To see the California legislative bill that relates to this topic go here…HOALAWS.com
Existing law, the Davis-Stirling Common Interest Development Act in the Civil Code, governs the formation and operation of “common interest developments”…i.e., Home Owners Associations (HOA). Existing law requires elections to determine members of the board and other issues regarding an HOA’s governance to be held by secret paper ballots.
The Push for Electronic Voting for HOAs
In response to the demand for more convenient and efficient voting methods, Assembly Bill 2159 was introduced. This bill proposes significant changes to how HOAs in California can conduct their elections by introducing electronic secret ballots.
Key Provisions of AB 2159
Electronic Voting Rules
Assembly Bill 2159 would allow an association to adopt a “rule” (rules do not require a vote of the members) that allows an election by electronic secret ballot unless the association’s governing documents provide otherwise.
If an electronic secret ballot is conducted the bill requires individual notice of the ballot be delivered to each member, including instructions on how to vote by electronic secret ballot. AB 2159 still allows owners to vote by mail or in person.
As recently amended (for the fifth time!), the bill states that electronic voting shall not be used to levy regular or special HOA assessments.
This flexibility ensures that all members, regardless of their preference for traditional or digital voting methods, have the opportunity to participate.
Effectiveness and Irrevocability
The bill would specify that an electronic secret ballot is effective when transmitted and is irrevocable. Where an HOA uses “e-balloting”, it must also snail-mail ballots to owners who have opted out of the electronic voting process.
This provision ensures that the integrity of the voting process is maintained and that all votes are final once cast.
Concerns and Opposition
Potential Drawbacks
Opponents contend that e-balloting doesn’t necessarily mean that more members will vote even though 27 other States allow it, and may not be less costly to the HOA. In addition, opponents claim that a “pilot program” should be tried to prove these aspects before making it a State law that governs more than 50,000 HOAs.
Further, a major election inspection company officer testified that e-balloting should not be in “email” format which can be corrupted.
Addressing Legal Challenges
Security and Confidentiality
One of the main legal challenges related to electronic voting for HOAs is ensuring the security and confidentiality of the votes. There are concerns about hacking, vote manipulation, and the potential for technical failures.
Compliance with HOA Voting Rules California
To comply with California HOA law on electronic voting, associations must adhere to the specific requirements outlined in AB 2159. This includes updating governing documents, providing clear instructions, and offering alternative voting options.
Future of California HOA Voting Laws
Because this measure has undergone numerous amendments caused by its less-than-perfect language and by opponents’ cogent arguments raised in testimony in a few legislative hearings, and because there are other procedures required in this bill, I will send you a copy of the current bill if you sign up for these automatic monthly articles and request the bill, AB 2159.
HOALAWS will keep you apprised!
By subscribing to our updates, you’ll receive the latest information on California HOA voting laws, ensuring your association remains compliant and up-to-date.
To see the California legislative bill that relates to this topic go here…HOALAWS.com
UPDATE September 22:
Existing law, the Davis-Stirling Common Interest Development Act in California's Civil Code, governs the formation and operation of “common interest developments”…i.e., Home Owners Associations... (HOA or CID). Existing law requires elections to determine members of the board, and other issues regarding an association’s governance, to be held by secret paper ballots.
Assembly Bill 2159 allows electronic balloting. But it has been amended numerous times due to its initial inartful wording and confusing language. It also caused problems with another bill, AB 2460. Opponents to the measure, as well as legislative staff, have pointed out several problems with the bill and have helped re-write it.
AB 2159 would allow an association board to adopt a “rule” (rules do not require a vote of the members) that allows an election by electronic secret ballot unless the association’s governing documents provide otherwise. If an electronic secret ballot is conducted the bill requires individual notice of the ballot to be delivered to each member, including instructions on how to vote by electronic secret ballot. AB 2159 still allows owners to vote by mail or in person. As recently amended (for the fifth time!), the bill states that electronic voting shall not be used to levy regular or special HOA assessments.
The bill would specify that an electronic secret ballot is effective when transmitted and is irrevocable. Where an HOA uses “e-balloting”, it must also snail-mail ballots to owners who have opted out of the electronic voting process.
Opponents contended that e-balloting doesn’t necessarily mean that more members will vote even though 27 other States allow it, and may not be less costly than paper balloting to the HOA. In addition, opponents prudently suggested that a “pilot program” should be tried to prove the efficacy of the program before making it a State law that governs more than 50,000 HOAs. Further, a major election inspection company official testified that e-balloting should not be in “email” format which can be corrupted. Nevertheless, the bill moved forward.
AB 2159 contains numerous other provisions as it attempts to clean up the former bill which is now law, AB 1458 from last year.
Rather than list all these changes I will gladly email the bill to you upon your request using the “contact” page. The bill barely got passed by deadline time and has been sent to the Governor for his action. I expect him to sign it into law and if so, it will take effect on January 1, 2025.
HOALAWS will keep you apprised on other important bills, such as a related bill, AB 2460. You may wish to share the information with your neighbors, the HOA Board, attorney and management team, if any.
FLASH NEWS !! The Governor signed this bill into law.
