SB 323 (Wieckowski) Common interest developments: elections.

Would require changes to the election rules regarding director qualifications, candidate nominations, and meeting room accessibility. It would also prohibit the suspension of voting privileges and would require the election rules be distributed with the ballots.

Current Status: Chaptered

FindHOALaw Quick Summary:

Existing law requires a homeowners association to adopt rules that specify the qualifications for candidates for the board of directors, qualifications for voting, the voting power of each membership, the authenticity, validity, and effect of proxies, and the voting period for elections, including the times at which polls will open and close, consistent with the governing documents. The act requires the sealed ballots to be held at all times in the custody of the inspector or inspectors of elections or at a designated location until after the tabulation of the vote.

This bill would amend Civil Code Sections 5105 and 5125 to delete the requirement that the elections rules specify the qualifications for candidates for the board and the qualifications for voting. The bill would require an association to disqualify a person from nomination for not being a member at the time of the nomination and for being convicted of certain felonies, and would authorize the association to disqualify a person for specified reasons, including the failure to pay regular assessments. The bill would require the rules to ensure that the meeting at which ballots are counted is accessible to all members and their representatives. The bill would also require the rules to mandate the elections notice include provisions regarding the return and counting of ballots, nominations, and list of candidates’ names that will appear on the ballot. The bill would require the rules to mandate that the elections rules be mailed with the ballots at least 30 days prior to the election. The bill would require the rules to prohibit the denial of a ballot to a member and to a person with power of attorney for an owner. This bill would require the sealed ballots, signed voter envelopes, voter list, proxies, and candidate registration list to be in the custody of the inspector of elections or at a designated location until after vote tabulation and would, with certain exceptions, require these association election materials to be considered association records, subject to inspection and copying.

Existing law requires an independent third party to be selected by the association as the inspector of elections and prohibits a person, business entity, or subdivision of a business entity that is employed or under contract to the association for any compensable services from being an independent third party unless otherwise expressly authorized by the rules of the association. This bill would amend Civil Code Section 5110 to delete the exception made by the election rules.

Existing law authorizes a member of an association to bring a civil action for declaratory or equitable relief for a violation of the above-described provisions by the association within one year from the date the cause of action accrues and authorizes a court to void the election results. Existing law also authorizes a cause of action for certain violations of the provisions governing association elections to be brought in small claims court.
This bill would amend Civil Code Section 5145 to authorize the civil action to be brought in superior court or, if the amount of the demand does not exceed the jurisdictional amount of the small claims court, in small claims court, within one year from the date that the inspector of elections notifies the board and membership of the election results, whichever is later. The bill would also require the court to void the elections results, unless the association establishes that noncompliance by the association was unintentional and did not affect the results of the election.  The bill would also prohibit an association from filing a civil action regarding a dispute in which the member has requested dispute resolution unless the association has complied with the internal dispute resolution procedures governing common interest developments, as specified.

Existing law defines association records to include membership lists, including name, property address, and mailing address, as specified.  This bill would amend Civil Code Section 5200 to include email addresses among the records that are defined as association records.

Under existing law, elections regarding common interest development assessments that legally require a vote, election and removal of directors, amendments to the governing documents, or the grant of exclusive use of common area are required to be held by secret ballot in accordance with specified procedures.  This bill would amend Civil Code Section 5100 to require those elections to be held at minimum every four years.
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from the California Legislature's website

Related Topics

Related Statutes

Related Case Law

  • Worldmark v. Wyndham Resort Dev. Corp.
    (2010) 187 Cal.App.4th 1017

    [Membership List; Email Addresses] The “addresses” of members which must be disclosed with a member’s request to inspect the membership list pursuant to Corp. Code § 8330(a) includes the members’ email addresses.

Related Links

The New State of HOA Election Laws - Published on HOA Lawyer Blog (October, 2019) Court Upholds Use of HOA Election Rules for Director Qualifications- Published on HOA Lawyer Blog (October 28,  2013)
Recovering Attorneys' Fees in HOA Election Disputes - Published on HOA Lawyer Blog (September 26, 2012)
Challenges to HOA Elections:  Facts and Consequences- Published on HOA Lawyer Blog (April 3, 2012)
Inspection and Copying of Association RecordsPublished on HOA Lawyer Blog (July 1, 2014)