Amended in Assembly June 24, 2013

Amended in Senate April 18, 2013

Senate BillNo. 752


Introduced by Senator Roth

February 22, 2013


An act to amend Sections 10153.2, 11003, 11003.2, 11004.5,begin insert 11010.3,end insert 23426.5, and 23428.20 of the Business and Professions Code, to amend Sections 714, 714.1, 782, 782.5, 783, 783.1, 1098, 1133, 1633.3, 2924b, 2955.1, and 4202 of, to add Part 5.3 (commencing with Section 6500) to Division 4 of, and to repeal Section 6870 of, the Civil Code, to amend Sections 86 and 116.540 of the Code of Civil Procedure, to amend Sections 12191, 12956.1, 12956.2, 53341.5, 65008, 66411, 66412, 66424, 66427, 66452.10, and 66475.2 of the Government Code, to amend Sections 13132.7, 19850, 25400.22, 25915.2, 33050, 33435, 33436, 35811, 37630, 50955, 51602, and 116048 of the Health and Safety Code, to amend Section 790.031 of the Insurance Code, to amend Section 2188.6 of the Revenue and Taxation Code, to amend Sections 21107.7, 22651, 22651.05, and 22658 of the Vehicle Code, and to amend Section 13553 of the Water Code, relating to common interest developments.

LEGISLATIVE COUNSEL’S DIGEST

SB 752, as amended, Roth. Commercial and industrial common interest developments.

The Davis-Stirling Common Interest Development Act provides for the creation and regulation of common interest developments, as defined, but exempts common interest developments that are limited to industrial or commercial uses from specified provisions of the act.

This bill would establish the Commercial and Industrial Common Interest Development Act, which would provide for the creation and regulation of commercial and industrial common interest developments. The bill would make various conforming changes.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 10153.2 of the Business and Professions
2Code
, as amended by Section 2 of Chapter 181 of the Statutes of
32012, is amended to read:

4

10153.2.  

(a) An applicant to take the examination for an
5original real estate broker license shall also submit evidence,
6satisfactory to the commissioner, of successful completion, at an
7accredited institution, of:

8(1) A three-semester unit course, or the quarter equivalent
9thereof, in each of the following:

10(A) Real estate practice.

11(B) Legal aspects of real estate.

12(C) Real estate appraisal.

13(D) Real estate financing.

14(E) Real estate economics or accounting.

15(2) A three-semester unit course, or the quarter equivalent
16thereof, in three of the following:

17(A) Advanced legal aspects of real estate.

18(B) Advanced real estate finance.

19(C) Advanced real estate appraisal.

20(D) Business law.

21(E) Escrows.

22(F) Real estate principles.

23(G) Property management.

24(H) Real estate office administration.

25(I) Mortgage loan brokering and lending.

26(J) Computer applications in real estate.

27(K) On and after July 1, 2004, California law that relates to
28common interest developments, including, but not limited to, topics
29addressed in the Davis-Stirling Common Interest Development
30Act (Part 5 (commencing with Section 4000) of Division 4 of the
31Civil Code) and in the Commercial and Industrial Common Interest
P3    1Development Act (Part 5.3 (commencing with Section 6500) of
2Division 4 of the Civil Code).

3(b) The commissioner shall waive the requirements of this
4section for an applicant who is a member of the State Bar of
5California and shall waive the requirements for which an applicant
6has successfully completed an equivalent course of study as
7determined under Section 10153.5.

8(c) The commissioner shall extend credit under this section for
9any course completed to satisfy requirements of Section 10153.3
10or 10153.4.

11

SEC. 2.  

Section 11003 of the Business and Professions Code,
12as amended by Section 4 of Chapter 181 of the Statutes of 2012,
13is amended to read:

14

11003.  

“Planned development” has the same meaning as
15specified in Section 4175 or 6562 of the Civil Code.

16

SEC. 3.  

Section 11003.2 of the Business and Professions Code,
17as amended by Section 5 of Chapter 181 of the Statutes of 2012,
18is amended to read:

19

11003.2.  

“Stock cooperative” has the same meaning as
20specified in Section 4190 or 6566 of the Civil Code, except that,
21as used in this chapter, a “stock cooperative” does not include a
22limited-equity housing cooperative.

23

SEC. 4.  

Section 11004.5 of the Business and Professions Code,
24as amended by Section 7 of Chapter 181 of the Statutes of 2012,
25is amended to read:

26

11004.5.  

In addition to the provisions of Section 11000, the
27reference in this code to “subdivided lands” and “subdivision”
28shall include all of the following:

29(a) Any planned development, as defined in Section 11003,
30containing five or more lots.

31(b) Any community apartment project, as defined by Section
3211004, containing five or more apartments.

33(c) Any condominium project containing five or more
34condominiums, as defined in Section 783 of the Civil Code.

35(d) Any stock cooperative as defined in Section 11003.2,
36including any legal or beneficial interests therein, having or
37intended to have five or more shareholders.

38(e) Any limited-equity housing cooperative, as defined in
39Section 11003.4.

P4    1(f) In addition, the following interests shall be subject to this
2chapter and the regulations of the commissioner adopted pursuant
3thereto:

4(1) Any accompanying memberships or other rights or privileges
5created in, or in connection with, any of the forms of development
6referred to in subdivision (a), (b), (c), (d), or (e) by any deeds,
7conveyances, leases, subleases, assignments, declarations of
8restrictions, articles of incorporation, bylaws, or contracts
9applicable thereto.

10(2) Any interests or memberships in any owners’ association
11as defined in Section 4080 or 6528 of the Civil Code, created in
12connection with any of the forms of the development referred to
13in subdivision (a), (b), (c), (d), or (e).

14(g) Notwithstanding this section, time-share plans, exchange
15programs, incidental benefits, and short-term product subject to
16Chapter 2 (commencing with Section 11210) are not “subdivisions”
17or “subdivided lands” subject to this chapter.

18begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 11010.3 of the end insertbegin insertBusiness and Professions Codeend insert
19begin insert is amended to read:end insert

20

11010.3.  

begin deleteThe provisions of this end deletebegin insert(a)end insertbegin insertend insertbegin insertThis end insertchapter shall not apply
21to the proposed sale or lease of lots or other interests in a
22subdivisionbegin delete in which lots or other interests are (a)end deletebegin insert that isend insert limited
23to industrial or commercial uses bybegin delete zoningend deletebegin insert lawend insert orbegin delete (b) limited to
24industrial or commercial usesend delete
by a declaration of covenants,
25conditions, and restrictionsbegin delete, which declarationend deletebegin insert thatend insert has been
26recorded in the official records of the county or counties in which
27the subdivision is located.

begin insert

28(b) For the purposes of this section, “commercial use” includes,
29but is not limited to, the operation of a business that provides
30facilities for the overnight stay of its customers, employees, or
31agents.

end insert
32

begin deleteSEC. 5.end delete
33begin insertSEC. 6.end insert  

Section 23426.5 of the Business and Professions Code,
34as amended by Section 17 of Chapter 181 of the Statutes of 2012,
35is amended to read:

36

23426.5.  

(a) For purposes of this article, “club” also means
37any tennis club that maintains not less than four regulation tennis
38courts, together with the necessary facilities and clubhouse, has
39members paying regular monthly dues, has been in existence for
40not less than 45 years, and is not associated with a common interest
P5    1development as defined in Section 4100 or 6534 of the Civil Code,
2a community apartment project as defined in Section 11004 of this
3code, a project consisting of condominiums as defined in Section
4783 of the Civil Code, or a mobilehome park as defined in Section
518214 of the Health and Safety Code.

6(b) It shall be unlawful for any club licensed pursuant to this
7section to make any discrimination, distinction, or restriction
8against any person on account of age or any characteristic listed
9or defined in subdivision (b) or (e) of Section 51 of the Civil Code.

10

begin deleteSEC. 6.end delete
11begin insertSEC. 7.end insert  

Section 23428.20 of the Business and Professions
12Code
, as amended by Section 18 of Chapter 181 of the Statutes of
132012, is amended to read:

14

23428.20.  

(a) For the purposes of this article, “club” also
15means any bona fide nonprofit corporation that has been in
16existence for not less than nine years, has more than 8,500
17memberships issued and outstanding to owners of condominiums
18and owners of memberships in stock cooperatives, and owns,
19leases, operates, or maintains recreational facilities for its members.

20(b) For the purposes of this article, “club” also means any bona
21fide nonprofit corporation that was formed as a condominium
22homeowners’ association, has at least 250 members, has served
23daily meals to its members and guests for a period of not less than
2412 years, owns or leases, operates, and maintains a clubroom or
25rooms for its membership, has an annual fee of not less than nine
26hundred dollars ($900) per year per member, and has as a condition
27of membership that one member of each household be at least 54
28years of age.

29(c) Section 23399 and the numerical limitation of Section 23430
30shall not apply to a club defined in this section.

31(d) No license shall be issued pursuant to this section to any
32club that withholds membership or denies facilities or services to
33any person on account of any basis listed in subdivision (a) or (d)
34of Section 12955 of the Government Code, as those bases are
35defined in Sections 12926, 12926.1, subdivision (m) and paragraph
36(1) of subdivision (p) of Section 12955, and Section 12955.2 of
37the Government Code.

38(e) Notwithstanding subdivision (d), with respect to familial
39status, subdivision (d) shall not be construed to apply to housing
40for older persons, as defined in Section 12955.9 of the Government
P6    1Code. With respect to familial status, nothing in subdivision (d)
2shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
3and 799.5 of the Civil Code, relating to housing for senior citizens.
4Subdivision (d) of Section 51, Section 4760, and Section 6714 of
5the Civil Code, and subdivisions (n), (o), and (p) of Section 12955
6of the Government Code shall apply to subdivision (d).

7

begin deleteSEC. 7.end delete
8begin insertSEC. 8.end insert  

Section 714 of the Civil Code, as amended by Section
920 of Chapter 181 of the Statutes of 2012, is amended to read:

10

714.  

(a) Any covenant, restriction, or condition contained in
11any deed, contract, security instrument, or other instrument
12affecting the transfer or sale of, or any interest in, real property,
13and any provision of a governing document, as defined in Section
144150 or 6552, that effectively prohibits or restricts the installation
15or use of a solar energy system is void and unenforceable.

16(b) This section does not apply to provisions that impose
17reasonable restrictions on solar energy systems. However, it is the
18policy of the state to promote and encourage the use of solar energy
19systems and to remove obstacles thereto. Accordingly, reasonable
20restrictions on a solar energy system are those restrictions that do
21not significantly increase the cost of the system or significantly
22decrease its efficiency or specified performance, or that allow for
23an alternative system of comparable cost, efficiency, and energy
24conservation benefits.

25(c) (1) A solar energy system shall meet applicable health and
26safety standards and requirements imposed by state and local
27permitting authorities.

28(2) A solar energy system for heating water shall be certified
29by the Solar Rating Certification Corporation (SRCC) or other
30nationally recognized certification agencies. SRCC is a nonprofit
31third party supported by the United States Department of Energy.
32The certification shall be for the entire solar energy system and
33installation.

34(3) A solar energy system for producing electricity shall also
35meet all applicable safety and performance standards established
36by the National Electrical Code, the Institute of Electrical and
37Electronics Engineers, and accredited testing laboratories such as
38Underwriters Laboratories and, where applicable, rules of the
39Public Utilities Commission regarding safety and reliability.

40(d) For the purposes of this section:

P7    1(1) (A) For solar domestic water heating systems or solar
2swimming pool heating systems that comply with state and federal
3law, “significantly” means an amount exceeding 20 percent of the
4cost of the system or decreasing the efficiency of the solar energy
5system by an amount exceeding 20 percent, as originally specified
6and proposed.

7(B) For photovoltaic systems that comply with state and federal
8law, “significantly” means an amount not to exceed two thousand
9dollars ($2,000) over the system cost as originally specified and
10proposed, or a decrease in system efficiency of an amount
11exceeding 20 percent as originally specified and proposed.

12(2) “Solar energy system” has the same meaning as defined in
13paragraphs (1) and (2) of subdivision (a) of Section 801.5.

14(e) (1) Whenever approval is required for the installation or
15use of a solar energy system, the application for approval shall be
16processed and approved by the appropriate approving entity in the
17same manner as an application for approval of an architectural
18modification to the property, and shall not be willfully avoided or
19delayed.

20(2) For an approving entity that is an association, as defined in
21Section 4080 or 6528, and that is not a public entity, both of the
22following shall apply:

23(A) The approval or denial of an application shall be in writing.

24(B) If an application is not denied in writing within 60 days
25from the date of receipt of the application, the application shall be
26deemed approved, unless that delay is the result of a reasonable
27request for additional information.

28(f) Any entity, other than a public entity, that willfully violates
29this section shall be liable to the applicant or other party for actual
30damages occasioned thereby, and shall pay a civil penalty to the
31applicant or other party in an amount not to exceed one thousand
32dollars ($1,000).

33(g) In any action to enforce compliance with this section, the
34prevailing party shall be awarded reasonable attorney’s fees.

35(h) (1) A public entity that fails to comply with this section
36may not receive funds from a state-sponsored grant or loan program
37for solar energy. A public entity shall certify its compliance with
38the requirements of this section when applying for funds from a
39state-sponsored grant or loan program.

P8    1(2) A local public entity may not exempt residents in its
2jurisdiction from the requirements of this section.

3

begin deleteSEC. 8.end delete
4begin insertSEC. 9.end insert  

Section 714.1 of the Civil Code, as amended by Section
521 of Chapter 181 of the Statutes of 2012, is amended to read:

6

714.1.  

Notwithstanding Section 714, any association, as defined
7in Section 4080 or 6528, may impose reasonable provisions which:

8(a) Restrict the installation of solar energy systems installed in
9common areas, as defined in Section 4095 or 6532, to those
10systems approved by the association.

11(b) Require the owner of a separate interest, as defined in Section
124185 or 6564, to obtain the approval of the association for the
13installation of a solar energy system in a separate interest owned
14by another.

15(c) Provide for the maintenance, repair, or replacement of roofs
16or other building components.

17(d) Require installers of solar energy systems to indemnify or
18reimburse the association or its members for loss or damage caused
19by the installation, maintenance, or use of the solar energy system.

20

begin deleteSEC. 9.end delete
21begin insertSEC. 10.end insert  

Section 782 of the Civil Code, as amended by Section
2222 of Chapter 181 of the Statutes of 2012, is amended to read:

23

782.  

(a) Any provision in any deed of real property in
24California, whether executed before or after the effective date of
25this section, that purports to restrict the right of any persons to sell,
26lease, rent, use, or occupy the property to persons having any
27characteristic listed in subdivision (a) or (d) of Section 12955 of
28the Government Code, as those bases are defined in Sections
2912926, 12926.1, subdivision (m) and paragraph (1) of subdivision
30(p) of Section 12955 and Section 12955.2 of the Government Code,
31by providing for payment of a penalty, forfeiture, reverter, or
32otherwise, is void.

33(b) Notwithstanding subdivision (a), with respect to familial
34status, subdivision (a) shall not be construed to apply to housing
35for older persons, as defined in Section 12955.9 of the Government
36Code. With respect to familial status, nothing in subdivision (a)
37shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
38and 799.5 of this code, relating to housing for senior citizens.
39Subdivision (d) of Section 51, Section 4760, and Section 6714 of
P9    1this code, and subdivisions (n), (o), and (p) of Section 12955 of
2the Government Code shall apply to subdivision (a).

3

begin deleteSEC. 10.end delete
4begin insertSEC. 11.end insert  

Section 782.5 of the Civil Code, as amended by
5Section 23 of Chapter 181 of the Statutes of 2012, is amended to
6read:

7

782.5.  

(a) Any deed or other written instrument that relates to
8title to real property, or any written covenant, condition, or
9restriction annexed or made a part of, by reference or otherwise,
10any deed or instrument that relates to title to real property, which
11contains any provision that purports to forbid, restrict, or condition
12the right of any person or persons to sell, buy, lease, rent, use, or
13occupy the property on account of any basis listed in subdivision
14(a) or (d) of Section 12955 of the Government Code, as those bases
15are defined in Sections 12926, 12926.1, subdivision (m) and
16paragraph (1) of subdivision (p) of Section 12955, and Section
1712955.2 of the Government Code, with respect to any person or
18persons, shall be deemed to be revised to omit that provision.

19(b) Notwithstanding subdivision (a), with respect to familial
20status, subdivision (a) shall not be construed to apply to housing
21for older persons, as defined in Section 12955.9 of the Government
22Code. With respect to familial status, nothing in subdivision (a)
23shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
24and 799.5 of this code, relating to housing for senior citizens.
25Subdivision (d) of Section 51, Section 4760, and Section 6714 of
26this code, and subdivisions (n), (o), and (p) of Section 12955 of
27the Government Code shall apply to subdivision (a).

28(c) This section shall not be construed to limit or expand the
29powers of a court to reform a deed or other written instrument.

30

begin deleteSEC. 11.end delete
31begin insertSEC. 12.end insert  

Section 783 of the Civil Code, as amended by Section
3224 of Chapter 181 of the Statutes of 2012, is amended to read:

33

783.  

A condominium is an estate in real property described in
34Section 4125 or 6542. A condominium may, with respect to the
35duration of its enjoyment, be either (1) an estate of inheritance or
36perpetual estate, (2) an estate for life, (3) an estate for years, such
37as a leasehold or a subleasehold, or (4) any combination of the
38foregoing.

P10   1

begin deleteSEC. 12.end delete
2begin insertSEC. 13.end insert  

Section 783.1 of the Civil Code, as amended by
3Section 25 of Chapter 181 of the Statutes of 2012, is amended to
4read:

5

783.1.  

In a stock cooperative, as defined in Section 4190 or
66566, both the separate interest, as defined in paragraph (4) of
7subdivision (a) of Section 4185 or in paragraph (3) of subdivision
8(a) of Section 6564, and the correlative interest in the stock
9cooperative corporation, however designated, are interests in real
10property.

11

begin deleteSEC. 13.end delete
12begin insertSEC. 14.end insert  

Section 1098 of the Civil Code, as amended by
13Section 32 of Chapter 181 of the Statutes of 2012, is amended to
14 read:

15

1098.  

A “transfer fee” is any fee payment requirement imposed
16within a covenant, restriction, or condition contained in any deed,
17contract, security instrument, or other document affecting the
18transfer or sale of, or any interest in, real property that requires a
19fee be paid upon transfer of the real property. A transfer fee does
20not include any of the following:

21(a) Fees or taxes imposed by a governmental entity.

22(b) Fees pursuant to mechanics’ liens.

23(c) Fees pursuant to court-ordered transfers, payments, or
24judgments.

25(d) Fees pursuant to property agreements in connection with a
26legal separation or dissolution of marriage.

27(e) Fees, charges, or payments in connection with the
28administration of estates or trusts pursuant to Division 7
29(commencing with Section 7000), Division 8 (commencing with
30Section 13000), or Division 9 (commencing with Section 15000)
31of the Probate Code.

32(f) Fees, charges, or payments imposed by lenders or purchasers
33of loans, as these entities are described in subdivision (c) of Section
3410232 of the Business and Professions Code.

35(g) Assessments, charges, penalties, or fees authorized by the
36Davis-Stirling Common Interest Development Act (Part 5
37(commencing with Section 4000) of Division 4) or by the
38Commercial and Industrial Common Interest Development Act
39(Part 5.3 (commencing with Section 6500) of Division 4).

P11   1(h) Fees, charges, or payments for failing to comply with, or
2for transferring the real property prior to satisfying, an obligation
3to construct residential improvements on the real property.

4(i) Any fee reflected in a document recorded against the property
5on or before December 31, 2007, that is separate from any
6covenants, conditions, and restrictions, and that substantially
7complies with subdivision (a) of Section 1098.5 by providing a
8prospective transferee notice of the following:

9(1) Payment of a transfer fee is required.

10(2) The amount or method of calculation of the fee.

11(3) The date or circumstances under which the transfer fee
12payment requirement expires, if any.

13(4) The entity to which the fee will be paid.

14(5) The general purposes for which the fee will be used.

15

begin deleteSEC. 14.end delete
16begin insertSEC. 15.end insert  

Section 1133 of the Civil Code, as amended by
17Section 35 of Chapter 181 of the Statutes of 2012, is amended to
18 read:

19

1133.  

(a) If a lot, parcel, or unit of a subdivision is subject to
20a blanket encumbrance, as defined in Section 11013 of the Business
21and Professions Code, but is exempt from a requirement of
22compliance with Section 11013.2 of the Business and Professions
23Code, the subdivider, his or her agent, or representative, shall not
24sell, or lease for a term exceeding five years, the lot, parcel, or
25unit, nor cause it to be sold, or leased for a term exceeding five
26years, until the prospective purchaser or lessee of the lot, parcel,
27or unit has been furnished with and has signed a true copy of the
28following notice:
29

30BUYER/LESSEE IS AWARE OF THE FACT THAT THE
31LOT, PARCEL, OR UNIT WHICH HE OR SHE IS PROPOSING
32TO PURCHASE OR LEASE IS SUBJECT TO A DEED OF
33TRUST, MORTGAGE, OR OTHER LIEN KNOWN AS A
34 “BLANKET ENCUMBRANCE.”

35IF BUYER/LESSEE PURCHASES OR LEASES THIS LOT,
36PARCEL, OR UNIT, HE OR SHE COULD LOSE THAT
37INTEREST THROUGH FORECLOSURE OF THE BLANKET
38ENCUMBRANCE OR OTHER LEGAL PROCESS EVEN
39THOUGH BUYER/LESSEE IS NOT DELINQUENT IN HIS OR
P12   1HER PAYMENTS OR OTHER OBLIGATIONS UNDER THE
2MORTGAGE, DEED OF TRUST, OR LEASE.
3______  ________________
4 Date     Signature of
       
5Buyer or Lessee
6

7(b) “Subdivision,” as used in subdivision (a), means improved
8or unimproved land that is divided or proposed to be divided for
9the purpose of sale, lease, or financing, whether immediate or
10future, into two or more lots, parcels, or units and includes a
11condominium project, as defined in Section 4125 or 6542, a
12community apartment project, as defined in Section 4105, a stock
13cooperative, as defined in Section 4190 or 6566, and a limited
14equity housing cooperative, as defined in Section 4190.

15(c) The failure of the buyer or lessee to sign the notice shall not
16invalidate any grant, conveyance, lease, or encumbrance.

17(d) Any person or entity who willfully violates the provisions
18of this section shall be liable to the purchaser of a lot or unit which
19is subject to the provisions of this section for actual damages, and,
20in addition thereto, shall be guilty of a public offense punishable
21by a fine in an amount not to exceed five hundred dollars ($500).
22In an action to enforce the liability or fine, the prevailing party
23shall be awarded reasonable attorney’s fees.

24

begin deleteSEC. 15.end delete
25begin insertSEC. 16.end insert  

Section 1633.3 of the Civil Code, as amended by
26Section 36 of Chapter 181 of the Statutes of 2012, is amended to
27read:

28

1633.3.  

(a) Except as otherwise provided in subdivisions (b)
29and (c), this title applies to electronic records and electronic
30signatures relating to a transaction.

31(b) This title does not apply to transactions subject to the
32following laws:

33(1) A law governing the creation and execution of wills, codicils,
34or testamentary trusts.

35(2) Division 1 (commencing with Section 1101) of the Uniform
36Commercial Code, except Sections 1107 and 1206.

37(3) Divisions 3 (commencing with Section 3101), 4
38(commencing with Section 4101), 5 (commencing with Section
395101), 8 (commencing with Section 8101), 9 (commencing with
P13   1Section 9101), and 11 (commencing with Section 11101) of the
2Uniform Commercial Code.

3(4) A law that requires that specifically identifiable text or
4disclosures in a record or a portion of a record be separately signed,
5including initialed, from the record. However, this paragraph does
6not apply to Section 1677 or 1678 of this code or Section 1298 of
7the Code of Civil Procedure.

8(c) This title does not apply to any specific transaction described
9in Section 17511.5 of the Business and Professions Code, Section
1056.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6, 1689.7,
11or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
12Title 5 of Part 2 of Division 3 of, Section 1720, 1785.15, 1789.14,
131789.16, 1789.33, or 1793.23 of, Chapter 1 (commencing with
14Section 1801) of Title 2 of Part 4 of Division 3 of, Section 1861.24,
151862.5, 1917.712, 1917.713, 1950.5, 1950.6, 1983, 2924b, 2924c,
162924f, 2924i, 2924j, 2924.3, or 2937 of, Article 1.5 (commencing
17with Section 2945) of Chapter 2 of Title 14 of Part 4 of Division
183 of, Section 2954.5 or 2963 of, Chapter 2b (commencing with
19Section 2981) or 2d (commencing with Section 2985.7) of Title
2014 of Part 4 of Division 3 of, Section 3071.5 of, Part 5
21(commencing with Section 4000) of Division 4 of, or Part 5.3
22(commencing with Section 6500) of Division 4 of this code,
23subdivision (b) of Section 18608 or Section 22328 of the Financial
24Code, Section 1358.15, 1365, 1368.01, 1368.1, 1371, or 18035.5
25of the Health and Safety Code, Section 662, 663, 664, 667.5, 673,
26677, 678, 678.1, 786, 10086, 10113.7, 10127.7, 10127.9, 10127.10,
2710197, 10199.44, 10199.46, 10235.16, 10235.40, 10509.4, 10509.7,
2811624.09, or 11624.1 of the Insurance Code, Section 779.1,
2910010.1, or 16482 of the Public Utilities Code, or Section 9975
30or 11738 of the Vehicle Code. An electronic record may not be
31substituted for any notice that is required to be sent pursuant to
32Section 1162 of the Code of Civil Procedure. Nothing in this
33subdivision shall be construed to prohibit the recordation of any
34document with a county recorder by electronic means.

35(d) This title applies to an electronic record or electronic
36signature otherwise excluded from the application of this title under
37subdivision (b) when used for a transaction subject to a law other
38than those specified in subdivision (b).

39(e) A transaction subject to this title is also subject to other
40applicable substantive law.

P14   1(f) The exclusion of a transaction from the application of this
2title under subdivision (b) or (c) shall be construed only to exclude
3the transaction from the application of this title, but shall not be
4construed to prohibit the transaction from being conducted by
5electronic means if the transaction may be conducted by electronic
6means under any other applicable law.

7

begin deleteSEC. 16.end delete
8begin insertSEC. 17.end insert  

Section 2924b of the Civil Code is amended to read:

9

2924b.  

(a)Any person desiring a copy of any notice of default
10
and of any notice of sale under any deed of trust or mortgage with
11
power of sale upon real property or an estate for years therein, as
12
to which deed of trust or mortgage the power of sale cannot be
13
exercised until these notices are given for the time and in the
14
manner provided in Section 2924 may, at any time subsequent to
15
recordation of the deed of trust or mortgage and prior to recordation
16
of notice of default thereunder, cause to be filed for record in the
17
office of the recorder of any county in which any part or parcel of
18
the real property is situated, a duly acknowledged request for a
19
copy of the notice of default and of sale. This request shall be
20
signed and acknowledged by the person making the request,
21
specifying the name and address of the person to whom the notice
22
is to be mailed, shall identify the deed of trust or mortgage by
23
stating the names of the parties thereto, the date of recordation
24
thereof, and the book and page where the deed of trust or mortgage
25
is recorded or the recorder’s number, and shall be in substantially
26
the following form:
27

 

 “In accordance with Section 2924b, Civil Code, request is hereby
made that a copy of any notice of default and a copy of any notice of sale
under the deed of trust (or mortgage) recorded ______, ____, in Book
_____ page ____ records of ____ County, (or filed for record with
recorder’s serial number ____, _______  County) California, executed
by ____ as trustor (or mortgagor) in which ________ is named as
beneficiary (or mortgagee) and ______________ as trustee be mailed to

    at  

   .

Name

Address

NOTICE:  A copy of any notice of default and of any notice of sale will be
sent only to the address contained in this recorded request. If your address changes, a new request must be recorded.

   

Signature    

 

P15   1Upon the filing for record of the request, the recorder shall index
2in the general index of grantors the names of the trustors (or
3mortgagors) recited therein and the names of persons requesting
4copies.

5(b) The mortgagee, trustee, or other person authorized to record
6the notice of default or the notice of sale shall do each of the
7following:

8(1) Within 10 business days following recordation of the notice
9of default, deposit or cause to be deposited in the United States
10mail an envelope, sent by registered or certified mail with postage
11prepaid, containing a copy of the notice with the recording date
12shown thereon, addressed to each person whose name and address
13are set forth in a duly recorded request therefor, directed to the
14address designated in the request and to each trustor or mortgagor
15at his or her last known address if different than the address
16specified in the deed of trust or mortgage with power of sale.

17(2) At least 20 days before the date of sale, deposit or cause to
18be deposited in the United States mail an envelope, sent by
19registered or certified mail with postage prepaid, containing a copy
20of the notice of the time and place of sale, addressed to each person
21whose name and address are set forth in a duly recorded request
22therefor, directed to the address designated in the request and to
23each trustor or mortgagor at his or her last known address if
24different than the address specified in the deed of trust or mortgage
25with power of sale.

26(3) As used in paragraphs (1) and (2), the “last known address”
27of each trustor or mortgagor means the last business or residence
28physical address actually known by the mortgagee, beneficiary,
29trustee, or other person authorized to record the notice of default.
30For the purposes of this subdivision, an address is “actually known”
31if it is contained in the original deed of trust or mortgage, or in
32any subsequent written notification of a change of physical address
33from the trustor or mortgagor pursuant to the deed of trust or
34mortgage. For the purposes of this subdivision, “physical address”
35does not include an email or any form of electronic address for a
36trustor or mortgagor. The beneficiary shall inform the trustee of
37the trustor’s last address actually known by the beneficiary.
38However, the trustee shall incur no liability for failing to send any
39notice to the last address unless the trustee has actual knowledge
40of it.

P16   1(4) A “person authorized to record the notice of default or the
2notice of sale” shall include an agent for the mortgagee or
3beneficiary, an agent of the named trustee, any person designated
4in an executed substitution of trustee, or an agent of that substituted
5trustee.

