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CIVIL CODE
SECTION 4340-4370

Operating Rules

4340.  For the purposes of this article:
   (a) "Operating rule" means a regulation adopted by the board that
applies generally to the management and operation of the common
interest development or the conduct of the business and affairs of
the association.
   (b) "Rule change" means the adoption, amendment, or repeal of an
operating rule by the board.



4350.  An operating rule is valid and enforceable only if all of the
following requirements are satisfied:
   (a) The rule is in writing.
   (b) The rule is within the authority of the board conferred by law
or by the declaration, articles of incorporation or association, or
bylaws of the association.
   (c) The rule is not in conflict with governing law and the
declaration, articles of incorporation or association, or bylaws of
the association.
   (d) The rule is adopted, amended, or repealed in good faith and in
substantial compliance with the requirements of this article.
   (e) The rule is reasonable.



4355.  (a) Sections 4360 and 4365 only apply to an operating rule
that relates to one or more of the following subjects:
   (1) Use of the common area or of an exclusive use common area.
   (2) Use of a separate interest, including any aesthetic or
architectural standards that govern alteration of a separate
interest.
   (3) Member discipline, including any schedule of monetary
penalties for violation of the governing documents and any procedure
for the imposition of penalties.
   (4) Any standards for delinquent assessment payment plans.
   (5) Any procedures adopted by the association for resolution of
disputes.
   (6) Any procedures for reviewing and approving or disapproving a
proposed physical change to a member's separate interest or to the
common area.
   (7) Procedures for elections.
   (b) Sections 4360 and 4365 do not apply to the following actions
by the board:
   (1) A decision regarding maintenance of the common area.
   (2) A decision on a specific matter that is not intended to apply
generally.
   (3) A decision setting the amount of a regular or special
assessment.
   (4) A rule change that is required by law, if the board has no
discretion as to the substantive effect of the rule change.
   (5) Issuance of a document that merely repeats existing law or the
governing documents.



4360.  (a) The board shall provide general notice pursuant to
Section 4045 of a proposed rule change at least 30 days before making
the rule change. The notice shall include the text of the proposed
rule change and a description of the purpose and effect of the
proposed rule change. Notice is not required under this subdivision
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.
   (b) A decision on a proposed rule change shall be made at a board
meeting, after consideration of any comments made by association
members.
   (c) As soon as possible after making a rule change, but not more
than 15 days after making the rule change, the board shall deliver
general notice pursuant to Section 4045 of the rule change. If the
rule change was an emergency rule change made under subdivision (d),
the notice shall include the text of the rule change, a description
of the purpose and effect of the rule change, and the date that the
rule change expires.
   (d) 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 notice is required, as
specified in subdivision (a). An emergency rule change is effective
for 120 days, unless the rule change provides for a shorter effective
period. A rule change made under this subdivision may not be
readopted under this subdivision.


4365.  (a) Members of an association owning 5 percent or more of the
separate interests may call a special vote of the members to reverse
a rule change.
   (b) A special vote of the members may be called by delivering a
written request to the association. Not less than 35 days nor more
than 90 days after receipt of a proper request, the association shall
hold a vote of the members on whether to reverse the rule change,
pursuant to Article 4 (commencing with Section 5100) of Chapter 6.
The written request may not be delivered more than 30 days after the
association gives general notice of the rule change, pursuant to
Section 4045.
   (c) For the purposes of Section 5225 of this code and Section 8330
of the Corporations Code, collection of signatures to call a special
vote under this section is a purpose reasonably related to the
interests of the members of the association. A member request to copy
or inspect the membership list solely for that purpose may not be
denied on the grounds that the purpose is not reasonably related to
the member's interests as a member.
   (d) The rule change may be reversed by the affirmative vote of a
majority of a quorum of the members, pursuant to Section 4070, or if
the declaration or bylaws require a greater percentage, by the
affirmative vote of the percentage required.
   (e) Unless otherwise provided in the declaration or bylaws, for
the purposes of this section, a member may cast one vote per separate
interest owned.
   (f) A rule change reversed under this section may not be readopted
for one year after the date of the vote reversing the rule change.
Nothing in this section precludes the board from adopting a different
rule on the same subject as the rule change that has been reversed.
   (g) As soon as possible after the close of voting, but not more
than 15 days after the close of voting, the board shall provide
general notice pursuant to Section 4045 of the results of the member
vote.
   (h) This section does not apply to an emergency rule change made
under subdivision (d) of Section 4360.



4370.  (a) This article applies to a rule change commenced on or
after January 1, 2004.
   (b) Nothing in this article affects the validity of a rule change
commenced before January 1, 2004.
   (c) For the purposes of this section, a rule change is commenced
when the board takes its first official action leading to adoption of
the rule change.

1452 W. 9th Street # 3  Upland, CA 91786

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