"Operating Rules" are defined by California's Davis-Stirling Act as any regulation adopted by the board of directors of a condominium or homeowners association that applies to the management and operation of the association or the conduct of its business and affairs. Civil Code §1357.100. This includes pets, parking, use of the common areas, member discipline, architectural standards, election procedures, any schedule of monetary penalties, etc. Civil Code §1357.120(a).

Excluded are decisions relating to common area maintenance, a specific matter (as opposed to a general policy), assessment amounts, a non-discretionary rule change required by law, or a rule that repeats existing law or the association's bylaws, CC&Rs or articles of incorporation. Civil Code §1357.120(b).

Enforceability. As provided for in Civil Code §1357.110, an operating rule is enforceable if:

• in writing,

• within the board's authority,

• consistent with governing law and the associations governing documents,

• adopted in good faith, and

• reasonable.

Notice of Proposed Change. At least 30 days before a vote on adopting or amending an operating rule or change in fine schedule, the board must mail a copy of the proposed change to the members, along with an explanation of their purpose and effect. Civil Code §1357.130(a).

Adoption in Open Meeting. After the 30-day period, the board may adopt the rules at a duly noticed open meeting of the board, taking into consideration any comments made by association members. Civil Code §1357.130(b).

Notice of Adoption. Within 15 days of voting on the rules, the board must notify the membership of the results of the vote. Civil Code §1357.130(c).

Membership Veto. The membership has a limited right to veto new rules and rule changes.