Amended in Assembly August 7, 2013

Amended in Assembly June 24, 2013

Amended in Senate April 18, 2013

Senate Bill No. 752

Introduced by Senator Roth

February 22, 2013

An act to amend Sections 10153.2, 11003, 11003.2, 11004.5, 11010.3, 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, begin delete and end delete 4202 begin insert , and 4280 end insert 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:

SECTION 1.  

Section 10153.2 of the Business and Professions
Code, as amended by Section 2 of Chapter 181 of the Statutes of
2012, is amended to read:

10153.2.  

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

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

(A) Real estate practice.

(B) Legal aspects of real estate.

(C) Real estate appraisal.

(D) Real estate financing.

(E) Real estate economics or accounting.

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

(A) Advanced legal aspects of real estate.

(B) Advanced real estate finance.

(C) Advanced real estate appraisal.

(D) Business law.

(E) Escrows.

(F) Real estate principles.

(G) Property management.

(H) Real estate office administration.

(I) Mortgage loan brokering and lending.

(J) Computer applications in real estate.

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

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

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

SEC. 2.  

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

11003.  

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

SEC. 3.  

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

11003.2.  

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

SEC. 4.  

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

11004.5.  

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

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

(b) Any community apartment project, as defined by Section
11004, containing five or more apartments.

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

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

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

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

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

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

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

SEC. 5.  

Section 11010.3 of the Business and Professions Code
is amended to read:

11010.3.  

(a) This chapter shall not apply to the proposed sale
or lease of lots or other interests in a subdivision that is limited to
industrial or commercial uses by law or by a declaration of
covenants, conditions, and restrictions that has been recorded in
the official records of the county or counties in which the
subdivision is located.

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

SEC. 6.  

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

23426.5.  

(a) For purposes of this article, “club” also means
any tennis club that maintains not less than four regulation tennis
courts, together with the necessary facilities and clubhouse, has
members paying regular monthly dues, has been in existence for
not less than 45 years, and is not associated with a common interest
development as defined in Section 4100 or 6534 of the Civil Code,
a community apartment project as defined in Section 11004 of this
code, a project consisting of condominiums as defined in Section
783 of the Civil Code, or a mobilehome park as defined in Section
18214 of the Health and Safety Code.

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

SEC. 7.  

Section 23428.20 of the Business and Professions
Code, as amended by Section 18 of Chapter 181 of the Statutes of
2012, is amended to read:

23428.20.  

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

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

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

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

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

SEC. 8.  

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

714.  

(a) Any covenant, restriction, or condition contained in
any deed, contract, security instrument, or other instrument
affecting the transfer or sale of, or any interest in, real property,
and any provision of a governing document, as defined in Section
4150 or 6552, that effectively prohibits or restricts the installation
or use of a solar energy system is void and unenforceable.

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

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

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

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

(d) For the purposes of this section:

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

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

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

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

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

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

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

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

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

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

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

SEC. 9.  

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

714.1.  

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

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

(b) Require the owner of a separate interest, as defined in Section
4185 or 6564, to obtain the approval of the association for the
installation of a solar energy system in a separate interest owned
by another.

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

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

SEC. 10.  

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

782.  

(a) Any provision in any deed of real property in
California, whether executed before or after the effective date of
this section, that purports to restrict the right of any persons to sell,
lease, rent, use, or occupy the property to persons having any
characteristic listed in subdivision (a) or (d) of Section 12955 of
the Government Code, as those bases are defined in Sections
12926, 12926.1, subdivision (m) and paragraph (1) of subdivision
(p) of Section 12955 and Section 12955.2 of the Government Code,
by providing for payment of a penalty, forfeiture, reverter, or
otherwise, is void.

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

SEC. 11.  

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

782.5.  

(a) Any deed or other written instrument that relates to
title to real property, or any written covenant, condition, or
restriction annexed or made a part of, by reference or otherwise,
any deed or instrument that relates to title to real property, which
contains any provision that purports to forbid, restrict, or condition
the right of any person or persons to sell, buy, lease, rent, use, or
occupy the property on account of any basis listed in subdivision
(a) or (d) of Section 12955 of the Government Code, as those bases
are defined in Sections 12926, 12926.1, subdivision (m) and
paragraph (1) of subdivision (p) of Section 12955, and Section
12955.2 of the Government Code, with respect to any person or
persons, shall be deemed to be revised to omit that provision.

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

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

SEC. 12.  

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

783.  

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

SEC. 13.  

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

783.1.  

In a stock cooperative, as defined in Section 4190 or
6566, both the separate interest, as defined in paragraph (4) of
subdivision (a) of Section 4185 or in paragraph (3) of subdivision
(a) of Section 6564, and the correlative interest in the stock
cooperative corporation, however designated, are interests in real
property.

SEC. 14.  

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

1098.  

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

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

(b) Fees pursuant to mechanics’ liens.

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

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

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

(f) Fees, charges, or payments imposed by lenders or purchasers
of loans, as these entities are described in subdivision (c) of Section
10232 of the Business and Professions Code.

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

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

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

(1) Payment of a transfer fee is required.

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

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

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

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

SEC. 15.  

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

1133.  

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

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

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

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

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

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

SEC. 16.  

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

1633.3.  

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

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

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

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

(3) Divisions 3 (commencing with Section 3101), 4
(commencing with Section 4101), 5 (commencing with Section
5101), 8 (commencing with Section 8101), 9 (commencing with
Section 9101), and 11 (commencing with Section 11101) of the
Uniform Commercial Code.

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

(c) This title does not apply to any specific transaction described
in Section 17511.5 of the Business and Professions Code, Section
56.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6, 1689.7,
or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
Title 5 of Part 2 of Division 3 of, Section 1720, 1785.15, 1789.14,
1789.16, 1789.33, or 1793.23 of, Chapter 1 (commencing with
Section 1801) of Title 2 of Part 4 of Division 3 of, Section 1861.24,
1862.5, 1917.712, 1917.713, 1950.5, 1950.6, 1983, 2924b, 2924c,
2924f, 2924i, 2924j, 2924.3, or 2937 of, Article 1.5 (commencing
with Section 2945) of Chapter 2 of Title 14 of Part 4 of Division
3 of, Section 2954.5 or 2963 of, Chapter 2b (commencing with
Section 2981) or 2d (commencing with Section 2985.7) of Title
14 of Part 4 of Division 3 of, Section 3071.5 of, Part 5
(commencing with Section 4000) of Division 4 of, or Part 5.3
(commencing with Section 6500) of Division 4 of this code,
subdivision (b) of Section 18608 or Section 22328 of the Financial
Code, Section 1358.15, 1365, 1368.01, 1368.1, 1371, or 18035.5
of the Health and Safety Code, Section 662, 663, 664, 667.5, 673,
677, 678, 678.1, 786, 10086, 10113.7, 10127.7, 10127.9, 10127.10,
10197, 10199.44, 10199.46, 10235.16, 10235.40, 10509.4, 10509.7,
11624.09, or 11624.1 of the Insurance Code, Section 779.1,
10010.1, or 16482 of the Public Utilities Code, or Section 9975
or 11738 of the Vehicle Code. An electronic record may not be
substituted for any notice that is required to be sent pursuant to
Section 1162 of the Code of Civil Procedure. Nothing in this
subdivision shall be construed to prohibit the recordation of any
document with a county recorder by electronic means.

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

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

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

SEC. 17.  

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

2924b.  

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

 

“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     ”

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 18.  

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

2955.1.  

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

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

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

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

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

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

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

SEC. 19.  

Section 4202 of the Civil Code is amended to read:

4202.  

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

begin insert

begin insert SEC. 20. end insert   

end insert

begin insert Section 4280 of the end insert begin insert Civil Code end insert begin insert is amended to read: end insert

4280.  

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

(1) Identifies the corporation as an association formed to manage
a common interest development under the Davis-Stirling Common
Interest Development Act.

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

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

(b) The statement filed by an incorporated association with the
Secretary of State pursuant to Section 8210 of the Corporations
Code shall also contain a statement identifying the corporation as
an association formed to manage a common interest development
under the Davis-Stirling Common Interest Development Act.

begin insert

(c) Documents filed prior to January 1, 2014, in compliance
with former Section 1363.5, as it read on January 1, 2013, are
deemed to be in compliance with this section.

end insert

begin delete SEC. 20. end delete
begin insert SEC. 21. end insert   

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

 

PART 5.3.  Commercial and Industrial Common
Interest Developments

 

Chapter  1. General Provisions

 

Article 1.  Preliminary Provisions

 

6500.  

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

6502.  

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

6505.  

Nothing in the act that added this part shall be construed
to invalidate a document prepared or action taken before January
1, 2014, if the document or action was proper under the law
governing common interest developments at the time that the
document was prepared or the action was taken. For the purposes
of this section, “document” does not include a governing document.

6510.  

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

6512.  

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

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

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

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

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

6514.  

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

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

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

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

6518.  

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

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

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

6520.  

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

6522.  

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

6524.  

If a provision of this act requires that an action be
approved by a majority of a quorum of the members, the action
shall be approved or ratified by an affirmative vote of a majority
of the votes represented and voting in a duly held election in which
a quorum is represented, which affirmative votes also constitute
a majority of the required quorum.

 

Article 2.  Definitions

 

6526.  

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

6528.  

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

6530.  

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

6531.  

A “commercial or industrial common interest
development” means a common interest development that is limited
to industrial or commercial uses by law or by a declaration of
covenants, conditions, and restrictions that has been recorded in
the official records of each county in which the common interest
development is located. For the purposes of this section,
“commercial use” includes, but is not limited to, the operation of
a business that provides facilities for the overnight stay of its
customers, employees, or agents.

