homeowners' association; virtual meetings; proxies

HB2613 - 572R - I Ver

REFERENCE TITLE:
homeowners' association; virtual meetings; proxies

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2613

Introduced by

Representative
Blackman

AN
ACT

amending sections 33-1248, 33-1250,
33-1804 and 33-1812, Arizona Revised Statutes; relating to property.

(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:

START_STATUTE
33-1248.

Open meetings; exceptions; notice; agenda; policy statement

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 allowed 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 allow 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 that item 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. Persons attending may audiotape or videotape
those portions of the meetings of the board of directors and meetings of the
members that are open.� The board of directors of the association shall not
require advance notice of the audiotaping or videotaping and may adopt
reasonable rules governing the audiotaping or videotaping of open portions of
the meetings of the board and the membership, but
such

the
rules shall not preclude
such

the
audiotaping or videotaping by those attending, unless the
board audiotapes or videotapes the meeting and makes the unedited audiotapes or
videotapes available to members on request without restrictions on their use as
evidence in any dispute resolution process. If a board records a
meeting that is open to the members, the board shall keep a copy of the
recording for at least six months and make the unedited recording available to
any member on request in compliance with section 33-1258, subsection
A. 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 percent, or any
lower percentage specified in the bylaws, of the votes in the association.� Not
fewer than ten or 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 date, time and place of the
meeting. The notice of any annual, regular or 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 secretary shall also provide
an agenda for any meeting of the unit owners' association by hand delivery,
mail, website posting, email or other electronic means or posting at a
community center or other similar location. The failure of any unit
owner to receive actual notice of a meeting of the unit owners or the meeting
agenda does not affect the validity of any action taken at that meeting.

C. Before entering into any closed portion of a
meeting of the board of directors, or on notice of a meeting under subsection D
of this section that will be closed, the board shall identify the paragraph
under subsection A of this section that authorizes the board to close the
meeting.

D. 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 and meeting agendas
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 date,
time and place of the meeting. The failure of any unit owner to
receive actual notice of a meeting of the board of directors or a meeting
agenda does not affect the validity of any action taken at that meeting.

E. 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,
all of the following apply:

1. The agenda shall be available in advance for all
unit owners attending.

2. An emergency meeting of the board of directors
may be called to discuss business or take action that cannot be delayed for the
forty-eight hours required for notice. At any emergency
meeting called by the board of directors, the board of directors may act only
on emergency matters.� 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.

3. 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.

4. 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.

F. Notwithstanding any provision in
the declaration, bylaws or other association documents to the contrary and
subject to the requirements of this section, meetings of the unit owners'
association and meetings of the board of directors may be conducted by an
online or virtual meeting platform.

F.

G.
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 in advance 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 or members is taken.� Toward this end, any person or entity
that is charged with the interpretation of these provisions, including members
of the board of directors and any community manager, shall take into account
this declaration of policy and shall construe any provision of this section in
favor of open meetings.

G.

H.
This
section does not apply to timeshare plans or associations that are subject to
chapter 20 of this title.
END_STATUTE

Sec. 2. Section 33-1250, Arizona Revised
Statutes, is amended to read:

START_STATUTE
33-1250.

Voting; proxies; absentee ballots; applicability; definition

A. If only one of the multiple owners of a unit is
present at a meeting of the association, the owner is entitled to cast all the
votes allocated to that unit.� If more than one of the multiple owners are
present, the votes allocated to that unit may be cast only in accordance with
the agreement of a majority in interest of the multiple owners unless the
declaration expressly provides otherwise.� There is majority agreement if any
one of the multiple owners casts the votes allocated to that unit without protest
being made promptly to the person presiding over the meeting by any of the
other owners of the unit.

B. During the period of declarant control, votes
allocated to a unit may be cast pursuant to a proxy duly executed by a unit
owner.� If a unit is owned by more than one person, each owner of the unit may
vote or register protest to the casting of votes by the other owners of the
unit through a duly executed proxy.� A unit owner may not revoke a proxy given
pursuant to this section except by actual notice of revocation to the person
presiding over a meeting of the association.� A proxy is void if it is not dated
or purports to be revocable without notice. The proxy is revoked on
presentation of a later dated proxy executed by the same unit owner.� A proxy
terminates one year after its date, unless it specifies a shorter term or
unless it states that it is coupled with an interest and is irrevocable.

