Category: Senate Bill 323

SB 323: which ship is the member-ship?

7/15/2024

Senate Bill 323 added new Civil Code section 5105(b), which provides that “[a]n association shall disqualify a person from a nomination as a candidate for not being a member of the association at the time of the nomination.”

An exception to this requirement is provided by 5105(b)(2), which provides that “[i]f title to a separate interest parcel is held by a legal entity that is not a natural person, the governing authority of that legal entity shall have the power to appoint a natural person to be a member for purposes of this article.”

SB 323: a cautious new timeline for director elections

5/13/2024

Prior to Senate Bill 323, a typical HOA board election would require 60-75 days to complete. SB 323 extends that timeline to at least 105 days - more like 120 in practice - and imposes complex new notice requirements on associations.

The following represents a prudent 130-day timeline for conducing SB 323 compliant board elections. This timeline is longer than that required by law, but its length ensures sufficient time for boards to understand SB 323's complex new requirements, select workable dates, retain a qualified inspector, and prepare SB 323's multiple new forms.

SBs 323 and 754: the certain death of acclamation

10/16/2023

Election by acclamation is the process of declaring a slate of director-candidates elected when the number of candidates at the deadline for nomination is equal to or less than the number of board positions to be filled, and thus the results a foregone conclusion.

Prior to Senate Bills 323 and 754, the HOA legal community was split on the advisability of acclamation. Some attorneys took the position that requiring zero-budget nonprofits to incur the expense and effort of a mailed secret ballot vote in the face of a known conclusion was little better than digging a hole in the yard, filling it with money, and lighting it on fire. Others read Civil Code section 5100(a)’s “shall” as requiring such folly.

SB 323: dispute resolution for non-disputes

9/11/2023

Senate Bill 323 added Civil Code section 5105(e), which provides that “[a]n association shall not disqualify a person from nomination if the person has not been provided the opportunity to engage in internal dispute resolution.”

Read literally, Section 5105(e) appears to provide that an offer of internal dispute resolution (IDR) by an association is required in order to enforce any candidate qualification, even those which are generally not subject to "resolution," such as membership status, duration of membership, or disqualification based on co-ownership. SB 323 also fails to reconcile the conflicting requirements that associations shall disqualify non-members but also shall offer IDR before doing so.

SB 323: odds and ends that are odd, and should be ended

7/10/2023

This blog post is a running list of Senate Bill 323's ambiguities and flaws that seem problematic enough to complain about but not problematic enough to waste a funny title on. I myself feel like running away.

<<Previous

SB 323: which ship is the member-ship?

SB 323: a cautious new timeline for director elections

SBs 323 and 754: the certain death of acclamation

SB 323: dispute resolution for non-disputes

SB 323: odds and ends that are odd, and should be ended

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