3.1.2    Good Standing - All Directors must be members of the Association and in Good Standing.  For purposes of qualifying for the Board of Directors, Good Standing shall mean that all of the following apply: the Director shall be current in his or her assessments, shall not have any outstanding fines, penalties or violations; and shall not be adverse to the Association in any threatened or pending litigation.  In the event of a dispute regarding a Director’s “Good Standing” status, the Association shall afford the Director notice and the opportunity for a hearing in accordance with principles of due process embodied in Civil Code Section 1363(h).

3.2       Nomination Procedures.

3.2.1    Members shall have the right to nominate candidates either by a Candidate Nomination Form or from the floor of the annual meeting.

3.2.2    Qualifications for Nomination - In order to be nominated to the Board of Directors, all nominees must meet the qualifications as set forth in paragraphs 3.1.1, 3.1.2, and the Association’s Governing Documents in effect at the time of the nomination.

3.2.3    Self Nomination - Any member of the Association may nominate himself or herself for election to the Board of Directors.

3.2.4    Candidate Nomination Form (“Form”) - Candidates may be nominated for election to the Board either at the annual meeting or by a Nomination Form.  A Candidate Nomination Form will be mailed to each owner a reasonable time before the annual meeting.  Owners interested in serving as a director must complete and return a Form.  Directors who want to serve again must complete and return a Form.  Owners can nominate themselves or another person.  Completed Forms must be returned by the deadline listed on the Form.  Any candidate nominated by another person will be contacted to confirm that he or she agrees to be a candidate.  Only those candidates who are qualified and have returned their Forms on time will be listed on the voting materials (the absentee ballot and the secret meeting ballot).

4.0       Voting and Proxies.

4.1       Voting Rights - Each owner has the right to cast one vote per separate interest owned, on each matter submitted to owners for voting, unless the right to vote has been suspended.  Note that each director vacancy counts as one matter.

4.2       No Cumulative Voting - Neither the Association’s Bylaws nor its Articles of Incorporation allow cumulative voting for election to the Board of Directors.

4.3       Proxy Voting - Owners may assign their rights to vote to someone else by a proxy.  To ensure secret voting, all proxies must have detachable voting directions which are to be kept by the person voting (the proxy-holder).  A proxy is not a ballot.  The proxy-holder must vote by a secret ballot.  Proxies must comply with California law in order to be valid.

4.3.1    Distribution of Proxies - Proxies are not required to be sent out with any general mailings that include ballots.  Proxies may be made available upon request by a member.

4.4       Non-revocable Ballots - Written ballots may not be revoked once they are submitted to the Inspector(s) of Election.  Once written ballots are deposited in the U.S. mail to the Inspector(s) of Election, they are considered non-revocable.

4.5       Loss of Ballot - If an owner loses his/her ballot prior to the annual meeting, they may request another ballot, along with the appropriate envelopes from the Inspector(s) of Election, but they must sign a statement, under penalty of perjury that the original ballot was either lost, destroyed or never received.  The Inspector(s) of Election shall maintain a record of each request and, if it is determined that the owner voted twice, even by mistake, neither ballot would be counted.

4.6       Secrecy of Ballots - An owner who signs or otherwise marks his/her ballot with an identifying mark, waives his/her right to secrecy.  The Association is not responsible for removing or redacting personal information that is added to the ballots by the owner.

4.7       Voting Period - The polls will open when the ballots are sent to the members and will close 2 hours after commencement of the annual meeting, or any adjournment thereof, or the final collection of ballots for counting, whichever occurs first.

4.8       Tabulation of Ballots - At the close of the polls, if the number of nominees is equal to or fewer than the number of positions open for the Board of Directors, the vote count will be waived and the Inspector(s) of Election will not be required to tabulate the votes.  All nominees will be deemed elected to serve on the Board of Directors.

5.0       Selection of Inspectors of Election.

5.1       The Board will appoint an Inspector or Inspectors of Election; either one or three, within a reasonable time before the annual meeting.

5.2       Civil Code '1363(c)(2) lists individuals who can act as Inspectors of Election.  The Board may expressly authorize the Association’s managing agent to serve as Inspector(s) of Election.  The Board may also appoint a member or members of the Association provided such member is not a member of the Board of Directors or a candidate for the Board of Directors or related to a member of the Board of Directors or a candidate for the Board of Directors.

5.3       Removal of Inspectors of Election - The Board of Directors may remove and replace any Inspector of Election prior to the tabulation of votes if an Inspector resigns or if the Board reasonably determines that an Inspector will not be able to perform his or her duties impartially and in good faith.

 

 

 

 

 

 

APPENDIX TO ELECTION RULES
RESTATEMENT OF CIVIL CODE SECTIONS 1363.03(b)-(j) and 1363.04

6.0       Applicability.

6.1       Applicability of Rules [Civil Code '1363.03(b)] - Notwithstanding any other law or provision of the governing documents, an election within a common interest development shall be held by secret ballot in accordance with the procedures set forth in this section regarding any of the following: (1) election of directors, (2) changes to the governing documents, (3) owner votes on assessments, and (4) owner votes on granting exclusive use rights to portions of the general common areas.

6.2       Secret Ballots [Civil Code '1363.03(b)] - Owner voting on the items listed in 6.1 above will be by secret ballot.

7.0       Inspectors of Election [Civil Code '1363.03(c)(1)] - The Association shall select an independent third party or parties as an Inspector of Election.  The number of Inspectors of Election shall be one or three.

