"You don't achieve harmony by everyone singing the same note" - Doug Loyd

Thursday, May 31, 2012

2012 HOA Related Legislation

This is a list of House Bills and Senate Bills proposed and those adopted during the Jan 2012 - May 2012 session.  Only two were placed into law (title in red).  I'm surprised that some of these failed because they are exactly the kind of legislation needed to change the way board members and owners behave.  I hope to see a few of these bills get resurrected and passed into law in the very near future.
2012 Arizona HOA Legislation - HB 2764


UPDATE

Passed the Senate; went back to House for concurrence and was passed by the House by a vote of 36 ayes, 23 nays and 1 not voting. The Governor vetoed this on May 14, 2012.



Beginning January 1, 2013, HOAs will need to register with the Secretary of State (instead of applicable County recorder) and provide basic information such as the number of homes within the community, cross streets, date of establishment, etc. Minimal impact to HOAs; fee possible.

http://www.azleg.gov/legtext/50leg/2r/bills/hb2764p.pdf

Sponsor - Steve Urie, surie@azleg.gov

2012 Arizona HOA Legislation - HB 2731


UPDATE

This bill is dead.



This bill includes language regarding rental homes in planned communities and condominium associations. It states that homeowners may use their property as a rental property and may designate a third party to act as agent with respect to HOA matters on the property. The association would be prohibited from requiring a copy of rental applications or contracts or from requiring a tenant to limit or waive rights of due process as a condition of occupancy. On rental of an owner's property, the owner or owner's agent shall provide the association the name, age and telephone number of the tenants occupying the unit and a description and license plate number of the tenants' vehicles. If the association is an age restricted community, the owner, the owner's agent or the tenant shall show a government issued identification that bears a photograph and that confirms that the tenant meets the association's age restrictions or requirements.

http://www.azleg.gov/legtext/50leg/2r/bills/hb2731p.pdf

Sponsor - David Burnell Smith, dsmith@azleg.gov
Sponsor - John Kavanagh, jkavanagh@azleg.gov

2012 Arizona HOA Legislation - HB 2484


UPDATE

Senator Klein met with stakeholders to amend the bill to only apply to attorney fees incurred to provide opinion letters or advice on CC&Rs. Senator Klein pulled the bill from Senate Caucus and planned to hold the bill until the 2013 session. Bill is dead for the 2012 session.



Original Bill completely unrelated – Senator Lori Klein ran strike everything amendment dealing with attorney fees. Amendment will void any provision in HOA documents that hold a member liable for attorney fees without regard to whether there has been an legal action or litigation filed. This could have had significant negative impact on collection of attorney fees for collection matters and enforcement matters.

http://www.azleg.gov/legtext/50leg/2r/bills/hb2484p.pdf

Sponsor - Carl Seel, cseel@azleg.gov

2012 Arizona HOA Legislation - HB 2471


UPDATE

Senate Consent Calendar to Third Read/Senate Floor Vote – Positive impact; just helps clarify number of days political signs can be displayed, etc. This bill was signed by Governor Brewer on April 11th. Will become law 90 days from end of session.



This bill contains corrections to eliminate the conflicts that existed on how long political signs can be posted on homeowner property. The revised time frame is 71days before an election and 3 days after an election. The bill also contains clarifying language regarding for sale and for rent signs.

http://www.azleg.gov/legtext/50leg/2r/bills/hb2471p.pdf

Sponsor - David Gowan, dgowan@azleg.gov
Sponsor - Judy Burges, jburges@azleg.gov
Sponsor - Ted Vogt, tvogt@azleg.gov
Co-Sponsor - Frank Antenori, fantenori@azleg.gov
Co-Sponsor - Nancy Barto, nbarto@azleg.gov


2012 Arizona HOA Legislation - HB 2455


UPDATE

This bill is dead.



