HOAs CAN NOW VOTE ELECTRONICALLY
HOAs should consider passing the sample resolution-appearing below–or a facsimile thereof, if the HOA intends to implement electronic voting. This sample resolution has been proposed for HOAs by GVR’s legal counsel, Wendy Ehrlich. She was responsible for crafting the original language of AZ HB 2592 which goes into effect on August 6, 2016. The Board of Directors approved the Resolution on Tuesday May 24, 2016 (Exhibit). A letter was sent by the GVR Board President thanking Representative Chris Ackerly for sponsoring and championing House Bill 2592.
This bill amends ARS §10-3708. Because most-but not all-HOAs fall under both Section 10 and Section 33 of the Arizona Nonprofit Corporation Act, the clause “NOW, THEREFORE, IT IS … ” was added in. Under Section 33, a vote on whether to remove a director has to be taken at a meeting by statute. Any HOA contemplating the adoption of this Resolution should have it reviewed by its own attorney.
WHEREAS, the Association is a nonprofit corporation subject to the provisions of A.R.S. §10-3101, et seq.
WHEREAS, the Association conducts its elections and other votes of members at meetings or by written ballot pursuant to A.R.S. §10-3708 (also known as a “mail-in” ballot);
WHEREAS, as of August 6, 2016 (“Effective Date”), A.R.S. §10-3708 allows for written ballots to be delivered and cast through an electronic voting system;
NOW, THEREFORE, IT IS HEREBY RESOLVED that when practical and not otherwise prohibited by law, elections and other votes of Association members after the Effective Date shall be conducted through the use of an electronic voting system;
AND, IT IS FURTHER RESOLVED that an ad hoc committee shall be established for the following purposes:
(1) Obtaining cost information from no less than three (3) software providers of electronic voting systems that are capable of all of the following:
a. Authenticating the member’s identity.
b. Authenticating the validity of each electronic vote to ensure that the vote is not altered in transit.
c. Transmitting a receipt to each member who casts an electronic vote.
d. Storing electronic votes for recount, inspection and review purposes; and
(2) Establishing the procedure(s) by which members may obtain and cast ballots through some other means of delivery (U.S. mail, email, etc.) which shall be included in every notice to members of a vote conducted by electronic means.
Adopted at a meeting of the Board of Directors of __________________ on the ___ day of _______________, 20___.