SB1364 - 571R

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; meeting and ballot requirements; community-wide communications; challenges applicability; ballot tampering; violation; classification; definitions

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 or delegate. The association shall provide for votes to be cast in person and by absentee ballot at a duly noticed meeting of the unit owners pursuant to SECTION 33-1248. and, In addition, the association may provide for voting by some other form of delivery, including the use of e-mail and fax delivery pursuant to sections 10-3704 and 10-3708 for a ballot measure without a meeting or in place of absentee ballots. Absentee ballots may be transmitted and returned in paper form by HAND or by United States mail or electronically by fax or email.

D. Notwithstanding section 10-3708 or the any provisions of the condominium documents, any action taken at an annual, regular or special meeting of the members or on a ballot measure without a meeting shall comply with all of the following if absentee ballots or ballots provided by some other form of delivery are used:

1. THE condominium DOCUMENTS MAY ESTABLISH THE ELIGIBILITY OF ANY unit owner TO VOTE OR SIGN A PETITION BUT MAY NOT BE MORE RESTRICTIVE THAN the following:

(a) REQUIRING THE PERSON TO BE A unit owner OF RECORD OR THE DESIGNATED AUTHORIZED VOTER FOR THE PROPERTY. THE ASSOCIATION SHALL MAINTAIN A CURRENT LIST OF unit owners OF RECORD AND THE AUTHORIZED VOTERS FOR EACH PROPERTY IN THE CONDOMINIUM AS A RECORD OF THE ASSOCIATION.

(b) REQUIRING THE unit owner TO BE CURRENT IN THE PAYMENT OF ANY COMMON EXPENSE ASSESSMENTS.

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

2. 3. The ballot shall provide an opportunity to vote for or against each proposed action, including the recall of any INDIVIDUAL member of the board of directors.

4. The ballot to elect persons to positions on the board of directors shall identify the number and term of board positions to be filled, along with the names of all eligible unit owners wishing to be considered for those positions. The condominium documents may establish eligibility requirements for candidates for a position on the board of directors that require the unit owner to be independent of any direct or indirect influence or decision-making of the current board of directors, individual board members, the condominium manager or any board-appointed committee chairperson. The condominium documents may restrict the eligibility of a unit owner to run for office based on an unresolved cited violation of the condominium documents if that violation was enforced fairly and equally on all UNIT owners.

5. The quorum requirement for the election of board members shall be twenty percent of the total allocated votes or any lower value specified in the condominium documents. For all other ballot measures or meetings, the quorum requirement shall be as established in the condominium documents or as otherwise prescribed by this chapter.

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

4. 7. The ballot specifies measure or meeting notice shall specify the physical location within the condominium, mailing address, fax number, email address or any other prescribed means that is used to submit the completed ballot, along with 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. 8. The ballot association does not authorize another person to cast votes on behalf of the member or authorized voter. The association, its agent or any unit owner shall not provide prevoted ballots for unit owners to submit and may not allow in-person ballot SOLICITATION. The PRELIMINARY results of any election or ballot measure shall not be revealed to any unit owner, including members of the board of directors, before the results are finalized.

6. 9. The completed absentee ballot shall contain be accompanied by either a separate IDENTIFICATION form that lists the name, the date, address and either the actual or electronic signature of the person voting, except that if the condominium documents permit secret ballots, only or the envelope CONTAINING the completed absentee ballot shall contain list the name, the date, address and either the actual or electronic signature of the voter.

10. unless the condominium documents or this chapter requires the affirmative vote of a larger majority of all members voting on a ballot measure, a simple majority of all votes cast on the measure shall decide the ballot measure.

7. 11. All completed ballots, voter identification DOCUMENTS, written consents, signed envelopes, fax cover sheets, forwarding emails or, for ELECTRONICALLY delivered ballots, the metadata for those ballots in a report or spreadsheet format as applicable and requested, and any other related materials, including sign-in sheets if used, shall be retained in legible electronic or paper format and made available for unit owner inspection for at least one year after completion of the election. If the association invalidates any absentee ballot received, the association shall mark that ballot and its associated voter identification document as invalid and RETAIN those documents separately from the valid ballots.

12. FOLLOWING THE COMPLETION OF ANY ELECTION OR BALLOT MEASURE, THE ASSOCIATION SHALL POST OR DISTRIBUTE THE RESULTS OF THE BALLOT MEASURE OR ELECTION TO ALL unit owners. THE NAMES, TERM END DATES AND OFFICIAL CONTACT INFORMATION OF ALL BOARD MEMBERS SHALL BE EITHER POSTED OR MADE AVAILABLE TO ANY unit owner ON REQUEST.

D. E. 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.

F. Except for the meeting notice requirements of this chapter, if the board of directors, an individual board member or a condominium manager uses the association's resources or that of the condominium's managing agent, or the private contact information of the unit owners to provide a community-wide communication or posting in support of or opposition to any petition or ballot measure, the association shall provide to not more than two groups of ten or more unit owners in dissent of the position of the board an equal opportunity to communicate their arguments in support or opposition to the issue, if requested, in writing within three days after the original posting or communication. The association may include a disclaimer statement that the content of the rebuttal communication does not reflect the opinions of the board or association and that the association assumes no liability for the content. The association may refuse to publish a rebuttal that would violate federal law relating to discriminatory statements or a hostile housing environment. The association shall post or distribute the rebuttal within twenty-four hours after receipt.