This bill includes language that states that if a planned community association member or a condo association unit owner incurs attorney fees and is successful in compelling the Board to comply with any provision of the community documents or State law, the individual Board members would be jointly and severally liable for the attorney fees and the planned community association or condominium association cannot indemnify the Board members unless indemnification is approved by a vote of 2/3 or more of the membership. The bills goes on further to state that planned community association and condo Board members who have a conflict of interest may not vote on that issue or agenda item.

http://www.azleg.gov/legtext/50leg/2r/bills/hb2455p.pdf

Sponsor - Vic Williams, vwilliams@azleg.gov

2012 Arizona HOA Legislation - HB 2290


UPDATE

This bill is dead.



The language in this bill states that for any dispute between a planned community association or condominium association and a unit owner, the parties must submit to arbitration or mediation before filing a civil action. Each party would be liable for their own costs in a mediation, but the arbitrator may apportion the costs of arbitration between parties. The bill also has a provision regarding video-taping or audio-taping association meetings which states that a person wishing to audio-tape or video-tape a board meeting or annual meeting must provide notice to the Board 24 hours in advance. The bill also removes the provision in the audio-taping and video-taping law from last year that allows an association to have reasonable rules to regulate video-taping and audio-taping Board meetings.

http://www.azleg.gov/legtext/50leg/1r/bills/hb2330p.pdf
http://www.azleg.gov/legtext/50leg/2r/proposed/h.2290-p1-montenegro.pdf

Sponsor - Jeff Dial, jdial@azleg.gov

2012 Arizona HOA Legislation - HB 2170


UPDATE

The bill went back to the House for concurrence but was not voted on again in time, did not make it to the Governor's desk and is thus dead for this session.



Clarifies the definition of unit owner for purposes of resale disclosure, does not include Escrow Agent as not the seller/unit owner for purposes of resale disclosure. Added Senate approved amendment including language from SB 1476 for Design Review Committees/Security Deposits (DRC).

http://www.azleg.gov/legtext/50leg/2r/bills/hb2170p.pdf

Sponsor - Kate Brophy McGee, kbrophymcgee@azleg.gov



2012 Arizona HOA Legislation - HB 2160


UPDATE

This bill included a penalty of Class 1 Misdemeanor for violations of the elections procedures outlined in the bill. The bill failed to pass the Senate on a vote of 21 nays to 9 ayes. Bill is dead.



This bill establishes further requirements for planned community association and condominium association elections including requiring secret balloting, allowing candidates to designate an observer to witness vote tallying, and prohibiting HOA boards from including endorsements in any official materials. The bill adds further that violations of these requirements would result in a class 1 misdemeanor.

http://www.azleg.gov/legtext/50leg/2r/bills/hb2160p.pdf

Sponsor - Jim Weiers, jweiers@azleg.gov



2012 Arizona HOA Legislation - HB 2136


UPDATE

This bill is dead.



This bill deals with the maintenance of foreclosed properties. Homeowners' associations would be allowed to remove trash or repair hazardous structures on foreclosed properties. The association would also be allowed to place a lien on the property for the costs, and the property owner would be liable.

http://www.azleg.gov/legtext/50leg/2r/bills/hb2136p.pdf

Co-Sponsor - Amanda A. Reeve, areeve@azleg.gov



2012 Arizona HOA Legislation - HB 2095


UPDATE

This bill is dead but we are watching to see if this bill appears as an amendment in another bill that is still active based on comments from the bill sponsor Representative Jack Harper..



The language in this bill states that planned community associations cannot restrict firearms except to comply with Federal and State laws but can restrict firearms in the management office.

http://www.azleg.gov/legtext/50leg/2r/bills/hb2095p.pdf

Sponsor - Matt Heinz, mheinz@azleg.gov



2012 Arizona HOA Legislation - HB 2037


UPDATE

This bill is dead.



Authorized agents (such as AAM) are added in this bill to the list of entities that may represent a corporation (including homeowner associations that are non-profit corporations) in small claims court actions.

http://www.azleg.gov/legtext/50leg/2r/bills/hb2037p.pdf

Sponsor - Jack W. Harper, jharper@azleg.gov
Co-Sponsor - Debbie Lesko, dlesko@azleg.gov



2012 Arizona HOA Legislation - HB 2030


UPDATE

Bill does not apply to HOAs with private streets. Only deals with non-commercial vehicles; allows HOAs to regulate parking on public streets if two or more cars ("non-commercial vehicles") can be parked in driveways. This bill was defeated in the House by a vote of 16 ayes, 43 nays and 1 not voting. Bill is dead.



