle
Code, and the registered owner, as defined in Section 505 of the
Vehicle Code.
   (e) If the whereabouts of the person described in subdivision (d)
are unknown and cannot be ascertained by the local health officer, in
the exercise of reasonable diligence, and the local health officer
makes an affidavit to that effect, the local health officer shall
serve the order by personal service or by mailing a copy of the order
by certified mail, postage prepaid, return receipt requested, as
follows:
   (1) The order related to real property shall be served to each
person at the address appearing on the last equalized tax assessment
roll of the county where the property is located, and to all
occupants of the affected unit.
   (2) In the case of a mobilehome or manufactured home, the order
shall be served to the legal owner, as defined in Section 18005.8,
each junior lienholder, as defined in Section 18005.3, and the
registered owner, as defined in Section 18009.5, at the address
appearing on the permanent record and all occupants of the affected
unit at the mobilehome park space.
   (3) In the case of a recreational vehicle, the order shall be
served on the legal owner, as defined in Section 370 of the Vehicle
Code, and the registered owner, as defined in Section 505 of the
Vehicle Code, at the address appearing on the permanent record and
all occupants of the affected vehicle at the mobilehome park or
special occupancy park space.
   (f) (1) The local health officer shall also mail a copy of the
order required by this section to the address of each person or party
having a recorded right, title, estate, lien, or interest in the
property and to the association of a common interest development, as
defined in Sections 4080 and 4100 of the Civil Code.
   (2) In addition to the requirements of paragraph (1), if the
affected property is a mobilehome, manufactured home, or recreational
vehicle, specified in paragraph (2) of subdivision (t) of Section
25400.11, the order issued by the local health officer shall also be
served, either personally or by certified mail, return receipt
requested, to the owner of the mobilehome park or special occupancy
park.
   (g) The order issued pursuant to this section shall include all of
the following information:
   (1) A description of the property.
   (2) The parcel identification number, address, or space number, if
applicable.
   (3) The vehicle identification number, if applicable.
   (4) A description of the local health officer's intended course of
action.
   (5) A specification of the penalties for noncompliance with the
order.
   (6) A prohibition on the use of all or portions of the property
that are contaminated.
   (7) A description of the measures the property owner is required
to take to decontaminate the property.
   (8) An indication of the potential health hazards involved.
   (9) A statement that a property owner who fails to provide a
notice or disclosure that is required by this chapter is subject to a
civil penalty of up to five thousand dollars ($5,000).
   (h) The local health officer shall provide a copy of the order to
the local building or code enforcement agency or other appropriate
agency responsible for the enforcement of the State Housing Law (Part
1.5 (commencing with Section 17910) of Division 13).
   (i) The local health officer shall post the order in a conspicuous
place on the property within one working day of the date that the
order is issued.
  SEC. 66.  Section 25915.2 of the Health and Safety Code is amended
to read:
   25915.2.  (a) Notice provided pursuant to this chapter shall be
provided in writing to each individual employee, and shall be mailed
to other owners designated to receive the notice pursuant to
subdivision (a) of Section 25915.5, within 15 days of the first
receipt by the owner of information identifying the presence or
location of asbestos-containing construction materials in the
building. This notice shall be provided annually thereafter. In
addition, if new information regarding those items specified in
paragraphs (1) to (5), inclusive, of subdivision (a) of Section 25915
has been obtained within 90 days after the notice required by this
subdivision is provided or any subsequent 90-day period, then a
supplemental notice shall be provided within 15 days of the close of
that 90-day period.
   (b) Notice provided pursuant to this chapter shall be provided to
new employees within 15 days of commencement of work in the building.

   (c) Notice provided pursuant to this chapter shall be mailed to
any new owner designated to receive the notice pursuant to
subdivision (a) of Section 25915.5 within 15 days of the effective
date of the agreement under which a person becomes a new owner.
   (d) Subdivisions (a) and (c) shall not be construed to require
owners of a building or part of a building within a residential
common interest development to mail written notification to other
owners of a building or part of a building within the residential
common interest development, if all the following conditions are met:

   (1) The association conspicuously posts, in each building or part
of a building known to contain asbestos-containing materials, a large
sign in a prominent location that fully informs persons entering
each building or part of a building within the common interest
development that the association knows the building contains
asbestos-containing materials.
   The sign shall also inform persons of the location where further
information, as required by this chapter, is available about the
asbestos-containing materials known to be located in the building.
   (2) The owners or association disclose, as soon as practicable
before the transfer of title of a separate interest in the common
interest development, to a transferee the existence of
asbestos-containing material in a building or part of a building
within the common interest development.
   Failure to comply with this section shall not invalidate the
transfer of title of real property. This paragraph shall only apply
to transfers of title of separate interests in the common interest
development of which the owners have knowledge. As used in this
section, "association" and "common interest development" are defined
in Sections 4080 and 4100 of the Civil Code.
   (e) If a person contracting with an owner receives notice pursuant
to this chapter, that contractor shall provide a copy of the notice
to his or her employees or contractors working within the building.
   (f) If the asbestos-containing construction material in the
building is limited to an area or areas within the building that meet
all the following criteria:
   (1) Are unique and physically defined.
   (2) Contain asbestos-containing construction materials in
structural, mechanical, or building materials which are not
replicated throughout the building.
   (3) Are not connected to other areas through a common ventilation
system; then, an owner required to give notice to his or her
employees pursuant to subdivision (a) of Section 25915 or 25915.1 may
provide that notice only to the employees working within or entering
that area or those areas of the building meeting the conditions
above.
   (g) If the asbestos-containing construction material in the
building is limited to an area or areas within the building that meet
all the following criteria:
   (1) Are accessed only by building maintenance employees or
contractors and are not accessed by tenants or employees in the
building, other than on an incidental basis.
   (2) Contain asbestos-containing construction materials in
structural, mechanical, or building materials which are not
replicated in areas of the building which are accessed by tenants and
employees.
   (3) The owner knows that no asbestos fibers are being released or
have the reasonable possibility to be released from the material;
then, as to that asbestos-containing construction material, an owner
required to give notice to his or her employees pursuant to
subdivision (a) of Section 25915 or Section 25915.1 may provide that
notice only to its building maintenance employees and contractors who
have access to that area or those areas of the building meeting the
conditions above.
   (h) In those areas of a building where the asbestos-containing
construction material is composed only of asbestos fibers which are
completely encapsulated, if the owner knows that no asbestos fibers
are being released or have the reasonable
                possibility to be released from that material in its
present condition and has no knowledge that other asbestos-containing
material is present, then an owner required to give notice pursuant
to subdivision (a) of Section 25915 shall provide the information
required in paragraph (2) of subdivision (a) of Section 25915 and may
substitute the following notice for the requirements of paragraphs
(1), (3), (4), and (5) of subdivision (a) of Section 25915:
   (1) The existence of, conclusions from, and a description or list
of the contents of, that portion of any survey conducted to determine
the existence and location of asbestos-containing construction
materials within the building that refers to the asbestos-containing
materials described in this subdivision, and information describing
when and where the results of the survey are available pursuant to
Section 25917.
   (2) Information to convey that moving, drilling, boring, or
otherwise disturbing the asbestos-containing construction material
identified may present a health risk and, consequently, should not be
attempted by an unqualified employee. The notice shall identify the
appropriate person the employee is required to contact if the
condition of the asbestos-containing construction material
deteriorates.
  SEC. 67.  Section 25915.5 of the Health and Safety Code is amended
to read:
   25915.5.  (a) An owner required to give notice to employees
pursuant to this chapter, in addition to notifying his or her
employees, shall mail, in accordance with this subdivision, a copy of
that notice to all other persons who are owners of the building or
part of the building, with whom the owner has privity of contract.
Receipt of a notice pursuant to this section by an owner, lessee, or
operator shall constitute knowledge that the building contains
asbestos-containing construction materials for purposes of this
chapter. Notice to an owner shall be delivered by first-class mail
addressed to the person and at the address designated for the receipt
of notices under the lease, rental agreement, or contract with the
owner.
