BILL NUMBER: AB 1823	CHAPTERED  08/28/00

	CHAPTER   257
	FILED WITH SECRETARY OF STATE   AUGUST 28, 2000
	APPROVED BY GOVERNOR   AUGUST 25, 2000
	PASSED THE ASSEMBLY   AUGUST 18, 2000
	PASSED THE SENATE   AUGUST 10, 2000
	AMENDED IN SENATE   JUNE 29, 2000
	AMENDED IN SENATE   JUNE 13, 2000
	AMENDED IN ASSEMBLY   MAY 1, 2000
	AMENDED IN ASSEMBLY   MARCH 28, 2000

INTRODUCED BY   Assembly Member Dutra

                        FEBRUARY 3, 2000

   An act to amend Sections 1363 and 1368 of the Civil Code, relating
to common interest developments.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1823, Dutra.  Common interest developments:  disciplinary
actions.
   Existing law defines and regulates common interest developments
providing, among other things, that these developments shall be
managed by an association.  Existing law requires that an association
that has adopted a policy of imposing monetary penalties shall adopt
a schedule of these penalties and distribute them to members, as
specified, and that a member being disciplined may request that the
board of directors of the association meet in executive session and
that the member is entitled to attend this meeting.
   This bill would require the association's board of directors to
provide specified notification to a member of a board meeting to
consider or impose discipline upon that member, and of a disciplinary
action taken against the member.  The bill would further provide
that no disciplinary action is effective unless these notification
requirements are met.
   Existing law provides that an owner of a separate interest in a
common interest development must provide certain items to a
prospective purchaser prior to transfer of title including, among
other things, a statement in writing from an authorized
representative of the association as to any assessments levied
against the owner's interest that are unpaid as of the date of the
statement.
   This bill would additionally require that the statement include
any fines or penalties levied upon the owner's interest and unpaid on
the date of the statement and a copy or a summary of any notice sent
to the owner regarding any unresolved violation of the association's
governing documents, as specified.  This bill would also provide
that the notice shall not be deemed a waiver of the association's
right to enforce the governing documents with respect to the separate
interest, as specified, and that the provisions regarding the notice
do not require the association to inspect an owner's separate
interest.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1363 of the Civil Code is amended to read:
   1363.  (a) A common interest development shall be managed by an
association which may be incorporated or unincorporated.  The
association may be referred to as a community association.
   (b) An association, whether incorporated or unincorporated, shall
prepare a budget pursuant to Section 1365 and disclose information,
if requested, in accordance with Section 1368.
   (c) Unless the governing documents provide otherwise, and
regardless of whether the association is incorporated or
unincorporated, the association may exercise the powers granted to a
nonprofit mutual benefit corporation, as enumerated in Section 7140
of the Corporations Code, except that an unincorporated association
may not adopt or use a corporate seal or issue membership
certificates in accordance with Section 7313 of the Corporations
Code.
   The association, whether incorporated or unincorporated, may
exercise the powers granted to an association by Section 383 of the
Code of Civil Procedure and the powers granted to the association in
this title.
   (d) Meetings of the membership of the association shall be
conducted in accordance with a recognized system of parliamentary
procedure or any parliamentary procedures the association may adopt.

   (e) Notwithstanding any other provision of law, notice of meetings
of the members shall specify those matters the board intends to
present for action by the members, but, except as otherwise provided
by law, any proper matter may be presented at the meeting for action.

