Bill Text: AZ HB2330 | 2011 | Fiftieth Legislature 1st Regular | Introduced
Bill Title: Association meetings; condominiums; planned communities
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-01-24 - Referred to House GOV Committee [HB2330 Detail]
Download: Arizona-2011-HB2330-Introduced.html
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REFERENCE TITLE: association meetings; condominiums; planned communities |
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State of Arizona House of Representatives Fiftieth Legislature First Regular Session 2011
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HB 2330 |
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Introduced by Representative Harper
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AN ACT
amending sections 33-1248 and 33-1804, Arizona Revised Statutes; relating to condominiums and planned communities.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 33-1248, Arizona Revised Statutes, is amended to read:
33-1248. Open meetings; exceptions; declaration of policy
A. Notwithstanding any provision in the declaration, bylaws or other documents to the contrary, all meetings of the unit owners' association and the board of directors, and any regularly scheduled committee meetings, are open to all members of the association or any person designated by a member in writing as the member's representative and all members or designated representatives so desiring shall be permitted to attend and speak at an appropriate time during the deliberations and proceedings. The board may place reasonable time restrictions on those persons speaking during the meeting but shall permit a member or a member's designated representative to speak once after the board has discussed a specific agenda item but before the board takes formal action on an that item under discussion in addition to any other opportunities to speak. The board shall provide for a reasonable number of persons to speak on each side of an issue. Any portion of a meeting may be closed only if that portion of the meeting is limited to consideration of one or more of the following:
1. Legal advice from an attorney for the board or the association. On final resolution of any matter for which the board received legal advice or that concerned pending or contemplated litigation, the board may disclose information about that matter in an open meeting except for matters that are required to remain confidential by the terms of a settlement agreement or judgment.
2. Pending or contemplated litigation.
3. 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, 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.
4. Matters 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.
5. Discussion of a unit owner's appeal of any violation cited or penalty imposed by the association except on request of the affected unit owner that the meeting be held in an open session.
B. Notwithstanding any provision in the condominium documents, all meetings of the unit owners' association and the board shall be held in this state. A meeting of the unit owners' association shall be held at least once each year. Special meetings of the unit owners' association may be called by the president, by a majority of the board of directors or by unit owners having at least twenty‑five per cent, or any lower percentage specified in the bylaws, of the votes in the association. Unless otherwise provided in the articles or the bylaws of the association, Not fewer than ten nor more than fifty days in advance of any meeting of the unit owners, the secretary shall cause notice to be hand delivered or sent prepaid by United States mail to the mailing address of each unit or to any other mailing address designated in writing by the unit owner. The notice of any meeting of the unit owners shall state the time and place of the meeting. The notice of any special meeting of the unit owners shall also state the purpose for which the meeting is called, including the general nature of any proposed amendment to the declaration or bylaws, any changes in assessments that require approval of the unit owners and any proposal to remove a director or officer. The failure of any unit owner to receive actual notice of a meeting of the unit owners does not affect the validity of any action taken at that meeting.
C. Unless otherwise provided in the articles or bylaws of the association Notwithstanding any provision in the declaration, bylaws or other condominium documents, for meetings of the board of directors that are held after the termination of declarant control of the association, notice to unit owners of meetings of the board of directors shall be given at least forty‑eight hours in advance of the meeting by newsletter, conspicuous posting or any other reasonable means as determined by the board of directors. An affidavit of notice by an officer of the association is prima facie evidence that notice was given as prescribed by this section. Notice to unit owners of meetings of the board of directors is not required if emergency circumstances require action by the board before notice can be given. Any notice of a board meeting shall state the time and place of the meeting. The failure of any unit owner to receive actual notice of a meeting of the board of directors does not affect the validity of any action taken at that meeting.
D. Notwithstanding any provision in the declaration, bylaws or other condominium documents, for meetings of the board of directors or of the unit owners' association that are held after the termination of declarant control of the association, all of the following apply:
1. The agenda shall be available to all unit owners attending.
2. A meeting of the board of directors may adjourn into a closed session on a vote of the board of directors and after the board announces the reason for the closed session at an open session of a meeting of the board. A closed session of the board of directors may be held without first meeting in an open session if notice is given as prescribed by this section. The board of directors shall disclose at an open meeting any decision to become a party to a lawsuit. This paragraph does not apply to an action filed pursuant to title 12, chapter 8, article 14.
