BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 880|
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                              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 
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            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 

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            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. 


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          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 

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          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 

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               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 

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               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

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