6(c) The mortgagee, trustee, or other person authorized to record
7the notice of default or the notice of sale shall do the following:

8(1) Within one month following recordation of the notice of
9default, deposit or cause to be deposited in the United States mail
10an envelope, sent by registered or certified mail with postage
11prepaid, containing a copy of the notice with the recording date
12shown thereon, addressed to each person set forth in paragraph
13(2), provided that the estate or interest of any person entitled to
14receive notice under this subdivision is acquired by an instrument
15sufficient to impart constructive notice of the estate or interest in
16the land or portion thereof that is subject to the deed of trust or
17mortgage being foreclosed, and provided the instrument is recorded
18in the office of the county recorder so as to impart that constructive
19notice prior to the recording date of the notice of default and
20provided the instrument as so recorded sets forth a mailing address
21that the county recorder shall use, as instructed within the
22instrument, for the return of the instrument after recording, and
23which address shall be the address used for the purposes of mailing
24notices herein.

25(2) The persons to whom notice shall be mailed under this
26subdivision are:

27(A) The successor in interest, as of the recording date of the
28notice of default, of the estate or interest or any portion thereof of
29the trustor or mortgagor of the deed of trust or mortgage being
30foreclosed.

31(B) The beneficiary or mortgagee of any deed of trust or
32mortgage recorded subsequent to the deed of trust or mortgage
33being foreclosed, or recorded prior to or concurrently with the
34deed of trust or mortgage being foreclosed but subject to a recorded
35agreement or a recorded statement of subordination to the deed of
36trust or mortgage being foreclosed.

37(C) The assignee of any interest of the beneficiary or mortgagee
38described in subparagraph (B), as of the recording date of the notice
39of default.

P17   1(D) The vendee of any contract of sale, or the lessee of any
2lease, of the estate or interest being foreclosed that is recorded
3subsequent to the deed of trust or mortgage being foreclosed, or
4recorded prior to or concurrently with the deed of trust or mortgage
5being foreclosed but subject to a recorded agreement or statement
6of subordination to the deed of trust or mortgage being foreclosed.

7(E) The successor in interest to the vendee or lessee described
8in subparagraph (D), as of the recording date of the notice of
9default.

10(F) The office of the Controller, Sacramento, California, where,
11as of the recording date of the notice of default, a “Notice of Lien
12 for Postponed Property Taxes” has been recorded against the real
13property to which the notice of default applies.

14(3) At least 20 days before the date of sale, deposit or cause to
15be deposited in the United States mail an envelope, sent by
16registered or certified mail with postage prepaid, containing a copy
17of the notice of the time and place of sale addressed to each person
18to whom a copy of the notice of default is to be mailed as provided
19in paragraphs (1) and (2), and addressed to the office of any state
20taxing agency, Sacramento, California, that has recorded,
21subsequent to the deed of trust or mortgage being foreclosed, a
22notice of tax lien prior to the recording date of the notice of default
23against the real property to which the notice of default applies.

24(4) Provide a copy of the notice of sale to the Internal Revenue
25Service, in accordance with Section 7425 of the Internal Revenue
26Code and any applicable federal regulation, if a “Notice of Federal
27Tax Lien under Internal Revenue Laws” has been recorded,
28subsequent to the deed of trust or mortgage being foreclosed,
29against the real property to which the notice of sale applies. The
30failure to provide the Internal Revenue Service with a copy of the
31notice of sale pursuant to this paragraph shall be sufficient cause
32to rescind the trustee’s sale and invalidate the trustee’s deed, at
33the option of either the successful bidder at the trustee’s sale or
34the trustee, and in either case with the consent of the beneficiary.
35Any option to rescind the trustee’s sale pursuant to this paragraph
36shall be exercised prior to any transfer of the property by the
37successful bidder to a bona fide purchaser for value. A recision of
38the trustee’s sale pursuant to this paragraph may be recorded in a
39notice of recision pursuant to Section 1058.5.

P18   1(5) The mailing of notices in the manner set forth in paragraph
2(1) shall not impose upon any licensed attorney, agent, or employee
3of any person entitled to receive notices as herein set forth any
4duty to communicate the notice to the entitled person from the fact
5that the mailing address used by the county recorder is the address
6of the attorney, agent, or employee.

7(d) Any deed of trust or mortgage with power of sale hereafter
8executed upon real property or an estate for years therein may
9contain a request that a copy of any notice of default and a copy
10of any notice of sale thereunder shall be mailed to any person or
11party thereto at the address of the person given therein, and a copy
12of any notice of default and of any notice of sale shall be mailed
13to each of these at the same time and in the same manner required
14as though a separate request therefor had been filed by each of
15these persons as herein authorized. If any deed of trust or mortgage
16with power of sale executed after September 19, 1939, except a
17deed of trust or mortgage of any of the classes excepted from the
18provisions of Section 2924, does not contain a mailing address of
19the trustor or mortgagor therein named, and if no request for special
20notice by the trustor or mortgagor in substantially the form set
21forth in this section has subsequently been recorded, a copy of the
22notice of default shall be published once a week for at least four
23weeks in a newspaper of general circulation in the county in which
24the property is situated, the publication to commence within 10
25business days after the filing of the notice of default. In lieu of
26publication, a copy of the notice of default may be delivered
27personally to the trustor or mortgagor within the 10 business days
28or at any time before publication is completed, or by posting the
29notice of default in a conspicuous place on the property and mailing
30the notice to the last known address of the trustor or mortgagor.

31(e) Any person required to mail a copy of a notice of default or
32notice of sale to each trustor or mortgagor pursuant to subdivision
33(b) or (c) by registered or certified mail shall simultaneously cause
34to be deposited in the United States mail, with postage prepaid and
35mailed by first-class mail, an envelope containing an additional
36copy of the required notice addressed to each trustor or mortgagor
37at the same address to which the notice is sent by registered or
38certified mail pursuant to subdivision (b) or (c). The person shall
39execute and retain an affidavit identifying the notice mailed,
40showing the name and residence or business address of that person,
P19   1that he or she is over 18 years of age, the date of deposit in the
2mail, the name and address of the trustor or mortgagor to whom
3sent, and that the envelope was sealed and deposited in the mail
4with postage fully prepaid. In the absence of fraud, the affidavit
5required by this subdivision shall establish a conclusive
6presumption of mailing.

7(f) (1) Notwithstanding subdivision (a), with respect to separate
8interests governed by an association, as defined in Section 4080
9or 6528, the association may cause to be filed in the office of the
10recorder in the county in which the separate interests are situated
11a request that a mortgagee, trustee, or other person authorized to
12record a notice of default regarding any of those separate interests
13mail to the association a copy of any trustee’s deed upon sale
14concerning a separate interest. The request shall include a legal
15description or the assessor’s parcel number of all the separate
16interests. A request recorded pursuant to this subdivision shall
17include the name and address of the association and a statement
18that it is an association as defined in Section 4080 or 6528.
19Subsequent requests of an association shall supersede prior
20requests. A request pursuant to this subdivision shall be recorded
21before the filing of a notice of default. The mortgagee, trustee, or
22other authorized person shall mail the requested information to
23the association within 15 business days following the date of the
24trustee’s sale. Failure to mail the request, pursuant to this
25subdivision, shall not affect the title to real property.

26(2) A request filed pursuant to paragraph (1) does not, for
27purposes of Section 27288.1 of the Government Code, constitute
28a document that either effects or evidences a transfer or
29encumbrance of an interest in real property or that releases or
30terminates any interest, right, or encumbrance of an interest in real
31property.

32(g) No request for a copy of any notice filed for record pursuant
33to this section, no statement or allegation in the request, and no
34record thereof shall affect the title to real property or be deemed
35notice to any person that any person requesting copies of notice
36has or claims any right, title, or interest in, or lien or charge upon
37the property described in the deed of trust or mortgage referred to
38therein.

39(h) “Business day,” as used in this section, has the meaning
40specified in Section 9.

P20   1

begin deleteSEC. 17.end delete
2begin insertSEC. 18.end insert  

Section 2955.1 of the Civil Code, as amended by
3Section 41 of Chapter 181 of the Statutes of 2012, is amended to
4 read:

5

2955.1.  

(a) Any lender originating a loan secured by the
6borrower’s separate interest in a condominium project, as defined
7in Section 4125 or 6542, which requires earthquake insurance or
8imposes a fee or any other condition in lieu thereof pursuant to an
9underwriting requirement imposed by an institutional third-party
10purchaser shall disclose all of the following to the potential
11borrower:

12(1) That the lender or the institutional third party in question
13requires earthquake insurance or imposes a fee or any other
14condition in lieu thereof pursuant to an underwriting requirement
15imposed by an institutional third-party purchaser.

16(2) That not all lenders or institutional third parties require
17earthquake insurance or impose a fee or any other condition in lieu
18thereof pursuant to an underwriting requirement imposed by an
19institutional third-party purchaser.

20(3) Earthquake insurance may be required on the entire
21condominium project.

22(4) That lenders or institutional third parties may also require
23that a condominium project maintain, or demonstrate an ability to
24maintain, financial reserves in the amount of the earthquake
25insurance deductible.

26(b) For the purposes of this section, “institutional third party”
27means the Federal Home Loan Mortgage Corporation, the Federal
28National Mortgage Association, the Government National
29Mortgage Association, and other substantially similar institutions,
30whether public or private.

31(c) The disclosure required by this section shall be made in
32writing by the lender as soon as reasonably practicable.

33

begin deleteSEC. 18.end delete
34begin insertSEC. 19.end insert  

Section 4202 of the Civil Code is amended to read:

35

4202.  

This part does not apply to a commercial or industrial
36common interest development, as defined in Section 6531.

37

begin deleteSEC. 19.end delete
38begin insertSEC. 20.end insert  

Part 5.3 (commencing with Section 6500) is added
39to Division 4 of the Civil Code, to read:

 

P21   1PART 5.3.  Commercial and Industrial Common
2Interest Developments

3

3 

4Chapter  1. General Provisions
5

5 

6Article 1.  Preliminary Provisions
7

 

8

6500.  

This part shall be known, and may be cited, as the
9Commercial and Industrial Common Interest Development Act.
10In a provision of this part, the part may be referred to as the act.

11

6502.  

Division, part, title, chapter, article, and section headings
12do not in any manner affect the scope, meaning, or intent of this
13act.

14

6505.  

Nothing in the act that added this part shall be construed
15to invalidate a document prepared or action taken before January
161, 2014, if the document or action was proper under the law
17governing common interest developments at the time that the
18document was prepared or the action was taken. For the purposes
19of this section, “document” does not include a governing document.

20

6510.  

Unless a contrary intent is clearly expressed, a local
21zoning ordinance is construed to treat like structures, lots, parcels,
22areas, or spaces in like manner regardless of the form of the
23common interest development.

24

6512.  

(a) If a provision of this act requires that a document be
25delivered to an association, the document shall be delivered to the
26begin insert person designated to receive documents on behalf of the
27association, in a written notice delivered by the association to
28members by individual delivery. If notice of this designation has
29not been given, the document shall be delivered to the end insert
president
30or secretary of the association.

31(b) A document delivered pursuant to this section may be
32delivered by any of the following methods:

33(1) First-class mail, postage prepaid, registered or certified mail,
34express mail, or overnight delivery by an express service carrier.

35(2) By email, facsimile, or other electronic means, if the
36association has assented to that method of delivery.

37(3) By personal delivery, if the association has assented to that
38method of delivery. If the association accepts a document by
39personal delivery it shall provide a written receipt acknowledging
40delivery of the document.

P22   1

6514.  

(a) If a provision of this act requires that an association
2deliver a document by “individual delivery” or “individual notice,”
3the document shall be delivered by one of the following methods:

4(1) First-class mail, postage prepaid, registered or certified mail,
5express mail, or overnight delivery by an express service carrier.
6The document shall be addressed to the recipient at the address
7last shown on the books of the association.

8(2) Email, facsimile, or other electronic means, if the recipient
9has consented, in writing, to that method of delivery. The consent
10may be revoked, in writing, by the recipient.

11(b) For the purposes of this section, an unrecorded provision of
12the governing documents providing for a particular method of
13delivery does not constitute agreement by a member to that method
14of delivery.

15

6518.  

(a) This section governs the delivery of a document
16pursuant to this act.

17(b) If a document is delivered by mail, delivery is deemed to
18be complete on deposit into the United States mail.

19(c) If a document is delivered by electronic means, delivery is
20complete at the time of transmission.

21

6520.  

If the association or a member has consented to receive
22information by electronic delivery, and a provision of this act
23requires that the information be in writing, that requirement is
24satisfied if the information is provided in an electronic record
25capable of retention by the recipient at the time of receipt. An
26electronic record is not capable of retention by the recipient if the
27sender or its information processing system inhibits the ability of
28the recipient to print or store the electronic record.

29

6522.  

If a provision of this act requires that an action be
30approved by a majority of all members, the action shall be approved
31or ratified by an affirmative vote of a majority of the votes entitled
32to be cast.

33

6524.  

If a provision of this act requires that an action be
34approved by a majority of a quorum of the members, the action
35shall be approved or ratified by an affirmative vote of a majority
36of the votes represented and votingbegin delete at a duly held meeting at which
37a quorum is presentend delete
begin insert in a duly held election in which a quorum is
38representedend insert
, which affirmative votes also constitute a majority of
39the required quorum.

 

P23   1Article 2.  Definitions
2

 

3

6526.  

The definitions in this article govern the construction of
4this act.

5

6528.  

“Association” means a nonprofit corporation or
6unincorporated association created for the purpose of managing a
7common interest development.

8

6530.  

“Board” means the board of directors of the association.

9

6531.  

A “commercial or industrial common interest
10development” means a common interest development that is limited
11to industrial or commercial uses bybegin delete zoningend deletebegin insert lawend insert or by a declaration
12of covenants, conditions, and restrictions that has been recorded
13in the official records of each county in which the common interest
14development is located.begin insert For the purposes of this section,
15“commercial use” includes, but is not limited to, the operation of
16a business that provides facilities for the overnight stay of its
17customers, employees, or agents.end insert

18

6532.  

(a) “Common area” means the entire common interest
19development except the separate interests therein. The estate in
20the common area may be a fee, a life estate, an estate for years, or
21any combination of the foregoing.

22(b) Notwithstanding subdivision (a), in a planned development
23described in subdivision (b) of Section 6562, the common area
24may consist of mutual or reciprocal easement rights appurtenant
25to the separate interests.

26

6534.  

“Common interest development” means any of the
27following:

28(a) A condominium project.

29(b) A planned development.

30(c) A stock cooperative.

31

6540.  

“Condominium plan” means a plan described in Section
326624.

33

6542.  

(a) A “condominium project” means a real property
34development consisting of condominiums.

35(b) A condominium consists of an undivided interest in common
36in a portion of real property coupled with a separate interest in
37space called a unit, the boundaries of which are described on a
38recorded final map, parcel map, or condominium plan in sufficient
39detail to locate all boundaries thereof. The area within these
40boundaries may be filled with air, earth, water, or fixtures, or any
P24   1combination thereof, and need not be physically attached to land
2except by easements for access and, if necessary, support. The
3description of the unit may refer to (1) boundaries described in the
4recorded final map, parcel map, or condominium plan, (2) physical
5 boundaries, either in existence, or to be constructed, such as walls,
6floors, and ceilings of a structure or any portion thereof, (3) an
7entire structure containing one or more units, or (4) any
8combination thereof.

9(c) The portion or portions of the real property held in undivided
10interest may be all of the real property, except for the separate
11interests, or may include a particular three-dimensional portion
12thereof, the boundaries of which are described on a recorded final
13map, parcel map, or condominium plan. The area within these
14boundaries may be filled with air, earth, water, or fixtures, or any
15combination thereof, and need not be physically attached to land
16except by easements for access and, if necessary, support.

17(d) An individual condominium within a condominium project
18may include, in addition, a separate interest in other portions of
19the real property.

20

6544.  

“Declarant” means the person or group of persons
21designated in the declaration as declarant, or if no declarant is
22designated, the person or group of persons who sign the original
23declaration or who succeed to special rights, preferences, or
24privileges designated in the declaration as belonging to the signator
25of the original declaration.

26

6546.  

“Declaration” means the document, however
27denominated, that contains the information required by Section
286614.

29

6548.  

“Director” means a natural person who serves on the
30board.

31

6550.  

(a) “Exclusive use common area” means a portion of
32the common area designated by the declaration for the exclusive
33use of one or more, but fewer than all, of the owners of the separate
34interests and which is or will be appurtenant to the separate interest
35or interests.

36(b) Unless the declaration otherwise provides, any shutters,
37awnings, window boxes, doorsteps, stoops, porches, balconies,
38patios, exterior doors, doorframes, and hardware incident thereto,
39screens and windows or other fixtures designed to serve a single
40separate interest, but located outside the boundaries of the separate
P25   1interest, are exclusive use common area allocated exclusively to
2that separate interest.

3(c) Notwithstanding the provisions of the declaration, internal
4and external telephone wiring designed to serve a single separate
5interest, but located outside the boundaries of the separate interest,
6is exclusive use common area allocated exclusively to that separate
7interest.

8

6552.  

“Governing documents” means the declaration and any
9other documents, such as bylaws, operating rules, articles of
10incorporation, or articles of association, which govern the operation
11of the common interest development or association.

12

6553.  

“Individual notice” means the delivery of a document
13pursuant to Section 6514.

14

6554.  

“Member” means an owner of a separate interest.

15

6560.  

“Person” means a natural person, corporation,
16government or governmental subdivision or agency, business trust,
17estate, trust, partnership, limited liability company, association,
18or other entity.

19

6562.  

“Planned development” means a real property
20development other than a condominium project, or a stock
21cooperative, having either or both of the following features:

22(a) Common area that is owned either by an association or in
23common by the owners of the separate interests who possess
24appurtenant rights to the beneficial use and enjoyment of the
25common area.

26(b) Common area and an association that maintains the common
27area with the power to levy assessments that may become a lien
28upon the separate interests in accordance with Article 2
29(commencing with Section 6808) of Chapter 7.

30

6564.  

(a) “Separate interest” has the following meanings:

31(1) In a condominium project, “separate interest” means a
32separately owned unit, as specified in Section 6542.

33(2) In a planned development, “separate interest” means a
34separately owned lot, parcel, area, or space.

35(3) In a stock cooperative, “separate interest” means the
36exclusive right to occupy a portion of the real property, as specified
37in Section 6566.

38(b) Unless the declaration or condominium plan, if any exists,
39otherwise provides, if walls, floors, or ceilings are designated as
40boundaries of a separate interest, the interior surfaces of the
P26   1perimeter walls, floors, ceilings, windows, doors, and outlets
2located within the separate interest are part of the separate interest
3and any other portions of the walls, floors, or ceilings are part of
4the common area.

5(c) The estate in a separate interest may be a fee, a life estate,
6an estate for years, or any combination of the foregoing.

7

6566.  

“Stock cooperative” means a development in which a
8corporation is formed or availed of, primarily for the purpose of
9holding title to, either in fee simple or for a term of years, improved
10real property, and all or substantially all of the shareholders of the
11corporation receive a right of exclusive occupancy in a portion of
12the real property, title to which is held by the corporation. The
13owners’ interest in the corporation, whether evidenced by a share
14of stock, a certificate of membership, or otherwise, shall be deemed
15to be an interest in a common interest development and a real estate
16development for purposes of subdivision (f) of Section 25100 of
17the Corporations Code.

18 

19Chapter  2. Application of Act
20

 

21

6580.  

Subject to Section 6582, this act applies and a common
22interest development is created whenever a separate interest
23coupled with an interest in the common area or membership in the
24association is, or has been, conveyed, provided all of the following
25are recorded:

26(a) A declaration.

27(b) A condominium plan, if any exists.

28(c) A final map or parcel map, if Division 2 (commencing with
29Section 66410) of Title 7 of the Government Code requires the
30recording of either a final map or parcel map for the common
31interest development.

32

6582.  

(a) This act applies only to a commercial or industrial
33common interest development.

34(b) Nothing in this act may be construed to apply to a real
35property development that does not contain common area. This
36subdivision is declaratory of existing law.

 

P27   1Chapter  3. Governing Documents
2

2 

3Article 1.  General Provisions
4

 

5

6600.  

(a) To the extent of anybegin delete inconsistencyend deletebegin insert conflictend insert between
6the governing documents and the law, the lawbegin delete controlsend deletebegin insert shall
7prevailend insert
.

8(b) To the extent of anybegin delete inconsistencyend deletebegin insert conflictend insert between the
9articles of incorporation and the declaration, the declaration
10begin delete controlsend deletebegin insert shall prevailend insert.

11(c) To the extent of anybegin delete inconsistencyend deletebegin insert conflictend insert between the
12bylaws and the articles of incorporation or declaration, the articles
13of incorporation or declarationbegin delete controlend deletebegin insert shall prevailend insert.

14(d) To the extent of anybegin delete inconsistencyend deletebegin insert conflictend insert between the
15operating rules and the bylaws, articles of incorporation, or
16declaration, the bylaws, articles of incorporation, or declaration
17begin delete controlend deletebegin insert shall prevailend insert.

18

6602.  

Any deed, declaration, or condominium plan for a
19common interest development shall be liberally construed to
20facilitate the operation of the common interest development, and
21its provisions shall be presumed to be independent and severable.
22Nothing in Article 3 (commencing with Section 715) of Chapter
232 of Title 2 of Part 1 of Division 2 shall operate to invalidate any
24provisions of the governing documents.

25

6604.  

In interpreting deeds and condominium plans, the existing
26physical boundaries of a unit in a condominium project, when the
27boundaries of the unit are contained within a building, or of a unit
28reconstructed in substantial accordance with the original plans
29thereof, shall be conclusively presumed to be its boundaries rather
30than the metes and bounds expressed in the deed or condominium
31plan, if any exists, regardless of settling or lateral movement of
32the building and regardless of minor variance between boundaries
33shown on the plan or in the deed and those of the building.

34

6606.  

(a) No declaration or other governing document shall
35include a restrictive covenant in violation of Section 12955 of the
36Government Code.

37(b) Notwithstanding any other provision of law or provision of
38the governing documents, the board, without approval of the
39members, shall amend any declaration or other governing document
40that includes a restrictive covenant prohibited by this section to
P28   1delete the restrictive covenant, and shall restate the declaration or
2other governing document without the restrictive covenant but
3with no other change to the declaration or governing document.

4(c) If the declaration is amended under this section, the board
5shall record the restated declaration in each county in which the
6common interest development is located. If the articles of
7incorporation are amended under this section, the board shall file
8a certificate of amendment with the Secretary of State pursuant to
9Section 7814 of the Corporations Code.

10(d) If after providing written notice to an association, pursuant
11to Section 6512, requesting that the association delete a restrictive
12covenant that violates subdivision (a), and the association fails to
13delete the restrictive covenant within 30 days of receiving the
14notice, the Department of Fair Employment and Housing, a city
15or county in which a common interest development is located, or
16any person may bring an action against the association for
17injunctive relief to enforce subdivision (a). The court may award
18attorney’s fees to the prevailing party.

19

6608.  

(a) Notwithstanding any provision of the governing
20documents to the contrary, the board may, after the developer has
21completed construction of the development, has terminated
22construction activities, and has terminated marketing activities for
23the sale, lease, or other disposition of separate interests within the
24development, adopt an amendment deleting from any of the
25governing documents any provision which is unequivocally
26designed and intended, or which by its nature can only have been
27designed or intended, to facilitate the developer in completing the
28construction or marketing of the development. However, provisions
29of the governing documents relative to a particular construction
30or marketing phase of the development may not be deleted under
31the authorization of this subdivision until that construction or
32marketing phase has been completed.

33(b) The provisions which may be deleted by action of the board
34shall be limited to those which provide for access by the developer
35over or across the common area for the purposes of (1) completion
36of construction of the development, and (2) the erection,
37construction, or maintenance of structures or other facilities
38designed to facilitate the completion of construction or marketing
39of separate interests.

P29   1(c) At least 30 days prior to taking action pursuant to subdivision
2(a), the board shall deliver to all members, by individual delivery
3pursuant to Section 6514, (1) a copy of all amendments to the
4governing documents proposed to be adopted under subdivision
5(a), and (2) a notice of the time, date, and place the board will
6consider adoption of the amendments.

7 The board may consider adoption of amendments to the
8governing documents pursuant to subdivision (a) only at a meeting
9that is open to all members, who shall be given opportunity to
10make comments thereon. All deliberations of the board on any
11action proposed under subdivision (a) shall only be conducted in
12an open meeting.

13(d) The board may not amend the governing documents pursuant
14to this section without the approval of a majority of a quorum of
15the members, pursuant to Section 6524. For the purposes of this
16section, “quorum” means more than 50 percent of the members
17who own no more than two separate interests in the development.

18

6610.  

(a) Notwithstanding any other law or provision of the
19governing documents, if the governing documents include a
20reference to a provision of the Davis-Stirling Common Interest
21Development Act that was continued in a new provision by the
22act that added this section, the board may amend the governing
23documents, solely to correct the cross-reference, by adopting a
24board resolution that shows the correction. Member approval is
25not required in order to adopt a resolution pursuant to this section.

26(b) A declaration that is corrected under this section may be
27restated in corrected form and recorded, provided that a copy of
28the board resolution authorizing the corrections is recorded along
29with the restated declaration.

30 

31Article 2.  Declaration
32

 

33

6614.  

(a) A declaration, recorded on or after January 1, 1986,
34shall contain a legal description of the common interest
35development, and a statement that the common interest
36development is a condominium project, planned development,
37stock cooperative, or combination thereof. The declaration shall
38additionally set forth the name of the association and the
39restrictions on the use or enjoyment of any portion of the common
P30   1interest development that are intended to be enforceable equitable
2servitudes.

3(b) The declaration may contain any other matters the declarant
4or the members consider appropriate.

5

6616.  

Except to the extent that a declaration provides by its
6express terms that it is not amendable, in whole or in part, a
7declaration that fails to include provisions permitting its
8amendment at all times during its existence may be amended at
9any time.

10

6618.  

(a) The Legislature finds that there are common interest
11developments that have been created with deed restrictions that
12do not provide a means for the members to extend the term of the
13declaration. The Legislature further finds that covenants and
14restrictions, contained in the declaration, are an appropriate method
15for protecting the common plan of developments and to provide
16for a mechanism for financial support for the upkeep of common
17area including, but not limited to, roofs, roads, heating systems,
18and recreational facilities. If declarations terminate prematurely,
19common interest developments may deteriorate and the supply of
20affordable units could be impacted adversely. The Legislature
21further finds and declares that it is in the public interest to provide
22a vehicle for extending the term of the declaration if the extension
23is approved by a majority of all members, pursuant to Section
246522.

25(b) A declaration that specifies a termination date, but that
26contains no provision for extension of the termination date, may
27be extended, before its termination date, by the approval of
28members pursuant to Section 6620.

29(c) No single extension of the terms of the declaration made
30pursuant to this section shall exceed the initial term of the
31declaration or 20 years, whichever is less. However, more than
32one extension may occur pursuant to this section.

33

6620.  

(a) A declaration may be amended pursuant to the
34declaration or this act. An amendment is effective after all of the
35following requirements have been met:

36(1) The proposed amendment has been delivered by individual
37notice to all members not less than 15 days and not more than 60
38days prior to any approval being solicited.

P31   1(2) The amendment has been approved by the percentage of
2members required by the declaration and any other person whose
3approval is required by the declaration.

4(3) That fact has been certified in a writing executed and
5acknowledged by the officer designated in the declaration or by
6the association for that purpose, or if no one is designated, by the
7president of the association.

8(4) The amendment has been recorded in each county in which
9a portion of the common interest development is located.

10(b) If the declaration does not specify the percentage of members
11who must approve an amendment of the declaration, an amendment
12may be approved by a majority of all members, pursuant to Section
136522.

14 

15Article 3.  Articles of Incorporation
16

 

17

6622.  

(a) The articles of incorporation of an association filed
18with the Secretary of State shall include a statement, which shall
19be in addition to the statement of purposes of the corporation, that
20does all of the following:

21(1) Identifies the corporation as an association formed to manage
22a common interest development under the Commercial and
23Industrial Common Interest Development Act.

24(2) States the business or corporate office of the association, if
25any, and, if the office is not on the site of the common interest
26development, states the front street and nearest cross street for the
27physical location of the common interest development.

28(3) States the name and address of the association’s managing
29agent, if any.

30(b) The statement filed by an incorporated association with the
31Secretary of State pursuant to Section 8210 of the Corporations
32Code shall also contain a statement identifying the corporation as
33an association formed to manage a common interest development
34under the Commercial and Industrial Common Interest
35Development Act.

36 

37Article 4.  Condominium Plan
38

 

39

6624.  

A condominium plan shall contain all of the following:

P32   1(a) A description or survey map of a condominium project,
2which shall refer to or show monumentation on the ground.

3(b) A three-dimensional description of a condominium project,
4one or more dimensions of which may extend for an indefinite
5distance upwards or downwards, in sufficient detail to identify the
6common area and each separate interest.

7(c) A certificate consenting to the recordation of the
8condominium plan pursuant to this act that is signed and
9acknowledged as provided in Section 6626.

10

6626.  

(a) The certificate consenting to the recordation of a
11condominium plan that is required by subdivision (c) of Section
126624 shall be signed and acknowledged by all of the following
13persons:

14(1) The record owner of fee title to that property included in the
15condominium project.

16(2) In the case of a condominium project that will terminate
17upon the termination of an estate for years, by all lessors and
18lessees of the estate for years.

19(3) In the case of a condominium project subject to a life estate,
20by all life tenants and remainder interests.

21(4) The trustee or the beneficiary of each recorded deed of trust,
22and the mortgagee of each recorded mortgage encumbering the
23property.

24(b) Owners of mineral rights, easements, rights-of-way, and
25other nonpossessory interests do not need to sign the certificate.

