Email Your Disclosures

In 2009 the Governor signed AB 899, expanding the rights of HOAs to send electronic disclosures to their members. However, the new law contains several restrictions and caveats.

From the Wine Country Seminar — Prior to January 1, 2010, the Davis-Stirling Act allowed electronic (email) distribution of only the notices related to rule changes. Now, an association can use email distribute the new Disclosure Document Index and the documents listed on the Disclosure Document Index in addition to the rule change notices; but only to members that have given prior consent, in a form that meets specific requirements, to receiving the notices by email. Civil Code §1350.7

Documents can be electronically delivered only to members who have consented to email delivery in a manner that meets the requirements of the Corporations Code. The consent must be in writing and provide an email address, it must clearly state whether it applies to just one delivery or to certain categories of documents, and it must state that it can be revoked and give the procedures for revoking consent. The email transmission must create a record that can be retrieved, reviewed and retained. The email transmission must also be in a form that can be printed and must state that a member has a right to obtain a paper copy of the documents. Corporations Code §20

Email delivery is still not permitted for ballots, meeting notices, pre-lien and collection notices, hearing and violation notices, or requests for alternative dispute resolution. Newsletters and other communications not controlled by Davis-Stirling may be distributed by email.

Missed the Wine Country Seminar? Catch the full 2010 Statute and Case Law Update at our South Bay Seminar on April 17th. Sign up online by April 5th to get 2009 prices, or download the registration form. Visit the event page for details.