Common interest developments: association governance: elections.

(1) Existing law, the Davis-Stirling Common Interest Development Act, governs the formation and operation of common interest developments. Existing law requires common interest developments to be managed by an association. Existing law requires elections regarding specified matters concerning the governance of common interest developments to be held by secret ballot in accordance with certain procedures. Existing law requires an association to adopt certain operating rules that govern elections. Existing law requires an association to select an independent third party as the inspector or inspectors of elections. This bill would authorize an association to adopt an election operating rule that allows an association to utilize an inspector or inspectors of elections, as specified, to conduct an election by electronic secret ballot, as defined, except as specified, and notwithstanding the association's governing documents. The bill would require the rule to permit a member to change their preferred method of voting, as specified, no later than 90 days before an election, among other things. The bill would require the association to deliver individual notice to each member that includes certain information about voting by electronic secret ballot, as specified. The bill would specify that an electronic secret ballot is effective when transmitted, as specified, and irrevocable. This bill would require the inspector or inspectors of elections that conduct an election by electronic secret ballot to ensure, among other things, that the electronic secret ballots provide a method to authenticate the member's identity to the internet-based voting system and a method for the member to confirm that their electronic device can successfully communicate with the internet-based voting system at least 30 days before the voting deadline. The bill would require the internet-based voting system to have the ability to, among other things, authenticate the member's identity and the validity of each electronic secret ballot, and to transmit a receipt to a member that casts an electronic secret ballot. (2) Existing law, for elections of directors and for recall elections, requires an association to provide general notice of specified information at least 30 days before the ballots are distributed. Existing law requires the notice to include, among other things, the date and time by which ballots are to be returned by mail or handed to the inspector or inspectors of elections, the date, time, and location of the meeting at which a quorum will be determined, and a list of all candidates' names that will appear on the ballot. This bill, for an association that allows for voting in an election by electronic secret ballot, as described above, would require the notice to provide the date and time by which electronic secret ballots are to be transmitted to the internet-based voting system and preliminary instructions on how to vote by electronic secret ballot. (3) Existing law requires an association to mail ballots and 2 preaddressed envelopes with instructions on how to return ballots by first-class mail or delivered by the association to every member not less than 30 days prior to the deadline for voting. This bill, for an association that conducts an election by electronic secret ballot, as described above, would make this requirement to mail ballots and envelopes apply only to the members who will vote by written secret ballot, as specified. (4) Existing law authorizes an association to conduct an election entirely by mail, except for the meeting to count the votes or unless otherwise specified in the governing documents. This bill would, instead, authorize the association to conduct an election entirely by mail, electronic secret ballot, or a combination of mail and electronic secret ballot, pursuant to the above-described provisions, notwithstanding any contrary provision in the governing documents, except for the meeting to count the votes. (5) Existing law requires, in an election to approve an amendment to the governing documents, that an association deliver the text of the proposed amendment to the members with the ballot. This bill would, if an association conducts an election to approve an amendment of governing documents by electronic secret ballot, authorize the association to deliver by electronic means the text of the proposed amendment to those members who vote by electronic secret ballot, and would require the association to deliver a written copy of the text of the proposed amendment to those members upon request and without charge, as specified. (6) Existing law requires that an inspector or inspectors of elections, or the designee of an inspector or inspectors of elections, count and tabulate all votes at a properly noticed open meeting of the board or members. Existing law prohibits anyone from opening or otherwise reviewing any ballot before the time and place at which the ballots are counted and tabulated. This bill would additionally prohibit anyone from opening or otherwise reviewing any tally sheet of votes cast by electronic secret ballot before the time and place at which the ballots are counted and tabulated. (7) Existing law requires that the sealed ballots, among other things, remain in the custody of the inspector or inspectors of elections or at a location designated by the inspector or inspectors of elections until after the tabulation of the vote, and until the time allowed for challenging the election has expired, when custody is required to be transferred to the association. Existing law requires the inspector or inspectors of elections to make the ballots available for inspection and review by an association member or the member's authorized representative, upon written request, if there is a recount or other challenge to the election process. This bill would additionally require the tally sheet of votes cast by electronic secret ballot to remain in the custody of the inspector or inspectors of elections. This bill would additionally require the inspector or inspectors of elections to make the tally sheet of votes cast by electronic secret ballot available for inspection or review by an association member or the member's representative. (8) Existing law requires an association to make association records available to members for copying and inspection, as specified. Existing law defines "association records" to include association election materials and also defines "association election materials" to include, among other things, returned ballots. This bill would expand the definition of association election materials to include the tally sheet of votes cast by electronic secret ballot. (9) Existing law requires certain requests be delivered in writing to the association, as specified, to be effective. This bill would additionally require a request to opt out of or opt into electronically voting by electronic secret ballot to be delivered in writing to the association to be effective. (10) This bill would incorporate additional changes to Section 5115 of the Civil Code proposed by AB 2460 to be operative only if this bill and AB 2460 are enacted and this bill is enacted last.