6532.  

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

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

6534.  

“Common interest development” means any of the
following:

(a) A condominium project.

(b) A planned development.

(c) A stock cooperative.

6540.  

“Condominium plan” means a plan described in Section
6624.

6542.  

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

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

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

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

6544.  

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

6546.  

“Declaration” means the document, however
denominated, that contains the information required by Section
6614.

6548.  

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

6550.  

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

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

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

6552.  

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

6553.  

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

6554.  

“Member” means an owner of a separate interest.

6560.  

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

6562.  

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

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

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

6564.  

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

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

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

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

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

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

6566.  

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

 

Chapter  2. Application of Act

 

6580.  

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

(a) A declaration.

(b) A condominium plan, if any exists.

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

6582.  

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

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

 

Chapter  3. Governing Documents

 

Article 1.  General Provisions

 

6600.  

(a) To the extent of any conflict between the governing
documents and the law, the law shall prevail.

(b) To the extent of any conflict between the articles of
incorporation and the declaration, the declaration shall prevail.

(c) To the extent of any conflict between the bylaws and the
articles of incorporation or declaration, the articles of incorporation
or declaration shall prevail.

(d) To the extent of any conflict between the operating rules
and the bylaws, articles of incorporation, or declaration, the bylaws,
articles of incorporation, or declaration shall prevail.

6602.  

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

6604.  

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

6606.  

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

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

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

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

6608.  

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

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

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

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

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

6610.  

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

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

 

Article 2.  Declaration

 

6614.  

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

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

6616.  

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

6618.  

(a) The Legislature finds that there are common interest
developments that have been created with deed restrictions that
do not provide a means for the members to extend the term of the
declaration. The Legislature further finds that covenants and
restrictions, contained in the declaration, are an appropriate method
for protecting the common plan of developments and to provide
for a mechanism for financial support for the upkeep of common
area including, but not limited to, roofs, roads, heating systems,
and recreational facilities. If declarations terminate prematurely,
common interest developments may deteriorate and the supply of
affordable units could be impacted adversely. The Legislature
further finds and declares that it is in the public interest to provide
a vehicle for extending the term of the declaration if the extension
is approved by a majority of all members, pursuant to Section
6522.

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

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

6620.  

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

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

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

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

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

(b) If the declaration does not specify the percentage of members
who must approve an amendment of the declaration, an amendment
may be approved by a majority of all members, pursuant to Section
6522.

 

Article 3.  Articles of Incorporation

 

6622.  

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

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

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

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

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

begin insert

(c) Documents filed prior to January 1, 2014, in compliance
with former Section 1363.5, as it read on January 1, 2013, are
deemed to be in compliance with this section.

end insert

 

Article 4.  Condominium Plan

 

6624.  

A condominium plan shall contain all of the following:

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

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

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

6626.  

(a) The certificate consenting to the recordation of a
condominium plan that is required by subdivision (c) of Section
6624 shall be signed and acknowledged by all of the following
persons:

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

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

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

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

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

(c) In the event a conversion to condominiums of a stock
cooperative has been approved by the required number of owners,
trustees, beneficiaries, and mortgagees pursuant to Section
66452.10 of the Government Code, the certificate need only be
signed by those owners, trustees, beneficiaries, and mortgagees
approving the conversion.

6628.  

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

 

Article 5.  Operating Rules

 

6630.  

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

6632.  

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

(a) The rule is in writing.

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

(c) The rule is not in conflict with governing law and the
declaration, articles of incorporation or association, or bylaws of
the association.

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

 

Chapter  4. Ownership and Transfer of Interests

 

Article 1.  Ownership Rights and Interests

 

6650.  

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

6652.  

Unless the declaration otherwise provides:

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

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

6654.  

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

 

Article 2.  Restrictions on Transfers

 

6656.  

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

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

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

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

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

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

6658.  

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

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

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

 

Article 3.  Transfer of Separate Interest

 

6662.  

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

6664.  

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

6666.  

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

6668.  

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

6670.  

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

 

Chapter  5. Property Use and Maintenance

 

Article 1.  Protected Uses

 

6700.  

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

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

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

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

(d) Sections 782, 782.5, and 6150 of this code and Section
12956.1 of the Government Code, relating to racial restrictions.

6702.  

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

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

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

6704.  

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

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

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

6706.  

Notwithstanding Section 4202, Section 4715 applies to
an owner of a separate interest in a common interest development
who kept a pet in that common interest development before January
1, 2014.

6708.  

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

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

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

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

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

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

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

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

6710.  

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

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

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

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

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

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

6712.  

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

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

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

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

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

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

6713.  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

Article 2.  Modification of Separate Interest

 

6714.  

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

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

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

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

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

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

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

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

 

Article 3.  Maintenance

 

6716.  

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

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

6718.  

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

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

6720.  

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

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

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

(1) Personal delivery of a copy of the notice to the occupants,
and, if an occupant is not the owner, individual delivery pursuant
to Section 6514 of a copy of the notice to the owner.

(2) Individual delivery pursuant to Section 6514 to the occupant
at the address of the separate interest, and, if the occupant is not
the owner, individual delivery pursuant to Section 6514 of a copy
of the notice to the owner.

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

6722.  

Notwithstanding the provisions of the declaration, a
member is entitled to reasonable access to the common area for
the purpose of maintaining the internal and external telephone
wiring made part of the exclusive use common area of the
member’s separate interest pursuant to subdivision (c) of Section
6550. The access shall be subject to the consent of the association,
whose approval shall not be unreasonably withheld, and which
may include the association’s approval of telephone wiring upon
the exterior of the common area, and other conditions as the
association determines reasonable.

 

Chapter  6. Association Governance

 

Article 1.  Association Existence and Powers

 

6750.  

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

6752.  

(a) Unless the governing documents provide otherwise,
and regardless of whether the association is incorporated or
unincorporated, the association may exercise the powers granted
to a nonprofit mutual benefit corporation, as enumerated in Section
7140 of the Corporations Code, except that an unincorporated
association may not adopt or use a corporate seal or issue
membership certificates in accordance with Section 7313 of the
Corporations Code.

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

 

Article 2.  Record Keeping

 

6756.  

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

 

Article 3.  Conflict of Interest

 

6758.  

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

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

(1) Discipline of the director or committee member.

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

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

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

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

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

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

 

begin insert

Article begin insert 4. end insert   begin insert Government Assistance end insert

end insert

 

begin insert

begin insert 6760. end insert   

(a) To assist with the identification of commercial or
industrial common interest developments, each association,
whether incorporated or unincorporated, shall submit to the
Secretary of State, on a form and for a fee, to cover the reasonable
cost to the Secretary of State of processing the form, not to exceed
thirty dollars ($30), that the Secretary of State shall prescribe, the
following information concerning the association and the
development that it manages:

(1) A statement that the association is formed to manage a
common interest development under the Commercial and Industrial
Common Interest Development Act.

(2) The name of the association.

(3) The street address of the business or corporate office of the
association, if any.

(4) The street address of the association’s onsite office, if
different from the street address of the business or corporate office,
or if there is no onsite office, the street address of the responsible
officer or managing agent of the association.

(5) The name, address, and either the daytime telephone number
or email address of the association’s onsite office or managing
agent.

(6) The name, street address, and daytime telephone number of
the association’s managing agent, if any.

(7) The county, and, if in an incorporated area, the city in which
the development is physically located. If the boundaries of the
development are physically located in more than one county, each
of the counties in which it is located.

(8) If the development is in an unincorporated area, the city
closest in proximity to the development.

(9) The front street and nearest cross street of the physical
location of the development.

(10) The type of common interest development managed by the
association.

(11) The number of separate interests in the development.

(b) The association shall submit the information required by
this section as follows:

(1) By incorporated associations, within 90 days after the filing
of its original articles of incorporation, and thereafter at the time
the association files its statement of principal business activity
with the Secretary of State pursuant to Section 8210 of the
Corporations Code.

(2) By unincorporated associations, in July of 2003, and in that
same month biennially thereafter. Upon changing its status to that
of a corporation, the association shall comply with the filing
deadlines in paragraph (1).

(c) The association shall notify the Secretary of State of any
change in the street address of the association’s onsite office or
of the responsible officer or managing agent of the association in
the form and for a fee, to cover the reasonable cost to the Secretary
of State of processing the form, prescribed by the Secretary of
State, within 60 days of the change.

(d) The penalty for an incorporated association’s noncompliance
with the initial or biennial filing requirements of this section shall
be suspension of the association’s rights, privileges, and powers
as a corporation and monetary penalties, to the same extent and
in the same manner as suspension and monetary penalties imposed
pursuant to Section 8810 of the Corporations Code.

(e) The statement required by this section may be filed,
notwithstanding suspension of the corporate powers, rights, and
privileges under this section or under provisions of the Revenue
and Taxation Code. Upon the filing of a statement under this
section by a corporation that has suffered suspension under this
section, the Secretary of State shall certify that fact to the Franchise
Tax Board and the corporation may thereupon be relieved from
suspension, unless the corporation is held in suspension by the
Franchise Tax Board by reason of Section 23301, 23301.5, or
23775 of the Revenue and Taxation Code.

(f) The Secretary of State shall make the information submitted
pursuant to paragraph (5) of subdivision (a) available only for
governmental purposes and only to Members of the Legislature
and the Business, Consumer Services, and Housing Agency, upon
written request. All other information submitted pursuant to this
section shall be subject to public inspection pursuant to the
California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code).
The information submitted pursuant to this section shall be made
available for governmental or public inspection.

(g) Whenever any form is filed pursuant to this section, it
supersedes any previously filed form.

