BILL NUMBER: AB 634 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 2, 2016
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, except
to accomplish legitimate association business, as defined.
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. The bill
would 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. 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
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.
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 Except as provided in
subdivision (e), 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
The association shall not publish this list of
owners or provide a copy of it to any time-share
interest owner or to any third party, or use or sell the
list for commercial purposes, except as required to
accomplish legitimate association business as described in paragraph
(2). 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.
(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 association for a purpose reasonably
related to membership in the association, and the board of
administration of the association or the managing entity determines
that the mailing pertains to legitimate association
business, a purpose reasonably related to membership
in the association, 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, does not
pertain to a purpose reasonably related to membership in the
association , 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.
method, including electronic delivery.
(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 distribute the requested
communication 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.
distribution of the requested communication. To
the extent possible, the superior court shall dispose of an
application on an expedited basis. In the event the court orders the
mailing, distribution of the requested
communication, 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
communication in good faith because of a
reasonable doubt about whether belief that
the requested mailing pertained to legitimate
association business. communication did not pertain to
a purpose reasonably related to membership in the association
.
(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)
(D) 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.
communication would address a purpose reasonably related to
membership in the association.
(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)
(3) 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.