BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1525| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1525 Author: Longville (D) Amended: 8/29/03 in Senate Vote: 21 SENATE HOUSING & COMM. DEV. COMMITTEE : 5-3, 6/30/03 AYES: Ducheny, Alarcon, Cedillo, Dunn, Torlakson NOES: Hollingsworth, Ackerman, Florez SENATE JUDICIARY COMMITTEE : 5-0, 8/19/03 AYES: Escutia, Cedillo, Ducheny, Kuehl, Sher NO VOTE RECORDED: Morrow, Ackerman ASSEMBLY FLOOR : 57-12, 5/27/03 - See last page for vote SUBJECT : Common interest developments: signs SOURCE : American Civil Liberties Union DIGEST : This bill forbids the governing documents of a common interest development (CIDs) from prohibiting the posting or displaying of non-commercial signs on or in a homeowner's separate interest, as specified. Senate floor amendments of 8/29/03 make conforming changes to amendments taken in the Senate Judiciary Committee. They delete a finding relating to the award of attorney fees that was inadvertently left in the bill. ANALYSIS : A CID is a form of real estate where each homeowner has an exclusive interest in a unit or lot and a CONTINUED AB 1525 Page 2 shared or undivided interest in common area property. Condominiums, planned unit developments, stock cooperatives, and community apartments all fall under the umbrella of common interest developments. There were an estimated six million residents living in approximately 30,000 CID's in California. In addition to the requirements of the Davis-Stirling Act, each CID is governed by a homeowners' association according to the recorded declarations, bylaws, and operating rules of the association. In general, homeowners' associations have wide discretion to regulate the appearance of individual interests and the conduct of its members. However, over the years a number of statutes have been enacted to prohibit various forms of regulation. Last year, legislation was enacted that bars a homeowners' association from prohibiting or limiting an owner's ability to display the American flag. This bill provides that the governing documents of a CID may not prohibit the posting or display of noncommercial signs, posters, banners or flags on or in an owner's separate interest unless necessary to protect public health or safety or because the posting violates local, state or federal law. The bill specifies that displays may be made of paper, cardboard, cloth, plastic or fabric, and posted or displayed from the yard, window, balcony or outside wall of the separate interest. Displays but may not be made of lights, roofing, siding, paving materials, flora, or balloons, or any other similar building, landscaping, or decorative component or include the painting of architectural surfaces. The bill also allows associations to impose reasonable size restrictions prohibiting signs or posters of more than nine square feet in size, and flags or banners of more than 15 square feet in size. Comments Purpose of the bill . According to the author, the goal of this bill is to ensure that the free speech rights that are enjoyed by homeowners outside of common interest developments are equally protected for the homeowners AB 1525 Page 3 within a development. With more and more homeowners living within CIDs, it is essential that associations not abridge a homeowner's right to free speech on or in his or her own separate interest. Unreasonable restrictions . Under current state law, the declarations of an association are enforceable as equitable servitudes "unless unreasonable." In Nahrstedt v. Lakeside Village Condominium Association, Inc ., 8 Cal. 4th 361 (1994), the California Supreme Court opined that the "unless unreasonable" standard means that "restrictions should be enforced unless they are wholly arbitrary, violate a public policy, or impose a burden on the use of affected land that far outweighs any benefit." The right to free expression of noncommercial speech has long been granted under constitutional law. As a result, while no statute explicitly says so, outright prohibitions by a homeowners' association of noncommercial speech are most likely already unenforceable. This bill simply makes it explicit and builds on the protections for the display of American flags written into law last year. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 8/25/03) American Civil Liberties Union (source) Congress of California Seniors Gray Panthers California Older Women's League of California Numerous individual letters OPPOSITION : (Verified 8/25/03) California Federation of Republican Women Community Associations Institute, unless amended Executive Council of Homeowners, unless amended California Association of Community Managers ARGUMENTS IN SUPPORT : Proponents argue the bill clarifies an important right and provides "commonsense statutory protections for owners of private residential property who wish to engage in a longstanding traditional AB 1525 Page 4 means of expression." ARGUMENTS IN OPPOSITION : Opponents argue the bill unfairly infringes on the rights of private property owners to contract with each other to use, or not use, their property in a particular way. ASSEMBLY FLOOR : AYES: Bates, Berg, Bermudez, Canciamilla, Chan, Chavez, Chu, Cogdill, Cohn, Corbett, Cox, Daucher, Diaz, Dutra, Dymally, Firebaugh, Frommer, Goldberg, Hancock, Harman, Jerome Horton, Jackson, Kehoe, Koretz, La Malfa, Laird, Leno, Levine, Lieber, Liu, Longville, Lowenthal, Maddox, Maldonado, McCarthy, Mountjoy, Mullin, Nakano, Nation, Negrete McLeod, Nunez, Oropeza, Plescia, Reyes, Richman, Ridley-Thomas, Runner, Salinas, Samuelian, Simitian, Steinberg, Strickland, Vargas, Wiggins, Wolk, Yee, Wesson NOES: Aghazarian, Benoit, Dutton, Garcia, Haynes, Shirley Horton, Houston, Keene, La Suer, Nakanishi, Spitzer, Wyland NC:sl 9/1/03 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****