(h) The Secretary of State may destroy or otherwise dispose of
any form filed pursuant to this section after it has been superseded
by the filing of a new form.

end insert

 

Chapter  7. Assessments and Assessment Collection

 

Article 1.  Establishment and Imposition of Assessments

 

6800.  

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

6804.  

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

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

 

Article 2.  Assessment Payment and Delinquency

 

6808.  

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

6810.  

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

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

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

6812.  

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

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

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

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

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

6814.  

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

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

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

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

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

6816.  

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

6818.  

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

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

6819.  

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

 

Article 3.  Assessment Collection

 

6820.  

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

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

6822.  

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

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

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

6824.  

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

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

6826.  

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

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

6828.  

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

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

 

Chapter  8. Insurance and Liability

 

6840.  

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

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

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

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

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

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

 

Chapter  9. Dispute Resolution and Enforcement

 

Article 1.  Disciplinary Action

 

6850.  

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

(b) Any new or revised monetary penalty that is adopted after
complying with subdivision (a) may be included in a supplement
that is delivered to the members individually, pursuant to Section
6553.

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

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

6854.  

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

 

Article 2.  Civil Actions

 

6856.  

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

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

6858.  

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

(a) Enforcement of the governing documents.

(b) Damage to the common area.

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

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

6860.  

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

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

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

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

 

Chapter  10. Construction Defect Litigation

 

6870.  

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

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

(1) The name and location of the project.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(6) The costs of the dispute resolution facilitator shall be
apportioned in the following manner: one-third to be paid by the
association; one-third to be paid by the respondent; and one-third
to be paid by the subcontractors and design professionals, as
allocated among them by the dispute resolution facilitator. The
costs of the dispute resolution facilitator shall be recoverable by
the prevailing party in any subsequent litigation pursuant to Section
1032 of the Code of Civil Procedure, provided however that any
nonsettling party may, prior to the filing of the complaint, petition
the facilitator to reallocate the costs of the dispute resolution
facilitator as they apply to any nonsettling party. The determination
of the dispute resolution facilitator with respect to the allocation
of these costs shall be binding in any subsequent litigation. The
dispute resolution facilitator shall take into account all relevant
factors and equities between all parties in the dispute resolution
process when reallocating costs.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(B) A written settlement begin delete offer, end delete begin insert offer end insert and a concise explanation
of the reasons for the terms of the offer.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(p) As used in this section:

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

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

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

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

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

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

6874.  

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

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

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

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

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

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

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

6876.  

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

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

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

(3) The time and place of this meeting.

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

begin delete SEC. 21. end delete
begin insert SEC. 22. end insert   

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

86.  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

begin delete SEC. 22. end delete
begin insert SEC. 23. end insert   

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

116.540.  

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

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

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

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

(1) The claim can be proved or disputed by evidence of an
account that constitutes a business record as defined in Section
1271 of the Evidence Code, and there is no other issue of fact in
the case.

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

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

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

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

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

(i) A party that is an association created to manage a common
interest development, as defined in Section 4100 or in Sections
6528 and 6534 of the Civil Code, may appear and participate in a
small claims action through an agent, a management company
representative, or bookkeeper who appears on behalf of that
association.

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

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

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

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

begin delete SEC. 23. end delete
begin insert SEC. 24. end insert   

Section 12191 of the Government Code is amended
to read:

12191.  

The miscellaneous business entity filing fees are the
following:

(a) Foreign associations, as defined in Sections 170 and 171 of
the Corporations Code:

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

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

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

(b) Unincorporated Associations:

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

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

(c) Community Associations and Common Interest
Developments:

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

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

begin delete SEC. 24. end delete
begin insert SEC. 25. end insert   

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

12956.1.  

(a) As used in this section, “association,” “governing
documents,” and “declaration” have the same meanings as set forth
in Sections 4080, 4135, and 4150 or Sections 6528, 6546, and
6552 of the Civil Code.

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

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

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

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

begin delete SEC. 25. end delete
begin insert SEC. 26. end insert   

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

12956.2.  

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

(b) Before recording the modification document, the county
recorder shall submit the modification document and the original
document to the county counsel who shall determine whether the
original document contains an unlawful restriction based on race,
color, religion, sex, gender, gender identity, gender expression,
sexual orientation, familial status, marital status, disability, national
origin, source of income as defined in subdivision (p) of Section
12955, or ancestry. The county counsel shall return the documents
and inform the county recorder of its determination. The county
recorder shall refuse to record the modification document if the
county counsel finds that the original document does not contain
an unlawful restriction as specified in this paragraph.

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

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

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

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

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

begin delete SEC. 26. end delete
begin insert SEC. 27. end insert   

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

53341.5.  

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

NOTICE OF SPECIAL TAX
COMMUNITY FACILITIES DISTRICT NO. ___
COUNTY OF ____, CALIFORNIA

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

 

 

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

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

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

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

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

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

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

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

 

DATE:

 

(b) “Subdivision,” as used in subdivision (a), means improved
or unimproved land that is divided or proposed to be divided for
the purpose of sale, lease, or financing, whether immediate or
future, into two or more lots, parcels, or units and includes a
condominium project, as defined by Section 4125 or 6542 of the
Civil Code, a community apartment project, a stock cooperative,
and a limited-equity housing cooperative, as defined in Sections
11004, 11003.2, and 11003.4, respectively, of the Business and
Professions Code.

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

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

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

begin delete SEC. 27. end delete
begin insert SEC. 28. end insert   

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

65008.  

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

(1) (A) The lawful occupation, age, or any characteristic of the
individual or group of individuals listed in subdivision (a) or (d)
of Section 12955, as those bases are defined in Sections 12926,
12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
Section 12955 and Section 12955.2.

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

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

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

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

(A) Because of the method of financing.

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

(ii) Notwithstanding clause (i), with respect to familial status,
clause (i) shall not be construed to apply to housing for older
persons, as defined in Section 12955.9. With respect to familial
status, nothing in clause (i) shall be construed to affect Sections
51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating
to housing for senior citizens. Subdivision (d) of Section 51,
Section 4760, and Section 6714 of the Civil Code, and subdivisions
(n), (o), and (p) of Section 12955 of this code shall apply to clause
(i).

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

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

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

(A) The method of financing.

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

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

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

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

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

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

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

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

(2) Any city, county, or city and county from extending
preferential treatment to residential developments or emergency
shelters assisted by the federal or state government or by a local
public entity, as defined in Section 50079 of the Health and Safety
Code, or other residential developments or emergency shelters
intended for occupancy by persons and families of low and
moderate income, as defined in Section 50093 of the Health and
Safety Code, or persons and families of middle income, or
agricultural employees, as defined in subdivision (b) of Section
1140.4 of the Labor Code, and their families. This preferential
treatment may include, but need not be limited to, reduction or
waiver of fees or changes in architectural requirements, site
development and property line requirements, building setback
requirements, or vehicle parking requirements that reduce
development costs of these developments.

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

(g) This section shall apply to chartered cities.

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

begin delete SEC. 28. end delete
begin insert SEC. 29. end insert   

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

66411.  

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

begin delete SEC. 29. end delete
begin insert SEC. 30. end insert   

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

66412.  

This division shall be inapplicable to any of the
following:

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

(b) Mineral, oil, or gas leases.

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

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

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

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

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

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

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

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

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

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

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

(h)  The conversion of a stock cooperative, as defined in Section
4190 or 6566 of the Civil Code, to a condominium, as defined in
Section 783 of the Civil Code, but only if all of the following
requirements are met:

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

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

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

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

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

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

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

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

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

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

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

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

begin delete SEC. 30. end delete
begin insert SEC. 31. end insert   

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

66424.  

“Subdivision” means the division, by any subdivider,
of any unit or units of improved or unimproved land, or any portion
thereof, shown on the latest equalized county assessment roll as a
unit or as contiguous units, for the purpose of sale, lease, or
financing, whether immediate or future. Property shall be
considered as contiguous units, even if it is separated by roads,
streets, utility easement, or railroad rights-of-way. “Subdivision”
includes a condominium project, as defined in Section 4125 or
6542 of the Civil Code, a community apartment project, as defined
in Section 4105 of the Civil Code, or the conversion of five or
more existing dwelling units to a stock cooperative, as defined in
of Section 4190 or 6566 of the Civil Code.

begin delete SEC. 31. end delete
begin insert SEC. 32. end insert   

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

66427.  

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

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

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

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

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

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

(2) A perpetual estate or an estate for years in the remainder of
the property is held by the condominium owners in undivided
interests in common, or by an association as defined in Section
4100 or 6528 of the Civil Code, and the duration of the estate in
the remainder of the property is the same as the duration of the
estate in the condominiums.

(3) The three-dimensional portion or portions of property are
described on a condominium plan or plans, as defined in Section
4120 or 6540 of the Civil Code.

begin delete SEC. 32. end delete
begin insert SEC. 33. end insert   

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

66452.10.  

A stock cooperative, as defined in Section 11003.2
of the Business and Professions Code, or a community apartment
project, as defined in Section 11004 of the Business and
Professions Code, shall not be converted to a condominium, as
defined in Section 783 of the Civil Code, unless the required
number of (1) owners and (2) trustees or beneficiaries of each
recorded deed of trust and mortgagees of each recorded mortgage
in the cooperative or project, as specified in the bylaws, or other
organizational documents, have voted in favor of the conversion.
If the bylaws or other organizational documents do not expressly
specify the number of votes required to approve the conversion,
a majority vote of the (1) owners and (2) trustees or beneficiaries
of each recorded deed of trust and mortgagees of each recorded
mortgage in the cooperative or project shall be required. Upon
approval of the conversion as set forth above and in compliance
with Sections 4290 and 4295 or Sections 6626 and 6628 of the
Civil Code, all conveyances and other documents necessary to
effectuate the conversion shall be executed by the required number
of owners in the cooperative or project as specified in the bylaws
or other organizational documents. If the bylaws or other
organizational documents do not expressly specify the number of
owners necessary to execute the conveyances or other documents,
a majority of owners in the cooperative or project shall be required
to execute the conveyances and other documents. Conveyances
and other documents executed under the foregoing provisions shall
be binding upon and affect the interests of all parties in the
cooperative or project. The provisions of Section 66499.31 shall
not apply to a violation of this section.

begin delete SEC. 33. end delete
begin insert SEC. 34. end insert   

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

66475.2.  

