BILL NUMBER: AB 634 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 28, 2015
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 purposes. purposes, except to
accomplish legitimate association business, as defined. 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. 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. 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 owners owner or to
any third party or use or sell the list for commercial
purposes. party, or use or sell the list for
commercial purposes, except as required to accomplish legitimate
association business as described in paragraph (2).
(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.
(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.
(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.
(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.
(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.
(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.
(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.
entity, or disposition of time-share interests acquired by the
association.
(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
multiline multisite 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.