   (b) The delivery of notice under this section or negligent failure
to provide that notice shall not constitute a breach of any covenant
under the lease or rental agreement, and nothing in this chapter
enlarges or diminishes any rights or duties respecting constructive
eviction.
   (c) No owner who, in good faith, complies with the provisions of
this section shall be liable to any other owner for any damages
alleged to have resulted from his or her compliance with the
provisions of this section.
   (d) This section shall not be construed to apply to owners of a
building or part of a building within a residential common interest
development or association, if the owners comply with the provisions
of subdivision (d) of Section 25915.2. For purposes of this section,
"association" and "common interest development" are defined in
Sections 4080 and 4100 of the Civil Code.
  SEC. 68.  Section 33050 of the Health and Safety Code is amended to
read:
   33050.  (a) It is hereby declared to be the policy of the state
that in undertaking community redevelopment projects under this part
there shall be no discrimination because of any basis listed in
subdivision (a) or (d) of Section 12955 of the Government Code, as
those bases are defined in Sections 12926, 12926.1, subdivision (m)
and paragraph (1) of subdivision (p) of Section 12955, and Section
12955.2 of the Government Code.
   (b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51 and Section 4760 of the Civil
Code and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code shall apply to subdivision (a).
  SEC. 69.  Section 33435 of the Health and Safety Code is amended to
read:
   33435.  (a) Agencies shall obligate lessees and purchasers of real
property acquired in redevelopment projects and owners of property
improved as a part of a redevelopment project to refrain from
restricting the rental, sale, or lease of the property on any basis
listed in subdivision (a) or (d) of Section 12955 of the Government
Code, as those bases are defined in Sections 12926, 12926.1,
subdivision (m) and paragraph (1) of subdivision (p) of Section
12955, and Section 12955.2 of the Government Code. All deeds, leases,
or contracts for the sale, lease, sublease, or other transfer of any
land in a redevelopment project shall contain or be subject to the
nondiscrimination or nonsegregation clauses hereafter prescribed.
   (b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51 and Section 4760 of the Civil
Code and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code shall apply to subdivision (a).
  SEC. 70.  Section 33436 of the Health and Safety Code is amended to
read:
   33436.  Express provisions shall be included in all deeds, leases,
and contracts that the agency proposes to enter into with respect to
the sale, lease, sublease, transfer, use, occupancy, tenure, or
enjoyment of any land in a redevelopment project in substantially the
following form:
   (a) (1) In deeds the following language shall appear--"The grantee
herein covenants by and for himself or herself, his or her heirs,
executors, administrators, and assigns, and all persons claiming
under or through them, that there shall be no discrimination against
or segregation of, any person or group of persons on account of any
basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926,
12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
Section 12955, and Section 12955.2 of the Government Code, in the
sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment
of the premises herein conveyed, nor shall the grantee or any person
claiming under or through him or her, establish or permit any
practice or practices of discrimination or segregation with reference
to the selection, location, number, use, or occupancy of tenants,
lessees, subtenants, sublessees, or vendees in the premises herein
conveyed. The foregoing covenants shall run with the land."
   (2) Notwithstanding paragraph (1), with respect to familial
status, paragraph (1) shall not be construed to apply to housing for
older persons, as defined in Section 12955.9 of the Government Code.
With respect to familial status, nothing in paragraph (1) shall be
construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and
799.5 of the Civil Code, relating to housing for senior citizens.
Subdivision (d) of Section 51 and Section 4760 of the Civil Code and
subdivisions (n), (o), and (p) of Section 12955 of the Government
Code shall apply to paragraph (1).
   (b) (1) In leases the following language shall appear--"The lessee
herein covenants by and for himself or herself, his or her heirs,
executors, administrators, and assigns, and all persons claiming
under or through him or her, and this lease is made and accepted upon
and subject to the following conditions:
   That there shall be no discrimination against or segregation of
any person or group of persons, on account of any basis listed in
subdivision (a) or (d) of Section 12955 of the Government Code, as
those bases are defined in Sections 12926, 12926.1, subdivision (m)
and paragraph (1) of subdivision (p) of Section 12955, and Section
12955.2 of the Government Code, in the leasing, subleasing,
transferring, use, occupancy, tenure, or enjoyment of the premises
herein leased nor shall the lessee himself or herself, or any person
claiming under or through him or her, establish or permit any such
practice or practices of discrimination or segregation with reference
to the selection, location, number, use, or occupancy, of tenants,
lessees, sublessees, subtenants, or vendees in the premises herein
leased."
   (2) Notwithstanding paragraph (1), with respect to familial
status, paragraph (1) shall not be construed to apply to housing for
older persons, as defined in Section 12955.9 of the Government Code.
With respect to familial status, nothing in paragraph (1) shall be
construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and
799.5 of the Civil Code, relating to housing for senior citizens.
Subdivision (d) of Section 51 and Section 4760 of the Civil Code and
subdivisions (n), (o), and (p) of Section 12955 of the Government
Code shall apply to paragraph (1).
   (c) In contracts entered into by the agency relating to the sale,
transfer, or leasing of land or any interest therein acquired by the
agency within any survey area or redevelopment project the foregoing
provisions in substantially the forms set forth shall be included and
the contracts shall further provide that the foregoing provisions
shall be binding upon and shall obligate the contracting party or
parties and any subcontracting party or parties, or other transferees
under the instrument.
  SEC. 71.  Section 33769 of the Health and Safety Code is amended to
read:
   33769.  (a) An agency shall require that any residence that is
constructed with financing obtained under this chapter shall be open,
upon sale or rental of any portion thereof, to all regardless of any
basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926,
12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
Section 12955, and Section 12955.2 of the Government Code. The agency
shall also require that contractors and subcontractors engaged in
residential construction financed under this chapter shall provide
equal opportunity for employment, without discrimination as to any
basis listed in subdivision (a) of Section 12940 of the Government
Code, as those bases are defined in Sections 12926 and 12926.1 of the
Government Code, and except as otherwise provided in Section 12940
of the Government Code. All contracts and subcontracts for
residential construction financed under this chapter shall be let
without discrimination as to any basis listed in subdivision (a) of
Section 12940 of the Government Code, as those bases are defined in
Sections 12926 and 12926.1 of the Government Code and except as
otherwise provided in Section 12940 of the Government Code. It shall
be the policy of an agency financing residential construction under
this chapter to encourage participation by minority contractors, and
the agency shall adopt rules and regulations to implement this
section.
   (b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51 and Section 4760 of the Civil
Code and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code shall apply to subdivision (a).
  SEC. 72.  Section 35811 of the Health and Safety Code is amended to
read:
   35811.  (a) No financial institution shall discriminate in the
availability of, or in the provision of, financial assistance for the
purpose of purchasing, constructing, rehabilitating, improving, or
refinancing housing accommodations due, in whole or in part, to the
consideration of any basis listed in subdivision (a) or (d) of
Section 12955 of the Government Code, as those bases are defined in
Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
subdivision (p) of Section 12955, and Section 12955.2 of the
Government Code.
   (b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51 and Section 4760 of the Civil
Code and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code shall apply to subdivision (a).
  SEC. 73.  Section 37630 of the Health and Safety Code is amended to
read:
   37630.  (a) The local agency shall require that any property that
is rehabilitated with financing obtained under this part shall be
open, upon sale or rental of any portion thereof, to all regardless
of any basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926,
12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
Section 12955, and Section 12955.2 of the Government Code. The local
agency shall also require that contractors and subcontractors engaged
in historical rehabilitation financed under this part provide equal
opportunity for employment, without discrimination as to any basis
listed in subdivision (a) of Section 12940 of the Government Code, as
those bases are defined in Sections 12926 and 12926.1 of the
Government Code, and except as otherwise provided in Section 12940 of
the Government Code. All contracts and subcontracts for historical
rehabilitation financed under this part shall be let without
discrimination as to any basis listed in subdivision (a) of Section
12940 of the Government Code, as those bases are defined in Sections
12926 and 12926.1 of the Government Code, and except as otherwise
provided in Section 12940 of the Government Code.
