Senate Engrossed

 

 

 

State of Arizona

Senate

Fifty-second Legislature

First Regular Session

2015

 

 

SENATE BILL 1091

 

 

 

AN ACT

 

amending section 33-1813, Arizona Revised Statutes; relating to planned communities.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 33-1813, Arizona Revised Statutes, is amended to read:

START_STATUTE33-1813.  Removal of board member; special meeting

A.  Notwithstanding any provision of the declaration or bylaws to the contrary:

1.  The members of the association who are eligible to vote at the time of the meeting may remove any member of the board of directors, other than a member appointed by the declarant, by a majority vote of members entitled to vote and those voting on the matter at a meeting of the members.

2.  The meeting of the members shall be called pursuant to this section at which and action may be taken only if a quorum is present.

3.  The members of the association may remove any member of the board of directors with or without cause, other than a member appointed by the declarant.

4.  For purposes of calling for removal of a member of the board of directors, other than a member appointed by the declarant, the following apply:

1.  (a)  In an association with one thousand or fewer members, on receipt of a petition that calls for removal of a member of the board of directors and that is signed by the number of persons who are entitled to cast eligible to vote in the association at the time the person signs the petition equal to at least twenty-five per cent percent of the votes in the association or by the number of persons who are eligible to vote in the association at the time the person signs the petition equal to at least one hundred votes in the association, whichever is less, the board shall call and provide written notice of a special meeting of the association as prescribed by section 33‑1804, subsection B.

2.  (b)  Notwithstanding section 33‑1804, subsection B, in an association with more than one thousand members, on receipt of a petition that calls for removal of a member of the board of directors and that is signed by the number of persons who are entitled to cast eligible to vote in the association at the time the person signs the petition equal to at least ten per cent percent of the votes in the association or by the number of persons who are eligible to vote in the association at the time the person signs the petition equal to at least one thousand votes in the association, whichever is less, the board shall call and provide written notice of a special meeting of the association.  The board shall provide written notice of a special meeting as prescribed by section 33‑1804, subsection B.

3.  (c)  The special meeting shall be called, noticed and held within thirty days after receipt of the petition.

4.  (d)  For purposes of a special meeting called pursuant to this subsection, a quorum is present if the number of owners who are eligible to vote in the association at the time the person attends the meeting equal to whom at least twenty per cent percent of the votes of the association or the number of persons who are eligible to vote in the association at the time the person attends the meeting equal to at least one thousand votes, whichever is less, are allocated is present at the meeting in person or as otherwise permitted by law.

5.  (e)  If a civil action is filed regarding the removal of a board member, the prevailing party in the civil action shall be awarded its reasonable attorney fees and costs.

6.  (f)  The board of directors shall retain all documents and other records relating to the proposed removal of the member of the board of directors for at least one year after the date of the special meeting and shall permit members to inspect those documents and records pursuant to section 33‑1805.

7.  (g)  A petition that calls for the removal of the same member of the board of directors shall not be submitted more than once during each term of office for that member.

B.  For an association in which board members are elected from separately designated voting districts, a member of the board of directors, other than a member appointed by the declarant, may be removed only by a vote of the members from that voting district, and only the members from that voting district are eligible to vote on the matter or be counted for purposes of determining a quorum. END_STATUTE