The Arizona Legislature opened the Fifty-fourth Second Regular Session on Monday, January 13, 2020. Our firm anticipates that there will be numerous community association bills introduced this legislative session. Every week during the legislative session, Mulcahy Law Firm P.C., will provide this summary of proposed bills impacting community associations.

If you would like to be involved in the legislative process, please go to the Arizona Legislature website, www.azleg.gov, to find lists of legislators, phone numbers, and calendars regarding committee work. Or, please feel free to contact Beth Mulcahy, Esq. any time with questions regarding the status of bills or the legislative process.
Please stay tuned for legislative developments over the next 6 months!

SB1001- HOMEOWNERS’ ASSOCIATIONS; PAYMENT COUPON BOOKS

This bill amends the language of A.R.S. §33-1256(L) and §33-1807(L) from “the Association shall provide a statement of account” to “the Association may provide a statement of account”

Applies to both condos and planned communities.

SB1337- HOMEOWNERS’ ASSOCIATIONS; SOLAR, WATER DEVICES

This bill would prevent an Association from prohibiting the installation of a solar energy device, water saving device or indoor or indoor or outdoor water saving practice. 

SB1412- 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 both condos and planned communities.

SB1479- ONLINE LODGING; REGULATION; PROPERTY CLASSIFICATION

This bill would repeal the law preventing cities, towns and counties from placing restrictions on vacation or short term rentals. This bill also simplifies the civil penalty process for renting a lodging without a current action privilege tax license.

SB1490- SHORT-TERM RENTAL PROPERTIES; CLASSIFICATION

This bill would change property classification for class one property. For the purposes of taxation, the following description would be a subclass of class one property:

Real and personal property and improvements that are used for residential purposes, that are solely leased or rented to lodgers for periods of less than thirty days and that are valued at full cash value, except for:

(a) Property that is occupied by the owner of the property as the owner’s primary residence and is included in class three.
(b) Property for residential purposes that is leased or rented and included in class four.

HB2001- ONLINE HOME SHARING; REPEAL

This bill would repeal A.R.S. §9-500.39 which would mean a city or town could restrict or prohibit vacation rentals or short-term rentals.

HB2027- HOMEOWNERS’ ASSOCIATIONS; EVAPORATIVE COOLERS

This bill would prevent an Association from prohibiting the installation of an evaporative cooler that is designed primarily for use as a residential cooling device.

HB2059- HOMEOWNERS’ ASSOCIATIONS; BILLING STATEMENTS; WAIVER

This bill amends the language of A.R.S. §33-1256(L) and §33-1807(L) to state that an Association does not need to provide a statement of account if there is no amount due or if the unit owner provides written notice to the Association that the owner waives the right to receive statements of account. The owner may reinstate the right to receive statements of account by providing written notice to the Association.

Applies to both condos and planned communities.

HB2085- 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.

HB2085- VACATION RENTALS; SHORT-TERM RENTALS; REGULATION

This bill amends the limitation on short term rentals so a county cannot prohibit vacation rentals or short term rentals but can prohibit or restrict to commercial zones investor owned properties. Investor owned properties are vacation or short term rentals that are not the owner’s primary or secondary residence as determined by the County Assessor.

HB2176- CONDOMINIUMS; PLANNED COMMUNITIES; WRITE-IN CANDIDATES

This bill would require the Board of Directors to provide for and accept write in candidates for election to any position on the Board of Directors, other than a Director appointed by the Declarant notwithstanding any provision of an Association’s Documents.

HB2483- HOAS; MEETING TECHNOLOGY; VOTING RIGHTS

This bill proposes changes to the open meeting law and voting requirements for condos and planned communities. It establishes that any communication between a quorum of the Board for the sole purpose of establishing an agenda for the meeting does not violate open meeting laws if there is no discussion or deliberation on those agenda items before the meeting.

All draft minutes of any open meeting or open portion of any Board meeting shall be made available to any unit owner upon request not later than fifteen business days after the meeting occurs.

The bill would also make it so a ballot cannot be accepted at a meeting by anyone other than the voting unit owner.

