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ARIZONA STATE SENATE

Fifty-Sixth Legislature, First Regular Session

 

AMENDED

FACT SHEET FOR H.B. 2607

 

meetings; homeowners' associations

(NOW: board members; condominiums; planned communities)

Purpose

Deems the members of a condominium unit owners' association (COA) board or a planned community association (HOA) board that fails to call a special meeting to remove a board member after the outlined requirements are met to be removed from office.

Background

Upon receipt of a petition that calls for the removal of a member of a COA or HOA board, a COA or HOA board must call for a special meeting of the association and provide for written notice of the meeting. For a COA or HOA with 1,000 members or fewer, the petition must have the signatures of at least 25 percent of the eligible voters. For a COA or HOA with more than 1,000 members, the petition must have the signatures of at least 10 percent of the eligible voters. The special meeting must be called, noticed and held within 30 days of the receipt of the petition. For a meeting at which a member of the COA or HOA board is proposed to be removed from the board: 1) the unit owners who are eligible to vote at the time of the meeting may vote to remove any eligible member of the board by a majority vote; 2) the meeting must be called by the board as prescribed by statute and action may be taken only if a quorum is present; and 3) the unit owners may remove any member of the COA or HOA board with or without cause (A.R.S. §§ 33-1243 and 33-1813).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Stipulates that if the board of a COA or HOA fails to call a special meeting to remove a board member after the requirements are met, then the members of the board are deemed removed from office effective midnight of the 31st day.

2.   Deems the members of a COA or HOA board removed from office, effective midnight of the 31st day, if the board fails to call, notice and hold a special meeting after the requirements for calling a meeting to remove a board member are met.

3.   Makes technical and conforming changes.

4.   Becomes effective on the general effective date.

 

Amendments Adopted by Committee

· Adopted the strike-everything amendment.

Senate Action

GOV               3/29/23      DPA/SE    8-0-0

Prepared by Senate Research

April 5, 2023

AN/SB/slp