Article 5Record Inspection
Section § 5200
This law section defines what counts as “association records,” which include various financial documents like balance sheets, income statements, and tax returns, as well as meeting minutes, member lists, and governing documents. The section also outlines what consists of “enhanced association records,” such as invoices and bank statements, and specifies what “association election materials” are, like ballots and voter lists. It clarifies that these records must follow specific accounting methods and provides guidelines on how some materials should be stored and accessed.
Section § 5205
This law requires associations to make their records available for members to inspect and copy. Members can have someone else do this for them if they appoint that person in writing. If there's no office in the community, the association and member must agree on a place to do this. If they can't agree, the association must mail the documents, with the member paying for any copying and mailing costs upfront. The association can charge up to $10 per hour (max $200) for redacting sensitive info from enhanced records. Members can choose to receive documents electronically, and any electronic copies must be unchangeable.
Section § 5210
This law states that members of an association have the right to inspect various records of the association within specific time periods. They can inspect the current and past two fiscal years' records, while minutes from member and board meetings are always available for inspection. When a member requests records, recent records should be accessible within 10 business days, while older records have up to 30 days. Special rules apply for certain records and minutes from decision-making committees. No liability is placed on associations for not keeping records created before January 1, 2006, according to these rules.
Section § 5215
This law explains when an association can withhold or hide information from its records. They can do this if sharing the information might lead to identity theft, fraud, break privacy laws, or if the information is legally protected, like attorney-client communications. They also can't share other sensitive details like financial records, disciplinary actions, or personal data. However, they must share information about employee pay, but without personal details like names or social security numbers. If they deny information, they must explain why in writing. The law also protects the association and its members from being sued for privacy breaches unless there's intentional or careless wrongdoing.
Section § 5216
This law requires any association, like a homeowners' association, to protect the address and identity of members who are part of the Safe at Home program. This program is designed to keep addresses confidential for safety reasons. Associations must use a substitute address provided by the Secretary of State for all communications and must not disclose any identifying information such as name, property address, or email. They also have to ensure this information is not accessible on community lists or directories and must keep the member's participation in the program confidential.
Section § 5220
If you're part of an association, you can choose not to share your contact details like your name, property address, email, and mailing address. To do this, you must notify the association in writing that you'd prefer them to contact you in a different way as described in another specific section of the Corporations Code. This choice remains until you decide to change it.
Section § 5225
If you're a member of an association and you want the membership list, you must explain why you need it, and your reason must be linked to your rights or interests as a member. If the association thinks you'll use the list for something else, they can refuse your request. But, if they do, and you take legal action, the association must prove you would have used the list for unrelated purposes.
Section § 5230
This law says that records from an association, like a homeowners' association, can't be sold or used for business purposes if it's not related to a member's interest. If someone breaks this rule, the association can sue for damages or to stop the wrongful acts. Also, associations can’t sell or share a member's personal information without their consent unless required by law. Members can sue if their info is misused, and they can get their legal fees covered if they win. Similarly, associations can recover their costs if they enforce these rules successfully in court.
Section § 5235
If you belong to a group or association and they won't let you see or copy their records unfairly, you can take them to court. If the court agrees with you, they can make the association pay your legal fees and might fine them up to $500 for each time they refused your request. You can even take this issue to small claims court if the amount you're asking for fits within that court's limits. However, if the association wins the case because your complaint is found to be frivolous or unreasonable, they can make you pay for their legal costs.
Section § 5240
This law section outlines the rules for members of associations and their rights to access records. It overrides certain parts of the Corporations Code if there's a conflict. Members can see financial and membership records unless overridden by another part. It also applies to related organizations or nonprofits providing services to the community. However, it doesn't apply to new developments where a majority of directors are tied to the developers, but it does kick in 10 years after the first sale to the public.