Amended in Senate August 2, 2016

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 begin delete of owners end delete or providing a copy of it to any begin delete time-share interest owner or to any end delete 3rd party or using or selling the list for commercial begin delete purposes, except to accomplish legitimate association business, as defined. end delete begin insert purposes. The bill would require the association to provide a copy of the list to an owner for a purpose reasonably related to membership in the association, except as specified. end insert The bill would begin delete 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 delete begin insert require, if a time-share interest owner makes a request to communicate by mail with the membership of the association for a purpose reasonably related to membership in the association, the communication to be made within 30 days of receipt of the end insert begin insert request and payment of actual costs in performing the mailing. The bill would require, if the purpose is not reasonably related, the board of administration of the association or the managing entity to notify the requesting owner of the rejection. The bill would authorize a court to summarily order the distribution of the requested communication if it is not distributed within 30 days after receipt of a request from an owner and payment of actual costs. 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)  begin delete The end delete begin insert Except as provided in subdivision (e), the end insert 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.
begin delete Notwithstanding any other provision of this section, the end delete begin insert The end insert
association shall not publish this list begin delete of owners end delete or provide a copy
of it to any begin delete time-share interest owner or to any end delete third party, or use
or sell the list for commercial begin delete purposes, except as required to
accomplish legitimate association business as described in
paragraph (2). end delete begin insert purposes. The association shall provide a copy of
the list to a member for a purpose reasonably related to
membership in the association. However, notwithstanding this
requirement, if the association reasonably believes that the
recipient of the list will use the list for another purpose or provide
a copy or disclose the contents to another party, the association
shall refuse to provide the member a copy of the list. end insert

(2) (A) If an owner of a time-share interest in the time-share
plan makes a request to the begin delete owner’s end delete association to communicate
by mail with the membership of the begin delete 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 end delete begin insert association for a purpose reasonably related to membership
in the association, and end insert the board of administration of the
association or the managing entity determines that the mailing
pertains to begin delete legitimate association business, end delete begin insert a purpose reasonably
related to membership in the association, end insert 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 begin delete will not advance legitimate association business, end delete begin insert does not
pertain to a purpose reasonably related to membership in the
association end insert begin insert , end insert 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 begin delete method with respect to those owners who have previously
consented to the less expensive delivery method. end delete begin insert method, including
electronic delivery. end insert

(C) If the begin delete 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 end delete board of administration or
managing entity does not begin delete complete the requested mailing end delete begin insert distribute
the requested communication end insert 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
begin delete requested mailing. end delete begin insert distribution of the requested communication. end insert
To the extent possible, the superior court shall dispose of an
application on an expedited basis. In the event the court orders the
begin delete mailing, end delete begin insert distribution of the requested communication, end insert 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 begin delete materials end delete begin insert communication end insert in good faith because of begin insert a end insert
reasonable begin delete doubt about whether end delete begin insert belief that end insert the requested begin delete mailing
pertained to legitimate association business. end delete begin insert communication did
not pertain to a purpose reasonably related to membership in the
association end insert begin insert . end insert

begin delete

(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 delete begin delete

(E)

end delete

begin insert (D) end insert  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 begin delete mailing
would address legitimate association business. end delete begin insert communication
would address a purpose reasonably related to membership in the
association. end insert

begin delete

(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, the discharge of a
manager or management entity, or disposition of time-share
interests acquired by the association.

(4)

end delete

begin insert (3) end insert  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
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.