BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        AB 786|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                   THIRD READING 


          Bill No:  AB 786
          Author:   Levine (D)
          Amended:  9/2/15 in Senate
          Vote:     27 - Urgency

           SENATE TRANS. & HOUSING COMMITTEE:  9-0, 8/25/15
           AYES:  Beall, Cannella, Allen, Bates, Galgiani, Leyva, McGuire,  
            Mendoza, Roth
           NO VOTE RECORDED:  Gaines, Wieckowski

           ASSEMBLY FLOOR:  Not relevant

           SUBJECT:   Common interest developments:  property use and  
                     maintenance


          SOURCE:    Author

          DIGEST:   This bill permits a homeowners association (HOA) to  
          impose a fine or assessment on an owner of a separate interest  
          in an HOA if the owner, prior to the imposition of a fine or  
          assessment, receives recycled water from a retail water supplier  
          and fails to use recycled water for landscaping irrigation.

          Senate Floor Amendments of 9/2/15 clarify that the imposition of  
          the fine results from the receipt of recycled water from a  
          retail water supplier prior to the imposition of the fine.

          ANALYSIS: 
          
          Existing law:

          1)Requires local agencies to adopt water-efficient landscape  








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            ordinances, as specified.  

          2)Establishes rules and regulations governing the operation of  
            common interest developments (CIDs) and the respective rights  
            and duties of HOAs and their members.  

          3)Permits the governing board of an HOA to adopt operating rules  
            that apply generally to the management and operation of the  
            CID or the conduct of the business and affairs of the HOA,  
            provided that the rule is within the authority of the board to  
            make, does not conflict with the HOA's articles, bylaws, or  
            governing law, and is reasonable.  

          4)Limits the authority of an HOA or the governing documents of a  
            CID to regulate the use of a member's separate interest.  

          5)Renders void and unenforceable any provision of the governing  
            documents or architectural or landscaping guidelines or  
            policies of an HOA that does any of the following:

             a)   Prohibits, or includes conditions that have the effect  
               of prohibiting, the use of low-water-using plants as a  
               group or as a replacement of existing turf; or

             b)   Has the effect of prohibiting or restricting compliance  
               with a water-efficient landscape ordinance or regulation or  
               restriction on the use of water.  

          1)Provides that an HOA may apply landscaping rules established  
            in its governing documents that do not conflict with other  
            law, as specified.  

          2)Prohibits an HOA from imposing a fine or assessment against an  
            owner of a separate interest for reducing or eliminating the  
            watering of vegetation or lawns during any period for which  
            the Governor has declared a state of emergency due to drought  
            or a local government has declared a local emergency due to  
            drought.

          This bill:

          1)Permits an HOA to impose a fine or assessment on an owner of a  
            separate interest in an HOA if the owner, prior to the  
            imposition of a fine or assessment, receives recycled water  







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            from a retail water supplier and fails to use recycled water  
            for landscaping irrigation. 

          2)Voids, or makes unenforceable, any provision of a CID  
            governing document or architectural or landscaping guidelines  
            or policies that prohibit the use of artificial turf or any  
            other synthetic surface that resembles grass.

          3)Prohibits a CID from requiring a homeowner to reverse or  
            remove water-efficient landscaping measures upon the  
            conclusion of a state of emergency due to drought that were  
            installed during that state of emergency.

          Comments
          
          Purpose.  According to the author, the chronic drought has  
          continued and California is now in its fourth year.  On April 1,  
          2015, the Governor followed up on a proclamation of a drought  
          state of emergency with Executive Order B-29-15.  Among the  
          provisions of the Executive Order was directive No. 2, stating  
          that the State Water Resources Control Board shall impose  
          restrictions upon water suppliers to achieve a statewide 25%  
          reduction in potable urban water usage through February 28,  
          2016.  Restrictions in the amount of potable water used for  
          outdoor landscaping are the primary tool.

          Despite these directives, the author asserts that some HOAs are  
          interpreting language in existing law to allow them to fine  
          homeowners for restricting the watering of outdoor landscaping.   
          Those HOAs are stating that if they (the HOA) use recycled water  
          on some part of the common areas, the HOA may fine homeowners  
          who refuse to use potable water upon their outdoor landscaping  
          and thus let the lawn turn brown.  The author believes that  
          homeowners who voluntarily seek to aid the emergency drought  
          situation should not be penalized by HOAs using the recycled  
          water loophole in an attempt to maintain lush lawns during a  
          drought.  

          Artificial turf provisions.  This bill also contains the same  
          provisions contained within AB 349 (Gonzalez), which was heard  
          in the Senate Transportation and Housing Committee on June 24,  
          2015.  This language was included to avoid chaptering issues if  
          both this bill and AB 349 were signed by the Governor.   
          Therefore, this bill prohibits an HOA from preventing a  







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          homeowner from installing artificial turf or synthetic grass.   
          Existing law allows an HOA to apply landscaping rules that are  
          included in the governing documents, so long as those rules do  
          not prohibit or have the effect of prohibiting the use of  
          low-water-using plants or prevent a homeowner from complying  
          with a local water-efficient landscaping ordinance.  This bill  
          extends those protections to artificial turf or grass.  This  
          means an HOA may establish reasonable restrictions about the  
          type of artificial grass that a homeowner may use so long as  
          those restrictions do not, in effect, prevent a homeowner from  
          installing artificial grass.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:NoLocal:    No


          SUPPORT:   (Verified9/2/15)


          Association of California Water Agencies
          California Association of Sanitation Agencies
          California Forward Action Fund
          California Municipal Utilities Association
          Eastern Municipal Water District 
          Irvine Ranch Water District
          San Diego County Water Authority
          Santa Margarita Water District
          WaterReuse California
          Western Municipal Water District


          OPPOSITION:   (Verified9/2/15)


          Educational Community for Homeowners 


          ARGUMENTS IN SUPPORT:     According to the Irvine Ranch Water  
          District, this district is an example of a water agency  
          struggling to meet the drought emergency by limiting outdoor  
          landscaping.  A homeowner in an HOA that receives water from  
          that district informed the district that he would be fined by  
          the HOA if he were to let his lawn go brown.  That HOA  
          interpreted existing law as allowing them to fine homeowners for  







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          non-watering if the HOA is using recycled water in common areas.  
           This bill will restrict the ability for HOAs to impose a fine  
          on a homeowner only in circumstances in which recycled water is  
          used by both the HOA and the homeowner in common areas and in  
          homes.

          ARGUMENTS IN OPPOSITION:The Educational Community for Homeowners  
          (ECHO) does not oppose the provisions in this bill related to  
          the use of recycled water.

          ECHO opposes the provisions that were contained with AB 349  
          (Gonzalez) that are incorporated into this bill, however,  
          because decisions made regarding landscaping in CIDs are, and  
          should continue to be, made by the community and its elected  
          board of directors.  ECHO therefore resists attempts by the  
          state to legislate a "one-size-fits-all" approach to CID  
          governance.  ECHO also raises environmental and public health  
          concerns related to the installation of artificial turf,  
          including the possible unknown health impacts that could be  
          caused by synthetic turf.

           
          Prepared by:Alison Dinmore / T. & H. / (916) 651-4121,  Erin  
          Riches / T. & H. / (916) 651-4121
          9/3/15 14:31:33


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