As you may know, Assembly Bill 502 (“AB 502”) passed this year and will likely impact your association. AB 502 took effect, beginning January 1, 2022, and we want you and your community to be prepared.
NEW OR REVISED ELECTION RULES, ELECTION BY ACCLAMATION, ETC.
Under AB 502, among other substantial changes to the California Civil Code, associations may consider directors to be elected by acclamation, if the election is uncontested (i.e., the number of nominees is not more than the number of vacancies up for election). This means that the association no longer has to go through the time and considerable expense of holding an election, preparing secret ballots, hiring an inspector of elections, etc., when the outcome of the election is known for all intents and purposes.
Previously, the Civil Code only allowed election by acclamation for communities consisting of 6,000 separate interests or more. This law expands it to all associations. However, in order to implement election by acclamation, AB 502 requires certain pre-meeting notice requirements to be met.
AB 502 also reinstates associations’ ability to enforce term limits (i.e., the maximum number of terms or sequential terms that a director may serve). Furthermore, new law revises the timeframe by which an association must respond to a petition from the members calling for a special meeting (i.e., to recall the board, etc.).
The Civil Code requires all associations to have Election Rules in full force and effect. Without Election Rules that are in compliance with the law and up-to-date with AB 502, associations risk legal challenge and unnecessary expenditures associated with same.
*Keep in mind that under Civil Code Section 5105, the Election Rules cannot be amended less than ninety (90) days prior to an election. If your election is within ninety (90) days, note that your previous Election Rules (if any) will still govern that election.
We can draft a new set of Election and Voting Rules and the accompanying documents which includes, but is not limited to, the Candidate Nomination Form, an Election Timeline, and the above-mentioned pre-election notices.
Contact our office for a special fixed fee quote for your Association. We look forward to working with you to protect and manage your community!