7.1       Who Can Act as an Inspector of Election [Civil Code '1363.03(c)(2)] - The individuals include, but are not limited to, the following:

(1)        A volunteer poll worker with the county registrar of voters;
(2)        A licensee of the California Board of Accountancy;
(3)        A notary public; and
(4)        A member of the Association provided such member is not a member of the Board of Directors or a candidate for the Board of Directors or related to a member of the Board of Directors or a candidate for the Board of Directors.
(5)        An independent third party may NOT be a person who is currently employed or under contract to the Association for any compensable services UNLESS expressly authorized by the rules of the Association adopted pursuant to paragraph (5) of subdivision (a) of the Statute.

7.2       Duties of Inspectors of Election [Civil Code '1363.03(c)(3)].

(a)        Determine the number of memberships entitled to vote and the voting power of each;
(b)        Determine the authenticity, validity, and effect of proxies, if any;
(c)        Receive ballots;
(d)        Hear and determine all challenges and questions in any way arising out of or in connection with the right to vote;

 

(e)        Count and tabulate all votes;
(f)         Determine when the polls shall close;
(g)        Determine the result of the election;
(h)        Perform any acts as may be proper to conduct the vote with fairness to all members.

7.3       Good Faith of Inspector(s) of Election [Civil Code '1363.03(4)] - An Inspector of Election shall perform his or her duties impartially, in good faith, to the best of his or her ability, and as expeditiously as is practical.  The decision or act of a majority of the Inspectors of Election shall be effective in all respects as the decision or act of all.  Any report made by the Inspector(s) of Election is prima facie evidence of the facts stated in the report.

8.0       Proxies.

8.1       Proxy Instructions [Civil Code '1363.03(4)(d)] - Any instruction given in a proxy issued for an election that directs the manner in which the proxy holder is to cast the vote shall be set forth on a separate page of the proxy that can be detached and given to the proxy holder to retain.  The proxy holder shall cast the member’s vote by secret ballot.

9.0       Absentee Ballots.

9.1       Voting by Absentee Ballots [Civil Code '1363.03(4)(e)] - Members may vote by absentee ballot.  The Association will mail two pre-addressed envelopes with instructions on how to return ballots to all members at least 30 days before the annual meeting.  The law requires the following procedures with regard to absentee ballots:

9.1.1    Envelopes - Ballots and two pre-addressed envelopes with instructions on how to return ballots shall be mailed by first-class mail or delivered by the Association to every member.

9.1.2    Confidentiality - In order to preserve confidentiality, a voter may not be identified by name, address, lot, parcel, or unit number on the ballot.

9.1.3    Model Procedures - The Association shall use as a model those procedures used by California counties for ensuring confidentiality of voter absentee ballots.

9.1.4    Absentee Ballot Procedure [Civil Code '1363.03(4)(e)(1)] - The ballot itself is not signed by the voter, but is inserted into an envelope that is sealed.  This envelope is inserted into a second envelope that is sealed.  In

 

the upper left hand corner of the second envelope, the voter prints and signs his or her name, address, and lot, or parcel, or unit number that entitles him or her to vote.

9.1.5    Delivery of Ballot [Civil Code '1363.03(4)(e)(2)] - The second envelope is addressed to the Inspector or Inspectors of Election, who will be tallying the votes.  The envelope may be mailed or delivered by hand to a location
specified by the Inspector or Inspectors of Election.  The member may request a receipt for delivery.

10.0     Ballots Generally.

10.1     Counting Ballots [Civil Code '1363.03(4)(f)] - All votes shall be counted and tabulated by the Inspector(s) of Election in public at a properly noticed open meeting of the board of directors or members.  Any candidate or other member of the association may witness the counting and tabulation of votes.  No person, including a member of the association or an employee of the management company, shall open or otherwise review any ballot prior to the time and place at which the ballots are counted and tabulated.

10.2     Announcing Results of Vote [Civil Code '1363.03(4)(g)] - After counting the votes, the Inspector(s) will promptly report to the board of directors and shall record the results in the minutes of the next meeting of the board of directors.  The results shall be available for review by members of the association.  Within 15 days of the election, the board shall publicize the results of the election in a communication directed to all members.

10.3     Custody of Ballots [Civil Code '1363.03(4)(h)] - The sealed ballots at all times shall be in the custody of the Inspector(s) of Election or at a location designated by the Inspector(s) until after the tabulation of the vote, at which time custody shall be transferred to the association.

10.4     Ballot Retention [Civil Code '1363.03(4)(i)] - After tabulation, election ballots shall be stored by the association in a secure place for no less than 1 year after the date of the election.

10.5     Recount or Challenge [Civil Code '1363.03(4)(i)] - In the event of a recount or other challenge to the election process, the association shall, upon written request, make the ballots available for inspection and review by association members or their authorized representatives.  Any recount shall be conducted in a manner that shall preserve the confidentiality of the vote.

 

 

11.0     Use of Association Funds for Campaign Purposes.

11.1     Association Funds Shall Not Be Used for Campaign Purposes [Civil Code '1363.04(a)] - Association funds shall not be used for campaign purposes in connection with any association board election.  Funds of the association shall not be used for campaign purposes in connection with any other association election
except to the extent necessary to comply with duties of the association imposed by law.

11.2     Definition of Campaign Purposes [Civil Code '1363.04(b)] – “Campaign Purposes” include, but are not limited to, the following:

(1)        Expressly advocating the election or defeat of any candidate that is on the association election ballot.

(2)        Including the photograph or prominently featuring the name of any candidate on a communication from the association or its board, excepting the ballot and ballot materials, within 30 days of an election, provided that this is not a campaign purpose if the communication is one for which subdivision (a) of Section 1363.03 requires that equal access be provided to another candidate or advocate.