3. An emergency meeting of the board of directors may be called to discuss business or take action that cannot be delayed until the next regularly scheduled board meeting. The minutes of the emergency meeting shall state the reason necessitating the emergency meeting. The minutes of the emergency meeting shall be read and approved at the next regularly scheduled meeting of the board of directors.
4. The board of directors may take action without a meeting as prescribed in section 10-3821. If the board takes action without a meeting, a statement shall be prepared stating that an action has been taken without a meeting, the reason for taking the action and the action taken. This statement shall be read into the minutes of the next regularly scheduled meeting of the board of directors. The procedure for taking action without a meeting shall be used only when emergency circumstances warrant a meeting and there is not sufficient time to provide notice for a meeting, or when a quorum of the board is impossible to obtain and necessary business must be undertaken. This procedure shall not be used to take the place of conducting business at a regularly scheduled board meeting.
5. Meetings of the unit owners' association or the board of directors, other than closed sessions of the board of directors, may be recorded by means of a video camera or tape recorder or any other means of audio reproduction only if the participants are notified and there is no active interference with the conduct of the meeting.
6. Other than actions allowed by paragraph 4 of this subsection, a quorum of the board of directors shall not meet, conduct business, vote or make any decisions by means of telephone or any type of electronic communications, such as cellular telephone phone, electronic mail, chat rooms or other methods of internet communication.
7. A quorum of the board of directors may meet by means of a telephone conference if a speakerphone is available in the meeting room that allows board members and unit owners to hear all parties who are speaking during the meeting.
8. Any quorum of the board of directors that meets informally to discuss association business, including workshops, shall comply with the open meeting and notice provisions of this section without regard to whether the board votes or takes any action on any matter at that informal meeting.
E. It is the policy of this state as reflected in this section that all meetings of a condominium, whether meetings of the unit owners' association or meetings of the board of directors of the association, be conducted openly and that notices and agendas be provided for those meetings that contain the information that is reasonably necessary to inform the unit owners of the matters to be discussed or decided and to ensure that unit owners have the ability to speak after discussion of agenda items, but before a vote of the board of directors is taken. Toward this end, any person or entity that is charged with the interpretation of these provisions shall take into account this declaration of policy and shall construe any provision of this section in favor of open meetings.
D. F. This section does not apply to timeshare plans or associations that are subject to chapter 20 of this title.
Sec. 2. Section 33-1804, Arizona Revised Statutes, is amended to read:
33-1804. Open meetings; exceptions; declarataion of policy
A. Notwithstanding any provision in the declaration, bylaws or other documents to the contrary, all meetings of the members' association and the board of directors, and any regularly scheduled committee meetings, are open to all members of the association or any person designated by a member in writing as the member's representative and all members or designated representatives so desiring shall be permitted to attend and speak at an appropriate time during the deliberations and proceedings. The board may place reasonable time restrictions on those persons speaking during the meeting but shall permit a member or member's designated representative to speak once after the board has discussed a specific agenda item but before the board takes formal action on an that item under discussion in addition to any other opportunities to speak. The board shall provide for a reasonable number of persons to speak on each side of an issue. Any portion of a meeting may be closed only if that closed portion of the meeting is limited to consideration of one or more of the following:
1. Legal advice from an attorney for the board or the association. On final resolution of any matter for which the board received legal advice or that concerned pending or contemplated litigation, the board may disclose information about that matter in an open meeting except for matters that are required to remain confidential by the terms of a settlement agreement or judgment.
2. Pending or contemplated litigation.
3. 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, 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.
4. Matters 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.
5. Discussion of a member's appeal of any violation cited or penalty imposed by the association except on request of the affected member that the meeting be held in an open session.
