2021: SLEW OF LEGISLATION INTRODUCED By Jennifer Wada, Esq.
We have hit the ground running, as the legislative session started off at full speed. Pent-up energy and bill ideas have been unleashed. The industry faces a slew of legislation that directly impacts it. Here are some of the key bills we are working on this year: AB 502 (Davies) would apply elections
needed for transfers of $10,000 or more
by acclamation to all associations. The
for associations of 51 units or more, and
author’s office reached out to CACM early
$5,000 for associations of 50 units or less.
in its process and was contemplating
It will also clarify that funds may not be
lowering the current 6,000 unit threshold.
invested in stocks or high-risk investment
We urged the author’s office to eliminate
options. The bill also clarifies the types of
it entirely, since 68% of associations are 50
insurance an association must maintain.
units or less. Thankfully the author’s office agreed, and the bill proposes to relieve all
AB 1410 (Rodriguez) is a compilation
associations of the unnecessary burden of
of various problematic proposals, most
the secret ballot process when elections
of which tie the hands of associations.
are uncontested. One hiccup is that due
First, the bill eliminates all rental
to the continuing COVID protocols, the
restrictions without regards to when a
Legislature has less time to hear bills and
homeowner acquired title. The author’s
committee chairs are attempting to limit
office indicates that this is not their
the number of bills that are allowed to
intent and they will be amending the
proceed. The Assembly Housing chair is
bill to clarify that associations cannot
not inclined to hear AB 502, citing the
prohibit owners from renting out rooms.
recent enactment of SB 754 (Moorlach,
Second, the bill expands the provision
2019), which established acclamation for
allowing use of an owner’s backyard for
large associations. The chair would like
personal agriculture to include all of the
to wait to see how acclamation works in
owner’s separate interest. Third, the bill
practice. We are continuing to advocate
prohibits any restriction on discussions
in support of this bill, arguing it is critical
“critical of the association” without any
since SB 754 only impacted a small
parameters. Fourth, AB 1410 requires
number of associations.
every director or association employee to complete a course on ethics and
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AB 1101 (Irwin) is CAI-CLAC’s clean
harassment prevention upon election or
up measure to AB 2912 (Irwin, 2018)
hire. Fifth, the bill prohibits an association
which, among other things, required
from imposing a monetary penalty or
electronic transfers of a certain kind to
other enforcement action in relation to
be approved by the board. AB 1101 will
landscaping on a separate interest during
soon be amended to modify existing
a state of emergency or on days when
law so that board approval will be
air quality is unhealthy. Sixth, (yes, I’m
Vision Spring 2021 | cacm.org
