SENATE FILE 297

BY  JOCHUM

(COMPANION TO LSB 1073HH BY ISENHART)

A BILL FOR

An Act relating to the actions of certain nonprofit corporations and horizontal property regimes and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 499B.15, subsection 2, Code 2011, is amended to read as follows:
   2.  If the form of administration is a board of administration, board meetings must be open to all apartment owners except for meetings between the board and its attorney with respect to proposed or pending litigation where the contents of the discussion would otherwise be governed by the attorney-client privilege. Notice of each board meeting must be mailed or delivered to each apartment owner at least seven days before the meeting. Each notice shall contain the date, time, place, and purpose of the meeting. Minutes of meetings of the board of administration must be maintained in written form or in another form that can be converted into written form within a reasonable time. The official records of the board of administration must be open to inspection and available for photocopying at reasonable times and places, unless the record or a portion of a record contains the personal information of a co-owner and is deemed confidential upon unanimous vote of the board of administration. Such confidential records shall, however, be open to inspection and available for photocopying if ordered by a court. Any action taken by a board of administration at a meeting that is in violation of any of the provisions of this subsection is not valid or enforceable.  In any judicial action, the board of administration shall have the burden of proving that the requirements of this subsection have been met.
   Sec. 2.  Section 504.823, Code 2011, is amended to read as follows:
   504.823  Call and notice of meetings.
   1.  Unless the articles or bylaws of a corporation, or subsection 3 or 5, provide provides otherwise, regular meetings of the board may be held without notice.
   2.  Unless the articles, bylaws, or subsection 3 or 5provide provides otherwise, special meetings of the board must be preceded by at least two days’ notice to each director of the date, time, and place, but not the purpose, of the meeting.
   3.  In corporations without members, any board action to remove a director or to approve a matter which would require approval by the members if the corporation had members shall not be valid unless each director is given at least seven days’ written notice that the matter will be voted upon at a directors’ meeting or unless notice is waived pursuant to section 504.824.
   4.  Unless the articles or bylaws provide otherwise, the presiding officer of the board, the president, or twenty percent of the directors then in office may call and give notice of a meeting of the board.
   5.  Notwithstanding any provision of this chapter to the contrary, homeowners’ association board meetings shall be open to all members except for meetings between the board and its attorney with respect to proposed or pending litigation where the contents of the discussion would otherwise be governed by the attorney-client privilege. Notice of each board meeting shall be mailed or delivered to each member and to each director at least seven days before the meeting. Each notice shall contain the date, time, place, and purpose of the meeting. Any action taken by a board at a meeting that is in violation of this subsection is not valid or enforceable. In any judicial action, the homeowners’ association board shall have the burden of proving that the requirements of this subsection have been met. For purposes of this subsection, “homeowners’ association” means a corporation responsible for the operation of an area of real property comprised of land and buildings used primarily for human habitation, that consists of parcel owners or their agents, and in which membership in the corporation is a mandatory condition of parcel ownership.
   Sec. 3.  Section 504.1602, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  7.  Notwithstanding any provision of this chapter to the contrary, a homeowners’ association board, under section 504.823, subsection 5, may refuse inspection or copying of a record or a portion of a record relating to the personal information of a member upon unanimous vote of the board, unless otherwise ordered by a court.
   Sec. 4.  APPLICABILITY.  This Act applies to homeowners’ association board meetings and horizontal property regime board of administration meetings occurring on or after July 8, 2011.
EXPLANATION
   This bill applies to horizontal property regimes (condominiums) under Code chapter 499B and to homeowners’ associations organized under the revised Iowa nonprofit corporation Act, Code chapter 504. The bill requires homeowners’ association board meetings to be open to all members except for meetings between the board and its attorney with respect to proposed or pending litigation where the contents of the discussion would otherwise be governed by the attorney-client privilege. The bill also requires notice of each board meeting to be mailed or delivered to each member and to each director at least seven days before the meeting. Each notice must contain the date, time, place, and purpose of the meeting. Any action taken by a board at a meeting that is in violation of the bill is not valid or enforceable. The bill defines “homeowners’ association” as a corporation responsible for the operation of an area of real property comprised of land and buildings used primarily for human habitation, that consists of parcel owners or their agents, and in which membership in the corporation is a mandatory condition of parcel ownership.
   The bill provides that in a judicial action, the homeowners’ association board has the burden of proving that the requirements relating to meetings and meeting notices have been met.
   The bill provides that a homeowners’ association board may refuse inspection or copying of a record or a portion of a record relating to the personal information of a member upon unanimous vote of the board, unless ordered by a court.
   The bill also includes similar provisions for the contents of meeting notices, burden of proof requirements, and record inspection limitations for horizontal property regimes under Code chapter 499B.
   The bill applies to homeowners’ association board meetings and horizontal property regime board of administration meetings occurring on or after July 8, 2011.