Michael Belote, Esq.

By Michael Belote, Esq., California Advocates, UTA California Lobbyist

There are at least a couple of inescapable truths about sponsoring bills in the California Legislature. The first is that the bill you cause to be introduced is likely to be changed as it moves through the process.  People who expect their prized bill to proceed through the system without amendments of any kind are setting themselves up for disappointment.

The second represents a very basic lesson in civics: we have a bicameral legislature, meaning that two houses have a chance to review and vote on the bill.  In California, both the Senate and Assembly have to approve the bill before the final “vote” that counts, a signature by the Governor.  If any of the three entities do not go along, the bill fails, as most do.  That is why there is at least one more inescapable truth:  it is always easier to defeat bills than to pass them.

For 2016, UTA has two “sponsored” measures in California.  The concept of a sponsored bill is somewhat unique to California; this non-legal term simply denotes the organization causing the introduction and seeking passage of a bill.  Both UTA bills are moving forward at the halfway point in the legislative year, although, consistent with the inescapable truths discussed above, neither have survived unscathed.

The first bill is SB 983 (Morrell).  Originally introduced with four elements, the bill has been narrowed to provide an increase in base trustees fees throughout the nonjudicial foreclosure process.  Other ideas, including technical changes to the wording of the “notice to potential bidders” and clarification that trustees are not “owners” for purposes of obligations to register and maintain foreclosed properties, were amended out of the bill in the Senate Judiciary Committee.  The good news is that in the Senate at least, the trustees fee increase was non-controversial, achieving a 38-0 vote on the Senate floor.  The bill next moves to the Assembly for consideration.

UTA’s second sponsored bill is SB 918 by Senator Andy Vidak.  The Senator has been stalwart in continuing to help push for resolution of a narrow but persistent problem relating to assessment lien foreclosures.  Present law requires both the notice of intention to foreclose, and the notice of default itself, to be personally served on unit owners subject to the Davis-Stirling Common Interest Development Act.  Unfortunately the law does not provide a remedy for unit owners who simply cannot be located, or who might be evading service.

UTA members, especially Gary Wisham and Albert Garcia, literally spent months discussing the issue and attempting to negotiate a reasonable compromise with organizations which take credit for causing enactment of the personal service requirement.  A consultant for the Senate Judiciary Committee also dedicated enormous time to the effort to find common ground.  At the end of the day, the other side opposed any and all efforts to provide a remedy when personal service cannot be effected.  SB 918 was amended to require unit owners to provide annually an address to which documents can be sent; while such a concept might help incrementally in having good addresses to serve documents, it does nothing to address the evading service problem.

As amended, SB 918 also passed the Senate unanimously.  UTA is not giving up on the service of process problem.

There are a series of other bills pending which impact trustees, including a bill relating to successors in interest under the Homeowners Bill of Rights, and one dealing with priority of PACE liens.  These and other bills will be resolved by the August 31, 2016 adjournment deadline for the Legislature, and will be covered extensively at the UTA Conference in the fall.  Trustees doing business in California will want to be there!