AB 2912: Association Finances
AB 2912 was created to protect the financial assets of common interest developments. This bill is meant to help protect against fraud and embezzlement. The three main aspects of this bill are: 1. To require that the association maintain fidelity bond coverage with limits that mirror the most common current lending guidelines. This is to protect the association’s reserves and operating funds from employee theft, including management employees. Every management company should have their own fidelity coverage as well. HMC’s service agreements require both to be in place for the best protection. 2. Prohibit any electronic transfers of funds without approval by the board. Current law requires that two Board members authorize payments made from reserve funds. This goes further to require that the Board approve any electronic transfers of funds, which is essential in today’s banking environment. 3. Require monthly reviews of financial statements. Current law requires the Board to review reconciled bank statements and financial statements at least quarterly: “Review”, not “approve”. This doesn’t mean the Board has to have more meetings. The review doesn’t have to be at a meeting. Looking at the bank statements and financials monthly makes good sense to us. We want the Board to be informed and up to date.
SB 1128: Board Member Elections
SB 1128 will change existing law which allows an association that is required to deliver a document by “individual delivery” or “individual notice” to deliver the email by electronic means if the recipient has consented in writing. This bill now authorizes the recipient to consent to that delivery and revoke that consent by email. In addition, this bill now requires a 28 day general notice by the association before making a new rule.
SB 1265: Director Elections and Procedures
The Senate Bill 1265 is a bill seeking to prohibit California community associations from establishing ANY qualifications for candidates running for Board of Directors. Potential qualifications could be as straight forward as stating that the candidate must be a resident owner, or that the candidate must be in good standing with the community in regard to payment of their assessments and fees. This bill would allow ANYONE to run for the Board of Directors. This is just dumb and should be opposed.
SB 1480: Manager Certification Sunset Elimination
This bill is established by the Department of Consumer Affairs, and seeks to change the rule that the boards have to meet 2 times a year with the department, instead of 3 times. Through this Senate bill, it will allow people to meet efficiently both the department and board, resolve issues and make the right solution.