HB 2563 Summary

• Adds two new sections to Chapter 421J establishing cumulative voting procedures for planned community association directors, allowing members to multiply their vote count by the number of director positions and distribute votes among candidates as desired.

• Establishes removal procedures for association directors elected by members, requiring a petition signed by at least 100 units or 25% of unit owners (whichever is less) submitted within seven days of notice, and protection from removal if sufficient cumulative votes are cast against removal.

• Allows boards to remove directors for missing specified numbers of board meetings if this provision is stated in the articles of incorporation, declaration, or bylaws at the beginning of the director's term.

• Amends Chapter 414D to exempt planned community associations from nonprofit corporation cumulative voting and director removal requirements, making Chapter 421J requirements applicable instead.

• Effective date: July 1, 2050.