BILL ANALYSIS Ó SENATE JUDICIARY COMMITTEE Senator Hannah-Beth Jackson, Chair 2013-2014 Regular Session AB 2561 (Bradford) As Amended May 28, 2014 Hearing Date: June 24, 2014 Fiscal: No Urgency: No TMW SUBJECT Personal Agriculture: Restrictions DESCRIPTION This bill would require a landlord to permit a tenant to participate in personal agriculture in portable containers, if certain conditions are met. This bill would void any provision of a governing document of a common interest development that effectively prohibits or unreasonably restricts the use of a homeowner's back yard for personal agriculture. (This analysis reflects author's amendments to be offered in Committee.) BACKGROUND In California, common interest developments (CIDs) are governed by the Davis-Stirling Common Interest Development Act (Davis-Stirling Act). Owners of separate property in CIDs have an undivided interest in the common property of the development and are subject to the CIDs covenants, conditions, and restrictions. CIDs are also governed by a homeowners association (HOA), which is run by volunteer directors that may or may not have prior experience managing an association. The Davis-Stirling Act establishes the rules and regulations governing the operation of a CID and the respective rights and duties of an HOA and its members. Separately, existing law regulates the terms and conditions of (more) AB 2561 (Bradford) Page 2 of ? residential tenancies and provides specified tenant protections in the use of the rental property. This bill would add to the Davis-Stirling Act and landlord-tenant law protections for a CID homeowner or tenant to grow edible crops for personal use or donation. This bill was heard by the Senate Transportation and Housing Committee on June 17, 2014, and passed out on a vote of 10-1. CHANGES TO EXISTING LAW Existing law regulates the terms and conditions of residential tenancies and generally requires a landlord to keep a rental unit in a condition fit for occupancy. (Civ. Code Sec. 1940 et seq.) Existing law creates an implied covenant of quiet enjoyment in every lease, requiring that the tenant shall not be disturbed in his or her possession by the landlord. (Civ. Code Sec. 1927; Pierce v. Nash (1954) 126 Cal.App.2d 606, 612.) Existing law 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 Civ. Proc. Sec. 1950.5 (a)-(e).) Existing law , the Davis-Stirling Common Interest Development Act (Davis-Stirling Act), establishes the rules and regulations governing the operation of a common interest development (CID) and the respective rights and duties of a homeowners' association (HOA) and its members. (Civ. Code Sec. 4000 et seq.) Existing law permits the governing board of an HOA to adopt operating rules that apply generally to the management and operation of the CID or the conduct of the business and affairs of HOA, provided that the rule is within the authority of the board to make, does not conflict with the HOA's articles, bylaws, or governing law, and is reasonable. (Civ. Code Secs. 4340, 4350.) Existing law limits the authority of an HOA or the governing documents of a CID to regulate the use of a member's separate interest. (Civ. Code Sec. 4700 et seq.) AB 2561 (Bradford) Page 3 of ? Existing law makes a provision of the CID governing documents void and unenforceable if it does any of the following: prohibits, or includes conditions that have the effect of prohibiting, the use of low water-using plants as a group; or has the effect of prohibiting or restricting compliance with either of the following: (1) a water-efficient landscape ordinance adopted or in effect, as specified, or (2) any regulation or restriction on the use of water adopted, as specified. (Civ. Code Sec. 4735(a).) Existing law does not prohibit an association from applying landscaping rules established in the governing documents, to the extent the rules fully conform with the above requirements. (Civ. Code Sec. 4735(b).) This bill would require a landlord to permit a tenant to participate in personal agriculture in portable containers approved by the landlord in the tenant's private area if the following conditions are met: the tenant regularly removes any dead plant material and weeds, with the exception of straw, mulch, compost, and any other organic materials intended to encourage vegetation and retention of moisture in soil, unless the landlord and tenant have a preexisting or separate agreement regarding garden maintenance where the tenant is not responsible for removing or maintaining plant crops and weeds; the plant crops will not interfere with the maintenance of the rental property; the placement of the portable containers does not interfere with any tenant's parking spot; and the placement and location of the portable containers may be determined by the landlord, however, the portable containers may not create a health and safety hazard, block doorways, or interfere with walkways or utility services or equipment. This bill would provide that the cultivation of plant crops on the rental property other than that which is contained in portable containers is subject to approval from the landlord. This bill would authorize a landlord to prohibit