26(c) In the event a conversion to condominiums of a stock
27cooperative has been approved by the required number of owners,
28trustees, beneficiaries, and mortgagees pursuant to Section
2966452.10 of the Government Code, the certificate need only be
30signed by those owners, trustees, beneficiaries, and mortgagees
31approving the conversion.

32

6628.  

A condominium plan may be amended or revoked by a
33recorded instrument that is acknowledged and signed by all the
34persons who, at the time of amendment or revocation, are persons
35whose signatures are required under Section 6626.

36 

37Article 5.  Operating Rules
38

 

39

6630.  

For the purposes of this article, “operating rule” means
40a regulation adopted by the board that applies generally to the
P33   1management and operation of the common interest development
2or the conduct of the business and affairs of the association.

3

6632.  

An operating rule is valid and enforceable only if all of
4the following requirements are satisfied:

5(a) The rule is in writing.

6(b) The rule is within the authority of the board conferred by
7law or by the declaration, articles of incorporation or association,
8or bylaws of the association.

9(c) The rule is notbegin delete inconsistentend deletebegin insert in conflictend insert with governing law
10and the declaration, articles of incorporation or association,begin delete andend delete
11begin insert orend insert bylaws of the association.

12(d) The rule is reasonable, and is adopted, amended, or repealed
13in good faith.

14 

15Chapter  4. Ownership and Transfer of Interests
16

16 

17Article 1.  Ownership Rights and Interests
18

 

19

6650.  

Unless the declaration otherwise provides, in a
20condominium project, or in a planned development in which the
21common area is owned by the owners of the separate interests, the
22common area is owned as tenants in common, in equal shares, one
23for each separate interest.

24

6652.  

Unless the declaration otherwise provides:

25(a) In a condominium project, and in those planned
26developments with common area owned in common by the owners
27of the separate interests, there are appurtenant to each separate
28interest nonexclusive rights of ingress, egress, and support, if
29necessary, through the common area. The common area is subject
30to these rights.

31(b) In a stock cooperative, and in a planned development with
32common area owned by the association, there is an easement for
33ingress, egress, and support, if necessary, appurtenant to each
34separate interest. The common area is subject to these easements.

35

6654.  

Except as otherwise provided in law, an order of the
36court, or an order pursuant to a final and binding arbitration
37decision, an association may not deny a member or occupant
38physical access to the member’s or occupant’s separate interest,
39either by restricting access through the common area to the separate
40interest, or by restricting access solely to the separate interest.

 

P34   1Article 2.  Restrictions on Transfers
2

 

3

6656.  

(a) Except as provided in this section, the common area
4in a condominium project shall remain undivided, and there shall
5be no judicial partition thereof. Nothing in this section shall be
6deemed to prohibit partition of a cotenancy in a condominium.

7(b) The owner of a separate interest in a condominium project
8may maintain a partition action as to the entire project as if the
9owners of all of the separate interests in the project were tenants
10in common in the entire project in the same proportion as their
11interests in the common area. The court shall order partition under
12this subdivision only by sale of the entire condominium project
13and only upon a showing of one of the following:

14(1) More than three years before the filing of the action, the
15condominium project was damaged or destroyed, so that a material
16part was rendered unfit for its prior use, and the condominium
17project has not been rebuilt or repaired substantially to its state
18prior to the damage or destruction.

19(2) Three-fourths or more of the project is destroyed or
20substantially damaged and owners of separate interests holding in
21the aggregate more than a 50-percent interest in the common area
22oppose repair or restoration of the project.

23(3) The project has been in existence more than 50 years, is
24obsolete and uneconomic, and owners of separate interests holding
25in the aggregate more than a 50-percent interest in the common
26area oppose repair or restoration of the project.

27(4) Any conditions in the declaration for sale under the
28circumstances described in this subdivision have been met.

29

6658.  

(a) In a condominium project, no labor performed or
30services or materials furnished with the consent of, or at the request
31of, an owner in the condominium project or the owners’ agent or
32contractor shall be the basis for the filing of a lien against any other
33property of any other owner in the condominium project unless
34that other owner has expressly consented to or requested the
35performance of the labor or furnishing of the materials or services.
36However, express consent shall be deemed to have been given by
37the owner of any condominium in the case of emergency repairs
38thereto.

39(b) Labor performed or services or materials furnished for the
40common area, if duly authorized by the association, shall be
P35   1deemed to be performed or furnished with the express consent of
2each condominium owner.

3(c) The owner of any condominium may remove that owner’s
4condominium from a lien against two or more condominiums or
5any part thereof by payment to the holder of the lien of the fraction
6of the total sum secured by the lien that is attributable to the
7owner’s condominium.

8 

9Article 3.  Transfer of Separate Interest
10

 

11

6662.  

In a condominium project the common area is not subject
12to partition, except as provided in Section 6656. Any conveyance,
13judicial sale, or other voluntary or involuntary transfer of the
14separate interest includes the undivided interest in the common
15area. Any conveyance, judicial sale, or other voluntary or
16involuntary transfer of the owner’s entire estate also includes the
17owner’s membership interest in the association.

18

6664.  

In a planned development, any conveyance, judicial sale,
19or other voluntary or involuntary transfer of the separate interest
20includes the undivided interest in the common area, if any exists.
21Any conveyance, judicial sale, or other voluntary or involuntary
22transfer of the owner’s entire estate also includes the owner’s
23membership interest in the association.

24

6666.  

In a stock cooperative, any conveyance, judicial sale, or
25other voluntary or involuntary transfer of the separate interest
26includes the ownership interest in the corporation, however
27evidenced. Any conveyance, judicial sale, or other voluntary or
28involuntary transfer of the owner’s entire estate also includes the
29owner’s membership interest in the association.

30

6668.  

Nothing in this article prohibits the transfer of exclusive
31use areas, independent of any other interest in a common interest
32subdivision, if authorization to separately transfer exclusive use
33areas is expressly stated in the declaration and the transfer occurs
34in accordance with the terms of the declaration.

35

6670.  

Any restrictions upon the severability of the component
36interests in real property which are contained in the declaration
37shall not be deemed conditions repugnant to the interest created
38within the meaning of Section 711. However, these restrictions
39shall not extend beyond the period in which the right to partition
40a project is suspended under Section 6656.

 

P27   1Chapter  5. Property Use and Maintenance
2

2 

3Article 1.  Protected Uses
4

 

5

6700.  

This article includes provisions that limit the authority
6of an association or the governing documents to regulate the use
7of a member’s separate interest. Nothing in this article is intended
8to affect the application of any other provision that limits the
9authority of an association to regulate the use of a member’s
10separate interest, including, but not limited to, the following
11provisions:

12(a) Sections 712 and 713, relating to the display of signs.

13(b) Sections 714 and 714.1, relating to solar energy systems.

14(c) Section 714.5, relating to structures that are constructed
15offsite and moved to the property in sections or modules.

16(d) Sections 782, 782.5, and 6150 of this code and Section
1712956.1 of the Government Code, relating to racial restrictions.

18

6702.  

(a) Except as required for the protection of the public
19health or safety, no governing document shall limit or prohibit, or
20be construed to limit or prohibit, the display of the flag of the
21United States by a member on or in the member’s separate interest
22or within the member’s exclusive use common area.

23(b) For purposes of this section, “display of the flag of the
24United States” means a flag of the United States made of fabric,
25cloth, or paper displayed from a staff or pole or in a window, and
26does not mean a depiction or emblem of the flag of the United
27States made of lights, paint, roofing, siding, paving materials, flora,
28or balloons, or any other similar building, landscaping, or
29decorative component.

30(c) In any action to enforce this section, the prevailing party
31shall be awarded reasonable attorney’s fees and costs.

32

6704.  

(a) The governing documents may not prohibit posting
33or displaying of noncommercial signs, posters, flags, or banners
34on or in a member’s separate interest, except as required for the
35protection of public health or safety or if the posting or display
36would violate a local, state, or federal law.

37(b) For purposes of this section, a noncommercial sign, poster,
38flag, or banner may be made of paper, cardboard, cloth, plastic,
39or fabric, and may be posted or displayed from the yard, window,
40door, balcony, or outside wall of the separate interest, but may not
P37   1be made of lights, roofing, siding, paving materials, flora, or
2balloons, or any other similar building, landscaping, or decorative
3component, or include the painting of architectural surfaces.

4(c) An association may prohibit noncommercial signs and
5posters that are more than nine square feet in size and
6noncommercial flags or banners that are more than 15 square feet
7in size.

8

6706.  

Notwithstanding Section 4202, Section 4715 applies to
9an owner of a separate interest in a common interest development
10who kept a pet in that common interest development before January
111, 2014.

12

6708.  

(a) Any covenant, condition, or restriction contained in
13any deed, contract, security instrument, or other instrument
14affecting the transfer or sale of, or any interest in, a common
15interest development that effectively prohibits or restricts the
16installation or use of a video or television antenna, including a
17satellite dish, or that effectively prohibits or restricts the attachment
18of that antenna to a structure within that development where the
19antenna is not visible from any street or common area, except as
20otherwise prohibited or restricted by law, is void and unenforceable
21as to its application to the installation or use of a video or television
22antenna that has a diameter or diagonal measurement of 36 inches
23or less.

24(b) This section shall not apply to any covenant, condition, or
25restriction, as described in subdivision (a), that imposes reasonable
26restrictions on the installation or use of a video or television
27antenna, including a satellite dish, that has a diameter or diagonal
28measurement of 36 inches or less. For purposes of this section,
29“reasonable restrictions” means those restrictions that do not
30significantly increase the cost of the video or television antenna
31system, including all related equipment, or significantly decrease
32its efficiency or performance and include all of the following:

33(1) Requirements for application and notice to the association
34prior to the installation.

35(2) Requirement of a member to obtain the approval of the
36association for the installation of a video or television antenna that
37has a diameter or diagonal measurement of 36 inches or less on a
38separate interest owned by another.

39(3) Provision for the maintenance, repair, or replacement of
40roofs or other building components.

P38   1(4) Requirements for installers of a video or television antenna
2to indemnify or reimburse the association or its members for loss
3or damage caused by the installation, maintenance, or use of a
4video or television antenna that has a diameter or diagonal
5measurement of 36 inches or less.

6(c) Whenever approval is required for the installation or use of
7a video or television antenna, including a satellite dish, the
8application for approval shall be processed by the appropriate
9approving entity for the common interest development in the same
10manner as an application for approval of an architectural
11modification to the property, and the issuance of a decision on the
12application shall not be willfully delayed.

13(d) In any action to enforce compliance with this section, the
14prevailing party shall be awarded reasonable attorney’s fees.

15

6710.  

(a) Any provision of a governing document that
16arbitrarily or unreasonably restricts an owner’s ability to market
17the owner’s interest in a common interest development is void.

18(b) No association may adopt, enforce, or otherwise impose any
19governing document that does either of the following:

20(1) Imposes an assessment or fee in connection with the
21marketing of an owner’s interest in an amount that exceeds the
22association’s actual or direct costs.

23(2) Establishes an exclusive relationship with a real estate broker
24through which the sale or marketing of interests in the development
25is required to occur. The limitation set forth in this paragraph does
26not apply to the sale or marketing of separate interests owned by
27the association or to the sale or marketing of common area by the
28association.

29(c) For purposes of this section, “market” and “marketing” mean
30listing, advertising, or obtaining or providing access to show the
31owner’s interest in the development.

32(d) This section does not apply to rules or regulations made
33pursuant to Section 712 or 713 regarding real estate signs.

34

6712.  

(a)  Notwithstanding any other law, a provision of the
35governing documents shall be void and unenforceable if it does
36any of the following:

37(1) Prohibits, or includes conditions that have the effect of
38prohibiting, the use of low water-using plants as a group.

39(2) Has the effect of prohibiting or restricting compliance with
40either of the following:

P39   1(A) A water-efficient landscape ordinance adopted or in effect
2pursuant to subdivision (c) of Section 65595 of the Government
3Code.

4(B) Any regulation or restriction on the use of water adopted
5pursuant to Section 353 or 375 of the Water Code.

6(b) This section shall not prohibit an association from applying
7landscaping rules established in the governing documents, to the
8extent the rules fully conform with the requirements of subdivision
9(a).

10

6713.  

(a) Any covenant, restriction, or condition contained in
11any deed, contract, security instrument, or other instrument
12affecting the transfer or sale of any interest in a common interest
13development, and any provision of a governing document, as
14defined in Section 6552, that either effectively prohibits or
15unreasonably restricts the installation or use of an electric vehicle
16charging station in an owner’s designated parking space, including,
17but not limited to, a deeded parking space, a parking space in an
18owner’s exclusive use common area, or a parking space that is
19specifically designated for use by a particular owner, or is in
20conflict with the provisions of this section is void and
21unenforceable.

22(b) (1) This section does not apply to provisions that impose
23reasonable restrictions on electric vehicle charging stations.
24However, it is the policy of the state to promote, encourage, and
25remove obstacles to the use of electric vehicle charging stations.

26(2) For purposes of this section, “reasonable restrictions” are
27restrictions that do not significantly increase the cost of the station
28or significantly decrease its efficiency or specified performance.

29(c) An electric vehicle charging station shall meet applicable
30health and safety standards and requirements imposed by state and
31local authorities, and all other applicable zoning, land use or other
32ordinances, or land use permits.

33(d) For purposes of this section, “electric vehicle charging
34station” means a station that is designed in compliance with the
35California Building Standards Code and delivers electricity from
36a source outside an electric vehicle into one or more electric
37vehicles. An electric vehicle charging station may include several
38charge points simultaneously connecting several electric vehicles
39to the station and any related equipment needed to facilitate
40charging plug-in electric vehicles.

P40   1(e) If approval is required for the installation or use of an electric
2vehicle charging station, the application for approval shall be
3processed and approved by the association in the same manner as
4an application for approval of an architectural modification to the
5property, and shall not be willfully avoided or delayed. The
6approval or denial of an application shall be in writing. If an
7application is not denied in writing within 60 days from the date
8of receipt of the application, the application shall be deemed
9approved, unless that delay is the result of a reasonable request
10for additional information.

11(f) If the electric vehicle charging station is to be placed in a
12common area or an exclusive use common area, as designated in
13the common interest development’s declaration, the following
14provisions apply:

15(1) The owner first shall obtain approval from the association
16to install the electric vehicle charging station and the association
17shall approve the installation if the owner agrees in writing to do
18all of the following:

19(A) Comply with the association’s architectural standards for
20the installation of the charging station.

21(B) Engage a licensed contractor to install the charging station.

22(C) Within 14 days of approval, provide a certificate of
23insurance that names the association as an additional insured under
24the owner’s insurance policy in the amount set forth in paragraph
25(3).

26(D) Pay for the electricity usage associated with the charging
27station.

28(2) The owner and each successive owner of the charging station
29shall be responsible for all of the following:

30(A) Costs for damage to the charging station, common area,
31exclusive use common area, or separate interests resulting from
32the installation, maintenance, repair, removal, or replacement of
33the charging station.

34(B) Costs for the maintenance, repair, and replacement of the
35charging station until it has been removed and for the restoration
36of the common area after removal.

37(C) The cost of electricity associated with the charging station.

38(D) Disclosing to prospective buyers the existence of any
39charging station of the owner and the related responsibilities of
40the owner under this section.

P41   1(3) The owner and each successive owner of the charging
2station, at all times, shall maintain a liability coverage policy in
3the amount of one million dollars ($1,000,000), and shall name
4the association as a named additional insured under the policy with
5a right to notice of cancellation.

6(4) An owner shall not be required to maintain a liability
7coverage policy for an existing National Electrical Manufacturers
8Association standard alternating current power plug.

9(g) Except as provided in subdivision (h), installation of an
10electric vehicle charging station for the exclusive use of an owner
11in a common area, that is not an exclusive use common area, shall
12be authorized by the association only if installation in the owner’s
13designated parking space is impossible or unreasonably expensive.
14In such cases, the association shall enter into a license agreement
15with the owner for the use of the space in a common area, and the
16owner shall comply with all of the requirements in subdivision (f).

17(h) The association or owners may install an electric vehicle
18charging station in the common area for the use of all members of
19the association and, in that case, the association shall develop
20appropriate terms of use for the charging station.

21(i) An association may create a new parking space where one
22did not previously exist to facilitate the installation of an electric
23vehicle charging station.

24(j) An association that willfully violates this section shall be
25liable to the applicant or other party for actual damages, and shall
26pay a civil penalty to the applicant or other party in an amount not
27to exceed one thousand dollars ($1,000).

28(k) In any action to enforce compliance with this section, the
29prevailing plaintiff shall be awarded reasonable attorney’s fees.

30 

31Article 2.  Modification of Separate Interest
32

 

33

6714.  

(a) Subject to the governing documents and applicable
34law, a member may do the following:

35(1) Make any improvement or alteration within the boundaries
36of the member’s separate interest that does not impair the structural
37integrity or mechanical systems or lessen the support of any
38portions of the common interest development.

39(2) Modify the member’s separate interest, at the member’s
40expense, to facilitate access for persons who are blind, visually
P42   1handicapped, deaf, or physically disabled, or to alter conditions
2which could be hazardous to these persons. These modifications
3may also include modifications of the route from the public way
4to the door of the separate interest for the purposes of this
5paragraph if the separate interest is on the ground floor or already
6accessible by an existing ramp or elevator. The right granted by
7this paragraph is subject to the following conditions:

8(A) The modifications shall be consistent with applicable
9building code requirements.

10(B) The modifications shall be consistent with the intent of
11otherwise applicable provisions of the governing documents
12pertaining to safety or aesthetics.

13(C) Modifications external to the separate interest shall not
14prevent reasonable passage by other residents, and shall be removed
15by the member when the separate interest is no longer occupied
16by persons requiring those modifications who are blind, visually
17handicapped, deaf, or physically disabled.

18(D) Any member who intends to modify a separate interest
19pursuant to this paragraph shall submit plans and specifications to
20the association for review to determine whether the modifications
21will comply with the provisions of this paragraph. The association
22shall not deny approval of the proposed modifications under this
23paragraph without good cause.

24(b) Any change in the exterior appearance of a separate interest
25shall be in accordance with the governing documents and
26applicable provisions of law.

27 

28Article 3.  Maintenance
29

 

30

6716.  

(a) Unless otherwise provided in the declaration of a
31common interest development, the association is responsible for
32repairing, replacing, or maintaining the common area, other than
33exclusive use common area, and the owner of each separate interest
34is responsible for maintaining that separate interest and any
35exclusive use common area appurtenant to the separate interest.

36(b) The costs of temporary relocation during the repair and
37maintenance of the areas within the responsibility of the association
38shall be borne by the owner of the separate interest affected.

39

6718.  

(a) In a condominium project or stock cooperative,
40unless otherwise provided in the declaration, the association is
P43   1responsible for the repair and maintenance of the common area
2occasioned by the presence of wood-destroying pests or organisms.

3(b) In a planned development, unless a different maintenance
4scheme is provided in the declaration, each owner of a separate
5interest is responsible for the repair and maintenance of that
6separate interest as may be occasioned by the presence of
7wood-destroying pests or organisms. Upon approval of the majority
8of all members of the association, pursuant to Section 6522, that
9responsibility may be delegated to the association, which shall be
10entitled to recover the cost thereof as a special assessment.

11

6720.  

(a) The association may cause the temporary, summary
12removal of any occupant of a common interest development for
13such periods and at such times as may be necessary for prompt,
14effective treatment of wood-destroying pests or organisms.

15(b) The association shall give notice of the need to temporarily
16vacate a separate interest to the occupants and to the owners, not
17less than 15 days nor more than 30 days prior to the date of the
18temporary relocation. The notice shall state the reason for the
19temporary relocation, the date and time of the beginning of
20treatment, the anticipated date and time of termination of treatment,
21and that the occupants will be responsible for their own
22accommodations during the temporary relocation.

23(c) Notice by the association shall be deemed complete upon
24either:

25(1) Personal delivery of a copy of the notice to the occupants,
26andbegin insert,end insert if an occupant is not the owner, individual delivery pursuant
27to Section 6514begin delete,end delete of a copy of the notice to the owner.

28(2) Individual delivery pursuant to Section 6514 to the occupant
29at the address of the separate interest, andbegin insert,end insert if the occupant is not
30the owner, individual delivery pursuant to Section 6514begin delete,end delete of a copy
31of the notice to the owner.

32(d) For purposes of this section, “occupant” means an owner,
33resident, guest, invitee, tenant, lessee, sublessee, or other person
34in possession of the separate interest.

35

6722.  

Notwithstanding the provisions of the declaration, a
36member is entitled to reasonable access to the common area for
37the purpose of maintaining the internal and external telephone
38wiring made part of the exclusive use common area of the
39member’s separate interest pursuant to subdivision (c) of Section
406550. The access shall be subject to the consent of the association,
P44   1whose approval shall not be unreasonably withheld, and which
2may include the association’s approval of telephone wiring upon
3the exterior of the common area, and other conditions as the
4association determines reasonable.

5 

6Chapter  6. Association Governance
7

7 

8Article 1.  Association Existence and Powers
9

 

10

6750.  

A common interest development shall be managed by
11an association that may be incorporated or unincorporated. The
12association may be referred to as an owners’ association or a
13community association.

14

6752.  

(a) Unless the governing documents provide otherwise,
15and regardless of whether the association is incorporated or
16unincorporated, the association may exercise the powers granted
17to a nonprofit mutual benefit corporation, as enumerated in Section
187140 of the Corporations Code, except that an unincorporated
19association may not adopt or use a corporate seal or issue
20membership certificates in accordance with Section 7313 of the
21Corporations Code.

22(b) The association, whether incorporated or unincorporated,
23may exercise the powers granted to an association in this act.

24 

25Article 2.  Record Keeping
26

 

27

6756.  

To be effective, a request to change the member’s
28information in the association membership list shall be delivered
29in writing to the association, pursuant to Section 6512.

30 

31Article 3.  Conflict of Interest
32

 

33

6758.  

(a) Notwithstanding any other law, and regardless of
34whether an association is incorporated or unincorporated, the
35provisions of Sections 7233 and 7234 of the Corporations Code
36shall apply to any contract or other transaction authorized,
37approved, or ratified by the board or a committee of the board.

38(b) A director or member of a committee shall not vote on any
39of the following matters:

40(1) Discipline of the director or committee member.

P45   1(2) An assessment against the director or committee member
2for damage to the common area or facilities.

3(3) A request, by the director or committee member, for a
4payment plan for overdue assessments.

5(4) A decision whether to foreclose on a lien on the separate
6interest of the director or committee member.

7(5) Review of a proposed physical change to the separate interest
8of the director or committee member.

9(6) A grant of exclusive use common area to the director or
10committee member.

11(c) Nothing in this section limits any other provision of law or
12the governing documents that govern a decision in which a director
13may have an interest.

14 

15Chapter  7. Assessments and Assessment Collection
16

16 

17Article 1.  Establishment and Imposition of Assessments
18

 

19

6800.  

The association shall levy regular and special assessments
20sufficient to perform its obligations under the governing documents
21and this act.

22

6804.  

(a) Regular assessments imposed or collected to perform
23the obligations of an association under the governing documents
24or this act shall be exempt from execution by a judgment creditor
25of the association only to the extent necessary for the association
26to perform essential services, such as paying for utilities and
27insurance. In determining the appropriateness of an exemption, a
28court shall ensure that only essential services are protected under
29this subdivision.

30(b) This exemption shall not apply to any consensual pledges,
31liens, or encumbrances that have been approved by a majority of
32a quorum of members, pursuant to Section 6524, at a member
33meeting or election, or to any state tax lien, or to any lien for labor
34or materials supplied to the common area.

35 

36Article 2.  Assessment Payment and Delinquency
37

 

38

6808.  

A regular or special assessment and any late charges,
39reasonable fees and costs of collection, reasonable attorney’s fees,
P46   1if any, and interest, if any, shall be a debt of the owner of the
2separate interest at the time the assessment or other sums are levied.

3

6810.  

(a) When an owner of a separate interest makes a
4payment toward an assessment, the owner may request a receipt
5and the association shall provide it. The receipt shall indicate the
6date of payment and the person who received it.

7(b) The association shall provide a mailing address for overnight
8payment of assessments.

9(c) An owner shall not be liable for any charges, interest, or
10costs of collection for an assessment payment that is asserted to
11be delinquent, if it is determined the assessment was paid on time
12to the association.

13

6812.  

At least 30 days prior to recording a lien upon the
14separate interest of the owner of record to collect a debt that is past
15due under Section 6808, the association shall notify the owner of
16record in writing by certified mail of the following:

17(a) A general description of the collection and lien enforcement
18procedures of the association and the method of calculation of the
19amount, a statement that the owner of the separate interest has the
20right to inspect the association records pursuant to Section 8333
21of the Corporations Code, and the following statement in 14-point
22boldface type, if printed, or in capital letters, if typed:

23“IMPORTANT NOTICE: IF YOUR SEPARATE INTEREST
24IS PLACED IN FORECLOSURE BECAUSE YOU ARE BEHIND
25 IN YOUR ASSESSMENTS, IT MAY BE SOLD WITHOUT
26COURT ACTION.”

27(b) An itemized statement of the charges owed by the owner,
28including items on the statement which indicate the amount of any
29delinquent assessments, the fees and reasonable costs of collection,
30reasonable attorney’s fees, any late charges, and interest, if any.

31(c) A statement that the owner shall not be liable to pay the
32charges, interest, and costs of collection, if it is determined the
33assessment was paid on time to the association.

34

6814.  

(a) The amount of the assessment, plus any costs of
35collection, late charges, and interest assessed in accordance with
36Section 6808, shall be a lien on the owner’s separate interest in
37the common interest development from and after the time the
38association causes to be recorded with the county recorder of the
39county in which the separate interest is located, a notice of
40delinquent assessment, which shall state the amount of the
P47   1assessment and other sums imposed in accordance with Section
26808, a legal description of the owner’s separate interest in the
3common interest development against which the assessment and
4other sums are levied, and the name of the record owner of the
5separate interest in the common interest development against which
6the lien is imposed.

7(b) The itemized statement of the charges owed by the owner
8described in subdivision (b) of Section 6812 shall be recorded
9together with the notice of delinquent assessment.

10(c) In order for the lien to be enforced by nonjudicial foreclosure
11as provided in Sections 6820 and 6822, the notice of delinquent
12assessment shall state the name and address of the trustee
13authorized by the association to enforce the lien by sale.

14(d) The notice of delinquent assessment shall be signed by the
15person designated in the declaration or by the association for that
16purpose, or if no one is designated, by the president of the
17association.

18(e) A copy of the recorded notice of delinquent assessment shall
19be mailed by certified mail to every person whose name is shown
20as an owner of the separate interest in the association’s records,
21and the notice shall be mailed no later than 10 calendar days after
22recordation.

23

6816.  

A lien created pursuant to Section 6814 shall be prior to
24all other liens recorded subsequent to the notice of delinquent
25assessment, except that the declaration may provide for the
26subordination thereof to any other liens and encumbrances.

27

6818.  

(a) Within 21 days of the payment of the sums specified
28in the notice of delinquent assessment, the association shall record
29or cause to be recorded in the office of the county recorder in which
30the notice of delinquent assessment is recorded a lien release or
31notice of rescission and provide the owner of the separate interest
32a copy of the lien release or notice that the delinquent assessment
33has been satisfied.

34(b) If it is determined that a lien previously recorded against the
35separate interest was recorded in error, the party who recorded the
36lien shall, within 21 calendar days, record or cause to be recorded
37in the office of the county recorder in which the notice of
38delinquent assessment is recorded a lien release or notice of
39 rescission and provide the owner of the separate interest with a
P48   1declaration that the lien filing or recording was in error and a copy
2of the lien release or notice of rescission.

3

6819.  

An association that fails to comply with the procedures
4set forth in this section shall, prior to recording a lien, recommence
5the required notice process. Any costs associated with
6recommencing the notice process shall be borne by the association
7and not by the owner of a separate interest.

8 

9Article 3.  Assessment Collection
10

 

11

6820.  

(a) Except as otherwise provided in this article, after
12the expiration of 30 days following the recording of a lien created
13pursuant to Section 6814, the lien may be enforced in any manner
14permitted by law, including sale by the court, sale by the trustee
15designated in the notice of delinquent assessment, or sale by a
16trustee substituted pursuant to Section 2934a.

17(b) Nothing in Article 2 (commencing with Section 6808) or in
18subdivision (a) of Section 726 of the Code of Civil Procedure
19prohibits actions against the owner of a separate interest to recover
20sums for which a lien is created pursuant to Article 2 (commencing
21with Section 6808) or prohibits an association from taking a deed
22in lieu of foreclosure.

23

6822.  

(a) Any sale by the trustee shall be conducted in
24accordance with Sections 2924, 2924b, and 2924c applicable to
25the exercise of powers of sale in mortgages and deeds of trust.

26(b) In addition to the requirements of Section 2924, the
27association shall serve a notice of default on the person named as
28the owner of the separate interest in the association’s records or,
29if that person has designated a legal representative pursuant to this
30subdivision, on that legal representative. Service shall be in
31accordance with the manner of service of summons in Article 3
32(commencing with Section 415.10) of Chapter 4 of Title 5 of Part
332 of the Code of Civil Procedure. An owner may designate a legal
34representative in a writing that is mailed to the association in a
35manner that indicates that the association has received it.

36(c) The fees of a trustee may not exceed the amounts prescribed
37in Sections 2924c and 2924d, plus the cost of service for the notice
38of default pursuant to subdivision (b).

39

6824.  

(a) A monetary charge imposed by the association as a
40means of reimbursing the association for costs incurred by the
P49   1association in the repair of damage to common areas and facilities
2caused by a member or the member’s guest or tenant may become
3a lien against the member’s separate interest enforceable by the
4sale of the interest under Sections 2924, 2924b, and 2924c,
5provided the authority to impose a lien is set forth in the governing
6documents.

7(b) A monetary penalty imposed by the association as a
8disciplinary measure for failure of a member to comply with the
9governing documents, except for the late payments, may not be
10characterized nor treated in the governing documents as an
11assessment that may become a lien against the member’s separate
12interest enforceable by the sale of the interest under Sections 2924,
132924b, and 2924c.

