BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1995
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1995 (Levine)
          As Amended  June 30, 2014
          Majority vote
           
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          |ASSEMBLY:  |74-0 |(April 10,      |SENATE: |35-0 |(August 7,     |
          |           |     |2014)           |        |     |2014)          |
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           Original Committee Reference:    L. GOV.  

           SUMMARY  :  Authorizes the Bel Marin Keys Community Services  
          District (District) to enforce covenants, conditions, and  
          restrictions (CC&Rs).  

           The Senate amendments  :

          1)Authorize the District to enforce all or part of CC&Rs for a  
            tract, and to assume the duties of the architectural control  
            committee (ACC), to the extent that a tract's CC&Rs authorize  
            an ACC.  

          2)Require, before the District can enforce CC&Rs and assume the  
            duties of an ACC for a tract, the board of directors to:

             a)   Receive a written request from the board of directors of  
               the tract's property owners' association or homeowners'  
               association requesting the District to enforce CC&Rs for  
               that tract and assume the duties of the ACC for that tract,  
               if an ACC is called for in CC&Rs;  

             b)   Receive a written request that includes a petition  
               signed by not less than a majority of the property owners  
               of the parcels within the tracts covered by those  
               associations;  

             c)   Conduct a public hearing on the question, after giving  
               mailed notice to each affected property owner of the date,  
               time, and location of the meeting;

             d)   Submit an application to the local agency formation  
               commission (LAFCO), pursuant to existing law, specifying  
               the exact nature and scope of the intended services to be  
               provided by the District;  








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             e)   Receive the approval of the LAFCO, pursuant to existing  
               law, which may include completion terms deemed appropriate  
               by the LAFCO to enforce CC&Rs for a tract, and to assume  
               the duties of the ACC for that tract; and,  

             f)   Adopt an ordinance assuming the power to enforce CC&Rs  
               for a tract, and to assume the duties of the ACC for that  
               tract, provided that the ordinance requires:

               i)     The property owners within the tract to finance the  
                 enforcement of CC&Rs, and the duties of the ACC; and, 

               ii)    The tract's property owners' association or  
                 homeowners' association to indemnify the District for the  
                 costs of any litigation, settlements, injuries, damages,  
                 or judgments arising from enforcement of CC&Rs, and the  
                 District's duties as the ACC.  

          3)Allows the District, by ordinance, to divest itself of the  
            power undertaken under this bill.  

           EXISTING LAW  establishes the Community Services District Law  
          that authorizes Cameron Park, El Dorado Hills, Mountain House,  
          Rancho Murieta, Salton, Stallion Spring, and the Tenaja Meadows  
          Community Services Districts which enforced CC&Rs prior to  
          January 1, 2006, to continue to enforce CC&Rs.    

           AS PASSED BY THE ASSEMBLY  , this bill:  

          1)Added the District to the list of existing Community Services  
            Districts (CSDs) which enforced CC&Rs prior to January 1,  
            2006, and are authorized to continue to enforce CC&Rs.  

          2)Found and declared that a special statute is necessary because  
            of the unique circumstances applicable only to the District.  

           FISCAL EFFECT  :  None

           COMMENTS  :   

          1)CC&Rs.  CC&Rs are private deed restrictions which impose  
            mutual contractual duties on private owners.  Although CC&Rs  
            have the same purpose and often the same effect as zoning  
            ordinances, they are private contracts not government  








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            regulations.  

            The District states, "The District's CC&Rs allow for the  
            creation of the ACC which serves as a first level of review  
            for development projects in the District.  It is tasked with  
            reviewing plans and considering compliance with the more  
            refined district standards found in the CC&Rs.  Without the  
            ACC, the [Marin] County will only consider its own development  
            standards, which conflict with the more localized standards in  
            certain circumstances (e.g., setback distances, which are  
            uniquely applied in the community in order to protect the view  
            corridor along the waterways)."  

          2)Previous legislation.  SB 135 (Kehoe), Chapter 249, Statutes  
            of 2005, authorized eight CSDs to continue enforcing private  
            CC&Rs and repealed the practice for all other CSDs as part of  
            the rewrite of the Community Services District Law.  The  
            Senate Local Government Committee produced a detailed report  
            (Community, Needs, Community Services:  A Legislative History  
            of SB 135 (Kehoe) and the "Community Services District Law,"  
            March 2006) following the passage of SB 135 detailing the  
            19-member working group that reviewed the statute and  
            recommended revisions.  The report details that the working  
            group recommended allowing the eight CSDs that enforced CC&Rs  
            at that time to continue enforcing them.  The report explained  
            that conversely, a CSD that was authorized to enforce CC&Rs  
            under the 1955 Law, but did not use that power, could not  
            enforce CC&Rs under the new CSD Law put in place by SB 135,  
            including the District and a number of other CSDs.  

            According to the District, from 2005 until 2013, they  
            continued to operate with the same understanding that the  
            first step in the project review process at the ACC was still  
            required.  The District is not aware of any instance when an  
            action was brought against an applicant for the enforcement of  
            CC&Rs.  However, it wasn't until around June 2013, when a new  
            planner joined the District, that the ACC's pre-approval plan  
            was called into question.  That is what caused the District to  
            discover the amendment in SB 135, and to seek assistance from  
            the Legislature in order to regain their authority to enforce  
            CC&Rs.  
                
           3)Purpose of the bill.  This bill authorizes the District to  
            enforce all or part of CC&Rs for a tract and to assume the  
            duties of the ACC.  Prior to establishing enforcement  








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            authority, the District's board of directors must:  

             a)   Receive a written request to enforce CC&Rs with a  
               petition signed by not less than a majority of property  
               owners, 

             b)   Conduct a noticed public hearing on the matter, 

             c)   Apply and receive approval from the LAFCO, and 

             d)   Adopt an ordinance which includes specified information  
               assuming the power to enforce CC&R.  This bill is  
               author-sponsored.  

          4)Bel Marin Keys Community Services District.  The District was  
            established in 1961 and covers 633 square miles in the  
            unincorporated community of Bel Marin Keys (Marin County).   
            The District provides a number of services including south  
            levee repairs, flushing of lagoons, shoreline reinforcements,  
            repairing and maintaining boat ramps, Tital Moat improvement,  
            maintaining Dredge material disposal site, maintaining and  
            repairing the community center building, streetlighting,  
            navigational lock maintenance, waterways maintenance, roadway  
            and median and park landscape maintenance, architectural  
            control and open space.  

            According to the District's Web site, "All residences in the  
            District are subject to CC&Rs.  Planned for improvements or  
            additions to homes must first be submitted to the District for  
            its review.  The Board determines conformance of the plans  
            with the CC&Rs prior to their submission by the homeowner to  
            the County for a permit."  

          5)Arguments in support.  Supporters argue that this bill  
            provides the District with the local control to allow  
            enforcement and avoid the erosion of the community's character  
            through CC&R violations.  

          6)Arguments in opposition.  None on file. 

           
          Analysis Prepared by  :    Misa Yokoi-Shelton / L. GOV. / (916)  
          319-3958                                                    










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