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Senate Bill 323: a cautious new timeline for director elections.

10/5/2020

 
As discussed in other blog posts, Senate Bill 323 ("SB 323") took effect on January 1, 2020. Prior to SB 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.
At least 130 days before the planned election date, the board selects ten dates:

  1. Date 1: select an election date at least 130 days in future (or more, if the election rules require changes).

  2. Date 2: count back at least 35 days from the election date to select a record date, which is the date the voter list will be finalized and the ballots distributed.

  3. Date 3: count back at least 5 days from the record date to select a deadline for completion of the member voter list and candidate registration list inspections.

  4. Date 4: count back at least 5 days from the deadline for completion of list inspections to select a deadline for the receipt of list inspection requests.

  5. Date 5: count back at least 35 days from the record date (Date 2) to select a date for the distribution of the new pre-ballot notice.

  6. Date 6: count back at least 5 days from the date of distribution of the pre-ballot notice to select a deadline for the completion of candidacy-related internal dispute resolution ("IDR"). This deadline is necessary to ensure the pre-ballot notice can contain a list of the approved director candidates.

  7. Date 7: count back at least 5 days from the deadline for the completion of IDR to select a date for the actual IDR session.

  8. Date 8: count back at least 5 days from the date of the IDR session to select a deadline for receipt of the call for candidates forms ("forms").

  9. Date 9: count back at least 35 days from the deadline for receipt of the call for candidates to select a date for distribution of the forms.

  10. Date 10: count back at least 10 days from the date for distribution of the forms. If the board has selected its timeline appropriately, Date 10 should be at least 130 days before Date 1.

There's a lot more to it than that - including the adoption of SB 323 compliant bylaws and election rules, the appointment of a qualified inspector, and the use of SB 323's mandatory new forms - but that's the basic structure. And again, this timeline is longer than that required by law, but it provides sufficient time to prepare for and properly conduct the election. Given SB 323's shall-void paradigm, "getting it right" is critical.

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