BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2561
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          Date of Hearing:  April 22, 2014

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                Bob Wieckowski, Chair
                AB 2561 (Bradford) - As Introduced: February 21, 2014

                              As Proposed to be Amended
           
          SUBJECT  :  PERSONAL AGRICULTURE: RESTRICTIONS IN RESIDENTIAL  
          PROPERTY

           KEY ISSUE  :  SHOULD RESIDENTS OF COMMON INTEREST DEVELOPMENTS AND  
          TENANTS IN CERTAIN TYPES OF RENTAL PROPERTY BE ABLE TO GROW  
          FRESH FRUITS AND VEGETABLES FOR PERSONAL USE IN THEIR PRIVATE  
          OUTDOOR SPACE, SUBJECT TO REASONABLE RESTRICTIONS BY THEIR  
          HOMEOWNER'S ASSOCIATION OR LANDLORD, RESPECTIVELY?

                                      SYNOPSIS
          
          This bill seeks to enact the Neighborhood Food Act, legislation  
          intended to remove obstacles to the practice of growing edible  
          fruits and vegetables in urban and suburban residential  
          neighborhoods for personal and community use or consumption.   
          This bill is sponsored by the Sustainable Economies Law Center  
          (SELC), a nonprofit group based in Oakland whose mission is to  
          encourage communities to develop their own sustainable sources  
          of food, housing, energy, and jobs.  Specifically, the bill  
          seeks to ensure that residents of CID's and tenants in certain  
          kinds of rental properties may participate in "personal  
          agriculture" activities-growing fruits and vegetable plants at  
          home for personal use-subject to reasonable restrictions but not  
          completely prohibited by their homeowner's association (HOA) or  
          landlord.  

          Proposed amendments eliminate authority for entrepreneurial  
          agriculture in CIDs and in rental property altogether.  With  
          respect to rental property only, the proposed amendments limit  
          personal agriculture to one-and two-unit properties, and require  
          a tenant's plants to be confined to an outdoor area for the  
          tenant's exclusive use, if any.  With respect to CIDs only, the  
          proposed amendments further clarify the use of reasonable  
          restrictions upon personal agriculture by the HOA.  Although the  
          author and opponent continue to dialogue on the bill, the  
          proposed amendments reflected in this analysis have apparently  
          not yet caused any of the opponents to remove their opposition.   








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          Due to time constraints, amendments accepted by the author will  
          be taken in the Local Government Committee.  

           SUMMARY  :  Seeks to ensure the ability of residents in common  
          interest developments and tenants in one- or two-unit rental  
          property to grow edible fruits and vegetables at home for  
          personal use, subject to reasonable restrictions.  Specifically,  
           this bill  :   

          1)Makes Legislative findings about the environmental,  
            nutritional, economic and public health-related benefits  
            associated with increased participation in growing fresh  
            plant-based foods on the land where one resides.

          2)Defines "personal agriculture" to mean a use of land where an  
            individual cultivates edible plant crops for personal use or  
            donation, excluding marijuana or any other unlawful plants.

          With respect to residential rental property:

          3)Requires a landlord to permit a tenant to participate in  
            personal agriculture in portable containers in the tenant's  
            private area as long as the following conditions are met:

             a)   The tenant regularly removes any dead plant material and  
               weeds, unless the landlord and tenant have a preexisting or  
               separate agreement regarding garden maintenance where the  
               tenant is not responsible for such removal.

             b)   The placement of the containers does not interfere with  
               any tenant's parking spot.

             c)   The placement of the containers does not create a  
               trip-and-fall hazard, block doorways, block access to  
               utility panels or cause water or other damage to the  
               property.

          4)Preserves the right of a landlord to periodically inspect any  
            area where the tenant is engaging in personal agriculture, and  
            to enter into a written agreement for the payment of excess  
            water and trash bills, among other things.

          5)Limits application of these provisions only to residential  
            rental property consisting of a single building with one or  
            two dwelling units.








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          With respect to residential property within a common interest  
          development (CID):

          6)Provides that any provision of a governing document of a CID  
            that effectively prohibits or unreasonably restricts the  
            homeowner from using his or her front or back yard for  
            personal agriculture, or from the off-site sale or donation of  
            produce grown on the property, shall be void and  
            unenforceable.