14

6826.  

(a) An association may not voluntarily assign or pledge
15the association’s right to collect payments or assessments, or to
16enforce or foreclose a lien to a third party, except when the
17assignment or pledge is made to a financial institution or lender
18chartered or licensed under federal or state law, when acting within
19the scope of that charter or license, as security for a loan obtained
20by the association.

21(b) Nothing in subdivision (a) restricts the right or ability of an
22association to assign any unpaid obligations of a former member
23to a third party for purposes of collection.

24

6828.  

(a) Except as otherwise provided, this article applies to
25a lien created on or after January 1, 2014.

26(b) A lien created before January 1, 2014, is governed by the
27law in existence at the time the lien was created.

28 

29Chapter  8. Insurance and Liability
30

 

31

6840.  

(a) It is the intent of the Legislature to offer civil liability
32protection to owners of the separate interests in a common interest
33development that have common area owned in tenancy in common
34if the association carries a certain level of prescribed insurance
35that covers a cause of action in tort.

36(b) Any cause of action in tort against any owner of a separate
37interest arising solely by reason of an ownership interest as a tenant
38in common in the common area of a common interest development
39shall be brought only against the association and not against the
P50   1individual owners of the separate interests, if both of the insurance
2requirements in paragraphs (1) and (2) are met:

3(1) The association maintained and has in effect for this cause
4of action, one or more policies of insurance that include coverage
5for general liability of the association.

6(2) The coverage described in paragraph (1) is in the following
7minimum amounts:

8(A) At least two million dollars ($2,000,000) if the common
9interest development consists of 100 or fewer separate interests.

10(B) At least three million dollars ($3,000,000) if the common
11interest development consists of more than 100 separate interests.

12 

13Chapter  9. Dispute Resolution and Enforcement
14

14 

15Article 1.  Disciplinary Action
16

 

17

6850.  

(a) If an association adopts or has adopted a policy
18imposing any monetary penalty, including any fee, on any
19association member for a violation of the governing documents,
20including any monetary penalty relating to the activities of a guest
21or tenant of the member, the board shall adopt and distribute to
22each member, by individual notice, a schedule of the monetary
23penalties that may be assessed for those violations, which shall be
24in accordance with authorization for member discipline contained
25in the governing documents.

26(b) Any new or revised monetary penalty that is adopted after
27complying with subdivision (a) may be included in a supplement
28that is delivered to the members individually, pursuant to Section
296553.

30(c) A monetary penalty for a violation of the governing
31documents shall not exceed the monetary penalty stated in the
32schedule of monetary penalties or supplement that is in effect at
33the time of the violation.

34(d) An association shall provide a copy of the most recently
35distributed schedule of monetary penalties, along with any
36applicable supplements to that schedule, to any member on request.

37

6854.  

Nothing in Section 6850 shall be construed to create,
38expand, or reduce the authority of the board to impose monetary
39penalties on a member for a violation of the governing documents.

 

P51   1Article 2.  Civil Actions
2

 

3

6856.  

(a) The covenants and restrictions in the declaration
4shall be enforceable equitable servitudes, unless unreasonable, and
5shall inure to the benefit of and bind all owners of separate interests
6in the development. Unless the declaration states otherwise, these
7servitudes may be enforced by any owner of a separate interest or
8by the association, or by both.

9(b) A governing document other than the declaration may be
10enforced by the association against an owner of a separate interest
11or by an owner of a separate interest against the association.

12

6858.  

An association has standing to institute, defend, settle,
13or intervene in litigation, arbitration, mediation, or administrative
14proceedings in its own name as the real party in interest and without
15joining with it, the members, in matters pertaining to the following:

16(a) Enforcement of the governing documents.

17(b) Damage to the common area.

18(c) Damage to a separate interest that the association is obligated
19to maintain or repair.

20(d) Damage to a separate interest that arises out of, or is
21integrally related to, damage to the common area or a separate
22interest that the association is obligated to maintain or repair.

23

6860.  

(a) In an action maintained by an association pursuant
24to subdivision (b), (c), or (d) of Section 6858, the amount of
25damages recovered by the association shall be reduced by the
26amount of damages allocated to the association or its managing
27agents in direct proportion to their percentage of fault based upon
28principles of comparative fault. The comparative fault of the
29association or its managing agents may be raised by way of
30defense, but shall not be the basis for a cross-action or separate
31action against the association or its managing agents for
32contribution or implied indemnity, where the only damage was
33sustained by the association or its members. It is the intent of the
34Legislature in enacting this subdivision to require that comparative
35fault be pleaded as an affirmative defense, rather than a separate
36cause of action, where the only damage was sustained by the
37association or its members.

38(b) In an action involving damages described in subdivision (b),
39(c), or (d) of Section 6858, the defendant or cross-defendant may
40allege and prove the comparative fault of the association or its
P52   1managing agents as a setoff to the liability of the defendant or
2cross-defendant even if the association is not a party to the
3litigation or is no longer a party whether by reason of settlement,
4dismissal, or otherwise.

5(c) Subdivisions (a) and (b) apply to actions commenced on or
6after January 1, 1993.

7(d) Nothing in this section affects a person’s liability under
8Section 1431, or the liability of the association or its managing
9agent for an act or omission that causes damages to another.

10 

11Chapter  10. Construction Defect Litigation
12

 

13

6870.  

(a) Before an association files a complaint for damages
14against a builder, developer, or general contractor (respondent) of
15a common interest development based upon a claim for defects in
16the design or construction of the common interest development,
17all of the requirements of this section shall be satisfied with respect
18to the builder, developer, or general contractor.

19(b) The association shall serve upon the respondent a “Notice
20of Commencement of Legal Proceedings.” The notice shall be
21served by certified mail to the registered agent of the respondent,
22or if there is no registered agent, then to any officer of the
23respondent. If there are no current officers of the respondent,
24service shall be upon the person or entity otherwise authorized by
25law to receive service of process. Service upon the general
26contractor shall be sufficient to initiate the process set forth in this
27section with regard to any builder or developer, if the builder or
28developer is not amenable to service of process by the foregoing
29methods. This notice shall toll all applicable statutes of limitation
30and repose, whether contractual or statutory, by and against all
31potentially responsible parties, regardless of whether they were
32named in the notice, including claims for indemnity applicable to
33the claim for the period set forth in subdivision (c). The notice
34shall include all of the following:

35(1) The name and location of the project.

36(2) An initial list of defects sufficient to apprise the respondent
37of the general nature of the defects at issue.

38(3) A description of the results of the defects, if known.

39(4) A summary of the results of a survey or questionnaire
40distributed to owners to determine the nature and extent of defects,
P53   1if a survey has been conducted or a questionnaire has been
2distributed.

3(5) Either a summary of the results of testing conducted to
4determine the nature and extent of defects or the actual test results,
5if that testing has been conducted.

6(c) Service of the notice shall commence a period, not to exceed
7180 days, during which the association, the respondent, and all
8other participating parties shall try to resolve the dispute through
9the processes set forth in this section. This 180-day period may be
10extended for one additional period, not to exceed 180 days, only
11upon the mutual agreement of the association, the respondent, and
12any parties not deemed peripheral pursuant to paragraph (3) of
13subdivision (e). Any extensions beyond the first extension shall
14require the agreement of all participating parties. Unless extended,
15the dispute resolution process prescribed by this section shall be
16deemed completed. All extensions shall continue the tolling period
17described in subdivision (b).

18(d) Within 25 days of the date the association serves the Notice
19of Commencement of Legal Proceedings, the respondent may
20request in writing to meet and confer with the board. Unless the
21respondent and the association otherwise agree, there shall be not
22more than one meeting, which shall take place no later than 10
23days from the date of the respondent’s written request, at a mutually
24agreeable time and place. The meeting may be conducted in
25executive session, excluding the association’s members. The
26discussions at the meeting are privileged communications and are
27not admissible in evidence in any civil action, unless the association
28 and the respondent consent in writing to their admission.

29(e) Upon receipt of the notice, the respondent shall, within 60
30days, comply with the following:

31(1) The respondent shall provide the association with access to,
32for inspection and copying of, all plans and specifications,
33subcontracts, and other construction files for the project that are
34reasonably calculated to lead to the discovery of admissible
35evidence regarding the defects claimed. The association shall
36provide the respondent with access to, for inspection and copying
37of, all files reasonably calculated to lead to the discovery of
38admissible evidence regarding the defects claimed, including all
39reserve studies, maintenance records and any survey questionnaires,
40or results of testing to determine the nature and extent of defects.
P54   1To the extent any of the above documents are withheld based on
2privilege, a privilege log shall be prepared and submitted to all
3other parties. All other potentially responsible parties shall have
4the same rights as the respondent regarding the production of
5documents upon receipt of written notice of the claim, and shall
6produce all relevant documents within 60 days of receipt of the
7notice of the claim.

8(2) The respondent shall provide written notice by certified mail
9to all subcontractors, design professionals, their insurers, and the
10insurers of any additional insured whose identities are known to
11the respondent or readily ascertainable by review of the project
12files or other similar sources and whose potential responsibility
13appears on the face of the notice. This notice to subcontractors,
14design professionals, and insurers shall include a copy of the Notice
15of Commencement of Legal Proceedings, and shall specify the
16date and manner by which the parties shall meet and confer to
17select a dispute resolution facilitator pursuant to paragraph (1) of
18subdivision (f), advise the recipient of its obligation to participate
19in the meet and confer or serve a written acknowledgment of receipt
20regarding this notice, advise the recipient that it will waive any
21challenge to selection of the dispute resolution facilitator if it elects
22not to participate in the meet and confer, advise the recipient that
23it may seek the assistance of an attorney, and advise the recipient
24that it should contact its insurer, if any. Any subcontractor or design
25professional, or insurer for that subcontractor, design professional,
26or additional insured, who receives written notice from the
27respondent regarding the meet and confer shall, prior to the meet
28and confer, serve on the respondent a written acknowledgment of
29receipt. That subcontractor or design professional shall, within 10
30days of service of the written acknowledgment of receipt, provide
31to the association and the respondent a Statement of Insurance that
32includes both of the following:

33(A) The names, addresses, and contact persons, if known, of all
34insurance carriers, whether primary or excess and regardless of
35whether a deductible or self-insured retention applies, whose
36policies were in effect from the commencement of construction
37of the subject project to the present and which potentially cover
38the subject claims.

39(B) The applicable policy numbers for each policy of insurance
40provided.

P55   1(3) Any subcontractor or design professional, or insurer for that
2subcontractor, design professional, or additional insured, who so
3chooses, may, at any time, make a written request to the dispute
4resolution facilitator for designation as a peripheral party. That
5request shall be served contemporaneously on the association and
6the respondent. If no objection to that designation is received within
715 days, or upon rejection of that objection, the dispute resolution
8facilitator shall designate that subcontractor or design professional
9as a peripheral party, and shall thereafter seek to limit the
10attendance of that subcontractor or design professional only to
11those dispute resolution sessions deemed peripheral party sessions
12or to those sessions during which the dispute resolution facilitator
13believes settlement as to peripheral parties may be finalized.
14Nothing in this subdivision shall preclude a party who has been
15designated a peripheral party from being reclassified as a
16nonperipheral party, nor shall this subdivision preclude a party
17designated as a nonperipheral party from being reclassified as a
18peripheral party after notice to all parties and an opportunity to
19object. For purposes of this subdivision, a peripheral party is a
20party having total claimed exposure of less than twenty-five
21thousand dollars ($25,000).

22(f) (1) Within 20 days of sending the notice set forth in
23paragraph (2) of subdivision (e), the association, respondent,
24subcontractors, design professionals, and their insurers who have
25been sent a notice as described in paragraph (2) of subdivision (e)
26shall meet and confer in an effort to select a dispute resolution
27facilitator to preside over the mandatory dispute resolution process
28prescribed by this section. Any subcontractor or design professional
29who has been given timely notice of this meeting but who does
30not participate, waives any challenge he or she may have as to the
31selection of the dispute resolution facilitator. The role of the dispute
32resolution facilitator is to attempt to resolve the conflict in a fair
33manner. The dispute resolution facilitator shall be sufficiently
34knowledgeable in the subject matter and be able to devote sufficient
35time to the case. The dispute resolution facilitator shall not be
36required to reside in or have an office in the county in which the
37project is located. The dispute resolution facilitator and the
38participating parties shall agree to a date, time, and location to
39hold a case management meeting of all parties and the dispute
40resolution facilitator, to discuss the claims being asserted and the
P56   1scheduling of events under this section. The case management
2meeting with the dispute resolution facilitator shall be held within
3100 days of service of the Notice of Commencement of Legal
4Proceedings at a location in the county where the project is located.
5Written notice of the case management meeting with the dispute
6resolution facilitator shall be sent by the respondent to the
7association, subcontractors and design professionals, and their
8insurers who are known to the respondent to be on notice of the
9claim, no later than 10 days prior to the case management meeting,
10and shall specify its date, time, and location. The dispute resolution
11facilitator in consultation with the respondent shall maintain a
12contact list of the participating parties.

13(2) No later than 10 days prior to the case management meeting,
14the dispute resolution facilitator shall disclose to the parties all
15matters that could cause a person aware of the facts to reasonably
16entertain a doubt that the proposed dispute resolution facilitator
17would be able to resolve the conflict in a fair manner. The
18facilitator’s disclosure shall include the existence of any ground
19specified in Section 170.1 of the Code of Civil Procedure for
20disqualification of a judge, any attorney-client relationship the
21facilitator has or had with any party or lawyer for a party to the
22dispute resolution process, and any professional or significant
23personal relationship the facilitator or his or her spouse or minor
24child living in the household has or had with any party to the
25dispute resolution process. The disclosure shall also be provided
26to any subsequently noticed subcontractor or design professional
27within 10 days of the notice.

28(3) A dispute resolution facilitator shall be disqualified by the
29court if he or she fails to comply with this subdivision and any
30party to the dispute resolution process serves a notice of
31disqualification prior to the case management meeting. If the
32dispute resolution facilitator complies with this subdivision, he or
33she shall be disqualified by the court on the basis of the disclosure
34if any party to the dispute resolution process serves a notice of
35disqualification prior to the case management meeting.

36(4) If the parties cannot mutually agree to a dispute resolution
37facilitator, then each party shall submit a list of three dispute
38resolution facilitators. Each party may then strike one nominee
39from the other parties’ list, and petition the court, pursuant to the
40procedure described in subdivisions (n) and (o), for final selection
P57   1of the dispute resolution facilitator. The court may issue an order
2for final selection of the dispute resolution facilitator pursuant to
3this paragraph.

4(5) Any subcontractor or design professional who receives notice
5of the association’s claim without having previously received
6timely notice of the meet and confer to select the dispute resolution
7facilitator shall be notified by the respondent regarding the name,
8address, and telephone number of the dispute resolution facilitator.
9Any such subcontractor or design professional may serve upon
10the parties and the dispute resolution facilitator a written objection
11to the dispute resolution facilitator within 15 days of receiving
12notice of the claim. Within seven days after service of this
13objection, the subcontractor or design professional may petition
14the superior court to replace the dispute resolution facilitator. The
15court may replace the dispute resolution facilitator only upon a
16showing of good cause, liberally construed. Failure to satisfy the
17deadlines set forth in this subdivision shall constitute a waiver of
18the right to challenge the dispute resolution facilitator.

19(6) The costs of the dispute resolution facilitator shall be
20apportioned in the following manner: one-third to be paid by the
21association; one-third to be paid by the respondent; and one-third
22to be paid by the subcontractors and design professionals, as
23allocated among them by the dispute resolution facilitator. The
24costs of the dispute resolution facilitator shall be recoverable by
25the prevailing party in any subsequent litigation pursuant to Section
261032 of the Code of Civil Procedure, provided however that any
27nonsettling party may, prior to the filing of the complaint, petition
28the facilitator to reallocate the costs of the dispute resolution
29facilitator as they apply to any nonsettling party. The determination
30of the dispute resolution facilitator with respect to the allocation
31of these costs shall be binding in any subsequent litigation. The
32dispute resolution facilitator shall take into account all relevant
33factors and equities between all parties in the dispute resolution
34process when reallocating costs.

35(7) In the event the dispute resolution facilitator is replaced at
36any time, the case management statement created pursuant to
37subdivision (h) shall remain in full force and effect.

38(8) The dispute resolution facilitator shall be empowered to
39enforce all provisions of this section.

P58   1(g) (1) No later than the case management meeting, the parties
2shall begin to generate a data compilation showing the following
3information regarding the alleged defects at issue:

4(A) The scope of the work performed by each potentially
5responsible subcontractor.

6(B) The tract or phase number in which each subcontractor
7provided goods or services, or both.

8(C) The units, either by address, unit number, or lot number, at
9which each subcontractor provided goods or services, or both.

10(2) This data compilation shall be updated as needed to reflect
11additional information. Each party attending the case management
12meeting, and any subsequent meeting pursuant to this section, shall
13provide all information available to that party relevant to this data
14compilation.

15(h) At the case management meeting, the parties shall, with the
16assistance of the dispute resolution facilitator, reach agreement on
17a case management statement, which shall set forth all of the
18elements set forth in paragraphs (1) to (8), inclusive, except that
19the parties may dispense with one or more of these elements if
20they agree that it is appropriate to do so. The case management
21statement shall provide that the following elements shall take place
22in the following order:

23(1) Establishment of a document depository, located in the
24county where the project is located, for deposit of documents,
25defect lists, demands, and other information provided for under
26this section. All documents exchanged by the parties and all
27documents created pursuant to this subdivision shall be deposited
28in the document depository, which shall be available to all parties
29throughout the prefiling dispute resolution process and in any
30subsequent litigation. When any document is deposited in the
31document depository, the party depositing the document shall
32provide written notice identifying the document to all other parties.
33The costs of maintaining the document depository shall be
34apportioned among the parties in the same manner as the costs of
35the dispute resolution facilitator.

36(2) Provision of a more detailed list of defects by the association
37to the respondent after the association completes a visual inspection
38of the project. This list of defects shall provide sufficient detail
39for the respondent to ensure that all potentially responsible
40subcontractors and design professionals are provided with notice
P59   1of the dispute resolution process. If not already completed prior
2to the case management meeting, the Notice of Commencement
3of Legal Proceedings shall be served by the respondent on all
4additional subcontractors and design professionals whose potential
5responsibility appears on the face of the more detailed list of
6defects within seven days of receipt of the more detailed list. The
7respondent shall serve a copy of the case management statement,
8including the name, address, and telephone number of the dispute
9resolution facilitator, to all the potentially responsible
10subcontractors and design professionals at the same time.

11(3) Nonintrusive visual inspection of the project by the
12respondent, subcontractors, and design professionals.

13(4) Invasive testing conducted by the association, if the
14association deems appropriate. All parties may observe and
15photograph any testing conducted by the association pursuant to
16this paragraph, but may not take samples or direct testing unless,
17by mutual agreement, costs of testing are shared by the parties.

18(5) Provision by the association of a comprehensive demand
19which provides sufficient detail for the parties to engage in
20meaningful dispute resolution as contemplated under this section.

21(6) Invasive testing conducted by the respondent, subcontractors,
22 and design professionals, if they deem appropriate.

23(7) Allowance for modification of the demand by the association
24if new issues arise during the testing conducted by the respondent,
25subcontractors, or design professionals.

26(8) Facilitated dispute resolution of the claim, with all parties,
27including peripheral parties, as appropriate, and insurers, if any,
28present and having settlement authority. The dispute resolution
29facilitators shall endeavor to set specific times for the attendance
30of specific parties at dispute resolution sessions. If the dispute
31resolution facilitator does not set specific times for the attendance
32of parties at dispute resolution sessions, the dispute resolution
33facilitator shall permit those parties to participate in dispute
34resolution sessions by telephone.

35(i) In addition to the foregoing elements of the case management
36statement described in subdivision (h), upon mutual agreement of
37the parties, the dispute resolution facilitator may include any or
38all of the following elements in a case management statement: the
39exchange of consultant or expert photographs; expert presentations;
P60   1expert meetings; or any other mechanism deemed appropriate by
2the parties in the interest of resolving the dispute.

3(j) The dispute resolution facilitator, with the guidance of the
4parties, shall at the time the case management statement is
5established, set deadlines for the occurrence of each event set forth
6in the case management statement, taking into account such factors
7as the size and complexity of the case, and the requirement of this
8 section that this dispute resolution process not exceed 180 days
9absent agreement of the parties to an extension of time.

10(k) (1) At a time to be determined by the dispute resolution
11facilitator, the respondent may submit to the association all of the
12following:

13(A) A request to meet with the board to discuss a written
14settlement offer.

15(B) A written settlement offer, and a concise explanation of the
16reasons for the terms of the offer.

17(C) A statement that the respondent has access to sufficient
18funds to satisfy the conditions of the settlement offer.

19(D) A summary of the results of testing conducted for the
20purposes of determining the nature and extent of defects, if this
21testing has been conducted, unless the association provided the
22respondent with actual test results.

23(2) If the respondent does not timely submit the items required
24by this subdivision, the association shall be relieved of any further
25obligation to satisfy the requirements of this subdivision only.

26(3) No less than 10 days after the respondent submits the items
27required by this paragraph, the respondent and the board shall meet
28and confer about the respondent’s settlement offer.

29(4) If the board rejects a settlement offer presented at the
30meeting held pursuant to this subdivision, the board shall hold a
31meeting open to each member of the association. The meeting
32shall be held no less than 15 days before the association
33commences an action for damages against the respondent.

34(5) No less than 15 days before this meeting is held, a written
35notice shall be sent to each member of the association specifying
36all of the following:

37(A) That a meeting will take place to discuss problems that may
38lead to the filing of a civil action, and the time and place of this
39meeting.

P61   1(B) The options that are available to address the problems,
2including the filing of a civil action and a statement of the various
3alternatives that are reasonably foreseeable by the association to
4pay for those options and whether these payments are expected to
5be made from the use of reserve account funds or the imposition
6of regular or special assessments, or emergency assessment
7increases.

8(C) The complete text of any written settlement offer, and a
9concise explanation of the specific reasons for the terms of the
10offer submitted to the board at the meeting held pursuant to
11subdivision (d) that was received from the respondent.

12(6) The respondent shall pay all expenses attributable to sending
13the settlement offer to all members of the association. The
14respondent shall also pay the expense of holding the meeting, not
15to exceed three dollars ($3) per association member.

16(7) The discussions at the meeting and the contents of the notice
17and the items required to be specified in the notice pursuant to
18paragraph (5) are privileged communications and are not admissible
19in evidence in any civil action, unless the association consents to
20their admission.

21(8) No more than one request to meet and discuss a written
22settlement offer may be made by the respondent pursuant to this
23 subdivision.

24(l) All defect lists and demands, communications, negotiations,
25and settlement offers made in the course of the prelitigation dispute
26resolution process provided by this section shall be inadmissible
27pursuant to Sections 1119 to 1124, inclusive, of the Evidence Code
28and all applicable decisional law. This inadmissibility shall not be
29extended to any other documents or communications which would
30not otherwise be deemed inadmissible.

31(m) Any subcontractor or design professional may, at any time,
32petition the dispute resolution facilitator to release that party from
33the dispute resolution process upon a showing that the
34subcontractor or design professional is not potentially responsible
35for the defect claims at issue. The petition shall be served
36contemporaneously on all other parties, who shall have 15 days
37from the date of service to object. If a subcontractor or design
38professional is released, and it later appears to the dispute
39resolution facilitator that it may be a responsible party in light of
40the current defect list or demand, the respondent shall renotice the
P62   1party as provided by paragraph (2) of subdivision (e), provide a
2copy of the current defect list or demand, and direct the party to
3attend a dispute resolution session at a stated time and location. A
4party who subsequently appears after having been released by the
5dispute resolution facilitator shall not be prejudiced by its absence
6from the dispute resolution process as the result of having been
7previously released by the dispute resolution facilitator.

8(n) Any party may, at any time, petition the superior court in
9the county where the project is located, upon a showing of good
10cause, and the court may issue an order, for any of the following,
11or for appointment of a referee to resolve a dispute regarding any
12of the following:

13(1) To take a deposition of any party to the process, or subpoena
14a third party for deposition or production of documents, which is
15necessary to further prelitigation resolution of the dispute.

16(2) To resolve any disputes concerning inspection, testing,
17production of documents, or exchange of information provided
18for under this section.

19(3) To resolve any disagreements relative to the timing or
20contents of the case management statement.

21(4) To authorize internal extensions of timeframes set forth in
22the case management statement.

23(5) To seek a determination that a settlement is a good faith
24settlement pursuant to Section 877.6 of the Code of Civil Procedure
25and all related authorities. The page limitations and meet and confer
26requirements specified in this section shall not apply to these
27motions, which may be made on shortened notice. Instead, these
28motions shall be subject to other applicable state law, rules of
29court, and local rules. A determination made by the court pursuant
30to this motion shall have the same force and effect as the
31determination of a postfiling application or motion for good faith
32settlement.

33(6) To ensure compliance, on shortened notice, with the
34obligation to provide a Statement of Insurance pursuant to
35paragraph (2) of subdivision (e).

36(7) For any other relief appropriate to the enforcement of the
37provisions of this section, including the ordering of parties, and
38insurers, if any, to the dispute resolution process with settlement
39authority.

P63   1(o) (1) A petition filed pursuant to subdivision (n) shall be filed
2in the superior court in the county in which the project is located.
3The court shall hear and decide the petition within 10 days after
4filing. The petitioning party shall serve the petition on all parties,
5including the date, time, and location of the hearing no later than
6five business days prior to the hearing. Any responsive papers
7shall be filed and served no later than three business days prior to
8the hearing. Any petition or response filed under this section shall
9be no more than three pages in length.

10(2) All parties shall meet with the dispute resolution facilitator,
11if one has been appointed and confer in person or by the telephone
12prior to the filing of that petition to attempt to resolve the matter
13without requiring court intervention.

14(p) As used in this section:

15(1) “Association” shall have the same meaning as defined in
16Section 6528.

17(2) “Builder” means the declarant, as defined in Section 6544.

18(3) “Common interest development” shall have the same
19meaning as in Section 6534, except that it shall not include
20developments or projects with less than 20 units.

21(q) The alternative dispute resolution process and procedures
22described in this section shall have no application or legal effect
23other than as described in this section.

24(r) This section shall become operative on July 1, 2002, however
25it shall not apply to any pending suit or claim for which notice has
26previously been given.

27(s) This section shall become inoperative on July 1, 2017, and,
28as of January 1, 2018, is repealed, unless a later enacted statute,
29that becomes operative on or before January 1, 2018, deletes or
30extends the dates on which it becomes inoperative and is repealed.

31

6874.  

(a) As soon as is reasonably practicable after the
32association and the builder have entered into a settlement
33agreement or the matter has otherwise been resolved regarding
34alleged defects in the common areas, alleged defects in the separate
35interests that the association is obligated to maintain or repair, or
36alleged defects in the separate interests that arise out of, or are
37integrally related to, defects in the common areas or separate
38interests that the association is obligated to maintain or repair,
39where the defects giving rise to the dispute have not been corrected,
40the association shall, in writing, inform only the members of the
P64   1association whose names appear on the records of the association
2that the matter has been resolved, by settlement agreement or other
3means, and disclose all of the following:

4(1) A general description of the defects that the association
5reasonably believes, as of the date of the disclosure, will be
6corrected or replaced.

7(2) A good faith estimate, as of the date of the disclosure, of
8when the association believes that the defects identified in
9paragraph (1) will be corrected or replaced. The association may
10state that the estimate may be modified.

11(3) The status of the claims for defects in the design or
12construction of the common interest development that were not
13identified in paragraph (1) whether expressed in a preliminary list
14of defects sent to each member of the association or otherwise
15claimed and disclosed to the members of the association.

16(b) Nothing in this section shall preclude an association from
17 amending the disclosures required pursuant to subdivision (a), and
18any amendments shall supersede any prior conflicting information
19disclosed to the members of the association and shall retain any
20privilege attached to the original disclosures.

21(c) Disclosure of the information required pursuant to
22subdivision (a) or authorized by subdivision (b) shall not waive
23any privilege attached to the information.

24(d) For the purposes of the disclosures required pursuant to this
25section, the term “defects” shall be defined to include any damage
26resulting from defects.

27

6876.  

(a) Not later than 30 days prior to the filing of any civil
28action by the association against the declarant or other developer
29of a common interest development for alleged damage to the
30common areas, alleged damage to the separate interests that the
31association is obligated to maintain or repair, or alleged damage
32to the separate interests that arises out of, or is integrally related
33to, damage to the common areas or separate interests that the
34association is obligated to maintain or repair, the board shall
35provide a written notice to each member of the association who
36appears on the records of the association when the notice is
37provided. This notice shall specify all of the following:

38(1) That a meeting will take place to discuss problems that may
39lead to the filing of a civil action.

P65   1(2) The options, including civil actions, that are available to
2address the problems.

3(3) The time and place of this meeting.

4(b) Notwithstanding subdivision (a), if the association has reason
5to believe that the applicable statute of limitations will expire
6before the association files the civil action, the association may
7give the notice, as described above, within 30 days after the filing
8of the action.

9

begin deleteSEC. 20.end delete
10begin insertSEC. 21.end insert  

Section 86 of the Code of Civil Procedure, as amended
11by Section 42 of Chapter 181 of the Statutes of 2012, is amended
12to read:

13

86.  

(a) The following civil cases and proceedings are limited
14civil cases:

15(1) A case at law in which the demand, exclusive of interest, or
16the value of the property in controversy amounts to twenty-five
17thousand dollars ($25,000) or less. This paragraph does not apply
18to a case that involves the legality of any tax, impost, assessment,
19toll, or municipal fine, except an action to enforce payment of
20delinquent unsecured personal property taxes if the legality of the
21tax is not contested by the defendant.

