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2017 ARIZONA LEGISLATIVE UPDATE

All of the laws identified below become effective August 9, 2017.

The following is a summary of bills that were passed by the Arizona legislature this legislative session that could have some impact on, or be of interest to, planned community associations and condominium associations. This information only provides a summary of the bills and the changes to the laws. To determine all changes to the law based on each bill, please refer to the applicable bill.

SB 1060 – Amending Sections 33-1242 and 33-1803, Arizona Revised Statutes; Providing Clarifying Language.

This bill changed A.R.S. 33-1242 and A.R.S. 33-1803 to make it clear that owners can petition for a hearing in the State Real Estate Department (rather than the department of fire, building and life safety).

SB 1175 – Clarified Language in the Transfer Fee Law

This bill added nonprofit organizations that are 501(c)(3) or 501(c)(4) organizations to associations governed by the transfer fee law. (A.R.S. 33-442)

HB 2411 – Amending Various Provisions Relating to Planned Communities and Condominiums (amends A.R.S. 33-440, 33-1248, 33-1250, 33-1260, 33-1804, 33-1806 and 33-1812).

This bill made a number of changes to A.R.S. 33-440, the planned communities statutes and Condominium Act:
  1. Changed the definition of what is a “declaration” under A.R.S. 33-440 (the enforceability of private covenants).
  2. Changed provisions about recording open meetings:
    1. The Association shall not require advance notice of audiotaping or videotaping of open meetings.
    2. The Board may preclude audiotaping or videotaping of open meetings by its rules if the Board audiotapes or videotapes the meeting and makes the unedited audiotape or videotape available to members on request without restrictions on its use as evidence in any dispute resolution process.
  3. Changed requirements for notice of meetings:
    1. The notice shall include the date, time and place of the meeting.
    2. The notice of any annual, regular or special meeting of the unit owners shall state the purpose for which the meeting is called.
  4. Added closed meeting requirements:
    1. Before entering into any closed portion of a board meeting, or when providing notice of a closed board meeting, the board shall identify the paragraph under A.R.S. 33-1248 or A.R.S. 33-1804, subsection A, that authorizes the board to close the meeting.
    2. The following are the paragraphs under A.R.S. 33-1248 and A.R.S. 33-1804:
      1. Legal advice from an attorney for the board or the association. On final resolution of any matter for which the board received legal advice or that concerned pending or contemplated litigation, the board may disclose information about that matter in an open meeting except for matters that are required to remain confidential by the terms of a settlement agreement or judgment.
      2. Pending or contemplated litigation.
      3. Personal, health or financial information about an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association, including records of the association directly related to the personal, health or financial information about an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association.
      4. Matters relating to the job performance of, compensation of, health records of or specific complaints against an individual employee of the association or an individual employee of a contractor of the association who works under the direction of the association.
      5. Discussion of a member’s appeal of any violation cited or penalty imposed by the association except on request of the affected member that the meeting be held in an open session.
  5. Updated the policy language:
    1. The policy language in the law states that the intent of the legislature is that meetings should be conducted openly.
    2. New language states that board members and the community manager should take this policy into account and construe any provision of this section in favor of open meetings.
  6. Changed the signature requirements for elections:
    1. Eliminated the requirement for envelopes and any related materials to be signed when ballots are not secret.
    2. Eliminated the requirement that nonballot-related materials to be signed when ballots are secret.
  7. Clarified language regarding the resale disclosure fee:
    1. Clarified that the $400 fee is to compensate the association for the costs incurred in the preparation and delivery of a statement or other documents furnished by the association for resale disclosure, lien estoppel and any other services related to the transfer or use of the property.
The information contained in this 2017 ARIZONA LEGISLATIVE UPDATE is for informational purposes only and is not specific legal advice or a substitute for specific legal counsel. Readers should not act upon this information without seeking professional counsel.

 

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