C. Notwithstanding any provision in
the condominium documents, after termination of the period of declarant
control, votes allocated to a unit may not be cast pursuant to a proxy.� The
association shall provide for votes to be cast in person and by absentee ballot
and, in addition, the association may provide for voting by some other form of
delivery, including the use of e-mail and fax delivery.� Notwithstanding
section 10-3708 or the provisions of the condominium documents, any
action taken at an annual, regular or special meeting of the members shall
comply with all of the following if absentee ballots or ballots provided by
some other form of delivery are used:

1. The ballot shall set forth each
proposed action.

2. The ballot shall provide an
opportunity to vote for or against each proposed action.

3. The ballot is valid for only one
specified election or meeting of the members and expires automatically after
the completion of the election or meeting.

4. The ballot specifies the time and
date by which the ballot must be delivered to the board of directors in order
to be counted, which shall be at least seven days after the date that the board
delivers the unvoted ballot to the member.

5. The ballot does not authorize
another person to cast votes on behalf of the member.

6. The completed ballot shall contain
the name, the address and either the actual or electronic signature of the
person voting, except that if the condominium documents permit secret ballots,
only the envelope shall contain the name, the address and either the actual or
electronic signature of the voter.

7. Ballots, envelopes and related
materials, including sign-in sheets if used, shall be retained in electronic or
paper format and made available for unit owner inspection for at least one year
after completion of the election.

D. Votes cast by absentee ballot or
other form of delivery, including the use of e-mail and fax delivery, are valid
for the purpose of establishing a quorum.

C. Notwithstanding any provision in
the condominium documents, after the termination of the period of declarant
control, votes allocated to a unit may not be cast pursuant to a proxy.� The
association shall provide for votes to be cast in compliance with all of the
following:

1. Votes shall be cast in person and
by absentee ballot if voting will occur at an in-person meeting of the unit
owners, or by written ballot if voting will occur without a meeting of the unit
owners or in connection with an online or virtual meeting of the unit owners.

2. The form of the absentee ballots
or written ballots shall comply with all of the following:

(
a
) The ballot
shall set forth each proposed action.

(
b
) The ballot
shall provide an opportunity to vote for or against each proposed action EXCEPT
IN THE CASE OF THE ELECTION OF DIRECTORS.

(
c
) THE BALLOT
SHALL STATE THE REQUIRED QUORUM FOR EACH PROPOSED ACTION.

(
d
) THE BALLOT
SHALL STATE THE PERCENTAGE OF APPROVAL NECESSARY FOR EACH PROPOSED ACTION OTHER
THAN THE ELECTION OF DIRECTORS.

(
e
) The ballot
SHALL STATE the time and date by which the ballot must be delivered to the
ASSOCIATION in order to be counted, which shall be at least seven days after
the date that the unvoted ballot IS DELIVERED to the unit owner.

(
f
) The ballot
may not authorize another person to cast votes on behalf of the UNIT OWNER.

(
g
) The
completed ballot shall contain the name, the address and either the actual or
electronic signature of the person voting, except that if the condominium
documents allow secret ballots, the name, the address and either the actual or
electronic signature of the voter shall appear on the envelope or as part of
the electronic means of submission.

3. The association shall deliver an
absentee ballot or written ballot to every unit owner who is eligible to vote
not later than ten days before the date that the completed ballot must be
delivered to the association.� Delivery of an absentee ballot or written ballot
to the unit owner may be accomplished in person or by mail or some form of
electronic delivery as determined by the board.

4. The method of delivery of absentee
ballots or written ballots from the unit owner to the association may include
mail or in-person delivery to a person or location designated by the board or
some form of electronic delivery, including the use of email, fax or an online
voting system that complies with section 10-3708.

5. Absentee ballots or written
ballots that are timely delivered to the association shall count toward the
required quorum for the meeting or election, as applicable.

