By: Melissa S. Doolan, Esq.

The Arizona Legislature passed five bills, which Governor Hobbs then signed, that have a direct impact on the community association industry.

House Bill 2251, House Bill 2298, House Bill 2301, Senate Bill 2010, and House Bill 2607 will become law on October 30, 2023, which is 90 days after the adjournment of the legislature. Below is an overview of these four new laws.

House Bill 2251: Insurance Coverage

HB2251 amends A.R.S. §33-1253 to require condominium associations to insure units if set forth in the Condominium Documents. Unit owners have the right to report a loss under an association’s policy and must report the loss to the association. The association has ten business days to provide a written decision to the unit owner of whether the association will submit the claim to its insurance, and if not, the reason. The association must provide an annual notice setting forth the unit owner’s responsibility for the association’s insurance deductible and the amount of the deductible.

Senate Bill 1049: Betsy Ross Flag

SB 1049 amends A.R.S. §33-1261 and A.R.S. §33-1808 to add historic versions of the American Flag to list of flags that an association must allow members to display on their property.

House Bill 2301: Political Activity

HB 2301 amends A.R.S. §33-1261 and A.R.S. §33-1808 to prohibit an association from restricting door-to-door political activity on its property when the property is normally open to visitors. An association may limit the door-to-door activity from sunrise to sunset and require the individuals to wear prominent identification.

Associations that restrict vehicle or pedestrian access may require the individual to be accompanied by a unit owner, member, or resident of the community.

House Bill 2607: Board Members

SB 2607 amends A.R.S. §33-1243 and A.R.S. §33-1813. All Board directors are removed from the board if the board fails to call, notice, and hold a special meeting of the members within 30 days after receipt of a removal petition and follow the statutory requirements.

House Bill 2298: Public Roadways

HB 2298 amends A.R.S §33-1818. If a planned community regulates any public road, the community is required to hold a vote of the membership no later than June 30, 2025 on whether to continue to regulate the roadway. The majority of owners at the meeting where quorum is met must vote in favor of continuing to regulate the roads. If a majority of those present do not vote in favor of continuing to regulate the roads, then the community can no longer regulate the roads. Also, a community that does not hold a vote is no longer allowed to regulate the roads in the community.

The information provided herein is for reference purposes only, is general in nature, and is not intended as legal advice. For specific questions or legal issues regarding your association, please contact us at 480-219-3633.