We have a right to assume that state laws are the result of careful deliberation and public disclosure. However, that was not the case with Assembly Bill 130, passed by the Legislature on Monday, June 30 and signed by Gov. Gavin Newsom that same day.

The new law took effect the next day, July 1, which means it is already in effect.

The bill, a major housing initiative, was introduced in January, and until June 25, it had no impact on HOAs. However, at literally the last minute, an amendment was inserted into the bill sharply changing HOA disciplinary processes and cutting back on HOA disciplinary powers.

The amendment was never subjected to any public hearing and became law five days later when the governor signed AB 130 into law. As a result, Civil Code Sections 5850 and 5855 have been substantially amended, and tens of thousands of California HOAs are immediately in violation of this law SIX DAYS AFTER the change in the law was initially proposed.

The new law significantly limits HOA rule and CC&R enforcement by capping fines at $100 per violation, unless the violation “may result in an adverse health or safety impact on the common area or another association member’s property.” Such a finding must be expressly included in the rule if a larger fine is to be specified.

So, HOAs should review their rules carefully and insert that finding in rules protecting person or property, to legitimize fines of more than $100.

AB 130 further limits HOA enforcement ability by converting disciplinary hearing notices to warnings.

Under a new addition to Section 5855, members may not be disciplined if they cure the violation before the hearing or, if curing the violation takes time, they provide a financial commitment to cure it. So, one may ask, how does the HOA fine a homeowner who has a loud party keeping their neighbors up until 2 a.m.? The noise event is over well before the hearing, so is the HOA banned from imposing discipline for such unneighborly behavior?

Another problematic new section of the statute authorizes homeowners who disagree with the board’s disciplinary action to request Internal Dispute Resolution after the hearing, effectively providing a second opportunity to challenge the outcome.

To avoid violating the statute and imposing discipline that is void, HOAs need to take action soon.

HOAs should review and update their rules and schedule of fines to ensure they comply with the new law.

Any rules (or CC&R provisions) involving protection of safety or prevent property damage need to have specific recitals added to the rules so that larger more serious fines can be imposed on such violations.

These changes do not require the two-step, 28-day process of normal rule changes because this would be a change to conform to law, under Civil Code 4355(b)(4).

So, the various changes to HOA rules required by this new law can be adopted at any open board meeting with agenda notice. Hopefully not too many homeowners will demand an internal dispute resolution meeting before the discipline is final, but this is another extra step now. Legal counsel should be involved in the revision process, which means the new law also imposes further expense on HOAs.

It is extremely disappointing to see instant laws made in back rooms, such as this last-minute addition to AB 130.

Richardson, Esq. is a fellow of the College of Community Association Lawyers and partner of Richardson Ober LLP, a California law firm known for community association advice. Submit column questions to kelly@roattorneys.com.