California Legislature—2015–16 Regular Session

Assembly Bill No. 634

Introduced by Assembly Member Calderon

February 24, 2015

An act to amend Section 11273 of the Business and Professions Code, relating to time-shares.

LEGISLATIVE COUNSEL’S DIGEST

AB 634, as introduced, Calderon. Vacation ownership and time-shares: owners list.

The Vacation Ownership and Time-share Act of 2004 requires all records of a time-share plan maintained by a time-share association to be made available for inspection and copying by any member for a purpose reasonably related to membership in the association. Existing law requires the time-share association to maintain among its records a complete list of the names and addresses of all owners of time-share interests in the time-share plan, as specified. Existing law prohibits an association from publishing the owners list or providing a copy of it to any time-share interest owner or to any 3rd party or using or selling the list for commercial purposes, except as provided in the time-share instruments.

This bill would require the owner addresses in the list to be mailing addresses, and would prohibit the association from publishing the list of owners or providing a copy of it to any time-share interest owner or to any 3rd party or using or selling the list for commercial purposes. The bill would provide methods for time-share interest owners to communicate with the entire membership of the association through a written request to the association, if the association determines that the communication would advance legitimate association business, as specified. The bill would also specify that certain provisions of the Nonprofit Mutual Benefit Corporation Law pertaining to the list of names, addresses, and voting rights of members of a nonprofit mutual benefit corporation do not apply to time-share associations under the Vacation Ownership and Time-share Act of 2004.

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.  

The Legislature hereby finds and declares all of
the following:

(a) In 2010, the court of appeal held that time-share association
membership lists containing personal information may be
distributed over the objection of many time-share owners.

(b) Time-share associations frequently have membership lists
in excess of 10,000 members.

(c) Membership lists on the open market are of substantial value,
particularly to unscrupulous parties that prey upon time-share
owners.

(d) Legislation is needed to protect the privacy of time-share
owners.

SEC. 2.  

Section 11273 of the Business and Professions Code
is amended to read:

11273.  

(a) The books of account, minutes of members and
governing body meetings, and all other records of the time-share
plan maintained by the association or the managing entity shall be
made available for inspection and copying by any member, or by
his or her duly appointed representative, at any reasonable time
for a purpose reasonably related to membership in the association.

(b) The records shall be made available for inspection at the
office where the records are maintained. Upon receipt of an
authenticated written request from a member along with the fee
prescribed by the governing body to defray the costs of
reproduction, the managing entity or other custodian of records of
the association or the time-share plan shall prepare and transmit
to the member a copy of any and all records requested.

(c) The governing body shall establish reasonable rules with
respect to all of the following:

(1) Notice to be given to the managing entity or other custodian
of the records by the member desiring to make the inspection or
to obtain copies.

(2) Hours and days of the week when a personal inspection of
the records may be made.

(3) Payment of the cost of reproducing copies of records
requested by a member.

(d) Every governing body member shall have the absolute right
at any time to inspect all books, records, and documents of the
association and all real and personal properties owned and
controlled by the association.

(e)  begin insert (1) end insert begin insert   end insert The association shall maintain among its records a
complete list of the names and begin insert mailing end insert addresses of all owners of
time-share interests in the time-share plan. The association shall
update this list no less frequently than every six months. begin delete Unless
otherwise provided in the time-share instruments, the end delete
begin insert Notwithstanding any other provision of this section, end insert begin insert the end insert association
begin delete may end delete begin insert shall end insert not publish this begin delete owner’s end delete list begin insert of owners end insert or provide a copy
of it to any time-share interest begin delete owner’s end delete begin insert owners end insert or to any third party
or use or sell the list for commercial purposes.

begin insert

(2) If an owner of a time-share interest in the time-share plan
provides a written request to the association to communicate with
the membership of the association, the association shall, within
30 days of the date of the written request, determine whether the
communication would advance legitimate association business,
and shall provide a method of making the requested communication
without providing access to, or a copy of, the association
membership list to the requesting owner. The association shall
notify the requesting owner of its decision and may require payment
of the costs associated with making the communication, before
making the communication, and the requesting owner shall provide
payment, if required, to the association before the association
makes the communication. Any alternative method that
accomplishes the purpose set forth in a written request pursuant
to this paragraph shall be deemed a reasonable alternative. If the
association determines that a communication will not advance
legitimate association business, the association shall, within 30
days, notify the requesting owner in writing and shall indicate the
reasons for the rejection.

end insert begin insert

(3) For the purposes of this section, “legitimate association
business” includes, but is not limited to, a proxy solicitation for
any purpose, including, but not limited to, the recall of one or more
of the board members elected by the owners, or the discharge of
a manager or management firm.

end insert begin insert

(4)  Section 8330 of the Corporations Code shall not apply to
time-share associations under this chapter.

end insert

(f) For single site time-share plans and component sites of a
begin delete multisite end delete begin insert multiline end insert time-share plan located outside of the state, the
association shall be subject to the provisions set forth in this
section. The association must be in compliance with the applicable
laws of the state or jurisdiction in which the time-share property
or component site is located, and if a conflict exists between laws
of the situs state and the requirements set forth in this section, the
law of the situs state shall control. If the association and the
time-share instruments provide for the matters contained in this
section, the association shall be deemed to be in compliance with
the requirements of this section and neither the developer nor the
association shall be required to make revisions to the time-share
instruments in order to comply with the section.