B. Notwithstanding any provision in the community documents, all meetings of the members' association and the board shall be held in this state. A meeting of the members' association shall be held at least once each year. Special meetings of the members' association may be called by the president, by a majority of the board of directors or by members having at least twenty‑five per cent, or any lower percentage specified in the bylaws, of the votes in the association. Unless otherwise provided in the articles or bylaws of the association, Not fewer than ten nor more than fifty days in advance of any meeting of the members, the secretary shall cause notice to be hand‑delivered or sent prepaid by United States mail to the mailing address for each lot, parcel or unit owner or to any other mailing address designated in writing by a member. The notice shall state the time and place of the meeting. A notice of any special meeting of the members shall also state the purpose for which the meeting is called, including the general nature of any proposed amendment to the declaration or bylaws, changes in assessments that require approval of the members and any proposal to remove a director or an officer. The failure of any member to receive actual notice of a meeting of the members does not affect the validity of any action taken at that meeting.
C. Unless otherwise provided in the articles or bylaws of the association Notwithstanding any provision in the declaration, bylaws or other community documents, for meetings of the board of directors that are held after the termination of declarant control of the association, notice to members of meetings of the board of directors shall be given at least forty‑eight hours in advance of the meeting by newsletter, conspicuous posting or any other reasonable means as determined by the board of directors. An affidavit of notice by an officer of the corporation is prima facie evidence that notice was given as prescribed by this section. Notice to members of meetings of the board of directors is not required if emergency circumstances require action by the board before notice can be given. Any notice of a board meeting shall state the time and place of the meeting. The failure of any member to receive actual notice of a meeting of the board of directors does not affect the validity of any action taken at that meeting.
D. Notwithstanding any provision in the declaration, bylaws or other community documents, for meetings of the board of directors or of the members' association that are held after the termination of declarant control of the association, all of the following apply:
1. The agenda shall be available to all members attending.
2. A meeting of the board of directors may adjourn into a closed session on a vote of the board of directors and after the board announces the reason for the closed session at an open session of a meeting of the board. A closed session of the board of directors may be held without first meeting in an open session if notice is given as prescribed by this section. The board of directors shall disclose at an open meeting any decision to become a party to a lawsuit. This paragraph does not apply to an action filed pursuant to title 12, chapter 8, article 14.
3. An emergency meeting of the board of directors may be called to discuss business or take action that cannot be delayed until the next regularly scheduled board meeting. The minutes of the emergency meeting shall state the reason necessitating the emergency meeting. The minutes of the emergency meeting shall be read and approved at the next regularly scheduled meeting of the board of directors.
4. The board of directors may take action without a meeting as prescribed in section 10-3821. If the board takes action without a meeting, a statement shall be prepared stating that an action has been taken without a meeting, the reason for taking the action and the action taken. This statement shall be read into the minutes of the next regularly scheduled meeting of the board of directors. The procedure for taking action without a meeting shall be used only when emergency circumstances warrant a meeting and there is not sufficient time to provide notice for a meeting, or when a quorum of the board is impossible to obtain and necessary business must be undertaken. This procedure shall not be used to take the place of conducting business at a regularly scheduled board meeting.
5. Meetings of the members' association or the board of directors, other than closed sessions of the board of directors, may be recorded by means of a video camera or tape recorder or any other means of audio reproduction only if the participants are notified and there is no active interference with the conduct of the meeting.
6. Other than actions allowed by paragraph 4 of this subsection, a quorum of the board of directors shall not meet, conduct business, vote or make any decisions by means of telephone or any type of electronic communications, such as cellular telephone phone, electronic mail, chat rooms or other methods of internet communication.
7. A quorum of the board of directors may meet by means of a telephone conference if a speakerphone is available in the meeting room that allows board members and association members to hear all parties who are speaking during the meeting.
8. Any quorum of the board of directors that meets informally to discuss association business, including workshops, shall comply with the open meeting and notice provisions of this section without regard to whether the board votes or takes any action on any matter at that informal meeting.
E. It is the policy of this state as reflected in this section that all meetings of a planned community, whether meetings of the members' association or meetings of the board of directors of the association, be conducted openly and that notices and agendas be provided for those meetings that contain the information that is reasonably necessary to inform the members of the matters to be discussed or decided and to ensure that members have the ability to speak after discussion of agenda items, but before a vote of the board of directors is taken. Toward this end, any person or entity that is charged with the interpretation of these provisions shall take into account this declaration of policy and shall construe any provision of this section in favor of open meetings.
