BILL NUMBER:  AB 1328
  VETOED	DATE: 10/12/2009




To the Members of the California State Assembly:

I am returning Assembly Bill 1328 without my signature.

This bill would allow a homeowners association (HOA) of a common
interest development (CID) to enter into a contract of up to five
years for water or energy efficiency programs under specified
conditions.

This bill is unnecessary.  Existing law limits a HOA's capacity to
enter into multi-year contracts for various types of services,
instead requiring a vote of the membership to enter into contracts of
more than one year.  This bill would override this important veto
requirement, weakening the system of self governance that is central
to the operations of CIDs and could result in contracts that do not
reflect the approval of a majority of the members of the HOA.
Further, if this bill is enacted, it could potentially expose CID
members to long-term negative consequences brought about by board
mistakes.

For these reasons I am unable to sign this bill.

Sincerely,



Arnold Schwarzenegger