6. The absentee ballot or written
ballot is valid for only one specified election or meeting of the unit owners,
as applicable, and expires automatically after the completion of the election
or meeting.

7. Ballots, envelopes and related
materials, including sign-in sheets if used, shall be retained in electronic or
paper format and made available for unit owner inspection for at least one year
after completion of the election or meeting.

8. This section does not prohibit the
use of written consent in accordance with section 10-3704.

D. Notwithstanding the condominium
documents, the quorum requirement for the annual meeting is one-tenth of the
total number of votes entitled to be cast unless the condominium documents
specify a lesser amount.

E. Notwithstanding subsection C of this section, an
association for a timeshare plan as defined in section 32-2197 may
permit

allow
votes by a proxy that is duly
executed by a unit owner.

F. If the declaration requires that votes on
specified matters affecting the condominium be cast by lessees rather than unit
owners of leased units all of the following apply:

1.
The provisions of

Subsections A and B of this section apply to lessees as if they were unit
owners.

2. Unit owners who have leased their units to other
persons shall not cast votes on those specified matters.

3. Lessees are entitled to notice of meetings,
access to records and other rights respecting those matters as if they were
unit owners.� Unit owners shall also be given notice, in the manner prescribed
in section 33-1248, of all meetings at which lessees may be entitled to
vote.

G. Unless the declaration provides otherwise, votes
allocated to a unit owned by the association shall not be cast.

H. This section does not apply to timeshare plans or
associations that are subject to chapter 20 of this title.

I. For the purposes of this section, "period of
declarant control" means the time during which the declarant or persons
designated by the declarant may elect or appoint the members of the board of
directors pursuant to the condominium documents or by virtue of superior voting
power.
END_STATUTE

Sec. 3. Section 33-1804, Arizona Revised
Statutes, is amended to read:

START_STATUTE
33-1804.

Open meetings; exceptions; notice; agenda; policy statement

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 allowed 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 allow 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 that item 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. Persons attending may audiotape or videotape
those portions of the meetings of the board of directors and meetings of the
members that are open. The board of directors of the association
shall not require advance notice of the audiotaping or videotaping and may
adopt reasonable rules governing the audiotaping and videotaping of open
portions of the meetings of the board and the membership, but
such

the
rules shall not preclude
such

the
audiotaping or videotaping by those attending, unless the
board audiotapes or videotapes the meeting and makes the unedited audiotapes or
videotapes available to members on request without restrictions on their use as
evidence in any dispute resolution process. If a board records a
meeting that is open to the members, the board shall keep a copy of the
recording for at least six months and make the unedited recording available to
any member on request in compliance with section 33-1805, subsection
A. 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 percent, or any lower percentage specified in
the bylaws, of the votes in the association.� Not fewer than ten or 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 date, time and place of the meeting. A notice of any annual,
regular or 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
secretary shall also provide an agenda for any meeting of the members'
association by hand delivery, mail, website posting, email or other electronic
means or posting at a community center or other similar
location. The failure of any member to receive actual notice of a
meeting of the members or the meeting agenda does not affect the validity of
any action taken at that meeting.

C. Before entering into any closed portion of a
meeting of the board of directors, or on notice of a meeting under subsection D
of this section that will be closed, the board shall identify the paragraph
under subsection A of this section that authorizes the board to close the
meeting.

D. 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 and meeting agendas
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 date, time and
place of the meeting. The failure of any member to receive actual
notice of a meeting of the board of directors or a meeting agenda does not
affect the validity of any action taken at that meeting.

E. 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,
all of the following apply:

1. The agenda shall be available in advance for all
members attending.

2. An emergency meeting of the board of directors
may be called to discuss business or take action that cannot be delayed for the
forty-eight hours required for notice. At any emergency
meeting called by the board of directors, the board of directors may act only
on emergency matters. 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.

3. 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.

4. 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.

F. Notwithstanding
any provision in the declaration, bylaws or other association documents to the
contrary and subject to the requirements of this section, meetings of the
members' association and meetings of the board of directors may be conducted by
an online or virtual meeting platform.

