Amended  IN  Senate  April 08, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 981

Introduced by Senator Archuleta

February 11, 2020

An act to amend Section 4041 of Sections 4041, 4045, 4055, 5260, 5310, and 5320 of, to amend, add, and repeal Section 4040 of, and to add Section 4801 to, the Civil Code, relating to common interest developments.


LEGISLATIVE COUNSEL'S DIGEST


SB 981, as amended, Archuleta. Common interest developments: annual notices. developments: document delivery.
Existing law law, the Davis-Stirling Common Interest Development Act, requires the owner of a separate interest in a common interest development to provide an annual written notice to the association managing the common interest development with specified information. Existing law requires the association to solicit this annual notice from each owner and enter the data into its books and records. an association to deliver documents to members of a common interest development, if those documents are required to be delivered by individual delivery or notice, by either first-class mail, postage prepaid, registered or certified mail, express mail, or overnight delivery by an express service carrier or by email, facsimile, or other electronic means, if the recipient has consented, in writing or by email, to receive documents by that electronic means.
This bill would make nonsubstantive changes to this provision. instead require, on and after January 1, 2022, an association to deliver those documents by email unless the member has not provided a valid email address to the association or has revoked consent to receiving documents by email, in which case the association would be required to deliver the documents by traditional mail, as described above. The bill would require an association to annually notify each member that by providing an email address to the association, the member agrees that communication between the member and the association shall be conducted by email. The bill would also require an association to make a good faith effort to obtain an email address for each member on or before June 1, 2021. The bill would require an association to deliver those documents either by email or traditional mail, at its discretion, if 2/3 of the members approve.
The act also requires an association to deliver documents to members, if those documents are required to be delivered by general delivery or notice by specified means.
This bill would require an association that manages a common interest development of at least 50 separate interests to maintain an internet website to provide general information to members and would authorize an association to satisfy the general delivery requirement described above by posting the document on that internet website. The bill would exempt an association from the requirement to maintain an internet website if 2/3 of the members approve.
This bill would also make conforming and nonsubstantive changes.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 4040 of the Civil Code is amended to read:

4040.
 (a) If a provision of this act requires that an association deliver a document by “individual delivery” or “individual notice,” the document shall be delivered by one of the following methods:
(1) First-class mail, postage prepaid, registered or certified mail, express mail, or overnight delivery by an express service carrier. The document shall be addressed to the recipient at the address last shown on the books of the association.
(2) (A) Email, facsimile, or other electronic means, if the recipient has consented, in writing or by email, to that method of delivery. The consent may be revoked, in writing or by email, by the recipient.
(B) On or before June 1, 2021, an association shall make a good faith effort to obtain an email address for each member.
(b) Upon receipt of a request by a member, pursuant to Section 5260, identifying a secondary email or mailing address for delivery of notices of the following types, the association shall deliver an additional copy of those notices to the secondary address identified in the request:
(1) The documents to be delivered to the member pursuant to Article 7 (commencing with Section 5300) of Chapter 6.
(2) The documents to be delivered to the member pursuant to Article 2 (commencing with Section 5650) of Chapter 8, and Section 5710.
(c) For the purposes of this section, an unrecorded provision of the governing documents providing for a particular method of delivery does not constitute agreement by a member to that method of delivery.
(d) This section shall remain in effect only until January 1, 2022, and as of that date is repealed.

SEC. 2.

