Amended in Assembly April 28, 2015

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 amended, 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 begin delete purposes. end delete begin insert purposes, except to accomplish legitimate association business, as defined. end insert The bill would begin delete 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. end delete begin insert require the association board or managing entity to mail to those persons listed on the owner’s list a communication requested in writing by an owner, if the mailing would address legitimate association business. end insert 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) (1) The association shall maintain among its records a
complete list of the names and mailing 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.
Notwithstanding any other provision of this section, the association
shall not publish this list of owners or provide a copy of it to any
time-share interest begin delete owners end delete begin insert owner end insert or to any third begin delete party or use or
sell the list for commercial purposes. end delete begin insert party, or use or sell the list
for commercial purposes, except as required to accomplish
legitimate association business as described in paragraph (2). end insert

begin delete

(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 delete begin insert

(2) (A) If an owner of a time-share interest in the time-share
plan makes a request to the owner’s association to communicate
by mail with the membership of the association, the board of
administration of the owners’ association or the managing entity
is responsible for determining whether the requested mailing
pertains to legitimate association business as defined in paragraph
(3). If the board of administration of the association or the
managing entity determines that the mailing pertains to legitimate
association business, the requested mailing shall be made within
30 days after receipt of a request and payment by the owner of
actual costs in accordance with subparagraph (B). If the board
or managing entity determines that the requested mailing will not
advance legitimate association business, the board or the managing
entity shall, within 30 days after receipt of the request, notify the
requesting owner in writing and shall indicate the reasons for the
rejection.

end insert begin insert

(B) The owner who requests the mailing shall pay the
association in advance for the association’s actual costs in
performing the mailing. The association shall make a good faith
effort to minimize the costs of the mailing, including the use of a
less expensive delivery method with respect to those owners who
have previously consented to the less expensive delivery method.

end insert begin insert

(C) If the requested mailing is a proxy solicitation to recall one
or more board members elected by the owners or to discharge the
manager or managing entity, and the board of administration or
managing entity does not complete the requested mailing within
30 days after receipt of a request from an owner and payment of
actual costs, the superior court in the county where the time-share
plan is located may, upon application from the requesting owner,
summarily order the requested mailing. To the extent possible, the
superior court shall dispose of an application on an expedited
basis. In the event the court orders the mailing, it may order the
board or managing entity to pay the owner’s costs, including
attorney’s fees reasonably incurred to enforce the owner’s rights,
unless the board or the managing entity can prove it refused to
distribute the materials in good faith because of reasonable doubt
about whether the requested mailing pertained to legitimate
association business.

end insert begin insert

(D) The use of any proxies solicited by a mailing described in
subparagraph (C) shall comply with the provisions of the
time-share instrument and this chapter.

end insert begin insert

(E) It is unlawful for the board of administration of the
association or managing entity to refuse to distribute a
communication requested by an owner if the requested mailing
would address legitimate association business.

end 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, begin delete or end delete the discharge of
a manager or management begin delete firm. end delete begin insert entity, or disposition of time-share
interests acquired by the association. end insert

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

(f) For single site time-share plans and component sites of a
begin delete multiline end delete begin insert multisite 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.