22(2) An action for dissolution of partnership where the total assets
23of the partnership do not exceed twenty-five thousand dollars
24($25,000); an action of interpleader where the amount of money
25or the value of the property involved does not exceed twenty-five
26thousand dollars ($25,000).

27(3) An action to cancel or rescind a contract when the relief is
28sought in connection with an action to recover money not
29exceeding twenty-five thousand dollars ($25,000) or property of
30a value not exceeding twenty-five thousand dollars ($25,000), paid
31or delivered under, or in consideration of, the contract; an action
32to revise a contract where the relief is sought in an action upon the
33contract if the action otherwise is a limited civil case.

34(4) A proceeding in forcible entry or forcible or unlawful
35detainer where the whole amount of damages claimed is
36twenty-five thousand dollars ($25,000) or less.

37(5) An action to enforce and foreclose a lien on personal
38property where the amount of the lien is twenty-five thousand
39dollars ($25,000) or less.

P66   1(6) An action to enforce and foreclose, or a petition to release,
2a lien arising under Chapter 4 (commencing with Section 8400)
3of Title 2 of Part 6 of Division 4 of the Civil Code, or to enforce
4and foreclose an assessment lien on a common interest
5development as defined in Section 4100 or 6534 of the Civil Code,
6where the amount of the liens is twenty-five thousand dollars
7($25,000) or less. However, if an action to enforce the lien affects
8property that is also affected by a similar pending action that is
9not a limited civil case, or if the total amount of liens sought to be
10foreclosed against the same property aggregates an amount in
11 excess of twenty-five thousand dollars ($25,000), the action is not
12a limited civil case.

13(7) An action for declaratory relief when brought pursuant to
14either of the following:

15(A) By way of cross-complaint as to a right of indemnity with
16respect to the relief demanded in the complaint or a cross-complaint
17in an action or proceeding that is otherwise a limited civil case.

18(B) To conduct a trial after a nonbinding fee arbitration between
19an attorney and client, pursuant to Article 13 (commencing with
20Section 6200) of Chapter 4 of Division 3 of the Business and
21Professions Code, where the amount in controversy is twenty-five
22thousand dollars ($25,000) or less.

23(8) An action to issue a temporary restraining order or
24preliminary injunction; to take an account, where necessary to
25preserve the property or rights of any party to a limited civil case;
26to make any order or perform any act, pursuant to Title 9
27(commencing with Section 680.010) of Part 2 (enforcement of
28judgments) in a limited civil case; to appoint a receiver pursuant
29to Section 564 in a limited civil case; to determine title to personal
30property seized in a limited civil case.

31(9) An action under Article 3 (commencing with Section
32708.210) of Chapter 6 of Division 2 of Title 9 of Part 2 for the
33recovery of an interest in personal property or to enforce the
34liability of the debtor of a judgment debtor where the interest
35claimed adversely is of a value not exceeding twenty-five thousand
36dollars ($25,000) or the debt denied does not exceed twenty-five
37thousand dollars ($25,000).

38(10) An arbitration-related petition filed pursuant to either of
39the following:

P67   1(A) Article 2 (commencing with Section 1292) of Chapter 5 of
2Title 9 of Part 3, except for uninsured motorist arbitration
3proceedings in accordance with Section 11580.2 of the Insurance
4Code, if the petition is filed before the arbitration award becomes
5final and the matter to be resolved by arbitration is a limited civil
6case under paragraphs (1) to (9), inclusive, of subdivision (a) or
7if the petition is filed after the arbitration award becomes final and
8the amount of the award and all other rulings, pronouncements,
9and decisions made in the award are within paragraphs (1) to (9),
10inclusive, of subdivision (a).

11(B) To confirm, correct, or vacate a fee arbitration award
12between an attorney and client that is binding or has become
13binding, pursuant to Article 13 (commencing with Section 6200)
14of Chapter 4 of Division 3 of the Business and Professions Code,
15where the arbitration award is twenty-five thousand dollars
16($25,000) or less.

17(b) The following cases in equity are limited civil cases:

18(1) A case to try title to personal property when the amount
19 involved is not more than twenty-five thousand dollars ($25,000).

20(2) A case when equity is pleaded as a defensive matter in any
21case that is otherwise a limited civil case.

22(3) A case to vacate a judgment or order of the court obtained
23in a limited civil case through extrinsic fraud, mistake,
24inadvertence, or excusable neglect.

25

begin deleteSEC. 21.end delete
26begin insertSEC. 22.end insert  

Section 116.540 of the Code of Civil Procedure, as
27amended by Section 43 of Chapter 181 of the Statutes of 2012, is
28amended to read:

29

116.540.  

(a) Except as permitted by this section, no individual
30other than the plaintiff and the defendant may take part in the
31conduct or defense of a small claims action.

32(b) Except as additionally provided in subdivision (i), a
33corporation may appear and participate in a small claims action
34only through a regular employee, or a duly appointed or elected
35officer or director, who is employed, appointed, or elected for
36purposes other than solely representing the corporation in small
37claims court.

38(c) A party who is not a corporation or a natural person may
39appear and participate in a small claims action only through a
40regular employee, or a duly appointed or elected officer or director,
P68   1or in the case of a partnership, a partner, engaged for purposes
2other than solely representing the party in small claims court.

3(d) If a party is an individual doing business as a sole
4proprietorship, the party may appear and participate in a small
5claims action by a representative and without personally appearing
6if both of the following conditions are met:

7(1) The claim can be proved or disputed by evidence of an
8account that constitutes a business record as defined in Section
91271 of the Evidence Code, and there is no other issue of fact in
10the case.

11(2) The representative is a regular employee of the party for
12purposes other than solely representing the party in small claims
13actions and is qualified to testify to the identity and mode of
14preparation of the business record.

15(e) A plaintiff is not required to personally appear, and may
16submit declarations to serve as evidence supporting his or her claim
17or allow another individual to appear and participate on his or her
18behalf, if (1) the plaintiff is serving on active duty in the United
19States Armed Forces outside this state, (2) the plaintiff was
20assigned to his or her duty station after his or her claim arose, (3)
21the assignment is for more than six months, (4) the representative
22is serving without compensation, and (5) the representative has
23appeared in small claims actions on behalf of others no more than
24four times during the calendar year. The defendant may file a claim
25in the same action in an amount not to exceed the jurisdictional
26limits stated in Sections 116.220, 116.221, and 116.231.

27(f) A party incarcerated in a county jail, a Department of
28Corrections and Rehabilitation facility, or a Division of Juvenile
29Facilities facility is not required to personally appear, and may
30submit declarations to serve as evidence supporting his or her
31claim, or may authorize another individual to appear and participate
32on his or her behalf if that individual is serving without
33compensation and has appeared in small claims actions on behalf
34of others no more than four times during the calendar year.

35(g) A defendant who is a nonresident owner of real property
36may defend against a claim relating to that property without
37personally appearing by (1) submitting written declarations to
38serve as evidence supporting his or her defense, (2) allowing
39another individual to appear and participate on his or her behalf if
40that individual is serving without compensation and has appeared
P69   1in small claims actions on behalf of others no more than four times
2during the calendar year, or (3) taking the action described in both
3(1) and (2).

4(h) A party who is an owner of rental real property may appear
5and participate in a small claims action through a property agent
6under contract with the owner to manage the rental of that property,
7if (1) the owner has retained the property agent principally to
8manage the rental of that property and not principally to represent
9the owner in small claims court, and (2) the claim relates to the
10rental property.

11(i) A party that is an association created to manage a common
12interest development, as defined in Section 4100 or in Sections
136528 and 6534 of the Civil Code, may appear and participate in a
14small claims action through an agent, a management company
15representative, or bookkeeper who appears on behalf of that
16association.

17(j) At the hearing of a small claims action, the court shall require
18any individual who is appearing as a representative of a party under
19subdivisions (b) to (i), inclusive, to file a declaration stating (1)
20that the individual is authorized to appear for the party, and (2)
21the basis for that authorization. If the representative is appearing
22under subdivision (b), (c), (d), (h), or (i), the declaration also shall
23state that the individual is not employed solely to represent the
24party in small claims court. If the representative is appearing under
25subdivision (e), (f), or (g), the declaration also shall state that the
26representative is serving without compensation, and has appeared
27in small claims actions on behalf of others no more than four times
28during the calendar year.

29(k) A husband or wife who sues or who is sued with his or her
30spouse may appear and participate on behalf of his or her spouse
31if (1) the claim is a joint claim, (2) the represented spouse has
32given his or her consent, and (3) the court determines that the
33interests of justice would be served.

34(l) If the court determines that a party cannot properly present
35his or her claim or defense and needs assistance, the court may in
36its discretion allow another individual to assist that party.

37(m) Nothing in this section shall operate or be construed to
38authorize an attorney to participate in a small claims action except
39as expressly provided in Section 116.530.

P70   1

begin deleteSEC. 22.end delete
2begin insertSEC. 23.end insert  

Section 12191 of the Government Code is amended
3to read:

4

12191.  

The miscellaneous business entity filing fees are the
5following:

6(a) Foreignbegin delete Associationsend deletebegin insert associationsend insert, as defined in Sections
7170 and 171 of the Corporations Code:

8(1) Filing the statement and designation upon the qualification
9of a foreign association pursuant to Section 2105 of the
10Corporations Code: One hundred dollars ($100).

11(2) Filing an amended statement and designation by a foreign
12association pursuant to Section 2107 of the Corporations Code:
13Thirty dollars ($30).

14(3) Filing a certificate showing the surrender of the right of a
15foreign association to transact intrastate business pursuant to
16Section 2112 of the Corporations Code: No fee.

17(b) Unincorporated Associations:

18(1) Filing a statement in accordance with Section 18200 of the
19Corporations Code as to principal place of office or place for
20sending notices or designating agent for service: Twenty-five
21dollars ($25).

22(2) Insignia Registrations: Ten dollars ($10).

23(c) Community Associations and Common Interest
24Developments:

25(1) Filing a statement by a community association in accordance
26with Section 5405 of the Civil Code to register the common interest
27development that it manages: An amount not to exceed thirty
28dollars ($30).

29(2) Filing an amended statement by a community association
30in accordance with Section 5405 of the Civil Code: No fee.

31

begin deleteSEC. 23.end delete
32begin insertSEC. 24.end insert  

Section 12956.1 of the Government Code, as amended
33by Section 49 of Chapter 181 of the Statutes of 2012, is amended
34 to read:

35

12956.1.  

(a) As used in this section, “association,” “governing
36documents,” and “declaration” have the same meanings as set forth
37in Sections 4080, 4135, and 4150 or Sections 6528, 6546, and
386552 of the Civil Code.

39(b) (1) A county recorder, title insurance company, escrow
40company, real estate broker, real estate agent, or association that
P71   1provides a copy of a declaration, governing document, or deed to
2any person shall place a cover page or stamp on the first page of
3the previously recorded document or documents stating, in at least
414-point boldface type, the following:


6“If this document contains any restriction based on race, color,
7religion, sex, gender, gender identity, gender expression, sexual
8 orientation, familial status, marital status, disability, genetic
9information, national origin, source of income as defined in
10subdivision (p) of Section 12955, or ancestry, that restriction
11violates state and federal fair housing laws and is void, and may
12be removed pursuant to Section 12956.2 of the Government Code.
13Lawful restrictions under state and federal law on the age of
14occupants in senior housing or housing for older persons shall not
15be construed as restrictions based on familial status.”


17(2) The requirements of paragraph (1) shall not apply to
18documents being submitted for recordation to a county recorder.

19(c) Any person who records a document for the express purpose
20of adding a racially restrictive covenant is guilty of a misdemeanor.
21The county recorder shall not incur any liability for recording the
22document. Notwithstanding any other provision of law, a
23 prosecution for a violation of this subdivision shall commence
24within three years after the discovery of the recording of the
25document.

26

begin deleteSEC. 24.end delete
27begin insertSEC. 25.end insert  

Section 12956.2 of the Government Code, as amended
28by Section 50 of Chapter 181 of the Statutes of 2012, is amended
29 to read:

30

12956.2.  

(a) A person who holds an ownership interest of
31record in property that he or she believes is the subject of an
32unlawfully restrictive covenant in violation of subdivision (l) of
33Section 12955 may record a document titled Restrictive Covenant
34Modification. The county recorder may choose to waive the fee
35prescribed for recording and indexing instruments pursuant to
36Section 27361 in the case of the modification document provided
37for in this section. The modification document shall include a
38complete copy of the original document containing the unlawfully
39restrictive language with the unlawfully restrictive language
40stricken.

P72   1(b) Before recording the modification document, the county
2recorder shall submit the modification document and the original
3document to the county counsel who shall determine whether the
4original document contains an unlawful restriction based on race,
5color, religion, sex, gender, gender identity, gender expression,
6sexual orientation, familial status, marital status, disability, national
7origin, source of income as defined in subdivision (p) of Section
812955, or ancestry. The county counsel shall return the documents
9and inform the county recorder of its determination. The county
10recorder shall refuse to record the modification document if the
11county counsel finds that the original document does not contain
12an unlawful restriction as specified in this paragraph.

13(c) The modification document shall be indexed in the same
14manner as the original document being modified. It shall contain
15a recording reference to the original document in the form of a
16book and page or instrument number, and date of the recording.

17(d) Subject to covenants, conditions, and restrictions that were
18recorded after the recording of the original document that contains
19the unlawfully restrictive language and subject to covenants,
20conditions, and restrictions that will be recorded after the
21Restrictive Covenant Modification, the restrictions in the
22Restrictive Covenant Modification, once recorded, are the only
23restrictions having effect on the property. The effective date of the
24terms and conditions of the modification document shall be the
25same as the effective date of the original document.

26(e) The county recorder shall make available to the public
27Restrictive Covenant Modification forms.

28(f) If the holder of an ownership interest of record in property
29causes to be recorded a modified document pursuant to this section
30that contains modifications not authorized by this section, the
31county recorder shall not incur liability for recording the document.
32The liability that may result from the unauthorized recordation is
33the sole responsibility of the holder of the ownership interest of
34record who caused the modified recordation.

35(g) This section does not apply to persons holding an ownership
36interest in property that is part of a common interest development
37as defined in Section 4100 or 6534 of the Civil Code if the board
38of directors of that common interest development is subject to the
39requirements of subdivision (b) of Section 4225 or of subdivision
40(b) of Section 6606 of the Civil Code.

P73   1

begin deleteSEC. 25.end delete
2begin insertSEC. 26.end insert  

Section 53341.5 of the Government Code, as amended
3by Section 51 of Chapter 181 of the Statutes of 2012, is amended
4 to read:

5

53341.5.  

(a) If a lot, parcel, or unit of a subdivision is subject
6to a special tax levied pursuant to this chapter, the subdivider, his
7or her agent, or representative, shall not sell, or lease for a term
8exceeding five years, or permit a prospective purchaser or lessor
9to sign a contract of purchase or a deposit receipt or any
10substantially equivalent document in the event of a lease with
11respect to the lot, parcel, or unit, or cause it to be sold or leased
12for a term exceeding five years, until the prospective purchaser or
13lessee of the lot, parcel, or unit has been furnished with and has
14signed a written notice as provided in this section. The notice shall
15contain the heading “NOTICE OF SPECIAL TAX” in type no
16smaller than 8-point type, and shall be in substantially the following
17form. The form may be modified as needed to clearly and
18accurately describe the tax structure and other characteristics of
19districts created before January 1, 1993, or to clearly and accurately
20consolidate information about the tax structure and other
21characteristics of two or more districts that levy or are authorized
22to levy special taxes with respect to the lot, parcel, or unit:


232425NOTICE OF SPECIAL TAX
26COMMUNITY FACILITIES DISTRICT NO. ___
27COUNTY OF ____, CALIFORNIA
28
29


30TO: THE PROSPECTIVE PURCHASER OF THE REAL
31PROPERTY KNOWN AS:


32

 

   

   

P73  353615P73  19

 


37THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR
38ENTERING INTO A CONTRACT TO PURCHASE THIS
39PROPERTY. THE SELLER IS REQUIRED TO GIVE YOU THIS
40NOTICE AND TO OBTAIN A COPY SIGNED BY YOU TO
P74   1INDICATE THAT YOU HAVE RECEIVED AND READ A
2COPY OF THIS NOTICE.

3(1) This property is subject to a special tax, that is in addition
4to the regular property taxes and any other charges, fees, special
5taxes, and benefit assessments on the parcel. It is imposed on this
6property because it is a new development, and is not necessarily
7imposed generally upon property outside of this new development.
8If you fail to pay this tax when due each year, the property may
9be foreclosed upon and sold. The tax is used to provide public
10facilities or services that are likely to particularly benefit the
11property. YOU SHOULD TAKE THIS TAX AND THE
12BENEFITS FROM THE FACILITIES AND SERVICES FOR
13WHICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER
14TO BUY THIS PROPERTY.

15(2) The maximum special tax that may be levied against this
16parcel to pay for public facilities is $______ during the ____-__
17tax year. This amount will increase by __ percent per year after
18that (if applicable). The special tax will be levied each year until
19all of the authorized facilities are built and all special tax bonds
20are repaid, but in any case not after the ____-__ tax year. An
21additional special tax will be used to pay for ongoing service costs,
22if applicable. The maximum amount of this tax is ____ dollars
23($____) during the ____-__ tax year. This amount may increase
24by ____, if applicable, and that part may be levied until the
25____-__ tax year (or forever, as applicable).

26(3) The authorized facilities that are being paid for by the special
27taxes, and by the money received from the sale of bonds that are
28being repaid by the special taxes, are:

29These facilities may not yet have all been constructed or acquired
30and it is possible that some may never be constructed or acquired.

31In addition, the special taxes may be used to pay for costs of the
32following services:

33YOU MAY OBTAIN A COPY OF THE RESOLUTION OF
34FORMATION THAT AUTHORIZED CREATION OF THE
35COMMUNITY FACILITIES DISTRICT, AND THAT SPECIFIES
36MORE PRECISELY HOW THE SPECIAL TAX IS
37APPORTIONED AND HOW THE PROCEEDS OF THE TAX
38WILL BE USED, FROM THE ____ (name of jurisdiction) BY
39CALLING ____ (telephone number). THERE MAY BE A
P75   1CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE
2REASONABLE COST OF PROVIDING THE DOCUMENT.

3I (WE) ACKNOWLEDGE THAT I (WE) HAVE READ THIS
4NOTICE AND RECEIVED A COPY OF THIS NOTICE PRIOR
5TO ENTERING INTO A CONTRACT TO PURCHASE OR
6SIGNING A DEPOSIT RECEIPT WITH RESPECT TO THE
7ABOVE-REFERENCED PROPERTY. I (WE) UNDERSTAND
8THAT I (WE) MAY TERMINATE THE CONTRACT TO
9PURCHASE OR DEPOSIT RECEIPT WITHIN THREE DAYS
10AFTER RECEIVING THIS NOTICE IN PERSON OR WITHIN
11FIVE DAYS AFTER IT WAS DEPOSITED IN THE MAIL BY
12GIVING WRITTEN NOTICE OF THAT TERMINATION TO
13THE OWNER, SUBDIVIDER, OR AGENT SELLING THE
14PROPERTY.

 

DATE:   

   

   

   

   

   

P73  19

 

20(b) “Subdivision,” as used in subdivision (a), means improved
21or unimproved land that is divided or proposed to be divided for
22the purpose of sale, lease, or financing, whether immediate or
23future, into two or more lots, parcels, or units and includes a
24condominium project, as defined by Section 4125 or 6542 of the
25Civil Code, a community apartment project, a stock cooperative,
26and a limited-equity housing cooperative, as defined in Sections
2711004, 11003.2, and 11003.4, respectively, of the Business and
28Professions Code.

29(c) The buyer shall have three days after delivery in person or
30five days after delivery by deposit in the mail of any notice required
31by this section, to terminate his or her agreement by delivery of
32written notice of that termination to the owner, subdivider, or agent.

33(d) The failure to furnish the notice to the buyer or lessee, and
34failure of the buyer or lessee to sign the notice of a special tax,
35shall not invalidate any grant, conveyance, lease, or encumbrance.

36(e) Any person or entity who willfully violates the provisions
37of this section shall be liable to the purchaser of a lot or unit that
38is subject to the provisions of this section, for actual damages, and
39in addition thereto, shall be guilty of a public offense punishable
40by a fine in an amount not to exceed five hundred dollars ($500).
P76   1In an action to enforce a liability or fine, the prevailing party shall
2be awarded reasonable attorney’s fees.

3

begin deleteSEC. 26.end delete
4begin insertSEC. 27.end insert  

Section 65008 of the Government Code, as amended
5by Section 52 of Chapter 181 of the Statutes of 2012, is amended
6to read:

7

65008.  

(a) Any action pursuant to this title by any city, county,
8city and county, or other local governmental agency in this state
9is null and void if it denies to any individual or group of individuals
10the enjoyment of residence, landownership, tenancy, or any other
11land use in this state because of any of the following reasons:

12(1) (A) The lawful occupation, age, or any characteristic of the
13individual or group of individuals listed in subdivision (a) or (d)
14of Section 12955, as those bases are defined in Sections 12926,
1512926.1, subdivision (m) and paragraph (1) of subdivision (p) of
16Section 12955 and Section 12955.2.

17(B) Notwithstanding subparagraph (A), with respect to familial
18 status, subparagraph (A) shall not be construed to apply to housing
19for older persons, as defined in Section 12955.9. With respect to
20familial status, nothing in subparagraph (A) shall be construed to
21affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the
22Civil Code, relating to housing for senior citizens. Subdivision (d)
23of Section 51, Section 4760, and Section 6714 of the Civil Code,
24and subdivisions (n), (o), and (p) of Section 12955 of this code
25shall apply to subparagraph (A).

26(2) The method of financing of any residential development of
27the individual or group of individuals.

28(3) The intended occupancy of any residential development by
29persons or families of very low, low, moderate, or middle income.

30(b) (1) No city, county, city and county, or other local
31governmental agency shall, in the enactment or administration of
32ordinances pursuant to any law, including this title, prohibit or
33discriminate against any residential development or emergency
34shelter for any of the following reasons:

35(A) Because of the method of financing.

36(B) (i) Because of the lawful occupation, age, or any
37characteristic listed in subdivision (a) or (d) of Section 12955, as
38those characteristics are defined in Sections 12926, 12926.1,
39subdivision (m) and paragraph (1) of subdivision (p) of Section
P77   112955, and Section 12955.2 of the owners or intended occupants
2of the residential development or emergency shelter.

3(ii) Notwithstanding clause (i), with respect to familial status,
4clause (i) shall not be construed to apply to housing for older
5persons, as defined in Section 12955.9. With respect to familial
6status, nothing in clause (i) shall be construed to affect Sections
751.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating
8to housing for senior citizens. Subdivision (d) of Section 51,
9Section 4760, and Section 6714 of the Civil Code, and subdivisions
10(n), (o), and (p) of Section 12955 of this code shall apply to clause
11(i).

12(C) Because the development or shelter is intended for
13occupancy by persons and families of very low, low, or moderate
14income, as defined in Section 50093 of the Health and Safety Code,
15or persons and families of middle income.

16(D) Because the development consists of a multifamily
17residential project that is consistent with both the jurisdiction’s
18zoning ordinance and general plan as they existed on the date the
19application was deemed complete, except that a project shall not
20be deemed to be inconsistent with the zoning designation for the
21site if that zoning designation is inconsistent with the general plan
22only because the project site has not been rezoned to conform with
23a more recently adopted general plan.

24(2) The discrimination prohibited by this subdivision includes
25the denial or conditioning of a residential development or shelter
26because of, in whole or in part, either of the following:

27(A) The method of financing.

28(B) The occupancy of the development by persons protected by
29this subdivision, including, but not limited to, persons and families
30of very low, low, or moderate income.

31(3) A city, county, city and county, or other local government
32agency may not, pursuant to subdivision (d) of Section 65589.5,
33disapprove a housing development project or condition approval
34of a housing development project in a manner that renders the
35project infeasible if the basis for the disapproval or conditional
36approval includes any of the reasons prohibited in paragraph (1)
37or (2).

38(c) For the purposes of this section, “persons and families of
39middle income” means persons and families whose income does
P78   1not exceed 150 percent of the median income for the county in
2which the persons or families reside.

3(d) (1) No city, county, city and county, or other local
4governmental agency may impose different requirements on a
5residential development or emergency shelter that is subsidized,
6financed, insured, or otherwise assisted by the federal or state
7government or by a local public entity, as defined in Section 50079
8of the Health and Safety Code, than those imposed on nonassisted
9developments, except as provided in subdivision (e). The
10discrimination prohibited by this subdivision includes the denial
11or conditioning of a residential development or emergency shelter
12based in whole or in part on the fact that the development is
13subsidized, financed, insured, or otherwise assisted as described
14in this paragraph.

15(2) (A) No city, county, city and county, or other local
16governmental agency may, because of the lawful occupation age,
17or any characteristic of the intended occupants listed in subdivision
18(a) or (d) of Section 12955, as those characteristics are defined in
19Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
20subdivision (p) of Section 12955, and Section 12955.2 or because
21the development is intended for occupancy by persons and families
22of very low, low, moderate, or middle income, impose different
23requirements on these residential developments than those imposed
24on developments generally, except as provided in subdivision (e).

25(B) Notwithstanding subparagraph (A), with respect to familial
26status, subparagraph (A) shall not be construed to apply to housing
27for older persons, as defined in Section 12955.9. With respect to
28familial status, nothing in subparagraph (A) shall be construed to
29affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the
30Civil Code, relating to housing for senior citizens. Subdivision (d)
31of Section 51, Section 4760, and Section 6714 of the Civil Code,
32and subdivisions (n), (o), and (p) of Section 12955 of this code
33shall apply to subparagraph (A).

34(e) Notwithstanding subdivisions (a) to (d), inclusive, this
35section and this title do not prohibit either of the following:

36(1) The County of Riverside from enacting and enforcing zoning
37to provide housing for older persons, in accordance with state or
38federal law, if that zoning was enacted prior to January 1, 1995.

39(2) Any city, county, or city and county from extending
40preferential treatment to residential developments or emergency
P79   1shelters assisted by the federal or state government or by a local
2public entity, as defined in Section 50079 of the Health and Safety
3Code, or other residential developments or emergency shelters
4intended for occupancy by persons and families of low and
5moderate income, as defined in Section 50093 of the Health and
6Safety Code, or persons and families of middle income, or
7agricultural employees, as defined in subdivision (b) of Section
81140.4 of the Labor Code, and their families. This preferential
9treatment may include, but need not be limited to, reduction or
10waiver of fees or changes in architectural requirements, site
11development and property line requirements, building setback
12requirements, or vehicle parking requirements that reduce
13development costs of these developments.

14(f) “Residential development,” as used in this section, means a
15single-family residence or a multifamily residence, including
16manufactured homes, as defined in Section 18007 of the Health
17and Safety Code.

18(g) This section shall apply to chartered cities.

19(h) The Legislature finds and declares that discriminatory
20practices that inhibit the development of housing for persons and
21families of very low, low, moderate, and middle incomes, or
22emergency shelters for the homeless, are a matter of statewide
23concern.

24

begin deleteSEC. 27.end delete
25begin insertSEC. 28.end insert  

Section 66411 of the Government Code, as amended
26by Section 55 of Chapter 181 of the Statutes of 2012, is amended
27to read:

28

66411.  

Regulation and control of the design and improvement
29of subdivisions are vested in the legislative bodies of local
30agencies. Each local agency shall, by ordinance, regulate and
31control the initial design and improvement of common interest
32developments as defined in Section 4100 or 6534 of the Civil Code
33and subdivisions for which this division requires a tentative and
34final or parcel map. In the development, adoption, revision, and
35application of this type of ordinance, the local agency shall comply
36with the provisions of Section 65913.2. The ordinance shall
37specifically provide for proper grading and erosion control,
38including the prevention of sedimentation or damage to offsite
39property. Each local agency may by ordinance regulate and control
40other subdivisions, provided that the regulations are not more
P80   1restrictive than the regulations for those subdivisions for which a
2tentative and final or parcel map are required by this division, and
3provided further that the regulations shall not be applied to
4short-term leases (terminable by either party on not more than 30
5days’ notice in writing) of a portion of the operating right-of-way
6of a railroad corporation as defined by Section 230 of the Public
7Utilities Code unless a showing is made in individual cases, under
8substantial evidence, that public policy necessitates the application
9of the regulations to those short-term leases in individual cases.

10

begin deleteSEC. 28.end delete
11begin insertSEC. 29.end insert  

Section 66412 of the Government Code, as amended
12by Section 56 of Chapter 181 of the Statutes of 2012, is amended
13to read:

14

66412.  

This division shall be inapplicable to any of the
15following:

16(a) The financing or leasing of apartments, offices, stores, or
17similar space within apartment buildings, industrial buildings,
18commercial buildings, mobilehome parks, or trailer parks.

19(b) Mineral, oil, or gas leases.

20(c) Land dedicated for cemetery purposes under the Health and
21Safety Code.

22(d) A lot line adjustment between four or fewer existing
23adjoining parcels, where the land taken from one parcel is added
24to an adjoining parcel, and where a greater number of parcels than
25originally existed is not thereby created, if the lot line adjustment
26is approved by the local agency, or advisory agency. A local agency
27or advisory agency shall limit its review and approval to a
28determination of whether or not the parcels resulting from the lot
29line adjustment will conform to the local general plan, any
30applicable specific plan, any applicable coastal plan, and zoning
31and building ordinances. An advisory agency or local agency shall
32not impose conditions or exactions on its approval of a lot line
33adjustment except to conform to the local general plan, any
34applicable specific plan, any applicable coastal plan, and zoning
35and building ordinances, to require the prepayment of real property
36taxes prior to the approval of the lot line adjustment, or to facilitate
37the relocation of existing utilities, infrastructure, or easements. No
38tentative map, parcel map, or final map shall be required as a
39condition to the approval of a lot line adjustment. The lot line
40adjustment shall be reflected in a deed, which shall be recorded.
P81   1No record of survey shall be required for a lot line adjustment
2unless required by Section 8762 of the Business and Professions
3Code. A local agency shall approve or disapprove a lot line
4adjustment pursuant to the Permit Streamlining Act (Chapter 4.5
5(commencing with Section 65920) of Division 1).

