BILL ANALYSIS                                                                                                                                                                                                    ”


          |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 


                                                                SB 110

          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 

           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:

            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 



                                                                SB 110

            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 reclamation›,] 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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