BILL ANALYSIS                                                                                                                                                                                                    Ó






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 209
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  Corbett
                                                         VERSION: 3/22/11
          Analysis by:  Mark Stivers                     FISCAL:  no
          Hearing date:  March 29, 2011



          SUBJECT:

          Common interest developments: electrical vehicle charging 
          stations

          DESCRIPTION:

          This bill provides that a prohibition or restriction on the 
          installation or use of an electrical vehicle charging station in 
          any of the governing documents of a common interest development 
          is void and unenforceable.  

          ANALYSIS:

          A common interest development (CID) is a form of real estate in 
          which each homeowner has an exclusive interest in a unit or lot 
          and a shared or undivided interest in common area property.  
          Within a CID, exclusive use common area is a part of the 
          undivided common area that is reserved for use by a particular 
          homeowner, such as a parking stall or patio.  Condominiums, 
          planned unit developments, stock cooperatives, community 
          apartments, and many resident-owned mobilehome parks all fall 
          under the umbrella of common interest developments.  Each CID is 
          governed by a homeowners association board elected by the 
          members.  The members of the CID are bound by the covenants, 
          conditions, and restrictions (CC&Rs) that are recorded against 
          each individual unit.  In addition, associations adopt articles 
          of incorporation, articles of association, and bylaws for the 
          governance of the CID as well as operating rules that govern the 
          behavior of members and their guests.  Collectively, these 
          documents are referred to as the governing documents of the 
          association.  

          Current law voids CID governing documents in a number of 
          instances, such as where they prohibit or restrict solar energy 
          systems, low water-using plants, or displays on non-commerical 
          signs, including the American flag.   





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           This bill  provides that a provision of a CID governing document 
          that effectively prohibits or unreasonably restricts the 
          installation or use of an electrical vehicle charging station is 
          void and unenforceable.  The bill further:

           Allows a CID to impose reasonable restrictions that do not 
            significantly increase the cost of the station or 
            significantly decrease the station's efficiency or 
            performance.
           Requires the station to meet state and local building and 
            safety standards.
           Provides that if a CID requires approval of the installation 
            of the charging station, then the CID must approve or deny the 
            application in writing within 60 days, unless the delay is a 
            result of a reasonable request for additional information.

           For charging stations located in a common area or exclusive 
            use common area, requires the homeowner to agree in writing 
            to:

                 Comply with the CID's design specifications.
                 Engage a licensed contractor.
                 Within 14 days of approval by the CID, provide a 
               certificate of insurance that names the CID as an 
               additional insured on the homeowner's insurance policy.

           For charging stations located in a common area or exclusive 
            use common area, requires the homeowner and successive 
            homeowners to maintain an insurance policy naming the CID and 
            to be responsible for any maintenance, removal, repair, and 
            replacement costs for the station as well as any damages 
            related to the station.
           Subjects a CID that willfully violates this bill to actual 
            damages, a civil penalty up to $1000, and attorney's fees.

          COMMENTS:

           1.Purpose of the bill  .  In order for electric vehicles to 
            proliferate, it is important that early consumers have a 
            positive experience.  Installing a home charging station is 
            one of the key elements to electric vehicle ownership, and 
            according to the author, incidences of CIDs blocking the 
            installation of electric vehicle chargers have arisen.  If 
            such prohibitions or restrictions become common, Californians 
            living in CIDs will be shut out of driving clean electric 
            vehicles.  This bill seeks to eliminate obstacles that 




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            currently impact or will impact electrical vehicle owners in 
            CIDs.  By facilitating home stations, this bill will also 
            encourage off-peak charging for electric vehicles, thereby 
            reducing the impact on the electric grid.

           2.Getting ahead of the problem  .  There are very few plug-in 
            electric vehicles in use in California today.  As a result, 
            staff is not aware of any cases in which a CID has prohibited 
            the installation of a charger.  The expectation, however, is 
            that the market for plug-in electric vehicles is about to take 
            off with the introduction of vehicles such as the Chevrolet 
            Volt and Nissan Leaf.  This bill is intended to prevent future 
            problems in CID by establishing standards for such 
            installations up front.  

           3.Borrowing from Hawaii  .  In response to an actual incident, the 
            Hawaii legislature last year enacted a statute voiding 
            prohibitions on the installation of electric vehicle charging 
            stations in that state's version of common interest 
            developments.  The provisions of this bill largely mirror 
            those of the Hawaii statute with two major exceptions, both 
            relating to the installation of charging stations in common 
            areas.  There are many CIDs, especially those that include 
            attached housing units, in which parking is located in a 
            central area that comprises part of the common area.  
            Individual spaces may be reserved for particular homeowners, 
            in which case the spaces may be considered exclusive use 
            common areas.  In instances where a homeowner will need to 
            install an electric vehicle charging station in a portion of 
            the common area in order to be near his or her parking space, 
            both the Hawaii law and this bill establish requirements on 
            the homeowner, including the requirements to maintain 
            insurance, to cover repair, maintenance, and removal costs, 
            and to obtain approval from the association.  Unlike the 
            Hawaii statute, however, this bill implies but does not 
            explicitly state that homeowners are required to pay the 
            on-going electricity charges associated with the charger.  
            Secondly, the Hawaii law requires the association to grant 
            consent for the installing of a charging station on common 
            area property if the homeowner agrees to the various 
            conditions.  This bill states only that the homeowner must 
            agree to the conditions and obtain the association's approval 
            but does not explicitly state whether or not the association 
            must grant such approval.  The committee may wish to consider 
            amendments to explicitly make the homeowner responsible for 
            electricity charges and to require the association to grant 




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            consent if the homeowner agrees to the enumerated conditions.

          RELATED LEGISLATION:

          SB 730 (Kehoe) requires a city or county to make available an 
          online building permit form for residential and nonresidential 
          property owners who seek to install electric vehicle charging 
          equipment, to approve such permits within 24 hours of receipt, 
          and to review the work completed under the permit within seven 
          days.  Will be heard in the Senate Transportation and Housing 
          Committee on March 29, 2011.
          
          POSITIONS:  (Communicated to the Committee before noon on 
          Wednesday,                                             March 23, 
          2011)

               SUPPORT:  Alliance of Automobile Manufacturers
                         Plug In America

          
               OPPOSED:  None received.