homeowners' associations; meetings; quorum

SB1722 - 572R - I Ver

REFERENCE TITLE:
homeowners' associations; meetings; quorum

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1722

Introduced by

Senator
Mesnard

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:

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 rules shall not preclude
such 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

if
the board
votes or takes any action on any matter at that
informal

meeting.

F. The provisions of this section
regarding open meetings and notices do not apply to casual discussion of
association issues in informal gatherings, even if a quorum of the board of
DIRECTORS PARTICIPATES, if the DIRECTORs are acting in their individual
capacity as members of the association and not in their capacity as directors.

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 33-1804, 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 rules shall
not preclude such 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

if
the board
votes or takes any action on any matter at that
informal

meeting.

F. The provisions of this section
regarding open meetings and notices do not apply to casual discussion of
association issues in informal gatherings, even if a quorum of the board of
DIRECTORS PARTICIPATES, if the DIRECTORs are acting in their individual
capacities as members of the association and not in their capacity as
directors.

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