This bill states that after the period of Declarant control, an association would have no authority over and could not regulate any roadway for which the ownership has been dedicated to or is otherwise held by a governmental entity (i.e. public roads).

http://www.azleg.gov/legtext/50leg/2r/bills/hb2030p.pdf

Sponsor - John Kavanagh, jkavanagh@azleg.gov


                                                                                                                                                                
2012 Arizona HOA Legislation - SB 1065


UPDATE

Bill died in Senate in which it failed to pass by a vote of 26 nays to 4 ayes.



This bill states that municipal and county ordinances and HOA policies that regulate or prohibit a dog from running at large (i.e. off the leash) do not apply if the dog's owner provides proof of canine liability insurance of at least $100,000 for injury to any person or damage to any property caused by the dog.

http://www.azleg.gov/legtext/50leg/2r/bills/sb1065p.pdf
http://www.azleg.gov/legtext/50leg/2r/proposed/s.10651120.pdf

Sponsor - Lori Klein, lklein@azleg.gov

2012 Arizona HOA Legislation - SB 1113


UPDATE


Bill failed to pass House Judiciary Committee. Bill is dead.



This bill is the Senate's version of HB 2030 on public roadways. It states that after the period of Declarant control, an association would have no authority over and could not regulate any roadway for which the ownership has been dedicated to or is otherwise held by a governmental entity (i.e. public roads).

http://www.azleg.gov/legtext/50leg/2r/bills/sb1113p.pdf

Sponsor - Nancy Barto, nbarto@azleg.gov
Co-Sponsor - Frank Antenori, fantenori@azleg.gov
Co-Sponsor - Andy Biggs, abiggs@azleg.gov
Co-Sponsor - Rich Crandall, rcrandall@azleg.gov
Co-Sponsor - Ron Gould, rgould@azleg.gov
Co-Sponsor - Gail Griffin, ggriffin@azleg.gov
Co-Sponsor - Don Shooter, dshooter@azleg.gov

2012 Arizona HOA Legislation - SB 1222


UPDATE

Failed to pass Senate; Sponsor voted no on bill allowing her to ask for reconsideration under parliamentary procedure. Bill is dead.



This bill would require that planned community associations and condominium associations have an ombudsman elected in the same manner as other members of the HOA Board. The ombudsman would be a homeowner who would serve as an impartial decision maker in resolving disputes between the Board and one or more homeowners. The ombudsman's decision regarding the disputes would be final and the association would be responsible for costs incurred to provide arbitration and mediation training for the ombudsman.

http://www.azleg.gov/legtext/50leg/2r/bills/sb1222p.pdf
http://www.azleg.gov/legtext/50leg/2r/adopted/s.1222gr.pdf

Sponsor - Lori Klein, lklein@azleg.gov
Sponsor - Rick Murphy, rmurphy@azleg.gov
Sponsor - David Schapira, dschapira@azleg.gov
Sponsor - Steve Smith, stevesmith@azleg.gov
Co-Sponsor - Paula Aboud, paboud@azleg.gov
Co-Sponsor - Sylvia Allen, sallen@azleg.gov
Co-Sponsor - Frank Antenori, fantenori@azleg.gov
Co-Sponsor - Nancy Barto, nbarto@azleg.gov
Co-Sponsor - Andy Biggs, abiggs@azleg.gov
Co-Sponsor - Olivia Cajero Bedford, ocajerobedford@azleg.gov
Co-Sponsor - Adam Driggs, adriggs@azleg.gov
Co-Sponsor - Steve Gallardo, sgallardo@azleg.gov
Co-Sponsor - Linda Gray, lgray@azleg.gov
Co-Sponsor - Gail Griffin, ggriffin@azleg.gov
Co-Sponsor - Jerry Lewis, jlewis@azleg.gov
Co-Sponsor - David Lujan, dlujan@azleg.gov
Co-Sponsor - John McComish, jmccomish@azleg.gov
Co-Sponsor - Al Melvin, amelvin@azleg.gov
Co-Sponsor - Robert Meza, rmeza@azleg.gov
Co-Sponsor - Steve Pierce, spierce@azleg.gov
Co-Sponsor - Michele Reagan, mreagan@azleg.gov
Co-Sponsor - Don Shooter, dshooter@azleg.gov
Co-Sponsor - Steve Yarbrough, syarbrough@azleg.gov
Co-Sponsor - Jeff Dial , jdial@azleg.gov
Co-Sponsor - David Gowan, dgowan@azleg.gov
Co-Sponsor - John Kavanagh, jkavanagh@azleg.gov

