CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 546Introduced by Senator GraysonFebruary 20, 2025 An act to repeal Section 5501 of the Civil Code, relating to common interest developments. LEGISLATIVE COUNSEL'S DIGESTSB 546, as introduced, Grayson. Common interest developments: accounting.Existing law requires the board of directors of a nonprofit corporation or unincorporated association created for the purpose of managing a common interest development to, on a monthly basis, review specified documents, including account statements, reconciliations, and ledgers, unless the associations governing documents impose more stringent standards. Existing law authorizes those review requirements to be met when every individual member of the board, or a subcommittee of the board consisting of the treasurer and at least one other board member, reviews the documents and statements independent of a board meeting, so long as the review is ratified at the board meeting subsequent to the review and that ratification is reflected in the minutes of that meeting.This bill would repeal those provisions authorizing the review requirements to be met when individual members or a subcommittee of the board review the documents and statements independent of a board meeting as described above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 5501 of the Civil Code is repealed.5501.The review requirements of Section 5500 may be met when every individual member of the board, or a subcommittee of the board consisting of the treasurer and at least one other board member, reviews the documents and statements described in Section 5500 independent of a board meeting, so long as the review is ratified at the board meeting subsequent to the review and that ratification is reflected in the minutes of that meeting.
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 546Introduced by Senator GraysonFebruary 20, 2025 An act to repeal Section 5501 of the Civil Code, relating to common interest developments. LEGISLATIVE COUNSEL'S DIGESTSB 546, as introduced, Grayson. Common interest developments: accounting.Existing law requires the board of directors of a nonprofit corporation or unincorporated association created for the purpose of managing a common interest development to, on a monthly basis, review specified documents, including account statements, reconciliations, and ledgers, unless the associations governing documents impose more stringent standards. Existing law authorizes those review requirements to be met when every individual member of the board, or a subcommittee of the board consisting of the treasurer and at least one other board member, reviews the documents and statements independent of a board meeting, so long as the review is ratified at the board meeting subsequent to the review and that ratification is reflected in the minutes of that meeting.This bill would repeal those provisions authorizing the review requirements to be met when individual members or a subcommittee of the board review the documents and statements independent of a board meeting as described above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 546
Introduced by Senator GraysonFebruary 20, 2025
Introduced by Senator Grayson
February 20, 2025
An act to repeal Section 5501 of the Civil Code, relating to common interest developments.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 546, as introduced, Grayson. Common interest developments: accounting.
Existing law requires the board of directors of a nonprofit corporation or unincorporated association created for the purpose of managing a common interest development to, on a monthly basis, review specified documents, including account statements, reconciliations, and ledgers, unless the associations governing documents impose more stringent standards. Existing law authorizes those review requirements to be met when every individual member of the board, or a subcommittee of the board consisting of the treasurer and at least one other board member, reviews the documents and statements independent of a board meeting, so long as the review is ratified at the board meeting subsequent to the review and that ratification is reflected in the minutes of that meeting.This bill would repeal those provisions authorizing the review requirements to be met when individual members or a subcommittee of the board review the documents and statements independent of a board meeting as described above.
Existing law requires the board of directors of a nonprofit corporation or unincorporated association created for the purpose of managing a common interest development to, on a monthly basis, review specified documents, including account statements, reconciliations, and ledgers, unless the associations governing documents impose more stringent standards. Existing law authorizes those review requirements to be met when every individual member of the board, or a subcommittee of the board consisting of the treasurer and at least one other board member, reviews the documents and statements independent of a board meeting, so long as the review is ratified at the board meeting subsequent to the review and that ratification is reflected in the minutes of that meeting.
This bill would repeal those provisions authorizing the review requirements to be met when individual members or a subcommittee of the board review the documents and statements independent of a board meeting as described above.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 5501 of the Civil Code is repealed.5501.The review requirements of Section 5500 may be met when every individual member of the board, or a subcommittee of the board consisting of the treasurer and at least one other board member, reviews the documents and statements described in Section 5500 independent of a board meeting, so long as the review is ratified at the board meeting subsequent to the review and that ratification is reflected in the minutes of that meeting.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 5501 of the Civil Code is repealed.5501.The review requirements of Section 5500 may be met when every individual member of the board, or a subcommittee of the board consisting of the treasurer and at least one other board member, reviews the documents and statements described in Section 5500 independent of a board meeting, so long as the review is ratified at the board meeting subsequent to the review and that ratification is reflected in the minutes of that meeting.
SECTION 1. Section 5501 of the Civil Code is repealed.
### SECTION 1.
5501.The review requirements of Section 5500 may be met when every individual member of the board, or a subcommittee of the board consisting of the treasurer and at least one other board member, reviews the documents and statements described in Section 5500 independent of a board meeting, so long as the review is ratified at the board meeting subsequent to the review and that ratification is reflected in the minutes of that meeting.
The review requirements of Section 5500 may be met when every individual member of the board, or a subcommittee of the board consisting of the treasurer and at least one other board member, reviews the documents and statements described in Section 5500 independent of a board meeting, so long as the review is ratified at the board meeting subsequent to the review and that ratification is reflected in the minutes of that meeting.