In Sacramento, the 2010 Legislative Session is in full swing. We are closely monitoring many bills, including several that specifically target association operations:

AB 1726 – Voting Quorums
This bill addresses the situation where there is not a quorum for a member meeting or an election of directors. It would automatically reduce the quorum requirement for the next meeting to 33% of the members entitled to vote.

AB 1793 – Synthetic Grass
This bill expands the restrictions codified in 2009 by AB 1061. It voids provisions in governing documents that prohibit the use of artificial turf or any other synthetic surface that resembles grass.

AB 1927 – Rental Rights
For governing documents amended, adopted or recorded on or after January 1, 2011, this bill requires that 2/3 of all owners vote to approve rental or lease restrictions.

Visit our Legislation at a Glimpse page to see all 7 bills on ECHO’s watch list, including our position and links to the text of each bill.

In 2009 the Governor signed AB 899, expanding the rights of HOAs to send electronic disclosures to their members. However, the new law contains several restrictions and caveats.

From the Wine Country Seminar — “Prior to January 1, 2010, the Davis-Stirling Act allowed electronic (email) distribution of only the notices related to rule changes. Now, an association can use email to distribute the new Disclosure Document Index and the documents listed on the Disclosure Document Index in addition to the rule change notices; but only to members that have given prior consent, in a form that meets specific requirements, to receiving the notices by email. Civil Code §1350.7

Documents can be electronically delivered only to members who have consented to email delivery in a manner that meets the requirements of the Corporations Code. The consent must be in writing and provide an email address, it must clearly state whether it applies to just one delivery or to certain categories of documents, and it must state that it can be revoked and give the procedures for revoking consent. The email transmission must create a record that can be retrieved, reviewed and retained. The email transmission must also be in a form that can be printed and must state that a member has a right to obtain a paper copy of the documents. Corporations Code §20

Email delivery is still not permitted for ballots, meeting notices, pre-lien and collection notices, hearing and violation notices, or requests for alternative dispute resolution. Newsletters and other communications not controlled by Davis-Stirling may be distributed by email.”

Haven’t heard our 2010 Statute and Case Law Update? Catch it again at our South Bay Seminar on April 17th. Sign up online by April 7 to get 2009 prices, or download the registration form. Visit the event page for details.

In February, the California Law Revision Commission (CLRC) completed its re-statement of the Davis-Stirling Act and released the draft for public comment. Although the CLRC does not intend to make substantive changes to the law, it has worked for several years to clarify and simplify the language. ECHO is reviewing the draft and will provide comments to the Commission for its meeting on August 19. Download the draft on the ECHO website.

Let us know if the ECHO Legal Update is delivering the kind of information and resources that you want to receive. We read and respond to every email. Please send your comments to Tyler Coffin (tcoffin@echo-ca.org). Thank you!