   (b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51 and Section 4760 of the Civil
Code and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code shall apply to subdivision (a).
  SEC. 74.  Section 37923 of the Health and Safety Code is amended to
read:
   37923.  (a) The local agency shall require that any residence that
is rehabilitated, constructed, or acquired with financing obtained
under this part shall be open, upon sale or rental of any portion
thereof, to all regardless of any basis listed in subdivision (a) or
(d) of Section 12955 of the Government Code, as those bases are
defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1)
of subdivision (p) of Section 12955, and Section 12955.2 of the
Government Code. The local agency shall also require that contractors
and subcontractors engaged in residential rehabilitation financed
under this part provide equal opportunity for employment, without
discrimination as to any basis listed in subdivision (a) of Section
12940 of the Government Code, as those bases are defined in Sections
12926 and 12926.1 of the Government Code, and except as otherwise
provided in Section 12940 of the Government Code. All contracts and
subcontracts for residential rehabilitation financed under this part
shall be let without discrimination as to any basis listed in
subdivision (a) of Section 12940 of the Government Code, as those
bases are defined in Sections 12926 and 12926.1 of the Government
Code, and except as otherwise provided in Section 12940 of the
Government Code. It shall be the policy of the local agency financing
residential rehabilitation under this part to encourage
participation by minority contractors, and the local agency shall
adopt rules and regulations to implement this section.
   (b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51 and Section 4760 of the Civil
Code and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code shall apply to subdivision (a).
  SEC. 75.  Section 50955 of the Health and Safety Code is amended to
read:
   50955.  (a) The agency and every housing sponsor shall require
that occupancy of housing developments assisted under this part shall
be open to all regardless of any basis listed in subdivision (a) or
(d) of Section 12955 of the Government Code, as those bases are
defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1)
of subdivision (p) of Section 12955, and Section 12955.2 of the
Government Code, that contractors and subcontractors engaged in the
construction of housing developments shall provide an equal
opportunity for employment, without discrimination as to any basis
listed in subdivision (a) of Section 12940 of the Government Code, as
those bases are defined in Sections 12926 and 12926.1 of the
Government Code, and except as otherwise provided in Section 12940 of
the Government Code, and that contractors and subcontractors shall
submit and receive approval of an affirmative action program prior to
the commencement of construction or rehabilitation. Affirmative
action requirements respecting apprenticeship shall be consistent
with Chapter 4 (commencing with Section 3070) of Division 3 of the
Labor Code.
   All contracts for the management, construction, or rehabilitation
of housing developments, and contracts let by housing sponsors,
contractors, and subcontractors in the performance of management,
construction, or rehabilitation, shall be let without discrimination
as to any basis listed in subdivision (a) of Section 12940 of the
Government Code, as those bases are defined in Sections 12926 and
12926.1 of the Government Code, except as otherwise provided in
Section 12940 of the Government Code, and pursuant to an affirmative
action program, which shall be at not less than the Federal Housing
Administration affirmative action standards unless the board makes a
specific finding that the particular requirement would be unworkable.
The agency shall periodically review implementation of affirmative
action programs required by this section.
   It shall be the policy of the agency and housing sponsors to
encourage participation with respect to all projects by minority
developers, builders, and entrepreneurs in all levels of
construction, planning, financing, and management of housing
developments. In areas of minority concentration the agency shall
require significant participation of minorities in the sponsorship,
construction, planning, financing, and management of housing
developments. The agency shall (1) require that, to the greatest
extent feasible, opportunities for training and employment arising in
connection with the planning, construction, rehabilitation, and
operation of housing developments financed pursuant to this part be
given to persons of low income residing in the area of that housing,
and (2) determine and implement means to secure the participation of
small businesses in the performance of contracts for work on housing
developments and to develop the capabilities of these small
businesses to more efficiently and competently participate in the
economic mainstream. In order to achieve this participation by small
businesses, the agency may, among other things, waive retention
requirements otherwise imposed on contractors or subcontractors by
regulation of the agency and may authorize or make advance payments
for work to be performed. The agency shall develop relevant selection
criteria for the participation of small businesses to ensure that,
to the greatest extent feasible, the participants possess the
necessary nonfinancial capabilities. The agency may, with respect to
these small businesses, waive bond requirements otherwise imposed
upon contractors or subcontractors by regulation of the agency, but
the agency shall in that case substantially reduce the risk through
(1) a pooled-risk bonding program, (2) a bond program in cooperation
with other federal or state agencies, or (3) development of a
self-insured bonding program with adequate reserves.
   The agency shall adopt rules and regulations to implement this
section.
   Prior to commitment of a mortgage loan, the agency shall require
each housing sponsor, except with respect to mutual self-help
housing, to submit an affirmative marketing program that meets
standards set forth in regulations of the agency. The agency shall
require each housing sponsor to conduct the affirmative marketing
program so approved. Additionally, the agency shall supplement the
efforts of individual housing sponsors by conducting affirmative
marketing programs with respect to housing at the state level.
   (b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51 and Section 4760 of the Civil
Code and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code shall apply to subdivision (a).
  SEC. 76.  Section 51602 of the Health and Safety Code is amended to
read:
   51602.  (a) The agency shall require that occupancy of housing for
which a loan is insured pursuant to this part shall be open to all
regardless of any basis listed in subdivision (a) or (d) of Section
12955 of the Government Code, as those bases are defined in Sections
12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p)
of Section 12955, and Section 12955.2 of the Government Code, and
that contractors and subcontractors engaged in the construction or
rehabilitation of housing funded by a loan insured pursuant to this
part shall provide an equal opportunity for employment without
discrimination as to any basis listed in subdivision (a) of Section
12940 of the Government Code, as those bases are defined in Sections
12926 and 12926.1 of the Government Code, and except as otherwise
provided in Section 12940 of the Government Code.
   (b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51 and Section 4760 of the Civil
Code and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code shall apply to subdivision (a).
   (c) A qualified developer shall certify compliance with this
section and Section 50955 according to requirements specified by the
pertinent criteria of the agency.
  SEC. 77.  Section 116048 of the Health and Safety Code is amended
to read:
   116048.  (a)  On or after January 1, 1987, for public swimming
pools in any common interest development, as defined in Section 4100
of the Civil Code, that consists of fewer than 25 separate interests,
as defined in Section 4185 of the Civil Code, the person operating
each pool open for use shall be required to keep a record of the
information required by subdivision (a) of Section 65523 of Title 22
of the California Administrative Code, except that the information
shall be recorded at least two times per week and at intervals no
greater than four days apart.
   (b)  On or after January 1, 1987, any rule or regulation of the
department that is in conflict with subdivision (a) is invalid.
  SEC. 78.  Section 790.031 of the Insurance Code is amended to read:

   790.031.  The requirements of subdivision (b) of Section 790.034,
and Sections 2071.1 and 10082.3 shall apply only to policies of
residential property insurance as defined in Section 10087, policies
and endorsements containing those coverages prescribed in Chapter 8.5
(commencing with Section 10081) of Part 1 of Division 2, policies
issued by the California Earthquake Authority pursuant to Chapter 8.6
(commencing with Section 10089.5) of Part 1 of Division 2, policies
and endorsements that insure against property damage and are issued
to common interest developments or to associations managing common
interest developments, as those terms are defined in Sections 4080
and 4100 of the Civil Code, and to policies issued pursuant to
Section 120 that insure against property damage to residential units
or contents thereof owned by one or more persons located in this
state.
  SEC. 79.  Section 2188.6 of the Revenue and Taxation Code is
amended to read:
   2188.6.  (a) Unless a request for exemption has been recorded
pursuant to subdivision (d), prior to the creation of a condominium
as defined in Section 783 of the Civil Code, the county assessor may
separately assess each individual unit which is shown on the
condominium plan of a proposed condominium project when all of the
following documents have been recorded as required by law:
   (1) A subdivision final map or parcel map, as described in
Sections 66434 and 66445, respectively, of the Government Code.
   (2) A condominium plan, as defined in Section 4120 of the Civil
Code.
   (3) A declaration, as defined Section 4135 of the Civil Code.
