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Electronic Notice
Starting January 1, 2010, many notices, disclosures and documents may be delivered electronically to any member who has agreed to that method of delivery.

Unrevoked Consent Required. Before an association can electronically distribute documents, notices and disclosures described above, it must receive the recipient's unrevoked written consent. The consent must comply with all the requirements of Corporations Code §20, which includes a clear written statement to the recipient as to:
  • any right of the recipient to have the record provided or made available on paper or in nonelectronic form,
  • whether the consent applies only to that transmission, to specified categories of communications, or to all communications from the corporation, and

  • the procedures the recipient must use to withdraw consent.

Electronic Delivery Defined. The Davis-Stirling Act defines electronic delivery to mean "email, facsimile, or other electronic means." (Civ. Code §1350.7(b)(3).) Other electronic means include posting on an electronic message board or network which the association has designated for those communications, together with a separate notice to the recipient of the posting. (Corp. Code §20.) If a document is delivered by electronic means, delivery is complete at the time of transmission.

Approved Documents.
As provided for in Civil Code §1350.7(a), the following documents may be distributed to members electronically, subject to their individual approval:
  • Assessment & Reserve Funding Disclosure Summary (form),
  • Pro Forma Operating Budget or Pro Forma Operating Budget Summary,
  • Assessment Collection Policy,
  • Notice/Assessments and Foreclosure (form),
  • Insurance Coverage Summary,
  • Board Minutes Access,
  • Alternative Dispute Resolution (ADR) Rights (summary),
  • Internal Dispute Resolution (IDR) Rights (summary),
  • Architectural Changes Notice,
  • Secondary Address Notification Request,
  • Monetary Penalties Schedule,
  • Reserve Funding Plan (summary),
  • Review of Financial Statement, and
  • Annual Update of Reserve Study.

In addition, as provided for in Civil Code §1357.130 and §1357.140, the following may also be distributed electronically:

  • Notice of proposed rule changes,
  • Notice of adopted rule changes, and

  • Notice of the results of an election to reverse a rule change.

Board Meetings. Email notice of board meetings has not been directly addressed by the statute. However, case law can be applied to the issue.

Records Inspection. Inspecting the association's books and records in electronic form is a separate issue.

Adams Kessler PLC
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