Originally the condo association gave her some minimal fines, but she was wealthy enough that it was just part of the cost of the party - I'm sure she had bottles of booze that cost more that $100 at her parties. It was only when the condo association changed the rules to implement an escalation series (i.e first violation was $X, second was $2X, third was $4X, etc.) that her behavior started to change.
I get that a lot of people hate HOAs and I understand the reasons, but $100 is essentially nothing to a lot of people in California, which means HOAs will essentially have no enforcement mechanisms. This is especially a problem in multifamily buildings like condos where people are literally living on top of one another.
IMO seems like just another well-intended CA regulation that will cause a lot of negative, poorly thought-out consequences. At the very least I think it would make a lot more sense to have the fine limit be based on the value of the house or something similar, and not a single rate for all of CA.