   (b) The tax due on each individual unit shall constitute a lien
solely on that unit.
   (c) The lien created pursuant to this section shall be a lien on
an undivided interest in a portion of real property coupled with a
separate interest in space called a unit as described in Section 4125
of the Civil Code.
   (d) The record owner of the real property may record with the
condominium plan a request that the real property be exempt from
separate assessment pursuant to this section. If a request for
exemption is recorded, separate assessment of a
                              condominium unit shall be made only in
accordance with Section 2188.3.
   (e) This section shall become operative on January 1, 1990, and
shall apply to condominium projects for which a condominium plan is
recorded after that date.
  SEC. 80.  Section 21107.7 of the Vehicle Code is amended to read:
   21107.7.  (a) Any city or county may, by ordinance or resolution,
find and declare that there are privately owned and maintained roads
as described in the ordinance or resolution within the city or county
that are not generally held open for use of the public for purposes
of vehicular travel but, by reason of their proximity to or
connection with highways, the interests of any residents residing
along the roads and the motoring public will best be served by
application of the provisions of this code to those roads. No
ordinance or resolution shall be enacted unless there is first filed
with the city or county a petition requesting it by a majority of the
owners of any privately owned and maintained road, or by at least a
majority of the board of directors of a common interest development,
as defined by Section 4100 of the Civil Code, that is responsible for
maintaining the road, and without a public hearing thereon and 10
days' prior written notice to all owners of the road or all of the
owners in the development. Upon enactment of the ordinance or
resolution, the provisions of this code shall apply to the privately
owned and maintained road if appropriate signs are erected at the
entrance to the road of the size, shape, and color as to be readily
legible during daylight hours from a distance of 100 feet, to the
effect that the road is subject to the provisions of this code. The
city or county may impose reasonable conditions and may authorize the
owners, or board of directors of the common interest development, to
erect traffic signs, signals, markings, and devices which conform to
the uniform standards and specifications adopted by the Department
of Transportation.
   (b) The department shall not be required to provide patrol or
enforce any provisions of this code on any privately owned and
maintained road subjected to the provisions of this code under this
section, except those provisions applicable to private property other
than by action under this section.
   (c) As used in this section, "privately owned and maintained roads"
includes roads owned and maintained by a city, county, or district
that are not dedicated to use by the public or are not generally held
open for use of the public for purposes of vehicular travel.
  SEC. 81.  Section 22651 of the Vehicle Code is amended to read:
   22651.  A peace officer, as defined in Chapter 4.5 (commencing
with Section 830) of Title 3 of Part 2 of the Penal Code, or a
regularly employed and salaried employee, who is engaged in directing
traffic or enforcing parking laws and regulations, of a city,
county, or jurisdiction of a state agency in which a vehicle is
located, may remove a vehicle located within the territorial limits
in which the officer or employee may act, under the following
circumstances:
   (a) When a vehicle is left unattended upon a bridge, viaduct, or
causeway or in a tube or tunnel where the vehicle constitutes an
obstruction to traffic.
   (b) When a vehicle is parked or left standing upon a highway in a
position so as to obstruct the normal movement of traffic or in a
condition so as to create a hazard to other traffic upon the highway.

   (c) When a vehicle is found upon a highway or public land and a
report has previously been made that the vehicle is stolen or a
complaint has been filed and a warrant thereon is issued charging
that the vehicle was embezzled.
   (d) When a vehicle is illegally parked so as to block the entrance
to a private driveway and it is impractical to move the vehicle from
in front of the driveway to another point on the highway.
   (e) When a vehicle is illegally parked so as to prevent access by
firefighting equipment to a fire hydrant and it is impracticable to
move the vehicle from in front of the fire hydrant to another point
on the highway.
   (f) When a vehicle, except highway maintenance or construction
equipment, is stopped, parked, or left standing for more than four
hours upon the right-of-way of a freeway that has full control of
access and no crossings at grade and the driver, if present, cannot
move the vehicle under its own power.
   (g) When the person in charge of a vehicle upon a highway or
public land is, by reason of physical injuries or illness,
incapacitated to an extent so as to be unable to provide for its
custody or removal.
   (h) (1) When an officer arrests a person driving or in control of
a vehicle for an alleged offense and the officer is, by this code or
other law, required or permitted to take, and does take, the person
into custody.
   (2) When an officer serves a notice of an order of suspension or
revocation pursuant to Section 13388 or 13389.
   (i) (1) When a vehicle, other than a rented vehicle, is found upon
a highway or public land, or is removed pursuant to this code, and
it is known that the vehicle has been issued five or more notices of
parking violations to which the owner or person in control of the
vehicle has not responded within 21 calendar days of notice of
citation issuance or citation issuance or 14 calendar days of the
mailing of a notice of delinquent parking violation to the agency
responsible for processing notices of parking violations, or the
registered owner of the vehicle is known to have been issued five or
more notices for failure to pay or failure to appear in court for
traffic violations for which a certificate has not been issued by the
magistrate or clerk of the court hearing the case showing that the
case has been adjudicated or concerning which the registered owner's
record has not been cleared pursuant to Chapter 6 (commencing with
Section 41500) of Division 17, the vehicle may be impounded until
that person furnishes to the impounding law enforcement agency all of
the following:
   (A) Evidence of his or her identity.
   (B) An address within this state at which he or she can be
located.
   (C) Satisfactory evidence that all parking penalties due for the
vehicle and all other vehicles registered to the registered owner of
the impounded vehicle, and all traffic violations of the registered
owner, have been cleared.
   (2) The requirements in subparagraph (C) of paragraph (1) shall be
fully enforced by the impounding law enforcement agency on and after
the time that the Department of Motor Vehicles is able to provide
access to the necessary records.
   (3) A notice of parking violation issued for an unlawfully parked
vehicle shall be accompanied by a warning that repeated violations
may result in the impounding of the vehicle. In lieu of furnishing
satisfactory evidence that the full amount of parking penalties or
bail has been deposited, that person may demand to be taken without
unnecessary delay before a magistrate, for traffic offenses, or a
hearing examiner, for parking offenses, within the county in which
the offenses charged are alleged to have been committed and who has
jurisdiction of the offenses and is nearest or most accessible with
reference to the place where the vehicle is impounded. Evidence of
current registration shall be produced after a vehicle has been
impounded, or, at the discretion of the impounding law enforcement
agency, a notice to appear for violation of subdivision (a) of
Section 4000 shall be issued to that person.
   (4) A vehicle shall be released to the legal owner, as defined in
Section 370, if the legal owner does all of the following:
   (A) Pays the cost of towing and storing the vehicle.
   (B) Submits evidence of payment of fees as provided in Section
9561.
   (C) Completes an affidavit in a form acceptable to the impounding
law enforcement agency stating that the vehicle was not in possession
of the legal owner at the time of occurrence of the offenses
relating to standing or parking. A vehicle released to a legal owner
under this subdivision is a repossessed vehicle for purposes of
disposition or sale. The impounding agency shall have a lien on any
surplus that remains upon sale of the vehicle to which the registered
owner is or may be entitled, as security for the full amount of the
parking penalties for all notices of parking violations issued for
the vehicle and for all local administrative charges imposed pursuant
to Section 22850.5. The legal owner shall promptly remit to, and
deposit with, the agency responsible for processing notices of
parking violations from that surplus, on receipt of that surplus, the
full amount of the parking penalties for all notices of parking
violations issued for the vehicle and for all local administrative
charges imposed pursuant to Section 22850.5.
   (5) The impounding agency that has a lien on the surplus that
remains upon the sale of a vehicle to which a registered owner is
entitled pursuant to paragraph (4) has a deficiency claim against the
registered owner for the full amount of the parking penalties for
all notices of parking violations issued for the vehicle and for all
local administrative charges imposed pursuant to Section 22850.5,
less the amount received from the sale of the vehicle.
   (j) When a vehicle is found illegally parked and there are no
license plates or other evidence of registration displayed, the
vehicle may be impounded until the owner or person in control of the
vehicle furnishes the impounding law enforcement agency evidence of
his or her identity and an address within this state at which he or
she can be located.