Ballots that include the election of Board members must identify the number of seats to be filled, the names of all qualified candidates for those seats, and if cumulated voting will be used, if allowed in the documents.

If online voting is used it must:

  1. Authenticate the unit owner’s identity.
  2. Authenticate the validity of each electronic vote to ensure the vote is not altered in transit.
  3. Transmit a receipt to each owner who casts an electronic vote.
  4. Store the electronic votes for recount, inspection and review purposes.
  5. The Association shall ensure the Integrity of the voting process including preventing ballot tampering, accurate ballot count.
  6. Ensure that preliminary voting results are not disclosed to any unit owner, including board members who have not yet voted.

If the Association is found to have violated this chapter in conducting elections or ballot measures, the court may invalidate the election or ballot measure as deemed appropriate by the court.

Notwithstanding any provisions in the association documents, an association or Board of directors may suspend an owners voting rights or eligibility for membership on the Board only for the reason that the owner has failed to pay one or more assessments.

Applies to both condos and planned communities.

HB2651- HOA; RENTAL INFORMATION; VIOLATION; PENALTY

This bill proposes changes to the disclosures related to rentals. If a unit owner or unit owner’s agent fails to disclose to the Association the tenant information then the tenancy is presumed to be in violation and the association may impose a monetary fine in the full amount of the monies paid by the tenant.

Applies to both condos and planned communities.

HB2702- TRESPASSING; CIVIL UNMANNED AIRCRAFT

This bill would add unmanned aircraft (drones) to the definition of entry for trespassing. 

HB2722- ADMINISTRATIVE LAW JUDGE DECISIONS; REVIEW

This bill would remove the agency’s ability to reject or modify the administrative law judge’s decision.

HB2875- REGULATION; SHORT-TERM RENTALS

This bill proposes changes to the disclosures related to rentals. It would require that contact information for the owner of a vacation rental be printed in bold twenty-four point font either on the front door or in a location that is visible and accessible to the public if there is something that restricts access to the front door such as a fence. A city or town may impose a $50.00 fine for each day that a vacation rental or short term rental is occupied for violation of this rule.

This bill will also:

• Restrict the maximum number of adult occupants allowed on the vacation rental or short-term rental property at any one time to not more than two adults per bedroom, up to four bedrooms, plus two additional adults per one thousand square feet of livable space in excess of three thousand square feet of livable space of the residence.

• Require the installation of safety and monitoring equipment that monitors and detects the level of noise on the property of the vacation rental or short-term rental. The equipment must be installed inside all vacation rentals and short-term rentals and in the outside yard or unenclosed balcony of all properties that are vacation rentals or short-term rentals. The equipment must have the capability of notifying the owner or the owner’s designee if the level of noise at the property is unreasonable or in violation of the municipal noise ordinance. Safety and Monitoring equipment is not required in an owner-occupied residential home offered for transient use or if the owner or the owner’s designee is elsewhere on the property. For a violation of a noise restriction, the Owner or the owner’s designee shall notify the occupant of the noise violation. Notice may be made by telephone call or text message. If the noise violation continues for thirty minutes, the owner or the owner’s designee shall notify the occupant of the noise violation in person. For a verified violation of this paragraph, a city or town may impose a Civil penalty.

• Prohibit smoking outside of the vacation rental or short-term rental within one hundred feet of a residential structure.

• Restrict occupants from checking in to the vacation rental or short-term rental without the presence of the owner or the owner’s designee. The owner or the owner’s designee shall meet the occupant in person at the vacation rental or short-term rental before or at check in to review property rules and deliver keys or entry mechanisms.

• Prohibit occupants of a vacation rental or short-term rental from parking on public or private streets if on-property parking is available. for a verified violation of this paragraph, a city or town may impose a civil penalty of $100 for each day that the vacation rental or short-term rental is occupied.

• Prohibit vacation rentals or short-term rentals from advertising to exceed the occupancy limit of the dwelling or for any nonresidential use such as a special event that would otherwise require a permit or license. For a verified violation of this subsection, a city or town may impose a civil penalty of $50 per day for each day the violation occurred.