Civ. Code Section 5850
Old Code: 1363(f)
New Code: 5850
Subject: Monetary penalty disclosure
(a) If an association adopts or has adopted a policy imposing any monetary penalty, including any fee, on any association member for a violation of the governing documents, including any monetary penalty relating to the activities of a guest or tenant of the member, the board shall adopt and distribute to each member, in the annual policy statement prepared pursuant to Section 5310, a schedule of the monetary penalties that may be assessed for those violations, which shall be in accordance with authorization for member discipline contained in the governing documents.
(b) Any new or revised monetary penalty that is adopted after complying with subdivision (a) may be included in a supplement that is delivered to the members individually, pursuant to Section 4040.
(c) A monetary penalty for a violation of the governing documents shall not exceed the monetary penalty stated in the schedule of monetary penalties or supplement that is in effect at the time of the violation.
(d) An association shall provide a copy of the most recently distributed schedule of monetary penalties, along with any applicable supplements to that schedule, to any member upon request.
Substantive Changes: The New Code includes clear provision for individual notice (Section 4040) regarding new or revised monetary penalties. Also, the schedule of monetary penalties is included as part of the Annual Policy Statement (Section 5310), and any revisions to same will be distributed as a supplement to the Annual Policy Statement.