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

(b) Only the payment of fees in lieu of the dedication of land
may be required in subdivisions that consist of the subdivision of
airspace in existing buildings into condominium projects, stock
cooperatives, or community apartment projects, as those terms are
defined in Sections 4105, 4125, and 4190 or Sections 6542 and
6566 of the Civil Code.

begin delete SEC. 34. end delete
begin insert SEC. 35. end insert   

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

13132.7.  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(2) The materials have passed at least five years of the 10-year
natural weathering test. The 10-year natural weathering test
required by this subdivision shall be conducted in accordance with
standard 15-2 of the 1994 edition of the Uniform Building Code
at a testing facility recognized by the State Fire Marshal.

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

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

begin delete SEC. 35. end delete
begin insert SEC. 36. end insert   

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

19850.  

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

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

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

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

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

(c) Farm or ranch buildings.

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

begin delete SEC. 36. end delete
begin insert SEC. 37. end insert   

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

25400.22.  

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

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

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

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

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

(D) The record owner of the property.

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

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

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

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

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

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

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

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

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

(E) The amount of the lien, if applicable, which shall be the
greater of two hundred dollars ($200) or the costs incurred by the
local health officer in compliance with this chapter, including, but
not limited to, the cost of inspection performed pursuant to Section
25400.19 and the fee charged by the Department of Housing and
Community Development and the Department of Motor Vehicles
pursuant to paragraph (2) of subdivision (b).

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

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

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

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

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

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

(A) The property owner satisfies the real property lien, or the
contamination in the mobilehome, manufactured home, or
recreational vehicle is abated to the satisfaction of the local health
officer consistent with the notice in the restraint, or vehicle license
stop and the local health officer issues a release pursuant to Section
25400.27.

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

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

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

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

(2) In the case of a mobilehome or manufactured home, the
order shall be served to the legal owner, as defined in Section
18005.8, each junior lienholder, as defined in Section 18005.3,
and the registered owner, as defined in Section 18009.5.

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

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

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

(2) In the case of a mobilehome or manufactured home, the
order shall be served to the legal owner, as defined in Section
18005.8, each junior lienholder, as defined in Section 18005.3,
and the registered owner, as defined in Section 18009.5, at the
address appearing on the permanent record and all occupants of
the affected unit at the mobilehome park space.

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

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

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

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

(1) A description of the property.

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

(3) The vehicle identification number, if applicable.

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

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

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

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

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

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

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

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

begin delete SEC. 37. end delete
begin insert SEC. 38. end insert   

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

25915.2.  

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

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

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

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

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

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

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

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

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

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

(1) Are unique and physically defined.

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

(3) Are not connected to other areas through a common
ventilation system; then, an owner required to give notice to his
or her employees pursuant to subdivision (a) of Section 25915 or
25915.1 may provide that notice only to the employees working
within or entering that area or those areas of the building meeting
the conditions above.

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

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

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

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

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

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

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

begin delete SEC. 38. end delete
begin insert SEC. 39. end insert   

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

33050.  

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

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

begin delete SEC. 39. end delete
begin insert SEC. 40. end insert   

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

33435.  

(a) Agencies shall obligate lessees and purchasers of
real property acquired in redevelopment projects and owners of
property improved as a part of a redevelopment project to refrain
from restricting the rental, sale, or lease of the property on any
basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926,
12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
Section 12955, and Section 12955.2 of the Government Code. All
deeds, leases, or contracts for the sale, lease, sublease, or other
transfer of any land in a redevelopment project shall contain or be
subject to the nondiscrimination or nonsegregation clauses hereafter
prescribed.

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

begin delete SEC. 40. end delete
begin insert SEC. 41. end insert   

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

33436.  

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

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

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

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

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

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

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

begin delete SEC. 41. end delete
begin insert SEC. 42. end insert   

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

35811.  

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

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

begin delete SEC. 42. end delete
begin insert SEC. 43. end insert   

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

37630.  

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

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

begin delete SEC. 43. end delete
begin insert SEC. 44. end insert   

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

50955.  

(a) The agency and every housing sponsor shall require
that occupancy of housing developments assisted under this part
shall be open to all regardless of any basis listed in subdivision (a)
or (d) of Section 12955 of the Government Code, as those bases
are defined in Sections 12926, 12926.1, subdivision (m) and
paragraph (1) of subdivision (p) of Section 12955, and Section
12955.2 of the Government Code, that contractors and
subcontractors engaged in the construction of housing
developments shall provide an equal opportunity for employment,
without discrimination as to any basis listed in subdivision (a) of
Section 12940 of the Government Code, as those bases are defined
in Sections 12926 and 12926.1 of the Government Code, and
except as otherwise provided in Section 12940 of the Government
Code, and that contractors and subcontractors shall submit and
receive approval of an affirmative action program prior to the
commencement of construction or rehabilitation. Affirmative action
requirements respecting apprenticeship shall be consistent with
Chapter 4 (commencing with Section 3070) of Division 3 of the
Labor Code.

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

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

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

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

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

begin delete SEC. 44. end delete
begin insert SEC. 45. end insert   

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

51602.  

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

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

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

begin delete SEC. 45. end delete
begin insert SEC. 46. end insert   

Section 116048 of the Health and Safety Code, as
amended by Section 77 of Chapter 181 of the Statutes of 2012, is
amended to read:

116048.  

(a)  On or after January 1, 1987, for public swimming
pools in any common interest development, as defined in Section
4100 or 6534 of the Civil Code, that consists of fewer than 25
separate interests, as defined in Section 4185 or 6564 of the Civil
Code, the person operating each pool open for use shall be required
to keep a record of the information required by subdivision (a) of
Section 65523 of Title 22 of the California Administrative Code,
except that the information shall be recorded at least two times per
week and at intervals no greater than four days apart.

(b)  On or after January 1, 1987, any rule or regulation of the
department that is in conflict with subdivision (a) is invalid.

begin delete SEC. 46. end delete
begin insert SEC. 47. end insert   

Section 790.031 of the Insurance Code, as amended
by Section 78 of Chapter 181 of the Statutes of 2012, is amended
to read:

790.031.  

The requirements of subdivision (b) of Section
790.034, and Sections 2071.1 and 10082.3 shall apply only to
policies of residential property insurance as defined in Section
10087, policies and endorsements containing those coverages
prescribed in Chapter 8.5 (commencing with Section 10081) of
Part 1 of Division 2, policies issued by the California Earthquake
Authority pursuant to Chapter 8.6 (commencing with Section
10089.5) of Part 1 of Division 2, policies and endorsements that
insure against property damage and are issued to common interest
developments or to associations managing common interest
developments, as those terms are defined in Sections 4080 and
4100 or Sections 6528 and 6534 of the Civil Code, and to policies
issued pursuant to Section 120 that insure against property damage
to residential units or contents thereof owned by one or more
persons located in this state.

begin delete SEC. 47. end delete
begin insert SEC. 48. end insert   

Section 2188.6 of the Revenue and Taxation Code,
as amended by Section 79 of Chapter 181 of the Statutes of 2012,
is amended to read:

2188.6.  

(a) Unless a request for exemption has been recorded
pursuant to subdivision (d), prior to the creation of a condominium
as defined in Section 783 of the Civil Code, the county assessor
may separately assess each individual unit which is shown on the
condominium plan of a proposed condominium project when all
of the following documents have been recorded as required by
law:

(1) A subdivision final map or parcel map, as described in
Sections 66434 and 66445, respectively, of the Government Code.

(2) A condominium plan, as defined in Section 4120 or 6540
of the Civil Code.

(3) A declaration, as defined in Section 4135 or 6546 of the
Civil Code.

(b) The tax due on each individual unit shall constitute a lien
solely on that unit.

(c) The lien created pursuant to this section shall be a lien on
an undivided interest in a portion of real property coupled with a
separate interest in space called a unit as described in Section 4125
or 6542 of the Civil Code.

(d) The record owner of the real property may record with the
condominium plan a request that the real property be exempt from
separate assessment pursuant to this section. If a request for
exemption is recorded, separate assessment of a condominium unit
shall be made only in accordance with Section 2188.3.

(e) This section shall become operative on January 1, 1990, and
shall apply to condominium projects for which a condominium
plan is recorded after that date.

begin delete SEC. 48. end delete
begin insert SEC. 49. end insert   

Section 21107.7 of the Vehicle Code, as amended by
Section 80 of Chapter 181 of the Statutes of 2012, is amended to
read:

21107.7.  