2012 Arizona HOA Legislation - SB 1240


UPDATE

Stricken from Senate Consent Calendar end of January. Bill is dead for this session.



The language in this bill states that if a homeowner incurs attorney fees in a court action where the court determines that the HOA engaged in selective enforcement, the homeowner would be entitled to an award of damages of the greater of either triple the total penalty assessed or triple the homeowner's actual damages, plus legal fees and costs.

http://www.azleg.gov/legtext/50leg/2r/bills/sb1240p.pdf

Sponsor - Rick Murphy, rmurphy@azleg.gov
Co-Sponsor - Andy Biggs, abiggs@azleg.gov
Co-Sponsor - Ron Gould, rgould@azleg.gov

2012 Arizona HOA Legislation - SB 1468


UPDATE

Stricken from Senate Consent Calendar end of February by Sen. Antenori. Bill is dead.



This bills states that if a homeowner incurs attorney fees in a court action between the association or the board and the homeowner regarding enforcement of the association documents and the homeowner substantially prevails in the action, the following apply:

1. The members of the board of directors who voted on the record to support the court action against the homeowner would be personally liable to the association for attorney fees and costs incurred by the association in the action.

2. If there is no record of who voted to support the court action against the homeowner, all of the members of the board of directors would be personally liable to the association for attorney fees and costs incurred by the association in the action.

http://www.azleg.gov/legtext/50leg/2r/bills/sb1468p.pdf

Sponsor - Lori Klein, lklein@azleg.gov
Sponsor - David Schapira, dschapira@azleg.gov
Co-Sponsor - Al Melvin, amelvin@azleg.gov
Co-Sponsor - Rick Murphy, rmurphy@azleg.gov
Co-Sponsor - Don Shooter, dshooter@azleg.gov
Co-Sponsor - Steve Smith, stevesmith@azleg.gov

2012 Arizona HOA Legislation - SB 1469


UPDATE

Stricken from Senate Consent Calendar end of February by Sen. Antenori. Bill is dead.



This bill states that HOA liens for assessments and related costs may not be foreclosed and the liens would only be effective on conveyance of any interest in the property.

http://www.azleg.gov/legtext/50leg/2r/bills/sb1469p.pdf

Sponsor - Lori Klein, lklein@azleg.gov
Sponsor - David Schapira, dschapira@azleg.gov
Co-Sponsor - Paula Aboud, paboud@azleg.gov
Sponsor - John McComish, jmccomish@azleg.gov
Sponsor - Al Melvin, amelvin@azleg.gov
Co-Sponsor - Rick Murphy, rmurphy@azleg.gov
Co-Sponsor - Don Shooter, dshooter@azleg.gov
Co-Sponsor - Steve Smith, stevesmith@azleg.gov

2012 Arizona HOA Legislation - SB 1476


UPDATE

Bill is awaiting Governor Brewer's signature or veto which she has until May 15th to do or the bill will automatically become law.



This bill states that HOA declarations (i.e. CC&Rs) may only be amended by a vote of the HOA membership. It also includes language that says that membership on an HOA architectural or design review committee must be an elected office open to the full membership of the HOA. The bill further states that if an HOA requires a member to pay a security deposit to secure completion of a construction project or compliance with approved plans, the deposit must be placed in an escrow account meeting specified requirements. Lastly, the bill states that an HOA must provide for at least two on-site formal reviews during construction to determine compliance with approved plans.

http://www.azleg.gov/legtext/50leg/2r/bills/sb1476s.pdf

Sponsor - Ron Gould, rgould@azleg.gov







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