BILL ANALYSIS �
SB 752
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Date of Hearing: August 14, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 752 (Roth) - As Amended: August 7, 2013
Policy Committee: Housing and
Community Development Vote: 7-0
Judiciary 10-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill establishes the Commercial and Industrial Common
Interest Development (CID) Act to govern the regulation of
commercial and industrial CIDs within the Davis Stirling Common
Interest Development Act. This bill carries over the relevant
provisions of the Davis Stirling Act to the Commercial and
Industrial Common Interest Development Act.
FISCAL EFFECT
Minor and absorbable costs for the Secretary of State. The
costs, however, will depend on the volume of filings. If there
is an unexpected increase in filings, the Secretary of State is
authorized to charge a $30 fee for filings and those proceeds
could be used to defray the costs.
COMMENTS
1)Purpose . The sponsor of this bill, the California Law
Revision Commission (CLRC), reviewed the legislative history
of the Davis Stirling Act and determined that the intent of
the Legislature was to apply only certain provisions of the
Davis Stirling Act to commercial and industrial CIDs. The
sponsor states the history of the Davis Stirling Act supports
the view that the Legislature viewed commercial and industrial
CID owners as more sophisticated and better able to protect
their interests than residential owners. Shortly after its
1985 enactment, the Davis Stirling Act was amended to exempt
commercial and industrial CIDs from certain provisions of the
Davis Stirling Act that were seen as unnecessarily burdensome
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and costly. The sponsor contends, as the Davis Stirling Act
was amended over the years and expanded to triple its original
size, the distinction between residential and commercial and
industrial CIDs was not maintained.
The California Law Revision Commission, after conducting
public hearings, recommends the issue be addressed by enacting
a separate statute that would govern only non-residential
CIDs, and would not contain the regulatory provisions of the
Davis-Stirling Act not applicable to those CIDs. SB 752
implements that recommendation, which the commission believes
is an important change to reduce unnecessary regulations on
businesses without compromising residential protections.
2)Support . The California Business Properties Association
argues the Davis-Stirling Act has grown dramatically since its
1985 enactment. However, most of its new provisions were added
to address problems faced by homeowners, without separate
analysis of whether the new provisions should also apply to
businesses. They contend this has resulted in unnecessary
regulations applying to non-residential CIDs.
3)Background . CIDs are characterized by a separate ownership of
dwelling space coupled with shared interest in a common area.
They are restricted by covenants and conditions that limit the
use of common area and the separate ownership interests and
the management of common property and enforcement of
restrictions by a homeowners association. The Davis Stirling
Act is the state law that authorizes the creation of CIDs and
defines and regulates their activities. CIDs can be either
residential, commercial or industrial. This bill would create
a separate statutory framework for commercial and industrial
CIDs and apply only limited general provisions of the Davis
Stirling Act.
4)Previous legislation.
a) AB 805 (Torres) Chapter 180, Statutes of 2012,
reorganized and recodified the Davis-Stirling Act and made
minor substantive changes.
b) AB 806 (Torres) Chapter 181, Statutes of 2012, is a
technical companion bill to AB 805 that made conforming
changes in other codes.
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5)There is no registered opposition to this bill.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081