For California's Community Associations June 20, 2010

SMOKING POT

QUESTION: We have a resident who is smoking "pot" and growing marijuana on his patio (2 large plants) in full view of residents. He says he has a permit to do so. Is this allowed?

ANSWER: When faced with a similar situation, one of my condo boards approved, provided the resident shared his stash. Other boards, however, may wish to prohibit the growing and smoking of pot on balconies.

Federal Law. The Controlled Substances Act makes it unlawful to manufacture, distribute, dispense, or possess any controlled substance. 21 U.S.C. 801. The federal government does not recognize any acceptable medical use for marijuana. 21 U.S.C. 812(b)(1). California, on the other hand, legalized marijuana for medical purposes.

Medical Marijuana. Medical marijuana is authorized by Health & Safety Code 11362.5 et. seq. for the treatment of serious medical conditions, and is administered by California's Department of Public Health. Upon obtaining a recommendation from their physician for use of medicinal marijuana, patients may apply for and be issued a medical marijuana identification card. ID cards may be verified at www.calmmp.ca.gov. With one exception, qualified patients may possess no more than eight ounces of dried marijuana. H&S Code 11362.77(a).

Restrictions. Just because someone has a permit to use medical marijuana does not mean he can light up whenever and wherever he wants. For example, users cannot smoke a joint in a courtroom or inside any governmental buildings (Gov. Code 7597), or within 20 feet of a main exit, entrance, or operable window of any public buildings (Gov. Code 7597), or in any workplace (Labor Code 6404.5), or on school grounds, or while operating a vehicle (H&S 11362.79). Reasonable restrictions may be imposed on the use of medical marijuana.

Quiet Enjoyment. Based on the nuisance provisions in CC&Rs, secondhand smoke, whether cigarette, cigar, marijuana or otherwise, that drifts into the windows of other units, balconies, or common areas can be restricted. Members have a right to the quiet enjoyment of their own units and should not have to endure the problems associated with secondhand smoke wafting into their units. If associations prohibit smoking on balconies, it should be all smoking, not just marijuana. Otherwise, the restriction may be struck down as discriminatory.

Reasonable Accommodation. An association's power to prohibit medical marijuana inside units is less clear. Health & Safety Code 11362.79 implies that smoking medical marijuana in one's residence is allowed. As a result, boards should not prohibit pot smoking in units but, instead, should address the nuisance aspects. As long as the smoke does not create a nuisance and provided the person has been authorized to use medical marijuana, smoking it in a unit should be allowed.

Inside Units - Nuisance. If the user cannot confine the smoke to his own unit, the smoke becomes a nuisance that must be abated. The smoker can be required to take appropriate measures to cease his violation of the CC&Rs. The person may need to run HEPA filters inside his unit, seal all penetrations in walls, ceilings and floors, and install weather stripping and door sweeps on doors to stop smoke from migrating into the common areas and surrounding units.

Growing Pot. Qualified persons are allowed to cultivate marijuana (H&S 11362.775) but may not keep more than six mature or 12 immature plants (H&S 11362.77(a)). Just as smoking marijuana has limitations, growing it can be regulated. Boards could require that plants be grown in the person's unit and not on balconies.

RECOMMENDATION: Boards who encounter this issue should seek legal counsel.

EARTHQUAKE INSURANCE

QUESTION: Our association carries less than 50% earthquake coverage with a $100,000 deductible. If they're responsible for repairing the common areas, shouldn't they carry 100% earthquake insurance?

ANSWER: It has been my experience that governing documents do not require associations to carry earthquake insurance. If yours require it, then your board must comply with whatever is called for in your documents. If your CC&Rs are silent, then coverage is at the discretion of the board, i.e., the decision to buy, the amount of coverage, and the size of the deductible. One hundred percent coverage is ideal but not always feasible because of the cost. One way to reduce cost is through higher deductibles.

Deductible. The $100,000 deductible carried by your board significantly reduces the cost of the insurance policy. Unfortunately, the deductible is probably per unit. If so, it puts each owner at risk for special assessments to pay their portion of the deductible in the event of a loss. To reduce their risk, each owner should obtain a personal earthquake policy through the California Earthquake Authority (CEA). The cost of a CEA policy is quite reasonable and will cover special assessments up to $75,000. Because the maximum is limited to $75,000, your board should consider reducing the deductible so as to eliminate the $25,000 gap in coverage. Homeowners can calculate the cost of a personal CEA policy with their "Premium Calculator."

Total Insurable Value. Boards should consult with an insurance broker and possibly an appraiser to determine the total insurable value of the association's structures. Boards can then factor in the amount of a potential loss, the cost of coverage, and the ability of the membership to pay higher assessments to cover premiums. Another way to reduce risk is to install a seismic gas valve. Once an association starts carrying earthquake insurance, boards should be cautious about discontinuing coverage without membership approval.

Thank you to Dennis Socher, Executive Broker for the Socher Insurance Agency, for his assistance with this question. -Adrian Adams

BOARD MEETING
CONSENT AGENDA

QUESTION: Do you see any reason why the board could not use a "consent agenda" for routine items that it believes does not require discussion and will garner a unanimous vote?

ANSWER: A "Consent Agenda" is a grouping of non-controversial agenda items that are expected to be approved without discussion. (Robert's Rules of Order, 10th Ed., pp. 349-350). As such, it can be a significant time saver for board meetings.

Consent Process. Routine items can be grouped together on the agenda with a heading of "Consent Calendar" or "Consent Agenda." When the board reaches that portion of the agenda, the Chair asks if any member wishes to remove (or pull) any item from the consent agenda. They may do so by stating "I pull item #__." Pulling an item does not require a second. After all the "pulls" are made, the Chair states, "Without objection, the remaining items (or all the items if none have been pulled) are adopted by general consent."

Silence is Consent. If any director wants to vote against an item, he/she must pull it from the consent agenda. This is a case where silence not only implies consent, silence is consent. If any items are pulled, the board can either take them up immediately for discussion and vote or put them in their appropriate place in the agenda. The approval of minutes is not considered routine and should not be on a consent agenda.

Notice of Agenda. The consent agenda is part of the board's meeting agenda that must be posted four days in advance of the meeting.

A special thanks to Mr. Parliamentarian James H. Stewart, PRP for his input with this question. -Adrian Adams

FEEDBACK

Newsletter Typo. There is a typo in your June 13, 2010 newsletter: "Restricting recalled directors would make good directors intelligible along with the actual target of the recall." -Steve G.

Funny Pun! You made a typo (and a funny pun!). :-) Restricting recalled directors would make good directors intelligible along with the actual target of the recall. -Ken M.

At Last! At last! After many years, a typo: "ineligible" not "intelligible." -Larry G.

Couldn't Resist. What's wrong with having "intelligible" directors? Not usually listed as a qualification, but a characteristic that might be beneficial during board discussions. I couldn't resist. -H.J.C.

RESPONSE: A typo. Gads, I hoop I don't do that again! -Adrian

Nominating Committees. Don't know if I agree with you about nominating committees being done away with. I think a nominating committee can nominate candidates and then a letter can be sent to all owners with notice that they have right to self-nominate. -Jim A.

RESPONSE: A nominating committees can still be utilized for soliciting candidates. However, if it nominates candidates and the committee's candidates are so designated on a ballot, is that a form of campaigning using association media? An interesting question for the courts.

   Sincerely yours,
 

   Adrian Adams, Esq.
   Adams Kessler PLC

 
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