   (k) When a vehicle is parked or left standing upon a highway for
72 or more consecutive hours in violation of a local ordinance
authorizing removal.
   (l) When a vehicle is illegally parked on a highway in violation
of a local ordinance forbidding standing or parking and the use of a
highway, or a portion thereof, is necessary for the cleaning, repair,
or construction of the highway, or for the installation of
underground utilities, and signs giving notice that the vehicle may
be removed are erected or placed at least 24 hours prior to the
removal by a local authority pursuant to the ordinance.
   (m) When the use of the highway, or a portion of the highway, is
authorized by a local authority for a purpose other than the normal
flow of traffic or for the movement of equipment, articles, or
structures of unusual size, and the parking of a vehicle would
prohibit or interfere with that use or movement, and signs giving
notice that the vehicle may be removed are erected or placed at least
24 hours prior to the removal by a local authority pursuant to the
ordinance.
   (n) Whenever a vehicle is parked or left standing where local
authorities, by resolution or ordinance, have prohibited parking and
have authorized the removal of vehicles. Except as provided in
subdivisions (v) and (w), a vehicle shall not be removed unless signs
are posted giving notice of the removal.
   (o) (1) When a vehicle is found or operated upon a highway, public
land, or an offstreet parking facility under the following
circumstances:
   (A) With a registration expiration date in excess of six months
before the date it is found or operated on the highway, public lands,
or the offstreet parking facility.
   (B) Displaying in, or upon, the vehicle, a registration card,
identification card, temporary receipt, license plate, special plate,
registration sticker, device issued pursuant to Section 4853, or
permit that was not issued for that vehicle, or is not otherwise
lawfully used on that vehicle under this code.
   (C) Displaying in, or upon, the vehicle, an altered, forged,
counterfeit, or falsified registration card, identification card,
temporary receipt, license plate, special plate, registration
sticker, device issued pursuant to Section 4853, or permit.
   (2) When a vehicle described in paragraph (1) is occupied, only a
peace officer, as defined in Chapter 4.5 (commencing with Section
830) of Title 3 of Part 2 of the Penal Code, may remove the vehicle.
   (3) For the purposes of this subdivision, the vehicle shall be
released under either of the following circumstances:
   (A) To the registered owner or person in control of the vehicle
only after the owner or person furnishes the storing law enforcement
agency with proof of current registration and a currently valid
driver's license to operate the vehicle.
   (B) To the legal owner or the legal owner's agency, without
payment of any fees, fines, or penalties for parking tickets or
registration and without proof of current registration, if the
vehicle will only be transported pursuant to the exemption specified
in Section 4022 and if the legal owner does all of the following:
   (i) Pays the cost of towing and storing the vehicle.
   (ii) Completes an affidavit in a form acceptable to the impounding
law enforcement agency stating that the vehicle was not in
possession of the legal owner at the time of occurrence of an offense
relating to standing or parking. A vehicle released to a legal owner
under this subdivision is a repossessed vehicle for purposes of
disposition or sale. The impounding agency has a lien on any surplus
that remains upon sale of the vehicle to which the registered owner
is or may be entitled, as security for the full amount of parking
penalties for any notices of parking violations issued for the
vehicle and for all local administrative charges imposed pursuant to
Section 22850.5. Upon receipt of any surplus, the legal owner shall
promptly remit to, and deposit with, the agency responsible for
processing notices of parking violations from that surplus, the full
amount of the parking penalties for all notices of parking violations
issued for the vehicle and for all local administrative charges
imposed pursuant to Section 22850.5.
   (4) The impounding agency that has a lien on the surplus that
remains upon the sale of a vehicle to which a registered owner is
entitled has a deficiency claim against the registered owner for the
full amount of parking penalties for any notices of parking
violations issued for the vehicle and for all local administrative
charges imposed pursuant to Section 22850.5, less the amount received
from the sale of the vehicle.
   (5) As used in this subdivision, "offstreet parking facility"
means an offstreet facility held open for use by the public for
parking vehicles and includes a publicly owned facility for offstreet
parking, and a privately owned facility for offstreet parking if a
fee is not charged for the privilege to park and it is held open for
the common public use of retail customers.
   (p) When the peace officer issues the driver of a vehicle a notice
to appear for a violation of Section 12500, 14601, 14601.1, 14601.2,
14601.3, 14601.4, 14601.5, or 14604 and the vehicle is not impounded
pursuant to Section 22655.5. A vehicle so removed from the highway
or public land, or from private property after having been on a
highway or public land, shall not be released to the registered owner
or his or her agent, except upon presentation of the registered
owner's or his or her agent's currently valid driver's license to
operate the vehicle and proof of current vehicle registration, or
upon order of a court.
   (q) When a vehicle is parked for more than 24 hours on a portion
of highway that is located within the boundaries of a common interest
development, as defined in Section 4100 of the Civil Code, and
signs, as required by paragraph (1) of subdivision (a) of Section
22658 of this code, have been posted on that portion of highway
providing notice to drivers that vehicles parked thereon for more
than 24 hours will be removed at the owner's expense, pursuant to a
resolution or ordinance adopted by the local authority.
   (r) When a vehicle is illegally parked and blocks the movement of
a legally parked vehicle.
   (s) (1) When a vehicle, except highway maintenance or construction
equipment, an authorized emergency vehicle, or a vehicle that is
properly permitted or otherwise authorized by the Department of
Transportation, is stopped, parked, or left standing for more than
eight hours within a roadside rest area or viewpoint.
   (2) Notwithstanding paragraph (1), when a commercial motor
vehicle, as defined in paragraph (1) of subdivision (b) of Section
15210, is stopped, parked, or left standing for more than 10 hours
within a roadside rest area or viewpoint.
   (3) For purposes of this subdivision, a roadside rest area or
viewpoint is a publicly maintained vehicle parking area, adjacent to
a highway, utilized for the convenient, safe stopping of a vehicle to
enable motorists to rest or to view the scenery. If two or more
roadside rest areas are located on opposite sides of the highway, or
upon the center divider, within seven miles of each other, then that
combination of rest areas is considered to be the same rest area.
   (t) When a peace officer issues a notice to appear for a violation
of Section 25279.
   (u) When a peace officer issues a citation for a violation of
Section 11700 and the vehicle is being offered for sale.
   (v) (1) When a vehicle is a mobile billboard advertising display,
as defined in Section 395.5, and is parked or left standing in
violation of a local resolution or ordinance adopted pursuant to
subdivision (m) of Section 21100, if the registered owner of the
vehicle was previously issued a warning citation for the same
offense, pursuant to paragraph (2).
   (2) Notwithstanding subdivision (a) of Section 22507, a city or
county, in lieu of posting signs noticing a local ordinance
prohibiting mobile billboard advertising displays adopted pursuant to
subdivision (m) of Section 21100, may provide notice by issuing a
warning citation advising the registered owner of the vehicle that he
or she may be subject to penalties upon a subsequent violation of
the ordinance, that may include the removal of the vehicle as
provided in paragraph (1). A city or county is not required to
provide further notice for a subsequent violation prior to the
enforcement of penalties for a violation of the ordinance.
   (w) (1) When a vehicle is parked or left standing in violation of
a local ordinance or resolution adopted pursuant to subdivision (p)
of Section 21100, if the registered owner of the vehicle was
previously issued a warning citation for the same offense, pursuant
to paragraph (2).
   (2) Notwithstanding subdivision (a) of Section 22507, a city or
county, in lieu of posting signs noticing a local ordinance
regulating advertising signs adopted pursuant to subdivision (p) of
Section 21100, may provide notice by issuing a warning citation
advising the registered owner of the vehicle that he or she may be
subject to penalties upon a subsequent violation of the ordinance
that may include the removal of the vehicle as provided in paragraph
(1). A city or county is not required to provide further notice for a
subsequent violation prior to the enforcement of penalties for a
violation of the ordinance.