the use of synthetic chemical herbicides, pesticides, fungicides, rodenticides, insecticides, or any other synthetic chemical product commonly used in the growing of plant crops. This bill would authorize a landlord to require the tenant to enter into a written agreement regarding the payment of any AB 2561 (Bradford) Page 4 of ? excess water and waste collection bills arising from the tenant's personal agriculture activities. This bill would provide that a landlord has a right to periodically inspect any area where the tenant is engaging in personal agriculture to ensure compliance with this bill, subject to notice requirements. This bill would limit the above provisions only to residential real property that is improved with, or consisting of, a building containing not more than two units that are intended for human habitation. This bill would state that any provision of a governing document of a CID is void and unenforceable if it effectively prohibits or unreasonably restricts the use of a homeowner's backyard for personal agriculture. This bill would not apply to provisions in the governing document that impose reasonable restrictions on the use of a homeowner's yard for personal agriculture. This bill would apply only to yards that are designated for the exclusive use of the homeowner. This bill would not prohibit an HOA from applying rules and regulations requiring that dead plant material and weeds, with the exception of straw, mulch, compost, and other organic materials intended to encourage vegetation and retention of moisture in the soil, are regularly cleared from the backyard. This bill would provide the following definitions: "reasonable restrictions" are restrictions that do not significantly increase the cost of engaging in personal agriculture or significantly decrease its efficiency; "private area" means an outdoor backyard area that is on the ground level of the rental unit; "personal agriculture" means a use of land where an individual cultivates edible plant crops for personal use or donation; and "plant crop" means any crop in its raw or natural state, which comes from a plant that will bear edible fruits or vegetables. It shall not include marijuana or any unlawful crops or substances. This bill would include legislative findings and declarations AB 2561 (Bradford) Page 5 of ? regarding the importance of small-scale, neighborhood-based food enterprises. COMMENT 1. Stated need for the bill The author writes: California took its first step toward enabling local government zoning ordinances in 1863, when the state passed a law granting San Francisco authority "to make all regulations which may be necessary or expedient for the preservation of the public health and the prevention of contagious diseases." However, since these first zoning ordinances, the scope of local zoning laws has increased to entail much more than preservation of public health. Local zoning ordinances now are often based on aesthetic preferences, maintaining property values, and as some academic studies have suggested, more recently adopted zoning laws, specifically zoning laws that prohibit agriculture, were a strategy to keep people of low socio-economic status out of neighborhoods. AB 2561, The California Neighborhood Food Act [(Act)] seeks to ensure the rights of individuals and groups to cultivate and, in certain cases, sell edible plants even when local zoning laws, private land covenants, or lease restrictions seek to prohibit such activities. This Act 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. By adding new provisions to the Government Code and the Civil Code, the bill increases opportunities for growing fresh produce in the following ways: Tenants' rights: The bill would require that tenants be able to grow produce on land they rent as long as it does not interfere with other tenants' use of the property or create hazards, with landlord approval. This bill would require a landlord to permit a tenant to participate in personal agriculture in portable containers approved by the landlord in the tenant's private area, as defined, if certain conditions are met. AB 2561 (Bradford) Page 6 of ? Homeowners' Association member rights: The bill would make it illegal for a homeowners' association contract to prohibit the use of private (not shared) property for growing produce and having occasional on-site sales. 2. Prohibiting common interest development restrictions on personal agricultural This bill would prohibit common interest developments (CIDs) from effectively prohibiting or unreasonably restricting homeowners from using their backyard for personal agriculture activities. However, this bill would not prescribe limitations on CIDs restrictions on chemicals used on the homeowner's food garden area. Proponents of this bill assert that "[e]mpowering individuals to grow food at home, on vacant lots and in their communities will lead to positive economic, health, and environmental outcomes throughout the state. This bill will increase access to fresh produce for all Californians, regardless of their place of residence and economic vulnerability. It will provide job opportunities for many Californians. This bill also