6(e) Boundary line or exchange agreements to which the State
7Lands Commission or a local agency holding a trust grant of tide
8and submerged lands is a party.

9(f) Any separate assessment under Section 2188.7 of the
10Revenue and Taxation Code.

11(g) The conversion of a community apartment project, as defined
12in Section 4105 of the Civil Code, to a condominium, as defined
13in Section 783 of the Civil Code, but only if all of the following
14requirements are met:

15(1) The property was subdivided before January 1, 1982, as
16evidenced by a recorded deed creating the community apartment
17project.

18(2) Subject to compliance with Sections 4290 and 4295 of the
19Civil Code, all conveyances and other documents necessary to
20effectuate the conversion shall be executed by the required number
21of owners in the project as specified in the bylaws or other
22organizational documents. If the bylaws or other organizational
23documents do not expressly specify the number of owners
24necessary to execute the conveyances and other documents, a
25majority of owners in the project shall be required to execute the
26conveyances or other documents. Conveyances and other
27documents executed under the foregoing provisions shall be
28binding upon and affect the interests of all parties in the project.

29(3) If subdivision, as defined in Section 66424, of the property
30occurred after January 1, 1964, both of the following requirements
31are met:

32(A) A final or parcel map of that subdivision was approved by
33the local agency and recorded, with all of the conditions of that
34map remaining in effect after the conversion.

35(B) No more than 49 percent of the units in the project were
36owned by any one person as defined in Section 17, including an
37incorporator or director of the community apartment project, on
38January 1, 1982.

P82   1(4) The local agency certifies that the above requirements were
2satisfied if the local agency, by ordinance, provides for that
3certification.

4(h)  The conversion of a stock cooperative, as defined in Section
54190 or 6566 of the Civil Code, to a condominium, as defined in
6Section 783 of the Civil Code, but only if all of the following
7requirements are met:

8(1) The property was subdivided before January 1, 1982, as
9evidenced by a recorded deed creating the stock cooperative, an
10assignment of lease, or issuance of shares to a stockholder.

11(2) A person renting a unit in a cooperative shall be entitled at
12the time of conversion to all tenant rights in state or local law,
13including, but not limited to, rights respecting first refusal, notice,
14and displacement and relocation benefits.

15(3) Subject to compliance with Sections 4290 and 4295, or with
16Sections 6626 and 6628, of the Civil Code, all conveyances and
17other documents necessary to effectuate the conversion shall be
18executed by the required number of owners in the cooperative as
19specified in the bylaws or other organizational documents. If the
20bylaws or other organizational documents do not expressly specify
21the number of owners necessary to execute the conveyances and
22other documents, a majority of owners in the cooperative shall be
23required to execute the conveyances or other documents.
24Conveyances and other documents executed under the foregoing
25provisions shall be binding upon and affect the interests of all
26parties in the cooperative.

27(4) If subdivision, as defined in Section 66424, of the property
28occurred after January 1, 1980, both of the following requirements
29are met:

30(A) A final or parcel map of that subdivision was approved by
31the local agency and recorded, with all of the conditions of that
32map remaining in effect after the conversion.

33(B) No more than 49 percent of the shares in the project were
34owned by any one person as defined in Section 17, including an
35incorporator or director of the cooperative, on January 1, 1982.

36(5) The local agency certifies that the above requirements were
37satisfied if the local agency, by ordinance, provides for that
38certification.

39(i) The leasing of, or the granting of an easement to, a parcel of
40land, or any portion or portions thereof, in conjunction with the
P83   1financing, erection, and sale or lease of a wind powered electrical
2generation device on the land, if the project is subject to
3discretionary action by the advisory agency or legislative body.

4(j) The leasing or licensing of a portion of a parcel, or the
5granting of an easement, use permit, or similar right on a portion
6of a parcel, to a telephone corporation as defined in Section 234
7of the Public Utilities Code, exclusively for the placement and
8operation of cellular radio transmission facilities, including, but
9not limited to, antennae support structures, microwave dishes,
10structures to house cellular communications transmission
11equipment, power sources, and other equipment incidental to the
12transmission of cellular communications, if the project is subject
13to discretionary action by the advisory agency or legislative body.

14(k) Leases of agricultural land for agricultural purposes. As used
15in this subdivision, “agricultural purposes” means the cultivation
16of food or fiber, or the grazing or pasturing of livestock.

17(l) The leasing of, or the granting of an easement to, a parcel of
18land, or any portion or portions thereof, in conjunction with the
19financing, erection, and sale or lease of a solar electrical generation
20device on the land, if the project is subject to review under other
21local agency ordinances regulating design and improvement or, if
22the project is subject to other discretionary action by the advisory
23agency or legislative body.

24(m) The leasing of, or the granting of an easement to, a parcel
25of land or any portion or portions of the land in conjunction with
26a biogas project that uses, as part of its operation, agricultural waste
27or byproducts from the land where the project is located and
28reduces overall emissions of greenhouse gases from agricultural
29operations on the land if the project is subject to review under
30other local agency ordinances regulating design and improvement
31or if the project is subject to discretionary action by the advisory
32agency or legislative body.

33

begin deleteSEC. 29.end delete
34begin insertSEC. 30.end insert  

Section 66424 of the Government Code, as amended
35by Section 57 of Chapter 181 of the Statutes of 2012, is amended
36to read:

37

66424.  

“Subdivision” means the division, by any subdivider,
38of any unit or units of improved or unimproved land, or any portion
39thereof, shown on the latest equalized county assessment roll as a
40unit or as contiguous units, for the purpose of sale, lease, or
P84   1financing, whether immediate or future. Property shall be
2considered as contiguous units, even if it is separated by roads,
3streets, utility easement, or railroad rights-of-way. “Subdivision”
4includes a condominium project, as defined in Section 4125 or
56542 of the Civil Code, a community apartment project, as defined
6in Section 4105 of the Civil Code, or the conversion of five or
7more existing dwelling units to a stock cooperative, as defined in
8of Section 4190 or 6566 of the Civil Code.

9

begin deleteSEC. 30.end delete
10begin insertSEC. 31.end insert  

Section 66427 of the Government Code, as amended
11by Section 58 of Chapter 181 of the Statutes of 2012, is amended
12to read:

13

66427.  

(a) A map of a condominium project, a community
14apartment project, or of the conversion of five or more existing
15dwelling units to a stock cooperative project need not show the
16buildings or the manner in which the buildings or the airspace
17above the property shown on the map are to be divided, nor shall
18the governing body have the right to refuse approval of a parcel,
19tentative, or final map of the project on account of the design or
20the location of buildings on the property shown on the map that
21are not violative of local ordinances or on account of the manner
22in which airspace is to be divided in conveying the condominium.

23(b) A map need not include a condominium plan or plans, as
24defined in Section 4120 or 6540 of the Civil Code, and the
25governing body may not refuse approval of a parcel, tentative, or
26final map of the project on account of the absence of a
27condominium plan.

28(c) Fees and lot design requirements shall be computed and
29imposed with respect to those maps on the basis of parcels or lots
30of the surface of the land shown thereon as included in the project.

31(d) Nothing herein shall be deemed to limit the power of the
32legislative body to regulate the design or location of buildings in
33a project by or pursuant to local ordinances.

34(e) If the governing body has approved a parcel map or final
35map for the establishment of condominiums on property pursuant
36to the requirements of this division, the separation of a
37three-dimensional portion or portions of the property from the
38remainder of the property or the division of that three-dimensional
39portion or portions into condominiums shall not constitute a further
P85   1subdivision as defined in Section 66424, provided each of the
2following conditions has been satisfied:

3(1) The total number of condominiums established is not
4increased above the number authorized by the local agency in
5approving the parcel map or final map.

6(2) A perpetual estate or an estate for years in the remainder of
7the property is held by the condominium owners in undivided
8interests in common, or by an association as defined in Section
94100 or 6528 of the Civil Code, and the duration of the estate in
10the remainder of the property is the same as the duration of the
11estate in the condominiums.

12(3) The three-dimensional portion or portions of property are
13described on a condominium plan or plans, as defined in Section
144120 or 6540 of the Civil Code.

15

begin deleteSEC. 31.end delete
16begin insertSEC. 32.end insert  

Section 66452.10 of the Government Code, as
17amended by Section 59 of Chapter 181 of the Statutes of 2012, is
18amended to read:

19

66452.10.  

A stock cooperative, as defined in Section 11003.2
20of the Business and Professions Code, or a community apartment
21project, as defined in Section 11004 of the Business and
22Professions Code, shall not be converted to a condominium, as
23defined in Section 783 of the Civil Code, unless the required
24number of (1) owners and (2) trustees or beneficiaries of each
25recorded deed of trust and mortgagees of each recorded mortgage
26in the cooperative or project, as specified in the bylaws, or other
27organizational documents, have voted in favor of the conversion.
28If the bylaws or other organizational documents do not expressly
29specify the number of votes required to approve the conversion,
30a majority vote of the (1) owners and (2) trustees or beneficiaries
31of each recorded deed of trust and mortgagees of each recorded
32mortgage in the cooperative or project shall be required. Upon
33approval of the conversion as set forth above and in compliance
34with Sections 4290 and 4295 or Sections 6626 and 6628 of the
35Civil Code, all conveyances and other documents necessary to
36effectuate the conversion shall be executed by the required number
37of owners in the cooperative or project as specified in the bylaws
38or other organizational documents. If the bylaws or other
39organizational documents do not expressly specify the number of
40owners necessary to execute the conveyances or other documents,
P86   1a majority of owners in the cooperative or project shall be required
2to execute the conveyances and other documents. Conveyances
3and other documents executed under the foregoing provisions shall
4be binding upon and affect the interests of all parties in the
5cooperative or project. The provisions of Section 66499.31 shall
6not apply to a violation of this section.

7

begin deleteSEC. 32.end delete
8begin insertSEC. 33.end insert  

Section 66475.2 of the Government Code, as amended
9by Section 60 of Chapter 181 of the Statutes of 2012, is amended
10to read:

11

66475.2.  

(a) There may be imposed by local ordinance a
12requirement of a dedication or an irrevocable offer of dedication
13of land within the subdivision for local transit facilities such as
14bus turnouts, benches, shelters, landing pads, and similar items
15that directly benefit the residents of a subdivision. The irrevocable
16offers may be terminated as provided in subdivisions (c) and (d)
17of Section 66477.2.

18(b) Only the payment of fees in lieu of the dedication of land
19may be required in subdivisions that consist of the subdivision of
20airspace in existing buildings into condominium projects, stock
21cooperatives, or community apartment projects, as those terms are
22defined in Sections 4105, 4125, and 4190 or Sections 6542 and
236566 of the Civil Code.

24

begin deleteSEC. 33.end delete
25begin insertSEC. 34.end insert  

Section 13132.7 of the Health and Safety Code, as
26amended by Section 63 of Chapter 181 of the Statutes of 2012, is
27amended to read:

28

13132.7.  

(a) Within a very high fire hazard severity zone
29designated by the Director of Forestry and Fire Protection pursuant
30to Article 9 (commencing with Section 4201) of Chapter 1 of Part
312 of Division 4 of the Public Resources Code and within a very
32high hazard severity zone designated by a local agency pursuant
33to Chapter 6.8 (commencing with Section 51175) of Part 1 of
34Division 1 of Title 5 of the Government Code, the entire roof
35covering of every existing structure where more than 50 percent
36of the total roof area is replaced within any one-year period, every
37new structure, and any roof covering applied in the alteration,
38repair, or replacement of the roof of every existing structure, shall
39be a fire retardant roof covering that is at least class B as defined
P87   1in the Uniform Building Code, as adopted and amended by the
2State Building Standards Commission.

3(b) In all other areas, the entire roof covering of every existing
4structure where more than 50 percent of the total roof area is
5replaced within any one-year period, every new structure, and any
6roof covering applied in the alteration, repair, or replacement of
7the roof of every existing structure, shall be a fire retardant roof
8covering that is at least class C as defined in the Uniform Building
9Code, as adopted and amended by the State Building Standards
10Commission.

11(c) Notwithstanding subdivision (b), within state responsibility
12areas classified by the State Board of Forestry and Fire Protection
13pursuant to Article 3 (commencing with Section 4125) of Chapter
141 of Part 2 of Division 4 of the Public Resources Code, except for
15those state responsibility areas designated as moderate fire hazard
16responsibility zones, the entire roof covering of every existing
17structure where more than 50 percent of the total roof area is
18replaced within any one-year period, every new structure, and any
19roof covering applied in the alteration, repair, or replacement of
20the roof of every existing structure, shall be a fire retardant roof
21covering that is at least class B as defined in the Uniform Building
22Code, as adopted and amended by the State Building Standards
23Commission.

24(d) (1) Notwithstanding subdivision (a), (b), or (c), within very
25high fire hazard severity zones designated by the Director of
26Forestry and Fire Protection pursuant to Article 9 (commencing
27with Section 4201) of Chapter 1 of Part 2 of Division 4 of the
28Public Resources Code or by a local agency pursuant to Chapter
296.8 (commencing with Section 51175) of Part 1 of Division 1 of
30Title 5 of the Government Code, the entire roof covering of every
31existing structure where more than 50 percent of the total roof area
32is replaced within any one-year period, every new structure, and
33any roof covering applied in the alteration, repair, or replacement
34of the roof of every existing structure, shall be a fire retardant roof
35covering that is at least class A as defined in the Uniform Building
36Code, as adopted and amended by the State Building Standards
37Commission.

38(2) Paragraph (1) does not apply to any jurisdiction containing
39a very high fire hazard severity zone if the jurisdiction fulfills both
40of the following requirements:

P88   1(A) Adopts the model ordinance approved by the State Fire
2Marshal pursuant to Section 51189 of the Government Code or an
3ordinance that substantially conforms to the model ordinance of
4the State Fire Marshal.

5(B) Transmits, upon adoption, a copy of the ordinance to the
6State Fire Marshal.

7(e) The State Building Standards Commission shall incorporate
8the requirements set forth in subdivisions (a), (b), and (c) by
9publishing them as an amendment to the California Building
10Standards Code in accordance with Chapter 4 (commencing with
11Section 18935) of Part 2.5 of Division 13.

12(f) Nothing in this section shall limit the authority of a city,
13county, city and county, or fire protection district in establishing
14more restrictive requirements, in accordance with current law, than
15those specified in this section.

16(g) This section shall not affect the validity of an ordinance,
17adopted prior to the effective date for the relevant roofing standard
18specified in subdivisions (a) and (b), by a city, county, city and
19county, or fire protection district, unless the ordinance mandates
20a standard that is less stringent than the standards set forth in
21subdivision (a), in which case the ordinance shall not be valid on
22or after the effective date for the relevant roofing standard specified
23in subdivisions (a) and (b).

24(h) Any qualified historical building or structure as defined in
25Section 18955 may, on a case-by-case basis, utilize alternative
26roof constructions as provided by the State Historical Building
27Code.

28(i) The installer of the roof covering shall provide certification
29of the roof covering classification, as provided by the manufacturer
30or supplier, to the building owner and, when requested, to the
31agency responsible for enforcement of this part. The installer shall
32also install the roof covering in accordance with the manufacturer’s
33listing.

34(j) No wood roof covering materials shall be sold or applied in
35this state unless both of the following conditions are met:

36(1) The materials have been approved and listed by the State
37Fire Marshal as complying with the requirements of this section.

38(2) The materials have passed at leastbegin delete 5end deletebegin insert fiveend insert years of the 10-year
39natural weathering test. The 10-year natural weathering test
40required by this subdivision shall be conducted in accordance with
P89   1standard 15-2 of the 1994 edition of the Uniform Building Code
2at a testing facility recognized by the State Fire Marshal.

3(k) The Insurance Commissioner shall accept the use of fire
4retardant wood roof covering material that complies with the
5requirements of this section, used in the partial repair or
6replacement of nonfire retardant wood roof covering material, as
7complying with the requirement in Section 2695.9 of Title 10 of
8the California Code of Regulations relative to matching
9replacement items in quality, color, and size.

10(l) No common interest development, as defined in Section 4100
11or 6534 of the Civil Code, may require an owner to install or repair
12a roof in a manner that is in violation of this section. The governing
13documents, as defined in Section 4150 or 6552 of the Civil Code,
14of a common interest development within a very high fire severity
15zone shall allow for at least one type of fire retardant roof covering
16material that meets the requirements of this section.

17

begin deleteSEC. 34.end delete
18begin insertSEC. 35.end insert  

Section 19850 of the Health and Safety Code, as
19amended by Section 64 of Chapter 181 of the Statutes of 2012, is
20amended to read:

21

19850.  

The building department of every city or county shall
22maintain an official copy, which may be on microfilm or other
23type of photographic copy, of the plans of every building, during
24the life of the building, for which the department issued a building
25permit.

26“Building department” means the department, bureau, or officer
27charged with the enforcement of laws or ordinances regulating the
28erection, construction, or alteration of buildings.

29Except for plans of a common interest development as defined
30in Section 4100 or 6534 of the Civil Code, plans need not be filed
31for:

32(a) Single or multiple dwellings not more than two stories and
33basement in height.

34(b) Garages and other structures appurtenant to buildings
35described under subdivision (a).

36(c) Farm or ranch buildings.

37(d) Any one-story building where the span between bearing
38walls does not exceed 25 feet. The exemption in this subdivision
39does not, however, apply to a steel frame or concrete building.

P90   1

begin deleteSEC. 35.end delete
2begin insertSEC. 36.end insert  

Section 25400.22 of the Health and Safety Code, as
3amended by Section 65 of Chapter 181 of the Statutes of 2012, is
4amended to read:

5

25400.22.  

(a) No later than 10 working days after the date
6when a local health officer determines that property is contaminated
7pursuant to subdivision (b) of Section 25400.20, the local health
8officer shall do all of the following:

9(1) Except as provided in paragraph (2), if the property is real
10property, record with the county recorder a lien on the property.
11The lien shall specify all of the following:

12(A) The name of the agency on whose behalf the lien is imposed.

13(B) The date on which the property is determined to be
14contaminated.

15(C) The legal description of the real property and the assessor’s
16parcel number.

17(D) The record owner of the property.

18(E) The amount of the lien, which shall be the greater of two
19hundred dollars ($200) or the costs incurred by the local health
20officer in compliance with this chapter, including, but not limited
21to, the cost of inspection performed pursuant to Section 25400.19
22and the county recorder’s fee.

23(2) (A) If the property is a mobilehome or manufactured home
24specified in paragraph (2) of subdivision (t) of Section 25400.11,
25amend the permanent record with a restraint on the mobilehome,
26or manufactured home with the Department of Housing and
27Community Development, in the form prescribed by that
28department, providing notice of the determination that the property
29is contaminated.

30(B) If the property is a recreational vehicle specified in
31paragraph (2) of subdivision (t) of Section 25400.11, perfect by
32filing with the Department of Motor Vehicles a vehicle license
33stop on the recreational vehicle in the form prescribed by that
34department, providing notice of the determination that the property
35is contaminated.

36(C) If the property is a mobilehome or manufactured home, not
37subject to paragraph (2) of subdivision (t) of Section 25400.11, is
38located on real property, and is not attached to that real property,
39the local health officer shall record a lien for the real property with
40the county recorder, and the Department of Housing and
P91   1Community Development shall amend the permanent record with
2a restraint for the mobilehome or manufactured home, in the form
3and with the contents prescribed by that department.

4(3) A lien, restraint, or vehicle license stop issued pursuant to
5paragraph (2) shall specify all of the following:

6(A) The name of the agency on whose behalf the lien, restraint,
7or vehicle license stop is imposed.

8(B) The date on which the property is determined to be
9contaminated.

10(C) The legal description of the real property and the assessor’s
11parcel number, and the mailing and street address or space number
12of the manufactured home, mobilehome, or recreational vehicle
13or the vehicle identification number of the recreational vehicle, if
14applicable.

15(D) The registered owner of the mobilehome, manufactured
16home, or recreational vehicle, if applicable, or the name of the
17owner of the real property as indicated in the official county
18records.

19(E) The amount of the lien, if applicable, which shall be the
20greater of two hundred dollars ($200) or the costs incurred by the
21local health officer in compliance with this chapter, including, but
22not limited to, the cost of inspection performed pursuant to Section
2325400.19 and the fee charged by the Department of Housing and
24Community Development and the Department of Motor Vehicles
25pursuant to paragraph (2) of subdivision (b).

26(F) Other information required by the county recorder for the
27lien, the Department of Housing and Community Development
28for the restraint, or the Department of Motor Vehicles for the
29vehicle license stop.

30(4) Issue to persons specified in subdivisions (d), (e), and (f) an
31order prohibiting the use or occupancy of the contaminated portions
32of the property.

33(b) (1) The county recorder’s fees for recording and indexing
34documents provided for in this section shall be in the amount
35specified in Article 5 (commencing with Section 27360) of Chapter
366 of Part 3 of Title 3 of the Government Code.

37(2) The Department of Housing and Community Development
38and the Department of Motor Vehicles may charge a fee to cover
39its administrative costs for recording and indexing documents
40provided for in paragraph (2) of subdivision (a).

P92   1(c) (1) A lien recorded pursuant to subdivision (a) shall have
2the force, effect, and priority of a judgment lien. The restraint
3amending the permanent record pursuant to subdivision (a) shall
4be displayed on any manufactured home or mobilehome title search
5until the restraint is released. The vehicle license stop shall remain
6in effect until it is released.

7(2) The local health officer shall not authorize the release of a
8lien, restraint, or vehicle license stop made pursuant to subdivision
9(a), until one of the following occurs:

10(A) The property owner satisfies the real property lien, or the
11contamination in the mobilehome, manufactured home, or
12recreational vehicle is abated to the satisfaction of the local health
13officer consistent with the notice in the restraint, or vehicle license
14stop and the local health officer issues a release pursuant to Section
1525400.27.

16(B) For a manufactured home or mobilehome, the local health
17officer determines that the unit will be destroyed or permanently
18salvaged. For the purposes of this paragraph, the unit shall not be
19reregistered after this determination is made unless the local health
20 officer issues a release pursuant to Section 25400.27.

21(C) The lien, restraint, or vehicle license stop is extinguished
22by a senior lien in a foreclosure sale.

23(d) Except as otherwise specified in this section, an order issued
24pursuant to this section shall be served, either personally or by
25certified mail, return receipt requested, in the following manner:

26(1) For real property, to all known occupants of the property
27and to all persons who have an interest in the property, as contained
28in the records of the recorder’s office of the county in which the
29property is located.

30(2) In the case of a mobilehome or manufactured home, the
31order shall be served to the legal owner, as defined in Section
3218005.8, each junior lienholder, as defined in Section 18005.3,
33and the registered owner, as defined in Section 18009.5.

34(3) In the case of a recreational vehicle, the order shall be served
35on the legal owner, as defined in Section 370 of the Vehicle Code,
36and the registered owner, as defined in Section 505 of the Vehicle
37Code.

38(e) If the whereabouts of the person described in subdivision
39(d) are unknown and cannot be ascertained by the local health
40officer, in the exercise of reasonable diligence, and the local health
P93   1officer makes an affidavit to that effect, the local health officer
2shall serve the order by personal service or by mailing a copy of
3the order by certified mail, postage prepaid, return receipt
4requested, as follows:

5(1) The order related to real property shall be served to each
6person at the address appearing on the last equalized tax assessment
7roll of the county where the property is located, and to all occupants
8of the affected unit.

9(2) In the case of a mobilehome or manufactured home, the
10order shall be served to the legal owner, as defined in Section
1118005.8, each junior lienholder, as defined in Section 18005.3,
12and the registered owner, as defined in Section 18009.5, at the
13address appearing on the permanent record and all occupants of
14the affected unit at the mobilehome park space.

15(3) In the case of a recreational vehicle, the order shall be served
16on the legal owner, as defined in Section 370 of the Vehicle Code,
17and the registered owner, as defined in Section 505 of the Vehicle
18Code, at the address appearing on the permanent record and all
19occupants of the affected vehicle at the mobilehome park or special
20occupancy park space.

21(f) (1) The local health officer shall also mail a copy of the
22order required by this section to the address of each person or party
23having a recorded right, title, estate, lien, or interest in the property
24and to the association of a common interest development, as
25defined in Sections 4080 and 4100 or Sections 6528 and 6534 of
26the Civil Code.

27(2) In addition to the requirements of paragraph (1), if the
28affected property is a mobilehome, manufactured home, or
29recreational vehicle, specified in paragraph (2) of subdivision (t)
30of Section 25400.11, the order issued by the local health officer
31shall also be served, either personally or by certified mail, return
32receipt requested, to the owner of the mobilehome park or special
33occupancy park.

34(g) The order issued pursuant to this section shall include all of
35the following information:

36(1) A description of the property.

37(2) The parcel identification number, address, or space number,
38if applicable.

39(3) The vehicle identification number, if applicable.

P94   1(4) A description of the local health officer’s intended course
2of action.

3(5) A specification of the penalties for noncompliance with the
4order.

5(6) A prohibition on the use of all or portions of the property
6that are contaminated.

7(7) A description of the measures the property owner is required
8to take to decontaminate the property.

9(8) An indication of the potential health hazards involved.

10(9) A statement that a property owner who fails to provide a
11notice or disclosure that is required by this chapter is subject to a
12civil penalty of up to five thousand dollars ($5,000).

13(h) The local health officer shall provide a copy of the order to
14the local building or code enforcement agency or other appropriate
15agency responsible for the enforcement of the State Housing Law
16(Part 1.5 (commencing with Section 17910) of Division 13).

17(i) The local health officer shall post the order in a conspicuous
18place on the property within one working day of the date that the
19order is issued.

20

begin deleteSEC. 36.end delete
21begin insertSEC. 37.end insert  

Section 25915.2 of the Health and Safety Code, as
22amended by Section 66 of Chapter 181 of the Statutes of 2012, is
23amended to read:

24

25915.2.  

(a) Notice provided pursuant to this chapter shall be
25provided in writing to each individual employee, and shall be
26mailed to other owners designated to receive the notice pursuant
27to subdivision (a) of Section 25915.5, within 15 days of the first
28receipt by the owner of information identifying the presence or
29location of asbestos-containing construction materials in the
30building. This notice shall be provided annually thereafter. In
31addition, if new information regarding those items specified in
32paragraphs (1) to (5), inclusive, of subdivision (a) of Section 25915
33has been obtained within 90 days after the notice required by this
34 subdivision is provided or any subsequent 90-day period, then a
35supplemental notice shall be provided within 15 days of the close
36of that 90-day period.

37(b) Notice provided pursuant to this chapter shall be provided
38to new employees within 15 days of commencement of work in
39the building.

P95   1(c) Notice provided pursuant to this chapter shall be mailed to
2any new owner designated to receive the notice pursuant to
3subdivision (a) of Section 25915.5 within 15 days of the effective
4date of the agreement under which a person becomes a new owner.

5(d) Subdivisions (a) and (c) shall not be construed to require
6owners of a building or part of a building within a residential
7common interest development to mail written notification to other
8owners of a building or part of a building within the residential
9common interest development, if all the following conditions are
10met:

11(1) The association conspicuously posts, in each building or
12part of a building known to contain asbestos-containing materials,
13a large sign in a prominent location that fully informs persons
14entering each building or part of a building within the common
15interest development that the association knows the building
16contains asbestos-containing materials.

17The sign shall also inform persons of the location where further
18information, as required by this chapter, is available about the
19asbestos-containing materials known to be located in the building.

20(2) The owners or association disclose, as soon as practicable
21before the transfer of title of a separate interest in the common
22interest development, to a transferee the existence of
23asbestos-containing material in a building or part of a building
24within the common interest development.

25Failure to comply with this section shall not invalidate the
26transfer of title of real property. This paragraph shall only apply
27to transfers of title of separate interests in the common interest
28development of which the owners have knowledge. As used in
29this section, “association” and “common interest development”
30are defined in Sections 4080 and 4100 or Sections 6528 and 6534
31of the Civil Code.

32(e) If a person contracting with an owner receives notice
33pursuant to this chapter, that contractor shall provide a copy of the
34notice to his or her employees or contractors working within the
35building.

36(f) If the asbestos-containing construction material in the
37building is limited to an area or areas within the building that meet
38all the following criteria:

39(1) Are unique and physically defined.

P96   1(2) Contain asbestos-containing construction materials in
2structural, mechanical, or building materials which are not
3replicated throughout the building.

4(3) Are not connected to other areas through a common
5ventilation system; then, an owner required to give notice to his
6or her employees pursuant to subdivision (a) of Section 25915 or
725915.1 may provide that notice only to the employees working
8within or entering that area or those areas of the building meeting
9the conditions above.

10(g) If the asbestos-containing construction material in the
11building is limited to an area or areas within the building that meet
12all the following criteria:

13(1) Are accessed only by building maintenance employees or
14contractors and are not accessed by tenants or employees in the
15building, other than on an incidental basis.

16(2) Contain asbestos-containing construction materials in
17structural, mechanical, or building materials which are not
18replicated in areas of the building which are accessed by tenants
19and employees.

20(3) The owner knows that no asbestos fibers are being released
21or have the reasonable possibility to be released from the material;
22then, as to that asbestos-containing construction material, an owner
23required to give notice to his or her employees pursuant to
24subdivision (a) of Section 25915 or Section 25915.1 may provide
25that notice only to its building maintenance employees and
26contractors who have access to that area or those areas of the
27building meeting the conditions above.

28(h) In those areas of a building where the asbestos-containing
29construction material is composed only of asbestos fibers which
30are completely encapsulated, if the owner knows that no asbestos
31fibers are being released or have the reasonable possibility to be
32released from that material in its present condition and has no
33knowledge that other asbestos-containing material is present, then
34an owner required to give notice pursuant to subdivision (a) of
35Section 25915 shall provide the information required in paragraph
36(2) of subdivision (a) of Section 25915 and may substitute the
37following notice for the requirements of paragraphs (1), (3), (4),
38and (5) of subdivision (a) of Section 25915:

39(1) The existence of, conclusions from, and a description or list
40of the contents of, that portion of any survey conducted to
P97   1determine the existence and location of asbestos-containing
2construction materials within the building that refers to the
3asbestos-containing materials described in this subdivision, and
4information describing when and where the results of the survey
5are available pursuant to Section 25917.

