BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 880
                                                                  Page  1

          Date of Hearing:   January 11, 2012

               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
                                 Norma Torres, Chair
                  SB 880 (Corbett) - As Amended:  September 7, 2011

           SENATE VOTE  :   Not relevant
           
          SUBJECT  :   Common interest developments: electric vehicle 
          charging stations 

           SUMMARY  :   Makes changes to the rules on installation of 
          electric vehicle charging stations in common interest 
          developments (CIDs). Specifically,  this bill  :   

          1)Specifies that the governing documents of a CID may not 
            prohibit the installation of an electric vehicle charging 
            station in an owner's designated parking space, including but 
            not limited to a deed-restricted parking space, a parking 
            space in an owner's exclusive use common area, or a parking 
            space that is specifically designated for use by a particular 
            owner. 

          2)Requires an electric vehicle charging stations to meet any 
            applicable zoning, land use, or other ordinances, or land use 
            permits. 

          3)Provides that an association may only authorize the 
            installation of an electric vehicle charging station in a 
            common area that is not an exclusive use common area if it is 
            impossible or unreasonably expensive to install the station in 
            the owner's designated parking space.

          4)Requires an association to enter into a licensing agreement 
            with an owner for the use of space in a common area for an 
            electric vehicle charging station. 

          5)Provides that an association or the owners in an association 
            may install an electric vehicle charging station in the common 
            area for the use of all the owners of the association and the 
            association shall develop the terms of use for the charging 
            station. 

          6)Allows an association to create a new parking space where one 
            did not previously exist to facilitate the installation of an 








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            electric vehicle charging station. 

          7)Provides that the affirmative vote of the owners of an 
            association is not needed to install and use an electric 
            vehicle charging station in an owner's garage or a designated 
            parking space if the installation or use of the charging 
            station requires access through or across the common area for 
            the utility lines or meters or to install and use an electric 
            vehicle charging station through a license granted to an 
            owner. 

           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 
            homeowners association (HOA) (Civil Code Section 1351). 

          2)Prohibits a covenant, restriction, or condition contained in 
            any deed, contract, or 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 an 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).

          4)Provides that 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).  

          6)Makes void and unenforceable any covenant, restriction or 
            conditions contained in any deed, contract, security 
            instrument, or other instrument in a CID that prohibits or 
            restricts the installation of an electric vehicle charging 








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            stations (Civil Code 1353.9).  

           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 in CIDs.  CIDs 
          include condominiums, community apartment projects, 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 oversight to these communities.  

          The governing documents of CIDs generally require approval of 
          the HOA owner's 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, clarified 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 
          and unenforceable.

          Last year, SB 209 (Corbett), Chaptered 121, Statutes of 2011, 
          prohibited the governing documents of an association from 
          denying or restricting the installation of an electric charging 
          station by an owner in a CID. The bill specified conditions for 
          the installation of an electric charging station in the common 
          area of a CID. 
          Although the Governor signed the bill he included the following 
          signing message: 








                                                                  SB 880
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               Senate Bill 209 advances the important state interests of 
               lowering vehicle emissions and of decreasing dependency of 
               foreign oil.  These interests are advanced statutorily by 
               removing unreasonable burdens in common interest 
               developments to the installation of plug-in vehicle 
               charging stations.  Charging stations are part of the 
               infrastructure that must be built in integrate electric 
               vehicles into our daily lives by allowing plug-in vehicles 
               to be recharged faster and to minimize impact to the 
               electrical grid.  I enthusiastically support this bill.

               This bill, unfortunately, contains language that could 
               permit individual homeowners to unreasonably use or occupy 
               common areas. The author has assured me that she will 
               pursue legislation that clearly protects the rights of the 
               common interest development to establish reasonable rules 
               for any use of common areas for charging stations. 

          SB 880 attempts to address the Governor's signing message by 
          clarifying the circumstances in which an electric charging 
          station may be installed in the common area.   The bill allows a 
          charging station to be installed in the common area for one 
          individual to use if installation in the owner's own parking 
          space is impossible or unreasonably expensive. The owner is 
          required to enter into a licensing agreement with the 
          association and to maintain insurance and comply with various 
          installation and usage requirements outlined by SB 209.  The 
          bill also allows the association to install a charging station 
          in the common area if it is available to all owners and after 
          developing appropriate terms for the use of the station.   
          Finally, the bill adds a provision allowing the association to 
          create a new parking space if it is necessary to facilitate the 
          installation of a charging station. 

           Committee Amendments  : 

          1)Adds an urgency clause; 

          2)On page 3, line 9 after "prohibits or" insert "unreasonably"; 

          3)On page 5, line 19 after "station" insert "for the exclusive 
            use of an owner"; 

          4)On page 5, line 21 after "space" delete "that is owned in fee 








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            or as an exclusive use easement"; 

          5)On page 5, line 25, after "and" insert "owner";

          6)On page 6, in line 39 after "(G)" insert, "(i)"; and 

          7)On page 7, in line 3, strike out "meters, or to" and insert 
            "meters ( ii) To" 

           Double referred  :  The Assembly Committee on Rules referred SB 
          880 to the Committee on Housing and Community Development and 
          Judiciary.  If SB 880 passes this committee, the bill must be 
          referred to the Committee on Judiciary.
           



          REGISTERED SUPPORT / OPPOSITION  :
           
          Support 
           
          Plug In America 
           
          Opposition 
           
          None on file. 
           

          Analysis Prepared by  :    Lisa Engel / H. & C.D. / (916) 319-2085