(a) Before adopting, amending, or repealing any rule, the executive board shall give all unit owners notice of: (1) its intention to adopt, amend, or repeal a rule and provide the text of the rule or the proposed change; and(2) a date on which the executive board will act on the proposed rule or amendment after considering comments from unit owners.(b) Following adoption, amendment, or repeal of a rule, the association shall notify the unit owners of its action and provide a copy of any new or revised rule.(c) An association may adopt rules to establish and enforce construction and design criteria and aesthetic standards if the declaration so provides. If the declaration so provides, the association shall adopt procedures for enforcement of those standards and for approval of construction applications, including a reasonable time within which the association must act after an application is submitted and the consequences of its failure to act.(d) A rule regulating display of the flag of the United States must be consistent with federal law. In addition, the association may not prohibit display on a unit or on a limited common element adjoining a unit of the flag of this state, or signs regarding candidates for public or association office or ballot questions, but the association may adopt rules governing the time, place, size, number, and manner of those displays.(e) Unit owners may peacefully assemble on the common elements to consider matters related to the common interest community, but the association may adopt rules governing the time, place, and manner of those assemblies.(f) An association may adopt rules that affect the use of or behavior in units that may be used for residential purposes, only to: (1) implement a provision of the declaration;(2) regulate any behavior in or occupancy of a unit which violates the declaration or adversely affects the use and enjoyment of other units or the common elements by other unit owners; or(3) restrict the leasing of residential units to the extent those rules are reasonably designed to meet underwriting requirements of institutional lenders that regularly make loans secured by first mortgages on units in common interest communities or regularly purchase those mortgages.(g) An association's internal business operating procedures need not be adopted as rules.(h) Every rule must be reasonable.Added 2009 , No. 155 (Adj. Sess.), § 38, eff. 1/1/2012.