   (f) Members of the association shall have access to association
records in accordance with Article 3 (commencing with Section 8330)
of Chapter 13 of Part 3 of Division 2 of Title 1 of the Corporations
Code.
   (g) If an association adopts or has adopted a policy imposing any
monetary penalty, including any fee, on any association member for a
violation of the governing documents or rules of the association,
including any monetary penalty relating to the activities of a guest
or invitee of a member, the board of directors shall adopt and
distribute to each member, by personal delivery or first-class mail,
a schedule of the monetary penalties that may be assessed for those
violations, which shall be in accordance with authorization for
member discipline contained in the governing documents.  The board of
directors shall not be required to distribute any additional
schedules of monetary penalties unless there are changes from the
schedule that was adopted and distributed to the members pursuant to
this subdivision.  The board of directors of the association shall
meet in executive session if requested by the member being
disciplined, and the member shall be entitled to attend the executive
session.
   (h) When the board of directors is to meet to consider or impose
discipline upon a member, the board shall notify the member in
writing, by either personal delivery or first-class mail, at least 15
days prior to the meeting.  The notification shall contain, at a
minimum, the date, time and place of the meeting, the nature of the
alleged violation for which a member may be disciplined, and a
statement that the member has a right to attend and may address the
board at the meeting.  If the board imposes discipline on a member,
the board shall provide a notification of the disciplinary action by
either personal delivery or first-class mail to the member within 10
days following the action.  A disciplinary action shall not be
effective against a member unless the board fulfills the requirements
of this subdivision.
   (i) Whenever two or more associations have consolidated any of
their functions under a joint neighborhood association or similar
organization, members of each participating association shall be
entitled to attend all meetings of the joint association other than
executive sessions, (1) shall be given reasonable opportunity for
participation in those meetings and (2) shall be entitled to the same
access to the joint association's records as they are to the
participating association's records.
   (j) Nothing in this section shall be construed to create, expand,
or reduce the authority of the board of directors of an association
to impose monetary penalties on an association member for a violation
of the governing documents or rules of the association.
  SEC. 2.  Section 1368 of the Civil Code is amended to read:
   1368.  (a) The owner of a separate interest, other than an owner
subject to the requirements of Section 11018.6 of the Business and
Professions Code, shall, as soon as practicable before transfer of
title to the separate interest or execution of a real property sales
contract therefor, as defined in Section 2985, provide the following
to the prospective purchaser:
   (1) A copy of the governing documents of the common interest
development.
   (2) If there is a restriction in the governing documents limiting
the occupancy, residency, or use of a separate interest on the basis
of age in a manner different from that provided in Section 51.3, a
statement that the restriction is only enforceable to the extent
permitted by Section 51.3 and a statement specifying the applicable
provisions of Section 51.3.
   (3) A copy of the most recent documents distributed pursuant to
Section 1365.
   (4) A true statement in writing obtained from an authorized
representative of the association as to the amount of the association'
s current regular and special assessments and fees, any assessments
levied upon the owner's interest in the common interest development
that are unpaid on the date of the statement, and any monetary fines
or penalties levied upon the owner's interest and unpaid on the date
of the statement.  The statement obtained from an authorized
representative shall also include true information on late charges,
interest, and costs of collection which, as of the date of the
statement, are or may be made a lien upon the owner's interest in a
common interest development pursuant to Section 1367.
   (5) A copy or a summary of any notice previously sent to the owner
pursuant to subdivision (h) of Section 1363 that sets forth any
alleged violation of the governing documents that remains unresolved
at the time of the request.  The notice shall not be deemed a waiver
of the association's right to enforce the governing documents against
the owner or the prospective purchaser of the separate interest with
respect to any violation.  This paragraph shall not be construed to
require an association to inspect an owner's separate interest.
   (6) A copy of the preliminary list of defects provided to each
member of the association pursuant to Section 1375, unless the
association and the builder subsequently enter into a settlement
agreement or otherwise resolve the matter and the association
complies with Section 1375.1.  Disclosure of the preliminary list of
defects pursuant to this paragraph shall not waive any privilege
attached to the document.  The preliminary list of defects shall also
include a statement that a final determination as to whether the
list of defects is accurate and complete has not been made.
   (7) A copy of the latest information provided for in Section
1375.1.
   (8) Any change in the association's current regular and special
assessments and fees which have been approved by the association's
board of directors, but have not become due and payable as of the
date disclosure is provided pursuant to this subdivision.
   (b) Upon written request, an association shall, within 10 days of
the mailing or delivery of the request, provide the owner of a
separate interest with a copy of the requested items specified in
paragraphs (1) to (8), inclusive, of subdivision (a).  The
association may charge a fee for this service, which shall not exceed
the association's reasonable cost to prepare and reproduce the
requested items.
   (c) An association shall not impose or collect any assessment,
penalty, or fee in connection with a transfer of title or any other
interest except the association's actual costs to change its records
and that authorized by subdivision (b).
   (d) Any person or entity who willfully violates this section shall
be liable to the purchaser of a separate interest which is subject
to this section for actual damages occasioned thereby and, in
addition, shall pay a civil penalty in an amount not to exceed five
hundred dollars ($500).  In an action to enforce this liability, the
prevailing party shall be awarded reasonable attorneys' fees.
   (e) Nothing in this section affects the validity of title to real
property transferred in violation of this section.
   (f) In addition to the requirements of this section, an owner
transferring title to a separate interest shall comply with
applicable requirements of Sections 1133 and 1134.