(a) Any city or county may, by ordinance or
resolution, find and declare that there are privately owned and
maintained roads as described in the ordinance or resolution within
the city or county that are not generally held open for use of the
public for purposes of vehicular travel but, by reason of their
proximity to or connection with highways, the interests of any
residents residing along the roads and the motoring public will
best be served by application of the provisions of this code to those
roads. No ordinance or resolution shall be enacted unless there is
first filed with the city or county a petition requesting it by a
majority of the owners of any privately owned and maintained
road, or by at least a majority of the board of directors of a common
interest development, as defined by Section 4100 or 6534 of the
Civil Code, that is responsible for maintaining the road, and without
a public hearing thereon and 10 days’ prior written notice to all
owners of the road or all of the owners in the development. Upon
enactment of the ordinance or resolution, the provisions of this
code shall apply to the privately owned and maintained road if
appropriate signs are erected at the entrance to the road of the size,
shape, and color as to be readily legible during daylight hours from
a distance of 100 feet, to the effect that the road is subject to the
provisions of this code. The city or county may impose reasonable
conditions and may authorize the owners, or board of directors of
the common interest development, to erect traffic signs, signals,
markings, and devices which conform to the uniform standards
and specifications adopted by the Department of Transportation.

(b) The department shall not be required to provide patrol or
enforce any provisions of this code on any privately owned and
maintained road subjected to the provisions of this code under this
section, except those provisions applicable to private property
other than by action under this section.

(c) As used in this section, “privately owned and maintained
roads” includes roads owned and maintained by a city, county, or
district that are not dedicated to use by the public or are not
generally held open for use of the public for purposes of vehicular
travel.

begin delete SEC. 49. end delete
begin insert SEC. 50. end insert   

Section 22651 of the Vehicle Code is amended to
read:

22651.  

A peace officer, as defined in Chapter 4.5 (commencing
with Section 830) of Title 3 of Part 2 of the Penal Code, or a
regularly employed and salaried employee, who is engaged in
directing traffic or enforcing parking laws and regulations, of a
city, county, or jurisdiction of a state agency in which a vehicle is
located, may remove a vehicle located within the territorial limits
in which the officer or employee may act, under the following
circumstances:

(a) When a vehicle is left unattended upon a bridge, viaduct, or
causeway or in a tube or tunnel where the vehicle constitutes an
obstruction to traffic.

(b) When a vehicle is parked or left standing upon a highway
in a position so as to obstruct the normal movement of traffic or
in a condition so as to create a hazard to other traffic upon the
highway.

(c) When a vehicle is found upon a highway or public land and
a report has previously been made that the vehicle is stolen or a
complaint has been filed and a warrant thereon is issued charging
that the vehicle was embezzled.

(d) When a vehicle is illegally parked so as to block the entrance
to a private driveway and it is impractical to move the vehicle from
in front of the driveway to another point on the highway.

(e) When a vehicle is illegally parked so as to prevent access
by firefighting equipment to a fire hydrant and it is impracticable
to move the vehicle from in front of the fire hydrant to another
point on the highway.

(f) When a vehicle, except highway maintenance or construction
equipment, is stopped, parked, or left standing for more than four
hours upon the right-of-way of a freeway that has full control of
access and no crossings at grade and the driver, if present, cannot
move the vehicle under its own power.

(g) When the person in charge of a vehicle upon a highway or
public land is, by reason of physical injuries or illness,
incapacitated to an extent so as to be unable to provide for its
custody or removal.

(h) (1) When an officer arrests a person driving or in control
of a vehicle for an alleged offense and the officer is, by this code
or other law, required or permitted to take, and does take, the
person into custody.

(2) When an officer serves a notice of an order of suspension
or revocation pursuant to Section 13388 or 13389.

(i) (1) When a vehicle, other than a rented vehicle, is found
upon a highway or public land, or is removed pursuant to this code,
and it is known that the vehicle has been issued five or more notices
of parking violations to which the owner or person in control of
the vehicle has not responded within 21 calendar days of notice
of citation issuance or citation issuance or 14 calendar days of the
mailing of a notice of delinquent parking violation to the agency
responsible for processing notices of parking violations, or the
registered owner of the vehicle is known to have been issued five
or more notices for failure to pay or failure to appear in court for
traffic violations for which a certificate has not been issued by the
magistrate or clerk of the court hearing the case showing that the
case has been adjudicated or concerning which the registered
owner’s record has not been cleared pursuant to Chapter 6
(commencing with Section 41500) of Division 17, the vehicle may
be impounded until that person furnishes to the impounding law
enforcement agency all of the following:

(A) Evidence of his or her identity.

(B) An address within this state at which he or she can be
located.

(C) Satisfactory evidence that all parking penalties due for the
vehicle and all other vehicles registered to the registered owner of
the impounded vehicle, and all traffic violations of the registered
owner, have been cleared.

(2) The requirements in subparagraph (C) of paragraph (1) shall
be fully enforced by the impounding law enforcement agency on
and after the time that the Department of Motor Vehicles is able
to provide access to the necessary records.

(3) A notice of parking violation issued for an unlawfully parked
vehicle shall be accompanied by a warning that repeated violations
may result in the impounding of the vehicle. In lieu of furnishing
satisfactory evidence that the full amount of parking penalties or
bail has been deposited, that person may demand to be taken
without unnecessary delay before a magistrate, for traffic offenses,
or a hearing examiner, for parking offenses, within the county in
which the offenses charged are alleged to have been committed
and who has jurisdiction of the offenses and is nearest or most
accessible with reference to the place where the vehicle is
impounded. Evidence of current registration shall be produced
after a vehicle has been impounded, or, at the discretion of the
impounding law enforcement agency, a notice to appear for
violation of subdivision (a) of Section 4000 shall be issued to that
person.

(4) A vehicle shall be released to the legal owner, as defined in
Section 370, if the legal owner does all of the following:

(A) Pays the cost of towing and storing the vehicle.

(B) Submits evidence of payment of fees as provided in Section
9561.

(C) Completes an affidavit in a form acceptable to the
impounding law enforcement agency stating that the vehicle was
not in possession of the legal owner at the time of occurrence of
the offenses relating to standing or parking. A vehicle released to
a legal owner under this subdivision is a repossessed vehicle for
purposes of disposition or sale. The impounding agency shall have
a lien on any surplus that remains upon sale of the vehicle to which
the registered owner is or may be entitled, as security for the full
amount of the parking penalties for all notices of parking violations
issued for the vehicle and for all local administrative charges
imposed pursuant to Section 22850.5. The legal owner shall
promptly remit to, and deposit with, the agency responsible for
processing notices of parking violations from that surplus, on
receipt of that surplus, the full amount of the parking penalties for
all notices of parking violations issued for the vehicle and for all
local administrative charges imposed pursuant to Section 22850.5.

(5) The impounding agency that has a lien on the surplus that
remains upon the sale of a vehicle to which a registered owner is
entitled pursuant to paragraph (4) has a deficiency claim against
the registered owner for the full amount of the parking penalties
for all notices of parking violations issued for the vehicle and for
all local administrative charges imposed pursuant to Section
22850.5, less the amount received from the sale of the vehicle.

(j) When a vehicle is found illegally parked and there are no
license plates or other evidence of registration displayed, the
vehicle may be impounded until the owner or person in control of
the vehicle furnishes the impounding law enforcement agency
evidence of his or her identity and an address within this state at
which he or she can be located.

(k) When a vehicle is parked or left standing upon a highway
for 72 or more consecutive hours in violation of a local ordinance
authorizing removal.

(l) When a vehicle is illegally parked on a highway in violation
of a local ordinance forbidding standing or parking and the use of
a highway, or a portion thereof, is necessary for the cleaning,
repair, or construction of the highway, or for the installation of
underground utilities, and signs giving notice that the vehicle may
be removed are erected or placed at least 24 hours prior to the
removal by a local authority pursuant to the ordinance.

(m) When the use of the highway, or a portion of the highway,
is authorized by a local authority for a purpose other than the
normal flow of traffic or for the movement of equipment, articles,
or structures of unusual size, and the parking of a vehicle would
prohibit or interfere with that use or movement, and signs giving
notice that the vehicle may be removed are erected or placed at
least 24 hours prior to the removal by a local authority pursuant
to the ordinance.

(n) Whenever a vehicle is parked or left standing where local
authorities, by resolution or ordinance, have prohibited parking
and have authorized the removal of vehicles. Except as provided
in subdivisions (v) and (w), a vehicle shall not be removed unless
signs are posted giving notice of the removal.

(o) (1) When a vehicle is found or operated upon a highway,
public land, or an offstreet parking facility under the following
circumstances:

(A) With a registration expiration date in excess of six months
before the date it is found or operated on the highway, public lands,
or the offstreet parking facility.

(B) Displaying in, or upon, the vehicle, a registration card,
identification card, temporary receipt, license plate, special plate,
registration sticker, device issued pursuant to Section 4853, or
permit that was not issued for that vehicle, or is not otherwise
lawfully used on that vehicle under this code.

(C) Displaying in, or upon, the vehicle, an altered, forged,
counterfeit, or falsified registration card, identification card,
temporary receipt, license plate, special plate, registration sticker,
device issued pursuant to Section 4853, or permit.

(2) When a vehicle described in paragraph (1) is occupied, only
a peace officer, as defined in Chapter 4.5 (commencing with
Section 830) of Title 3 of Part 2 of the Penal Code, may remove
the vehicle.

(3) For the purposes of this subdivision, the vehicle shall be
released under either of the following circumstances:

(A) To the registered owner or person in control of the vehicle
only after the owner or person furnishes the storing law
enforcement agency with proof of current registration and a
currently valid driver’s license to operate the vehicle.

(B) To the legal owner or the legal owner’s agency, without
payment of any fees, fines, or penalties for parking tickets or
registration and without proof of current registration, if the vehicle
will only be transported pursuant to the exemption specified in
Section 4022 and if the legal owner does all of the following:

(i) Pays the cost of towing and storing the vehicle.

