Amended in Senate August 18, 2016

Amended in Senate August 2, 2016

Amended in Assembly April 28, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 634


Introduced by Assembly Member Calderon

February 24, 2015


An act to amendbegin delete Section 11273 of the Business and Professions Code, relating to time-shares.end deletebegin insert Section 881 of the Probate Code, as added by Assembly Bill 691 of the 2015-end insertbegin insert16 Regular Session, relating to estates. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 634, as amended, Calderon. begin deleteVacation ownership and time-shares: owners list. end deletebegin insertRevised Uniform Fiduciary Access to Digital Assets Act.end insert

begin insert

Existing law provides for the disposition of a testator’s property by will. Existing law also provides for the disposition of that portion of a decedent’s estate not disposed of by will. Existing law provides that the decedent’s property, including property devised by a will, is generally subject to probate administration, except as specified.

end insert
begin insert

AB 691 of the 2015-16 Regular Session would enact the Revised Uniform Fiduciary Access to Digital Assets Act, which would authorize a decedent’s personal representative or trustee to access and manage digital assets and electronic communications, as specified. Among other provisions, AB 691 would provide that a custodian of digital assets, and its officers, employees, and agents, are immune from liability for an act or omission done in good faith and in compliance with the act.

end insert
begin insert

This bill would specify that this immunity does not apply in a case of gross negligence or willful or wanton misconduct. The bill would become operative only if AB 691 is enacted prior to the enactment of this bill.

end insert
begin delete

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.

end delete
begin delete

This bill would require the owner addresses in the list to be mailing addresses, and would prohibit the association from publishing the list or providing a copy of it to any 3rd party or using or selling the list for commercial 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, 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.

end delete

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 881 of the end insertbegin insertProbate Codeend insertbegin insert, as added by
2Assembly Bill 691 of the 2015-16 Regular Session, is amended to
3readend insert
begin insert:end insert

4

881.  

(a) Not later than 60 days after receipt of the information
5required under Section Sections 876 to Section 879, inclusive, a
6custodian shall comply with a request under this part from a
7fiduciary or designated recipient to disclose digital assets or
8terminate an account. If the custodian fails to comply with a
9request, the fiduciary or designated recipient may apply to the
10court for an order directing compliance.

11(b) An order under subdivision (a) directing compliance shall
12contain a finding that compliance is not in violation of Section
132702 of Title 18 of the United States Code.

14(c) A custodian may notify a user that a request for disclosure
15of digital assets or to terminate an account was made pursuant to
16this part.

17(d) A custodian may deny a request under this part from a
18fiduciary or designated recipient for disclosure of digital assets or
19to terminate an account if the custodian is aware of any lawful
20access to the account following the date of death of the user.

21(e) This part does not limit a custodian’s ability to obtain or to
22require a fiduciary or designated recipient requesting disclosure
23or account termination under this part to obtain a court order that
24makes all of the following findings:

25(1) The account belongs to the decedent, principal, or trustee.

26(2) There is sufficient consent from the decedent, principal, or
27settlor to support the requested disclosure.

28(3) Any specific factual finding required by any other applicable
29law in effect at that time, including, but not limited to, a finding
30that disclosure is not in violation of Section 2702 of Title 18 of
31the Untied United States Code.

32(f) begin insert(1)end insertbegin insertend insert A custodian and its officers, employees, and agents are
33immune from liability for an act or omission done in good faith in
34compliance with this part.

begin insert

35
(2) The protections specified in paragraph (1) shall not apply
36in a case of gross negligence or willful or wanton misconduct of
37the custodian or its officers, employees, or agents under this part.

end insert
begin insert
P4    1

begin insertSEC. 2.end insert  

This act shall become operative only if Assembly Bill
2691 is also enacted and this act is enacted after Assembly Bill 691.

end insert
begin delete
3

SECTION 1.  

The Legislature hereby finds and declares all of
4the following:

5(a) In 2010, the court of appeal held that time-share association
6membership lists containing personal information may be
7distributed over the objection of many time-share owners.

8(b) Time-share associations frequently have membership lists
9in excess of 10,000 members.

10(c) Membership lists on the open market are of substantial value,
11particularly to unscrupulous parties that prey upon time-share
12owners.

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

15

SEC. 2.  

