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or easy to use, the California Law Revision Commission (CLRC) recommended that the existing Davis-Stirling Act be repealed and replaced with a revised version that would continue the substance of existing law in a more logical and user-friendly form.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 (more) AB 806 (Torres) Page 2 of ? 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 AB 806 (Torres) Page 3 of ? 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. AB 806 (Torres) Page 4 of ? 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) **************