6(2) Information to convey that moving, drilling, boring, or
7otherwise disturbing the asbestos-containing construction material
8identified may present a health risk and, consequently, should not
9be attempted by an unqualified employee. The notice shall identify
10the appropriate person the employee is required to contact if the
11condition of the asbestos-containing construction material
12deteriorates.

13

begin deleteSEC. 37.end delete
14begin insertSEC. 38.end insert  

Section 33050 of the Health and Safety Code, as
15amended by Section 68 of Chapter 181 of the Statutes of 2012, is
16amended to read:

17

33050.  

(a) It is hereby declared to be the policy of the state
18that in undertaking community redevelopment projects under this
19part there shall be no discrimination because of any basis listed in
20subdivision (a) or (d) of Section 12955 of the Government Code,
21as those bases are defined in Sections 12926, 12926.1, subdivision
22(m) and paragraph (1) of subdivision (p) of Section 12955, and
23Section 12955.2 of the Government Code.

24(b) Notwithstanding subdivision (a), with respect to familial
25status, subdivision (a) shall not be construed to apply to housing
26for older persons, as defined in Section 12955.9 of the Government
27Code. With respect to familial status, nothing in subdivision (a)
28shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
29and 799.5 of the Civil Code, relating to housing for senior citizens.
30Subdivision (d) of Section 51, Section 4760, and Section 6714 of
31the Civil Code, and subdivisions (n), (o), and (p) of Section 12955
32of the Government Code shall apply to subdivision (a).

33

begin deleteSEC. 38.end delete
34begin insertSEC. 39.end insert  

Section 33435 of the Health and Safety Code, as
35amended by Section 69 of Chapter 181 of the Statutes of 2012, is
36amended to read:

37

33435.  

(a) Agencies shall obligate lessees and purchasers of
38real property acquired in redevelopment projects and owners of
39property improved as a part of a redevelopment project to refrain
40from restricting the rental, sale, or lease of the property on any
P98   1basis listed in subdivision (a) or (d) of Section 12955 of the
2Government Code, as those bases are defined in Sections 12926,
312926.1, subdivision (m) and paragraph (1) of subdivision (p) of
4Section 12955, and Section 12955.2 of the Government Code. All
5deeds, leases, or contracts for the sale, lease, sublease, or other
6transfer of any land in a redevelopment project shall contain or be
7subject to the nondiscrimination or nonsegregation clauses hereafter
8prescribed.

9(b) Notwithstanding subdivision (a), with respect to familial
10status, subdivision (a) shall not be construed to apply to housing
11for older persons, as defined in Section 12955.9 of the Government
12Code. With respect to familial status, nothing in subdivision (a)
13shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
14and 799.5 of the Civil Code, relating to housing for senior citizens.
15Subdivision (d) of Section 51, Section 4760, and Section 6714 of
16the Civil Code, and subdivisions (n), (o), and (p) of Section 12955
17of the Government Code shall apply to subdivision (a).

18

begin deleteSEC. 39.end delete
19begin insertSEC. 40.end insert  

Section 33436 of the Health and Safety Code, as
20amended by Section 70 of Chapter 181 of the Statutes of 2012, is
21amended to read:

22

33436.  

Express provisions shall be included in all deeds, leases,
23and contracts that the agency proposes to enter into with respect
24to the sale, lease, sublease, transfer, use, occupancy, tenure, or
25enjoyment of any land in a redevelopment project in substantially
26the following form:

27(a) (1) In deeds the following language shall appear--“The
28grantee herein covenants by and for himself or herself, his or her
29heirs, executors, administrators, and assigns, and all persons
30claiming under or through them, that there shall be no
31discrimination against or segregation of, any person or group of
32persons on account of any basis listed in subdivision (a) or (d) of
33Section 12955 of the Government Code, as those bases are defined
34in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
35subdivision (p) of Section 12955, and Section 12955.2 of the
36Government Code, in the sale, lease, sublease, transfer, use,
37occupancy, tenure, or enjoyment of the premises herein conveyed,
38nor shall the grantee or any person claiming under or through him
39or her, establish or permit any practice or practices of
40discrimination or segregation with reference to the selection,
P99   1location, number, use, or occupancy of tenants, lessees, subtenants,
2sublessees, or vendees in the premises herein conveyed. The
3foregoing covenants shall run with the land.”

4(2) Notwithstanding paragraph (1), with respect to familial
5status, paragraph (1) shall not be construed to apply to housing for
6older persons, as defined in Section 12955.9 of the Government
7Code. With respect to familial status, nothing in paragraph (1)
8shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
9and 799.5 of the Civil Code, relating to housing for senior citizens.
10 Subdivision (d) of Section 51, Section 4760, and Section 6714 of
11the Civil Code, and subdivisions (n), (o), and (p) of Section 12955
12of the Government Code shall apply to paragraph (1).

13(b) (1) In leases the following language shall appear--“The
14lessee herein covenants by and for himself or herself, his or her
15heirs, executors, administrators, and assigns, and all persons
16claiming under or through him or her, and this lease is made and
17accepted upon and subject to the following conditions:

18That there shall be no discrimination against or segregation of
19any person or group of persons, on account of any basis listed in
20subdivision (a) or (d) of Section 12955 of the Government Code,
21as those bases are defined in Sections 12926, 12926.1, subdivision
22(m) and paragraph (1) of subdivision (p) of Section 12955, and
23Section 12955.2 of the Government Code, in the leasing,
24subleasing, transferring, use, occupancy, tenure, or enjoyment of
25the premises herein leased nor shall the lessee himself or herself,
26or any person claiming under or through him or her, establish or
27permit any such practice or practices of discrimination or
28segregation with reference to the selection, location, number, use,
29or occupancy, of tenants, lessees, sublessees, subtenants, or vendees
30in the premises herein leased.”

31(2) Notwithstanding paragraph (1), with respect to familial
32status, paragraph (1) shall not be construed to apply to housing for
33older persons, as defined in Section 12955.9 of the Government
34Code. With respect to familial status, nothing in paragraph (1)
35shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
36and 799.5 of the Civil Code, relating to housing for senior citizens.
37Subdivision (d) of Section 51, Section 4760, and Section 6714 of
38the Civil Code, and subdivisions (n), (o), and (p) of Section 12955
39of the Government Code shall apply to paragraph (1).

P100  1(c) In contracts entered into by the agency relating to the sale,
2transfer, or leasing of land or any interest therein acquired by the
3agency within any survey area or redevelopment project the
4foregoing provisions in substantially the forms set forth shall be
5included and the contracts shall further provide that the foregoing
6provisions shall be binding upon and shall obligate the contracting
7party or parties and any subcontracting party or parties, or other
8transferees under the instrument.

9

begin deleteSEC. 40.end delete
10begin insertSEC. 41.end insert  

Section 35811 of the Health and Safety Code, as
11amended by Section 72 of Chapter 181 of the Statutes of 2012, is
12amended to read:

13

35811.  

(a) No financial institution shall discriminate in the
14availability of, or in the provision of, financial assistance for the
15purpose of purchasing, constructing, rehabilitating, improving, or
16refinancing housing accommodations due, in whole or in part, to
17the consideration of any basis listed in subdivision (a) or (d) of
18Section 12955 of the Government Code, as those bases are defined
19in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
20subdivision (p) of Section 12955, and Section 12955.2 of the
21Government Code.

22(b) Notwithstanding subdivision (a), with respect to familial
23status, subdivision (a) shall not be construed to apply to housing
24for older persons, as defined in Section 12955.9 of the Government
25Code. With respect to familial status, nothing in subdivision (a)
26shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
27and 799.5 of the Civil Code, relating to housing for senior citizens.
28Subdivision (d) of Section 51, Section 4760, and Section 6714 of
29the Civil Code, and subdivisions (n), (o), and (p) of Section 12955
30of the Government Code shall apply to subdivision (a).

31

begin deleteSEC. 41.end delete
32begin insertSEC. 42.end insert  

Section 37630 of the Health and Safety Code, as
33amended by Section 73 of Chapter 181 of the Statutes of 2012, is
34amended to read:

35

37630.  

(a) The local agency shall require that any property
36that is rehabilitated with financing obtained under this part shall
37be open, upon sale or rental of any portion thereof, to all regardless
38of any basis listed in subdivision (a) or (d) of Section 12955 of the
39Government Code, as those bases are defined in Sections 12926,
4012926.1, subdivision (m) and paragraph (1) of subdivision (p) of
P101  1Section 12955, and Section 12955.2 of the Government Code. The
2local agency shall also require that contractors and subcontractors
3engaged in historical rehabilitation financed under this part provide
4equal opportunity for employment, without discrimination as to
5any basis listed in subdivision (a) of Section 12940 of the
6Government Code, as those bases are defined in Sections 12926
7and 12926.1 of the Government Code, and except as otherwise
8 provided in Section 12940 of the Government Code. All contracts
9and subcontracts for historical rehabilitation financed under this
10part shall be let without discrimination as to any basis listed in
11subdivision (a) of Section 12940 of the Government Code, as those
12bases are defined in Sections 12926 and 12926.1 of the
13Government Code, and except as otherwise provided in Section
1412940 of the Government Code.

15(b) Notwithstanding subdivision (a), with respect to familial
16status, subdivision (a) shall not be construed to apply to housing
17for older persons, as defined in Section 12955.9 of the Government
18Code. With respect to familial status, nothing in subdivision (a)
19shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
20and 799.5 of the Civil Code, relating to housing for senior citizens.
21Subdivision (d) of Section 51, Section 4760, and Section 6714 of
22the Civil Code, and subdivisions (n), (o), and (p) of Section 12955
23of the Government Code shall apply to subdivision (a).

24

begin deleteSEC. 42.end delete
25begin insertSEC. 43.end insert  

Section 50955 of the Health and Safety Code, as
26amended by Section 75 of Chapter 181 of the Statutes of 2012, is
27amended to read:

28

50955.  

(a) The agency and every housing sponsor shall require
29that occupancy of housing developments assisted under this part
30shall be open to all regardless of any basis listed in subdivision (a)
31or (d) of Section 12955 of the Government Code, as those bases
32are defined in Sections 12926, 12926.1, subdivision (m) and
33paragraph (1) of subdivision (p) of Section 12955, and Section
3412955.2 of the Government Code, that contractors and
35subcontractors engaged in the construction of housing
36developments shall provide an equal opportunity for employment,
37without discrimination as to any basis listed in subdivision (a) of
38Section 12940 of the Government Code, as those bases are defined
39in Sections 12926 and 12926.1 of the Government Code, and
40except as otherwise provided in Section 12940 of the Government
P102  1Code, and that contractors and subcontractors shall submit and
2receive approval of an affirmative action program prior to the
3commencement of construction or rehabilitation. Affirmative action
4requirements respecting apprenticeship shall be consistent with
5Chapter 4 (commencing with Section 3070) of Division 3 of the
6Labor Code.

7All contracts for the management, construction, or rehabilitation
8of housing developments, and contracts let by housing sponsors,
9contractors, and subcontractors in the performance of management,
10construction, or rehabilitation, shall be let without discrimination
11as to any basis listed in subdivision (a) of Section 12940 of the
12Government Code, as those bases are defined in Sections 12926
13and 12926.1 of the Government Code, except as otherwise provided
14in Section 12940 of the Government Code, and pursuant to an
15affirmative action program, which shall be at not less than the
16Federal Housing Administration affirmative action standards unless
17the board makes a specific finding that the particular requirement
18would be unworkable. The agency shall periodically review
19implementation of affirmative action programs required by this
20section.

21It shall be the policy of the agency and housing sponsors to
22encourage participation with respect to all projects by minority
23developers, builders, and entrepreneurs in all levels of construction,
24planning, financing, and management of housing developments.
25In areas of minority concentration the agency shall require
26significant participation of minorities in the sponsorship,
27construction, planning, financing, and management of housing
28developments. The agency shall (1) require that, to the greatest
29 extent feasible, opportunities for training and employment arising
30in connection with the planning, construction, rehabilitation, and
31operation of housing developments financed pursuant to this part
32be given to persons of low income residing in the area of that
33housing, and (2) determine and implement means to secure the
34participation of small businesses in the performance of contracts
35for work on housing developments and to develop the capabilities
36of these small businesses to more efficiently and competently
37participate in the economic mainstream. In order to achieve this
38participation by small businesses, the agency may, among other
39things, waive retention requirements otherwise imposed on
40contractors or subcontractors by regulation of the agency and may
P103  1authorize or make advance payments for work to be performed.
2The agency shall develop relevant selection criteria for the
3participation of small businesses to ensure that, to the greatest
4extent feasible, the participants possess the necessary nonfinancial
5capabilities. The agency may, with respect to these small
6businesses, waive bond requirements otherwise imposed upon
7contractors or subcontractors by regulation of the agency, but the
8agency shall in that case substantially reduce the risk through (1)
9a pooled-risk bonding program, (2) a bond program in cooperation
10with other federal or state agencies, or (3) development of a
11self-insured bonding program with adequate reserves.

12The agency shall adopt rules and regulations to implement this
13section.

14Prior to commitment of a mortgage loan, the agency shall require
15each housing sponsor, except with respect to mutual self-help
16housing, to submit an affirmative marketing program that meets
17standards set forth in regulations of the agency. The agency shall
18require each housing sponsor to conduct the affirmative marketing
19program so approved. Additionally, the agency shall supplement
20the efforts of individual housing sponsors by conducting affirmative
21marketing programs with respect to housing at the state level.

22(b) Notwithstanding subdivision (a), with respect to familial
23status, subdivision (a) shall not be construed to apply to housing
24for older persons, as defined in Section 12955.9 of the Government
25Code. With respect to familial status, nothing in subdivision (a)
26shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
27and 799.5 of the Civil Code, relating to housing for senior citizens.
28Subdivision (d) of Section 51, Section 4760, and Section 6714 of
29the Civil Code, and subdivisions (n), (o), and (p) of Section 12955
30of the Government Code shall apply to subdivision (a).

31

begin deleteSEC. 43.end delete
32begin insertSEC. 44.end insert  

Section 51602 of the Health and Safety Code, as
33amended by Section 76 of Chapter 181 of the Statutes of 2012, is
34amended to read:

35

51602.  

(a) The agency shall require that occupancy of housing
36for which a loan is insured pursuant to this part shall be open to
37all regardless of any basis listed in subdivision (a) or (d) of Section
3812955 of the Government Code, as those bases are defined in
39Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
40subdivision (p) of Section 12955, and Section 12955.2 of the
P104  1Government Code, and that contractors and subcontractors engaged
2in the construction or rehabilitation of housing funded by a loan
3insured pursuant to this part shall provide an equal opportunity for
4employment without discrimination as to any basis listed in
5subdivision (a) of Section 12940 of the Government Code, as those
6bases are defined in Sections 12926 and 12926.1 of the
7Government Code, and except as otherwise provided in Section
812940 of the Government Code.

9(b) Notwithstanding subdivision (a), with respect to familial
10status, subdivision (a) shall not be construed to apply to housing
11for older persons, as defined in Section 12955.9 of the Government
12Code. With respect to familial status, nothing in subdivision (a)
13shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
14and 799.5 of the Civil Code, relating to housing for senior citizens.
15Subdivision (d) of Section 51, Section 4760, and Section 6714 of
16the Civil Code, and subdivisions (n), (o), and (p) of Section 12955
17of the Government Code shall apply to subdivision (a).

18(c) A qualified developer shall certify compliance with this
19section and Section 50955 according to requirements specified by
20the pertinent criteria of the agency.

21

begin deleteSEC. 44.end delete
22begin insertSEC. 45.end insert  

Section 116048 of the Health and Safety Code, as
23amended by Section 77 of Chapter 181 of the Statutes of 2012, is
24amended to read:

25

116048.  

(a)  On or after January 1, 1987, for public swimming
26pools in any common interest development, as defined in Section
274100 or 6534 of the Civil Code, that consists of fewer than 25
28separate interests, as defined in Section 4185 or 6564 of the Civil
29Code, the person operating each pool open for use shall be required
30to keep a record of the information required by subdivision (a) of
31Section 65523 of Title 22 of the California Administrative Code,
32except that the information shall be recorded at least two times per
33week and at intervals no greater than four days apart.

34(b)  On or after January 1, 1987, any rule or regulation of the
35department that is in conflict with subdivision (a) is invalid.

36

begin deleteSEC. 45.end delete
37begin insertSEC. 46.end insert  

Section 790.031 of the Insurance Code, as amended
38by Section 78 of Chapter 181 of the Statutes of 2012, is amended
39to read:

P105  1

790.031.  

The requirements of subdivision (b) of Section
2790.034, and Sections 2071.1 and 10082.3 shall apply only to
3policies of residential property insurance as defined in Section
410087, policies and endorsements containing those coverages
5prescribed in Chapter 8.5 (commencing with Section 10081) of
6Part 1 of Division 2, policies issued by the California Earthquake
7Authority pursuant to Chapter 8.6 (commencing with Section
810089.5) of Part 1 of Division 2, policies and endorsements that
9insure against property damage and are issued to common interest
10developments or to associations managing common interest
11developments, as those terms are defined in Sections 4080 and
124100 or Sections 6528 and 6534 of the Civil Code, and to policies
13issued pursuant to Section 120 that insure against property damage
14to residential units or contents thereof owned by one or more
15persons located in this state.

16

begin deleteSEC. 46.end delete
17begin insertSEC. 47.end insert  

Section 2188.6 of the Revenue and Taxation Code,
18as amended by Section 79 of Chapter 181 of the Statutes of 2012,
19is amended to read:

20

2188.6.  

(a) Unless a request for exemption has been recorded
21pursuant to subdivision (d), prior to the creation of a condominium
22as defined in Section 783 of the Civil Code, the county assessor
23may separately assess each individual unit which is shown on the
24condominium plan of a proposed condominium project when all
25of the following documents have been recorded as required by
26law:

27(1) A subdivision final map or parcel map, as described in
28Sections 66434 and 66445, respectively, of the Government Code.

29(2) A condominium plan, as defined in Section 4120 or 6540
30of the Civil Code.

31(3) A declaration, as definedbegin insert inend insert Section 4135 or 6546 of the
32Civil Code.

33(b) The tax due on each individual unit shall constitute a lien
34solely on that unit.

35(c) The lien created pursuant to this section shall be a lien on
36an undivided interest in a portion of real property coupled with a
37separate interest in space called a unit as described in Section 4125
38or 6542 of the Civil Code.

39(d) The record owner of the real property may record with the
40condominium plan a request that the real property be exempt from
P106  1separate assessment pursuant to this section. If a request for
2exemption is recorded, separate assessment of a condominium unit
3shall be made only in accordance with Section 2188.3.

4(e) This section shall become operative on January 1, 1990, and
5shall apply to condominium projects for which a condominium
6plan is recorded after that date.

7

begin deleteSEC. 47.end delete
8begin insertSEC. 48.end insert  

Section 21107.7 of the Vehicle Code, as amended by
9Section 80 of Chapter 181 of the Statutes of 2012, is amended to
10read:

11

21107.7.  

(a) Any city or county may, by ordinance or
12resolution, find and declare that there are privately owned and
13maintained roads as described in the ordinance or resolution within
14the city or county that are not generally held open for use of the
15public for purposes of vehicular travel but, by reason of their
16proximity to or connection with highways, the interests of any
17residents residing along the roads and the motoring public will
18best be served by application of the provisions of this code to those
19roads. No ordinance or resolution shall be enacted unless there is
20first filed with the city or county a petition requesting it by a
21majority of the owners of any privately owned and maintained
22road, or by at least a majority of the board of directors of a common
23interest development, as defined by Section 4100 or 6534 of the
24Civil Code, that is responsible for maintaining the road, and without
25a public hearing thereon and 10 days’ prior written notice to all
26owners of the road or all of the owners in the development. Upon
27enactment of the ordinance or resolution, the provisions of this
28code shall apply to the privately owned and maintained road if
29appropriate signs are erected at the entrance to the road of the size,
30shape, and color as to be readily legible during daylight hours from
31a distance of 100 feet, to the effect that the road is subject to the
32provisions of this code. The city or county may impose reasonable
33conditions and may authorize the owners, or board of directors of
34the common interest development, to erect traffic signs, signals,
35markings, and devices which conform to the uniform standards
36and specifications adopted by the Department of Transportation.

37(b) The department shall not be required to provide patrol or
38enforce any provisions of this code on any privately owned and
39maintained road subjected to the provisions of this code under this
P107  1section, except those provisions applicable to private property
2other than by action under this section.

3(c) As used in this section, “privately owned and maintained
4roads” includes roads owned and maintained by a city, county, or
5district that are not dedicated to use by the public or are not
6generally held open for use of the public for purposes of vehicular
7travel.

8

begin deleteSEC. 48.end delete
9begin insertSEC. 49.end insert  

Section 22651 of the Vehicle Code is amended to
10read:

11

22651.  

A peace officer, as defined in Chapter 4.5 (commencing
12with Section 830) of Title 3 of Part 2 of the Penal Code, or a
13regularly employed and salaried employee, who is engaged in
14directing traffic or enforcing parking laws and regulations, of a
15city, county, or jurisdiction of a state agency in which a vehicle is
16located, may remove a vehicle located within the territorial limits
17in which the officer or employee may act, under the following
18circumstances:

19(a) When a vehicle is left unattended upon a bridge, viaduct, or
20causeway or in a tube or tunnel where the vehicle constitutes an
21obstruction to traffic.

22(b) When a vehicle is parked or left standing upon a highway
23in a position so as to obstruct the normal movement of traffic or
24in a condition so as to create a hazard to other traffic upon the
25highway.

26(c) When a vehicle is found upon a highway or public land and
27a report has previously been made that the vehicle is stolen or a
28complaint has been filed and a warrant thereon is issued charging
29that the vehicle was embezzled.

30(d) When a vehicle is illegally parked so as to block the entrance
31to a private driveway and it is impractical to move the vehicle from
32in front of the driveway to another point on the highway.

33(e) When a vehicle is illegally parked so as to prevent access
34by firefighting equipment to a fire hydrant and it is impracticable
35to move the vehicle from in front of the fire hydrant to another
36point on the highway.

37(f) When a vehicle, except highway maintenance or construction
38equipment, is stopped, parked, or left standing for more than four
39hours upon the right-of-way of a freeway that has full control of
P108  1access and no crossings at grade and the driver, if present, cannot
2move the vehicle under its own power.

3(g) When the person in charge of a vehicle upon a highway or
4public land is, by reason of physical injuries or illness,
5incapacitated to an extent so as to be unable to provide for its
6custody or removal.

7(h) (1) When an officer arrests a person driving or in control
8of a vehicle for an alleged offense and the officer is, by this code
9or other law, required or permitted to take, and does take, the
10person into custody.

11(2) When an officer serves a notice of an order of suspension
12or revocation pursuant to Section 13388 or 13389.

13(i) (1) When a vehicle, other than a rented vehicle, is found
14upon a highway or public land, or is removed pursuant to this code,
15and it is known that the vehicle has been issued five or more notices
16of parking violations to which the owner or person in control of
17the vehicle has not responded within 21 calendar days of notice
18of citation issuance or citation issuance or 14 calendar days of the
19mailing of a notice of delinquent parking violation to the agency
20responsible for processing notices of parking violations, or the
21registered owner of the vehicle is known to have been issued five
22or more notices for failure to pay or failure to appear in court for
23traffic violations for which a certificate has not been issued by the
24magistrate or clerk of the court hearing the case showing that the
25case has been adjudicated or concerning which the registered
26owner’s record has not been cleared pursuant to Chapter 6
27(commencing with Section 41500) of Division 17, the vehicle may
28be impounded until that person furnishes to the impounding law
29enforcement agency all of the following:

30(A) Evidence of his or her identity.

31(B) An address within this state at which he or she can be
32located.

33(C) Satisfactory evidence that all parking penalties due for the
34vehicle and all other vehicles registered to the registered owner of
35the impounded vehicle, and all traffic violations of the registered
36owner, have been cleared.

37(2) The requirements in subparagraph (C) of paragraph (1) shall
38be fully enforced by the impounding law enforcement agency on
39and after the time that the Department of Motor Vehicles is able
40to provide access to the necessary records.

P109  1(3) A notice of parking violation issued for an unlawfully parked
2vehicle shall be accompanied by a warning that repeated violations
3may result in the impounding of the vehicle. In lieu of furnishing
4satisfactory evidence that the full amount of parking penalties or
5bail has been deposited, that person may demand to be taken
6without unnecessary delay before a magistrate, for traffic offenses,
7or a hearing examiner, for parking offenses, within the county in
8which the offenses charged are alleged to have been committed
9and who has jurisdiction of the offenses and is nearest or most
10accessible with reference to the place where the vehicle is
11impounded. Evidence of current registration shall be produced
12after a vehicle has been impounded, or, at the discretion of the
13impounding law enforcement agency, a notice to appear for
14violation of subdivision (a) of Section 4000 shall be issued to that
15person.

16(4) A vehicle shall be released to the legal owner, as defined in
17Section 370, if the legal owner does all of the following:

18(A) Pays the cost of towing and storing the vehicle.

19(B) Submits evidence of payment of fees as provided in Section
209561.

21(C) Completes an affidavit in a form acceptable to the
22impounding law enforcement agency stating that the vehicle was
23not in possession of the legal owner at the time of occurrence of
24the offenses relating to standing or parking. A vehicle released to
25a legal owner under this subdivision is a repossessed vehicle for
26purposes of disposition or sale. The impounding agency shall have
27a lien on any surplus that remains upon sale of the vehicle to which
28the registered owner is or may be entitled, as security for the full
29amount of the parking penalties for all notices of parking violations
30issued for the vehicle and for all local administrative charges
31imposed pursuant to Section 22850.5. The legal owner shall
32promptly remit to, and deposit with, the agency responsible for
33processing notices of parking violations from that surplus, on
34receipt of that surplus, the full amount of the parking penalties for
35all notices of parking violations issued for the vehicle and for all
36local administrative charges imposed pursuant to Section 22850.5.

37(5) The impounding agency that has a lien on the surplus that
38remains upon the sale of a vehicle to which a registered owner is
39entitled pursuant to paragraph (4) has a deficiency claim against
40the registered owner for the full amount of the parking penalties
P110  1for all notices of parking violations issued for the vehicle and for
2all local administrative charges imposed pursuant to Section
322850.5, less the amount received from the sale of the vehicle.

4(j) When a vehicle is found illegally parked and there are no
5license plates or other evidence of registration displayed, the
6vehicle may be impounded until the owner or person in control of
7the vehicle furnishes the impounding law enforcement agency
8evidence of his or her identity and an address within this state at
9which he or she can be located.

10(k) When a vehicle is parked or left standing upon a highway
11for 72 or more consecutive hours in violation of a local ordinance
12authorizing removal.

13(l) When a vehicle is illegally parked on a highway in violation
14of a local ordinance forbidding standing or parking and the use of
15a highway, or a portion thereof, is necessary for the cleaning,
16repair, or construction of the highway, or for the installation of
17underground utilities, and signs giving notice that the vehicle may
18 be removed are erected or placed at least 24 hours prior to the
19removal by a local authority pursuant to the ordinance.

20(m) When the use of the highway, or a portion of the highway,
21is authorized by a local authority for a purpose other than the
22normal flow of traffic or for the movement of equipment, articles,
23or structures of unusual size, and the parking of a vehicle would
24prohibit or interfere with that use or movement, and signs giving
25notice that the vehicle may be removed are erected or placed at
26least 24 hours prior to the removal by a local authority pursuant
27to the ordinance.

28(n) Whenever a vehicle is parked or left standing where local
29authorities, by resolution or ordinance, have prohibited parking
30and have authorized the removal of vehicles. Except as provided
31in subdivisions (v) and (w), a vehicle shall not be removed unless
32signs are posted giving notice of the removal.

33(o) (1) When a vehicle is found or operated upon a highway,
34public land, or an offstreet parking facility under the following
35circumstances:

36(A) With a registration expiration date in excess of six months
37before the date it is found or operated on the highway, public lands,
38or the offstreet parking facility.

39(B) Displaying in, or upon, the vehicle, a registration card,
40identification card, temporary receipt, license plate, special plate,
P111  1registration sticker, device issued pursuant to Section 4853, or
2permit that was not issued for that vehicle, or is not otherwise
3lawfully used on that vehicle under this code.

4(C) Displaying in, or upon, the vehicle, an altered, forged,
5counterfeit, or falsified registration card, identification card,
6temporary receipt, license plate, special plate, registration sticker,
7device issued pursuant to Section 4853, or permit.

8(2) When a vehicle described in paragraph (1) is occupied, only
9a peace officer, as defined in Chapter 4.5 (commencing with
10Section 830) of Title 3 of Part 2 of the Penal Code, may remove
11the vehicle.

12(3) For the purposes of this subdivision, the vehicle shall be
13released under either of the following circumstances:

14(A) To the registered owner or person in control of the vehicle
15only after the owner or person furnishes the storing law
16enforcement agency with proof of current registration and a
17currently valid driver’s license to operate the vehicle.

18(B) To the legal owner or the legal owner’s agency, without
19 payment of any fees, fines, or penalties for parking tickets or
20registration and without proof of current registration, if the vehicle
21will only be transported pursuant to the exemption specified in
22Section 4022 and if the legal owner does all of the following:

23(i) Pays the cost of towing and storing the vehicle.