          7)Permits CID's to impose "reasonable restrictions" on the use  
            of a homeowner's yard for personal agriculture, defined as  
            restrictions that do not significantly increase the cost of  
            engaging in personal agriculture or significantly decrease its  
            efficiency.

          8)Limits application of these provisions only to yards that are  
            designated for the exclusive use of the homeowner.

          With respect to the restriction of personal agriculture by  
          cities and counties:

          9)Provides that cities and counties shall not prohibit personal  
            agriculture, community agriculture, or entrepreneurial  
            agriculture, as defined, within their jurisdiction, but that  
            they may, by ordinance, adopt certain restrictions on any of  
            these agricultural activities in a residential or commercial  
            zone.

          10)Specifies a number of types of restrictions that may be  
            adopted by ordinance, including reasonable restrictions  
            relating to nuisance prevention, public safety hazards,  
            applicable building standards, and retail visitors to the  
            property.

           EXISTING LAW  :  

          1)Regulates the terms and conditions of residential tenancies,  
            and generally requires landlords to keep the rental units in a  
            condition fit for occupancy.  (Civil Code Section 1940 et  
            seq.)

          2)Creates an implied covenant of quiet enjoyment in every lease,  
            requiring that the tenant shall not be disturbed in his or her  








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            possession by the landlord.  (Civil Code Section 1927; Pierce  
            v. Nash (1954) 126 Cal.App.2d 606, 612.)

          3)Regulates the purposes for which a renter's security deposit  
            may be used, including, but not limited to, compensating the  
            landlord for default on payment of rent, cleaning or repairing  
            rented property, exclusive of normal wear and tear, or  
            remedying future obligations under the rental agreement, as  
            specified.  (Code of Civil Procedure Section 1950.5 (a)-(e).)

          4)Permits the governing board of a homeowners' association to  
            adopt operating rules that apply generally to the management  
            and operation of the common interest development or the  
            conduct of the business and affairs of the association,  
            provided that the rule is within the authority of the board to  
            make, does not conflict with the association's articles,  
            bylaws, or governing law, and is reasonable.  (Civil Code  
            Sections 4340 and 4350.)

          5)Provides specified limits to the authority of an association  
            or the governing documents to regulate the use of a member's  
            separate interest, including provisions relating to the  
            display of signs, the installation of solar energy systems,  
            racial restrictions, and modification to property to  
            accommodate a disability.  (Civil Code Section 4700 et seq.)

          6)Requires the legislative body of each county and city to adopt  
            a comprehensive, long-term general plan, prepared by the local  
            planning agency, for the physical development of the county or  
            city, and of any land outside its boundaries which in the  
            planning agency's judgment bears relation to its planning.   
            (Government Code Section 65300.)

          7)Requires the general plan to include a number of elements,  
            including a land use element that designates the proposed  
            general distribution and general location and extent of the  
            uses of the land for housing, business, industry, open space,  
            including agriculture, natural resources, recreation, and  
            enjoyment of scenic beauty, education, public buildings and  
            grounds, solid and liquid waste disposal facilities, and other  
            categories of public and private uses of land.  (Government  
            Code Section 65302(a).)

           FISCAL EFFECT  :  As currently in print this bill is keyed fiscal.









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           COMMENTS  :  This bill seeks to enact the Neighborhood Food Act,  
          legislation intended to remove obstacles to the practice of  
          growing edible fruits and vegetables in urban and suburban  
          residential neighborhoods for personal and community use or  
          consumption.  Specifically, the bill seeks to ensure that  
          residents of CID's and tenants in certain kinds of rental  
          properties may participate in "personal agriculture"  
          activities-growing fruits and vegetable plants at home for  
          personal use-subject to reasonable restrictions but not  
          completely prohibited by their homeowner's association (HOA) or  
          landlord.  

           Stated Need for the Bill.   This bill is sponsored by the  
          Sustainable Economies Law Center (SELC), a nonprofit group based  
          in Oakland whose mission is to support grassroots economic  
          empowerment and encourage communities to develop their own  
          sustainable sources of food, housing, energy, and jobs.   
          According to the author:

             Most city and county zoning laws contain numerous detailed  
             restrictions related to landscaping in residential and  
             other city zones in addition to restrictive ordinances  
             regarding "home occupations." Additionally, many vacant  
             lots in residential zones are not zoned as agricultural and  
             so using them as community gardens technically violates  
             city codes in many cities. This creates unnecessary and  
             illogical barriers to converting vacant land into community  
             gardens or small commercial fruit and vegetable gardens.  
             Finally, landlord-tenant leases and HOA contracts often  
             don't allow the cultivation of food on residential  
             property, whether for personal or commercial use. 

             The common home occupation restrictions and lack of proper  
             zoning for agriculture or gardens is especially problematic  
             for gardeners who wish to sell produce grown in residential  
             zones, even just a few baskets of produce to friends and  
             neighbors, or even when taking all produce offsite to sell.  
             These zoning laws frequently render many vegetable, fruit  
             and herb gardens illegal and are sometimes enforced against  
             community gardens and other micro-enterprise gardens in  
             residential zones. 

             While piecemeal efforts have moved extremely incrementally  
             at local levels to change these laws, this bill seeks to  
             remove these legal barriers and make growing food  








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             accessible to all Californians with one piece of common  
             sense legislation.  Empowering individuals to grow food at  
             home, on previously vacant lots and in community gardens on  
             a small scale, will lead to positive economic, health, and  
             environmental outcomes throughout the state. 

           Proposed amendments eliminate entrepreneurial agriculture, limit  
          personal agriculture only to one-and two-unit properties, and  
          require a tenant's plants to be confined to an outdoor area for  
          the tenant's exclusive use, if any.   As currently in print, this  
          bill requires landlords to permit tenants in any residential  
          rental property to engage in personal and entrepreneurial  
          agriculture in any area of the property that is for the  
          exclusive use of the tenant, as long as certain conditions are  
          met.  By definition, property for the exclusive use of the  
          tenant includes the indoor dwelling area (bedrooms, kitchens,  
          bathrooms, etc.), meaning that the bill would require personal  
          agriculture to be permitted indoors in single-family homes and  
          apartments in multiunit buildings as well.  In some properties,  
          there may be a private balcony, patio, or outside yard area that  
          is for the exclusive use of the tenant, but that would typically  
          be found in single-family homes and not multiunit apartment  
          buildings.  As currently in print, in addition to personal  
          agriculture, the bill also requires landlords to permit  
          entrepreneurial agriculture, defined as "cultivation of edible  
          plant crops for the purpose of sale or donation."

          Apartment associations and property owners that oppose the bill  
          contend that the bill unfairly grants tenants the new right to  
          grow as much food on the rental property as they desire,  
          including cultivation on a commercial scale, and that as a  
          result, these properties will suffer physical damage, decrease  
          in value, and landlords would lose control over appearance of  
          the property, among other things.  Although the bill permits  
          personal agriculture only in portable containers (i.e. potted  
          plants) and provides that placement of the containers may not  
          cause water or other damage to the property, opponents contend  
          that provision is vague and that potted plants are still likely  
          to damage the property over time because they need soil and  
          water.

          In order to try to address the concerns of apartment  
          associations who oppose the bill, the author proposes to amend  
          the bill to significantly narrow the scope of agriculture  
          allowed in residential rental properties.  First, the proposed  








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          amendments eliminate entrepreneurial agriculture and clarify  
          that personal agriculture is permitted only for the tenant's  
          personal use or for donation to others.  Second, the proposed  
          amendments limit personal agriculture only to one- and two-unit  
          properties, meaning that it will be permitted in single-family  
          homes and duplexes, but effectively excluded from large  
          multi-unit apartment buildings.  Third, the proposed amendments  
          limit personal agriculture to outdoor areas for the tenant's  
          exclusive use-thus alleviating earlier concerns expressed by  
          opponents about the scope of damage to the inside of the rental  
          property posed by potted plants not otherwise visible without a  
          key to the premises.  In short, the bill as proposed to be  
          amended allows only tenants in one- and two-unit rental  
          properties to engage in personal, not entrepreneurial,  
          agriculture in their exclusive use outdoor area and subject to  
          certain restrictions by the landlord.  Despite the proposed  
          amendments, the apartment associations continue to officially  
          oppose the bill at the time of this analysis, although both  
          sides expressed intent to continue to discuss areas of  
          compromise.
           
