2014 Changes in the Laws Cheat Sheet final 4.25 · CHEAT SHEET LAWS TAKE EFFECT JULY 24, ... property. Unit owners may also ... The law does not prohibit developers from requesting

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2014 CHANGES IN THE LAWS AFFECTING COMMUNITY ASSOCIATIONS

CHEAT SHEET

LAWS TAKE EFFECT JULY 24, 2014 UNLESS OTHERWISE NOTATED

CHANGES TO RENTAL RESTRICTIONS – SB 1482 REVISED A.R.S. § 33-1806.01, A.R.S. § 33-1260.01. What Community Associations May Do Regarding Rental Activity Owners may rent their homes unless the CC&Rs expressly prohibit rental activity. If an association’s CC&Rs has a rental restriction that contains a rental term limit, the owner must abide by the rental term limit. An owner may designate, in writing, a third party to act as the owner’s agent with respect to association matters. The written designation must be signed by the owner and provided to the community association. The designated representative, however, may not vote on behalf of the owner and may not serve on the Board of Directors. On delivery of the written designation, the association is authorized to conduct all association business relating to the owner’s rental (except issues concerning community association voting) and any notice given by the community association to an owner’s designated agent constitutes notice to the owner. Notwithstanding any provision in the CC&Rs, the association shall not require an owner or the owner’s agent to disclose any information regarding a tenant other than; (1) the name and contact information for any adults occupying the unit; (2) the time period of the lease, including the beginning and ending dates of the tenancy, and (3) a description and the license plate numbers of the tenants’ vehicles. (Age Restricted Communities may ask for ID proving age).

Associations may charge a rental administration fee of no more than $25.00. No other fees are allowed. So long as a community association’s CC&Rs contain the relevant language, community association may now ban sex offenders from renting within a community association. CHANGES TO RENTAL RESTRICTIONS - SB 1482 REVISED A.R.S. § 33-1806.01, A.R.S. § 33-1260.01. What Community Associations May Not Do Regarding Rental Activity Notwithstanding any provision in the CC&Rs, the association is prohibited from doing any of the following: 1. Requiring an owner to provide the association with a copy of the tenant’s rental application, credit report, lease agreement or rental contact or other personal information except as prescribed by the Statute. 2. Requiring the tenant to sign a waiver or other document limiting the tenant’s due process rights as a condition of the tenant’s occupancy of the rental unit. 3. Prohibiting or otherwise restricting an owner from serving on the board of directors based on the owner not being an occupant. 4. Imposing any fee, assessment, penalty or the charge in an amount greater than fifteen dollars ($15.00) for incomplete or late information regarding the information requested by the association. Any attempt by an association to charge a fee, assessment, penalty or other charge that is not authorized by this section voids the fee authorized under this section and voids the requirement to provide the information to the association. Owners may use a Crime Free Lease Addendum; however, community associations may not require the owner to do so. CHANGES TO ASSOCIATION VOTING AND BALLOTS - SB 1482 REVISED A.R.S. § 33-1812 ANDA.R.S. § 33-1250.

This technical change allows associations to allow voting ballots to be returned via e-mail or fax. The technical change also removes the term “absentee” from the ballot.



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POLITICAL SIGN PLACEMENT - SB 1482 REVISED A.R.S. §33-1261(E) – CONDOMINIUMS ONLY. An association shall not prohibit display of a political sign by an owner on the owner’s property. Unit owners may also place signs on doors, windows, patios, balconies and other limited common elements that directly touch the unit (the roof is excluded) Associations may prohibit the display of political signs earlier than seventy-one days before the day of an election and later than three days after an election day. An association may regulate the size of and number of political signs so long as the restriction is not more restrictive than any applicable city, town or county ordinance. If the city, town, or county does not political signs, the maximum aggregate total dimensions of all political signs on a unit owner’s property shall not exceed nine square feet. A “Political Sign” is a sign that supports or opposes the recall of a public officer or supports or opposes the circulation of a petition for a ballot measure, question or proposition or the recall of a public officer. An association shall not require political signs to be commercially produced or professionally manufactured or prohibit the utilization of both sides of a political sign. REQUIREMENT FOR PLANNED COMMUNITIES PROHIBITED - SB 1482 NEW A.R.S. §9-461.15 & A.R.S. § 11-810 – PLANNED COMMUNITIES ONLY. These new laws prohibit county and municipal entities and planning agencies from requiring developers of residential development to create planned communities for their residential developments. The law does not prohibit developers from requesting approval for creating planned community associations regarding their residential development projects. The laws only apply to communities platted after the effective date of the new laws.

NOTICE OF LIEN, CLAIM OF LIEN - SB 1482 REVISED A.R.S. § 22-512. Employees, Officers and Managers of a community association may record Notices of Lien – Notices of Claim of Lien under this new statute if all of the following apply: (a) The Employee, Officer or Manager is specifically authorized in writing by the community association to record notices of lien or notices of claim of lien on behalf of the association and the Employee, Officer or Manager is a certified legal document preparer; (b) The association is the original party to the lien and the lien right is not the result of an assignment of rights. (c) The lien right exists by operation of law pursuant to section action 33-1256 or 33-1807 and is not the result of obtaining a final judgment in an action to which the association is a party. SMALL CLAIM COURT ACTION - SB 1482 REVISED A.R.S. § 22-512 – PLANNED COMMUNITIES AND CONDOMINIUMS. Employees, Officers and Managers of associations appear on behalf of the association in a small claims action if all of the following apply: (a) The employee of the association or the officer or employee of the management company is specifically authorized in writing by the association to appear on behalf of the association; (b) The association is an original party to the small claims action. CHANGES IN THE LAW CONCERNING ADMINISTRATIVE LAW JUDGE HEARINGS - SB 1482 REVISED A.R.S. § 44-2198.01

Arizona Law allows an owner or association to bring disputes concerning the association’s governing documents or Arizona laws that apply to the association, before an Administrative Law Judge of the Department of Fire, Building and Life Safety. The new statute states that on dismissal of a petition at the request of the petitioner before a hearing is scheduled or by stipulation of the parties before a hearing is scheduled, the filing fee shall be refunded to the petitioner.

CRIMINAL ACTIVITY NUISANCE – SB 1482 REVISED A.R.S. §12-991 This new law allows community associations to file suit against the owners of property where their property is used in the continuous commission of a crime and is therefore considered a nuisance.



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SEMI-PUBLIC SWIMMING POOL BARRIER GATES - SB 1305 AMENDING SECTION 1, TITLE 9, CHAPTER 7, ARTICLE 1, A.R.S BY ADDING §9-808 AND AMENDING A.R.S. §11-861. Any new construction or major renovation of a semi-public swimming pool occurring on or after December 31, 2014 must meet the requirements of the applicable city or town code or ordinance regarding locking devices for pool barrier gates. This new section does not apply to a locking device for a pool barrier gate installed on a semi-public pool before January 1, 2015. VEXATIOUS LITIGANTS – HB 2021 AMENDING TITLE 12, A.R.S., BY ADDING CHAPTER 24. In civil cases, at the request of a party or on the court’s own motion, the presiding judge of the Superior Court or a designated judge may declare a pro se litigant to be vexatious. A pro se who is designated as vexatious may not file new pleading, motion, other document without leave of the court. A vexatious pro se engages in vexatious conduct, which includes the following:

1. Repeated filings solely or primarily for the purpose of harassment. 2. Unreasonably expanding or delaying court proceedings. 3. Bringing or defending court actions without substantial justification. 4. Engaging in abuse of discovery or conduct in discovery that results in sanctions

against the pro se. 5. A pattern of making unreasonable, repetitive, and excessive requests for

information. 6. Repeated filing of documents or requests for relief that have been the subject or

previous rulings by the same court in the same litigation.

EXEMPTION FROM TRANSFER FEE – HB 2477 AMENDING A.R.S. §§ 33-1260 AND 33-1806. The following are exempt from the resale and disclosure requirements of A.R.S. 33-1260 and A.R.S. 33-1806:

1. A sale in which a public report is issued pursuant to Sections 32-2183 and 32-2197.02.

2. A sale pursuant to 32-2181.02.

3. Conveyance by recorded deed that bears an exemption listed in Section 11-1134, Subsection B, Paragraphs 3 or 7 (transfers between family members for nominal consideration and transfers between corporate entities for nominal consideration)

On recordation of the deed, and for no additional charge, the Unit Owner shall provide the following information to the Association:

a) Unit Owner’s name. b) Unit Owner’s billing address. c) Unit Owner’s phone number.

Failure of the Unit Owner to provide the above information does not eliminate the exemption under A.R.S. 33-1260 and A.R.S. 33-1806. GOLF CARTS AND NEIGHBORHOOD ELECTRIC VEHICLES – HB 2027 AMENDING A.R.S. §§ 28-721 AND 28-723; AMENDING TITLE 28, CHAPTER 3, ARTICLE 9, A.R.S. BY ADDING § 28-777. In an age-restricted community that is located in an unincorporated area of a county with a population of more than three million people, a person may drive a golf cart or neighborhood electric vehicle on a paved shoulder that is adjacent to a roadway or as close as practicable to the right hand curb or edge of a paved roadway if there is no delineated paved shoulder. With the exception of motorcycles (A.R.S. 29-903), the driver may overtake and pass a golf cart or neighborhood electric vehicle even if the driver’s vehicle shares a lane with the golf cart or neighborhood electric vehicle when the overtaking and passing occur. A person driving a golf cart or neighborhood electric vehicle shall yield the right-of-way to a vehicle that is traveling in the same direction and that is intending to turn right.



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CONSOLIDATION OF COMMON AREAS – HB 2141 AMENDING A.R.S.§ 42-13404. On commencement of changes to a common area, the County Assessor shall automatically consolidate the parcel combinations within the same taxing district. If after review the parcel does not meet the requirement of a common area, the County Assessor may revoke the Section 42-13402 valuation and value the parcel using standard valuation techniques. An HOA retains the right to request a common area valuation. DEFINITION OF A PLANNED COMMUNITY - SB 1148 AMENDING A.R.S. §33-1802. The term “planned community” has been modified to now include a real estate development on which an easement to maintain roadways or a covenant to maintain roadways is held by a non-profit corporation or an unincorporated association of owners. Should you have any questions regarding the Guide, please feel free to attend our 2014 Changes in the Law Lunch and Learn Lecture or e-mail [email protected] or [email protected].

This document is intended to provide general information. It does not and cannot provide specific legal advice. For additional information or answers to questions, you may contact our office at 480-456-1500.

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Senate Engrossed

State of Arizona Senate Fifty-first Legislature Second Regular Session 2014

CHAPTER 83

SENATE BILL 1482

AN ACT

REPEALING SECTION 9-461.15, ARIZONA REVISED STATUTES; AMENDING TITLE 9, CHAPTER 4, ARTICLE 6, ARIZONA REVISED STATUTES, BY ADDING A NEW SECTION 9-461.15; REPEALING SECTION 11-810, ARIZONA REVISED STATUTES; AMENDING TITLE 11, CHAPTER 6, ARTICLE 1, ARIZONA REVISED STATUTES, BY ADDING A NEW SECTION 11-810; AMENDING SECTION 12-991, ARIZONA REVISED STATUTES; REPEALING SECTION 22-512, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 2013, CHAPTER 254, SECTION 15; AMENDING SECTION 22-512, ARIZONA REVISED STATUTES, AS ADDED BY LAWS 1980, CHAPTER 134, SECTION 1; REPEALING SECTION 33-1250, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 2013, CHAPTER 254, SECTION 16; AMENDING SECTION 33-1250, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 2005, CHAPTER 132, SECTION 8 AND CHAPTER 269, SECTION 2; REPEALING SECTION 33-1260.01, ARIZONA REVISED STATUTES; AMENDING TITLE 33, CHAPTER 9, ARTICLE 3, ARIZONA REVISED STATUTES, BY ADDING A NEW SECTION 33-1260.01; REPEALING SECTION 33-1261, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 2013, CHAPTER 254, SECTION 18; AMENDING SECTION 33-1261, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 2012, CHAPTER 242, SECTION 1; REPEALING SECTION 33-1806.01, ARIZONA REVISED STATUTES; AMENDING TITLE 33, CHAPTER 16, ARTICLE 1, ARIZONA REVISED STATUTES, BY ADDING A NEW SECTION 33-1806.01; REPEALING SECTION 33-1812, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 2013, CHAPTER 254, SECTION 20; AMENDING SECTION 33-1812, ARIZONA REVISED STATUTES, AS ADDED BY LAWS 2005, CHAPTER 269, SECTION 8; REPEALING SECTION 41-2198.01, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 2013, CHAPTER 254, SECTION 21; AMENDING SECTION 41-2198.01, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 2006, CHAPTER 324, SECTION 7; RELATING TO CONDOMINIUMS AND PLANNED COMMUNITIES.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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Be it enacted by the Legislature of the State of Arizona: 1 Section 1. Repeal 2 Section 9-461.15, Arizona Revised Statutes, is repealed. 3 Sec. 2. Title 9, chapter 4, article 6, Arizona Revised Statues, is 4

amended by adding a new section 9-461.15, to read: 5 9-461.15. Requirement of planned community prohibited 6 A. THE PLANNING AGENCY OF A MUNICIPALITY IN EXERCISING ITS AUTHORITY 7

PURSUANT TO THIS TITLE SHALL NOT REQUIRE AS PART OF A SUBDIVISION REGULATION 8 OR ZONING ORDINANCE THAT A SUBDIVIDER OR DEVELOPER ESTABLISH AN ASSOCIATION 9 AS DEFINED IN SECTION 33-1802. A SUBDIVIDER OR DEVELOPER SHALL NOT BE 10 PENALIZED BECAUSE A REAL ESTATE SUBDIVISION OR DEVELOPMENT DOES NOT 11 CONSTITUTE OR INCLUDE A PLANNED COMMUNITY. 12

B. A MUNICIPALITY MAY REQUIRE A SUBDIVIDER OR DEVELOPER TO ESTABLISH 13 AN ASSOCIATION TO MAINTAIN PRIVATE, COMMON OR COMMUNITY OWNED IMPROVEMENTS 14 THAT ARE APPROVED AND INSTALLED AS PART OF A PRELIMINARY PLAT, FINAL PLAT OR 15 SPECIFIC PLAN. A MUNICIPALITY SHALL NOT REQUIRE THAT AN ASSOCIATION BE 16 FORMED OR OPERATED OTHER THAN FOR THE MAINTENANCE OF COMMON AREAS OR 17 COMMUNITY OWNED PROPERTY. THIS SUBSECTION APPLIES ONLY TO PLANNED 18 COMMUNITIES THAT ARE ESTABLISHED IN PLATS RECORDED AFTER THE EFFECTIVE DATE 19 OF THIS SECTION. 20

C. THIS SECTION DOES NOT LIMIT THE SUBDIVIDER OR DEVELOPER IN THE 21 ESTABLISHMENT OR AUTHORITY OF ANY PLANNED COMMUNITY ESTABLISHED PURSUANT TO 22 TITLE 33, CHAPTER 16 OR LIMIT A SUBDIVIDER, A DEVELOPER OR AN ASSOCIATION 23 FROM REQUESTING AND ENTERING INTO A MAINTENANCE AGREEMENT WITH A 24 MUNICIPALITY. 25

Sec. 3. Repeal 26 Section 11-810, Arizona Revised Statutes, is repealed. 27 Sec. 4. Title 11, chapter 6, article 1, Arizona Revised Statutes, is 28

amended by adding a new section 11-810, to read: 29 11-810. Requirement of planned community prohibited 30 A. A COUNTY PLANNING AND ZONING COMMISSION IN EXERCISING ITS AUTHORITY 31

PURSUANT TO THIS TITLE SHALL NOT REQUIRE AS PART OF A SUBDIVISION APPROVAL OR 32 ZONING ORDINANCE THAT A SUBDIVIDER OR DEVELOPER ESTABLISH AN ASSOCIATION AS 33 DEFINED IN SECTION 33-1802. A SUBDIVIDER OR DEVELOPER SHALL NOT BE PENALIZED 34 BECAUSE A REAL ESTATE SUBDIVISION OR DEVELOPMENT DOES NOT CONSTITUTE OR 35 INCLUDE A PLANNED COMMUNITY. 36

B. A COUNTY MAY REQUIRE A SUBDIVIDER OR DEVELOPER TO ESTABLISH AN 37 ASSOCIATION TO MAINTAIN PRIVATE, COMMON OR COMMUNITY OWNED IMPROVEMENTS THAT 38 ARE APPROVED AND INSTALLED AS PART OF A PRELIMINARY PLAT, FINAL PLAT OR 39 SPECIFIC PLAN. A COUNTY SHALL NOT REQUIRE THAT AN ASSOCIATION BE FORMED OR 40 OPERATED OTHER THAN FOR THE MAINTENANCE OF COMMON AREAS OR COMMUNITY OWNED 41 PROPERTY. THIS SUBSECTION APPLIES ONLY TO PLANNED COMMUNITIES THAT ARE 42 ESTABLISHED IN PLATS RECORDED AFTER THE EFFECTIVE DATE OF THIS SECTION. 43

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C. THIS SECTION DOES NOT LIMIT THE SUBDIVIDER OR DEVELOPER IN THE 1 ESTABLISHMENT OR AUTHORITY OF ANY PLANNED COMMUNITY ESTABLISHED PURSUANT TO 2 TITLE 33, CHAPTER 16 OR LIMIT A SUBDIVIDER, A DEVELOPER OR AN ASSOCIATION 3 FROM REQUESTING AND ENTERING INTO A MAINTENANCE AGREEMENT WITH A COUNTY. 4

Sec. 5. Section 12-991, Arizona Revised Statutes, is amended to read: 5 12-991. Nuisance; applicability; residential property used for 6

crime; action to abate and prevent; notice; 7 definitions 8

A. Residential property that is regularly used in the commission of a 9 crime is a nuisance, and the criminal activity causing the nuisance shall be 10 enjoined, abated and prevented. 11

B. If there is reason to believe that a nuisance as described in 12 subsection A of this section exists, the attorney general, the county 13 attorney, the city attorney, AN ASSOCIATION OF HOMEOWNERS OR PROPERTY OWNERS 14 ESTABLISHED BY A RECORDED CONTRACT OR OTHER DECLARATION, INCLUDING A 15 CONDOMINIUM ASSOCIATION AS DEFINED IN SECTION 33-1202 AND A PLANNED COMMUNITY 16 ASSOCIATION AS DEFINED IN SECTION 33-1802, or a resident of a county or city 17 who is affected by the nuisance may bring an action in superior court against 18 the owner, the owner's managing agent or any other party responsible for the 19 property to abate and prevent the criminal activity. 20

C. The court shall not assess a civil penalty against any person 21 unless that person knew or had reason to know of the criminal activity. 22

D. An injunction that is ordered pursuant to this article shall be 23 necessary to protect the health and safety of the public or prevent further 24 criminal activity. 25

E. An order shall not affect the owner's interest in the property 26 unless all of the following apply: 27

1. The owner is a defendant in the action. 28 2. The owner knew of the criminal activity. 29 3. The owner failed to take reasonable, legally available actions to 30

abate the nuisance. 31 F. If the owner, the owner's managing agent or the party responsible 32

for the property knows or has reason to know of the criminal activity and 33 fails to take reasonable, legally available actions to abate the nuisance, a 34 governmental authority may abate the nuisance. The court may assess the 35 owner for the cost of abating the nuisance. On recording with the county 36 recorder in the county in which the property is located, the assessment is 37 prior to all other liens, obligations or encumbrances except for prior 38 recorded mortgages, restitution liens, child support liens and general tax 39 liens. A city, town or county may bring an action to enforce the assessment 40 in the superior court in the county in which the property is located. 41

G. For purposes of this section, an owner, the owner's managing agent 42 or the party responsible for the property is deemed to know or have reason to 43 know of the nuisance if the owner, the owner's managing agent or the party 44 responsible for the property has received notice from a governmental 45

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authority of documented reports of criminal offenses occurring on the 1 residential property. 2

H. A law enforcement agency, a city attorney, a county attorney, the 3 attorney general or any other person who is at least twenty-one years of age 4 may serve the notice provided for in subsection G of this section, either 5 personally or by certified mail. If personal service or service by certified 6 mail cannot be completed or the address of the person to be notified is 7 unknown, notice may be served by publishing the notice three times within ten 8 consecutive days in a newspaper of general circulation in the county in which 9 the property is located. In all cases a copy of the notice shall be posted 10 on the premises where the nuisance exists. 11

I. The notice shall be printed in at least twelve-point type in 12 substantially the following form: 13

Notice 14 This is formal notice that the property at (insert address 15

and unit number if applicable) has had (insert number of) 16 arrests or (insert number of) documented reports of alleged 17 criminal activity and is considered a nuisance under section 18 12-991, Arizona Revised Statutes. A copy of the police report 19 numbers is attached. Police reports are available at (insert 20 applicable police agency). 21

Within five business days you must begin to take action 22 that is legally available to you to abate the nuisance from the 23 property. If you fail to do so, a restraining order to abate 24 and prevent continuing or recurring criminal activity will be 25 pursued. 26

If you fail to cooperate to abate the nuisance, the 27 appropriate authorities will abate the nuisance and their costs 28 will be a lien on the property. 29

You may contact (local agency) in order to obtain 30 information on how to abate the nuisance. 31 J. For the purposes of this article: 32 1. "Owner" means a person or persons or a legal entity listed as the 33

current title holder as recorded in the official records of the county 34 recorder in the county in which the title is recorded. 35

2. "Owner's managing agent" means a person, corporation, partnership 36 or limited liability company that is authorized by the owner to operate and 37 manage the property. 38

Sec. 6. Repeal 39 Section 22-512, Arizona Revised Statutes, as amended by Laws 2013, 40

chapter 254, section 15, is repealed. 41

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Sec. 7. Section 22-512, Arizona Revised Statutes, as added by Laws 1 1980, chapter 134, section 1, is amended to read: 2

22-512. Parties; representation 3 A. Any natural person, corporation, partnership, association, marital 4

community or other organization may commence or defend a small claims action, 5 but no assignee or other person not a real party to the original transaction 6 giving rise to the action may commence such an action except as a personal 7 representative duly appointed pursuant to a proceeding as provided in 8 title 14. 9

B. Notwithstanding section 32-261, In a small claims action: 10 1. An individual shall represent himself. 11 2. Either spouse or both may represent a marital community. 12 3. An active general partner or an authorized full-time employee shall 13

represent a partnership. 14 4. A full-time officer or authorized employee shall represent a 15

corporation. 16 5. An active member or an authorized full-time employee shall 17

represent an association. 18 6. Any other organization or entity shall be represented by one of its 19

active members or authorized full-time employees. 20 7. An attorney-at-law shall not appear or take any part in the filing 21

or prosecution or defense of any matter designated as a small claim. 22 C. FOR AN ASSOCIATION AS DEFINED IN SECTION 33-1202 OR 33-1802 THAT 23

HAS EMPLOYEES OR THAT IS CONTRACTED WITH A CORPORATION, LIMITED LIABILITY 24 COMPANY, LIMITED LIABILITY PARTNERSHIP, SOLE PROPRIETOR OR OTHER LAWFULLY 25 FORMED AND OPERATING ENTITY THAT PROVIDES MANAGEMENT SERVICES TO THE 26 ASSOCIATION, THE EMPLOYEES OF THE ASSOCIATION AND THE MANAGEMENT COMPANY AND 27 ITS OFFICERS AND EMPLOYEES MAY LAWFULLY ACT ON BEHALF OF THE ASSOCIATION AND 28 ITS BOARD OF DIRECTORS BY: 29

1. RECORDING A NOTICE OF LIEN OR NOTICE OF CLAIM OF LIEN OF THE 30 ASSOCIATION AGAINST AN OWNER'S PROPERTY IN A CONDOMINIUM OR PLANNED COMMUNITY 31 IF ALL OF THE FOLLOWING APPLY: 32

(a) THE ASSOCIATION EMPLOYEE OR THE MANAGEMENT COMPANY IS SPECIFICALLY 33 AUTHORIZED IN WRITING BY THE ASSOCIATION TO RECORD NOTICES OF LIEN OR NOTICES 34 OF CLAIM OF LIEN ON BEHALF OF THE ASSOCIATION AND THE OFFICER OR EMPLOYEE IS 35 A CERTIFIED LEGAL DOCUMENT PREPARER AS PRESCRIBED IN THE ARIZONA CODE OF 36 JUDICIAL ADMINISTRATION. 37

(b) THE ASSOCIATION IS THE ORIGINAL PARTY TO THE LIEN AND THE LIEN 38 RIGHT IS NOT THE RESULT OF AN ASSIGNMENT OF RIGHTS. 39

(c) THE LIEN RIGHT EXISTS BY OPERATION OF LAW PURSUANT TO SECTION 40 33-1256 OR 33-1807 AND IS NOT THE RESULT OF OBTAINING A FINAL JUDGMENT IN AN 41 ACTION TO WHICH THE ASSOCIATION IS A PARTY. 42

2. APPEARING ON BEHALF OF THE ASSOCIATION IN A SMALL CLAIMS ACTION IF 43 ALL OF THE FOLLOWING APPLY: 44

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(a) THE EMPLOYEE OF THE ASSOCIATION OR THE MANAGEMENT COMPANY IS 1 SPECIFICALLY AUTHORIZED IN WRITING BY THE ASSOCIATION TO APPEAR ON BEHALF OF 2 THE ASSOCIATION. 3

(b) THE ASSOCIATION IS AN ORIGINAL PARTY TO THE SMALL CLAIMS ACTION. 4 C. D. Notwithstanding subsection B of this section, at any time prior 5

to BEFORE THE hearing, the parties may stipulate by written agreement to the 6 participation of attorneys in actions designated as small claims. 7

D. E. This section is not intended to limit or otherwise interfere 8 with a party's right to assign or to employ counsel to pursue his THE PARTY'S 9 rights and remedies subsequent to the entry of judgment in a small claims 10 action. 11

E. F. Attorneys-at-law may represent themselves in propria persona. 12 Sec. 8. Repeal 13 Section 33-1250, Arizona Revised Statutes, as amended by Laws 2013, 14

chapter 254, section 16, is repealed. 15 Sec. 9. Section 33-1250, Arizona Revised Statutes, as amended by Laws 16

2005, chapter 132, section 8 and chapter 269, section 2, is amended to read: 17 33-1250. Voting; proxies; absentee ballots; applicability; 18

definition 19 A. If only one of the multiple owners of a unit is present at a 20

meeting of the association, the owner is entitled to cast all the votes 21 allocated to that unit. If more than one of the multiple owners are present, 22 the votes allocated to that unit may be cast only in accordance with the 23 agreement of a majority in interest of the multiple owners unless the 24 declaration expressly provides otherwise. There is majority agreement if any 25 one of the multiple owners casts the votes allocated to that unit without 26 protest being made promptly to the person presiding over the meeting by any 27 of the other owners of the unit. 28

B. During the period of declarant control, votes allocated to a unit 29 may be cast pursuant to a proxy duly executed by a unit owner. If a unit is 30 owned by more than one person, each owner of the unit may vote or register 31 protest to the casting of votes by the other owners of the unit through a 32 duly executed proxy. A unit owner may not revoke a proxy given pursuant to 33 this section except by actual notice of revocation to the person presiding 34 over a meeting of the association. A proxy is void if it is not dated or 35 purports to be revocable without notice. The proxy is revoked on 36 presentation of a later dated proxy executed by the same unit owner. A proxy 37 terminates one year after its date, unless it specifies a shorter term or 38 unless it states that it is coupled with an interest and is irrevocable. 39

C. Notwithstanding any provision in the condominium documents, after 40 termination of the period of declarant control, votes allocated to a unit may 41 not be cast pursuant to a proxy. The association shall provide for votes to 42 be cast in person and by absentee ballot and, IN ADDITION, THE ASSOCIATION 43 may provide for voting by some other form of delivery, INCLUDING THE USE OF 44 E-MAIL AND FAX DELIVERY. Notwithstanding section 10-3708 or the provisions 45 of the condominium documents, any action taken at an annual, regular or 46

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special meeting of the members shall comply with all of the following if 1 absentee ballots OR BALLOTS PROVIDED BY SOME OTHER FORM OF DELIVERY are used: 2

1. The absentee ballot shall set forth each proposed action. 3 2. The absentee ballot shall provide an opportunity to vote for or 4

against each proposed action. 5 3. The absentee ballot is valid for only one specified election or 6

meeting of the members and expires automatically after the completion of the 7 election or meeting. 8

4. The absentee ballot specifies the time and date by which the ballot 9 must be delivered to the board of directors in order to be counted, which 10 shall be at least seven days after the date that the board delivers the 11 unvoted absentee ballot to the member. 12

5. The absentee ballot does not authorize another person to cast votes 13 on behalf of the member. 14

D. Votes cast by absentee ballot or other form of DELIVERY, INCLUDING 15 THE USE OF E-MAIL AND FAX delivery, are valid for the purpose of establishing 16 a quorum. 17

E. Notwithstanding subsection C of this section, an association for a 18 timeshare plan as defined in section 32-2197 may permit votes by a proxy that 19 is duly executed by a unit owner. 20

F. If the declaration requires that votes on specified matters 21 affecting the condominium be cast by lessees rather than unit owners of 22 leased units all of the following apply: 23

1. The provisions of subsections A and B of this section apply to 24 lessees as if they were unit owners. 25

2. Unit owners who have leased their units to other persons shall not 26 cast votes on those specified matters. 27

3. Lessees are entitled to notice of meetings, access to records and 28 other rights respecting those matters as if they were unit owners. Unit 29 owners shall also be given notice, in the manner prescribed in section 30 33-1248, of all meetings at which lessees may be entitled to vote. 31

G. Unless the declaration provides otherwise, votes allocated to a 32 unit owned by the association shall not be cast. 33

H. This section does not apply to timeshare plans or associations that 34 are subject to chapter 20 of this title. 35

I. For the purposes of this section, "period of declarant control" 36 means the time during which the declarant or persons designated by the 37 declarant may elect or appoint the members of the board of directors pursuant 38 to the condominium documents or by virtue of superior voting power. 39

Sec. 10. Repeal 40 Section 33-1260.01, Arizona Revised Statutes, is repealed. 41

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Sec. 11. Title 33, chapter 9, article 3, Arizona Revised Statutes, is 1 amended by adding a new section 33-1260.01, to read: 2

33-1260.01. Rental property; unit owner and agent information; 3 fee; disclosure 4

A. A UNIT OWNER MAY USE THE UNIT OWNER'S UNIT AS A RENTAL PROPERTY 5 UNLESS PROHIBITED IN THE DECLARATION AND SHALL USE IT IN ACCORDANCE WITH THE 6 DECLARATION'S RENTAL TIME PERIOD RESTRICTIONS. 7

B. A UNIT OWNER MAY DESIGNATE IN WRITING A THIRD PARTY TO ACT AS THE 8 UNIT OWNER'S AGENT WITH RESPECT TO ALL ASSOCIATION MATTERS RELATING TO THE 9 RENTAL UNIT, EXCEPT FOR VOTING IN ASSOCIATION ELECTIONS AND SERVING ON THE 10 BOARD OF DIRECTORS. THE UNIT OWNER SHALL SIGN THE WRITTEN DESIGNATION AND 11 SHALL PROVIDE A COPY OF THE WRITTEN DESIGNATION TO THE ASSOCIATION. ON 12 DELIVERY OF THE WRITTEN DESIGNATION, THE ASSOCIATION IS AUTHORIZED TO CONDUCT 13 ALL ASSOCIATION BUSINESS RELATING TO THE UNIT OWNER'S RENTAL UNIT THROUGH THE 14 DESIGNATED AGENT. ANY NOTICE GIVEN BY THE ASSOCIATION TO A UNIT OWNER'S 15 DESIGNATED AGENT ON ANY MATTER RELATING TO THE UNIT OWNER'S RENTAL UNIT 16 CONSTITUTES NOTICE TO THE UNIT OWNER. 17

C. NOTWITHSTANDING ANY PROVISION IN THE CONDOMINIUM DOCUMENTS, ON 18 RENTAL OF A UNIT AN ASSOCIATION SHALL NOT REQUIRE A UNIT OWNER OR A UNIT 19 OWNER'S AGENT TO DISCLOSE ANY INFORMATION REGARDING A TENANT OTHER THAN THE 20 NAME AND CONTACT INFORMATION FOR ANY ADULTS OCCUPYING THE UNIT, THE TIME 21 PERIOD OF THE LEASE, INCLUDING THE BEGINNING AND ENDING DATES OF THE TENANCY, 22 AND A DESCRIPTION AND THE LICENSE PLATE NUMBERS OF THE TENANTS' VEHICLES. IF 23 THE CONDOMINIUM IS AN AGE RESTRICTED CONDOMINIUM, THE UNIT OWNER, THE UNIT 24 OWNER'S AGENT OR THE TENANT SHALL SHOW A GOVERNMENT ISSUED IDENTIFICATION 25 THAT BEARS A PHOTOGRAPH AND THAT CONFIRMS THAT THE TENANT MEETS THE 26 CONDOMINIUM'S AGE RESTRICTIONS OR REQUIREMENTS. 27

D. ON REQUEST OF AN ASSOCIATION OR ITS MANAGING AGENT FOR THE 28 DISCLOSURES PRESCRIBED IN SUBSECTION C OF THIS SECTION, THE MANAGING AGENT 29 OR, IF THERE IS NO MANAGING AGENT, THE ASSOCIATION MAY CHARGE A FEE OF NOT 30 MORE THAN TWENTY-FIVE DOLLARS, WHICH SHALL BE PAID WITHIN FIFTEEN DAYS AFTER 31 THE POSTMARKED REQUEST. THE FEE MAY BE CHARGED FOR EACH NEW TENANCY FOR THAT 32 UNIT BUT MAY NOT BE CHARGED FOR A RENEWAL OF A LEASE. EXCEPT FOR THE FEE 33 PERMITTED BY THIS SUBSECTION AND FEES RELATED TO THE USE OF RECREATIONAL 34 FACILITIES, THE ASSOCIATION OR ITS MANAGING AGENT SHALL NOT ASSESS, LEVY OR 35 CHARGE A FEE OR FINE OR OTHERWISE IMPOSE A REQUIREMENT ON A UNIT OWNER'S 36 RENTAL UNIT ANY DIFFERENTLY THAN ON AN OWNER-OCCUPIED UNIT IN THE 37 ASSOCIATION. 38

E. NOTWITHSTANDING ANY PROVISION IN THE CONDOMINIUM DOCUMENTS, THE 39 ASSOCIATION IS PROHIBITED FROM DOING ANY OF THE FOLLOWING: 40

1. REQUIRING A UNIT OWNER TO PROVIDE THE ASSOCIATION WITH A COPY OF 41 THE TENANT'S RENTAL APPLICATION, CREDIT REPORT, LEASE AGREEMENT OR RENTAL 42 CONTRACT OR OTHER PERSONAL INFORMATION EXCEPT AS PRESCRIBED BY THIS SECTION. 43 THIS PARAGRAPH DOES NOT PROHIBIT THE ASSOCIATION FROM ACQUIRING A CREDIT 44 REPORT ON A PERSON IN AN ATTEMPT TO COLLECT A DEBT. 45

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2. REQUIRING THE TENANT TO SIGN A WAIVER OR OTHER DOCUMENT LIMITING 1 THE TENANT'S DUE PROCESS RIGHTS AS A CONDITION OF THE TENANT'S OCCUPANCY OF 2 THE RENTAL UNIT. 3

3. PROHIBITING OR OTHERWISE RESTRICTING A UNIT OWNER FROM SERVING ON 4 THE BOARD OF DIRECTORS BASED ON THE OWNER'S NOT BEING AN OCCUPANT OF THE 5 UNIT. 6

4. IMPOSING ON A UNIT OWNER OR MANAGING AGENT ANY FEE, ASSESSMENT, 7 PENALTY OR OTHER CHARGE IN AN AMOUNT GREATER THAN FIFTEEN DOLLARS FOR 8 INCOMPLETE OR LATE INFORMATION REGARDING THE INFORMATION REQUESTED PURSUANT 9 TO SUBSECTION C OF THIS SECTION 10

F. ANY ATTEMPT BY AN ASSOCIATION TO EXCEED THE FEE, ASSESSMENT, 11 PENALTY OR OTHER CHARGE AUTHORIZED BY SUBSECTION D OR E OF THIS SECTION VOIDS 12 THE FEE, ASSESSMENT, PENALTY OR OTHER CHARGE AUTHORIZED BY SUBSECTION D OR E 13 OF THIS SECTION. THIS SECTION DOES NOT PREVENT AN ASSOCIATION FROM COMPLYING 14 WITH THE HOUSING FOR OLDER PERSONS ACT OF 1995 (P.L. 104–76; 109 STAT. 787). 15

G. AN OWNER MAY USE A CRIME FREE ADDENDUM AS PART OF A LEASE 16 AGREEMENT. THIS SECTION DOES NOT PROHIBIT THE OWNER'S USE OF A CRIME FREE 17 ADDENDUM. 18

H. THIS SECTION DOES NOT PROHIBIT AND AN ASSOCIATION MAY LAWFULLY 19 ENFORCE A PROVISION IN THE CONDOMINIUM DOCUMENTS THAT RESTRICTS THE RESIDENCY 20 OF PERSONS WHO ARE REQUIRED TO BE REGISTERED PURSUANT TO SECTION 13-3821 AND 21 WHO ARE CLASSIFIED AS LEVEL TWO OR LEVEL THREE OFFENDERS. 22

I. AN OWNER OF RENTAL PROPERTY SHALL ABATE CRIMINAL ACTIVITY AS 23 AUTHORIZED IN SECTION 12-991. 24


chapter 254, section 18, is repealed. 27 Sec. 13. Section 33-1261, Arizona Revised Statutes, as amended by Laws 28

2012, chapter 242, section 1, is amended to read: 29 33-1261. Flag display; for sale, rent or lease signs; political 30

signs and activities; applicability 31 A. Notwithstanding any provision in the condominium documents, an 32

association shall not prohibit the outdoor display of any of the following: 33 1. The American flag or an official or replica of a flag of the United 34

States army, navy, air force, marine corps or coast guard by a unit owner on 35 that unit owner's property if the American flag or military flag is displayed 36 in a manner consistent with the federal flag code (P.L. 94-344; 90 Stat. 810; 37 4 United States Code sections 4 through 10). 38

2. The POW/MIA flag. 39 3. The Arizona state flag. 40 4. An Arizona Indian nations flag. 41 5. The Gadsden flag. 42 B. The association shall adopt reasonable rules and regulations 43

regarding the placement and manner of display of the American flag, the 44 military flag, the POW/MIA flag, the Arizona state flag or an Arizona Indian 45

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nations flag. The association rules may regulate the location and size of 1 flagpoles but shall not prohibit the installation of a flagpole. 2

C. Notwithstanding any provision in the condominium documents, an 3 association shall not prohibit or charge a fee for the use of, the placement 4 of or the indoor or outdoor display of a for sale, for rent or for lease sign 5 and a sign rider by a unit owner on that owner's property in any combination, 6 including a sign that indicates the unit owner is offering the property for 7 sale by owner. The size of a sign offering a property for sale, for rent or 8 for lease shall be in conformance with the industry standard size sign, which 9 shall not exceed eighteen by twenty-four inches, and the industry standard 10 size sign rider, which shall not exceed six by twenty-four inches. This 11 subsection applies only to a commercially produced sign and an association 12 may prohibit the use of signs that are not commercially produced. With 13 respect to real estate for sale, for rent or for lease in the condominium, an 14 association shall not prohibit in any way other than as is specifically 15 authorized by this section or otherwise regulate any of the following: 16

1. Temporary open house signs or a unit owner's for sale sign. The 17 association shall not require the use of particular signs indicating an open 18 house or real property for sale and may not further regulate the use of 19 temporary open house or for sale signs that are industry standard size and 20 that are owned or used by the seller or the seller's agent. 21

2. Open house hours. The association may not limit the hours for an 22 open house for real estate that is for sale in the condominium, except that 23 the association may prohibit an open house being held before 8:00 a.m. or 24 after 6:00 p.m. and may prohibit open house signs on the common elements of 25 the condominium. 26

3. An owner's or an owner's agent's for rent or for lease sign unless 27 an association's documents prohibit or restrict leasing of a unit or units. 28 An association shall not further regulate a for rent or for lease sign or 29 require the use of a particular for rent or for lease sign other than the for 30 rent or for lease sign shall not be any larger than the industry standard 31 size sign of eighteen by twenty-four inches and on or in the unit owner's 32 property. If rental or leasing of a unit is allowed, the association may 33 prohibit an open house for rental or leasing being held before 8:00 a.m. or 34 after 6:00 p.m. 35

D. Notwithstanding any provision in the condominium documents, an 36 association shall not prohibit door to door political activity, including 37 solicitations of support or opposition regarding candidates or ballot issues, 38 and shall not prohibit the circulation of political petitions, including 39 candidate nomination petitions or petitions in support of or opposition to an 40 initiative, referendum or recall or other political issue on property 41 normally open to visitors within the association, except that an association 42 may do the following: 43

1. Restrict or prohibit door to door political activity regarding 44 candidates or ballot issues from sunset to sunrise. 45

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2. Require the prominent display of an identification tag for each 1 person engaged in the activity, along with the prominent identification of 2 the candidate or ballot issue that is the subject of the support or 3 opposition. 4

E. NOTWITHSTANDING ANY PROVISION IN THE CONDOMINIUM DOCUMENTS, AN 5 ASSOCIATION SHALL NOT PROHIBIT THE INDOOR OR OUTDOOR DISPLAY OF A POLITICAL 6 SIGN BY A UNIT OWNER BY PLACEMENT OF A SIGN ON THAT UNIT OWNER'S PROPERTY, 7 INCLUDING ANY LIMITED COMMON ELEMENTS FOR THAT UNIT THAT ARE DOORS, WALLS, 8 PATIOS OR OTHER LIMITED COMMON ELEMENTS THAT TOUCH THE UNIT, OTHER THAN THE 9 ROOF. AN ASSOCIATION MAY PROHIBIT THE DISPLAY OF POLITICAL SIGNS EARLIER 10 THAN SEVENTY-ONE DAYS BEFORE THE DAY OF AN ELECTION AND LATER THAN THREE DAYS 11 AFTER AN ELECTION DAY. AN ASSOCIATION MAY REGULATE THE SIZE AND NUMBER OF 12 POLITICAL SIGNS THAT MAY BE PLACED IN THE COMMON ELEMENT GROUND, ON A UNIT 13 OWNER'S PROPERTY OR ON A LIMITED COMMON ELEMENT FOR THAT UNIT IF THE 14 ASSOCIATION'S REGULATION IS NO MORE RESTRICTIVE THAN ANY APPLICABLE CITY, 15 TOWN OR COUNTY ORDINANCE THAT REGULATES THE SIZE AND NUMBER OF POLITICAL 16 SIGNS ON RESIDENTIAL PROPERTY. IF THE CITY, TOWN OR COUNTY IN WHICH THE 17 PROPERTY IS LOCATED DOES NOT REGULATE THE SIZE AND NUMBER OF POLITICAL SIGNS 18 ON RESIDENTIAL PROPERTY, THE ASSOCIATION SHALL NOT LIMIT THE NUMBER OF 19 POLITICAL SIGNS, EXCEPT THAT THE MAXIMUM AGGREGATE TOTAL DIMENSIONS OF ALL 20 POLITICAL SIGNS ON A UNIT OWNER'S PROPERTY SHALL NOT EXCEED NINE SQUARE FEET. 21 An association shall not make any regulations regarding the number of 22 candidates supported, the number of public officers supported or opposed in a 23 recall or the number of propositions supported or opposed on a political 24 sign. FOR THE PURPOSES OF THIS SUBSECTION, "POLITICAL SIGN" MEANS A SIGN 25 THAT ATTEMPTS TO INFLUENCE THE OUTCOME OF AN ELECTION, INCLUDING SUPPORTING 26 OR OPPOSING THE RECALL OF A PUBLIC OFFICER OR SUPPORTING OR OPPOSING THE 27 CIRCULATION OF A PETITION FOR A BALLOT MEASURE, QUESTION OR PROPOSITION OR 28 THE RECALL OF A PUBLIC OFFICER. 29

F. An association shall not require political signs to be commercially 30 produced or professionally manufactured or prohibit the utilization of both 31 sides of a political sign. 32

G. A condominium is not required to comply with subsection D of this 33 section if the condominium restricts vehicular or pedestrian access to the 34 condominium. Nothing in this section requires a condominium to make its 35 common elements other than roadways and sidewalks that are normally open to 36 visitors available for the circulation of political petitions to anyone who 37 is not an owner or resident of the community. 38

H. An association or managing agent that violates subsection C of this 39 section forfeits and extinguishes the lien rights authorized under section 40 33-1256 against that unit for a period of six consecutive months from the 41 date of the violation. 42

I. This section does not apply to timeshare plans or associations that 43 are subject to chapter 20 of this title. 44

Sec. 14. Repeal 45 Section 33-1806.01, Arizona Revised Statutes, is repealed. 46

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Sec. 15. Title 33, chapter 16, article 1, Arizona Revised Statutes, is 1 amended by adding a new section 33-1806.01, to read: 2

33-1806.01. Rental property; member and agent information; fee; 3 disclosure 4

A. A MEMBER MAY USE THE MEMBER'S PROPERTY AS A RENTAL PROPERTY UNLESS 5 PROHIBITED IN THE DECLARATION AND SHALL USE IT IN ACCORDANCE WITH THE 6 DECLARATION'S RENTAL TIME PERIOD RESTRICTIONS. 7

B. A MEMBER MAY DESIGNATE IN WRITING A THIRD PARTY TO ACT AS THE 8 MEMBER'S AGENT WITH RESPECT TO ALL ASSOCIATION MATTERS RELATING TO THE RENTAL 9 PROPERTY, EXCEPT FOR VOTING IN ASSOCIATION ELECTIONS AND SERVING ON THE BOARD 10 OF DIRECTORS. THE MEMBER SHALL SIGN THE WRITTEN DESIGNATION AND SHALL 11 PROVIDE A COPY OF THE WRITTEN DESIGNATION TO THE ASSOCIATION. ON DELIVERY OF 12 THE WRITTEN DESIGNATION, THE ASSOCIATION IS AUTHORIZED TO CONDUCT ALL 13 ASSOCIATION BUSINESS RELATING TO THE MEMBER'S RENTAL PROPERTY THROUGH THE 14 DESIGNATED AGENT. ANY NOTICE GIVEN BY THE ASSOCIATION TO A MEMBER'S 15 DESIGNATED AGENT ON ANY MATTER RELATING TO THE MEMBER'S RENTAL PROPERTY 16 CONSTITUTES NOTICE TO THE MEMBER. 17

C. NOTWITHSTANDING ANY PROVISION IN THE COMMUNITY DOCUMENTS, ON RENTAL 18 OF A MEMBER'S PROPERTY AN ASSOCIATION SHALL NOT REQUIRE A MEMBER OR A 19 MEMBER'S AGENT TO DISCLOSE ANY INFORMATION REGARDING A TENANT OTHER THAN THE 20 NAME AND CONTACT INFORMATION FOR ANY ADULTS OCCUPYING THE PROPERTY, THE TIME 21 PERIOD OF THE LEASE, INCLUDING THE BEGINNING AND ENDING DATES OF THE TENANCY, 22 AND A DESCRIPTION AND THE LICENSE PLATE NUMBERS OF THE TENANTS' VEHICLES. IF 23 THE PLANNED COMMUNITY IS AN AGE RESTRICTED COMMUNITY, THE MEMBER, THE 24 MEMBER'S AGENT OR THE TENANT SHALL SHOW A GOVERNMENT ISSUED IDENTIFICATION 25 THAT BEARS A PHOTOGRAPH AND THAT CONFIRMS THAT THE TENANT MEETS THE 26 COMMUNITY'S AGE RESTRICTIONS OR REQUIREMENTS. 27

D. ON REQUEST OF AN ASSOCIATION OR ITS MANAGING AGENT FOR THE 28 DISCLOSURES PRESCRIBED IN SUBSECTION C OF THIS SECTION, THE MANAGING AGENT 29 OR, IF THERE IS NO MANAGING AGENT, THE ASSOCIATION MAY CHARGE A FEE OF NOT 30 MORE THAN TWENTY-FIVE DOLLARS, WHICH SHALL BE PAID WITHIN FIFTEEN DAYS AFTER 31 THE POSTMARKED REQUEST. THE FEE MAY BE CHARGED FOR EACH NEW TENANCY FOR THAT 32 PROPERTY BUT MAY NOT BE CHARGED FOR A RENEWAL OF A LEASE. EXCEPT FOR THE FEE 33 PERMITTED BY THIS SUBSECTION AND FEES RELATED TO THE USE OF RECREATIONAL 34 FACILITIES, THE ASSOCIATION OR ITS MANAGING AGENT SHALL NOT ASSESS, LEVY OR 35 CHARGE A FEE OR FINE OR OTHERWISE IMPOSE A REQUIREMENT ON A MEMBER'S RENTAL 36 PROPERTY ANY DIFFERENTLY THAN ON AN OWNER-OCCUPIED PROPERTY IN THE 37 ASSOCIATION. 38

E. NOTWITHSTANDING ANY PROVISION IN THE COMMUNITY DOCUMENTS, THE 39 ASSOCIATION IS PROHIBITED FROM DOING ANY OF THE FOLLOWING: 40

1. REQUIRING A MEMBER TO PROVIDE THE ASSOCIATION WITH A COPY OF THE 41 TENANT'S RENTAL APPLICATION, CREDIT REPORT, LEASE AGREEMENT OR RENTAL 42 CONTRACT OR OTHER PERSONAL INFORMATION EXCEPT AS PRESCRIBED BY THIS 43 SECTION. THIS PARAGRAPH DOES NOT PROHIBIT THE ASSOCIATION FROM ACQUIRING A 44 CREDIT REPORT ON A PERSON IN AN ATTEMPT TO COLLECT A DEBT. 45

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2. REQUIRING THE TENANT TO SIGN A WAIVER OR OTHER DOCUMENT LIMITING 1 THE TENANT'S DUE PROCESS RIGHTS AS A CONDITION OF THE TENANT'S OCCUPANCY OF 2 THE RENTAL PROPERTY. 3

3. PROHIBITING OR OTHERWISE RESTRICTING A MEMBER FROM SERVING ON THE 4 BOARD OF DIRECTORS BASED ON THE MEMBER'S NOT BEING AN OCCUPANT OF THE 5 PROPERTY. 6

4. IMPOSING ON A MEMBER OR MANAGING AGENT ANY FEE, ASSESSMENT, PENALTY 7 OR OTHER CHARGE IN AN AMOUNT GREATER THAN FIFTEEN DOLLARS FOR INCOMPLETE OR 8 LATE INFORMATION REGARDING THE INFORMATION REQUESTED PURSUANT TO SUBSECTION C 9 OF THIS SECTION. 10

F. ANY ATTEMPT BY AN ASSOCIATION TO EXCEED THE FEE, ASSESSMENT, 11 PENALTY OR OTHER CHARGE AUTHORIZED BY SUBSECTION D OR E OF THIS SECTION VOIDS 12 THE FEE, ASSESSMENT, PENALTY OR OTHER CHARGE AUTHORIZED BY SUBSECTION D OR E 13 OF THIS SECTION. THIS SECTION DOES NOT PREVENT AN ASSOCIATION FROM COMPLYING 14 WITH THE HOUSING FOR OLDER PERSONS ACT OF 1995 (P.L. 104–76; 109 STAT. 787). 15

G. AN OWNER MAY USE A CRIME FREE ADDENDUM AS PART OF A LEASE 16 AGREEMENT. THIS SECTION DOES NOT PROHIBIT THE OWNER'S USE OF A CRIME FREE 17 ADDENDUM. 18

H. THIS SECTION DOES NOT PROHIBIT AND AN ASSOCIATION MAY LAWFULLY 19 ENFORCE A PROVISION IN THE COMMUNITY DOCUMENTS THAT RESTRICTS THE RESIDENCY 20 OF PERSONS WHO ARE REQUIRED TO BE REGISTERED PURSUANT TO SECTION 13-3821 AND 21 WHO ARE CLASSIFIED AS LEVEL TWO OR LEVEL THREE OFFENDERS. 22

I. AN OWNER OF RENTAL PROPERTY SHALL ABATE CRIMINAL ACTIVITY AS 23 AUTHORIZED IN SECTION 12-991. 24


chapter 254, section 20, is repealed. 27 Sec. 17. Section 33-1812, Arizona Revised Statutes, as added by Laws 28

2005, chapter 269, section 8, is amended to read: 29 33-1812. Proxies; absentee ballots; definition 30 A. Notwithstanding any provision in the community documents, after 31

termination of the period of declarant control, votes allocated to a unit may 32 not be cast pursuant to a proxy. The association shall provide for votes to 33 be cast in person and by absentee ballot and, IN ADDITION, THE ASSOCIATION 34 may provide for voting by some other form of delivery, INCLUDING THE USE OF 35 E-MAIL AND FAX DELIVERY. Notwithstanding section 10-3708 or the provisions 36 of the community documents, any action taken at an annual, regular or special 37 meeting of the members shall comply with all of the following if absentee 38 ballots OR BALLOTS PROVIDED BY SOME OTHER FORM OF DELIVERY are used: 39

1. The absentee ballot shall set forth each proposed action. 40 2. The absentee ballot shall provide an opportunity to vote for or 41

against each proposed action. 42 3. The absentee ballot is valid for only one specified election or 43

meeting of the members and expires automatically after the completion of the 44 election or meeting. 45

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4. The absentee ballot specifies the time and date by which the ballot 1 must be delivered to the board of directors in order to be counted, which 2 shall be at least seven days after the date that the board delivers the 3 unvoted absentee ballot to the member. 4

5. The absentee ballot does not authorize another person to cast votes 5 on behalf of the member. 6

B. Votes cast by absentee ballot or other form of DELIVERY, INCLUDING 7 THE USE OF E-MAIL AND FAX delivery, are valid for the purpose of establishing 8 a quorum. 9

C. Notwithstanding subsection A of this section, an association for a 10 timeshare plan as defined in section 32-2197 may permit votes by a proxy that 11 is duly executed by a unit owner. 12

D. For the purposes of this section, "period of declarant control" 13 means the time during which the declarant or persons designated by the 14 declarant may elect or appoint the members of the board of directors pursuant 15 to the community documents or by virtue of superior voting power. 16

Sec. 18. Repeal 17 Section 41-2198.01, Arizona Revised Statutes, as amended by Laws 2013, 18

chapter 254, section 21, is repealed. 19 Sec. 19. Section 41-2198.01, Arizona Revised Statutes, as amended by 20

Laws 2006, chapter 324, section 7, is amended to read: 21 41-2198.01. Hearing; rights and procedures 22 A. A person who is subject to title 33, chapter 11 or a party to a 23

rental agreement entered into pursuant to title 33, chapter 11 may petition 24 the department for a hearing concerning violations of the Arizona mobile home 25 parks residential landlord and tenant act by filing a petition with the 26 department and paying a nonrefundable filing fee in an amount to be 27 established by the director. All monies collected shall be deposited in the 28 state general fund and are not refundable. 29

B. For a dispute between an owner and a condominium association or 30 planned community association that is regulated pursuant to title 33, chapter 31 9 or 16, the owner or association may petition the department for a hearing 32 concerning violations of condominium documents or planned community documents 33 or violations of the statutes that regulate condominiums or planned 34 communities. The petitioner shall file a petition with the department and 35 pay a nonrefundable filing fee in an amount to be established by the 36 director. The filing fee shall be deposited in the condominium and planned 37 community hearing office fund established by section 41-2198.05. ON 38 DISMISSAL OF A PETITION AT THE REQUEST OF THE PETITIONER BEFORE A HEARING IS 39 SCHEDULED OR BY STIPULATION OF THE PARTIES BEFORE A HEARING IS SCHEDULED, THE 40 FILING FEE SHALL BE REFUNDED TO THE PETITIONER. The department does not have 41 jurisdiction to hear: 42

1. Any dispute among or between owners to which the association is not 43 a party. 44

2. Any dispute between an owner and any person, firm, partnership, 45 corporation, association or other organization that is engaged in the 46

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business of designing, constructing or selling a condominium as defined in 1 section 33-1202 or any property or improvements within a planned community as 2 defined in section 33-1802, including any person, firm, partnership, 3 corporation, association or other organization licensed pursuant to title 32, 4 chapter 20, arising out of or related to the design, construction, condition 5 or sale of the condominium or any property or improvements within a planned 6 community. 7

C. The petition shall be in writing on a form approved by the 8 department, shall list the complaints and shall be signed by or on behalf of 9 the persons filing and include their addresses, stating that a hearing is 10 desired, and shall be filed with the department. 11

D. On receipt of the petition and the filing fee the department shall 12 mail by certified mail a copy of the petition along with notice to the named 13 respondent that a response is required within twenty days of mailing of the 14 petition showing cause, if any, why the petition should be dismissed. 15

E. After receiving the response, the director or the director's 16 designee shall promptly review the petition for hearing and, if justified, 17 refer the petition to the office of administrative hearings. The director 18 may dismiss a petition for hearing if it appears to the director's 19 satisfaction that the disputed issue or issues have been resolved by the 20 parties. 21

F. Failure of the respondent to answer is deemed an admission of the 22 allegations made in the petition, and the director shall issue a default 23 decision. 24

G. Informal disposition may be made of any contested case. 25 H. Either party or the party's authorized agent may inspect any file 26

of the department that pertains to the hearing, if such THE authorization is 27 filed in writing with the department. 28

I. At a hearing conducted pursuant to this section, a corporation may 29 be represented by a corporate officer, employee or contractor of the 30 corporation who is not a member of the state bar if: 31

1. The corporation has specifically authorized the officer, employee 32 or contractor of the corporation to represent it. 33

2. The representation is not the officer's, employee's or contractor 34 of the corporation's primary duty to the corporation but is secondary or 35 incidental to the officer's, or employee's OR CONTRACTOR OF THE 36 CORPORATION'S, LIMITED LIABILITY COMPANY'S, LIMITED LIABILITY PARTNERSHIP'S, 37 SOLE PROPRIETOR'S OR OTHER LAWFULLY FORMED AND OPERATING ENTITY'S duties 38 relating to the management or operation of the corporation. 39

Sec. 20. Severability 40 If a provision of this act or its application to any person or 41

circumstance is held invalid, the invalidity does not affect other provisions 42 or applications of the act that can be given effect without the invalid 43 provision or application, and to this end the provisions of this act are 44 severable. 45

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APPROVED BY THE GOVERNOR APRIL 17, 2014. FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 18, 2014.

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Senate Engrossed State of Arizona Senate Fifty-first Legislature Second Regular Session 2014

CHAPTER 78

SENATE BILL 1305

AN ACT

AMENDING TITLE 9, CHAPTER 7, ARTICLE 1, ARIZONA REVISED STATUTES, BY ADDING SECTION 9-808; AMENDING SECTION 11-861, ARIZONA REVISED STATUTES; RELATING TO SEMIPUBLIC SWIMMING POOL BARRIERS.


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Be it enacted by the Legislature of the State of Arizona: 1 Section 1. Title 9, chapter 7, article 1, Arizona Revised Statutes, is 2

amended by adding section 9-808, to read: 3 9-808. Semipublic swimming pools; locking device; pool barrier 4

gates 5 A. FROM AND AFTER DECEMBER 31, 2014, A CODE OR ORDINANCE OR PART OF A 6

UNIFORM CODE OR ORDINANCE THAT IS ADOPTED BY A CITY OR TOWN APPLIES TO 7 LOCKING DEVICES FOR POOL BARRIER GATES USED FOR MEANS OF INGRESS OR EGRESS 8 FOR SEMIPUBLIC SWIMMING POOLS. ANY NEW CONSTRUCTION OR MAJOR RENOVATION OF A 9 SEMIPUBLIC SWIMMING POOL FROM AND AFTER DECEMBER 31, 2014 MUST MEET THE 10 REQUIREMENTS OF THE CODE OR ORDINANCE OR PART OF THE UNIFORM CODE OR 11 ORDINANCE THAT IS ADOPTED BY THE CITY OR TOWN. 12

B. SUBSECTION A OF THIS SECTION DOES NOT APPLY TO A LOCKING DEVICE FOR 13 A POOL BARRIER GATE USED FOR MEANS OF INGRESS OR EGRESS FOR A SEMIPUBLIC 14 SWIMMING POOL THAT WAS INSTALLED BEFORE JANUARY 1, 2015, IF THE LOCKING 15 DEVICE MEETS THE REQUIREMENTS PRESCRIBED IN SECTION 36-1681, SUBSECTION B, 16 PARAGRAPH 3. 17

Sec. 2. Section 11-861, Arizona Revised Statutes, is amended to read: 18 11-861. Adoption of codes by reference; limitations; method of 19

adoption 20 A. In any county that has adopted zoning pursuant to this chapter, the 21

board of supervisors may adopt and enforce, for the unincorporated areas of 22 the county so zoned, a building code and other related codes to regulate the 23 quality, type of material and workmanship of all aspects of construction of 24 buildings or structures, except that the board may authorize that areas zoned 25 rural or unclassified may be exempt from the provisions of the code adopted. 26 Such codes may be adopted by reference after notice and hearings before the 27 county planning and zoning commission and board of supervisors as provided in 28 this chapter for amendments to the zoning ordinance of the county. 29

B. The board of supervisors may adopt a fire prevention code in the 30 unincorporated areas of the county in which a fire district has not adopted a 31 nationally recognized fire code pursuant to section 48-805. Any fire code 32 adopted by a board of supervisors pursuant to this subsection shall remain in 33 effect until a fire district is established and adopts a code applicable 34 within the boundaries of the district. 35

C. For the purpose of this article, codes authorized by subsections A 36 and B of this section shall be limited to the following: 37

1. Any building, electrical, plumbing or mechanical code that has been 38 adopted by any national organization or association that is organized and 39 conducted for the purpose of developing codes or that has been adopted by the 40 largest city in that county. If the board of supervisors adopts a city code, 41 it shall adopt, within ninety days after receiving a written notification of 42 a change to the city code, the same change or shall terminate the adopted 43 city code. 44

2. Any fire prevention code that has been adopted by a national 45 organization or association organized or conducted for the purpose of 46

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developing fire prevention codes and that is as stringent as the state fire 1 code adopted pursuant to section 41-2146. 2

D. The board of supervisors may adopt a current wildland-urban 3 interface code. The code may be adapted from a model code adopted by a 4 national or international organization or association for mitigating the 5 hazard to life and property. The board must follow written public procedures 6 in the development and adoption of the code and any revisions to the code to 7 provide effective, early and continuous public participation through: 8

1. The broad dissemination and publicity of the proposed code and any 9 revisions to the code. 10

2. The opportunity for submission and consideration of written public 11 comments. 12

3. Open discussions, communications programs and information services. 13 4. Consultation with federal agencies and state and local officials. 14 E. The board of supervisors of a county shall not adopt a code or 15

ordinance or part of a uniform code or ordinance that prohibits a person or 16 entity from choosing to install or equip or not install or equip fire 17 sprinklers in a single family detached residence or any residential building 18 that contains not more than two dwelling units. The board of supervisors of 19 a county shall not impose any fine, penalty or other requirement on any 20 person or entity for choosing to install or equip or not install or equip 21 fire sprinklers in such a residence. This subsection does not apply to any 22 code or ordinance that requires fire sprinklers in a residence and that was 23 adopted before December 31, 2009. 24

F. FROM AND AFTER DECEMBER 31, 2014, A CODE OR ORDINANCE OR PART OF A 25 UNIFORM CODE OR ORDINANCE THAT IS ADOPTED BY THE BOARD OF SUPERVISORS APPLIES 26 TO LOCKING DEVICES FOR POOL BARRIER GATES USED FOR MEANS OF INGRESS OR EGRESS 27 FOR SEMIPUBLIC SWIMMING POOLS. ANY NEW CONSTRUCTION OR MAJOR RENOVATION OF A 28 SEMIPUBLIC SWIMMING POOL FROM AND AFTER DECEMBER 31, 2014 MUST MEET THE 29 REQUIREMENTS OF THE CODE OR ORDINANCE OR PART OF THE UNIFORM CODE OR 30 ORDINANCE THAT IS ADOPTED BY THE BOARD OF SUPERVISORS. THIS SUBSECTION DOES 31 NOT APPLY TO A LOCKING DEVICE FOR A POOL BARRIER GATE USED FOR MEANS OF 32 INGRESS OR EGRESS FOR A SEMIPUBLIC SWIMMING POOL THAT WAS INSTALLED BEFORE 33 JANUARY 1, 2015, IF THE LOCKING DEVICE MEETS THE REQUIREMENTS PRESCRIBED IN 34 SECTION 36-1681, SUBSECTION B, PARAGRAPH 3. 35 APPROVED BY THE GOVERNOR APRIL 17, 2014. FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 18, 2014.

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House Engrossed State of Arizona House of Representatives Fifty-first Legislature Second Regular Session 2014

CHAPTER 41

HOUSE BILL 2021

AN ACT

AMENDING TITLE 12, ARIZONA REVISED STATUTES, BY ADDING CHAPTER 24; RELATING TO VEXATIOUS LITIGANTS.


H.B. 2021

- 1 -

Be it enacted by the Legislature of the State of Arizona: 1 Section 1. Title 12, Arizona Revised Statutes, is amended by adding 2

chapter 24, to read: 3 CHAPTER 24 4

VEXATIOUS LITIGANTS 5 ARTICLE 1. GENERAL PROVISIONS 6

12-3201. Vexatious litigants; designation 7 A. IN A NONCRIMINAL CASE, AT THE REQUEST OF A PARTY OR ON THE COURT'S 8

OWN MOTION, THE PRESIDING JUDGE OF THE SUPERIOR COURT OR A JUDGE DESIGNATED 9 BY THE PRESIDING JUDGE OF THE SUPERIOR COURT MAY DESIGNATE A PRO SE LITIGANT 10 A VEXATIOUS LITIGANT. 11

B. A PRO SE LITIGANT WHO IS DESIGNATED A VEXATIOUS LITIGANT MAY NOT 12 FILE A NEW PLEADING, MOTION OR OTHER DOCUMENT WITHOUT PRIOR LEAVE OF THE 13 COURT. 14

C. A PRO SE LITIGANT IS A VEXATIOUS LITIGANT IF THE COURT FINDS THE 15 PRO SE LITIGANT ENGAGED IN VEXATIOUS CONDUCT. FOR THE PURPOSES OF THIS 16 SECTION VEXATIOUS CONDUCT INCLUDES ANY OF THE FOLLOWING: 17

1. REPEATED FILING OF COURT ACTIONS SOLELY OR PRIMARILY FOR THE 18 PURPOSE OF HARASSMENT. 19

2. UNREASONABLY EXPANDING OR DELAYING COURT PROCEEDINGS. 20 3. COURT ACTIONS BROUGHT OR DEFENDED WITHOUT SUBSTANTIAL 21

JUSTIFICATION. 22 4. ENGAGING IN ABUSE OF DISCOVERY OR CONDUCT IN DISCOVERY THAT HAS 23

RESULTED IN THE IMPOSITION OF SANCTIONS AGAINST THE PRO SE LITIGANT. 24 5. A PATTERN OF MAKING UNREASONABLE, REPETITIVE AND EXCESSIVE REQUESTS 25

FOR INFORMATION. 26 6. REPEATED FILING OF DOCUMENTS OR REQUESTS FOR RELIEF THAT HAVE BEEN 27

THE SUBJECT OF PREVIOUS RULINGS BY THE COURT IN THE SAME LITIGATION. 28 D. FOR THE PURPOSES OF THIS SECTION, "WITHOUT SUBSTANTIAL 29

JUSTIFICATION" HAS THE SAME MEANING PRESCRIBED IN SECTION 12-349. 30 Sec. 2. Effective date 31 This act is effective from and after December 31, 2014. 32

APPROVED BY THE GOVERNOR APRIL 16, 2014. FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 17, 2014.

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House Engrossed State of Arizona House of Representatives Fifty-first Legislature Second Regular Session 2014

CHAPTER 94

HOUSE BILL 2477

AN ACT

AMENDING SECTIONS 33-1260 AND 33-1806, ARIZONA REVISED STATUTES; RELATING TO CONDOMINIUMS AND PLANNED COMMUNITIES.


H.B. 2477

- 1 -

Be it enacted by the Legislature of the State of Arizona: 1 Section 1. Section 33-1260, Arizona Revised Statutes, is amended to 2

read: 3 33-1260. Resale of units; information required; fees; civil 4

penalty; applicability; definition 5 A. For condominiums with fewer than fifty units, a unit owner shall 6

mail or deliver to a purchaser or a purchaser's authorized agent within ten 7 days after receipt of a written notice of a pending sale of the unit, and for 8 condominiums with fifty or more units, the association shall mail or deliver 9 to a purchaser or a purchaser's authorized agent within ten days after 10 receipt of a written notice of a pending sale that contains the name and 11 address of the purchaser, all of the following in either paper or electronic 12 format: 13

1. A copy of the bylaws and the rules of the association. 14 2. A copy of the declaration. 15 3. A dated statement containing: 16 (a) The telephone number and address of a principal contact for the 17

association, which may be an association manager, an association management 18 company, an officer of the association or any other person designated by the 19 board of directors. 20

(b) The amount of the common expense assessment for the unit and any 21 unpaid common expense assessment, special assessment or other assessment, fee 22 or charge currently due and payable from the selling unit owner. If the 23 request is made by a lienholder, escrow agent, unit owner or person 24 designated by a unit owner pursuant to section 33-1256, failure to provide 25 the information pursuant to this subdivision within the time provided for in 26 this subsection shall extinguish any lien for any unpaid assessment then due 27 against that unit. 28

(c) A statement as to whether a portion of the unit is covered by 29 insurance maintained by the association. 30

(d) The total amount of money held by the association as reserves. 31 (e) If the statement is being furnished by the association, a 32

statement as to whether the records of the association reflect any 33 alterations or improvements to the unit that violate the declaration. The 34 association is not obligated to provide information regarding alterations or 35 improvements that occurred more than six years before the proposed sale. 36 Nothing in this subdivision relieves the seller of a unit from the obligation 37 to disclose alterations or improvements to the unit that violate the 38 declaration, nor precludes the association from taking action against the 39 purchaser of a unit for violations that are apparent at the time of purchase 40 and that are not reflected in the association's records. 41

(f) If the statement is being furnished by the unit owner, a statement 42 as to whether the unit owner has any knowledge of any alterations or 43 improvements to the unit that violate the declaration. 44

(g) A statement of case names and case numbers for pending litigation 45 with respect to the unit filed by the association against the unit owner or 46

H.B. 2477

- 2 -

filed by the unit owner against the association. The unit owner or the 1 association shall not be required to disclose information concerning the 2 pending litigation that would violate any applicable rule of attorney-client 3 privilege under Arizona law. 4

(h) A statement that provides "I hereby acknowledge that the 5 declaration, bylaws and rules of the association constitute a contract 6 between the association and me (the purchaser). By signing this statement, I 7 acknowledge that I have read and understand the association's contract with 8 me (the purchaser). I also understand that as a matter of Arizona law, if I 9 fail to pay my association assessments, the association may foreclose on my 10 property." The statement shall also include a signature line for the 11 purchaser and shall be returned to the association within fourteen calendar 12 days. 13

4. A copy of the current operating budget of the association. 14 5. A copy of the most recent annual financial report of the 15

association. If the report is more than ten pages, the association may 16 provide a summary of the report in lieu of the entire report. 17

6. A copy of the most recent reserve study of the association, if any. 18 7. A statement summarizing any pending lawsuits, except those relating 19

to the collection of assessments owed by unit owners other than the selling 20 unit owner, in which the association is a named party, including the amount 21 of any money claimed. 22

B. A purchaser or seller who is damaged by the failure of the unit 23 owner or the association to disclose the information required by subsection A 24 of this section may pursue all remedies at law or in equity against the unit 25 owner or the association, whichever failed to comply with subsection A of 26 this section, including the recovery of reasonable attorney fees. 27

C. The association may charge the unit owner a fee of no more than an 28 aggregate of four hundred dollars to compensate the association for the costs 29 incurred in the preparation of a statement or other documents furnished by 30 the association pursuant to this section for purposes of resale disclosure, 31 lien estoppel and any other services related to the transfer or use of the 32 property. In addition, the association may charge a rush fee of no more than 33 one hundred dollars if the rush services are required to be performed within 34 seventy-two hours after the request for rush services, and may charge a 35 statement or other documents update fee of no more than fifty dollars if 36 thirty days or more have passed since the date of the original disclosure 37 statement or the date the documents were delivered. The association shall 38 make available to any interested party the amount of any fee established from 39 time to time by the association. If the aggregate fee for purposes of resale 40 disclosure, lien estoppel and any other services related to the transfer or 41 use of a property is less than four hundred dollars on January 1, 2010, the 42 fee may increase at a rate of no more than twenty per cent per year based on 43 the immediately preceding fiscal year's amount not to exceed the four hundred 44 dollar aggregate fee. The association may charge the same fee without regard 45

H.B. 2477

- 3 -

to whether the association is furnishing the statement or other documents in 1 paper or electronic format. 2

D. The fees prescribed by this section shall be collected no earlier 3 than at the close of escrow and may only be charged once to a unit owner for 4 that transaction between the parties specified in the notice required 5 pursuant to subsection A of this section. An association shall not charge or 6 collect a fee relating to services for resale disclosure, lien estoppel and 7 any other services related to the transfer or use of a property except as 8 specifically authorized in this section. An association that charges or 9 collects a fee in violation of this section is subject to a civil penalty of 10 no more than one thousand two hundred dollars. 11

E. This section applies to a managing agent for an association that is 12 acting on behalf of the association. 13

F. A sale in which a public report is issued pursuant to sections 14 32-2183 and 32-2197.02 or a sale pursuant to section 32-2181.02 is exempt THE 15 FOLLOWING ARE EXEMPT from this section. : 16

1. A SALE IN WHICH A PUBLIC REPORT IS ISSUED PURSUANT TO SECTIONS 17 32-2183 AND 32-2197.02. 18

2. A SALE PURSUANT TO SECTION 32-2181.02. 19 3. A CONVEYANCE BY RECORDED DEED THAT BEARS AN EXEMPTION LISTED IN 20

SECTION 11-1134, SUBSECTION B, PARAGRAPH 3 OR 7. ON RECORDATION OF THE DEED 21 AND FOR NO ADDITIONAL CHARGE, THE UNIT OWNER SHALL PROVIDE THE ASSOCIATION 22 WITH THE CHANGES IN OWNERSHIP INCLUDING THE UNIT OWNER'S NAME, BILLING 23 ADDRESS AND PHONE NUMBER. FAILURE TO PROVIDE THE INFORMATION SHALL NOT 24 PREVENT THE UNIT OWNER FROM QUALIFYING FOR THE EXEMPTION PURSUANT TO THIS 25 SECTION. 26

G. This section does not apply to timeshare plans or associations that 27 are subject to chapter 20 of this title. 28

H. For the purposes of this section, unless the context otherwise 29 requires, "unit owner" means the seller of the condominium unit title and 30 excludes any real estate salesperson or real estate broker who is licensed 31 under title 32, chapter 20 and who is acting as a salesperson or broker, any 32 escrow agent who is licensed under title 6, chapter 7 and who is acting as an 33 escrow agent and also excludes a trustee of a deed of trust who is selling 34 the property in a trustee's sale pursuant to chapter 6.1 of this title. 35

Sec. 2. Section 33-1806, Arizona Revised Statutes, is amended to read: 36 33-1806. Resale of units; information required; fees; civil 37

penalty; definition 38 A. For planned communities with fewer than fifty units, a member shall 39

mail or deliver to a purchaser or a purchaser's authorized agent within ten 40 days after receipt of a written notice of a pending sale of the unit, and for 41 planned communities with fifty or more units, the association shall mail or 42 deliver to a purchaser or a purchaser's authorized agent within ten days 43 after receipt of a written notice of a pending sale that contains the name 44 and address of the purchaser, all of the following in either paper or 45 electronic format: 46

H.B. 2477

- 4 -

1. A copy of the bylaws and the rules of the association. 1 2. A copy of the declaration. 2 3. A dated statement containing: 3 (a) The telephone number and address of a principal contact for the 4

association, which may be an association manager, an association management 5 company, an officer of the association or any other person designated by the 6 board of directors. 7

(b) The amount of the common regular assessment and the unpaid common 8 regular assessment, special assessment or other assessment, fee or charge 9 currently due and payable from the selling member. If the request is made by 10 a lienholder, escrow agent, member or person designated by a member pursuant 11 to section 33-1807, failure to provide the information pursuant to this 12 subdivision within the time provided for in this subsection shall extinguish 13 any lien for any unpaid assessment then due against that property. 14

(c) A statement as to whether a portion of the unit is covered by 15 insurance maintained by the association. 16

(d) The total amount of money held by the association as reserves. 17 (e) If the statement is being furnished by the association, a 18

statement as to whether the records of the association reflect any 19 alterations or improvements to the unit that violate the declaration. The 20 association is not obligated to provide information regarding alterations or 21 improvements that occurred more than six years before the proposed sale. 22 Nothing in this subdivision relieves the seller of a unit from the obligation 23 to disclose alterations or improvements to the unit that violate the 24 declaration, nor precludes the association from taking action against the 25 purchaser of a unit for violations that are apparent at the time of purchase 26 and that are not reflected in the association's records. 27

(f) If the statement is being furnished by the member, a statement as 28 to whether the member has any knowledge of any alterations or improvements to 29 the unit that violate the declaration. 30

(g) A statement of case names and case numbers for pending litigation 31 with respect to the unit filed by the association against the member or filed 32 by the member against the association. The member shall not be required to 33 disclose information concerning such pending litigation that would violate 34 any applicable rule of attorney-client privilege under Arizona law. 35

(h) A statement that provides "I hereby acknowledge that the 36 declaration, bylaws and rules of the association constitute a contract 37 between the association and me (the purchaser). By signing this statement, I 38 acknowledge that I have read and understand the association's contract with 39 me (the purchaser). I also understand that as a matter of Arizona law, if I 40 fail to pay my association assessments, the association may foreclose on my 41 property." The statement shall also include a signature line for the 42 purchaser and shall be returned to the association within fourteen calendar 43 days. 44

4. A copy of the current operating budget of the association. 45

H.B. 2477

- 5 -

5. A copy of the most recent annual financial report of the 1 association. If the report is more than ten pages, the association may 2 provide a summary of the report in lieu of the entire report. 3

6. A copy of the most recent reserve study of the association, if any. 4 7. A statement summarizing any pending lawsuits, except those relating 5

to the collection of assessments owed by members other than the selling 6 member, in which the association is a named party, including the amount of 7 any money claimed. 8

B. A purchaser or seller who is damaged by the failure of the member 9 or the association to disclose the information required by subsection A of 10 this section may pursue all remedies at law or in equity against the member 11 or the association, whichever failed to comply with subsection A of this 12 section, including the recovery of reasonable attorney fees. 13

C. The association may charge the member a fee of no more than an 14 aggregate of four hundred dollars to compensate the association for the costs 15 incurred in the preparation of a statement or other documents furnished by 16 the association pursuant to this section for purposes of resale disclosure, 17 lien estoppel and any other services related to the transfer or use of the 18 property. In addition, the association may charge a rush fee of no more than 19 one hundred dollars if the rush services are required to be performed within 20 seventy-two hours after the request for rush services, and may charge a 21 statement or other documents update fee of no more than fifty dollars if 22 thirty days or more have passed since the date of the original disclosure 23 statement or the date the documents were delivered. The association shall 24 make available to any interested party the amount of any fee established from 25 time to time by the association. If the aggregate fee for purposes of resale 26 disclosure, lien estoppel and any other services related to the transfer or 27 use of a property is less than four hundred dollars on January 1, 2010, the 28 fee may increase at a rate of no more than twenty per cent per year based on 29 the immediately preceding fiscal year's amount not to exceed the four hundred 30 dollar aggregate fee. The association may charge the same fee without regard 31 to whether the association is furnishing the statement or other documents in 32 paper or electronic format. 33

D. The fees prescribed by this section shall be collected no earlier 34 than at the close of escrow and may only be charged once to a member for that 35 transaction between the parties specified in the notice required pursuant to 36 subsection A of this section. An association shall not charge or collect a 37 fee relating to services for resale disclosure, lien estoppel and any other 38 services related to the transfer or use of a property except as specifically 39 authorized in this section. An association that charges or collects a fee in 40 violation of this section is subject to a civil penalty of no more than one 41 thousand two hundred dollars. 42

E. This section applies to a managing agent for an association that is 43 acting on behalf of the association. 44

H.B. 2477

- 6 -

F. A sale in which a public report is issued pursuant to sections 1 32-2183 and 32-2197.02 or a sale pursuant to section 32-2181.02 is exempt THE 2 FOLLOWING ARE EXEMPT from this section. : 3

1. A SALE IN WHICH A PUBLIC REPORT IS ISSUED PURSUANT TO SECTIONS 4 32-2183 AND 32-2197.02. 5

2. A SALE PURSUANT TO SECTION 32-2181.02. 6 3. A CONVEYANCE BY RECORDED DEED THAT BEARS AN EXEMPTION LISTED IN 7

SECTION 11-1134, SUBSECTION B, PARAGRAPH 3 OR 7. ON RECORDATION OF THE DEED 8 AND FOR NO ADDITIONAL CHARGE, THE MEMBER SHALL PROVIDE THE ASSOCIATION WITH 9 THE CHANGES IN OWNERSHIP INCLUDING THE MEMBER'S NAME, BILLING ADDRESS AND 10 PHONE NUMBER. FAILURE TO PROVIDE THE INFORMATION SHALL NOT PREVENT THE 11 MEMBER FROM QUALIFYING FOR THE EXEMPTION PURSUANT TO THIS SECTION. 12

G. For the purposes of this section, unless the context otherwise 13 requires, "member" means the seller of the unit title and excludes any real 14 estate salesperson or real estate broker who is licensed under title 32, 15 chapter 20 and who is acting as a salesperson or broker, any escrow agent who 16 is licensed under title 6, chapter 7 and who is acting as an escrow agent and 17 also excludes a trustee of a deed of trust who is selling the property in a 18 trustee's sale pursuant to chapter 6.1 of this title. 19 APPROVED BY THE GOVERNOR APRIL 17, 2014. FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 18, 2014.

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House Engrossed

State of Arizona House of Representatives Fifty-first Legislature Second Regular Session 2014

CHAPTER 23

HOUSE BILL 2027

AN ACT

AMENDING SECTIONS 28-721 AND 28-723, ARIZONA REVISED STATUTES; AMENDING TITLE 28, CHAPTER 3, ARTICLE 9, ARIZONA REVISED STATUTES, BY ADDING SECTION 28-777; RELATING TO DRIVING ON ROADWAYS.


H.B. 2027

- 1 -


read: 3 28-721. Driving on right side of roadway; driving on shoulder; 4

exceptions 5 A. On all roadways of sufficient width, a person shall drive a vehicle 6

on the right half of the roadway except as follows: 7 1. When overtaking and passing another vehicle proceeding in the same 8

direction under the rules governing the movement. 9 2. When the right half of a roadway is closed to traffic while under 10

construction or repair. 11 3. On a roadway divided into three marked lanes for traffic under the 12

rules applicable on the roadway. 13 4. On a roadway designated and signposted for one-way traffic. 14 B. On all roadways, a person driving a vehicle proceeding at less than 15

the normal speed of traffic at the time and place and under the conditions 16 then existing shall drive the vehicle in the right-hand lane then available 17 for traffic or as close as practicable to the right-hand curb or edge of the 18 roadway, except when overtaking and passing another vehicle proceeding in the 19 same direction or when preparing for a left turn at an intersection or into a 20 private road or driveway. 21

C. IN AN AGE RESTRICTED COMMUNITY THAT IS LOCATED IN AN UNINCORPORATED 22 AREA OF A COUNTY WITH A POPULATION OF MORE THAN THREE MILLION PERSONS, A 23 PERSON MAY DRIVE A GOLF CART OR A NEIGHBORHOOD ELECTRIC VEHICLE ON A PAVED 24 SHOULDER THAT IS ADJACENT TO A ROADWAY OR AS CLOSE AS PRACTICABLE TO THE 25 RIGHT-HAND CURB OR EDGE OF A PAVED ROADWAY IF THERE IS NO DELINEATED PAVED 26 SHOULDER. 27

Sec. 2. Section 28-723, Arizona Revised Statutes, is amended to read: 28 28-723. Overtaking a vehicle on the left 29 The following rules govern the overtaking and passing of vehicles 30

proceeding in the same direction: 31 1. The driver of a vehicle overtaking another vehicle proceeding in 32

the same direction shall pass to the left of the vehicle at a safe distance 33 and shall not again drive to the right side of the roadway until safely clear 34 of the overtaken vehicle. EXCEPT AS PROVIDED IN SECTION 28-903, THE DRIVER 35 MAY OVERTAKE AND PASS A GOLF CART OR NEIGHBORHOOD ELECTRIC VEHICLE PURSUANT 36 TO THIS PARAGRAPH EVEN IF THE DRIVER'S VEHICLE SHARES A LANE WITH THE GOLF 37 CART OR NEIGHBORHOOD ELECTRIC VEHICLE WHEN THE OVERTAKING AND PASSING OCCUR. 38

2. Except when overtaking and passing on the right is permitted, the 39 driver of an overtaken vehicle shall give way to the right in favor of the 40 overtaking vehicle on audible signal or blinking of head lamps at nighttime 41 and shall not increase the speed of the overtaken vehicle until completely 42 passed by the overtaking vehicle. 43

H.B. 2027

- 2 -

Sec. 3. Title 28, chapter 3, article 9, Arizona Revised Statutes, is 1 amended by adding section 28-777, to read: 2

28-777. Golf carts and neighborhood electric vehicles; vehicles 3 turning right 4

A PERSON DRIVING A GOLF CART OR A NEIGHBORHOOD ELECTRIC VEHICLE 5 PURSUANT TO SECTION 28-721, SUBSECTION C SHALL YIELD THE RIGHT-OF-WAY TO A 6 VEHICLE THAT IS TRAVELLING IN THE SAME DIRECTION AND THAT IS INTENDING TO 7 TURN TO THE RIGHT. 8 APPROVED BY THE GOVERNOR APRIL 15, 2014. FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 15, 2014.

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Senate Engrossed House Bill State of Arizona House of Representatives Fifty-first Legislature Second Regular Session 2014

HOUSE BILL 2141

AN ACT

AMENDING SECTION 42-13404, ARIZONA REVISED STATUTES; RELATING TO DEED RESTRICTIONS.


H.B. 2141

- 1 -


read: 3 42-13404. Deed restriction on common area use 4 A. As a condition for valuation under this article, the subdivider of 5

a residential subdivision, on approval of the subdivision by the state real 6 estate department pursuant to title 32, chapter 20, article 4, or the 7 community or homeowners' association that owns the common area shall record a 8 deed restriction with the county recorder and file a copy of the restriction 9 with the county assessor restricting the property to use as a common area. 10

B. If the property is converted to a different use in violation of the 11 restrictions, the assessor shall change the classification and revalue the 12 property according to standard appraisal methods and techniques. 13

C. The county assessor may consolidate parcel combinations within the 14 same taxing district if requested by the community or homeowners' 15 association. A community or homeowners' association may provide a one-time 16 list of common area tracts by parcel number to the assessor, in a form 17 prescribed by the department of revenue. 18

D. THE COUNTY ASSESSOR SHALL AUTOMATICALLY CONSOLIDATE PARCEL 19 COMBINATIONS WITHIN THE SAME TAXING DISTRICT. IF AFTER FURTHER REVIEW BY THE 20 ASSESSOR THE PARCEL DOES NOT MEET THE REQUIREMENTS OF A COMMON AREA AS 21 DESCRIBED IN SECTION 42-13402, THE ASSESSOR MAY REVOKE THE STATUTORY 22 VALUATION MADE PURSUANT TO SECTION 42-13403 AND SHALL VALUE THE PARCEL 23 ACCORDING TO STANDARD APPRAISAL TECHNIQUES. THE REVOCATION DOES NOT WAIVE A 24 COMMUNITY OR HOMEOWNERS' ASSOCIATION'S RIGHT TO REQUEST THE COMMON AREA 25 VALUATION. 26

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House Engrossed Senate Bill State of Arizona Senate Fifty-first Legislature Second Regular Session 2014

SENATE BILL 1184

AN ACT

AMENDING SECTION 33-1802, ARIZONA REVISED STATUTES; RELATING TO PLANNED COMMUNITIES.


S.B. 1184

- 1 -


read: 3 33-1802. Definitions 4 In this chapter and in the community documents, unless the context 5

otherwise requires: 6 1. "Association" means a nonprofit corporation or unincorporated 7

association of owners that is created pursuant to a declaration to own and 8 operate portions of a planned community and that has the power under the 9 declaration to assess association members to pay the costs and expenses 10 incurred in the performance of the association's obligations under the 11 declaration. 12

2. "Community documents" means the declaration, bylaws, articles of 13 incorporation, if any, and rules, if any. 14

3. "Declaration" means any instruments, however denominated, that 15 establish a planned community and any amendment to those instruments. 16

4. "Planned community" means a real estate development which THAT 17 includes real estate owned and operated by OR REAL ESTATE ON WHICH AN 18 EASEMENT TO MAINTAIN ROADWAYS OR A COVENANT TO MAINTAIN ROADWAYS IS HELD BY a 19 nonprofit corporation or unincorporated association of owners, that is 20 created for the purpose of managing, maintaining or improving the property 21 and in which the owners of separately owned lots, parcels or units are 22 mandatory members and are required to pay assessments to the association for 23 these purposes. Planned community does not include a timeshare plan or a 24 timeshare association that is governed by chapter 20 of this title OR A 25 CONDOMINIUM THAT IS GOVERNED BY CHAPTER 9 OF THIS TITLE. 26

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11-1134. Exem ptionsA. The affidavit and fee required by this article do not apply to the follow ing instrum ents:1. A deed that represents the paym ent in full or forfeiture of a recorded contract for the sale of real property.2. A lease or easem ent on real property, regardless of the length of the term .3. A deed, patent or contract for the sale or transfer of real property in w hich an agency or representative of the United States, this state, a county, city or tow n of this state or any political subdivision of this state is the nam ed grantor, and authorized seller, or purchaser.4. A quitclaim deed to quiet title as described in section 12-1103, subsection B or otherw ise executed for no m onetary consideration.5. A conveyance of real property that is executed pursuant to a court order.6. A deed to an unpatented m ining claim .7. A deed of gift.B. The affidavit and fee required by this article do not apply to a transfer of title:1. Solely in order to provide or release security for a debt or obligation, including a trustee's deed pursuant to pow er of sale under a deed of trust.2. That confirm s or corrects a deed that w as previously recorded.3. W hen the transfer of title has only nom inal actual consideration for the transfer of residential property betw een:(a) Husband and w ife or ancestor of the husband and w ife.(b) Parent and child, including natural or adopted children and their descendants.(c) Grandparent and grandchild.(d) Natural or adopted siblings.4. O n a sale for delinquent taxes or assessm ents.5. O n partition.6. Pursuant to a m erger.7. For no consideration or nom inal consideration:(a) By a subsidiary to its parent or from a parent to a subsidiary.(b) Am ong com m only controlled entities.(c) From a m em ber to its lim ited liability com pany or from a lim ited liability com pany to a m em ber.(d) From a partner to its partnership.(e) From a partnership to a partner.(f) From a joint venturer to its joint venture.(g) From a joint venture to a joint venturer.(h) From a trust beneficiary to its trustee.(i) From a trustee to its trust beneficiary.(j) From any of the entities in subdivisions (a) through (i) of this paragraph to a single purpose entity in order to obtain financing.8. From a person to a trustee or from a trustee to a trust beneficiary w ith only nom inal actual consideration for the transfer.9. To and from an interm ediary for the purpose of creating a joint tenancy estate or som e other form of ow nership.10. From a husband and w ife or one of them to both husband and w ife to create an estate in com m unity property w ith right of survivorship.11. From tw o or m ore persons to them selves to create an estate in joint tenancy w ith right of survivorship.12. Pursuant to a beneficiary deed w ith only nom inal actual consideration for the transfer.

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13. From an ow ner to itself or a related entity for no or nom inal consideration solely for the purpose of consolidating or splitting parcels.14. Due to a legal nam e change.C. Any instrum ent that describes a transaction that is exem pt under this section shall note the exem ption on the face of the instrum ent at the tim e of recording, indicating the specific exem ption that is claim ed.

©2007 Arizona State Legislature. privacy statment

PRESENTS

THE 2014 COMMUNITY ASSOCIATION LAW LUNCH & LEARN LECTURE SERIES

SEMINAR DATES AND TOPICS INCLUDE:

6/3/2014 2014 Changes in the Laws Affecting Community

Associations. 8/28/2014 Association Record Keeping – What Records an HOA

Has to Keep, How Long They Must Keep Them and Owner Records Requests.

10/30/2014 How to Conduct Board Member Training - Key Issues

Every HOA Board Should Be Taught.

All Seminars will be held at Noon (check in at 11:30 and lunch is provided) at the Phoenix Airport Hilton - 2435 South 47th St., Phoenix, AZ – State Route 143 & University. To register for any of the above seminars and lunch, please contact us by:

Phone: 480-456-1500 E-mail: [email protected] Fax: 480-456-1515

*The Lunch and Learn Lecture Series is free to all Community Association Managers. Additionally, Board members who are clients of Shaw & Lines, LLC may attend free of charge on a first come, first served basis. Non-clients of Shaw & Lines may attend for a $40.00 per person fee. The Seminars may qualify for continuing education credit for community managers with the CMCA, AMS and PCAM designations, as well as continuing legal education credits for Arizona certified document preparers.

Documents

2014 Changes in the Laws Cheat Sheet final 4.25 · CHEAT SHEET LAWS TAKE EFFECT JULY 24, ... property. Unit owners may also ... The law does not prohibit developers from requesting