20250AB__073997AMD INTRODUCED 2025-02-18 AMENDED_ASSEMBLY 2026-01-05 AMENDED_ASSEMBLY 2026-01-15 2025 AB AMD Introduced by Assembly Member Jackson LEAD_AUTHOR ASSEMBLY Jackson

An act to amend

Section of, and to add

Section to, the Civil Code, relating to common interest developments. common interest developments Common interest developments: managing agent fees. (1)<xhtml:span class="EnSpace"/>Existing</xhtml:p>"?> Existing law, the Davis-Stirling Common Interest Development Act, governs the formation and operation of common interest developments, and requires a common interest development to be managed by an association, as specified.

Existing law, unless otherwise provided by the governing documents, authorizes the board of directors of the association to hire a managing agent, defined as a person who, for compensation or in expectation of compensation, exercises control over the assets of a common interest development. Existing law requires, unless the governing documents impose more stringent requirements, the board of directors of the association to review various financial documents and statements on a monthly basis.

This bill would require the annual policy statement to include a statement of all fees charged by the managing agent.</xhtml:p><xhtml:p> (2)<xhtml:span class="EnSpace"/>Existing law requires the Department of Consumer Affairs and the Department of Real Estate, to the extent existing funds are available, to develop an online education course for the board of directors of an association regarding the role, duties, laws, and responsibilities of directors and prospective directors, and the nonjudicial foreclosure process.</xhtml:p><xhtml:p>This bill would require the Department of Real Estate to develop an education course for executive officers, as defined, of the association that is validated by the Secretary of State on specified review requirements, fiduciary duties, management duties, and the fine details of the Davis-Stirling Common Interest Development Act.

Commencing on the date of the development of the education course, the bill would require an executive officer to complete hours of the education course within a specified timeframe.</xhtml:p>"?> This bill would require the board of directors of the association to review, on an annual basis, fees charged by the managing agent, as specified. The bill would require the association to deliver through electronic means a statement of these fees upon written request by a member. MAJORITY NO NO NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION 1.

Section is added to the Civil Code , to read: 5378. The association shall deliver through electronic means a statement of fees charged by the managing agent as, as described in subdivision (

g) of

Section 5500, upon written request by a member.

SEC. 2.

Section of the Civil Code is amended to read: 5500. Unless the governing documents impose more stringent standards, the board shall do all of the following: (

a) Review, on a monthly basis, a current reconciliation of the association’s operating accounts. (

b) Review, on a monthly basis, a current reconciliation of the association’s reserve accounts. (

c) Review, on a monthly basis, the current year’s actual operating revenues and expenses compared to the current year’s budget. (

d) Review, on a monthly basis, the latest account statements prepared by the financial institutions where the association has its operating and reserve accounts. (

e) Review, on a monthly basis, an income and expense statement for the association’s operating and reserve accounts. (

f) Review, on a monthly basis, the check register, monthly general ledger, and delinquent assessment receivable reports. (

g) Review, on an annual basis, a statement of fees charged by the managing agent, including the following:

(1) The reporting period covered by the disclosure.

(2) The total number of residential units in the association during the reporting period.

(3) The total amount billed and paid by the association to the management company during the reporting period.

(4) The breakdown of the total amount described in paragraph (3) into the following categories: (

A) Base management fees, which include amounts paid pursuant to fixed or recurring compensation specified in the management agreement. (

B) Fee

schedule charges, which include amounts paid for additional or optional services provided pursuant to a fee

schedule adopted by the board of directors as part of the management agreement. (

C) Reimbursable expenses, which include amounts paid to reimburse the management company for third-party costs or expenses incurred on behalf of the association. <caml:Num>SECTION 1.</caml:Num><caml:ActionLine action="IS_AMENDED" xlink:href="urn:caml:codes:CIV:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'4.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'6.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'7.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'5310.'%5D)" xlink:label="fractionType: LAW_SECTION" xlink:type="locator">Section of the <caml:DocName>Civil Code</caml:DocName> is amended to read:</caml:ActionLine><caml:Fragment><caml:LawSection id="id_6CBA0229-C3F7-47AB-A6AC-A42A7BEF425D"><caml:Num>5310.</caml:Num><caml:LawSectionVersion id="id_318BCD24-A156-4362-A6A9-633BEC1A0EBA"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>Within to 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:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>The name and address of the person designated to receive official communications to the association, pursuant to

Section 4035.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>A statement explaining that a member may submit a request to have notices sent to up to two different specified addresses, pursuant to

Section 4040.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>The location, if any, designated for posting of a general notice, pursuant to subdivision (

a) of

Section 4045.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>Notice of a member’s option to receive general notices by individual delivery, pursuant to subdivision (

b) of

Section 4045.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>Notice of a member’s right to receive copies of meeting minutes, pursuant to subdivision (

b) of

Section 4950.</xhtml:p><xhtml:p>(6)<xhtml:span class="EnSpace"/>The statement of assessment collection policies required by

Section 5730.</xhtml:p><xhtml:p>(7)<xhtml:span class="EnSpace"/>A statement describing the association’s policies and practices in enforcing lien rights or other legal remedies for default in the payment of assessments.</xhtml:p><xhtml:p>(8)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(9)<xhtml:span class="EnSpace"/>A

summary of dispute resolution procedures, pursuant to Sections and 5965.</xhtml:p><xhtml:p>(10)<xhtml:span class="EnSpace"/>A

summary of any requirements for association approval of a physical change to property, pursuant to

Section 4765.</xhtml:p><xhtml:p>(11)<xhtml:span class="EnSpace"/>The mailing address for overnight payment of assessments, pursuant to

Section 5655.</xhtml:p><xhtml:p>(12)<xhtml:span class="EnSpace"/>A statement of all fees charged by the managing agent.</xhtml:p><xhtml:p>(13)<xhtml:span class="EnSpace"/>Any other information that is required by law or the governing documents or that the board determines to be appropriate for inclusion.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>The annual policy statement shall be made available to the members pursuant to

Section 5320.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection></caml:Fragment></caml:BillSection><caml:BillSection id="id_387EAD55-A0E9-4D39-AE62-33B67F44E540"><caml:Num>SEC. 2.</caml:Num><caml:ActionLine action="IS_ADDED" xlink:href="urn:caml:codes:CIV:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'5403'%5D)" xlink:label="fractionType: LAW_SECTION" xlink:type="locator">Section is added to the <caml:DocName>Civil Code</caml:DocName>, to read:</caml:ActionLine><caml:Fragment><caml:LawSection id="id_697BE6D3-0E8F-4667-904F-D75E03E6D732"><caml:Num>5403.</caml:Num><caml:LawSectionVersion id="id_51A3F16F-3B29-4FEA-9264-6446C1C67177"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>The Department of Real Estate shall develop an education course for executive officers that is validated by the Secretary of State regarding all of the following:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>Information on the review requirements of

Section 5500.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>Fiduciary duties.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>Management duties.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>All other applicable provisions of this part.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>Commencing on the date of the development of the education course pursuant to subdivision (a), the applicable of the following shall apply:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>An executive officer appointed or elected on or before the date of development of the education course pursuant to subdivision (

a) shall complete hours of the education course within two years of the date of the development of the education course.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>An executive officer appointed or elected after the date of the development of the education course pursuant to subdivision (

a) shall complete hours of the education course within two years of appointment or election.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>For the purposes of this section, “executive officer” means the president, vice president, secretary, or treasurer of the association.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection></caml:Fragment></caml:BillSection>"?>