BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 806| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 806 Author: Torres (D) Amended: 1/4/12 in Senate Vote: 21 SENATE TRANSPORTATION & HOUSING COMM. : 9-0, 1/10/12 AYES: DeSaulnier, Gaines, Harman, Huff, Kehoe, Lowenthal, Pavley, Rubio, Simitian SENATE JUDICIARY COMMITTEE : 5-0, 6/19/12 AYES: Evans, Harman, Blakeslee, Corbett, Leno ASSEMBLY FLOOR : 73-0, 5/2/11 (Consent) - See last page for vote SUBJECT : Common interest developments SOURCE : California Law Revision Commission DIGEST : This bill makes 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). ANALYSIS : 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. (Civil Code Section 1350 et seq.) CONTINUED AB 806 Page 2 This bill, operative January 1, 2014, makes technical and conforming changes to reflect the reorganization and recodification of the Davis-Stirling Common Interest Development Act proposed by AB 805. Background In California, 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or easy to use, the California Law Revision Commission (CLRC) recommended that the existing Davis-Stirling Act be repealed and replaced with a revised version that would continue the substance of existing law in a more logical and user-friendly form.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 revises and recasts the Davis-Stirling Act and makes noncontroversial substantive changes to its text, this bill makes the technical and conforming changes to other statutes necessary to correct cross-references that are affected by the proposed reorganization. Contingent language . This bill becomes operative on January 1, 2014, only if AB 805 becomes operative on or before that date. That contingent enactment language ensures that the proposed changes to cross-references in other statutes will not go into effect unless the companion bill, AB 805, also goes into effect. Furthermore, this bill includes a subordination clause to ensure that any other bill chaptered this year that does not also have a subordination clause is not chaptered out AB 806 Page 3 by the technical changes proposed by this bill. Related legislation . AB 805 (Torres) is on the Senate Third Reading File. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 6/21/12) California Law Revision Commission (source) Executive Council of Homeowners ARGUMENTS IN SUPPORT : 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." ASSEMBLY FLOOR : 73-0, 5/02/11 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Campos, Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, Donnelly, Eng, Feuer, Fletcher, Fong, Furutani, Garrick, Gatto, Gordon, Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Hill, Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Miller, Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Charles Calderon, Fuentes, Galgiani, Gorell, Roger Hernández, Mendoza, Vacancy RJG:m 6/21/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE AB 806 Page 4 **** END ****