My roommate is leaving a condo that we are currently leasing. I will
be staying in the condo and resigning a new lease with a new roommate.
We are having problems getting the landlord to inspect the place in
order to refund the leaving roommates security deposit. Are there any
California laws that can help me get this done or is my roommate stuck
up a creek until everyone moves out?

Since the landlord is allowing a new lease to be signed the person
leaving can assign their deposit over to the new roomate. The new
roomate can pay the person who is leaving.

The problem that comes from that is nobody is sure how much of the
deposit should be returned. The apartment has definately had some wear
over the 2 years I was with my first roommate but not exactly sure how
much. It would be much easier if there was something that would
stipulate if the landlord must re-evaluate the place before a second
lease can be signed or if there is something that will release the
first roommate from any damages that happen AFTER his leaving.

Here you go, scroll down to section 1950.5 and following about security deposit:
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=civ&group=01001-02000&file=1940-1954.1

Or scroll down to Landlord/tenant on the primary site:
http://www.dca.ca.gov/legal/m-1.html

It seems that by terminating the old lease, you absolutely have the
right to ask the landlord to inspect and settle the security deposit.
Good luck