          Background on common interest developments  .  CIDs are multi-unit  
          communities characterized by the following: (1) separate  
          ownership of individual residential units coupled with an  
          undivided interest in common property; (2) covenants,  
          conditions, and restrictions (CC&Rs) that limit the use of both  
          separate interests and common property; and (3) management of  
          common property and enforcement of restrictions by a homeowner's  
          association (HOA).  Under the Davis-Stirling Act, which sets  
          forth general rules governing common interest developments, each  
          individual CID is subject to rules and regulations set forth by  
          the HOA's "governing documents."  These governing documents  
          include the recorded declaration and any other documents, such  
          as bylaws, operating rules of the association, or articles of  
          incorporation that govern the operation of the association.   
          CIDs are governed by volunteer boards of directors who are  
          elected by the members of the HOA and who are responsible for  
          interpreting the governing documents and state law.  Except when  
          CIDs are first developed, no state agency provides ongoing  
          oversight to these communities.  In order to amend the governing  
          documents, an HOA must follow the procedure outlined in their  
          governing documents, or if the governing documents are silent,  
          the process provided in state law.  State law and most governing  
          documents require that a majority of members vote to approve an  
          amendment to the governing documents.   








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          An increasing proportion of Californians now live in CID's-by  
          some accounts between one-fourth and one-third of all  
          Californians-and it is likely CIDs represent the majority of new  
          housing being built in the state.  Furthermore, the governing  
          documents of CIDs typically contain many restrictions over  
          aspects of use, appearance, and transferability of interest of  
          the property.  For these reasons, this bill seeks to facilitate  
          the ability of homeowners in the ever-expanding CID-segment of  
          the population to engage in personal agriculture in their own  
          yards, subject to reasonable restrictions but not prohibited by  
          their homeowner's association.

           Proposed amendments eliminate entrepreneurial agriculture and  
          clarify the use of reasonable restrictions in CIDs.   As proposed  
          to be amended, this bill eliminates authority for  
          entrepreneurial agriculture and clarifies that personal  
          agriculture is permitted for the tenant's personal use or for  
          donation to others.  The proposed amendments also state that any  
          provision of a CID governing document shall be void and  
          unenforceable if it effectively prohibits or restricts either  
          (1) the use of the homeowner's front or back yard for personal  
          agriculture, or (2) the off-site sale or donation of produce  
          grown on the homeowner's property.  The bill does not, however,  
          prohibit a CID from imposing "reasonable restrictions" on the  
          use of a homeowner's yard for personal agriculture, which are  
          defined as restrictions that do not significantly increase the  
          cost of engaging in personal agriculture or significantly  
          decrease its efficiency.  

          Prior to the author's proposed amendments, the bill was opposed  
          by homeowners' associations, including ECHO and CAI, on the  
          general principle that any bill that seeks to restrict an HOA's  
          governing documents intrudes upon the existing process of  
          self-governance by members that is a central characteristic of  
          HOAs.  ECHO writes in opposition:  "When a separate interest in  
          a common interest development is purchased, the buyer agrees to  
          abide by the governing documents of the HOA.  Those governing  
          documents can be amended by a vote of the association.  This  
          bill bypasses that process and takes away the collective voice  
          of the other homeowners of the association who may have  
          legitimate reasons for denying personal agriculture in their  
          neighborhood."  

