DAVIS-STIRLING REORGANIZATION BILL SIGNED, TO BECOME LAW 1/1/14
On Friday, August 17, Governor Brown concluded the long journey of the California Law Revision Commission’s project to reorganize the Davis-Stirling Common Interest Development Act, when he signed into law Assembly Bills 805 and 806. AB 805 relocates the Act to a different part of the California Civil Code, while AB 806 updates the many references to the Act in other parts of California statutes to reflect the new correct statute numbers.
CAI had a substantial amount of input into AB 805, as it worked its way through the Legislature in 2011 and 2012, and supported the bill in its final form. Much thanks is owed to Duncan McPherson, Darren Bevan and CAI California Legislative Action Committee Chair Dick Pruess for attending CLRC meetings and providing valuable input to the Commission.
The law does not take effect until January 1, 2014, to give managers, boards and attorneys one year to familiarize themselves with the reorganized Act. Currently found at Civil Code Sections 1350-1378, the Act starting at that date will be found at Civil Code Sections 4000-6150.
The primary purpose was to reorganize and clarify the law without making substantive changes. The new law does make a number of substantive changes, none of which are believed to be controversial. CAI will educate its members about these changes during 2013.
The new law does not require that associations avoid amending their governing documents until 2014, and specifically provides for associations to update their existing governing documents (CC&Rs and Bylaws) by a board vote in order to correct the old Civil Code references and insert the new ones.
CAI and its California Legislative Action Committee will continue to be vigilant in its support of legislation assisting California common interest developments toward better community governance, management and living.
Kelly Richardson is Managing Partner of Richardson Harman Ober PC, former Chair of CAI-California Legislative Action Committee and a current Trustee of CAI. He can be reached at firstname.lastname@example.org.