promotes efficient and prudent use of water and land resources, empowering Californians to prioritize food cultivation over ornamental lawns and vacant lots." In Nahrstedt v. Lakeside Village (1994) 8 Cal.4th 361, 372, the California Supreme Court recognized the importance of allowing a CID to regulate the uses of the development for the benefit of the homeowners and stated that "[u]se restrictions are an inherent part of any common interest development and are crucial to the stable, planned environment of any shared ownership arrangement. . . . The restrictions on the use of property in any common interest development may limit activities conducted in the common areas as well as in the confines of the home itself." Although this bill would not prevent a CID from restricting specified chemicals from being used in personal agriculture areas, it would make any unreasonable provisions unenforceable if they violated the public policy goals of promoting gardens and community access to fresh fruits and vegetables as declared in this bill. In this way, this bill would balance the interests of the CID in limiting activities within the CID, as long as those limitations did not unreasonably interfere with the homeowner's right to grow food created in this bill. AB 2561 (Bradford) Page 7 of ? 3. Prohibiting restrictions on residential tenant personal agriculture This bill would similarly require landlords to allow tenants of single family homes or duplexes to engage in "personal agriculture" in portable containers approved by the landlord. This bill would provide that a tenant's personal agriculture activities may not interfere with maintenance of the property or create any health or safety hazard and permit a landlord to prohibit the use of synthetic chemicals, to charge for excess water use or waste collection, and to periodically inspect the personal agriculture activity. Although commercial tenant-use restrictions in commercial property are generally enforced, regardless of whether they are unreasonable, residential tenants have stronger protections regarding the use of the leased property. This bill would provide additional tenant protection for growing edible plants and fruit trees in containers on the property. However, this bill also seeks to strike a reasonable balance of providing a tenant access to edible gardening while providing the landlord the ability to prohibit the use of specified chemicals for that gardening, allowing the landlord to charge for excess water use and waste collection, and authorizing inspection of the activity upon prior tenant notice. 4. Opposition's concerns The Community Association Institute (CAI), opposed unless amended, asserts that amendments to this bill are necessary to clarify the definition of "backyard" because "[p]eople may not understand that the back yard that they see may, in fact, not be theirs to use as it may be the HOA's "common area". Hence, clarifying that the yard where the crops may be planted is the "exclusive use back yard." CAI also contends that this bill should be amended to incorporate container and chemical product use restrictions for CIDs as the bill provides for apartments, rather than have 50,000 HOAs attempt to promulgate these restrictions. CAI also proposes a technical amendment to the bill to correct an error. The Educational Community for Homeowners, in support if amended, also requests that an HOA be allowed to limit the use of chemical, or artificial pesticides in order to avoid run-off into waters enjoyed by the association or the community at large. AB 2561 (Bradford) Page 8 of ? 5. Author's amendments This bill was approved by the Senate Transportation and Housing Committee on June 17, 2014. Due to procedural timing constraints, the author agreed in that Committee to take the following amendments in this Committee. The amendments also include minor technical amendments. Author's amendments : 1. On page 5, strike lines 35-37 and reletter the subsequent subdivision 2. On page 6, lines 5-7, strike "the following definitions shall apply: (1) "Personal" and insert ""personal"" 3. On page 6, strike line 9 4. On page 6, lines 11-13, strike "does either of the following: (1) Effectively" and insert "effectively" 5. On page 6, in line 14, remove and replace "back yard" with "backyard" 6. On page 6, strike lines 15-17 7. On page 6, in line 34, remove and replace "front yard" with "backyard" Support : City Slicker Farms; Community Food and Justice Coalition; Earth Law Center; Eastbay Area Reciprocity Network; Ecological Farming Association; Growing Affordable Fresh Produce for West Oakland; Phat Beets Produce; Planting Justice; San Francisco Urban Agriculture Alliance; Santa Barbara Food Alliance; Virtually Green Opposition : California Apartment Association; Community Association Institute HISTORY Source : Sustainable Economies Law Center Related Pending Legislation : None Known Prior Legislation : None Known Prior Vote : Senate Committee on Transportation and Housing (Ayes 10, Noes 1) Assembly Floor (Ayes 53, Noes 24) AB 2561 (Bradford) Page 9 of ? Assembly Committee on Local Government (Ayes 5, Noes 1) Assembly Committee on Judiciary (Ayes 10, Noes 0) **************