"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. Before adopting or amending an operating rule or changing the fine schedule, the board must "provide written notice of a proposed rule change to the members at least 30 days before making the rule change." The notice must include the text of the proposed rule change and a description of its purpose and effect. Notice is not required if the board 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. Civil Code §1357.130(a).

Method of Notice. The method of providing notice of a rule change is described in Civil Code §1357.130(e) as the methods approved by Civil Code §1350.7.

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.

Emergency Rule Change. If the board 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 30-day noticed waiting period is required. An emergency rule change is effective for 120 days, unless the rule change provides for a shorter effective period. Civil Code §1357.130(d).

ASSISTANCE: For assistance amending your rules and regulations, contact us.