          The Committee notes that, notwithstanding the authority for  








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          self-governance provided to HOAs by statute, the Legislature  
          over the years also has seen fit to modify or limit that  
          authority when thought appropriate to further other important  
          public policy goals.  For example, the Legislature recently  
          approved and the Governor signed SB 209 (Corbett), Ch. 121.  
          Stats. 2011, to promote the ownership of electric vehicles and  
          the reduction in pollution that they cause, among other things.   
          Specifically, SB 209 rendered void and unenforceable any  
          provisio of an HOA's governing documents that effectively  
          prohibits or restricts the installation or use of an electrical  
          vehicle charging station by an individual owner, as specified.   
          Like that measure, this bill provides that HOAs retain authority  
          to impose reasonable restrictions, in this case upon personal  
          agriculture, but they may not adopt rules that would prohibit or  
          effectively prohibit the practice.  Similar restrictions upon  
          HOA authority to prohibit certain practices are sprinkled  
          through the Civil Code, including with respect to installation  
          of solar energy systems (Section 714), installation of satellite  
          dishes or antennas (Section 4725), ownership of pets (Section  
          4715), and rental of the property to tenants (Section 4740),  
          among others.

          In short, the proposed amendments seek to ensure that owners in  
          common interest developments may engage in personal (but not  
          entrepreneurial) agriculture in their exclusive outdoor yard  
          areas, and that HOA's may impose reasonable restrictions but may  
          not effectively prohibit or unreasonably restrict personal  
          agriculture.  At the time of this analysis, the author and the  
          CID associations continue to engage in dialogue, but it is not  
          known whether these proposed amendments are sufficient to remove  
          their opposition.  

          Double referral to Assembly Local Government for analysis of  
          local land use issues.   Should this bill pass this Committee, it  
          will be referred to the Assembly Local Government Committee for  
          consideration.  For this reason, this analysis focuses only on  
          the landlord-tenant and CID provisions of the bill (Sections 2  
          and 3), while preserving the local land use issues (Section 4)  
          for analysis in the Local Government Committee who has  
          jurisdiction over such matters.

           ARGUMENTS IN SUPPORT  :  This bill is supported by produce  
          companies and advocates for urban agriculture, who write in  
          support:









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             (This bill) will increase access to fresh produce for all  
             Californians, regardless of their place of residence and  
             socioeconomic limitations. Allowing small-scale local food  
             production will also reduce the carbon footprint of our  
             food system by shortening the distance between produce and  
             consumer. The bill also promotes efficient, fruitful use of  
             water and land resources, empowering Californians to  
             prioritize food cultivation over ornamental lawns and  
             vacant lots.

           ARGUMENTS IN OPPOSITION  :  The bill is opposed by several  
          apartment associations and property owners.  Two of them, the  
          Apartment Association of Greater Los Angeles and the Santa  
                                          Barbara Rental Property Association, state:

             (We) support the objectives of the author - to promote  
             nutrition and good eating habits in areas of the state that  
             have difficulty doing so.  And, we agree while homegrown  
             fruits and vegetables may not be the answer to drought,  
             obesity, diabetes and health care costs, there is ample  
             evidence that suggests they are part of the answer. But the  
             Legislature's support for and enthusiasm about nutrition  
             and improving access to fresh fruits and vegetables does  
             not justify such a serious trespass as AB 2561 is on two  
             fundamental principles undergirding rental housing: 1)  
             promoting and preserving the quiet enjoyment of the  
             premises; and 2) protecting against damage to the physical  
             property and associated premises.  Indeed, those principles  
             have been long upheld by the Legislature.

             Unfortunately, rather than encouraging or providing  
             incentives for the creation of community gardens,  
             particularly in urban areas and in neighborhoods where  
             fruits and vegetables aren't easily accessible, AB 2561  
             takes a heavy-handed approach - mandating that residents be  
             given the right to demand of property owners that they  
             allow indoor and outdoor gardening, regardless of physical  
             limitations of properties, the impacts on other residents  
             and the vast potential for damage to the properties.
           
          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Sustainable Economies Law Center (SELC) (sponsor)








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          City Slicker Farms
          Phat Beets Produce, Inc.
          Virtually Green

           Opposition 
           
          Apartment Association, California Southern Cities
          Apartment Association of Greater Los Angeles
          Apartment Association of Orange County
          California Apartment Association (unless amended)
          Community Associations Institute (CAI)
          East Bay Rental Housing Association
          Educational Community of Homeowners (ECHO)
          Nor Cal Rental Property Association
          Santa Barbara Rental Property Association
           
          Analysis Prepared by  :   Anthony Lew / JUD. / (916) 319-2334