The following points were agreed to by the members of the subcommittee during the April 15 work session:

• The Business Judgment Rule should be the standard of care for all Boards as noted in the SC- Non Profit Corporations Act (SCNPCA).
• In keeping financial records community associations should be required to use Generally Accepted Accounting Principles or "Accounting Principles that are acceptable for the community associations individual circumstances" also as outlined in the SCNPCA.
• Permits, plans, bids, individual accounts of members would not be required to be kept and disclosed to other members. Email address of members would not be required to be disclosed unless the member specifically uses their email address as their contact address of record.
• The name, addresses and telephone number of all board members will be disclosed to a member.
• Reasonable fees for actual copying costs could be charged to members requesting documents. The time period to provide requested documents to members was increased from 5 to 15 business days.
• The Rights of members was clarified
• The Reserve language requiring developers to perform a Reserve Study and fund it was omitted from the bill.
• Each association would be required to register with the Department of Consumer Affairs (DCA) with a fee of $1.00 per unit with NO cap. So an association of 5000 homes would pay a $5000 registration fee annually.
• If a member disputed the action of their association and used the DCA's Appeal process it would "Stay" any enforcement provisions. In other words if a member parked their RV on their front lawn and this was against the association's Rules and Regulations the member would under the present language in the bill be permitted to keep the RV on their front lawn until all of the DCA's remedies were exhausted which could take many months.
• The Realtors provided language that was accepted by the subcommittee that would portion out common expenses to those members who benefited." Any common expenses benefiting less than all the lots shall be specially assessed equitably among the lots so benefited, as determined by the Board."
• The bill would not require the disclosure of the governing documents to a perspective buyer.
• A fine could not be higher than $100 per occurrence or $1000 cumulative.
• Personnel records, contracts in negotiation, and documents pertaining to attorney client privilege were not put off limits to review by a member.
• A three-tiered system of Dispute Resolution was enacted: The first tier was the community associations own Internal Dispute Resolution, which must be exhausted before seeking an outside remedy. The second tier was a three-member panel of volunteers. And the third was mediation within the DCA. It was made clear that anyone could seek a remedy in a court of law at any time.

• The per unit cost with no cap;
• The Realtor assessment language;
• The "no sanctions" until all remedies are exhausted provision;
• The lack of requiring the disclosure of governing documents to prospective buyers;
• The failure to include language to require developers to conduct a Reserve Study and fund it prior to turn over to the property owners.

• Senate Judiciary staff to revise Bill;
• Subcommittee members will review draft;
• The subcommittee will forward to the full Judiciary Committee with a recommendation (scheduled to be heard 4/21);
• If the Judiciary Committee Committee's report is favorable, the Bill then goes to the floor of the entire Senate;
• The Bill must be read on the floor of the Senate three times; a process that can take as little as three days;
• If the Bill passes the Senate, it then goes to the House of Representatives to be assigned to a committee and go through the same process of a hearing and committee work.