BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 110|
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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
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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)
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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
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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,
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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
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