Thursday, July 07, 2005

SB 186 Senate Bill - Bill Analysis
Fred Pilot sent this link to a California legislative bill analysis dealing with use of association funds for campaign purposes in association elections. There is some interesting language in the analysis, quoting the bill's author, which ai assume is Senator Battin:

Common interest developments (CIDs) . . . are powerful
contractual institutions that help maintain their
residents' property values by enforcing local regulations .
. . When operating as intended, they maintain order as well
as afford relief to local municipalities by providing
homeowners with necessities such as paved roads, water, and
street lights. They may also offer benefits, such as
recreational centers.

Governed by elected boards, CIDs act much like
quasi-governments by levying fees, or "assessments," to
gain the revenues needed for the association to fulfill its
obligations. This authority places a large amount of power
into the hands of the elected board members.
Unfortunately, California law is not specific concerning
the oversight of elections held within CIDs, opening the
possibility for serious abuses of power.

One such instance is when a sitting board or individual
board member uses association funds to pay for
"informational" newsletters that are just thinly veiled
campaign pieces. This is not the purpose for which
assessments are levied, and it gives an unfair advantage to
the incumbents. This is akin to a city council member
using city funds to finance their own campaign, or a
legislator running for office using his or her block grant
. . .

Though many associations have already adopted stringent
guidelines in their articles of incorporation and/or
bylaws, the lack of statutory direction leaves gaping
loopholes open to exploitation. SB 186 addresses this
problem, and in conjunction with SB 61 will serve to
guarantee the sanctity of the ballot box in common interest
developments.

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