BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 786| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 AB 786 Page 2 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 AB 786 Page 3 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 AB 786 Page 4 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 AB 786 Page 5 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 **** END ****