Common interest developments.

Existing law, the Davis-Stirling Common Interest Development Act, regulates common interest developments. Existing law provides procedures governing the election of members of the board of directors of common interest development associations. Existing law provides for nomination by acclamation in an election of members of the board of directors of the association if certain conditions are satisfied, including that the association permits all candidates to run if nominated. However, an association is authorized to disqualify a person from nomination under certain circumstances, including if the person has been a member of the association for less than one year. This bill would revise and recast common interest development election procedures, including, among other things, limiting certain noticing provisions to the elections of directors and to recall elections, requiring an association to maintain association election materials, as defined, for one year after the date of the election, and specifying that the candidate list is required to include the name and address of individuals nominated as a candidate for election to the board of directors. The bill would include among the permissible reasons for disqualifying a person from nomination if the person has served the maximum number of terms or sequential terms allowed by the association. Existing law requires an association to adopt operating rules for appointing one or 3 independent third parties as inspectors of elections and that allow the inspectors to appoint and oversee additional persons to verify signatures and to count and tabulate votes, provided that the persons are independent third parties. Existing law specifies criteria for who an independent third party may be, including a volunteer poll worker with the county registrar of voters, among others. This bill would require the additional persons to be appointed and overseen by the inspectors of election to also satisfy the criteria of who may be an independent third party. Existing law authorizes and regulates the formation and operation of various corporations, including a nonprofit mutual benefit corporation. Existing law, the Nonprofit Mutual Benefit Corporation Law, requires an officer of the board, upon a written request for a special meeting, to give a specified notice to the members entitled to vote that the special meeting will be held not less than 35 days nor more than 90 days after receipt of the request. This bill would, for a corporation that is a common interest development, require the notice for a special meeting described above to be given not less than 35 days nor more than 150 days after receipt of the request. This bill would incorporate additional changes to Section 7511 of the Corporations Code proposed by AB 663 to be operative only if this bill and AB 663 are enacted and this bill is enacted last. This bill would provide that the changes proposed in Section 1 of this bill, amending Section 5100 of the Civil Code, would take effect only if AB 502 is not enacted, or if AB 502 is enacted but does not add Section 5103 to the Civil Code, as specified.