06 | 13 | 2007 Posted By Molly Foley-Healy

California Legislature Considering Mandatory Board Member Education

During the current 2007 legislative session in California, the legislature has been considering a bill (SB 948) that would require board members of community associations to complete educational course work.  In particular, if signed into law, SB 948 would require every member of an association board - as of January 1, 2009 - to complete at least one educational course during their first full term of service on the board and a minimum of one course every four calendar years thereafter.  The educational coursework contemplated by the legislature would be related to "decisional and statutory law" regarding community associations.  The bill would permit associations to pay for or reimburse board members for attending this course work.  SB 948 has been put on the "inactive file" for this year in order to resolve issues relating to caps on costs associated with the course work and exemptions being requested by industry stakeholders.  SB 948 is expected to be taken up again by the California legislature in 2008 and proponents will be pushing hard for passage of the bill. 
 
SB 948 was sponsored by the California Legislative Action Committee of Community Associations Institute. Several other states have been looking into the possibility of instituting educational requirements for members of association boards.  HindmanSanchez supports mandatory education as one way to ensure that boards of associations have the tools they need to understand their role, carry out their fiduciary duties, and to appropriately balance the interests between the individual homeowner and the association as a whole. 
Written By:Julie McFadden On June 13, 2007 2:44 PM

What? Attorneys supporting this bill? Not a shocker when you consider they just happen to offer these types of classes for a fee. Kind of smacks of conflict of interest. Hard enough getting board members, require they attend a course and we will have no one to volunteer.

Written By:steve susman On June 13, 2007 4:12 PM

That's a good Calif. legislative proposal. However, I'd augment it by requiring all commnity assn. directors/officers/managers to have an annual psychiatric examination, in order to confirm that each of them is on the ok side of imminent mental imbalance! If those persons aren't looney-tunes before taking those positions with their respective HOAs, they soon will be! Steve Susman, Pelican Pointe HOA,Denver.

Written By:Maria Johnson On June 13, 2007 4:38 PM

Horray!!! for SB948 in CA! All board members in all states should be required to take at least 1 class every year they are on the board. I served on our board for 7 consecutive years and attended many classes. It was extremely helpful in dealing with all kinds of situations. None of the 7 members of our current board has attended any classes, and most do not have previous "board" experience from anywhere and it shows!!

I would definitely support any legislation in CO for board education. And it should not be attached to CCIOA as there are still some associations out here that are not required to comply with CCIOA.

Written By:Ronald S Bella On June 13, 2007 8:37 PM

I would certainly hope that this not succeed. Although I understand the benefits of requiring a greater level of competence among board members, it would be my fear that associations would have a much more difficult time getting people to volunteer to be board members. Although I have taken part in quite a number of classes that have assisted me in understanding my obligations I am afraid that if this were a requirement in Colorado that I would be alone on the board.

Written By:C On June 13, 2007 9:16 PM

Mandatory education sounds nice in theory. But it'd be another barrier to recruitment and retention of board members.

Our association already has an issue where board members can't step down because there are no volunteers to replace them. If CO instituted mandataory education, I'm certain the issue of finding someone willing to volunteer to be on the board would become an even bigger issue.

Written By:Christel Pfeiffer On June 13, 2007 10:18 PM

While the intentions of this bill are highly commendable, the practical aspect is questionable. It is already difficult to enlist responsible board members. If, in addition, a certain training should be required, most boards would be operating with illegal board members.
Good intentions, but impractical and an enormous burden to the few responsible homeowners representing the core of the board.

Written By:Chris Breggin On June 14, 2007 9:29 AM

This strikes me as a very bad idea. We have a hard time already getting people to commit to the board. Now we're going to tell them they have to fit classes into their schedule too?

I manage a 3-unit association with a 3-member board. Are we going to tell people that they have to take classes when they close on a unit there?

Don't get me wrong, I like the idea of board members getting more educated. I think the allowance for reimbursement is plenty, though.

Perhaps a size restriction? You need to take classes to be on the board of a "large" association. Maybe use the classifications regarding required audits from the '05 SB100?

Just my 2 cents.

Written By:Ed On June 20, 2007 9:56 AM

RE: SB 948
Education is good, this would do two things, one educate the members and two it would encourage and or challenge all owners to be more proactive and more involved.
Ed