CAR Legislative Update for September 17, 2007

Published: September 17, 2007

<p><strong>C.A.R. Sponsored Legislation Update:<br />C.A.R. is the sponsor of AB 980 (Calderon) Disclosure of Private Transfer Taxes:</strong> This bill will require that a stand alone document on the private transfer tax (PTT) be recorded to become part of the title record, as well as a separate disclosure to potential home buyers as to whether the home they are considering purchasing requires the payment of a private transfer tax, the percentage of the home price constituting the PTT, the duration of the payment obligation, and the recipient of the PTT payment. If the stand alone PTT document is not recorded, the new home buyer will not have to pay the PTT.<br /><strong>Status:</strong> <em>AB 980 is currently on the Governor's desk awaiting action.</em><br /><br /><strong>C.A.R. is the sponsor SB 226 (Negrete McLeod) &quot;Degree Broker&quot; Requirements:</strong> Current law provides that the Real Estate Commissioner may grant a brokers' license to an applicant with out real estate experience if the applicant has a degree from a 4-year college or university with a &quot;specialization in real estate.&quot; SB 226 will require the DRE to clarify what a &quot;specialization&quot; in real estate means. This bill will not change the other mechanisms for demonstrating equivalency such as a petition by a licensee from another state for recognition of his or her experience. Additionally, SB 226 will empower the Commissioner to require a licensee to display his or her license number on &quot;consumer first contact materials&quot; which include: business cards, stationary, advertising fliers, and other materials designed to solicit a professional relationship. However, this additional authority is limited and may not be applied to &quot;for sale&quot; signs or advertisements that appear either in print or electronic media.<br /><strong>Status:</strong> <em>SB 226 is currently on the Governor's desk awaiting action.</em></p><p><br /><strong>OTHER LEGISLATION OF INTEREST</strong>AB 414 (Jones) Local Planning: Current law permits local agencies to meet their housing element requirements by relying on sites that are primarily zoned for commercial development, but are also authorized for residential use. AB 414 will prevent these &quot;double-zoned&quot; sites from being used to accommodate a city or county's share of the Regional Housing Needs Allocation. It sets an absolute cap of 30% on counting &quot;double-zoned&quot; sites towards the jurisdiction's lower-income housing needs, and sets a limit of 50% on the use of double-zoned sites as credit toward meeting the applicable housing element requirement. C.A.R. supports AB 414 because it will discourage local agencies from using double-zoned sites to meet their share of the regional housing need. Furthermore, the bill will encourage affordable housing development.<br /><strong>Status:</strong> <em>AB 414 is currently on the Governor's desk awaiting action</em>.<br /><strong>C.A.R.'s Position:</strong> <em>Support</em><br /><br />SB 430 (Machado) California Earthquake Authority: SB 430 was introduced to improve the financial condition of CEA for earthquake events that occur due to the pending December 1, 2008 sunset of the California Earthquake Authority's authorization to use one of the two &quot;insurer assessment layers&quot; for financing. This bill creates a new assessment authority for CEA by authorizing a new insurance assessment layer to last for 10 years beginning December 1, 2008, that will equate to a $1.3 billion industry assessment that could be utilized to pay earthquake claims and expenses. This new assessment would be reduced by five percent per year after the first year, but the 10-year term and reduction could be extended for up to an additional two years if the CEA pays at least $500 million in claims as a result of a single earthquake event. This bill will become effective on July 1, 2008. C.A.R. supports SB 430 because the viability of the CEA is necessary to the availability of homeowners insurance in California.<br /><strong>Status:</strong> <em>SB 430 is currently on the Governor's desk awaiting action.</em><br /><strong>C.A.R.'s Position:</strong> <em>Support</em><br />C.A.R. opposes AB 1542 (Evans) Mobilehome Park Conversions: Current law requires the filing of detailed impact reports when converting existing mobilehome parks to private ownership. However, if the park is being converted to resident ownership, the park is granted an exemption from this requirement. AB 1542 would have deleted that exemption. C.A.R. opposed the bill because it attempted to eliminate mobilehome park owners' ability to convert their park into one that is resident-owned, thus penalizing residents and owners. As amended, AB 1542 would delete the existing requirement that subjects subdividers to a hearing by the appropriate legislative body for the purpose of approving the subdivision map. The bill would also require local rent control measures to remain applicable to the rental of any mobilehome space when a resident chooses not to purchase their lot. C.A.R. continues to oppose AB 1542 because it attempts to maintain existing price controls that create undue financial burdens on park owners that contribute to the decline in mobilehome parks in California.<br /><strong>Status:</strong> <em>AB 1542 is currently on the Governor's desk awaiting action</em>.<br /><strong>C.A.R.'s Position</strong>: <em>Oppose</em><br /><br />ACA 8 (De La Torre) Eminent Domain: The California Constitution authorizes private property to be taken or damaged for public use only when just compensation has been paid to the property owner. ACA 8 would require, prior to the commencement of eminent domain proceedings, that the public use for which the private property is being taken be stated in writing. State and local governments would be prohibited from using eminent domain on an owner-occupied residence for a private use, but only if the property has been the principal residence of the owner for at least one year. Finally, the bill would give the former owner the right to reacquire the property at the current market value if that property ceased to be used for the stated public use. C.A.R. will oppose ACA 8 until it is amended to provide protection from eminent domain to all owner-occupied single family residences, regardless of tenure.<br /><strong>Status:</strong> <em>ACA 8 failed passage of the Assembly on September 11th</em><br /><strong>C.A.R.'s Position:</strong> <em>Opposes unless amended</em><br /><br />C.A.R. opposes SB 127 (Kuehl) Property Transfer Disclosures, As introduced, this bill would have required all transactional disclosure documents to be delivered within three days of the &quot;execution&quot; of an offer to purchase. As amended, this measure would require all transactional disclosure documents to be delivered within ten days of the &quot;execution&quot; (by which the author means acceptance) of an offer to purchase. C.A.R. opposed SB 127 because it would have imposed a &quot;one size fits all&quot; time frame which would make compliance difficult for many transactions, and would not have allowed time frames to be negotiated. C.A.R. was successful in obtaining amendments that allow both parties to the transaction to agree to change, in writing, the time period for delivering transaction disclosures. With this amendment, C.A.R. had removed its opposition. Recent amendments to the bill have renewed C.A.R.'s opposition. As amended, SB 127 requires a separate document when both parties to the real estate contract negotiate for a disclosure delivery time longer than ten days and would not allow the agreement to be continued within a single contract or deposit receipt. C.A.R. opposes the bill because it creates unnecessary compliance burdens even in the great majority of transactions that do not involve a negotiated timeline.<br /><strong>Status:</strong> <em>SB 127 is eligible for consideration on the Assembly Floor when the Legislature reconvenes in January 2008</em>.<br /><strong>C.A.R.'s Position</strong>: <em>Opposes</em></p>

Last modified: September 17, 2007 at 10:54 am | Originally published: September 17, 2007 at 10:54 am
Printed: September 27, 2020