(ii) Completes an affidavit in a form acceptable to the
impounding law enforcement agency stating that the vehicle was
not in possession of the legal owner at the time of occurrence of
an offense relating to standing or parking. A vehicle released to a
legal owner under this subdivision is a repossessed vehicle for
purposes of disposition or sale. The impounding agency has a lien
on any surplus that remains upon sale of the vehicle to which the
registered owner is or may be entitled, as security for the full
amount of parking penalties for any notices of parking violations
issued for the vehicle and for all local administrative charges
imposed pursuant to Section 22850.5. Upon receipt of any surplus,
the legal owner shall promptly remit to, and deposit with, the
agency responsible for processing notices of parking violations
from that surplus, the full amount of the parking penalties for all
notices of parking violations issued for the vehicle and for all local
administrative charges imposed pursuant to Section 22850.5.

(4) The impounding agency that has a lien on the surplus that
remains upon the sale of a vehicle to which a registered owner is
entitled has a deficiency claim against the registered owner for the
full amount of parking penalties for any notices of parking
violations issued for the vehicle and for all local administrative
charges imposed pursuant to Section 22850.5, less the amount
received from the sale of the vehicle.

(5) As used in this subdivision, “offstreet parking facility” means
an offstreet facility held open for use by the public for parking
vehicles and includes a publicly owned facility for offstreet
parking, and a privately owned facility for offstreet parking if a
fee is not charged for the privilege to park and it is held open for
the common public use of retail customers.

(p) When the peace officer issues the driver of a vehicle a notice
to appear for a violation of Section 12500, 14601, 14601.1,
14601.2, 14601.3, 14601.4, 14601.5, or 14604 and the vehicle is
not impounded pursuant to Section 22655.5. A vehicle so removed
from the highway or public land, or from private property after
having been on a highway or public land, shall not be released to
the registered owner or his or her agent, except upon presentation
of the registered owner’s or his or her agent’s currently valid
driver’s license to operate the vehicle and proof of current vehicle
registration, to the impounding law enforcement agency, or upon
order of a court.

(q) When a vehicle is parked for more than 24 hours on a portion
of highway that is located within the boundaries of a common
interest development, as defined in Section 4100 or 6534 of the
Civil Code, and signs, as required by paragraph (1) of subdivision
(a) of Section 22658 of this code, have been posted on that portion
of highway providing notice to drivers that vehicles parked thereon
for more than 24 hours will be removed at the owner’s expense,
pursuant to a resolution or ordinance adopted by the local authority.

(r) When a vehicle is illegally parked and blocks the movement
of a legally parked vehicle.

(s) (1) When a vehicle, except highway maintenance or
construction equipment, an authorized emergency vehicle, or a
vehicle that is properly permitted or otherwise authorized by the
Department of Transportation, is stopped, parked, or left standing
for more than eight hours within a roadside rest area or viewpoint.

(2) Notwithstanding paragraph (1), when a commercial motor
vehicle, as defined in paragraph (1) of subdivision (b) of Section
15210, is stopped, parked, or left standing for more than 10 hours
within a roadside rest area or viewpoint.

(3) For purposes of this subdivision, a roadside rest area or
viewpoint is a publicly maintained vehicle parking area, adjacent
to a highway, utilized for the convenient, safe stopping of a vehicle
to enable motorists to rest or to view the scenery. If two or more
roadside rest areas are located on opposite sides of the highway,
or upon the center divider, within seven miles of each other, then
that combination of rest areas is considered to be the same rest
area.

(t) When a peace officer issues a notice to appear for a violation
of Section 25279.

(u) When a peace officer issues a citation for a violation of
Section 11700 and the vehicle is being offered for sale.

(v) (1) When a vehicle is a mobile billboard advertising display,
as defined in Section 395.5, and is parked or left standing in
violation of a local resolution or ordinance adopted pursuant to
subdivision (m) of Section 21100, if the registered owner of the
vehicle was previously issued a warning citation for the same
offense, pursuant to paragraph (2).

(2) Notwithstanding subdivision (a) of Section 22507, a city or
county, in lieu of posting signs noticing a local ordinance
prohibiting mobile billboard advertising displays adopted pursuant
to subdivision (m) of Section 21100, may provide notice by issuing
a warning citation advising the registered owner of the vehicle that
he or she may be subject to penalties upon a subsequent violation
of the ordinance, that may include the removal of the vehicle as
provided in paragraph (1). A city or county is not required to
provide further notice for a subsequent violation prior to the
enforcement of penalties for a violation of the ordinance.

(w) (1) When a vehicle is parked or left standing in violation
of a local ordinance or resolution adopted pursuant to subdivision
(p) of Section 21100, if the registered owner of the vehicle was
previously issued a warning citation for the same offense, pursuant
to paragraph (2).

(2) Notwithstanding subdivision (a) of Section 22507, a city or
county, in lieu of posting signs noticing a local ordinance regulating
advertising signs adopted pursuant to subdivision (p) of Section
21100, may provide notice by issuing a warning citation advising
the registered owner of the vehicle that he or she may be subject
to penalties upon a subsequent violation of the ordinance that may
include the removal of the vehicle as provided in paragraph (1).
A city or county is not required to provide further notice for a
subsequent violation prior to the enforcement of penalties for a
violation of the ordinance.

begin delete SEC. 50. end delete
begin insert SEC. 51. end insert   

Section 22651.05 of the Vehicle Code, as amended
by Section 82 of Chapter 181 of the Statutes of 2012, is amended
to read:

22651.05.  

(a) A trained volunteer of a state or local law
enforcement agency, who is engaged in directing traffic or
enforcing parking laws and regulations, of a city, county, or
jurisdiction of a state agency in which a vehicle is located, may
remove or authorize the removal of a vehicle located within the
territorial limits in which an officer or employee of that agency
may act, under any of the following circumstances:

(1) When a vehicle is parked or left standing upon a highway
for 72 or more consecutive hours in violation of a local ordinance
authorizing the removal.

(2) When a vehicle is illegally parked or left standing on a
highway in violation of a local ordinance forbidding standing or
parking and the use of a highway, or a portion thereof, is necessary
for the cleaning, repair, or construction of the highway, or for the
installation of underground utilities, and signs giving notice that
the vehicle may be removed are erected or placed at least 24 hours
prior to the removal by local authorities pursuant to the ordinance.

(3) Wherever the use of the highway, or a portion thereof, is
authorized by local authorities for a purpose other than the normal
flow of traffic or for the movement of equipment, articles, or
structures of unusual size, and the parking of a vehicle would
prohibit or interfere with that use or movement, and signs giving
notice that the vehicle may be removed are erected or placed at
least 24 hours prior to the removal by local authorities pursuant
to the ordinance.

(4) Whenever a vehicle is parked or left standing where local
authorities, by resolution or ordinance, have prohibited parking
and have authorized the removal of vehicles. A vehicle may not
be removed unless signs are posted giving notice of the removal.

(5) Whenever a vehicle is parked for more than 24 hours on a
portion of highway that is located within the boundaries of a
common interest development, as defined in Section 4100 or 6534
of the Civil Code, and signs, as required by Section 22658.2, have
been posted on that portion of highway providing notice to drivers
that vehicles parked thereon for more than 24 hours will be
removed at the owner’s expense, pursuant to a resolution or
ordinance adopted by the local authority.

(b) The provisions of this chapter that apply to a vehicle
removed pursuant to Section 22651 apply to a vehicle removed
pursuant to subdivision (a).

(c) For purposes of subdivision (a), a “trained volunteer” is a
person who, of his or her own free will, provides services, without
any financial gain, to a local or state law enforcement agency, and
who is duly trained and certified to remove a vehicle by a local or
state law enforcement agency.

begin delete SEC. 51. end delete
begin insert SEC. 52. end insert   

Section 22658 of the Vehicle Code, as amended by
Section 83 of Chapter 181 of the Statutes of 2012, is amended to
read:

22658.  

(a) The owner or person in lawful possession of private
property, including an association of a common interest
development as defined in Sections 4080 and 4100 or Sections
6528 and 6534 of the Civil Code, may cause the removal of a
vehicle parked on the property to a storage facility that meets the
requirements of subdivision (n) under any of the following
circumstances:

(1) There is displayed, in plain view at all entrances to the
property, a sign not less than 17 inches by 22 inches in size, with
lettering not less than one inch in height, prohibiting public parking
and indicating that vehicles will be removed at the owner’s
expense, and containing the telephone number of the local traffic
law enforcement agency and the name and telephone number of
each towing company that is a party to a written general towing
authorization agreement with the owner or person in lawful
possession of the property. The sign may also indicate that a
citation may also be issued for the violation.

(2) The vehicle has been issued a notice of parking violation,
and 96 hours have elapsed since the issuance of that notice.

(3) The vehicle is on private property and lacks an engine,
transmission, wheels, tires, doors, windshield, or any other major
part or equipment necessary to operate safely on the highways,
the owner or person in lawful possession of the private property
has notified the local traffic law enforcement agency, and 24 hours
have elapsed since that notification.

(4) The lot or parcel upon which the vehicle is parked is
improved with a single-family dwelling.

(b) The tow truck operator removing the vehicle, if the operator
knows or is able to ascertain from the property owner, person in
lawful possession of the property, or the registration records of
the Department of Motor Vehicles the name and address of the
registered and legal owner of the vehicle, shall immediately give,
or cause to be given, notice in writing to the registered and legal
owner of the fact of the removal, the grounds for the removal, and
indicate the place to which the vehicle has been removed. If the
vehicle is stored in a storage facility, a copy of the notice shall be
given to the proprietor of the storage facility. The notice provided
for in this section shall include the amount of mileage on the
vehicle at the time of removal and the time of the removal from
the property. If the tow truck operator does not know and is not
able to ascertain the name of the owner or for any other reason is
unable to give the notice to the owner as provided in this section,
the tow truck operator shall comply with the requirements of
subdivision (c) of Section 22853 relating to notice in the same
manner as applicable to an officer removing a vehicle from private
property.

