Assembly BillChaptered/SignedCivil
AB 739: Common interest developments: managing agent fees.
What AB 739 does, verified September 29, 2026
The bill aims to amend the Davis-Stirling Common Interest Development Act. It requires the board of directors of a common interest development association to review the fees charged by the managing agent annually. This review is to ensure transparency and accountability. The association must deliver a statement of these fees to a member upon written request. The statement will be delivered through electronic means. This bill aims to increase transparency and provide better information to members about the fees charged by the managing agent.
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Last action: Chaptered by Secretary of State - Chapter 506, Statutes of 2026. (2026-09-27)Alert me
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| Sep. 27, 2026 | Chaptered by Secretary of State - Chapter 506, Statutes of 2026. |
| Sep. 27, 2026 | Approved by the Governor. |
| Sep. 03, 2026 | Enrolled and presented to the Governor at 4 p.m. |
| Aug. 26, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0. Page 6561.). |
| Aug. 25, 2026 | In Assembly. Concurrence in Senate amendments pending. |
Latest bill textChaptered version, September 27, 2026 · 1,583 words
Assembly Bill No. 739
CHAPTER 506
An act to amend Sections 5200 and 5500 of the Civil Code, relating to common interest developments.
[ Approved by Governor September 27, 2026. Filed with Secretary of State September 27, 2026. ]
LEGISLATIVE COUNSEL'S DIGEST
AB 739, Jackson. Common interest developments: managing agent fees.
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. Existing law requires an association to make association records available for inspection and copying by a member of the association or the member’s designated representative, as specified.
This bill would require the board of directors of the association to review, on an annual basis, a statement of fees charged by the managing agent, as specified. The bill would include this statement of fees as association records.
This bill would incorporate additional changes to Section 5200 of the Civil Code proposed by SB 1238 to be operative only if this bill and SB 1238 are enacted and this bill is enacted last.
The people of the State of California do enact as follows:
SECTION 1.
Section 5200 of the Civil Code is amended to read:5200.
For the purposes of this article, the following definitions shall apply:(a) “Association records” means all of the following:
(1) Any financial document required to be provided to a member in Article 7 (commencing with Section 5300) or in Sections 5565 and 5810.
(2) Any financial document or statement required to be provided in Article 2 (commencing with Section 4525) of Chapter 4.
(3) Interim financial statements, periodic or as compiled, containing any of the following:
(A) Balance sheet.
(B) Income and expense statement.
(C) Budget comparison.
(D) General ledger. A “general ledger” is a report that shows all transactions that occurred in an association account over a specified period of time.
The records described in this paragraph shall be prepared in accordance with an accrual or modified accrual basis of accounting.
(4) Executed contracts not otherwise privileged under law.
(5) Written board approval of vendor or contractor proposals or invoices.
(6) State and federal tax returns.
(7) Reserve account balances and records of payments made from reserve accounts.
(8) Agendas and minutes of meetings of the members, the board, and any committees appointed by the board pursuant to Section 7212 of the Corporations Code; excluding, however, minutes and other information from executive sessions of the board as described in Article 2 (commencing with Section 4900).
(9) Membership lists, including name, property address, mailing address, email address, as collected by the association in accordance with Section 4041 where applicable, but not including information for members who have opted out pursuant to Section 5220.
(10) Check registers.
(11) The governing documents.
(12) An accounting prepared pursuant to subdivision (b) of Section 5520.
(13) An “enhanced association record” as defined in subdivision (b).
(14) “Association election materials” as defined in subdivision (c).
(15) All inspector’s reports compiled pursuant to Section 5551.
(16) Statements of fees charged by the managing agent pursuant to subdivision (g) of Section 5500.
(b) “Enhanced association records” means invoices, receipts, and canceled checks for payments made by the association, purchase orders approved by the association, bank account statements for bank accounts in which assessments are deposited or withdrawn, credit card statements for credit cards issued in the name of the association, statements for services rendered, and reimbursement requests submitted to the association.
(c) “Association election materials” means returned ballots, signed voter envelopes, the voter list of names, parcel numbers, and voters to whom ballots were to be sent, proxies, the candidate registration list, and the tally sheet of votes cast by electronic secret ballot. Signed voter envelopes may be inspected but may not be copied. An association shall maintain association election materials for one year after the date of the election.
SEC. 1.5.
Section 5200 of the Civil Code is amended to read:5200.
For the purposes of this article, the following definitions shall apply:(a) “Association records” means all of the following:
(1) Any financial document required to be provided to a member in Article 7 (commencing with Section 5300) or in Sections 5565 and 5810.
(2) Any financial document or statement required to be provided in Article 2 (commencing with Section 4525) of Chapter 4.
(3) Interim financial statements, periodic or as compiled, containing any of the following:
(A) Balance sheet.
(B) Income and expense statement.
(C) Budget comparison.
(D) General ledger. A “general ledger” is a report that shows all transactions that occurred in an association account over a specified period of time.
The records described in this paragraph shall be prepared in accordance with an accrual or modified accrual basis of accounting.
(4) Executed contracts not otherwise privileged under law.
(5) Written board approval of vendor or contractor proposals or invoices.
(6) State and federal tax returns.
(7) Reserve study pursuant to Section 5550, reserve account balances, and records of payments made from reserve accounts.
(8) Agendas and minutes of meetings of the members, the board, and any committees appointed by the board pursuant to Section 7212 of the Corporations Code; excluding, however, minutes and other information from executive sessions of the board as described in Article 2 (commencing with Section 4900).
(9) Membership lists, including name, property address, mailing address, email address, as collected by the association in accordance with Section 4041 where applicable, but not including information for members who have opted out pursuant to Section 5220.
(10) Check registers.
(11) The governing documents.
(12) An accounting prepared pursuant to subdivision (b) of Section 5520.
(13) An “enhanced association record” as defined in subdivision (b).
(14) “Association election materials” as defined in subdivision (c).
(15) All inspector’s reports compiled pursuant to Section 5551.
(16) Statements of fees charged by the managing agent pursuant to subdivision (g) of Section 5500.
(b) “Enhanced association records” means invoices, receipts, and canceled checks for payments made by the association, purchase orders approved by the association, bank account statements for bank accounts in which assessments are deposited or withdrawn, credit card statements for credit cards issued in the name of the association, statements for services rendered, and reimbursement requests submitted to the association.
(c) “Association election materials” means returned ballots, signed voter envelopes, the voter list of names, parcel numbers, and voters to whom ballots were to be sent, proxies, the candidate registration list, and the tally sheet of votes cast by electronic secret ballot. Signed voter envelopes may be inspected but may not be copied. An association shall maintain association election materials for one year after the date of the election.
SEC. 2.
Section 5500 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, which shall include the following:
(1) The time period covered by the statement of fees.
(2) The total number of separate interests in the association during the time period covered by the statement of fees.
(3) The total amount billed and paid by the association to the managing agent during the time period covered by the statement of fees.
(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 by the managing agent 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 managing agent for third-party costs or expenses incurred on behalf of the association.
(h) For the purposes of this section, “managing agent” does not include an employee of the association.
SEC. 3.
Section 1.5 of this bill incorporates amendments to Section 5200 of the Civil Code proposed by both this bill and Senate Bill 1238. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2027, (2) each bill amends Section 5200 of the Civil Code, and (3) this bill is enacted after Senate Bill 1238, in which case Section 1 of this bill shall not become operative.Text of AB 739 as chaptered, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions