2009 California Civil Code - Section 1357.100-1357.150 :: Article 4. Operating Rules

CIVIL CODE
SECTION 1357.100-1357.150

1357.100.  As used in this article:
   (a) "Operating rule" means a regulation adopted by the board of
directors of the association that applies generally to the management
and operation of the common interest development or the conduct of
the business and affairs of the association.
   (b) "Rule change" means the adoption, amendment, or repeal of an
operating rule by the board of directors of the association.

1357.110.  An operating rule is valid and enforceable only if all of
the following requirements are satisfied:
   (a) The rule is in writing.
   (b) The rule is within the authority of the board of directors of
the association conferred by law or by the declaration, articles of
incorporation or association, or bylaws of the association.
   (c) The rule is not inconsistent with governing law and the
declaration, articles of incorporation or association, and bylaws of
the association.
   (d) The rule is adopted, amended, or repealed in good faith and in
substantial compliance with the requirements of this article.
   (e) The rule is reasonable.

1357.120.  (a) Sections 1357.130 and 1357.140 only apply to an
operating rule that relates to one or more of the following subjects:
   (1) Use of the common area or of an exclusive use common area.
   (2) Use of a separate interest, including any aesthetic or
architectural standards that govern alteration of a separate
interest.
   (3) Member discipline, including any schedule of monetary
penalties for violation of the governing documents and any procedure
for the imposition of penalties.
   (4) Any standards for delinquent assessment payment plans.
   (5) Any procedures adopted by the association for resolution of
disputes.
   (6) Any procedures for reviewing and approving or disapproving a
proposed physical change to a member's separate interest or to the
common area.
   (7)  Procedures for elections.
   (b) Sections 1357.130 and 1357.140 do not apply to the following
actions by the board of directors of an association:
   (1) A decision regarding maintenance of the common area.
   (2) A decision on a specific matter that is not intended to apply
generally.
   (3) A decision setting the amount of a regular or special
assessment.
   (4) A rule change that is required by law, if the board of
directors has no discretion as to the substantive effect of the rule
change.
   (5) Issuance of a document that merely repeats existing law or the
governing documents.

1357.130.  (a) The board of directors shall provide written notice
of a proposed rule change to the members at least 30 days before
making the rule change. The notice shall include the text of the
proposed rule change and a description of the purpose and effect of
the proposed rule change. Notice is not required under this
subdivision if the board of directors determines that an immediate
rule change is necessary to address an imminent threat to public
health or safety or imminent risk of substantial economic loss to the
association.
   (b) A decision on a proposed rule change shall be made at a
meeting of the board of directors, after consideration of any
comments made by association members.
   (c) As soon as possible after making a rule change, but not more
than 15 days after making the rule change, the board of directors
shall deliver notice of the rule change to every association member.
If the rule change was an emergency rule change made under
subdivision (d), the notice shall include the text of the rule
change, a description of the purpose and effect of the rule change,
and the date that the rule change expires.
   (d) If the board of directors determines that an immediate rule
change is required to address an imminent threat to public health or
safety, or an imminent risk of substantial economic loss to the
association, it may make an emergency rule change; and no notice is
required, as specified in subdivision (a). An emergency rule change
is effective for 120 days, unless the rule change provides for a
shorter effective period. A rule change made under this subdivision
may not be readopted under this subdivision.
   (e) A notice required by this section is subject to Section
1350.7.

1357.140.  (a) Members of an association owning 5 percent or more of
the separate interests may call a special meeting of the members to
reverse a rule change.
   (b) A special meeting of the members may be called by delivering a
written request to the president or secretary of the board of
directors, after which the board shall deliver notice of the meeting
to the association's members and hold the meeting in conformity with
Section 7511 of the Corporations Code. The written request may not be
delivered more than 30 days after the members of the association are
notified of the rule change. Members are deemed to have been
notified of a rule change on delivery of notice of the rule change,
or on enforcement of the resulting rule, whichever is sooner. For the
purposes of Section 8330 of the Corporations Code, collection of
signatures to call a special meeting under this section is a purpose
reasonably related to the interests of the members of the
association. A member request to copy or inspect the membership list
solely for that purpose may not be denied on the grounds that the
purpose is not reasonably related to the member's interests as a
member.
   (c) The rule change may be reversed by the affirmative vote of a
majority of the votes represented and voting at a duly held meeting
at which a quorum is present (which affirmative votes also constitute
a majority of the required quorum), or if the declaration or bylaws
require a greater proportion, by the affirmative vote or written
ballot of the proportion required. In lieu of calling the meeting
described in this section, the board may distribute a written ballot
to every member of the association in conformity with the
requirements of Section 7513 of the Corporations Code.
   (d) Unless otherwise provided in the declaration or bylaws, for
the purposes of this section, a member may cast one vote per separate
interest owned.
   (e) A meeting called under this section is governed by Chapter 5
(commencing with Section 7510) of Part 3 of Division 2 of Title 1 of,
and Sections 7612 and 7613 of, the Corporations Code.
   (f) A rule change reversed under this section may not be readopted
for one year after the date of the meeting reversing the rule
change. Nothing in this section precludes the board of directors from
adopting a different rule on the same subject as the rule change
that has been reversed.
   (g) As soon as possible after the close of voting, but not more
than 15 days after the close of voting, the board of directors shall
provide notice of the results of a member vote held pursuant to this
section to every association member. Delivery of notice under this
subdivision is subject to Section 1350.7.
   (h) This section does not apply to an emergency rule change made
under subdivision (d) of Section 1357.130.

1357.150.  (a) This article applies to a rule change commenced on or
after January 1, 2004.
   (b) Nothing in this article affects the validity of a rule change
commenced before January 1, 2004.
   (c) For the purposes of this section, a rule change is commenced
when the board of directors of the association takes its first
official action leading to adoption of the rule change.


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