BILL ANALYSIS                                                                                                                                                                                                    Ó






                             SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2011-2012 Regular Session


          AB 806 (Torres)
          As Amended January 4, 2012
          Hearing Date: June 19, 2012
          Fiscal: No
          Urgency: No
          BCP:rm
                    

                                        SUBJECT
                                           
                            Common Interest Developments

                                      DESCRIPTION  

          This bill would make technical and conforming corrections of 
          cross-references to the Davis-Stirling Common Interest 
          Development Act, which is proposed to be revised and recast by 
          AB 805 (Torres, 2012).

                                      BACKGROUND  

          In California, common interest developments (CIDs) are governed 
          by the Davis-Stirling Common Interest Development Act 
          (Davis-Stirling Act).  Owners of separate property in CIDs have 
          an undivided interest in the common property of the development 
          and are subject to the CIDs covenants, conditions and 
          restrictions.  CIDs are also governed by a homeowners 
          association, which is run by volunteer directors that may or may 
          not have prior experience managing an association.  

          In response to concerns that the Davis-Stirling Act is not well 
          organized or easy to use, the California Law Revision Commission 
          (CLRC) recommended that the existing Davis-Stirling Act be 
          repealed and replaced with a revised version that would continue 
          the substance of existing law in a more logical and 
          user-friendly form.  CLRC's original recommendation for 
          recodification was introduced in 2008, but was held in the 
          Senate Transportation and Housing Committee.  The CLRC revisited 
          the issue and formulated a subsequent recommendation, which was 
          introduced in this bill and AB 805 (Torres, 2012).  While AB 805 
          would revise and recast the Davis-Stirling Act and make 
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          noncontroversial substantive changes to its text, this bill 
          would make the technical and conforming changes to other 
          statutes necessary to correct cross-references that are affected 
          by the proposed reorganization.



                                CHANGES TO EXISTING LAW
           
           Existing law  , the Davis-Stirling Common Interest Development 
          Act, establishes the rules and regulations governing the 
          operation of a common interest development (CID) and the 
          respective rights and duties of a homeowners association and its 
          members.  (Civ. Code Sec. 1350 et seq.)

           This bill  , operative January 1, 2014, would make technical and 
          conforming changes to reflect the reorganization and 
          recodification of the Davis-Stirling Common Interest Development 
          Act proposed by AB 805.


                                        COMMENT
           
          1.   Stated need for the bill  

          According to the author:

            AB 806 (Torres) is a companion bill to AB 805. AB 806 makes 
            the technical and conforming changes . . . needed so that 
            all cross-references to the Davis-Stirling Common Interest 
            Development Act Ý(Davis-Stirling Act)] are consistent with 
            the comprehensive reorganization and recodification of that 
            Act, as proposed by AB 805. AB 806 is contingent upon the 
            enactment of AB 805.   

          2.   History of proposed revision  

          As noted above, this bill would make the technical and 
          conforming changes to cross-references that are necessary to 
          implement the comprehensive revision of the Davis-Stirling Act 
          proposed by AB 805.  Staff notes that the substance of both 
          bills have been the subject of extensive public vetting since 
          the California Law Revision's (CLRC) pre-print recommendation 
          was issued in December of 2007, and have no known opposition.  
          The original pre-print recommendation was introduced in the form 
          of AB 1921 (Saldana) on February 8, 2008, but was held in the 
                                                                      



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          Senate Transportation & Housing Committee.  The CLRC issued 
          their final recommendation for the "Statutory Clarification and 
          Simplification of CID Law" in February of 2011, and, AB 806 was 
          introduced on February 17, 2011.  Thus, these bills reflect the 
          culmination of over six years of review by the CLRC, public 
          hearings, and extensive discussions with stakeholders.  

          3.   Contingent language  

          This bill would become operative on January 1, 2014 only if AB 
          805 becomes operative on or before that date.  That contingent 
          enactment language would ensure that the proposed changes to 
          cross-references in other statutes would not go into effect 
          unless the companion bill, AB 805, also goes into effect.
































                                                                      



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          Furthermore, this bill would include a subordination clause to 
          ensure that any other bill chaptered this year that does not 
          also have a subordination clause is not chaptered out by the 
          technical changes proposed by this bill.


           Support  :  Executive Council of Homeowners 

           Opposition  :  None Known

                                        HISTORY
           
           Source  :  California Law Revision Commission

           Related Pending Legislation  :

          AB 805 (Torres) See Background.

           Prior Legislation  : AB 1921 (Saldana, 2008) See Comment 2.

           Prior Vote  :

          Assembly Housing & Community Development Committee (Ayes 7, Noes 
          0)
          Assembly Judiciary Committee (Ayes 9, Noes 0)
          Assembly Floor (Ayes 73, Noes 0)
          Senate Transportation & Housing Committee (Ayes 9, Noes 0)

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