(c) This section does not limit or affect any right or remedy that
the owner or person in lawful possession of private property may
have by virtue of other provisions of law authorizing the removal
of a vehicle parked upon private property.

(d) The owner of a vehicle removed from private property
pursuant to subdivision (a) may recover for any damage to the
vehicle resulting from any intentional or negligent act of a person
causing the removal of, or removing, the vehicle.

(e) (1) An owner or person in lawful possession of private
property, or an association of a common interest development,
causing the removal of a vehicle parked on that property is liable
for double the storage or towing charges whenever there has been
a failure to comply with paragraph (1), (2), or (3) of subdivision
(a) or to state the grounds for the removal of the vehicle if requested
by the legal or registered owner of the vehicle as required by
subdivision (f).

(2) A property owner or owner’s agent or lessee who causes the
removal of a vehicle parked on that property pursuant to the
exemption set forth in subparagraph (A) of paragraph (1) of
subdivision (l) and fails to comply with that subdivision is guilty
of an infraction, punishable by a fine of one thousand dollars
($1,000).

(f) An owner or person in lawful possession of private property,
or an association of a common interest development, causing the
removal of a vehicle parked on that property shall notify by
telephone or, if impractical, by the most expeditious means
available, the local traffic law enforcement agency within one hour
after authorizing the tow. An owner or person in lawful possession
of private property, an association of a common interest
development, causing the removal of a vehicle parked on that
property, or the tow truck operator who removes the vehicle, shall
state the grounds for the removal of the vehicle if requested by the
legal or registered owner of that vehicle. A towing company that
removes a vehicle from private property in compliance with
subdivision (l) is not responsible in a situation relating to the
validity of the removal. A towing company that removes the
vehicle under this section shall be responsible for the following:

(1) Damage to the vehicle in the transit and subsequent storage
of the vehicle.

(2) The removal of a vehicle other than the vehicle specified by
the owner or other person in lawful possession of the private
property.

(g) (1) (A) Possession of a vehicle under this section shall be
deemed to arise when a vehicle is removed from private property
and is in transit.

(B) Upon the request of the owner of the vehicle or that owner’s
agent, the towing company or its driver shall immediately and
unconditionally release a vehicle that is not yet removed from the
private property and in transit.

(C) A person failing to comply with subparagraph (B) is guilty
of a misdemeanor.

(2) If a vehicle is released to a person in compliance with
subparagraph (B) of paragraph (1), the vehicle owner or authorized
agent shall immediately move that vehicle to a lawful location.

(h) A towing company may impose a charge of not more than
one-half of the regular towing charge for the towing of a vehicle
at the request of the owner, the owner’s agent, or the person in
lawful possession of the private property pursuant to this section
if the owner of the vehicle or the vehicle owner’s agent returns to
the vehicle after the vehicle is coupled to the tow truck by means
of a regular hitch, coupling device, drawbar, portable dolly, or is
lifted off the ground by means of a conventional trailer, and before
it is removed from the private property. The regular towing charge
may only be imposed after the vehicle has been removed from the
property and is in transit.

(i) (1) (A) A charge for towing or storage, or both, of a vehicle
under this section is excessive if the charge exceeds the greater of
the following:

(i) That which would have been charged for that towing or
storage, or both, made at the request of a law enforcement agency
under an agreement between a towing company and the law
enforcement agency that exercises primary jurisdiction in the city
in which is located the private property from which the vehicle
was, or was attempted to be, removed, or if the private property
is not located within a city, then the law enforcement agency that
exercises primary jurisdiction in the county in which the private
property is located.

(ii) That which would have been charged for that towing or
storage, or both, under the rate approved for that towing operator
by the Department of the California Highway Patrol for the
jurisdiction in which the private property is located and from which
the vehicle was, or was attempted to be, removed.

(B) A towing operator shall make available for inspection and
copying his or her rate approved by the Department of the
California Highway Patrol, if any, within 24 hours of a request
without a warrant to law enforcement, the Attorney General, district
attorney, or city attorney.

(2) If a vehicle is released within 24 hours from the time the
vehicle is brought into the storage facility, regardless of the
calendar date, the storage charge shall be for only one day. Not
more than one day’s storage charge may be required for a vehicle
released the same day that it is stored.

(3) If a request to release a vehicle is made and the appropriate
fees are tendered and documentation establishing that the person
requesting release is entitled to possession of the vehicle, or is the
owner’s insurance representative, is presented within the initial
24 hours of storage, and the storage facility fails to comply with
the request to release the vehicle or is not open for business during
normal business hours, then only one day’s storage charge may
be required to be paid until after the first business day. A business
day is any day in which the lienholder is open for business to the
public for at least eight hours. If a request is made more than 24
hours after the vehicle is placed in storage, charges may be imposed
on a full calendar day basis for each day, or part thereof, that the
vehicle is in storage.

(j) (1) A person who charges a vehicle owner a towing, service,
or storage charge at an excessive rate, as described in subdivision
(h) or (i), is civilly liable to the vehicle owner for four times the
amount charged.

(2) A person who knowingly charges a vehicle owner a towing,
service, or storage charge at an excessive rate, as described in
subdivision (h) or (i), or who fails to make available his or her rate
as required in subparagraph (B) of paragraph (1) of subdivision
(i), is guilty of a misdemeanor, punishable by a fine of not more
than two thousand five hundred dollars ($2,500), or by
imprisonment in a county jail for not more than three months, or
by both that fine and imprisonment.

(k) (1) A person operating or in charge of a storage facility
where vehicles are stored pursuant to this section shall accept a
valid bank credit card or cash for payment of towing and storage
by a registered owner, the legal owner, or the owner’s agent
claiming the vehicle. A credit card shall be in the name of the
person presenting the card. “Credit card” means “credit card” as
defined in subdivision (a) of Section 1747.02 of the Civil Code,
except, for the purposes of this section, credit card does not include
a credit card issued by a retail seller.

(2) A person described in paragraph (1) shall conspicuously
display, in that portion of the storage facility office where business
is conducted with the public, a notice advising that all valid credit
cards and cash are acceptable means of payment.

(3) A person operating or in charge of a storage facility who
refuses to accept a valid credit card or who fails to post the required
notice under paragraph (2) is guilty of a misdemeanor, punishable
by a fine of not more than two thousand five hundred dollars
($2,500), or by imprisonment in a county jail for not more than
three months, or by both that fine and imprisonment.

(4) A person described in paragraph (1) who violates paragraph
(1) or (2) is civilly liable to the registered owner of the vehicle or
the person who tendered the fees for four times the amount of the
towing and storage charges.

(5) A person operating or in charge of the storage facility shall
have sufficient moneys on the premises of the primary storage
facility during normal business hours to accommodate, and make
change in, a reasonable monetary transaction.

(6) Credit charges for towing and storage services shall comply
with Section 1748.1 of the Civil Code. Law enforcement agencies
may include the costs of providing for payment by credit when
making agreements with towing companies as described in
subdivision (i).

(l) (1) (A) A towing company shall not remove or commence
the removal of a vehicle from private property without first
obtaining the written authorization from the property owner or
lessee, including an association of a common interest development,
or an employee or agent thereof, who shall be present at the time
of removal and verify the alleged violation, except that presence
and verification is not required if the person authorizing the tow
is the property owner, or the owner’s agent who is not a tow
operator, of a residential rental property of 15 or fewer units that
does not have an onsite owner, owner’s agent or employee, and
the tenant has verified the violation, requested the tow from that
tenant’s assigned parking space, and provided a signed request or
electronic mail, or has called and provides a signed request or
electronic mail within 24 hours, to the property owner or owner’s
agent, which the owner or agent shall provide to the towing
company within 48 hours of authorizing the tow. The signed
request or electronic mail shall contain the name and address of
the tenant, and the date and time the tenant requested the tow. A
towing company shall obtain, within 48 hours of receiving the
written authorization to tow, a copy of a tenant request required
pursuant to this subparagraph. For the purpose of this subparagraph,
a person providing the written authorization who is required to be
present on the private property at the time of the tow does not have
to be physically present at the specified location of where the
vehicle to be removed is located on the private property.

(B) The written authorization under subparagraph (A) shall
include all of the following:

(i) The make, model, vehicle identification number, and license
plate number of the removed vehicle.

(ii) The name, signature, job title, residential or business address,
and working telephone number of the person, described in
subparagraph (A), authorizing the removal of the vehicle.

(iii) The grounds for the removal of the vehicle.

(iv) The time when the vehicle was first observed parked at the
private property.

(v) The time that authorization to tow the vehicle was given.

(C) (i) When the vehicle owner or his or her agent claims the
vehicle, the towing company prior to payment of a towing or
storage charge shall provide a photocopy of the written
authorization to the vehicle owner or the agent.

(ii) If the vehicle was towed from a residential property, the
towing company shall redact the information specified in clause
(ii) of subparagraph (B) in the photocopy of the written
authorization provided to the vehicle owner or the agent pursuant
to clause (i).

(iii) The towing company shall also provide to the vehicle owner
or the agent a separate notice that provides the telephone number
of the appropriate local law enforcement or prosecuting agency
by stating “If you believe that you have been wrongfully towed,
please contact the local law enforcement or prosecuting agency at
[insert appropriate telephone number].” The notice shall be in
English and in the most populous language, other than English,
that is spoken in the jurisdiction.

(D) A towing company shall not remove or commence the
removal of a vehicle from private property described in subdivision
(a) of Section 22953 unless the towing company has made a good
faith inquiry to determine that the owner or the property owner’s
agent complied with Section 22953.