  SEC. 82.  Section 22651.05 of the Vehicle Code is amended to read:
   22651.05.  (a) A trained volunteer of a state or local law
enforcement agency, who is engaged in directing traffic or enforcing
parking laws and regulations, of a city, county, or jurisdiction of a
state agency in which a vehicle is located, may remove or authorize
the removal of a vehicle located within the territorial limits in
which an officer or employee of that agency may act, under any of the
following circumstances:
   (1) When a vehicle is parked or left standing upon a highway for
72 or more consecutive hours in violation of a local ordinance
authorizing the removal.
   (2) When a vehicle is illegally parked or left standing on a
highway in violation of a local ordinance forbidding standing or
parking and the use of a highway, or a portion thereof, is necessary
for the cleaning, repair, or construction of the highway, or for the
installation of underground utilities, and signs giving notice that
the vehicle may be removed are erected or placed at least 24 hours
prior to the removal by local authorities pursuant to the ordinance.
   (3) Wherever the use of the highway, or a portion thereof, is
authorized by local authorities for a purpose other than the normal
flow of traffic or for the movement of equipment, articles, or
structures of unusual size, and the parking of a vehicle would
prohibit or interfere with that use or movement, and signs giving
notice that the vehicle may be removed are erected or placed at least
24 hours prior to the removal by local authorities pursuant to the
ordinance.
   (4) Whenever a vehicle is parked or left standing where local
authorities, by resolution or ordinance, have prohibited parking and
have authorized the removal of vehicles. A vehicle may not be removed
unless signs are posted giving notice of the removal.
   (5) Whenever a vehicle is parked for more than 24 hours on a
portion of highway that is located within the boundaries of a common
interest development, as defined in Section 4100 of the Civil Code,
and signs, as required by Section 22658.2, have been posted on that
portion of highway providing notice to drivers that vehicles parked
thereon for more than 24 hours will be removed at the owner's
expense, pursuant to a resolution or ordinance adopted by the local
authority.
   (b) The provisions of this chapter that apply to a vehicle removed
pursuant to Section 22651 apply to a vehicle removed pursuant to
subdivision (a).
   (c) For purposes of subdivision (a), a "trained volunteer" is a
person who, of his or her own free will, provides services, without
any financial gain, to a local or state law enforcement agency, and
who is duly trained and certified to remove a vehicle by a local or
state law enforcement agency.
  SEC. 83.  Section 22658 of the Vehicle Code is amended to read:
   22658.  (a) The owner or person in lawful possession of private
property, including an association of a common interest development
as defined in Sections 4080 and 4100 of the Civil Code, may cause the
removal of a vehicle parked on the property to a storage facility
that meets the requirements of subdivision (n) under any of the
following circumstances:
   (1) There is displayed, in plain view at all entrances to the
property, a sign not less than 17 inches by 22 inches in size, with
lettering not less than one inch in height, prohibiting public
parking and indicating that vehicles will be removed at the owner's
expense, and containing the telephone number of the local traffic law
enforcement agency and the name and telephone number of each towing
company that is a party to a written general towing authorization
agreement with the owner or person in lawful possession of the
property. The sign may also indicate that a citation may also be
issued for the violation.
   (2) The vehicle has been issued a notice of parking violation, and
96 hours have elapsed since the issuance of that notice.
   (3) The vehicle is on private property and lacks an engine,
transmission, wheels, tires, doors, windshield, or any other major
part or equipment necessary to operate safely on the highways, the
owner or person in lawful possession of the private property has
notified the local traffic law enforcement agency, and 24 hours have
elapsed since that notification.
   (4) The lot or parcel upon which the vehicle is parked is improved
with a single-family dwelling.
   (b) The tow truck operator removing the vehicle, if the operator
knows or is able to ascertain from the property owner, person in
lawful possession of the property, or the registration records of the
Department of Motor Vehicles the name and address of the registered
and legal owner of the vehicle, shall immediately give, or cause to
be given, notice in writing to the registered and legal owner of the
fact of the removal, the grounds for the removal, and indicate the
place to which the vehicle has been removed. If the vehicle is stored
in a storage facility, a copy of the notice shall be given to the
proprietor of the storage facility. The notice provided for in this
section shall include the amount of mileage on the vehicle at the
time of removal and the time of the removal from the property. If the
tow truck operator does not know and is not able to ascertain the
name of the owner or for any other reason is unable to give the
notice to the owner as provided in this section, the tow truck
operator shall comply with the requirements of subdivision (c) of
Section 22853 relating to notice in the same manner as applicable to
an officer removing a vehicle from private property.
   (c) This section does not limit or affect any right or remedy that
the owner or person in lawful possession of private property may
have by virtue of other provisions of law authorizing the removal of
a vehicle parked upon private property.
   (d) The owner of a vehicle removed from private property pursuant
to subdivision (a) may recover for any damage to the vehicle
resulting from any intentional or negligent act of a person causing
the removal of, or removing, the vehicle.
   (e) (1) An owner or person in lawful possession of private
property, or an association of a common interest development, causing
the removal of a vehicle parked on that property is liable for
double the storage or towing charges whenever there has been a
failure to comply with paragraph (1), (2), or (3) of subdivision (a)
or to state the grounds for the removal of the vehicle if requested
by the legal or registered owner of the vehicle as required by
subdivision (f).
   (2) A property owner or owner's agent or lessee who causes the
removal of a vehicle parked on that property pursuant to the
exemption set forth in subparagraph (A) of paragraph (1) of
subdivision (  l  ) and fails to comply with that
subdivision is guilty of an infraction, punishable by a fine of one
thousand dollars ($1,000).
   (f) An owner or person in lawful possession of private property,
or an association of a common interest development, causing the
removal of a vehicle parked on that property shall notify by
telephone or, if impractical, by the most expeditious means
available, the local traffic law enforcement agency within one hour
after authorizing the tow. An owner or person in lawful possession of
private property, an association of a common interest development,
causing the removal of a vehicle parked on that property, or the tow
truck operator who removes the vehicle, shall state the grounds for
the removal of the vehicle if requested by the legal or registered
owner of that vehicle. A towing company that removes a vehicle from
private property in compliance with subdivision (  l  ) is
not responsible in a situation relating to the validity of the
removal. A towing company
          that removes the vehicle under this section shall be
responsible for the following:
   (1) Damage to the vehicle in the transit and subsequent storage of
the vehicle.
   (2) The removal of a vehicle other than the vehicle specified by
the owner or other person in lawful possession of the private
property.
   (g) (1) (A) Possession of a vehicle under this section shall be
deemed to arise when a vehicle is removed from private property and
is in transit.
   (B) Upon the request of the owner of the vehicle or that owner's
agent, the towing company or its driver shall immediately and
unconditionally release a vehicle that is not yet removed from the
private property and in transit.
   (C) A person failing to comply with subparagraph (B) is guilty of
a misdemeanor.
   (2) If a vehicle is released to a person in compliance with
subparagraph (B) of paragraph (1), the vehicle owner or authorized
agent shall immediately move that vehicle to a lawful location.
   (h) A towing company may impose a charge of not more than one-half
of the regular towing charge for the towing of a vehicle at the
request of the owner, the owner's agent, or the person in lawful
possession of the private property pursuant to this section if the
owner of the vehicle or the vehicle owner's agent returns to the
vehicle after the vehicle is coupled to the tow truck by means of a
regular hitch, coupling device, drawbar, portable dolly, or is lifted
off the ground by means of a conventional trailer, and before it is
removed from the private property. The regular towing charge may only
be imposed after the vehicle has been removed from the property and
is in transit.
   (i) (1) (A) A charge for towing or storage, or both, of a vehicle
under this section is excessive if the charge exceeds the greater of
the following:
   (i) That which would have been charged for that towing or storage,
or both, made at the request of a law enforcement agency under an
agreement between a towing company and the law enforcement agency
that exercises primary jurisdiction in the city in which is located
the private property from which the vehicle was, or was attempted to
be, removed, or if the private property is not located within a city,
then the law enforcement agency that exercises primary jurisdiction
in the county in which the private property is located.
   (ii) That which would have been charged for that towing or
storage, or both, under the rate approved for that towing operator by
the Department of the California Highway Patrol for the jurisdiction
in which the private property is located and from which the vehicle
was, or was attempted to be, removed.
