Michael Belote, Esq.

Just as banks make loans, and General Motors makes cars, legislators make laws. Every year in California, some 2,000-2,500 new bills are introduced. At least three principal reasons exist for the large number of bills introduced. First, since bills are the “product” of legislators, there is a desire in lawmakers to appear busy and active. Second, California is a highly codified state, and the large body of statutory law requires frequent clean-up, correction and clarification. Finally, interest groups like UTA will bring ideas to legislators for changes in the law. In other words, we contribute to the large number of bills, for better or worse.

Late February is the deadline for introducing new bills this year; as this column is written the deadline is some days off. Most bills are introduced right at the deadline, so time is required to sift through the mountain of legislation to see which bills affect UTA. The information will be available by the time UTA conducts its annual day in Sacramento on March 11.

We do know, however, that UTA will be sponsoring a bill for 2014, thus adding to the overall total of new bills. SB 1026 (Vidak) was introduced on February 14 at UTA request. The bill was introduced as a “spot-bill”, which is Sacramento parlance for a bill which makes no substantive change at introduction, but is intended to hold a “spot” for later language to be included.

The plan for SB 1026 is to include language addressing a long-standing problem in assessment lien foreclosures, when trustees cannot effect personal service on owners within common interest developments. The bill may also serve as a vehicle for technical, non-controversial changes to the Homeowners Bill of Rights, if consensus can be reached in this still very sensitive area. Since 2014 is the second year of the current 2014-3-2014 legislative session, the bill must be enacted this year and cannot be carried over to 2015.

A second issue of great interest to UTA is SB 391 (DeSaulnier), carried over from 2013. This is the bill which proposes a surcharge of $75 on the recording of most real estate documents, in order to fund the development of affordable housing. SB 391 passed the Senate last year, and as a “two-year bill” will be alive throughout 2014. Many real estate groups, including UTA, are opposed to the measure, even while recognizing the worthy goal of developing affordable housing. Prospects for the bill in the Assembly are uncertain and the issue may not be resolved until the summer.

Finally, indications are the large numbers of bills will be introduced relating to electronic privacy and data breaches. Reportedly the legislative leadership believes that additional privacy protections should be high on the legislative agenda for this year. Bills in this area tend to be exceedingly complex, with complicated questions of federal preemption (Graham-Leach-Bliley, Dodd-Frank, etc.) and prone to problems with unintended consequences. But it is very likely that bills will be introduced relating to sharing and safeguarding personally identifiable information, and trustee practice could well be implicated, even if unintentionally.

A future issue of the UTA eNews will contain a more comprehensive report on new bills introduced for 2014, but if the past is any indication, dozens will relate to trustees. If any UTA member wants to see what 2,500 new bills look like in a giant pile, be assured that it is not pretty!