Bill Text: CA AB1360 | 2013-2014 | Regular Session | Amended

California Assembly Bill 1360 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Common interest developments: electronic voting.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2014-06-24 - In committee: Set, first hearing. Failed passage. [AB1360 Detail]

Download: California-2013-AB1360-Amended.html

BILL NUMBER: AB 1360	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 25, 2013

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.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1360, as amended, 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  , if electronic voting is to be
conducted,  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   ballots  , as specified.
   The bill would also declare the Legislature's intent in this
regard.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (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 
 that  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   shall
 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   shall  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
following:
   (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
  voting results  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   voting results 
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. 
   (e) As used in this section:  
   (1) "Electronic balloting service provider" means a business that
meets all of the following requirements:  
   (A) Is an independent third party that is not affiliated with the
association management or members.  
   (B) Is insured for liability.  
   (C) Protects the secrecy of ballots.  
   (D) Protects the anonymity of the voter by ensuring that members'
names are not listed when the votes are tallied and submitted to the
association by the electronic balloting service provider.  
   (E) Produces a record verifying dates and times that votes were
cast.  
   (F) Provides to a member a secure confirmation of the member's
electronically cast vote.  
   (2) "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. 
  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  subdivision (a) of
 Section 7510 of the Corporations Code.  The 
 If electronic voting is to be conducted in accordance with this
section, the  association shall provide each member with an
opportunity to indicate that he or she will be voting electronically.
 For a member who indicated that he or she will be voting
electronically, not less than 30 days prior to the voting deadline,
the association shall provide to the member the ballot and any
related material by electronic transmission. Member responses shall
be returned to the association by electronic transmission by the
voting deadline.  The association  shall provide
  , for  a member who did not indicate that he or
she would be voting electronically  , shall provide the member
 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
  pursuant to Section 5115  .