BILL ANALYSIS                                                                                                                                                                                                    Ķ



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          CONCURRENCE IN SENATE AMENDMENTS
          AB  
          786 (Levine)


          As Amended  September 2, 2015


          2/3 vote.  Urgency


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          |ASSEMBLY:  |      |(June 2, 2015) |SENATE: |39-0  |(September 8,    |
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          |COMMITTEE VOTE: |7-0  |(September 10,  |RECOMMENDATION:   |concur     |
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          (H. & C.D.)




          Original Committee Reference:  H. & C.D.


          SUMMARY:  Clarifies that a homeowners association (HOA) may only  
          impose a fine or assessment against a homeowner for reducing or  








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          eliminating the watering of vegetation or lawns during a drought  
          where, prior to the imposition of a fine or assessment, the  
          homeowner receives recycled water from a retail water supplier  
          and fails to use that recycled water for landscaping irrigation.  
           This bill is an urgency measure.


          The Senate amendments delete the Assembly version of this bill,  
          and instead:


          1)Clarify that an HOA may only impose a fine or assessment  
            against a homeowner for reducing or eliminating the watering  
            of vegetation or lawns during a drought where, prior to the  
            imposition of a fine or assessment, the homeowner receives  
            recycled water from a retail water supplier and fails to use  
            that recycled water for landscaping irrigation.  


          2)Define "recycled water" as water which, as a result of  
            treatment of waste, is suitable for a direct beneficial use or  
            a controlled use that would not otherwise occur and is  
            therefor considered a valuable resource.


          3)Define "retail water supplier" as any local entity, including  
            a public agency, city, county, or private water company, that  
            provides retail water service.


          4)Provide that it is an urgency measure.


          5)Include chaptering out amendments with AB 349 (Gonzalez),  
            Chapter 266, Statutes of 2015.


          FISCAL EFFECT:  None


          COMMENTS:  









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          Purpose of this bill:  According to the author, "the Department  
          of Water Resources states that irrigation for outdoor  
          landscaping can account for anywhere from an average of 25% to  
          an average of 80% of overall urban water use, depending on the  
          area.  On January 17, 2014, Governor Brown proclaimed a drought  
          state of emergency in California citing three consecutive years  
          of severe drought conditions and the impossibility of predicting  
          how long the drought could last.  The emergency drought  
          proclamation was followed on April 24, 2014, by an Executive  
          Order (2014 EO) seeking to limit outdoor watering.


          "The 2014 EO also identified an ongoing problem with HOAs that  
          were fining or threatening to fine homeowners for complying with  
          water conservation measures.  The 2014 EO declared HOA measures  
          void and unenforceable if they had the effect of prohibiting  
          compliance with the water-saving measures adopted by a public  
          agency or private water company.  But the 2014 EO did not  
          protect homeowners who voluntarily let their lawn go brown."


          The author notes that the chronic drought has continued and  
          California is now in its fourth year.  On April 1, 2015, the  
          Governor followed up on the 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.


          To further implement these restrictions, Governor Brown signed  
          AB 1 (Brown), Chapter 62, on July 13, 2015.  The author states  
          that "AB 1 prohibits cities and counties from imposing fines on  
          homeowners for failing to water a lawn or having a brown lawn  
          during any period for which the Governor has declared a drought  
          state of emergency.  But AB 1 does not address HOAs.  Civil Code  
          Section 4735 prohibits HOAs from fining homeowners for letting  
          their lawns go brown.  But Section 4735 allows HOAs that are  








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          using recycled water to fine homeowners.  Some HOAs have  
          interpreted this to mean that if the HOA itself is using some  
          recycled water on common areas then it can continue to fine  
          homeowners that let their lawns go 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.  This bill will close a loophole by  
          restricting the ability for HOAs to impose a fine on a homeowner  
          only in circumstances in which, prior to the imposition of a  
          fine or assessment, the owner of a separate interest receives  
          recycled water from a retail water supplier and fails to use  
          that recycled water for landscaping irrigation.  


          Arguments in support:  Supporters, including water districts and  
          agencies, argue that California is experiencing unprecedented  
          drought conditions and that homeowners need clarity regarding  
          what measures they may take to reduce outdoor water use without  
          risk of fines from their HOAs.  Supporters contend that this  
          bill is a sensible effort that closes a gap in law that some  
          HOAs have been taking advantage of in order to fine residents  
          that have allowed their lawns to go brown if recycled water is  
          used on common areas.  


          Arguments in opposition:  This bill also contains the same  
          provisions contained within AB 349 (Gonzalez), Chapter 266,  
          Statutes of 2015, which was signed by the Governor on September  
          4, 2015. This language was included to avoid chaptering issues  
          if both this bill and AB 349 are signed by the Governor.  AB 349  
          prohibits an HOA from preventing a homeowner from installing  
          artificial turf or synthetic grass.  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.   
          The Educational Community for Homeowners (ECHO) does not oppose  
          the provisions in the bill relating to recycled water.  ECHO  
          opposes the AB 349 (Gonzalez) chaptering out provisions that are  
          incorporated into this bill, however, because they are concerned  








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          about a number of health and environmental issues related to the  
          installation and use of synthetic turf.


          This bill was substantially amended in the Senate and the  
          Assembly-approved version of this bill was deleted.  


          Related legislation:  


          AB 349 (Gonzalez), Chapter 266, Statutes of 2015:  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.  Prohibits a requirement that an  
          owner of a separate interest remove or reverse water-efficient  
          landscaping measures, installed in response to a declaration of  
          a state of emergency, upon the conclusion of the state of  
          emergency.  AB 349 was signed by the Governor on September 4,  
          2015. 


          SB 759 (Lieu) of 2011:  Would have voided, or made  
          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.  SB 759 was vetoed by the  
          Governor.  


          AB 1793 (Saldaņa) of 2010:  Would have voided, or made  
          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.  AB 1793 was vetoed by the  
          Governor.  


          Analysis Prepared by:                                             
                          Rebecca Rabovsky / H. & C.D. / (916) 319-2085     
                                                                  FN:  








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