BILL ANALYSIS Ó SENATE COMMITTEE ON TRANSPORTATION AND HOUSING Senator Jim Beall, Chair 2015 - 2016 Regular Bill No: AB 349 Hearing Date: 6/23/2015 ----------------------------------------------------------------- |Author: |Gonzalez | |----------+------------------------------------------------------| |Version: |6/17/2015 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |Yes |Fiscal: |No | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Alison Dinmore | |: | | ----------------------------------------------------------------- SUBJECT: Common interest developments: property use and maintenance DIGEST: This bill voids, or makes unenforceable, any provision of a common interest development (CID) governing document or architectural or landscaping guidelines or policies that prohibit the use of artificial turf or any other synthetic surface that resembles grass. ANALYSIS: A CID is a form of real estate in which each homeowner has an exclusive interest in a unit or lot and a shared or undivided interest in common-area property. Condominiums, planned unit developments, stock cooperatives, community apartments, and many resident-owned mobilehome parks all fall under the umbrella of common interest developments. CIDs are governed by a homeowners association (HOA). The Davis-Stirling Common Interest Development Act provides the legal framework under which CIDs are established and operate. In addition to the requirements of the act, each CID is governed according to the recorded declarations, bylaws, and operating rules of the association, collectively referred to as the governing documents. The Davis-Stirling Act provides that the covenants and restrictions in the declaration are "enforceable equitable servitudes, unless unreasonable." In Narhstedt v. Lakeside Village (1994), the United States Supreme Court interpreted this provision to mean that CID governing documents "should be AB 349 (Gonzalez) Page 2 of ? enforced unless they are wholly arbitrary, violate a fundamentally public policy, or impose a burden on the use of affected land that far outweighs any benefit." Existing law: 1)Voids, or makes unenforceable, any provision of a CID governing document or architectural or landscaping guidelines or policies that: a) Prohibit, or include conditions that have the effect of prohibiting, the use of low water-using plants as a group or as a replacement of existing turf; b) Restrict compliance with a water-efficient landscape ordinance adopted by a local government; or c) Prohibit compliance with any regulation or restriction on the use of water due to severe water shortage. 2)Permits an HOA to apply landscaping rules in the governing documents, so long as the rules conform with the provisions in 1), above. This urgency bill: 1)Voids, or makes unenforceable, any provision of a CID governing document or architectural or landscaping guidelines or policies that prohibit the use of artificial turf or any other synthetic surface that resembles grass. 2)Prohibits a CID from requiring a homeowner to reverse or remove water-efficient landscaping measures upon the conclusion of a state of emergency due to drought, that were installed during that state of emergency. COMMENTS: 1)Purpose of the bill. According to the author, this year was the lowest snowpack ever recorded, and California is in the fourth year of a historic, prolonged, and potentially devastating drought. Governor Brown issued an Executive Order on April 1, 2015, which, for the first time ever in California history, directs the State Water Resources Control Board to implement mandatory water reductions across the state to reduce water usage by 25%. Given the extent of this drought situation, Californians should explore every option they have to improve their water efficiency. According to the AB 349 (Gonzalez) Page 3 of ? Department of Water Resources, landscape irrigation represents 43% of urban water use, and the installation of artificial turf or synthetic grass, in lieu of conventional lawns and landscapes, can directly reduce outdoor water use to help meet the Governor's mandated 25% statewide water use reduction. Today, Californians may elect to install artificial turf or synthetic grass in their single-family residential landscapes. Many homeowners within CIDs, however, have complained that their HOAs have stymied their freedom to conserve through synthetic turf installation by promulgating unreasonable restrictions, including exorbitant fines for homeowners who choose to replace their lawns. 2)Permitting artificial grass. This bill would prohibit an HOA from preventing a homeowner from installing artificial turf or synthetic grass. Existing law allows an HOA to apply landscaping rules that are included in the governing documents, so long as those rules do not prohibit or have the effect of prohibiting the use of low-water using plants or prevent a homeowner from complying with a local water-efficient landscaping ordinance. This bill would extend those protections to artificial turf or grass. This means an HOA may establish reasonable restrictions about the type of artificial grass that a homeowner may use so long as those restrictions do not, in effect, prevent a homeowner from installing artificial grass. 3)If at first you don't succeed. In 2011, Governor Brown vetoed SB 759 (Lieu), which contained identical language as this bill. The Governor's veto message stated: The decision about choosing synthetic turf instead of natural vegetation should be left to individual homeowners associations, not mandated by state law. For this reason, I am returning this bill. Governor Schwarzenegger also vetoed AB 1793 (Saldana), also containing identical language to this bill, in 2010. The Governor's veto message stated: CIDs provide a system of self-governance through a community association, responsible for managing, maintaining, and repairing the common areas, and have the authority to enforce special rules. Decisions such as these AB 349 (Gonzalez) Page 4 of ? regarding the use of artificial turf can be made by the homeowners and amended into their governing documents. 4)Opposition. The Educational Community for Homeowners (ECHO) opposes this bill because decisions made regarding landscaping in CIDs is, and should continue to be, made by the community and their elected board of directors. ECHO therefore resists attempts by the state to legislate a "one-size-fits-all" approach to CID governance. Additionally, ECHO is concerned about possible unknown health impacts that could be caused by synthetic turf. 5)Double-referral. The Rules Committee has referred this bill to both this committee and the Judiciary Committee. Assembly Votes: Floor: 73-3 HC&D: 7-0 Related Legislation: SB 759 (Lieu, Statutes of 2011) - would have voided, or made unenforceable, any provision of a CID governing document or architectural or landscaping guidelines or policies that prohibit the use of artificial turf or any other synthetic surface that resembles grass. This bill was vetoed by Governor Brown. AB 1793 (Saldana, Statutes of 2010) - would have voided, or made unenforceable, any provision of a CID governing document or architectural or landscaping guidelines or policies that prohibit the use of artificial turf or any other synthetic surface that resembles grass. This bill was vetoed by Governor Schwarzenegger. FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No POSITIONS: (Communicated to the committee before noon on Wednesday, June 17, 2015.) SUPPORT: AB 349 (Gonzalez) Page 5 of ? San Diego Water Authority (sponsor) California Association of Realtors California Municipal Communities Association California Landscape Contractors Association (CLCA) Coastal Environmental Rights Foundation Metropolitan Water District of Southern California San Diego Coastkeeper OPPOSITION: Educational Community for Homeowners -- END --