24(ii) Completes an affidavit in a form acceptable to the
25impounding law enforcement agency stating that the vehicle was
26not in possession of the legal owner at the time of occurrence of
27an offense relating to standing or parking. A vehicle released to a
28legal owner under this subdivision is a repossessed vehicle for
29purposes of disposition or sale. The impounding agency has a lien
30on any surplus that remains upon sale of the vehicle to which the
31registered owner is or may be entitled, as security for the full
32amount of parking penalties for any notices of parking violations
33issued for the vehicle and for all local administrative charges
34imposed pursuant to Section 22850.5. Upon receipt of any surplus,
35the legal owner shall promptly remit to, and deposit with, the
36agency responsible for processing notices of parking violations
37from that surplus, the full amount of the parking penalties for all
38notices of parking violations issued for the vehicle and for all local
39administrative charges imposed pursuant to Section 22850.5.

P112  1(4) The impounding agency that has a lien on the surplus that
2remains upon the sale of a vehicle to which a registered owner is
3entitled has a deficiency claim against the registered owner for the
4full amount of parking penalties for any notices of parking
5violations issued for the vehicle and for all local administrative
6charges imposed pursuant to Section 22850.5, less the amount
7received from the sale of the vehicle.

8(5) As used in this subdivision, “offstreet parking facility” means
9an offstreet facility held open for use by the public for parking
10vehicles and includes a publicly owned facility for offstreet
11parking, and a privately owned facility for offstreet parking if a
12fee is not charged for the privilege to park and it is held open for
13the common public use of retail customers.

14(p) When the peace officer issues the driver of a vehicle a notice
15to appear for a violation of Section 12500, 14601, 14601.1,
1614601.2, 14601.3, 14601.4, 14601.5, or 14604 and the vehicle is
17not impounded pursuant to Section 22655.5. A vehicle so removed
18from the highway or public land, or from private property after
19having been on a highway or public land, shall not be released to
20the registered owner or his or her agent, except upon presentation
21of the registered owner’s or his or her agent’s currently valid
22driver’s license to operate the vehicle and proof of current vehicle
23registration, to the impounding law enforcement agency, or upon
24order of a court.

25(q) When a vehicle is parked for more than 24 hours on a portion
26of highway that is located within the boundaries of a common
27interest development, as defined in Section 4100 or 6534 of the
28Civil Code, and signs, as required by paragraph (1) of subdivision
29(a) of Section 22658 of this code, have been posted on that portion
30of highway providing notice to drivers that vehicles parked thereon
31for more than 24 hours will be removed at the owner’s expense,
32pursuant to a resolution or ordinance adopted by the local authority.

33(r) When a vehicle is illegally parked and blocks the movement
34of a legally parked vehicle.

35(s) (1) When a vehicle, except highway maintenance or
36construction equipment, an authorized emergency vehicle, or a
37vehicle that is properly permitted or otherwise authorized by the
38Department of Transportation, is stopped, parked, or left standing
39for more than eight hours within a roadside rest area or viewpoint.

P113  1(2) Notwithstanding paragraph (1), when a commercial motor
2vehicle, as defined in paragraph (1) of subdivision (b) of Section
315210, is stopped, parked, or left standing for more than 10 hours
4within a roadside rest area or viewpoint.

5(3) For purposes of this subdivision, a roadside rest area or
6viewpoint is a publicly maintained vehicle parking area, adjacent
7to a highway, utilized for the convenient, safe stopping of a vehicle
8to enable motorists to rest or to view the scenery. If two or more
9roadside rest areas are located on opposite sides of the highway,
10or upon the center divider, within seven miles of each other, then
11that combination of rest areas is considered to be the same rest
12area.

13(t) When a peace officer issues a notice to appear for a violation
14of Section 25279.

15(u) When a peace officer issues a citation for a violation of
16Section 11700 and the vehicle is being offered for sale.

17(v) (1) When a vehicle is a mobile billboard advertising display,
18as defined in Section 395.5, and is parked or left standing in
19violation of a local resolution or ordinance adopted pursuant to
20 subdivision (m) of Section 21100, if the registered owner of the
21vehicle was previously issued a warning citation for the same
22offense, pursuant to paragraph (2).

23(2) Notwithstanding subdivision (a) of Section 22507, a city or
24county, in lieu of posting signs noticing a local ordinance
25 prohibiting mobile billboard advertising displays adopted pursuant
26to subdivision (m) of Section 21100, may provide notice by issuing
27a warning citation advising the registered owner of the vehicle that
28he or she may be subject to penalties upon a subsequent violation
29of the ordinance, that may include the removal of the vehicle as
30provided in paragraph (1). A city or county is not required to
31provide further notice for a subsequent violation prior to the
32enforcement of penalties for a violation of the ordinance.

33(w) (1) When a vehicle is parked or left standing in violation
34of a local ordinance or resolution adopted pursuant to subdivision
35(p) of Section 21100, if the registered owner of the vehicle was
36previously issued a warning citation for the same offense, pursuant
37to paragraph (2).

38(2) Notwithstanding subdivision (a) of Section 22507, a city or
39county, in lieu of posting signs noticing a local ordinance regulating
40advertising signs adopted pursuant to subdivision (p) of Section
P114  121100, may provide notice by issuing a warning citation advising
2the registered owner of the vehicle that he or she may be subject
3to penalties upon a subsequent violation of the ordinance that may
4include the removal of the vehicle as provided in paragraph (1).
5A city or county is not required to provide further notice for a
6subsequent violation prior to the enforcement of penalties for a
7violation of the ordinance.

8

begin deleteSEC. 49.end delete
9begin insertSEC. 50.end insert  

Section 22651.05 of the Vehicle Code, as amended
10by Section 82 of Chapter 181 of the Statutes of 2012, is amended
11to read:

12

22651.05.  

(a) A trained volunteer of a state or local law
13enforcement agency, who is engaged in directing traffic or
14enforcing parking laws and regulations, of a city, county, or
15jurisdiction of a state agency in which a vehicle is located, may
16remove or authorize the removal of a vehicle located within the
17territorial limits in which an officer or employee of that agency
18may act, under any of the following circumstances:

19(1) When a vehicle is parked or left standing upon a highway
20for 72 or more consecutive hours in violation of a local ordinance
21authorizing the removal.

22(2) When a vehicle is illegally parked or left standing on a
23highway in violation of a local ordinance forbidding standing or
24parking and the use of a highway, or a portion thereof, is necessary
25for the cleaning, repair, or construction of the highway, or for the
26installation of underground utilities, and signs giving notice that
27the vehicle may be removed are erected or placed at least 24 hours
28prior to the removal by local authorities pursuant to the ordinance.

29(3) Wherever the use of the highway, or a portion thereof, is
30authorized by local authorities for a purpose other than the normal
31flow of traffic or for the movement of equipment, articles, or
32structures of unusual size, and the parking of a vehicle would
33prohibit or interfere with that use or movement, and signs giving
34notice that the vehicle may be removed are erected or placed at
35least 24 hours prior to the removal by local authorities pursuant
36to the ordinance.

37(4) Whenever a vehicle is parked or left standing where local
38authorities, by resolution or ordinance, have prohibited parking
39and have authorized the removal of vehicles. A vehicle may not
40be removed unless signs are posted giving notice of the removal.

P115  1(5) Whenever a vehicle is parked for more than 24 hours on a
2portion of highway that is located within the boundaries of a
3common interest development, as defined in Section 4100 or 6534
4of the Civil Code, and signs, as required by Section 22658.2, have
5been posted on that portion of highway providing notice to drivers
6that vehicles parked thereon for more than 24 hours will be
7removed at the owner’s expense, pursuant to a resolution or
8ordinance adopted by the local authority.

9(b) The provisions of this chapter that apply to a vehicle
10removed pursuant to Section 22651 apply to a vehicle removed
11pursuant to subdivision (a).

12(c) For purposes of subdivision (a), a “trained volunteer” is a
13person who, of his or her own free will, provides services, without
14any financial gain, to a local or state law enforcement agency, and
15who is duly trained and certified to remove a vehicle by a local or
16state law enforcement agency.

17

begin deleteSEC. 50.end delete
18begin insertSEC. 51.end insert  

Section 22658 of the Vehicle Code, as amended by
19Section 83 of Chapter 181 of the Statutes of 2012, is amended to
20read:

21

22658.  

(a) The owner or person in lawful possession of private
22property, including an association of a common interest
23development as defined in Sections 4080 and 4100 or Sections
246528 and 6534 of the Civil Code, may cause the removal of a
25vehicle parked on the property to a storage facility that meets the
26requirements of subdivision (n) under any of the following
27circumstances:

28(1) There is displayed, in plain view at all entrances to the
29property, a sign not less than 17 inches by 22 inches in size, with
30lettering not less than one inch in height, prohibiting public parking
31and indicating that vehicles will be removed at the owner’s
32expense, and containing the telephone number of the local traffic
33law enforcement agency and the name and telephone number of
34each towing company that is a party to a written general towing
35authorization agreement with the owner or person in lawful
36possession of the property. The sign may also indicate that a
37citation may also be issued for the violation.

38(2) The vehicle has been issued a notice of parking violation,
39and 96 hours have elapsed since the issuance of that notice.

P116  1(3) The vehicle is on private property and lacks an engine,
2transmission, wheels, tires, doors, windshield, or any other major
3part or equipment necessary to operate safely on the highways,
4the owner or person in lawful possession of the private property
5has notified the local traffic law enforcement agency, and 24 hours
6have elapsed since that notification.

7(4) The lot or parcel upon which the vehicle is parked is
8improved with a single-family dwelling.

9(b) The tow truck operator removing the vehicle, if the operator
10knows or is able to ascertain from the property owner, person in
11lawful possession of the property, or the registration records of
12the Department of Motor Vehicles the name and address of the
13registered and legal owner of the vehicle, shall immediately give,
14or cause to be given, notice in writing to the registered and legal
15owner of the fact of the removal, the grounds for the removal, and
16indicate the place to which the vehicle has been removed. If the
17vehicle is stored in a storage facility, a copy of the notice shall be
18given to the proprietor of the storage facility. The notice provided
19for in this section shall include the amount of mileage on the
20vehicle at the time of removal and the time of the removal from
21the property. If the tow truck operator does not know and is not
22able to ascertain the name of the owner or for any other reason is
23unable to give the notice to the owner as provided in this section,
24the tow truck operator shall comply with the requirements of
25subdivision (c) of Section 22853 relating to notice in the same
26manner as applicable to an officer removing a vehicle from private
27property.

28(c) This section does not limit or affect any right or remedy that
29the owner or person in lawful possession of private property may
30have by virtue of other provisions of law authorizing the removal
31of a vehicle parked upon private property.

32(d) The owner of a vehicle removed from private property
33pursuant to subdivision (a) may recover for any damage to the
34vehicle resulting from any intentional or negligent act of a person
35causing the removal of, or removing, the vehicle.

36(e) (1) An owner or person in lawful possession of private
37property, or an association of a common interest development,
38causing the removal of a vehicle parked on that property is liable
39for double the storage or towing charges whenever there has been
40a failure to comply with paragraph (1), (2), or (3) of subdivision
P117  1(a) or to state the grounds for the removal of the vehicle if requested
2by the legal or registered owner of the vehicle as required by
3subdivision (f).

4(2) A property owner or owner’s agent or lessee who causes the
5removal of a vehicle parked on that property pursuant to the
6exemption set forth in subparagraph (A) of paragraph (1) of
7subdivision (l) and fails to comply with that subdivision is guilty
8of an infraction, punishable by a fine of one thousand dollars
9($1,000).

10(f) An owner or person in lawful possession of private property,
11or an association of a common interest development, causing the
12removal of a vehicle parked on that property shall notify by
13telephone or, if impractical, by the most expeditious means
14available, the local traffic law enforcement agency within one hour
15after authorizing the tow. An owner or person in lawful possession
16of private property, an association of a common interest
17development, causing the removal of a vehicle parked on that
18property, or the tow truck operator who removes the vehicle, shall
19state the grounds for the removal of the vehicle if requested by the
20legal or registered owner of that vehicle. A towing company that
21removes a vehicle from private property in compliance with
22subdivision (l) is not responsible in a situation relating to the
23validity of the removal. A towing company that removes the
24vehicle under this section shall be responsible for the following:

25(1) Damage to the vehicle in the transit and subsequent storage
26of the vehicle.

27(2) The removal of a vehicle other than the vehicle specified by
28the owner or other person in lawful possession of the private
29property.

30(g) (1) (A) Possession of a vehicle under this section shall be
31deemed to arise when a vehicle is removed from private property
32and is in transit.

33(B) Upon the request of the owner of the vehicle or that owner’s
34agent, the towing company or its driver shall immediately and
35unconditionally release a vehicle that is not yet removed from the
36private property and in transit.

37(C) A person failing to comply with subparagraph (B) is guilty
38of a misdemeanor.

P118  1(2) If a vehicle is released to a person in compliance with
2subparagraph (B) of paragraph (1), the vehicle owner or authorized
3agent shall immediately move that vehicle to a lawful location.

4(h) A towing company may impose a charge of not more than
5one-half of the regular towing charge for the towing of a vehicle
6at the request of the owner, the owner’s agent, or the person in
7lawful possession of the private property pursuant to this section
8if the owner of the vehicle or the vehicle owner’s agent returns to
9the vehicle after the vehicle is coupled to the tow truck by means
10of a regular hitch, coupling device, drawbar, portable dolly, or is
11lifted off the ground by means of a conventional trailer, and before
12it is removed from the private property. The regular towing charge
13may only be imposed after the vehicle has been removed from the
14property and is in transit.

15(i) (1) (A) A charge for towing or storage, or both, of a vehicle
16under this section is excessive if the charge exceeds the greater of
17the following:

18(i) That which would have been charged for that towing or
19storage, or both, made at the request of a law enforcement agency
20under an agreement between a towing company and the law
21enforcement agency that exercises primary jurisdiction in the city
22in which is located the private property from which the vehicle
23was, or was attempted to be, removed, or if the private property
24is not located within a city, then the law enforcement agency that
25exercises primary jurisdiction in the county in which the private
26property is located.

27(ii) That which would have been charged for that towing or
28storage, or both, under the rate approved for that towing operator
29by the Department of the California Highway Patrol for the
30jurisdiction in which the private property is located and from which
31the vehicle was, or was attempted to be, removed.

32(B) A towing operator shall make available for inspection and
33copying his or her rate approved by thebegin insert Department of theend insert
34 California Highway Patrol, if any, within 24 hours of a request
35without a warrant to law enforcement, the Attorney General, district
36attorney, or city attorney.

37(2) If a vehicle is released within 24 hours from the time the
38vehicle is brought into the storage facility, regardless of the
39calendar date, the storage charge shall be for only one day. Not
P119  1more than one day’s storage charge may be required for a vehicle
2released the same day that it is stored.

3(3) If a request to release a vehicle is made and the appropriate
4fees are tendered and documentation establishing that the person
5requesting release is entitled to possession of the vehicle, or is the
6owner’s insurance representative, is presented within the initial
724 hours of storage, and the storage facility fails to comply with
8the request to release the vehicle or is not open for business during
9normal business hours, then only one day’s storage charge may
10be required to be paid until after the first business day. A business
11day is any day in which the lienholder is open for business to the
12public for at least eight hours. If a request is made more than 24
13hours after the vehicle is placed in storage, charges may be imposed
14on a full calendar day basis for each day, or part thereof, that the
15vehicle is in storage.

16(j) (1) A person who charges a vehicle owner a towing, service,
17or storage charge at an excessive rate, as described in subdivision
18(h) or (i), is civilly liable to the vehicle owner for four times the
19amount charged.

20(2) A person who knowingly charges a vehicle owner a towing,
21service, or storage charge at an excessive rate, as described in
22 subdivision (h) or (i), or who fails to make available his or her rate
23as required in subparagraph (B) of paragraph (1) of subdivision
24(i), is guilty of a misdemeanor, punishable by a fine of not more
25than two thousand five hundred dollars ($2,500), or by
26imprisonment in a county jail for not more than three months, or
27by both that fine and imprisonment.

28(k) (1) A person operating or in charge of a storage facility
29where vehicles are stored pursuant to this section shall accept a
30valid bank credit card or cash for payment of towing and storage
31by a registered owner, the legal owner, or the owner’s agent
32claiming the vehicle. A credit card shall be in the name of the
33person presenting the card. “Credit card” means “credit card” as
34defined in subdivision (a) of Section 1747.02 of the Civil Code,
35except, for the purposes of this section, credit card does not include
36a credit card issued by a retail seller.

37(2) A person described in paragraph (1) shall conspicuously
38display, in that portion of the storage facility office where business
39is conducted with the public, a notice advising that all valid credit
40cards and cash are acceptable means of payment.

P120  1(3) A person operating or in charge of a storage facility who
2refuses to accept a valid credit card or who fails to post the required
3notice under paragraph (2) is guilty of a misdemeanor, punishable
4by a fine of not more than two thousand five hundred dollars
5($2,500), or by imprisonment in a county jail for not more than
6three months, or by both that fine and imprisonment.

7(4) A person described in paragraph (1) who violates paragraph
8(1) or (2) is civilly liable to the registered owner of the vehicle or
9the person who tendered the fees for four times the amount of the
10towing and storage charges.

11(5) A person operating or in charge of the storage facility shall
12have sufficient moneys on the premises of the primary storage
13facility during normal business hours to accommodate, and make
14change in, a reasonable monetary transaction.

15(6) Credit charges for towing and storage services shall comply
16with Section 1748.1 of the Civil Code. Law enforcement agencies
17may include the costs of providing for payment by credit when
18making agreements with towing companies as described in
19 subdivision (i).

20(l) (1) (A) A towing company shall not remove or commence
21the removal of a vehicle from private property without first
22obtaining the written authorization from the property owner or
23lessee, including an association of a common interest development,
24or an employee or agent thereof, who shall be present at the time
25of removal and verify the alleged violation, except that presence
26and verification is not required if the person authorizing the tow
27is the property owner, or the owner’s agent who is not a tow
28operator, of a residential rental property of 15 or fewer units that
29does not have an onsite owner, owner’s agent or employee, and
30the tenant has verified the violation, requested the tow from that
31tenant’s assigned parking space, and provided a signed request or
32electronic mail, or has called and provides a signed request or
33electronic mail within 24 hours, to the property owner or owner’s
34agent, which the owner or agent shall provide to the towing
35company within 48 hours of authorizing the tow. The signed
36request or electronic mail shall contain the name and address of
37the tenant, and the date and time the tenant requested the tow. A
38towing company shall obtain, within 48 hours of receiving the
39written authorization to tow, a copy of a tenant request required
40pursuant to this subparagraph. For the purpose of this subparagraph,
P121  1a person providing the written authorization who is required to be
2present on the private property at the time of the tow does not have
3to be physically present at the specified location of where the
4vehicle to be removed is located on the private property.

5(B) The written authorization under subparagraph (A) shall
6include all of the following:

7(i) The make, model, vehicle identification number, and license
8plate number of the removed vehicle.

9(ii) The name, signature, job title, residential or business address,
10and working telephone number of the person, described in
11subparagraph (A), authorizing the removal of the vehicle.

12(iii) The grounds for the removal of the vehicle.

13(iv) The time when the vehicle was first observed parked at the
14private property.

15(v) The time that authorization to tow the vehicle was given.

16(C) (i) When the vehicle owner or his or her agent claims the
17vehicle, the towing company prior to payment of a towing or
18storage charge shall provide a photocopy of the written
19authorization to the vehicle owner or the agent.

20(ii) If the vehicle was towed from a residential property, the
21towing company shall redact the information specified in clause
22(ii) of subparagraph (B) in the photocopy of the written
23authorization provided to the vehicle owner or the agent pursuant
24to clause (i).

25(iii) The towing company shall also provide to the vehicle owner
26or the agent a separate notice that provides the telephone number
27of the appropriate local law enforcement or prosecuting agency
28by stating “If you believe that you have been wrongfully towed,
29please contact the local law enforcement or prosecuting agency at
30[insert appropriate telephone number].” The notice shall be in
31English and in the most populous language, other than English,
32that is spoken in the jurisdiction.

33(D) A towing company shall not remove or commence the
34removal of a vehicle from private property described in subdivision
35(a) of Section 22953 unless the towing company has made a good
36faith inquiry to determine that the owner or the property owner’s
37agent complied with Section 22953.

38(E) (i) General authorization to remove or commence removal
39of a vehicle at the towing company’s discretion shall not be
40delegated to a towing company or its affiliates except in the case
P122  1of a vehicle unlawfully parked within 15 feet of a fire hydrant or
2in a fire lane, or in a manner which interferes with an entrance to,
3or exit from, the private property.

4(ii) In those cases in which general authorization is granted to
5a towing company or its affiliate to undertake the removal or
6commence the removal of a vehicle that is unlawfully parked within
715 feet of a fire hydrant or in a fire lane, or that interferes with an
8entrance to, or exit from, private property, the towing company
9and the property owner, or owner’s agent, or person in lawful
10possession of the private property shall have a written agreement
11granting that general authorization.

12(2) If a towing company removes a vehicle under a general
13authorization described in subparagraph (E) of paragraph (1) and
14that vehicle is unlawfully parked within 15 feet of a fire hydrant
15or in a fire lane, or in a manner that interferes with an entrance to,
16or exit from, the private property, the towing company shall take,
17prior to the removal of that vehicle, a photograph of the vehicle
18that clearly indicates that parking violation. Prior to accepting
19payment, the towing company shall keep one copy of the
20photograph taken pursuant to this paragraph, and shall present that
21photograph and provide, without charge, a photocopy to the owner
22or an agent of the owner, when that person claims the vehicle.

23(3) A towing company shall maintain the original written
24authorization, or the general authorization described in
25subparagraph (E) of paragraph (1) and the photograph of the
26violation, required pursuant to this section, and any written requests
27from a tenant to the property owner or owner’s agent required by
28subparagraph (A) of paragraph (1), for a period of three years and
29shall make them available for inspection and copying within 24
30hours of a request without a warrant to law enforcement, the
31Attorney General, district attorney, or city attorney.

32(4) A person who violates this subdivision is guilty of a
33misdemeanor, punishable by a fine of not more than two thousand
34five hundred dollars ($2,500), or by imprisonment in a county jail
35for not more than three months, or by both that fine and
36imprisonment.

37(5) A person who violates this subdivision is civilly liable to
38the owner of the vehicle or his or her agent for four times the
39amount of the towing and storage charges.

P123  1(m) (1) A towing company that removes a vehicle from private
2property under this section shall notify the local law enforcement
3agency of that tow after the vehicle is removed from the private
4property and is in transit.

5(2) A towing company is guilty of a misdemeanor if the towing
6company fails to provide the notification required under paragraph
7(1) within 60 minutes after the vehicle is removed from the private
8property and is in transit or 15 minutes after arriving at the storage
9facility, whichever time is less.

10(3) A towing company that does not provide the notification
11under paragraph (1) within 30 minutes after the vehicle is removed
12from the private property and is in transit is civilly liable to the
13registered owner of the vehicle, or the person who tenders the fees,
14for three times the amount of the towing and storage charges.

15(4) If notification is impracticable, the times for notification, as
16required pursuant to paragraphs (2) and (3), shall be tolled for the
17time period that notification is impracticable. This paragraph is an
18affirmative defense.

19(n) A vehicle removed from private property pursuant to this
20section shall be stored in a facility that meets all of the following
21requirements:

22(1) (A) Is located within a 10-mile radius of the property from
23where the vehicle was removed.

24(B) The 10-mile radius requirement of subparagraph (A) does
25not apply if a towing company has prior general written approval
26from the law enforcement agency that exercises primary
27jurisdiction in the city in which is located the private property from
28which the vehicle was removed, or if the private property is not
29located within a city, then the law enforcement agency that
30exercises primary jurisdiction in the county in which is located the
31private property.

32(2) (A) Remains open during normal business hours and releases
33vehicles after normal business hours.

34(B) A gate fee may be charged for releasing a vehicle after
35normal business hours, weekends, and state holidays. However,
36the maximum hourly charge for releasing a vehicle after normal
37business hours shall be one-half of the hourly tow rate charged for
38initially towing the vehicle, or less.

P124  1(C) Notwithstanding any other provision of law and for purposes
2of this paragraph, “normal business hours” are Monday to Friday,
3inclusive, from 8 a.m. to 5 p.m., inclusive, except state holidays.

4(3) Has a public pay telephone in the office area that is open
5and accessible to the public.

6(o) (1) It is the intent of the Legislature in the adoption of
7subdivision (k) to assist vehicle owners or their agents by, among
8other things, allowing payment by credit cards for towing and
9storage services, thereby expediting the recovery of towed vehicles
10and concurrently promoting the safety and welfare of the public.

11(2) It is the intent of the Legislature in the adoption of
12subdivision (l) to further the safety of the general public by
13ensuring that a private property owner or lessee has provided his
14or her authorization for the removal of a vehicle from his or her
15property, thereby promoting the safety of those persons involved
16in ordering the removal of the vehicle as well as those persons
17removing, towing, and storing the vehicle.

18(3) It is the intent of the Legislature in the adoption of
19subdivision (g) to promote the safety of the general public by
20requiring towing companies to unconditionally release a vehicle
21that is not lawfully in their possession, thereby avoiding the
22likelihood of dangerous and violent confrontation and physical
23injury to vehicle owners and towing operators, the stranding of
24vehicle owners and their passengers at a dangerous time and
25location, and impeding expedited vehicle recovery, without wasting
26law enforcement’s limited resources.

27(p) The remedies, sanctions, restrictions, and procedures
28provided in this section are not exclusive and are in addition to
29other remedies, sanctions, restrictions, or procedures that may be
30provided in other provisions of law, including, but not limited to,
31those that are provided in Sections 12110 and 34660.

32(q) A vehicle removed and stored pursuant to this section shall
33be released by the law enforcement agency, impounding agency,
34or person in possession of the vehicle, or any person acting on
35behalf of them, to the legal owner or the legal owner’s agent upon
36presentation of the assignment, as defined in subdivision (b) of
37Section 7500.1 of the Business and Professions Code; a release
38from the one responsible governmental agency, only if required
39by the agency; a government-issued photographic identification
40card; and any one of the following as determined by the legal
P125  1owner or the legal owner’s agent: a certificate of repossession for
2the vehicle, a security agreement for the vehicle, or title, whether
3paper or electronic, showing proof of legal ownership for the
4vehicle. Any documents presented may be originals, photocopies,
5or facsimile copies, or may be transmitted electronically. The
6storage facility shall not require any documents to be notarized.
7The storage facility may require the agent of the legal owner to
8produce a photocopy or facsimile copy of its repossession agency
9license or registration issued pursuant to Chapter 11 (commencing
10with Section 7500) of Division 3 of the Business and Professions
11Code, or to demonstrate, to the satisfaction of the storage facility,
12that the agent is exempt from licensure pursuant to Section 7500.2
13or 7500.3 of the Business and Professions Code.

14

begin deleteSEC. 51.end delete
15begin insertSEC. 52.end insert  

Section 13553 of the Water Code, as amended by
16Section 84 of Chapter 181 of the Statutes of 2012, is amended to
17read:

18

13553.  

(a) The Legislature hereby finds and declares that the
19use of potable domestic water for toilet and urinal flushing in
20structures is a waste or an unreasonable use of water within the
21meaning of Section 2 of Article X of the California Constitution
22if recycled water, for these uses, is available to the user and meets
23the requirements set forth in Section 13550, as determined by the
24state board after notice and a hearing.

25(b) The state board may require a public agency or person
26subject to this section to furnish any information that may be
27relevant to making the determination required in subdivision (a).

28(c) For purposes of this section and Section 13554, “structure”
29or “structures” means commercial, retail, and office buildings,
30theaters, auditoriums, condominium projects, schools, hotels,
31apartments, barracks, dormitories, jails, prisons, and reformatories,
32and other structures as determined by the State Department of
33Public Health.

34(d) Recycled water may be used in condominium projects, as
35defined in Section 4125 or 6542 of the Civil Code, subject to all
36of the following conditions:

37(1) Prior to the indoor use of recycled water in any condominium
38project, the agency delivering the recycled water to the
39condominium project shall file a report with, and receive written
40approval of the report from, the State Department of Public Health.
P126  1The report shall be consistent with the provisions of Title 22 of
2the California Code of Regulations generally applicable to
3dual-plumbed structures and shall include all the following:

4(A) That potable water service to each condominium project
5will be provided with a backflow protection device approved by
6the State Department of Public Health to protect the agency’s
7public water system, as defined in Section 116275 of the Health
8and Safety Code. The backflow protection device approved by the
9State Department of Public Health shall be inspected and tested
10annually by a person certified in the inspection of backflow
11prevention devices.

12(B) That any plumbing modifications in the condominium unit
13or any physical alteration of the structure will be done in
14compliance with state and local plumbing codes.

15(C) That each condominium project will be tested by the
16recycled water agency or the responsible local agency at least once
17every four years to ensure that there are no indications of a possible
18cross connection between the condominium’s potable and
19 nonpotable systems.

20(D) That recycled water lines will be color coded consistent
21with current statutes and regulations.

22(2) The recycled water agency or the responsible local agency
23shall maintain records of all tests and annual inspections conducted.

24(3) The condominium’s declaration, as defined in Section 4135
25or 6546 of the Civil Code, shall provide that the laws and
26regulations governing recycled water apply, shall not permit any
27exceptions to those laws and regulations, shall incorporate the
28report described in paragraph (1), and shall contain the following
29statement:


31“NOTICE OF USE OF RECYCLED WATER


33This property is approved by the State Department of Public
34Health for the use of recycled water for toilet and urinal
35flushing. This water is not potable, is not suitable for indoor
36purposes other than toilet and urinal flushing purposes, and
37requires dual plumbing. Alterations and modifications to the
38plumbing system require a permit and are prohibited without
39first consulting with the appropriate local building code
40enforcement agency and your property management company
P127  1or owners’ association to ensure that the recycled water is not
2mixed with the drinking water.”


4(e) The State Department of Public Health may adopt regulations
5as necessary to assist in the implementation of this section.

6(f) This section shall only apply to condominium projects that
7are created, within the meaning of Section 4030 or 6580 of the
8Civil Code, on or after January 1, 2008.

9(g) This section and Section 13554 do not apply to a pilot
10program adopted pursuant to Section 13553.1.



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