REFERENCE TITLE: condominiums; planned communities; administrative hearings

 

 

 

State of Arizona

House of Representatives

Fifty-first Legislature

First Regular Session

2013

 

 

HB 2154

 

Introduced by

Representative Kavanagh

 

 

AN ACT

 

amending sections 41-2198.01 and 41-2198.02, Arizona Revised Statutes; relating to the department of fire, building and life safety.

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 



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

Section 1.  Section 41-2198.01, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2198.01.  Hearing; rights and procedures

A.  A person who is subject to title 33, chapter 11 or a party to a rental agreement entered into pursuant to title 33, chapter 11 may petition the department for a hearing concerning violations of the Arizona mobile home parks residential landlord and tenant act by filing a petition with the department and paying a nonrefundable filing fee in an amount to be established by the director.  All monies collected shall be deposited in the state general fund and are not refundable.

B.  For a dispute between an owner and a condominium association or planned community association that is regulated pursuant to title 33, chapter 9 or 16, the owner or association may petition the department for a hearing concerning violations of condominium documents or planned community documents or violations of the statutes that regulate condominiums or planned communities.  The petitioner shall file a petition with the department and pay a nonrefundable filing fee in an amount to be established by the director.  The filing fee shall be deposited in the condominium and planned community hearing office fund established by section 41-2198.05.  On dismissal of a petition by an owner in a condominium association or in a planned community at that owner's request and before a hearing is held, the filing fee shall be refunded to the owner.  The department does not have jurisdiction to hear:

1.  Any dispute among or between owners to which the association is not a party.

2.  Any dispute between an owner and any person, firm, partnership, corporation, association or other organization that is engaged in the business of designing, constructing or selling a condominium as defined in section 33-1202 or any property or improvements within a planned community as defined in section 33-1802, including any person, firm, partnership, corporation, association or other organization licensed pursuant to title 32, chapter 20, arising out of or related to the design, construction, condition or sale of the condominium or any property or improvements within a planned community.

C.  The petition shall be in writing on a form approved by the department, shall list the complaints and shall be signed by or on behalf of the persons filing and include their addresses, stating that a hearing is desired, and shall be filed with the department.

D.  On receipt of the petition and the filing fee the department shall mail by certified mail a copy of the petition along with notice to the named respondent that a response is required within twenty days of mailing of the petition showing cause, if any, why the petition should be dismissed.

E.  After receiving the response, the director or the director's designee shall promptly review the petition for hearing and, if justified, refer the petition to the office of administrative hearings.  The director may dismiss a petition for hearing if it appears to the director's satisfaction that the disputed issue or issues have been resolved by the parties.

F.  Failure of the respondent to answer is deemed an admission of the allegations made in the petition, and the director shall issue a default decision.

G.  Informal disposition may be made of any contested case.

H.  Either party or the party's authorized agent may inspect any file of the department that pertains to the hearing, if such authorization is filed in writing with the department.

I.  At a hearing conducted pursuant to this section, a corporation may be represented by a corporate officer, employee or contractor of the corporation who is not a member of the state bar if:

1.  The corporation has specifically authorized the officer, employee or contractor of the corporation to represent it.

2.  The representation is not the officer's, employee's or contractor of the corporation's primary duty to the corporation but is secondary or incidental to the officer's or employee's duties relating to the management or operation of the corporation.END_STATUTE

Sec. 2.  Section 41-2198.02, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2198.02.  Orders; penalties; disposition

A.  The administrative law judge may order any party to abide by the statute, condominium documents, community documents or contract provision at issue and may levy a civil penalty on the basis of each violation.  For purposes of actions brought under the Arizona mobile home parks residential landlord and tenant act, the civil penalty shall not exceed five hundred dollars.  All monies collected pursuant to this article shall be deposited in the state general fund to be used to offset the cost of administering the administrative law judge function, except that monies collected from disputes involving condominiums or planned communities as prescribed in section 41‑2198.01, subsection B shall be deposited in the condominium and planned community hearing office fund established by section 41‑2198.05.  If the petitioner prevails, the administrative law judge shall order the respondent to pay to the petitioner the filing fee required by section 41‑2198.01 and any attorney fees reasonably incurred by the petitioner.

B.  The order issued by the administrative law judge is binding on the parties unless a rehearing is granted pursuant to section 41‑2198.04 based on a petition setting forth the reasons for the request for rehearing, in which case the order issued at the conclusion of the rehearing is binding on the parties.  The order issued by the administrative law judge is enforceable through contempt of court proceedings and is subject to judicial review as prescribed by section 41‑1092.08.END_STATUTE