BILL ANALYSIS Ó
SB 209
Page 1
Date of Hearing: June 15, 2011
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Norma Torres, Chair
SB 209 (Corbett) - As Amended: June 6, 2011
SENATE VOTE : 25-14
SUBJECT : Common interest developments: electric vehicle
charging stations
SUMMARY : Makes void and unenforceable any covenant, restriction
or conditions contained in any deed, contract, security
instrument, or other instrument in a common interest development
(CID) that prohibits or restricts the installation of an
electric vehicle charging stations. Specifically, this bill :
1)Defines an "electric vehicle charging station" as the
following:
a) designed in compliance with the California Building
Standards;
b) delivers electricity from a source outside an electric
vehicle into one or more electric vehicles;
c) may include several charge points simultaneously
connecting several electric vehicles to the station; and
d) any related equipment needed to facilitate charging
plug-in electric vehicles.
1)Permits the application of reasonable restrictions on electric
vehicle charging stations.
2)Declares that it is the policy of the state to promote,
encourage, and remove obstacles to the use of electric vehicle
charging stations.
3)Defines "reasonable restrictions" as those that do not
significantly increase the cost of the station or decrease its
efficiency or performance.
4)Requires electric vehicle charging stations to meet applicable
health and safety standards and requirements imposed by state
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and local permitting authorities.
5)Requires a homeowners association (HOA) to process and approve
a request to install an electric charging station in the same
manner as an architectural modification to the property and to
not willfully delay or avoid approval.
6)Requires the approval or denial of an electric vehicle
charging station to be in writing.
7)Provides that if an application is not denied within 60 days
from the date it is received the application will be deemed
approved unless the delay was a result of a reasonable request
for additional information.
8)Provides that if an electric vehicle charging station is to be
placed in the common area or an exclusive use common area, the
owner must obtain approval to install the electric vehicle
charging station.
9)Provides that if an electric vehicle charging station is to be
placed in the common area or an exclusive use common area, the
homeowner must agree in writing to all the following:
a) comply with the architectural standards for
installation;
b) engage a licensed contractor to install the station;
c) within 14 days of approval provide a certification of
insurance that names the HOA as an additional insurer under
the homeowner's insurance policy; and
d) pay for the electricity usage associated with the
station.
1)Requires that any owner and each successive owner of the
parking stall on which or near where the electric vehicle
charging station is placed is responsible for all of the
following:
a) cost for any damage to the station, common areas,
exclusive common areas, or adjacent units resulting from
the installation, maintenance, repair, removal or
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replacement of the station;
b) cost for the maintenance, removal, repair and
replacement of the electric vehicle charging station until
it has been removed from the common area or exclusive use
common area;
c) the cost of electricity associated with the station; and
d) disclosing to prospective buyers the existence of any
electric vehicle charging station and the related
responsibilities of the homeowner.
1)Requires any homeowner and each successive homeowner to
maintain an umbrella liability coverage policy for $1 million
and name the HOA as an additional insured under the policy
with a right to notice of cancellation.
2)Provides that an HOA that willfully violates this section is
liable for actual damages and shall pay a civil penalty to the
applicant in an amount not to exceed $1000.
3)Provides in any action to enforce compliance with this section
the prevailing plaintiff is entitled to reasonable attorney
fees.
EXISTING LAW
1)Defines "governing documents" as the Covenants, Conditions and
Restrictions (CC&Rs), bylaws, operating rules, articles of
incorporation and any other documents which govern the HOA
(Civil Code Section 1351).
2)Prohibits a covenant, restriction or condition contained in
any deed contract, security instrument affecting the transfer
or sale of, or any interest in, real property, from preventing
or restricting installation or use of a solar energy system
(Civil Code Section 714).
3)Allows a HOA to impose reasonable restrictions on the
installation of solar energy systems in common areas and
requires an owner to obtain the approval of the HOA prior to
installing a solar energy system in another owner's separate
interest (Civil Code Section 714.1).
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4)Provides it is the policy of the state to promote and
encourage the use of solar energy systems and to remove
obstacles to their installation. Finds that reasonable
restrictions on solar energy systems are those restrictions
that do no significantly increase the cost of the system or
significantly decrease efficiency (Civil Code Section 714).
5)Requires solar energy systems to meet appropriate health and
safety standards and specified national certification
standards (Civil Code Section 714).
FISCAL EFFECT : None
COMMENTS :
There are over 47,000 CIDs in the state that range in size from
three to 27,000 units. CIDs make up over six million total
housing units which represents approximately one quarter of the
state's housing stock. In the 1990s, over 60% of all
residential construction starts in the state were CIDs. CIDs
include condominiums, community apartment projects, and housing
cooperatives, and planned unit developments. They are
characterized by a separate ownership of dwelling space coupled
with an undivided interest in a common property, restricted by
covenants and conditions that limit the use of common area, and
the separate ownership interests and the management of common
property and enforcement of restrictions by an association.
CIDs are governed by the Davis Stirling Act (Civil Code Section
1350 et al.) as well as the governing documents of the
association including the bylaws, declaration, and operating
rules. Except when CIDs are first developed, no state agency
provides ongoing oversight to these communities.
The governing documents of CIDs generally require approval of
the HOA before an owner can make improvements or alterations to
their separate interests. HOAs are required to provide a fair,
reasonable, and expeditious procedure for reviewing applications
for improvements or alterations. In the case of the installation
of energy savings technology, the Legislature has taken
proactive steps to ensure that HOAs cannot deny a homeowner's
request to make changes to his/her separate unit. In 2008, AB
1892 (Smyth), Chapter 40, clarifies that any provision of the
governing documents of a CID that prohibits or restricts the
installation or use of a solar energy system is considered void
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and unenforceable.
According to the author, existing law allows for a CID to deny
an application for installation of electric vehicles. SB 209
seeks to address that problem by making void a prohibition on
the installation of electric vehicles in CID governing
documents. The author offers as evidence for the need for the
bill, a recent case in Hawaii where a homeowner in a CID was
denied the right to install an electric charging device. This
bill is an effort to preempt a potential problem in this state
but making clear that the Legislature supports homeowner's
rights to charge electric vehicles.
Double referred : The Assembly Committee on Rules referred SB
209 to the Committee on Housing and Community Development and
Judiciary. If SB 209 passes this committee, the bill must be
referred to the Committee on Judiciary.
REGISTERED SUPPORT / OPPOSITION :
Support
American Lung Association
Alliance of Automobile Manufacturers
Bay Area Air Quality Management District
California Electric Transportation Coalition
Natural Resources Defense Council
Plug In America
South Coast Air Quality Management District
Tesla Motors, Inc.
Union of Concerned Scientists
Opposition
None on file.
Analysis Prepared by : Lisa Engel / H. & C.D. / (916) 319-2085