SEC. 3. Section 5850 of the Civil Code is amended to read:

(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. Monetary penalties shall be reasonable.

(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 lesser of the following:
-- (1) The monetary penalty stated in the schedule of monetary penalties or supplement that is in effect at the time of the violation.
-- (2) One hundred dollars ($100) per violation.

(d)
-- (1) Notwithstanding subdivision (c), the board may impose a penalty stated in the schedule of monetary penalties or supplement that is in effect at the time of the violation that is greater than one hundred dollars ($100) per violation, if the violation may result in an adverse health or safety impact on the common area or another association member’s property.
-- (2) Before imposing a penalty on a violation pursuant to this subdivision, the board shall make a written finding specifying the adverse health or safety impact in a board meeting open to the members.

(e) A late charge or interest shall not be charged to a member for a monetary penalty.

(f) 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.

So... yeah I still don't know unfortunately.

Edit: Formatting, (c) turns into (c) by default, lol

[–] Kazumara@discuss.tchncs.de 1 points 1 week ago

I found an FAQ by an Association Management Company (professional HOA support people maybe?) that proposes to ensure rewriting the HOA rules to clearly state that each daily occurrence is a separate violation as a "fix" for this new law (which they hate of course):

Are daily fines permitted?
The amendments to Section 5850 state that the $100 fine cap is per violation. Therefore, daily fines are not permitted. However, what constitutes a “violation” is not addressed in the law. Associations should consider revising their fine and enforcement policies to eliminate ambiguity and expressly state that each day a violation remains uncured constitutes a separate violation subject to a distinct fine. In using this approach, the notice of hearing should identify each day the noncompliance as a separate violation, with the date of each violation clearly stated. At the hearing, the board should consider each item and decide and issue a fine (if appropriate) for each violation. Keep in mind that if the violation is cured by the date of the hearing (including health or safety related violations), or if the violation is of a nature that could not be cured by the time of the hearing and the owner has entered into a financial commitment to cure the violation, the owner cannot be fined, and no disciplinary action may be taken.

Of course they are not impartial here. And I don't know how it would go in a lawsuit. But it seems like a lot of HOAs might try this.