HB2135 - 511R

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

Section 1. Section 33-1250, Arizona Revised Statutes, is amended to read:

START_STATUTE33-1250. Voting; proxies; absentee ballots; applicability; declarant directors; 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 may shall provide for voting by some other form of use of electronic mail and by use of facsimile 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 are used:

1. The absentee ballot shall set forth each proposed action.

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

3. The absentee 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 absentee 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 absentee ballot to the member.

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

D. Votes cast by absentee ballot, or other form of by electronic mail and by FACSIMILE delivery are valid for the purpose of establishing a quorum.

E. Notwithstanding subsection C of this section, an association for a timeshare plan as defined in section 32‑2197 may permit 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. Notwithstanding any provision in the condominium documents, after the period of declarant control, the declarant, including any of its affiliates, officers and employees, may not hold more than one seat on the board of directors of the association. On winning election to one seat on the board of directors, the declarant and its affiliates are ineligible to be candidates for or hold additional seats, and if elected, the declarant‑affiliated candidate shall not take office and the candidate with the next highest number of votes who is not affiliated with the declarant shall be declared the winner of the election for that seat.

I. J. 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. 2. Section 33-1812, Arizona Revised Statutes, is amended to read:

START_STATUTE33-1812. Voting; proxies; absentee ballots; declarant directors; definition

A. Notwithstanding any provision in the community 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 may shall provide for voting by some other form of use of electronic mail and by use of facsimile 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 are used:

1. The absentee ballot shall set forth each proposed action.

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

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

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

B. Votes cast by absentee ballot, or other form of by electronic mail and by facsimile delivery are valid for the purpose of establishing a quorum.

C. Notwithstanding subsection A of this section, an association for a timeshare plan as defined in section 32‑2197 may permit votes by a proxy that is duly executed by a unit owner.

D. Notwithstanding any provision in the community documents, after the period of declarant control, the declarant, including any of its affiliates, officers and employees, may not hold more than one seat on the board of directors of the association. On winning election to one seat on the board of directors, the declarant and its affiliates are ineligible to be candidates for or hold additional seats, and if elected, the declarant‑affiliated candidate shall not take office and the candidate with the next highest number of votes who is not affiliated with the declarant shall be declared the winner of the election for that seat.

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