BILL ANALYSIS Ó
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: ab 806
SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: tORRES
VERSION: 1/4/12
Analysis by: Mark Stivers FISCAL: no
Hearing date: January 10, 2012
SUBJECT:
Reorganization of the Davis-Stirling Common Interest Development
Act
DESCRIPTION:
This bill corrects the various statutory cross-references to the
Davis-Stirling Common Interest Development Act that are affected
by the reorganization of the act proposed in AB 805.
ANALYSIS:
A common interest development (CID) is a form of real estate in
which each homeowner has an exclusive interest in a unit or lot
and a shared or undivided interest in common area property.
Condominiums, planned unit developments, stock cooperatives,
community apartments, and many resident-owned mobilehome parks
all fall under the CID umbrella. A homeowner association board
elected by the members governs each CID. The covenants,
conditions, and restrictions (CC&Rs) that are recorded against
each individual unit bind the members of the CID. In addition,
associations adopt articles of incorporation, articles of
association, and bylaws for the governance of the CID as well as
operating rules that govern the behavior of members and their
guests. Collectively, these documents are referred to as the
governing documents of the association.
First enacted in 1985 and amended numerous times since, the
Davis-Stirling Common Interest Development Act governs CIDs.
The act contains provisions that, among other things, regulate
the creation and amendment of CIDs and their governing documents
as well as elections, meetings, assessments, collections, fiscal
matters, and dispute resolution.
This bill corrects the various statutory cross-references to the
Davis-Stirling Common Interest Development Act that are affected
by the reorganization of the act proposed in AB 805.
AB 806 (TORRES) Page 2
COMMENTS:
1.Purpose of the bill . Based on the recommendation of the
California Law Revision Commission, AB 805 reorganizes the
Davis-Stirling Act in order to make the law as understandable
and easy to use as possible. In the event AB 805 is enacted,
this bill is a necessary companion measure to update the
numerous cross-references to the act found in other areas of
existing law.
2.Contingent enactment . According to its own provisions, this
bill will only take effect if the Governor signs AB 805 into
law.
3.One year deferral . Like AB 805, this bill defers its own
operative date by one year to January 1, 2014 in order to give
affected persons and organizations time to adjust to the new
organization of the law.
4.Double referral . The Rules Committee has referred this bill
to both this committee and the Judiciary Committee.
Assembly Votes:
Floor: 73-0
Judic: 9-0
H&CD: 7-0
RELATED LEGISLATION:
AB 805 (Torres) moves, reorganizes, and harmonizes the
provisions of the Davis-Stirling Common Interest Development
Act. The committee will also hear AB 805 at the January 10
hearing.
POSITIONS: (Communicated to the committee before noon on
Wednesday, January
4, 2012)
SUPPORT: California Law Revision Commission (sponsor)
Community Association Institute
OPPOSED: None received.
AB 806 (TORRES) Page 3