BILL NUMBER: AB 2376	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Bates

                        FEBRUARY 19, 2004

   An act to amend Section 1373 of, and to add Section 1378 to, the
Civil Code, relating to common interest developments.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2376, as introduced, Bates.  Common interest developments:
architectural review.
   The Davis-Stirling Common Interest Development Act defines and
regulates common interest developments.  The act requires that a
common interest development have a recorded declaration, and the act
defines governing documents as the declaration, and any other
documents, such as the bylaws, operating rules, and articles of
incorporation, which govern the operation of the development.  The
governing documents may regulate the physical features of the
development.  Existing law exempts common interest developments that
are limited to industrial or commercial uses, as specified, from the
application of certain provisions of the act.
   This bill would revise the definition of a common interest
development that is limited to industrial or commercial use for
purposes of exempting that development from certain provisions of the
act.
   The bill would provide that, if a common interest development
association's governing documents require association approval before
an owner may make a physical change to the owner's separate interest
or to the common area, the association must satisfy specified
requirements in reviewing a proposed change, including providing a
fair, reasonable, and expeditious procedure for making its decision,
as specified, and making a decision on a proposed change in writing.
The bill would provide that an applicant whose proposal is denied is
entitled to reconsideration at an open meeting of the board of
directors of the association, except as specified.  The bill would
provide that its provisions do not authorize a change to the common
area that is inconsistent with the association's governing documents
or governing law.  The provisions of the bill would not apply to
common interest developments that are limited to industrial or
commercial uses, as specified.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  no.
State-mandated local program:  no.


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


  SECTION 1.  Section 1373 of the Civil Code is amended to read:
   1373.  (a) The following provisions do not apply to a common
interest development  that is limited to industrial or
commercial uses by zoning or by its declaration   in
which lots or other interests are limited to industrial or commercial
uses by zoning or are limited to industrial or commercial uses by a
declaration of covenants, conditions, and restrictions that has been
recorded in the official records of each county in which the common
interest development is located  :
   (1) Section 1356.
   (2) Article 4 (commencing with Section 1357.100) of Chapter 2 of
Title 6 of Part 4 of Division 2.
   (3) Subdivision (b) of Section 1363.
   (4) Section 1365.
   (5) Section 1365.5.
   (6) Subdivision (b) of Section 1366.
   (7) Section 1366.1.
   (8) Section 1368.  
   (9) Section 1378. 
   (b) The Legislature finds that the provisions listed in
subdivision (a) are appropriate to protect purchasers in residential
common interest developments, however, the provisions may not be
necessary to protect purchasers in commercial or industrial
developments since the application of those provisions could result
in unnecessary burdens and costs for these types of developments.
  SEC. 2.  Section 1378 is added to the Civil Code, to read:
   1378.  (a) This section applies if an association's governing
documents require association approval before an owner of a separate
interest may make a physical change to the owner's separate interest
or to the common area.  In reviewing and approving or disapproving a
proposed change, the association shall satisfy the following
requirements:
   (1) The association shall provide a fair, reasonable, and
expeditious procedure for making its decision.  The procedure shall
be included in the association's governing documents.
   (2) A decision on a proposed change shall be made in good faith
and may not be unreasonable, arbitrary, or capricious.
   (3) A decision on a proposed change shall be in writing.  If a
proposed change is disapproved, the written decision shall include
both an explanation of why the proposed change is disapproved and a
description of the procedure for reconsideration of the decision by
the board of directors.
   (4) If a proposed change is disapproved, the applicant is entitled
to reconsideration by the board of directors of the association that
made the decision, at an open meeting of the board.  This paragraph
does not require reconsideration of a decision that is made by the
board of directors at an open meeting of the board.
   (b) Nothing in this section authorizes a physical change to the
common area in a manner that is inconsistent with an association's
governing documents or governing law.