F.

G.
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 in advance 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
or members is taken. Toward this end, any person or entity that is charged with
the interpretation of these provisions, including members of the board of
directors and any community manager, shall take into account this declaration
of policy and shall construe any provision of this section in favor of open
meetings.
END_STATUTE

Sec. 4. Section 33-1812, Arizona Revised
Statutes, is amended to read:

START_STATUTE
33-1812.

Proxies; absentee ballots; definition

A. Notwithstanding any provision in the community
documents, after termination of the period of declarant control, votes
allocated to a
unit
lot
may not be
cast pursuant to a proxy.� The association shall provide for votes to be cast
in compliance with all of the following:

1.

Votes shall
be cast
in person and by absentee ballot
and, in addition,
the association may provide for voting by some other form of delivery,
including the use of e-mail and fax delivery.� Notwithstanding section 10-3708
or the provisions of the community documents, any action taken at an annual,
regular or special meeting of the members shall comply with all of the
following if absentee ballots or ballots provided by some other form of
delivery are used:
if voting will occur at an in-person
meeting of the members or by written ballot if voting will occur without a
meeting of the members or in connection with an online or virtual meeting of
the members.

2. The form of the absentee ballots
or written ballots shall comply with all of the following:

1.

(
a
)
The ballot shall set forth each proposed action.

2.

(
b
)
The ballot shall provide an opportunity to vote
for or against each proposed action
, except in the case of an
election of directors
.

(
c
) The ballot
shall state the required quorum for each proposed action.

(
d
) The ballot
shall state the percentage of approval necessary for each proposed action other
than an election of directors.

3.

(
e
)
The
absentee or written
ballot
is valid for only one specified election or meeting of the members
, as applicable,
and expires automatically after the completion
of the election or meeting.

4.

(
f
)
The ballot
specifies

shall state
the time and date by which the ballot must be
delivered to the board of directors in order to be counted, which shall be at
least seven days after the date that
the board delivers

the unvoted ballot
is delivered
to the member.

5.

(
g
)
The ballot
does

may
not authorize another person to cast votes on behalf of the
member.

6.

(
h
)
The completed ballot shall contain the name,
address and
either the actual or electronic
signature of
the person voting, except that if the community documents
permit
allow
secret ballots,
only the envelope shall
contain
the name, address and
either the actual or
electronic
signature of the voter
shall appear on the
envelope or as part of the electronic means of submission
.

3. The association shall deliver an
absentee ballot or written ballot to every member who is eligible to vote not
later than ten days before the date that the completed ballot must be delivered
to the association.� Delivery of an absentee ballot or written ballot to the
member may be accomplished in person or by mail or some form of electronic
delivery as determined by the board.

4. The method of delivery of absentee
ballots or written ballots from the member to the association may include mail
or in-person delivery to a person or location designated by the board or some
form of electronic delivery, including the use of email, fax or an online
voting system that complies with section 10-3708.

5. Absentee ballots or written
ballots that are timely delivered to the association shall count toward the
required quorum for the meeting or election, as applicable.

7.

6.
Ballots,
envelopes and related materials, including sign-in sheets if used, shall be
retained in electronic or paper format and made available for member inspection
for at least one year after completion of the election
or
meeting
.

B. Votes cast by absentee ballot or
other form of delivery, including the use of e-mail and fax delivery, are
valid for the purpose of establishing a quorum.

B. Notwithstanding the community
documents, the quorum requirement for the annual meeting is one-tenth of the
total number of votes entitled to be cast unless the community documents
specify a lesser amount.

C. This section does not prohibit the
use of written consent in accordance with section 10-3704.

C.

D.
Notwithstanding subsection A of this section, an
association for a timeshare plan as defined in section 32-2197 may
permit

allow
votes by a proxy that is duly
executed by a
unit owner
member
.

D.

E.
For the purposes of this section, "period of
declarant control" means the time during which the declarant or persons
designated by the declarant may elect or appoint the members of the board of
directors pursuant to the community documents or by virtue of superior voting
power.
END_STATUTE