BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 1995
          Author:   Levine (D)
          Amended:  6/30/14 in Senate
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  7-0, 6/25/14
          AYES:  Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu, Walters
           
          ASSEMBLY FLOOR  :  74-0, 4/10/14 (Consent) - See last page for  
            vote


            SUBJECT  :    Community service districts: covenants, conditions,  
                      and restrictions:  enforcement

           SOURCE  :     Author


           DIGEST  :    This bill authorizes the Bel Marin Keys Community  
          Services District (District) to enforce all or part of the  
          covenants, conditions, and restrictions (CC&Rs) for a tract  
          within that District, and to assume the duties of an  
          architectural control committee for that tract, as provided.

           ANALYSIS  :    The Community Services Districts Law is the  
          principal act that governs community services districts (CSDs),  
          which are a form of special district.  The law governing CSDs  
          was initially passed in 1951 (AB 2034, Calderott, Chapter 1711)  
          and re-enacted in 1955 (SB 1714, Desmond, Chapter 1446).  In  
          2005, the Legislature revised the Community Services District  
          Law (SB 135, Kehoe, Chapter 249) with the help of a working  
          group.  
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          A CSD can deliver 31 different types of services and facilities,  
          such as police protection, road maintenance, and parks and  
          recreation.  Most of the state's 326 CSDs perform only a few of  
          these authorized services, depending on what local residents and  
          property owners are willing to fund.  

          This bill authorizes the District to enforce all or part of the  
          CC&Rs for a tract within that District, and to assume the duties  
          of an architectural control committee for that tract, as  
          provided.  Before the District can enforce CC&Rs, and assume the  
          duties of an architectural control committee, for a tract, the  
          District board of directors shall:

          1.Receive a written request from the board of directors of the  
            tract's property owners' association or homeowners'  
            association (HOA), with a petition signed by a majority of the  
            property owners within the tracts covered by those  
            associations, requesting the District to enforce the CC&Rs for  
            that tract and assume the duties of the architectural control  
            committee, if an architectural control committee is called for  
            in the CC&Rs.

          2.Conduct a public hearing after giving mailed notice to each  
            affected property owner of the date, time, and location of the  
            meeting.

          3.Submit an application to the local agency formation commission  
            specifying the exact nature and scope of the intended services  
            to be provided by the District.

          4.Receive the approval of the local agency formation commission,  
            which may include completion terms deemed appropriate by the  
            commission, to enforce CC&Rs for a tract, and to assume the  
            duties of the architectural control committee for that tract.

          5.Adopt an ordinance assuming the power to enforce CC&Rs for a  
            tract, and to assume the duties of the architectural control  
            committee for that tract, provided that the ordinance  
            requires:

             A.   The property owners within the tract to finance the  
               enforcement of the CC&Rs, and the duties of the  
               architectural control committee.

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             B.   The tract's property owners' association or HOA to  
               indemnify the District for the costs of any litigation,  
               settlements, injuries, damages, or judgments arising from  
               enforcement of the CC&Rs, and the District's duties as the  
               architectural control committee.

          This bill provides that the District may, by ordinance, divest  
          itself of the power undertaken under this bill.

           
          Background 
           
          The Legislature has granted special powers to individual CSDs  
          when communities face unique circumstances.  Eight CSDs have the  
          authority to enforce CC&Rs on behalf of HOAs within their  
          districts.  The eight CSDs that have this special power are:

           Cameron Park CSD, El Dorado County,
           El Dorado Hills CSD, El Dorado County,
           Golden Hills, CSD, Kern County,
           Mountain House CSD, Alameda County, 
           Rancho Murieta CSD, Sacramento County,
           Salton CSD, Riverside County,
           Stallion Springs CSD, Kern County, and
           Tenaja CSD, Riverside County.

          CC&Rs are limitations and rules placed on a group of homes by a  
          builder, developer, neighborhood association or HOA.  Subject to  
          legal limitations, CC&Rs can place restrictions of almost any  
          kind on homeowners, from exterior paint color to restrictions on  
          curb-side parking, as long as the homeowners electing to adopt  
          the CC&Rs agree to them.  CC&Rs generally outline procedures for  
          amendments or rescission.

          Prior to the 2005 CSD law revision, 18 CSDs were authorized to  
          enforce CC&Rs.  The working group contacted each CSD to ask if  
          they were actively enforcing CC&Rs.  At that time, ten CSDs  
          indicated that they were not, and the revision to the CSD law  
          repealed their CC&R enforcement authority.  At that time, Bel  
          Marin Keys CSD was authorized to enforce CC&Rs, but it indicated  
          that the authority was not being used.  The 2005 revision  
          repealed its authority.  Bel Marin Keys CSD indicates that this  
          change was an error and would like the Legislature to  

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          re-authorize its authority to enforce CC&Rs within its district.

           Comments
           
          This bill remedies an oversight that resulted in the District  
          losing its statutory authority to enforce CC&Rs on behalf of  
          residents.  The District exercised this authority as far back as  
          1982, until that authority was repealed in 2005.  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

           SUPPORT  :   (Verified  7/1/14)

          Bel Marin Keys Community Services District
          County of Marin, 5th District, Supervisor Judy Arnold 
          Marin Local Agency Formation Commission

           ARGUMENTS IN SUPPORT  :    According to the author, "AB 1995 would  
          simply restore the Bel Marin Keys CSD ability to enforce CC&R's  
          in their district and help preserve the character of the unique  
          community."


           ASSEMBLY FLOOR  :  74-0, 4/10/14
          AYES:  Achadjian, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Dickinson, Donnelly, Fong, Fox, Frazier, Beth  
            Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray,  
            Grove, Hagman, Hall, Harkey, Roger Hernández, Holden,  
            Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,  
            Mansoor, Medina, Melendez, Mullin, Muratsuchi, Nazarian,  
            Nestande, Olsen, Pan, Patterson, Perea, V. Manuel Pérez,  
            Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Skinner,  
            Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk,  
            Williams, Yamada, John A. Pérez
          NO VOTE RECORDED:  Alejo, Daly, Eggman, Jones, Salas, Vacancy


          AB:k  7/2/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE


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