(E) (i) General authorization to remove or commence removal
of a vehicle at the towing company’s discretion shall not be
delegated to a towing company or its affiliates except in the case
of a vehicle unlawfully parked within 15 feet of a fire hydrant or
in a fire lane, or in a manner which interferes with an entrance to,
or exit from, the private property.

(ii) In those cases in which general authorization is granted to
a towing company or its affiliate to undertake the removal or
commence the removal of a vehicle that is unlawfully parked within
15 feet of a fire hydrant or in a fire lane, or that interferes with an
entrance to, or exit from, private property, the towing company
and the property owner, or owner’s agent, or person in lawful
possession of the private property shall have a written agreement
granting that general authorization.

(2) If a towing company removes a vehicle under a general
authorization described in subparagraph (E) of paragraph (1) and
that vehicle is unlawfully parked within 15 feet of a fire hydrant
or in a fire lane, or in a manner that interferes with an entrance to,
or exit from, the private property, the towing company shall take,
prior to the removal of that vehicle, a photograph of the vehicle
that clearly indicates that parking violation. Prior to accepting
payment, the towing company shall keep one copy of the
photograph taken pursuant to this paragraph, and shall present that
photograph and provide, without charge, a photocopy to the owner
or an agent of the owner, when that person claims the vehicle.

(3) A towing company shall maintain the original written
authorization, or the general authorization described in
subparagraph (E) of paragraph (1) and the photograph of the
violation, required pursuant to this section, and any written requests
from a tenant to the property owner or owner’s agent required by
subparagraph (A) of paragraph (1), for a period of three years and
shall make them available for inspection and copying within 24
hours of a request without a warrant to law enforcement, the
Attorney General, district attorney, or city attorney.

(4) A person who violates this subdivision is guilty of a
misdemeanor, punishable by a fine of not more than two thousand
five hundred dollars ($2,500), or by imprisonment in a county jail
for not more than three months, or by both that fine and
imprisonment.

(5) A person who violates this subdivision is civilly liable to
the owner of the vehicle or his or her agent for four times the
amount of the towing and storage charges.

(m) (1) A towing company that removes a vehicle from private
property under this section shall notify the local law enforcement
agency of that tow after the vehicle is removed from the private
property and is in transit.

(2) A towing company is guilty of a misdemeanor if the towing
company fails to provide the notification required under paragraph
(1) within 60 minutes after the vehicle is removed from the private
property and is in transit or 15 minutes after arriving at the storage
facility, whichever time is less.

(3) A towing company that does not provide the notification
under paragraph (1) within 30 minutes after the vehicle is removed
from the private property and is in transit is civilly liable to the
registered owner of the vehicle, or the person who tenders the fees,
for three times the amount of the towing and storage charges.

(4) If notification is impracticable, the times for notification, as
required pursuant to paragraphs (2) and (3), shall be tolled for the
time period that notification is impracticable. This paragraph is an
affirmative defense.

(n) A vehicle removed from private property pursuant to this
section shall be stored in a facility that meets all of the following
requirements:

(1) (A) Is located within a 10-mile radius of the property from
where the vehicle was removed.

(B) The 10-mile radius requirement of subparagraph (A) does
not apply if a towing company has prior general written approval
from the law enforcement agency that exercises primary
jurisdiction in the city in which is located the private property from
which the vehicle was removed, or if the private property is not
located within a city, then the law enforcement agency that
exercises primary jurisdiction in the county in which is located the
private property.

(2) (A) Remains open during normal business hours and releases
vehicles after normal business hours.

(B) A gate fee may be charged for releasing a vehicle after
normal business hours, weekends, and state holidays. However,
the maximum hourly charge for releasing a vehicle after normal
business hours shall be one-half of the hourly tow rate charged for
initially towing the vehicle, or less.

(C) Notwithstanding any other provision of law and for purposes
of this paragraph, “normal business hours” are Monday to Friday,
inclusive, from 8 a.m. to 5 p.m., inclusive, except state holidays.

(3) Has a public pay telephone in the office area that is open
and accessible to the public.

(o) (1) It is the intent of the Legislature in the adoption of
subdivision (k) to assist vehicle owners or their agents by, among
other things, allowing payment by credit cards for towing and
storage services, thereby expediting the recovery of towed vehicles
and concurrently promoting the safety and welfare of the public.

(2) It is the intent of the Legislature in the adoption of
subdivision (l) to further the safety of the general public by
ensuring that a private property owner or lessee has provided his
or her authorization for the removal of a vehicle from his or her
property, thereby promoting the safety of those persons involved
in ordering the removal of the vehicle as well as those persons
removing, towing, and storing the vehicle.

(3) It is the intent of the Legislature in the adoption of
subdivision (g) to promote the safety of the general public by
requiring towing companies to unconditionally release a vehicle
that is not lawfully in their possession, thereby avoiding the
likelihood of dangerous and violent confrontation and physical
injury to vehicle owners and towing operators, the stranding of
vehicle owners and their passengers at a dangerous time and
location, and impeding expedited vehicle recovery, without wasting
law enforcement’s limited resources.

(p) The remedies, sanctions, restrictions, and procedures
provided in this section are not exclusive and are in addition to
other remedies, sanctions, restrictions, or procedures that may be
provided in other provisions of law, including, but not limited to,
those that are provided in Sections 12110 and 34660.

(q) A vehicle removed and stored pursuant to this section shall
be released by the law enforcement agency, impounding agency,
or person in possession of the vehicle, or any person acting on
behalf of them, to the legal owner or the legal owner’s agent upon
presentation of the assignment, as defined in subdivision (b) of
Section 7500.1 of the Business and Professions Code; a release
from the one responsible governmental agency, only if required
by the agency; a government-issued photographic identification
card; and any one of the following as determined by the legal
owner or the legal owner’s agent: a certificate of repossession for
the vehicle, a security agreement for the vehicle, or title, whether
paper or electronic, showing proof of legal ownership for the
vehicle. Any documents presented may be originals, photocopies,
or facsimile copies, or may be transmitted electronically. The
storage facility shall not require any documents to be notarized.
The storage facility may require the agent of the legal owner to
produce a photocopy or facsimile copy of its repossession agency
license or registration issued pursuant to Chapter 11 (commencing
with Section 7500) of Division 3 of the Business and Professions
Code, or to demonstrate, to the satisfaction of the storage facility,
that the agent is exempt from licensure pursuant to Section 7500.2
or 7500.3 of the Business and Professions Code.

begin delete SEC. 52. end delete
begin insert SEC. 53. end insert   

Section 13553 of the Water Code, as amended by
Section 84 of Chapter 181 of the Statutes of 2012, is amended to
read:

13553.  

(a) The Legislature hereby finds and declares that the
use of potable domestic water for toilet and urinal flushing in
structures is a waste or an unreasonable use of water within the
meaning of Section 2 of Article X of the California Constitution
if recycled water, for these uses, is available to the user and meets
the requirements set forth in Section 13550, as determined by the
state board after notice and a hearing.

(b) The state board may require a public agency or person
subject to this section to furnish any information that may be
relevant to making the determination required in subdivision (a).

(c) For purposes of this section and Section 13554, “structure”
or “structures” means commercial, retail, and office buildings,
theaters, auditoriums, condominium projects, schools, hotels,
apartments, barracks, dormitories, jails, prisons, and reformatories,
and other structures as determined by the State Department of
Public Health.

(d) Recycled water may be used in condominium projects, as
defined in Section 4125 or 6542 of the Civil Code, subject to all
of the following conditions:

(1) Prior to the indoor use of recycled water in any condominium
project, the agency delivering the recycled water to the
condominium project shall file a report with, and receive written
approval of the report from, the State Department of Public Health.
The report shall be consistent with the provisions of Title 22 of
the California Code of Regulations generally applicable to
dual-plumbed structures and shall include all the following:

(A) That potable water service to each condominium project
will be provided with a backflow protection device approved by
the State Department of Public Health to protect the agency’s
public water system, as defined in Section 116275 of the Health
and Safety Code. The backflow protection device approved by the
State Department of Public Health shall be inspected and tested
annually by a person certified in the inspection of backflow
prevention devices.

(B) That any plumbing modifications in the condominium unit
or any physical alteration of the structure will be done in
compliance with state and local plumbing codes.

(C) That each condominium project will be tested by the
recycled water agency or the responsible local agency at least once
every four years to ensure that there are no indications of a possible
cross connection between the condominium’s potable and
nonpotable systems.

(D) That recycled water lines will be color coded consistent
with current statutes and regulations.

(2) The recycled water agency or the responsible local agency
shall maintain records of all tests and annual inspections conducted.

(3) The condominium’s declaration, as defined in Section 4135
or 6546 of the Civil Code, shall provide that the laws and
regulations governing recycled water apply, shall not permit any
exceptions to those laws and regulations, shall incorporate the
report described in paragraph (1), and shall contain the following
statement:

“NOTICE OF USE OF RECYCLED WATER

This property is approved by the State Department of Public
Health for the use of recycled water for toilet and urinal
flushing. This water is not potable, is not suitable for indoor
purposes other than toilet and urinal flushing purposes, and
requires dual plumbing. Alterations and modifications to the
plumbing system require a permit and are prohibited without
first consulting with the appropriate local building code
enforcement agency and your property management company
or owners’ association to ensure that the recycled water is not
mixed with the drinking water.”

(e) The State Department of Public Health may adopt regulations
as necessary to assist in the implementation of this section.

(f) This section shall only apply to condominium projects that
are created, within the meaning of Section 4030 or 6580 of the
Civil Code, on or after January 1, 2008.

(g) This section and Section 13554 do not apply to a pilot
program adopted pursuant to Section 13553.1.