   (B) A towing operator shall make available for inspection and
copying his or her rate approved by the California Highway Patrol, if
any, within 24 hours of a request without a warrant to law
enforcement, the Attorney General, district attorney, or city
attorney.
   (2) If a vehicle is released within 24 hours from the time the
vehicle is brought into the storage facility, regardless of the
calendar date, the storage charge shall be for only one day. Not more
than one day's storage charge may be required for a vehicle released
the same day that it is stored.
   (3) If a request to release a vehicle is made and the appropriate
fees are tendered and documentation establishing that the person
requesting release is entitled to possession of the vehicle, or is
the owner's insurance representative, is presented within the initial
24 hours of storage, and the storage facility fails to comply with
the request to release the vehicle or is not open for business during
normal business hours, then only one day's storage charge may be
required to be paid until after the first business day. A business
day is any day in which the lienholder is open for business to the
public for at least eight hours. If a request is made more than 24
hours after the vehicle is placed in storage, charges may be imposed
on a full calendar day basis for each day, or part thereof, that the
vehicle is in storage.
   (j) (1) A person who charges a vehicle owner a towing, service, or
storage charge at an excessive rate, as described in subdivision (h)
or (i), is civilly liable to the vehicle owner for four times the
amount charged.
   (2) A person who knowingly charges a vehicle owner a towing,
service, or storage charge at an excessive rate, as described in
subdivision (h) or (i), or who fails to make available his or her
rate as required in subparagraph (B) of paragraph (1) of subdivision
(i), is guilty of a misdemeanor, punishable by a fine of not more
than two thousand five hundred dollars ($2,500), or by imprisonment
in the county jail for not more than three months, or by both that
fine and imprisonment.
   (k) (1) A person operating or in charge of a storage facility
where vehicles are stored pursuant to this section shall accept a
valid bank credit card or cash for payment of towing and storage by a
registered owner, the legal owner, or the owner's agent claiming the
vehicle. A credit card shall be in the name of the person presenting
the card. "Credit card" means "credit card" as defined in
subdivision (a) of Section 1747.02 of the Civil Code, except, for the
purposes of this section, credit card does not include a credit card
issued by a retail seller.
   (2) A person described in paragraph (1) shall conspicuously
display, in that portion of the storage facility office where
business is conducted with the public, a notice advising that all
valid credit cards and cash are acceptable means of payment.
   (3) A person operating or in charge of a storage facility who
refuses to accept a valid credit card or who fails to post the
required notice under paragraph (2) is guilty of a misdemeanor,
punishable by a fine of not more than two thousand five hundred
dollars ($2,500), or by imprisonment in the county jail for not more
than three months, or by both that fine and imprisonment.
   (4) A person described in paragraph (1) who violates paragraph (1)
or (2) is civilly liable to the registered owner of the vehicle or
the person who tendered the fees for four times the amount of the
towing and storage charges.
   (5) A person operating or in charge of the storage facility shall
have sufficient moneys on the premises of the primary storage
facility during normal business hours to accommodate, and make change
in, a reasonable monetary transaction.
   (6) Credit charges for towing and storage services shall comply
with Section 1748.1 of the Civil Code. Law enforcement agencies may
include the costs of providing for payment by credit when making
agreements with towing companies as described in subdivision (i).
   (  l  ) (1) (A) A towing company shall not remove or
commence the removal of a vehicle from private property without first
obtaining the written authorization from the property owner or
lessee, including an association of a common interest development, or
an employee or agent thereof, who shall be present at the time of
removal and verify the alleged violation, except that presence and
verification is not required if the person authorizing the tow is the
property owner, or the owner's agent who is not a tow operator, of a
residential rental property of 15 or fewer units that does not have
an onsite owner, owner's agent or employee, and the tenant has
verified the violation, requested the tow from that tenant's assigned
parking space, and provided a signed request or electronic mail, or
has called and provides a signed request or electronic mail within 24
hours, to the property owner or owner's agent, which the owner or
agent shall provide to the towing company within 48 hours of
authorizing the tow. The signed request or electronic mail shall
contain the name and address of the tenant, and the date and time the
tenant requested the tow. A towing company shall obtain, within 48
hours of receiving the written authorization to tow, a copy of a
tenant request required pursuant to this subparagraph. For the
purpose of this subparagraph, a person providing the written
authorization who is required to be present on the private property
at the time of the tow does not have to be physically present at the
specified location of where the vehicle to be removed is located on
the private property.
   (B) The written authorization under subparagraph (A) shall include
all of the following:
   (i) The make, model, vehicle identification number, and license
plate number of the removed vehicle.
   (ii) The name, signature, job title, residential or business
address, and working telephone number of the person, described in
subparagraph (A), authorizing the removal of the vehicle.
   (iii) The grounds for the removal of the vehicle.
   (iv) The time when the vehicle was first observed parked at the
private property.
   (v) The time that authorization to tow the vehicle was given.
   (C) (i) When the vehicle owner or his or her agent claims the
vehicle, the towing company prior to payment of a towing or storage
charge shall provide a photocopy of the written authorization to the
vehicle owner or the agent.
   (ii) If the vehicle was towed from a residential property, the
towing company shall redact the information specified in clause (ii)
of subparagraph (B) in the photocopy of the written authorization
provided to the vehicle owner or the agent pursuant to clause (i).
   (iii) The towing company shall also provide to the vehicle owner
or the agent a separate notice that provides the telephone number of
the appropriate local law enforcement or prosecuting agency by
stating "If you believe that you have been wrongfully towed, please
contact the local law enforcement or prosecuting agency at insert
appropriate telephone number]." The notice shall be in English and in
the most populous language, other than English, that is spoken in
the jurisdiction.
   (D) A towing company shall not remove or commence the removal of a
vehicle from private property described in subdivision (a) of
Section 22953 unless the towing company has made a good faith inquiry
to determine that the owner or the property owner's agent complied
with Section 22953.
   (E) (i) General authorization to remove or commence removal of a
vehicle at the towing company's discretion shall not be delegated to
a towing company or its affiliates except in the case of a vehicle
unlawfully parked within 15 feet of a fire hydrant or in a fire lane,
or in a manner which interferes with an entrance to, or exit from,
the private property.
   (ii) In those cases in which general authorization is granted to a
towing company or its affiliate to undertake the removal or commence
the removal of a vehicle that is unlawfully parked within 15 feet of
a fire hydrant or in a fire lane, or that interferes with an
entrance to, or exit from, private property, the towing company and
the property owner, or owner's agent, or person in lawful possession
of the private property shall have a written agreement granting that
general authorization.
   (2) If a towing company removes a vehicle under a general
authorization described in subparagraph (E) of paragraph (1) and that
vehicle is unlawfully parked within 15 feet of a fire hydrant or in
a fire lane, or in a manner that interferes with an entrance to, or
exit from, the private property, the towing company shall take, prior
to the removal of that vehicle, a photograph of the vehicle that
clearly indicates that parking violation. Prior to accepting payment,
the towing company shall keep one copy of the photograph taken
pursuant to this paragraph, and shall present that photograph and
provide, without charge, a photocopy to the owner or an agent of the
owner, when that person claims the vehicle.
   (3) A towing company shall maintain the original written
authorization, or the general authorization described in subparagraph
(E) of paragraph (1) and the photograph of the violation, required
pursuant to this section, and any written requests from a tenant to
the property owner or owner's agent required by subparagraph (A) of
paragraph (1), for a period of three years and shall make them
available for inspection and copying within 24 hours of a request
without a warrant to law enforcement, the Attorney General, district
attorney, or city attorney.
   (4) A person who violates this subdivision is guilty of a
misdemeanor, punishable by a fine of not more than two thousand five
hundred dollars ($2,500), or by imprisonment in the county jail for
not more than three months, or by both that fine and imprisonment.
   (5) A person who violates this subdivision is civilly liable to
the owner of the vehicle or his or her agent for four times the
amount of the towing and storage charges.
   (m) (1) A towing company that removes a vehicle from private
property under this section shall notify the local law enforcement
agency of that tow after the vehicle is removed from the private
property and is in transit.
