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    SB-546
    Housing & Homelessness

    Common interest developments: accounting.

    Introduced
    CA
    ∙
    2025-2026 Regular Session
    0
    0
    Track
    Track

    Key Takeaways

    • Requires homeowners association boards to conduct all financial reviews during formal board meetings.
    • Eliminates the option for individual board members to review financial documents independently.
    • Mandates that monthly financial document reviews must occur with the full board present.

    Summary

    Senator Grayson's proposal to modify financial oversight procedures for common interest developments would eliminate provisions allowing board members to conduct financial reviews outside of formal meetings. The legislation targets Section 5501 of the Civil Code, which currently permits individual board members or subcommittees to review financial documents independently, provided these reviews receive subsequent board ratification.

    Under existing law, boards of directors for homeowners' associations and similar entities must conduct monthly reviews of account statements, reconciliations, and ledgers. The current code allows these reviews to occur through two alternative methods: individual board members examining documents independently, or a subcommittee consisting of the treasurer and at least one other member conducting the review. Both approaches require formal ratification at the next board meeting.

    The repeal would require all financial document reviews to take place during official board meetings, eliminating the flexibility for independent or subcommittee reviews. This change would affect how nonprofit corporations and unincorporated associations managing common interest developments structure their financial oversight processes, requiring boards to incorporate these reviews into their regular meeting agendas.

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Housing
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Housing
    Hearing has not been scheduled yet
    Introduced
    Senate Floor
    Introduced
    Introduced. Read first time. To Com. on RLS. for assignment. To print.

    Contacts

    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Eloise ReyesD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Tim GraysonD
    Senator
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Maria DurazoD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Kelly SeyartoR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    0 of 12 row(s) selected.
    Page 1 of 3
    Select All Legislators
    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Profile
    Eloise ReyesD
    Senator
    Committee Member
    Profile
    Tim GraysonD
    Senator
    Bill Author
    Profile
    Maria DurazoD
    Senator
    Committee Member
    Profile
    Kelly SeyartoR
    Senator
    Committee Member
    Profile
    Dave CorteseD
    Senator
    Committee Member
    Profile
    Rosilicie Ochoa BoghR
    Senator
    Committee Member
    Profile
    Steve PadillaD
    Senator
    Committee Member
    Profile
    Aisha WahabD
    Senator
    Committee Member
    Profile
    Jesse ArreguinD
    Senator
    Committee Member
    Profile
    Christopher CabaldonD
    Senator
    Committee Member
    Profile
    Sasha Renee PerezD
    Senator
    Committee Member

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Tim Grayson
    Tim GraysonD
    California State Senator
    10% progression
    Bill has been formally introduced and read for the first time in its house of origin (2/20/2025)

    Key Takeaways

    • Requires homeowners association boards to conduct all financial reviews during formal board meetings.
    • Eliminates the option for individual board members to review financial documents independently.
    • Mandates that monthly financial document reviews must occur with the full board present.

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Tim Grayson
    Tim GraysonD
    California State Senator

    Summary

    Senator Grayson's proposal to modify financial oversight procedures for common interest developments would eliminate provisions allowing board members to conduct financial reviews outside of formal meetings. The legislation targets Section 5501 of the Civil Code, which currently permits individual board members or subcommittees to review financial documents independently, provided these reviews receive subsequent board ratification.

    Under existing law, boards of directors for homeowners' associations and similar entities must conduct monthly reviews of account statements, reconciliations, and ledgers. The current code allows these reviews to occur through two alternative methods: individual board members examining documents independently, or a subcommittee consisting of the treasurer and at least one other member conducting the review. Both approaches require formal ratification at the next board meeting.

    The repeal would require all financial document reviews to take place during official board meetings, eliminating the flexibility for independent or subcommittee reviews. This change would affect how nonprofit corporations and unincorporated associations managing common interest developments structure their financial oversight processes, requiring boards to incorporate these reviews into their regular meeting agendas.

    10% progression
    Bill has been formally introduced and read for the first time in its house of origin (2/20/2025)

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Housing
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Housing
    Hearing has not been scheduled yet
    Introduced
    Senate Floor
    Introduced
    Introduced. Read first time. To Com. on RLS. for assignment. To print.

    Contacts

    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Eloise ReyesD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Tim GraysonD
    Senator
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Maria DurazoD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Kelly SeyartoR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    0 of 12 row(s) selected.
    Page 1 of 3
    Select All Legislators
    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Profile
    Eloise ReyesD
    Senator
    Committee Member
    Profile
    Tim GraysonD
    Senator
    Bill Author
    Profile
    Maria DurazoD
    Senator
    Committee Member
    Profile
    Kelly SeyartoR
    Senator
    Committee Member
    Profile
    Dave CorteseD
    Senator
    Committee Member
    Profile
    Rosilicie Ochoa BoghR
    Senator
    Committee Member
    Profile
    Steve PadillaD
    Senator
    Committee Member
    Profile
    Aisha WahabD
    Senator
    Committee Member
    Profile
    Jesse ArreguinD
    Senator
    Committee Member
    Profile
    Christopher CabaldonD
    Senator
    Committee Member
    Profile
    Sasha Renee PerezD
    Senator
    Committee Member