 Section 4040 is added to the Civil Code, to read:

4040.
 (a) Subject to subdivisions (b) and (d), if a provision of this act requires an association to deliver a document by “individual delivery” or “individual notice,” the association shall deliver that document by email.
(b) If a provision of this act requires an association to deliver a document by “individual delivery” or “individual notice,” an association shall, instead of complying with paragraph (1) of subdivision (a), deliver the document by first-class mail, registered or certified mail, express mail, or overnight delivery by an express service carrier if either of the following is true:
(1) The member has not provided a valid email address to the association.
(2) The member has revoked the member’s consent to receiving documents by email.
(c) Upon receipt of a request by a member, pursuant to Section 5260, identifying a secondary email or mailing address for delivery of notices of the following types, the association shall deliver an additional copy of those notices to the secondary address identified in the request:
(1) The documents to be delivered to the member pursuant to Article 7 (commencing with Section 5300) of Chapter 6.
(2) The documents to be delivered to the member pursuant to Article 2 (commencing with Section 5650) of Chapter 8, and Section 5710.
(d) If two-thirds of the members approve, an association shall deliver a document subject to this section by any means described in subdivision (a) or (b), at its discretion.
(e) This section shall become operative on January 1, 2022.

SECTION 1.SEC. 3.

 Section 4041 of the Civil Code is amended to read:

4041.
 (a) An owner of a separate interest A member shall, on an annual basis, provide written notice to the association of all of the following:
(1) The email or mailing address or addresses to which notices from the association are to be delivered.
(2) An alternate or secondary email or mailing address to which notices from the association are to be delivered.
(3) The name and email or mailing address of the owner’s legal representative, if any, including any person with power of attorney or other person who can be contacted in the event of the owner’s member’s extended absence from the separate interest.
(4) Whether the separate interest is owner-occupied, is rented out, if the parcel is developed but vacant, or if the parcel is undeveloped land.
(b) (1) The association shall solicit the annual notices described in subdivision (a) of each owner member and, at least 30 days before making its own required disclosure under Section 5300, shall enter the data into its books and records.
(2) The association shall annually notify each member that by providing an email address to the association, the member agrees that communication between the member and the association shall be conducted by email.
(c) If an owner a member fails to provide the notices set forth in paragraphs (1) and (2) of subdivision (a), the last email or mailing address provided in writing by the owner member or, if none, the property address shall be deemed to be the address to which notices are to be delivered.
(d) (1) To the extent that interests regulated in Chapter 2 (commencing with Section 11210) of Part 2 of Division 4 of the Business and Professions Code are part of a mixed-use project where those interests comprise a portion of a common interest development, the association, as defined in Section 4040, 4080, shall be deemed compliant with this section if, at least once annually, it obtains from the time-share plan association a copy of the list described in subdivision (e) of Section 11273 of the Business and Professions Code, and enters the data into its books and records.

Notwithstanding

(2) Notwithstanding subdivision (e) of Section 11273 of the Business and Professions Code, the time-share plan association shall provide the list required by paragraph (1) to the association at least annually for this purpose.

SEC. 4.

 Section 4045 of the Civil Code is amended to read:

4045.
 (a) If a provision of this act requires “general delivery” or “general notice,” the document shall be provided by one or more of the following methods:
(1) Any A method provided for delivery of an individual notice pursuant to Section 4040.
(2) Inclusion in a billing statement, newsletter, or other document that is delivered by one of the methods provided in this section.
(3) Posting the printed document in a prominent location that is accessible to all members, if the location has been designated for the posting of general notices by the association in the annual policy statement, prepared pursuant to Section 5310.
(4) If the association broadcasts television programming for the purpose of distributing information on association business to its members, by inclusion in the programming.
(5) Posting the document on an internet website maintained pursuant to Section 4801.
(b) Notwithstanding subdivision (a), if a member requests to receive general notices by individual delivery, all general notices to that member, given under this section, shall be delivered pursuant to Section 4040. The option provided in this subdivision shall be described in the annual policy statement, prepared pursuant to Section 5310.

SEC. 5.

 Section 4055 of the Civil Code is amended to read:

4055.
 If the association or a member has consented to receive receives information by electronic delivery, delivery pursuant to Section 4040 and a provision of this act requires that the information be in writing, that requirement is satisfied if the information is provided in an electronic record capable of retention by the recipient at the time of receipt. An electronic record is not capable of retention by the recipient if the sender or its information processing system inhibits the ability of the recipient to print or store the electronic record.

