BILL NUMBER: SB 853 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 29, 2005
INTRODUCED BY Senator Kehoe
FEBRUARY 22, 2005
An act to amend Sections 945, 1363, 1374, and 1378 of the Civil
Code, relating to common interest developments.
LEGISLATIVE COUNSEL'S DIGEST
SB 853, as amended, Kehoe. Common interest developments.
(1) The Davis-Stirling Common Interest Development Act defines and
regulates common interest developments. Existing law requires that
when 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 provisions. Among these provisions
is a requirement that a decision on a proposed change be consistent
with any governing provision of law, including the Fair Employment
and Housing Act.
This bill would specify that the requirement that a decision on a
proposed change be consistent with any governing provision of law,
described above, is not affected by contrary provisions in the
association governing documents. The bill would also provide other
examples of law with which a decision of the association must be
consistent , and would make a conforming change
.
(2) Existing law provides that a common interest development
association has standing to institute, defend, settle, or intervene
in specified civil proceedings in its own name, and addresses the
reduction of damages for comparative fault in this context.
This bill would delete erroneous cross references and make
nonsubstantive, technical changes in reference to these provisions.
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 945 of the Civil Code is amended to read:
945. The provisions, standards, rights, and obligations set forth
in this title are binding upon all original purchasers and their
successors-in-interest. For purposes of this title, associations and
others having the rights set forth in Sections 1368.3 and 1368.4
shall be considered to be original purchasers and shall have standing
to enforce the provisions, standards, rights, and obligations set
forth in this title.
SEC. 2. Section 1363 of the Civil Code is amended to read:
1363. (a) A common interest development shall be managed by an
association that 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 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, including accounting books and records and membership lists,
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. The members of the association shall have the same access to
the operating rules of the association as they have to the accounting
books and records of the association.
(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.
(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 10
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. The board of directors of the association shall
meet in executive session if requested by the member being
disciplined.
If the board imposes discipline on a member, the board shall
provide the member a written notification of the disciplinary action,
by either personal delivery or first-class mail, within 15 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 (1)
entitled to attend all meetings of the joint association other than
executive sessions, (2) given reasonable opportunity for
participation in those meetings, and (3) 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. 3. Section 1374 of the Civil Code is amended to read:
1374. Nothing in this title may be construed to apply to a
development wherein there does not exist a common area as defined in
subdivision (b) of Section 1351.
This section is declaratory of existing law.
SEC. 4. Section 1378 of the Civil Code is amended 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. The procedure
shall provide for prompt deadlines. The procedure shall state the
maximum time for response to an application or a request for
reconsideration by the board of directors.
(2) A decision on a proposed change shall be made in good faith
and may not be unreasonable, arbitrary, or capricious.
(3) Notwithstanding a contrary provision of the governing
documents, a decision on a proposed change shall be consistent with
any governing provision of law, including, but not limited to, the
Fair Employment and Housing Act (Part 2.8 (commencing with Section
12900) of Division 3 of Title 2 of the Government Code), or a
building code or other applicable law governing land use or public
safety.
(4) 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.
(5) 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 or a body that has the same membership as the
board of directors, at a meeting that satisfies the requirements of
Section 1363.05. Reconsideration by the board does not constitute
dispute resolution within the meaning of Section 1363.820.
(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 , unless the
change is required by law.
(c) An association shall annually provide its members with notice
of any requirements for association approval of physical changes to
property. The notice shall describe the types of changes that require
association approval and shall include a copy of the procedure used
to review and approve or disapprove a proposed change.
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