The Fifty-fifth First Regular Session started on Monday, January 11, 2021 and is scheduled to adjourn on April 24, 2021. It’s been an interesting year at the Arizona Legislature so far! This session has been dominated by adoption of the budget and COVID-19/politically-charged issues.

Yesterday, the Arizona legislature sent Senate Bill 1377 to Governor Ducey to sign. This bill will protect Arizona’s business owners (including HOAs and condos), hospitals and nursing homes from frivolous COVID-19 lawsuits. If Governor Ducey signs this bill, plaintiffs suing businesses for COVID-19 infections will have to prove gross negligence or willful misconduct (which is a very high standard).

Our firm is also closely watching the following HOA/Condo bills (Note: these bills have not yet been transmitted to Governor Ducey):

HB2030
FIRST RESPONDER FLAGS
This bill would add a flag that represents one or more categories of first responders to the list of flags that an Association cannot prohibit. Applies to Planned Communities and Condominiums.
In Senate Minority Caucus 03/9/2021

HB2052
HOMEOWNERS’ ASSOCIATIONS: POLITICAL; COMMUNITY ACTIVITY
This bill would prevent an Association from prohibiting or unreasonably restricting a unit owner’s ability to peacefully assemble and use private or common elements if done in compliance with reasonable restrictions for use of the property adopted by the Board of Directors. The members may organize to discuss Association business. A Member may invite a political candidate or non-member guest to speak at the assembly. This bill also has a technical correction to make the language defining political sign clearer. “Political sign” would mean: 1. A sign that attempts to influence the outcome of an election, including supporting or opposing the recall of a public officer or supporting or opposing the circulation of a petition for a ballot measure, question or proposition or the recall of a public officer. 2. A sign regarding any activity to elect or remove condominium directors or to circulate or oppose petitions for actions in the condominium or in support of or opposition to condominium ballot measures or other questions. Applies to Planned Communities and Condominiums.
In Senate Second Read 02/22/2021

HB2170
WRITS OF GARNISHMENT; ATTORNEY FEES
This bill would allow garnishments to request accrued attorney fees including the fees for the garnishment in a garnishment action if those fees are allowed by the judgment or contract. This bill would also require that the Judgment Creditor report legal fees accrued during the reporting period.
In Senate Second Read 03/03/2021

SB1379
VACATION RENTALS; SHORT-TERM RENTALS; ENFORCEMENT
This bill would allow a city or town to impose a civil penalty against the owner for every thirty days the owner fails to provide contact information. A city or town shall provide thirty days’ notice to the owner before imposing the initial civil penalty. A city or town may require the owner of a vacation rental or short-term rental to maintain liability insurance appropriate to cover the vacation rental or short-term rental. A city or town may impose a civil penalty against the owner of a vacation rental or short[1]term rental of up to an amount equal to one night’s rent for the lodging accommodation as advertised on an online lodging marketplace for the first verified violation, an amount equal to two nights’ rent for the lodging accommodation as advertised on an online lodging marketplace for the second verified violation and an amount equal to three nights’ rent for the lodging accommodation as advertised on an online lodging marketplace for the third and any subsequent verified violation received by the same vacation rental or short-term rental property within the same twelve-month period. Applies to Planned Communities and Condominiums.
In Minority Caucus 03/23/2021

SB1722
POLITICAL SIGNS; CONDOMINIUMS; PLANNED COMMUNITIES
This bill would extend the time a sign could be left up to fifteen days after the general election or if the sign is for a candidate in a primary election who does not advance to the general election, fifteen days after the primary election. Applies to Planned Communities and Condominiums.
In Minority Caucus 03/23/2021

For a full summary of all HOA/Condo-related bills we are tracking in this year’s legislature, please click here. Stay-tuned for updates as we continue to track the bills throughout the legislative process. Please contact Beth Mulcahy, Esq. with any questions at bmulcahy@mulcahylawfirm.com.