POA OK with 1963 law, according to attorney

Member Jim Parsons questions why the POA didn’t switch to a newer law.

A POA member who has sued the association several times was at last week’s board meeting to ask why the organization did not adopt the Nonprofit Act of 1993. Jim Parsons, who introduced himself as chairman of the Bella Vista Patriots, said he was disappointed with the Property Owners Association.

After the membership rejected the assessment increase last November, Parsons attended a POA meeting to ask if the organization had adopted the Nonprofit Corporation Act of 1993. According to Parsons, that legislation would require the use of paper ballots in membership elections and therefore the electronic ballots used were illegal. Doug McCash, the POA’s staff attorney, said he would look into the issue.

McCash said the POA was formed under the Nonprofit Corporation Act of 1963 and had the choice of adopting the newer act or not. On Thursday, McCash told the board that he had researched the Nonprofit Act of 1993 and discussed his findings with the Rules and Regulations Committee. They agreed to leave the POA under the jurisdiction of the 1963 law.

In a phone conversation after the meeting, Parsons admitted he had another reason to push the POA toward the newer law.

“In the the newer act,” he said, “it makes it easier to dissolve the POA. The state law would

supersede their clubhouse rules.”

He added that it doesn’t make sense for the state to give organizations the choice of whether to comply with a statute like the newer nonprofit act. He

said he’s been discussing that situation with Arkansas Sen. Jim Hendren.

McCash issued a written statement after the meeting: “The Bella Vista POA has been operating under the Nonprofit Corporation Act of 1963 since its inception over 50 years ago. Following comment recently by a member, I have re-reviewed the Act and am confident the Association

is in conformance with the law. The Association will continue striving to conduct itself in accordance with current federal and Arkansas state laws.”

McCash said that since the 1963 legislation doesn’t prohibit electronic ballots, they are legal and the last election will stand. He also commented on Parsons’ charge that the POA has been in violation of the 1963 statute.

According to Parsons, each change to the POA bylaws should have been approved by the Benton County Circuit Court: McCash disagrees.

“It would not be feasible for the courts to review every policy change of a nonprofit and approve it before it is implemented,” he said.

In other business, the board quickly approved a list of policy changes that were described as modernizing and “ensuring uniform usage of terms.” The policy changes are part of a long-term project involving all the governing documents.

They also approved a request from Golf Maintenance Manager Keith

Ihms to waive the three-bid requirement for a special mower that is safe for 30-degree slopes. Two courses, the Highlands and Scotsdale, would share the mower, which is only available from one company. Ihms negotiated a discount. The board approved