INTRODUCED BY   Assembly Member Torres

                        FEBRUARY 22, 2013

   An act to amend Section 5110 of, and to add Section 5117 to, the
Civil Code, relating to common interest developments.


   AB 1360, as introduced, Torres. Common interest developments:
electronic voting.
   Existing law, the Davis-Stirling Common Interest Development Act,
defines and regulates common interest developments, which include
community apartment projects, condominium projects, planned
developments, and stock cooperatives. These provisions require that a
common interest development be managed by an association and that
elections related to the governance or administration of the common
interest development conform to specified requirements, including,
among other things, the requirement that the association adopt rules
to allow one or more inspectors to appoint or oversee independent 3rd
parties to verify signatures and count and tabulate votes. Existing
law authorizes a secret paper ballot to be distributed and voted upon
by the membership without a meeting, and imposes other requirements
relating to proxies and secret ballots. Existing law authorizes a
member of an association to bring a civil action to enforce his or
her rights and authorizes a court to impose a civil penalty of up to
$500 for a violation of the provisions governing elections.
   This bill would authorize an association to conduct elections or
other membership balloting by electronic voting, as specified, and
would enact related provisions. The bill would require an association
to provide each member with an opportunity to indicate that he or
she will be voting electronically and to provide a member who did not
indicate so with a paper ballot for submission, as specified.
   The bill would also declare the Legislature's intent in this
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


  SECTION 1.  The Legislature finds and declares all of the
   (a) Common interest development association elections are subject
to specific procedures which are more restrictive than the procedures
for other nonprofit corporations that may conduct balloting by
electronic means under Section 7510 of the Corporations Code.
   (b) The procedures set forth in the Davis-Stirling Common Interest
Development Act do not permit the use of electronic voting. The act
requires the use of paper ballots and double envelopes enclosing
those ballots.
   (c) The statutorily prescribed paper ballot voting procedure
failed to increase voter participation. Therefore, common interest
development membership meetings often fail for lack of quorum.
   (d) Election quorums would be more easily achieved using
electronic balloting.
   (e) Under existing law, the entire election process must be
repeated until quorum is achieved, which costs the association
significantly more money.
   (f) Authority for the use of electronic voting would give
associations and their members an option which could save postage and
paper costs while preserving natural resources.
  SEC. 2.  Section 5110 of the Civil Code is amended to read:
   5110.  (a) The association shall select an independent third party
or parties as an inspector of elections. The number of inspectors of
elections shall be one or three.
   (b) For the purposes of this section, an independent third party
includes, but is not limited to, a volunteer poll worker with the
county registrar of voters, a licensee of the California Board of
Accountancy, or a notary public. An independent third party may be a
member, but may not be a director or a candidate for director or be
related to a director or to a candidate for director. An independent
third party may not be a person, business entity, or subdivision of a
business entity who is currently employed or under contract to the
association for any compensable services unless expressly authorized
by rules of the association adopted pursuant to paragraph (5) of
subdivision (a) of Section 5105.
   (c) The inspector or inspectors of elections shall do all of the
   (1) Determine the number of memberships entitled to vote and the
voting power of each.
   (2) Determine the authenticity, validity, and effect of proxies,
if any.
   (3) Receive ballots  , or receive the tally report from an
electronic balloting service provider  .
   (4) Hear and determine all challenges and questions in any way
arising out of or in connection with the right to vote.
   (5) Count and tabulate all votes  , including the votes
indicated on the tally report received pursuant to paragraph (3)
   (6) Determine when the polls shall close, consistent with the
governing documents.
   (7) Determine the tabulated results of the election.
   (8) Perform any acts as may be proper to conduct the election with
fairness to all members in accordance with this article, the
Corporations Code, and all applicable rules of the association
regarding the conduct of the election that are not in conflict with
this article.
   (d) An inspector of elections shall perform all duties
impartially, in good faith, to the best of the inspector of election'
s ability, and as expeditiously as is practical. If there are three
inspectors of elections, the decision or act of a majority shall be
effective in all respects as the decision or act of all. Any report
made by the inspector or inspectors of elections is prima facie
evidence of the facts stated in the report.
  SEC. 3.  Section 5117 is added to the Civil Code, to read:
   5117.  Notwithstanding subdivision (a) of Section 5115,
subdivision (a) of Section 5120, or Section 5125, the association may
conduct elections or other membership balloting by electronic voting
conducted pursuant to Section 7510 of the Corporations Code. The
association shall provide each member with an opportunity to indicate
that he or she will be voting electronically. The association shall
provide a member who did not indicate that he or she would be voting
electronically with a paper ballot, which shall be submitted by the
member directly to the inspector or inspectors of elections at the
meeting at which the votes will be counted.