SEC. 6.

 Section 4801 is added to the Civil Code, to read:

4801.
 (a) (1) Subject to subdivision (b), an association shall maintain an internet website to provide general information to its membership if the common interest development it manages consists of 50 or more separate interests.
(2) The internet website required by this subdivision shall be maintained by a person designated by the association, including, but not limited to, any of the following:
(A) A volunteer member of the association.
(B) A real estate licensee, as defined in Section 10014 of the Business and Professions Code.
(C) A person contracted by the association to provide association management services, as defined in Section 11500 of the Business and Professions Code.
(b) An association may choose not to comply with subdivision (a) if that noncompliance is approved by two-thirds of the members.

SEC. 7.

 Section 5260 of the Civil Code is amended to read:

5260.
 To be effective, any of the following requests shall be delivered in writing to the association, pursuant to Section 4035:
(a) A request to change the member’s information in the association membership list.
(b) A request to add or remove a second email or mailing address for delivery of individual notices to the member, pursuant to subdivision (b) of Section 4040.
(c) A request for individual delivery of general notices to the member, pursuant to subdivision (b) of Section 4045, or a request to cancel a prior request for individual delivery of general notices.
(d) A request to opt out of the membership list pursuant to Section 5220, or a request to cancel a prior request to opt out of the membership list.
(e) A request to receive a full copy of a specified annual budget report or annual policy statement pursuant to Section 5320.
(f) A request to receive all reports in full, pursuant to subdivision (b) of Section 5320, or a request to cancel a prior request to receive all reports in full.

SEC. 8.

 Section 5310 of the Civil Code is amended to read:

5310.
 (a) Within 30 to 90 days before the end of its fiscal year, the board shall distribute an annual policy statement that provides the members with information about association policies. The annual policy statement shall include all of the following information:
(1) The name and address of the person designated to receive official communications to the association, pursuant to Section 4035.
(2) A statement explaining that a member may submit a request to have notices sent to up to two different specified addresses, pursuant to subdivision (b) of Section 4040.
(3) The location, if any, designated for posting of a general notice, pursuant to paragraph (3) of subdivision (a) of Section 4045.
(4) Notice of a member’s option to receive general notices by individual delivery, pursuant to subdivision (b) of Section 4045.
(5) Notice of a member’s right to receive copies of meeting minutes, pursuant to subdivision (b) of Section 4950.
(6) The statement of assessment collection policies required by Section 5730.
(7) A statement describing the association’s policies and practices in enforcing lien rights or other legal remedies for default in the payment of assessments.
(8) A statement describing the association’s discipline policy, if any, including any schedule of penalties for violations of the governing documents pursuant to Section 5850.
(9) A summary of dispute resolution procedures, pursuant to Sections 5920 and 5965.
(10) A summary of any requirements for association approval of a physical change to property, pursuant to Section 4765.
(11) The mailing address for overnight payment of assessments, pursuant to Section 5655.
(12) Any other information that is required by law or the governing documents or that the board determines to be appropriate for inclusion.
(b) The annual policy statement shall be made available to the members pursuant to Section 5320.

SEC. 9.

 Section 5320 of the Civil Code is amended to read:

5320.
 (a) When a report is prepared pursuant to Section 5300 or 5310, the association shall deliver one of the following documents to all members, members by individual delivery pursuant to Section 4040:
(1) The full report.
(2) A summary of the report. The summary shall include report that includes, on the first page, a general description of the content of the report. Instructions on how to request a complete copy of the report at no cost to the member shall be printed in at least 10-point boldface type on the first page of the summary. report and instructions, printed in at least 10-point boldface type, regarding how to request a complete copy of the report at no cost to the member.
(b) Notwithstanding subdivision (a), if a member has requested to receive all reports in full, the association shall deliver the full report to that member, rather than a summary of the report.