BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 880| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 880 Author: Corbett (D), et al. Amended: 1/23/12 Vote: 27 - Urgency PRIOR VOTES NOT RELEVANT ASSEMBLY FLOOR : 56-19, 1/30/12 - See last page for vote SUBJECT : Common interest developments: electric vehicle charging station SOURCE : Author DIGEST : This bill makes changes to the rules on installation of electric vehicle charging stations in common interest developments. Assembly Amendments delete the Senate version of the bill which dealt with environmental impact reports and add the current language. ANALYSIS : Existing law: 1.Provides that any covenant, restriction, or condition contained in any deed, contract, or other instrument affecting the transfer or sale of any interest in a community interest development (CID), and any provision of a governing document, that effectively prohibits or CONTINUED SB 880 Page 2 restricts the installation or use of an electric vehicle charging station is void and unenforceable. 2.Permits the managing association of a CID (association) to impose "reasonable" restrictions on electric vehicle charging stations, defined as restrictions that do not significantly increase the cost of the station or decrease its efficiency or performance. 3.Requires the association to process and approve an application 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. Further requires the approval or denial of the application to be in writing, and provides that if an application is not denied within 60 days of receipt, then the application will be deemed approved unless the delay was the result of a reasonable request for additional information. 4.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 from the association to install the electric vehicle charging station. Further provides that the association shall approve the installation if the homeowner agrees in writing to do all the following: A. Comply with the association's 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 association as an additional insurer under the homeowner's insurance policy; 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 CONTINUED SB 880 Page 3 charging station is placed to be responsible for specified costs associated with installation, maintenance, and repair, as well as for the duty to disclose to prospective buyers the existence of the charging station and the related responsibilities of the homeowner. 2.Provides that an association that willfully violates these provisions is liable to the applicant or other party for actual damages and shall pay a civil penalty to the applicant or other party in an amount not to exceed $1000, and entitles a prevailing plaintiff to reasonable attorney fees in any action to enforce compliance with these provisions. 3.Provides that after an association acquires fee title to, or any easement right over, a common area, an approval of at least 67 percent of the members owning separate interests in the CID is required (unless the governing documents specify a different percentage) to allow the board of directors to grant exclusive use of any portion of that common area to a member, with specified exceptions. 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 a CID 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. CONTINUED SB 880 Page 4 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 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. 8.Provides that a homeowner liability coverage policy is not required if a homeowner uses an existing National Electrical Manufacturers Association standard alternating current power plug to charge his or her car. 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 CONTINUED SB 880 Page 5 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 homeowner's association (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 or her separate unit. In 2008, AB 1892 (Smyth), Chapter 40, Statutes of 2008, 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: 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 CONTINUED SB 880 Page 6 rights of the common interest development to establish reasonable rules for any use of common areas for charging stations. This bill 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. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 2/1/12) California Electric Transportation Coalition Plug In America Community Associations Institute of California Personal Insurance Federation Executive Council of Homeowners ARGUMENTS IN SUPPORT : This bill is supported by Plug In America, a Santa Cruz-based organization who describes itself as "representing millions of potential future consumers of plug-in hybrids and fully electric vehicles." In its letter of support, they write: Plug In America enthusiastically endorses SB 880, which will accelerate the market deployment off electric vehicles by promoting the implementation of plug-in charging infrastructure in condominium and other multi-family dwellings. SB 880 will CONTINUED SB 880 Page 7 significantly reduce the barriers for installation of electric vehicle charging in this kind of residence so that these plug-in vehicles can be more widely deployed. We support this bill because it will support the consumers who will drive demand for the next generation of clean efficient vehicles which run on domestic electricity. ASSEMBLY FLOOR : 56-19, 1/30/12 AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Chesbro, Cook, Davis, Dickinson, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Galgiani, Gatto, Gordon, Hall, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Bonnie Lowenthal, Ma, Mendoza, Miller, Mitchell, Monning, Nestande, Pan, Perea, Portantino, Skinner, Smyth, Solorio, Swanson, Torres, Valadao, Wieckowski, Williams, Yamada, John A. Pérez NOES: Achadjian, Bill Berryhill, Conway, Donnelly, Beth Gaines, Garrick, Grove, Halderman, Harkey, Jones, Knight, Logue, Mansoor, Morrell, Nielsen, Norby, Olsen, Silva, Wagner NO VOTE RECORDED: Cedillo, Gorell, Hagman, Lara, V. Manuel Pérez JJA:nl 2/1/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED