BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1995| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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. CONTINUED AB 1995 Page 2 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. CONTINUED AB 1995 Page 3 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 CONTINUED AB 1995 Page 4 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 CONTINUED AB 1995 Page 5 **** END **** CONTINUED