BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 110|
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THIRD READING
Bill No: SB 110
Author: Rubio (D)
Amended: 5/2/11
Vote: 21
SENATE JUDICIARY COMMITTEE : 5-0, 5/10/11
AYES: Evans, Harman, Blakeslee, Corbett, Leno
SUBJECT : Real property disclosures: mining operations
SOURCE : California Construction and Industrial
Materials Association
DIGEST : This bill requires expert reports used to
fulfill natural hazard disclosure requirements in
residential property sales to include a "Notice of Mining
Operations" if the property is within 1,000 feet of
specified mining operations.
ANALYSIS : Existing law requires a real property seller,
or the seller's agent, to disclose to buyers any material
facts that would have a significant and measurable effect
on the value or desirability of the property (if the buyer
does not know, and would not reasonably discover, those
facts). ( Karoutas v. Homefed Bank (1991) 232 Cal.App.3d
767; Reed v. King (1983) 145 Cal.App.3d 261)
Existing law requires a seller's real estate broker to
conduct a reasonably competent and diligent visual
inspection of a property offered for sale, and to disclose
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to potential buyers any facts revealed that would
materially affect the value or desirability of the
property. (Civil Code Section 2079)
Existing law requires a seller of real property to make the
following disclosures, among others, if the seller has
actual knowledge of the information disclosed:
Environmentally hazardous substances, materials, or
products are on the property. (Civil Code Section
1102.6)
The property is either adjacent to an industrial use or
affected by a nuisance created by such a use. (Civil
Code Section 1102.17)
Existing law requires a seller, or the seller's agent in
certain cases, to disclose to a buyer when a property is in
a specified natural hazard zone. (Civil Code Section
1103.2.) Such disclosures are necessary (1) if the seller
or agent has actual knowledge; (2) in some cases, if the
local jurisdiction has compiled a list, by parcel, of
properties within the zone; or (3) in other cases, if the
local jurisdiction has posted a map that includes the
property. (Civil Code Section 1103)
Existing law permits a seller to use an expert report or
opinion from an engineer, land surveyor, geologist, or
expert in natural hazard discovery to fulfill his/her
natural hazard notification requirements. (Civil Code
Section 1103.4)
This bill requires an expert who produces a natural hazard
disclosure report to determine whether the property is
located within 1,000 feet of a parcel of real property
subject to mine operations identified in a Notice of
Reclamation Plan Approval, as specified. If the
residential property is within 1,000 feet, the report shall
contain the following notice:
NOTICE OF MINING OPERATIONS
This property is located within 1000 feet of a mine
operation that has been identified in a Notice of
Reclamation Plan Approval recorded with the county
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recorder pursuant to Section 2772.7 of the Public
Resources Code. Accordingly, the property may be subject
to inconveniences resulting from mining operations. You
may wish to consider the impacts of these practices
before you complete your transaction.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 5/11/11)
California Construction and Industrial Materials
Association (source)
ARGUMENTS IN SUPPORT : According to the author:
"Historically, aggregate operations were located in areas
where they had few neighbors. However, urbanization has
resulted in the encroachment of existing operations by
other land uses. SB 110 would ensure people who move
adjacent to mine facilities are aware of their existence
and activities, reducing misunderstandings by:
Ensuring that new property purchasers are informed of an
adjacent industrial use prior to purchasing property.
Ensuring that property owners are aware of the location
of information on reclamation plans governing the end use
configuration of adjacent mining property is located.
Enhancing knowledge of adjacent industrial uses and
approved reclamationÝ,] SB 110 would help reduce
misunderstandings between preexisting vital industries
and new property owners."
RJG:mw 5/11/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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