HHV Annual Meeting Postponed Due to New Election Laws
Michael Lee
Dear HHV Members,
Due to law pertaining to HOA elections that went into effect on January 1, 2020 the association will need to update their Election Rules to comply with the new law, Senate Bill 323 (SB323). Therefore, the association will need to postpone its Annual Meeting scheduled for March 31, 2020 until the association can adopt new Election Rules that integrates the new provisions of the law.
SB 323 requires that associations adopt such Election Rules at least 90 days before the next election. Once the draft updated Election Rules are approved, it will be provided to the membership for a 28-day comment period before it can be adopted.
Please review the Frequently Asked Questions enclosed for more information.
Thanks again,
Collins Management
FREQUENTLY ASKED QUESTIONS REGARDING NEW LAWS
AFFECTING CALIFORNIA ASSOCIATIONS
Q. What is SB 323?
A. Senate Bill 323 is a law which makes significant changes to the election process for all common interest developments in California.
Q. Will my Association have to adopt new Election Rules and if so, when?
A. The vast majority of Associations in California will need to adopt Election Rules that integrate the new provisions of the law. SB 323 requires that associations adopt such Election Rules at least 90 days before the next election.
Q. What if an Association’s election is scheduled for January, February or March 2020?
A. We recommend that Associations with elections in the first quarter of 2020 consider delaying their election to allow for timely adoption of new Election Rules. Elections that proceed without the adoption of code-compliant Election Rules are subject to legal challenge.
Q. What are some of the new changes to Election Rules?
A. SB 323 contains provisions regarding - among other things - when Associations can deny ballots to members, disqualify candidates from running for the Board, as well as creating new notice requirements before elections and election document retention. Director Nominee qualifications are also significantly limited by the new law. In addition to the above, SB 323 places stringent limitations on who may act as the Inspector of Elections and essentially prohibits election via acclamation in almost all communities. For all these reasons, it is imperative that Associations – at minimum – adopt new Election Rules to address these various requirements.
Q. Are there new obligations placed on the Inspector of Election?
A. Yes. Current law only requires inspectors to maintain ballots for one year after the election, before transferring them to the HOA. However, the new law will require inspectors to maintain not only ballots, but also signed voter envelopes, voter lists, proxies, and candidate registration lists.
Q. Does SB 323 say anything about handling challenges to an election?
A. Yes. Not only has the timeframe for such a challenge changed slightly, but now, if a member can
demonstrate that it is more likely than not that a violation of the law or election rules occurred, the court will void the election. The HOA can only prevail if it can show that it is more likely than not that the violation didn’t have an impact on the election results.
Q. Does SB 323 make any other changes that impact members?
A Yes. Members were previously entitled to inspect and copy the HOAs’ membership list, with the
exception of members that opted out. Under the new law, member email addresses will also be provided as a part of the membership list, unless they opt out. Members now also have greatly expanded rights regarding inspection and copying of election materials.
500 Alfred Nobel Drive, Suite 250|Hercules, CA 94547
o: 510-262-1795 ext 23 |f: 510-925-2829|www.collins-mgmt.com