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

17

11273.  

(a) Except as provided in subdivision (e), the books
18of account, minutes of members and governing body meetings,
19and all other records of the time-share plan maintained by the
20association or the managing entity shall be made available for
21inspection and copying by any member, or by his or her duly
22appointed representative, at any reasonable time for a purpose
23reasonably related to membership in the association.

24(b) The records shall be made available for inspection at the
25office where the records are maintained. Upon receipt of an
26authenticated written request from a member along with the fee
27prescribed by the governing body to defray the costs of
28reproduction, the managing entity or other custodian of records of
29the association or the time-share plan shall prepare and transmit
30to the member a copy of any and all records requested.

31(c) The governing body shall establish reasonable rules with
32respect to all of the following:

33(1) Notice to be given to the managing entity or other custodian
34of the records by the member desiring to make the inspection or
35to obtain copies.

36(2) Hours and days of the week when a personal inspection of
37the records may be made.

38(3) Payment of the cost of reproducing copies of records
39requested by a member.

P5    1(d) Every governing body member shall have the absolute right
2at any time to inspect all books, records, and documents of the
3association and all real and personal properties owned and
4controlled by the association.

5(e) (1) The association shall maintain among its records a
6complete list of the names and mailing addresses of all owners of
7time-share interests in the time-share plan. The association shall
8update this list no less frequently than every six months. The
9association shall not publish this list or provide a copy of it to any
10third party, or use or sell the list for commercial purposes. The
11association shall provide a copy of the list to a member for a
12purpose reasonably related to membership in the association.
13However, notwithstanding this requirement, if the association
14reasonably believes that the recipient of the list will use the list
15for another purpose or provide a copy or disclose the contents to
16another party, the association shall refuse to provide the member
17a copy of the list.

18(2) (A) If an owner of a time-share interest in the time-share
19plan makes a request to the association to communicate by mail
20with the membership of the association for a purpose reasonably
21related to membership in the association, and the board of
22 administration of the association or the managing entity determines
23that the mailing pertains to a purpose reasonably related to
24membership in the association, the requested mailing shall be made
25within 30 days after receipt of a request and payment by the owner
26of actual costs in accordance with subparagraph (B). If the board
27or managing entity determines that the requested mailing does not
28pertain to a purpose reasonably related to membership in the
29association, the board or the managing entity shall, within 30 days
30after receipt of the request, notify the requesting owner in writing
31and shall indicate the reasons for the rejection.

32(B) The owner who requests the mailing shall pay the association
33in advance for the association’s actual costs in performing the
34mailing. The association shall make a good faith effort to minimize
35the costs of the mailing, including the use of a less expensive
36delivery method, including electronic delivery.

37(C) If the board of administration or managing entity does not
38distribute the requested communication within 30 days after receipt
39of a request from an owner and payment of actual costs, the
40superior court in the county where the time-share plan is located
P6    1may, upon application from the requesting owner, summarily order
2the distribution of the requested communication. To the extent
3possible, the superior court shall dispose of an application on an
4expedited basis. In the event the court orders the distribution of
5the requested communication, it may order the board or managing
6entity to pay the owner’s costs, including attorney’s fees reasonably
7incurred to enforce the owner’s rights, unless the board or the
8managing entity can prove it refused to distribute the
9communication in good faith because of a reasonable belief that
10the requested communication did not pertain to a purpose
11reasonably related to membership in the association.

12(D) It is unlawful for the board of administration of the
13association or managing entity to refuse to distribute a
14communication requested by an owner if the requested
15communication would address a purpose reasonably related to
16membership in the association.

17(3) Section 8330 of the Corporations Code shall not apply to
18time-share associations under this chapter.

19(f) For single site time-share plans and component sites of a
20multisite time-share plan located outside of the state, the association
21shall be subject to the provisions set forth in this section. The
22association must be in compliance with the applicable laws of the
23state or jurisdiction in which the time-share property or component
24site is located, and if a conflict exists between laws of the situs
25state and the requirements set forth in this section, the law of the
26situs state shall control. If the association and the time-share
27instruments provide for the matters contained in this section, the
28association shall be deemed to be in compliance with the
29requirements of this section and neither the developer nor the
30association shall be required to make revisions to the time-share
31instruments in order to comply with the section.

end delete


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