BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 110| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 110 Author: Rubio (D) Amended: 7/5/11 Vote: 21 SENATE JUDICIARY COMMITTEE : 5-0, 5/10/11 AYES: Evans, Harman, Blakeslee, Corbett, Leno SENATE FLOOR : 39-0, 5/23/11 (Consent) AYES: Alquist, Anderson, Berryhill, Blakeslee, Calderon, Cannella, Corbett, Correa, De León, DeSaulnier, Dutton, Emmerson, Evans, Fuller, Gaines, Hancock, Hernandez, Huff, Kehoe, La Malfa, Leno, Lieu, Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio, Runner, Simitian, Steinberg, Strickland, Vargas, Walters, Wolk, Wright, Wyland, Yee NO VOTE RECORDED: Harman ASSEMBLY FLOOR : 77-0, 7/11/11 (Consent) - See last page for vote 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 one mile of specified CONTINUED SB 110 Page 2 mining operations. Assembly Amendments (1) change the distance requirement for inclusion in the notice from 1,000 feet to one mile and (2) specify procedures to be utilized by the expert, and (3) recast the content of the notice. 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 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) CONTINUED SB 110 Page 3 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 further conditions the limitation on liability described above by requiring an expert, utilizing map coordinate data made available by the Office of Mine Reclamation, when responding to a request regarding natural hazards, to also determine whether the property is presently located within one mile of a parcel of real property subject to mine operations for which map coordinate data has been reported to the director. This bill requires, if the expert determines that the residential property is located within one mile of a mine operation, that the report contain a Notice of Mining Operations, as specified. In responding to the request, the expert shall determine, utilizing map coordinate data made available by the Office of Mine Reclamation, whether the property is presently located within one mile of a mine operation for which map coordinate data has been reported to the director pursuant to Section 2207 of the Public Resources Code. If the expert determines, from the available map coordinate data, that the residential property is located within one mile of a mine operation, the report shall contain the following notice: NOTICE OF MINING OPERATIONS: This property is located within one mile of a mine operation for which the mine owner or operator has reported mine location data to the Department of Conservation pursuant to Section 2207 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 CONTINUED SB 110 Page 4 SUPPORT : (Verified 7/8/11) California Construction and Industrial Materials Association (source) California Cement Manufacturers Environmental Coalition Fidelity National Financial/Disclosure Source First American Natural Hazard Disclosure Company Frank B. Marks Son, Inc. Sespe Consulting, Inc. Specialty Minerals, Inc. Vulcan Materials Company, Western Division Werner Corporation 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." ASSEMBLY FLOOR : 77-0, 7/11/11 (Consent) AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino, CONTINUED SB 110 Page 5 Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Beall, Gorell, Mitchell RJG:mw 7/12/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED