| 1 | 1 | | PREFILED DEC 21 2023 REFERENCE TITLE: homeowners' associations; records requests State of Arizona House of Representatives Fifty-sixth Legislature Second Regular Session 2024 HB 2085 Introduced by Representative Hendrix An Act amending sections 33-1258 and 33-1805, Arizona Revised Statutes; relating to condominiums and planned communities. (TEXT OF BILL BEGINS ON NEXT PAGE) |
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| 7 | 7 | | PREFILED DEC 21 2023 |
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| 9 | 9 | | REFERENCE TITLE: homeowners' associations; records requests |
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| 10 | 10 | | State of Arizona House of Representatives Fifty-sixth Legislature Second Regular Session 2024 |
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| 11 | 11 | | HB 2085 |
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| 12 | 12 | | Introduced by Representative Hendrix |
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| 13 | 13 | | |
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| 14 | 14 | | REFERENCE TITLE: homeowners' associations; records requests |
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| 24 | 24 | | State of Arizona |
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| 25 | 25 | | |
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| 26 | 26 | | House of Representatives |
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| 27 | 27 | | |
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| 28 | 28 | | Fifty-sixth Legislature |
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| 30 | 30 | | Second Regular Session |
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| 32 | 32 | | 2024 |
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| 40 | 40 | | HB 2085 |
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| 43 | 43 | | |
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| 44 | 44 | | Introduced by |
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| 46 | 46 | | Representative Hendrix |
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| 64 | 64 | | An Act |
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| 67 | 67 | | |
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| 68 | 68 | | amending sections 33-1258 and 33-1805, Arizona Revised Statutes; relating to condominiums and planned communities. |
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| 74 | 74 | | (TEXT OF BILL BEGINS ON NEXT PAGE) |
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| 78 | 78 | | Be it enacted by the Legislature of the State of Arizona: Section 1. Section 33-1258, Arizona Revised Statutes, is amended to read: START_STATUTE33-1258. Association financial and other records; applicability; definition A. Except as provided in subsection B D of this section and on request, all financial and other records of the association shall be made reasonably available for examination by any member or any person designated by the member in writing as the member's representative if the request complies with all of the following: 1. The unit owner's request is made in good faith. 2. The unit owner describes with reasonable particularity the unit owner's proper purpose and the records that the unit owner wishes to inspect. 3. The records are directly connected with the unit owner's purpose. B. REcords that are made available online are deemed to be reasonably available. C. The association shall not charge a member or any person designated by the member in writing for making material available for review. The association shall have has ten business days to fulfill a request for examination. On request for purchase of copies of records by any member or any person designated by the member in writing as the member's representative, the association shall have has ten business days to provide copies of the requested records. An association may charge a fee for making copies, whether physical copies or digital copies, of not more than fifteen cents $.15 per page, to be paid by the unit owner when the copies are made available. B. D. Books and records kept by or on behalf of the association and the board may be withheld from disclosure to the extent that the portion withheld relates to any of the following: 1. Privileged communication between an attorney for the association and the association. 2. Pending litigation. 3. Meeting minutes or other records of a session of a board meeting that is not required to be open to all members pursuant to section 33-1248. 4. Personal, health or financial records of an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association, including records of the association directly related to the personal, health or financial information about an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association. 5. Records relating to the job performance of, compensation of, health records of or specific complaints against an individual employee of the association or an individual employee of a contractor of the association who works under the direction of the association. 6. Records that were requested within the preceding two years and that have not been modified. C. E. The association shall not be required to disclose financial and other records of the association if disclosure would violate any state or federal law or if the request or any portion of the request is for disclosure of any records that were previously provided to the unit owner or the unit owner's representative. D. F. This section does not apply to an association for a timeshare plan that is subject to chapter 20 of this title. G. For the purposes of this section, "financial and other records" means only the following: 1. The declaration. 2. The name, address and telephone number of the association's designated agent. 3. The bylaws of the association. 4. The names and property addresses of all association unit owners. 5. Except for executive sessions of the board of directors, the minutes of all meetings of the unit owners' association and the board of directors for the previous three years, and records of all actions taken by a committee in place of the board of directors or on behalf of the association for the previous three years. 6. The operating budget for the current fiscal year. 7. Current assessments, including both regular and special assessments. 8. Financial statements and accounts, association-provided service or utility records and amounts held in reserve for the previous three years. 9. The most recent financial audit, review or compilation pursuant to section 33-1243. 10. All current contracts entered into by the association or the board of directors on behalf of the association. 11. Current insurance policies, including company names, policy limits, deductibles, additional named insureds and expiration dates for property, general liability and association, director and officer professional liability and fidelity policies. 12. Any electronic record of action taken by the board of directors for the previous three years. END_STATUTE Sec. 2. Section 33-1805, Arizona Revised Statutes, is amended to read: START_STATUTE33-1805. Association financial and other records; definition A. Except as provided in subsection B D of this section and on request, all financial and other records of the association shall be made reasonably available for examination by any member or any person designated by the member in writing as the member's representative if the request complies with all of the following: 1. The member's request is made in good faith. 2. The member describes with reasonable particularity the member's proper purpose and the records that the member wishes to inspect. 3. The records are directly connected with the member's purpose. B. Records that are made available online are deemed to be reasonably available. C. The association shall not charge a member or any person designated by the member in writing for making material available for review. The association shall have has ten business days to fulfill a request for examination. On request for purchase of copies of records by any member or any person designated by the member in writing as the member's representative, the association shall have has ten business days to provide copies of the requested records. An association may charge a fee for making copies, whether physical copies or digital copies, of not more than fifteen cents $.15 per page, to be paid by the member when the copies are made available. B. D. Books and records kept by or on behalf of the association and the board may be withheld from disclosure to the extent that the portion withheld relates to any of the following: 1. Privileged communication between an attorney for the association and the association. 2. Pending litigation. 3. Meeting minutes or other records of a session of a board meeting that is not required to be open to all members pursuant to section 33-1804. 4. Personal, health or financial records of an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association, including records of the association directly related to the personal, health or financial information about an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association. 5. Records relating to the job performance of, compensation of, health records of or specific complaints against an individual employee of the association or an individual employee of a contractor of the association who works under the direction of the association. 6. Records that were requested within the preceding two years and that have not been modified. C. E. The association shall not be required to disclose financial and other records of the association if disclosure would violate any state or federal law or if the request or any portion of the request is for disclosure of any records that were previously provided to the unit owner or the unit owner's representative. F. For the purposes of this section, "financial and other records" means only the following: 1. The declaration. 2. The name, address and telephone number of the association's designated agent. 3. The bylaws of the association. 4. The names and property addresses of all association members. 5. Except for executive sessions of the board of directors, the minutes of all meetings of the association and the board of directors for the previous three years, and records of all actions taken by a committee in place of the board of directors or on behalf of the association for the previous three years. 6. The operating budget for the current fiscal year. 7. Current assessments, including both regular and special assessments. 8. Financial statements and accounts, association-provided service or utility records and amounts held in reserve for the previous three years. 9. The most recent financial audit, review or compilation pursuant to section 33-1810. 10. All current contracts entered into by the association or the board of directors on behalf of the association. 11. Current insurance policies, including company names, policy limits, deductibles, additional named insureds and expiration dates for property, general liability and association, director and officer professional liability and fidelity policies. 12. Any electronic record of action taken by the board of directors for the previous three years. END_STATUTE |
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| 80 | 80 | | Be it enacted by the Legislature of the State of Arizona: |
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| 82 | 82 | | Section 1. Section 33-1258, Arizona Revised Statutes, is amended to read: |
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| 83 | 83 | | |
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| 84 | 84 | | START_STATUTE33-1258. Association financial and other records; applicability; definition |
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| 85 | 85 | | |
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| 86 | 86 | | A. Except as provided in subsection B D of this section and on request, all financial and other records of the association shall be made reasonably available for examination by any member or any person designated by the member in writing as the member's representative if the request complies with all of the following: |
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| 87 | 87 | | |
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| 88 | 88 | | 1. The unit owner's request is made in good faith. |
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| 90 | 90 | | 2. The unit owner describes with reasonable particularity the unit owner's proper purpose and the records that the unit owner wishes to inspect. |
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| 91 | 91 | | |
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| 92 | 92 | | 3. The records are directly connected with the unit owner's purpose. |
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| 93 | 93 | | |
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| 94 | 94 | | B. REcords that are made available online are deemed to be reasonably available. |
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| 95 | 95 | | |
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| 96 | 96 | | C. The association shall not charge a member or any person designated by the member in writing for making material available for review. The association shall have has ten business days to fulfill a request for examination. On request for purchase of copies of records by any member or any person designated by the member in writing as the member's representative, the association shall have has ten business days to provide copies of the requested records. An association may charge a fee for making copies, whether physical copies or digital copies, of not more than fifteen cents $.15 per page, to be paid by the unit owner when the copies are made available. |
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| 97 | 97 | | |
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| 98 | 98 | | B. D. Books and records kept by or on behalf of the association and the board may be withheld from disclosure to the extent that the portion withheld relates to any of the following: |
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| 99 | 99 | | |
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| 100 | 100 | | 1. Privileged communication between an attorney for the association and the association. |
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| 101 | 101 | | |
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| 102 | 102 | | 2. Pending litigation. |
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| 104 | 104 | | 3. Meeting minutes or other records of a session of a board meeting that is not required to be open to all members pursuant to section 33-1248. |
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| 106 | 106 | | 4. Personal, health or financial records of an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association, including records of the association directly related to the personal, health or financial information about an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association. |
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| 107 | 107 | | |
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| 108 | 108 | | 5. Records relating to the job performance of, compensation of, health records of or specific complaints against an individual employee of the association or an individual employee of a contractor of the association who works under the direction of the association. |
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| 109 | 109 | | |
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| 110 | 110 | | 6. Records that were requested within the preceding two years and that have not been modified. |
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| 111 | 111 | | |
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| 112 | 112 | | C. E. The association shall not be required to disclose financial and other records of the association if disclosure would violate any state or federal law or if the request or any portion of the request is for disclosure of any records that were previously provided to the unit owner or the unit owner's representative. |
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| 113 | 113 | | |
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| 114 | 114 | | D. F. This section does not apply to an association for a timeshare plan that is subject to chapter 20 of this title. |
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| 115 | 115 | | |
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| 116 | 116 | | G. For the purposes of this section, "financial and other records" means only the following: |
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| 117 | 117 | | |
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| 118 | 118 | | 1. The declaration. |
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| 119 | 119 | | |
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| 120 | 120 | | 2. The name, address and telephone number of the association's designated agent. |
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| 121 | 121 | | |
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| 122 | 122 | | 3. The bylaws of the association. |
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| 123 | 123 | | |
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| 124 | 124 | | 4. The names and property addresses of all association unit owners. |
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| 125 | 125 | | |
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| 126 | 126 | | 5. Except for executive sessions of the board of directors, the minutes of all meetings of the unit owners' association and the board of directors for the previous three years, and records of all actions taken by a committee in place of the board of directors or on behalf of the association for the previous three years. |
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| 127 | 127 | | |
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| 128 | 128 | | 6. The operating budget for the current fiscal year. |
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| 129 | 129 | | |
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| 130 | 130 | | 7. Current assessments, including both regular and special assessments. |
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| 131 | 131 | | |
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| 132 | 132 | | 8. Financial statements and accounts, association-provided service or utility records and amounts held in reserve for the previous three years. |
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| 133 | 133 | | |
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| 134 | 134 | | 9. The most recent financial audit, review or compilation pursuant to section 33-1243. |
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| 135 | 135 | | |
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| 136 | 136 | | 10. All current contracts entered into by the association or the board of directors on behalf of the association. |
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| 137 | 137 | | |
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| 138 | 138 | | 11. Current insurance policies, including company names, policy limits, deductibles, additional named insureds and expiration dates for property, general liability and association, director and officer professional liability and fidelity policies. |
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| 139 | 139 | | |
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| 140 | 140 | | 12. Any electronic record of action taken by the board of directors for the previous three years. END_STATUTE |
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| 141 | 141 | | |
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| 142 | 142 | | Sec. 2. Section 33-1805, Arizona Revised Statutes, is amended to read: |
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| 143 | 143 | | |
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| 144 | 144 | | START_STATUTE33-1805. Association financial and other records; definition |
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| 145 | 145 | | |
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| 146 | 146 | | A. Except as provided in subsection B D of this section and on request, all financial and other records of the association shall be made reasonably available for examination by any member or any person designated by the member in writing as the member's representative if the request complies with all of the following: |
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| 147 | 147 | | |
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| 148 | 148 | | 1. The member's request is made in good faith. |
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| 149 | 149 | | |
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| 150 | 150 | | 2. The member describes with reasonable particularity the member's proper purpose and the records that the member wishes to inspect. |
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| 151 | 151 | | |
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| 152 | 152 | | 3. The records are directly connected with the member's purpose. |
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| 153 | 153 | | |
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| 154 | 154 | | B. Records that are made available online are deemed to be reasonably available. |
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| 155 | 155 | | |
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| 156 | 156 | | C. The association shall not charge a member or any person designated by the member in writing for making material available for review. The association shall have has ten business days to fulfill a request for examination. On request for purchase of copies of records by any member or any person designated by the member in writing as the member's representative, the association shall have has ten business days to provide copies of the requested records. An association may charge a fee for making copies, whether physical copies or digital copies, of not more than fifteen cents $.15 per page, to be paid by the member when the copies are made available. |
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| 157 | 157 | | |
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| 158 | 158 | | B. D. Books and records kept by or on behalf of the association and the board may be withheld from disclosure to the extent that the portion withheld relates to any of the following: |
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| 159 | 159 | | |
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| 160 | 160 | | 1. Privileged communication between an attorney for the association and the association. |
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| 161 | 161 | | |
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| 162 | 162 | | 2. Pending litigation. |
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| 163 | 163 | | |
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| 164 | 164 | | 3. Meeting minutes or other records of a session of a board meeting that is not required to be open to all members pursuant to section 33-1804. |
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| 165 | 165 | | |
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| 166 | 166 | | 4. Personal, health or financial records of an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association, including records of the association directly related to the personal, health or financial information about an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association. |
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| 167 | 167 | | |
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| 168 | 168 | | 5. Records relating to the job performance of, compensation of, health records of or specific complaints against an individual employee of the association or an individual employee of a contractor of the association who works under the direction of the association. |
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| 169 | 169 | | |
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| 170 | 170 | | 6. Records that were requested within the preceding two years and that have not been modified. |
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| 171 | 171 | | |
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| 172 | 172 | | C. E. The association shall not be required to disclose financial and other records of the association if disclosure would violate any state or federal law or if the request or any portion of the request is for disclosure of any records that were previously provided to the unit owner or the unit owner's representative. |
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| 173 | 173 | | |
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| 174 | 174 | | F. For the purposes of this section, "financial and other records" means only the following: |
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| 175 | 175 | | |
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| 176 | 176 | | 1. The declaration. |
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| 177 | 177 | | |
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| 178 | 178 | | 2. The name, address and telephone number of the association's designated agent. |
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| 179 | 179 | | |
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| 180 | 180 | | 3. The bylaws of the association. |
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| 181 | 181 | | |
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| 182 | 182 | | 4. The names and property addresses of all association members. |
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| 183 | 183 | | |
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| 184 | 184 | | 5. Except for executive sessions of the board of directors, the minutes of all meetings of the association and the board of directors for the previous three years, and records of all actions taken by a committee in place of the board of directors or on behalf of the association for the previous three years. |
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| 185 | 185 | | |
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| 186 | 186 | | 6. The operating budget for the current fiscal year. |
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| 187 | 187 | | |
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| 188 | 188 | | 7. Current assessments, including both regular and special assessments. |
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| 189 | 189 | | |
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| 190 | 190 | | 8. Financial statements and accounts, association-provided service or utility records and amounts held in reserve for the previous three years. |
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| 191 | 191 | | |
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| 192 | 192 | | 9. The most recent financial audit, review or compilation pursuant to section 33-1810. |
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| 193 | 193 | | |
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| 194 | 194 | | 10. All current contracts entered into by the association or the board of directors on behalf of the association. |
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| 195 | 195 | | |
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| 196 | 196 | | 11. Current insurance policies, including company names, policy limits, deductibles, additional named insureds and expiration dates for property, general liability and association, director and officer professional liability and fidelity policies. |
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| 197 | 197 | | |
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| 198 | 198 | | 12. Any electronic record of action taken by the board of directors for the previous three years. END_STATUTE |
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