   (2) A towing company is guilty of a misdemeanor if the towing
company fails to provide the notification required under paragraph
(1) within 60 minutes after the vehicle is removed from the private
property and is in transit or 15 minutes after arriving at the
storage facility, whichever time is less.
   (3) A towing company that does not provide the notification under
paragraph (1) within 30 minutes after the vehicle is removed from the
private property and is in transit is civilly liable to the
registered owner of the vehicle, or the person who tenders the fees,
for three times the amount of the towing and storage charges.
   (4) If notification is impracticable, the times for notification,
as required pursuant to paragraphs (2) and (3), shall be tolled for
the time period that notification is impracticable. This paragraph is
an affirmative defense.
   (n) A vehicle removed from private property pursuant to this
section shall be stored in a facility that meets all of the following
requirements:
   (1) (A) Is located within a 10-mile radius of the property from
where the vehicle was removed.
   (B) The 10-mile radius requirement of subparagraph (A) does not
apply if a towing company has prior general written approval from the
law enforcement agency that exercises primary jurisdiction in the
city in which is located the private property from which the vehicle
was removed, or if the private property is not located within a city,
then the law enforcement agency that exercises primary jurisdiction
in the county in which is located the private property.
   (2) (A) Remains open during normal business hours and releases
vehicles after normal business hours.
   (B) A gate fee may be charged for releasing a vehicle after normal
business hours, weekends, and state holidays. However, the maximum
hourly charge for releasing a vehicle after normal business hours
shall be one-half of the hourly tow rate charged for initially towing
the vehicle, or less.
   (C) Notwithstanding any other provision of law and for purposes of
this paragraph, "normal business hours" are Monday to Friday,
inclusive, from 8 a.m. to 5 p.m., inclusive, except state holidays.
   (3) Has a public pay telephone in the office area that is open and
accessible to the public.
   (o) (1) It is the intent of the Legislature in the adoption of
subdivision (k) to assist vehicle owners or their agents by, among
other things, allowing payment by credit cards for towing and storage
services, thereby expediting the recovery of towed vehicles and
concurrently promoting the safety and welfare of the public.
   (2) It is the intent of the Legislature in the adoption of
subdivision (l) to further the safety of the general public by
ensuring that a private property owner or lessee has provided his or
her authorization for the removal of a vehicle from his or her
property, thereby promoting the safety of those persons involved in
ordering the removal of the vehicle as well as those persons
removing, towing, and storing the vehicle.
   (3) It is the intent of the Legislature in the adoption of
subdivision (g) to promote the safety of the general public by
requiring towing companies to unconditionally release a vehicle that
is not lawfully in their possession, thereby avoiding the likelihood
of dangerous and violent confrontation and physical injury to vehicle
owners and towing operators, the stranding of vehicle owners and
their passengers at a dangerous time and location, and impeding
expedited vehicle recovery, without wasting law enforcement's limited
resources.
   (p) The remedies, sanctions, restrictions, and procedures provided
in this section are not exclusive and are in addition to other
remedies, sanctions, restrictions, or procedures that may be provided
in other provisions of law, including, but not limited to, those
that are provided in Sections 12110 and 34660.
   (q) A vehicle removed and stored pursuant to this section shall be
released by the law enforcement agency, impounding agency, or person
in possession of the vehicle, or any person acting on behalf of
them, to the legal owner or the legal owner's agent upon presentation
of the assignment, as defined in subdivision (b) of Section 7500.1
of the Business and Professions Code; a release from the one
responsible governmental agency, only if required by the agency; a
government-issued photographic identification card; and any one of
the following as determined by the legal owner or the legal owner's
agent: a certificate of repossession for the vehicle, a security
agreement for the vehicle, or title, whether paper or electronic,
showing proof of legal ownership for the vehicle. Any documents
presented may be originals, photocopies, or facsimile copies, or may
be transmitted electronically. The storage facility shall not require
any documents to be notarized. The storage facility may require the
agent of the legal owner to produce a photocopy or facsimile copy of
its repossession agency license or registration issued pursuant to
Chapter 11 (commencing with Section 7500) of Division 3 of the
Business and Professions Code, or to demonstrate, to the satisfaction
of the storage facility, that the agent is exempt from licensure
pursuant to Section 7500.2 or 7500.3 of the Business and Professions
Code.
  SEC. 84.  Section 13553 of the Water Code is amended to read:
   13553.  (a) The Legislature hereby finds and declares that the use
of potable domestic water for toilet and urinal flushing in
structures is a waste or an unreasonable use of water within the
meaning of Section 2 of Article X of the California Constitution if
recycled water, for these uses, is available to the user and meets
the requirements set forth in Section 13550, as determined by the
state board after notice and a hearing.
   (b) The state board may require a public agency or person subject
to this section to furnish any information that may be relevant to
making the determination required in subdivision (a).
   (c) For purposes of this section and Section 13554, "structure" or
"structures" means commercial, retail, and office buildings,
theaters, auditoriums, condominium projects, schools, hotels,
apartments, barracks, dormitories, jails, prisons, and reformatories,
and other structures as determined by the State Department of Public
Health.
   (d) Recycled water may be used in condominium projects, as defined
in Section 4125 of the Civil Code, subject to all of the following
conditions:
   (1) Prior to the indoor use of recycled water in any condominium
project, the agency delivering the recycled water to the condominium
project shall file a report with, and receive written approval of the
report from, the State Department of Public Health. The report shall
be consistent with the provisions of Title 22 of the California Code
of Regulations generally applicable to dual-plumbed structures and
shall include all the following:
   (A) That potable water service to each condominium project will be
provided with a backflow protection device approved by the State
Department of Public Health to protect the agency's public water
system, as defined in Section 116275 of the Health and Safety Code.
The backflow protection device approved by the State Department of
Public Health shall be inspected and tested annually by a person
certified in the inspection of backflow prevention devices.
   (B) That any plumbing modifications in the condominium unit or any
physical alteration of the structure will be done in compliance with
state and local plumbing codes.
   (C) That each condominium project will be tested by the recycled
water agency or the responsible local agency at least once every four
years to ensure that there are no indications of a possible cross
connection between the condominium's potable and nonpotable systems.
   (D) That recycled water lines will be color coded consistent with
current statutes and regulations.
   (2) The recycled water agency or the responsible local agency
shall maintain records of all tests and annual inspections conducted.

   (3) The condominium's declaration, as defined in Section 4135 of
the Civil Code, shall provide that the laws and regulations governing
recycled water apply, shall not permit any exceptions to those laws
and regulations, shall incorporate the report described in paragraph
(1), and shall contain the following statement:

   "NOTICE OF USE OF RECYCLED WATER

This property is approved by the State Department of Public Health
for the use of recycled water for toilet and urinal flushing. This
water is not potable, is not suitable for indoor purposes other than
toilet and urinal flushing purposes, and requires dual plumbing.
Alterations and modifications to the plumbing system require a permit
and are prohibited without first consulting with the appropriate
local building code enforcement agency and your property management
company or homeowners' association to ensure that the recycled water
is not mixed with the drinking water."

   (e) The State Department of Public Health may adopt regulations as
necessary to assist in the implementation of this section.
   (f) This section shall only apply to condominium projects that are
created, within the meaning of Section 4030 of the Civil Code, on or
after January 1, 2008.
   (g) This section and Section 13554 do not apply to a pilot program
adopted pursuant to Section 13553.1.
  SEC. 85.  Any section of any act enacted by the Legislature during
the 2012 calendar year, other than a section of the annual
maintenance of the codes bill or another bill with a subordination
clause, that takes effect on or before January 1, 2013, and that
amends, amends and renumbers, amends and repeals, adds, repeals and
adds, or repeals a section that is amended, amended and renumbered,
amended and repealed, added, repealed and added, or repealed by this
act, shall prevail over this act, whether that act is chaptered
before or after this act.
  SEC. 86.  This act shall become operative on January 1, 2014, but
only if Assembly Bill 805 of the 2011-12 Regular Session becomes
operative on or before January 1, 2014.