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