G. The board of directors has the duty to ensure the integrity of the ballot process and that any election or ballot measure is conducted as prescribed by this section. As a part of this duty, the board of directors shall establish policies and reasonable oversight over the delivery, receipt, handling and counting of ballots as deemed necessary to ensure the integrity of the ballot process. If the validity of any election or ballot measure is challenged by any unit owner within thirty days after that election or ballot measure and the association's board of directors is presented with credible evidence of a substantive violation of this section, the association's board of directors shall invalidate the election or ballot measure and require that the election or ballot measure be repeated in compliance with this section. If the association's board of directors refuses to invalidate the election or ballot measure or if the challenge period has expired, a unit owner may pursue in a court of appropriate jurisdiction any remedy in law and equity against the board of directors or association for a substantive violation of this section and a breach of duty, as appropriate.

H. Any person who intentionally adds, alters or deletes one or more ballots or signatures that were submitted by the duly authorized and eligible voters and does so in an attempt to alter the outcome of the election or ballot measure or conspires to effect such an act is guilty of a class 6 felony and may be prosecuted by any county or state attorney in a court of appropriate jurisdiction.

E. i. 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. j. 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. k. Unless the declaration provides otherwise, votes allocated to a unit owned by the association shall not be cast.

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

I. m. For the purposes of this section: ,

1. "Delegate" means any individual prescribed in the condominium documents to cast votes on the unit owner's behalf without the specific authorization of the unit owner.

2. "Delivered" means the date that a meeting notice or ballot is delivered by hand or by electronic means or, if mailed, two days after it is postmarked by the United States postal service.

3. "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.

4. "Substantive violation" means any violation of this section that does any of the following:

(a) Improperly denies eligibility or the opportunity to vote to a number of members that is greater than the smallest margin of victory between any winning and losing candidate or ballot measure.

(b) Improperly denies an eligible candidate from being listed on the ballot pursuant to this section.

(c) Results in evidence that one or more ballots were added, altered or deleted by anyone other than the authorized voter.

(d) Improperly fails to comply with the requirements of any of the following:

(i) Subsection c of this section.

(ii) Subsection d, paragraphs 2, 3 or 8 of this section.

(iii) providing access to voting records pursuant to subsection d of this section.

(iv) Providing the rebuttal communication opportunity prescribed by subsection F of this section. END_STATUTE

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

START_STATUTE33-1812. Proxies; absentee ballots; meeting and ballot requirements; community-wide communications; challenges; ballot tampering; violation; classification; definitions;

A. Notwithstanding any provision in the community documents, after termination of the period of declarant control, votes allocated to a unit property may not be cast pursuant to a proxy or a delegate. The association shall provide for votes to be cast in person and by absentee ballot at a duly noticed MEETING of the members pursuant to section 33-1804. and, In addition, the association may provide for voting by some other form of delivery, including the use of e-mail and fax delivery pursuant to sections 10-3704 or 10-3708 for any ballot measure without a meeting or in place of absentee ballots. Absentee ballots may be transmitted and returned in paper form by hand, or by United States mail or electronically by fax or email.

B. Notwithstanding section 10-3708 or the any provisions of the community documents, any action taken at an annual, regular or special meeting of the members or on a ballot measure without a meeting shall comply with all of the following if absentee ballots or ballots provided by some other form of delivery are used:

1. THE COMMUNITY DOCUMENTS MAY ESTABLISH THE ELIGIBILITY OF ANY MEMBER TO VOTE OR SIGN A PETITION BUT MAY NOT BE MORE RESTRICTIVE THAN the following:

(a) REQUIRING THE PERSON TO BE A MEMBER OF RECORD OR THE DESIGNATED AUTHORIZED VOTER FOR THE PROPERTY. THE ASSOCIATION SHALL MAINTAIN A CURRENT LIST OF MEMBERS OF RECORD AND THE AUTHORIZED VOTERS FOR EACH PROPERTY IN THE PLANNED COMMUNITY AS A RECORD OF THE ASSOCIATION.

(b) REQUIRING THE MEMBER TO BE CURRENT IN THE PAYMENT OF ANY COMMON EXPENSE ASSESSMENTS.

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

2. 3. The ballot shall provide an opportunity to vote for or against each proposed action, including the recall of any INDIVIDUAL member of the board of directors.

4. The ballot to elect persons to positions on the board of directors shall identify the number and term of board positions to be filled, along with the names of all eligible members wishing to be considered for those positions. The community documents may establish eligibility requirements for candidates for a position on the board of directors that require the member to be independent of any direct or indirect influence or decision-making of the current board of directors, individual board members, the community manager or any board-appointed committee chairperson. The community documents may restrict the eligibility of a member to run for office based on an unresolved cited violation of the community documents if that violation was enforced fairly and equally on all members.

5. The quorum requirement for the election of board members shall be twenty percent of the total allocated votes or any lower value specified in the community documents. For all other ballot measures or meetings, the quorum requirement shall be as established in the community documents or as otherwise prescribed by this chapter.

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

4. 7. The ballot specifies measure or meeting notice shall SPECIFY the physical location within the planned community, mailing address, fax number, email address or any other PRESCRIBED MEANS that is used to submit the completed ballot, along with 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. 8. The ballot association does not authorize another person to cast votes on behalf of the member or authorized voter. The association, its agent or any member shall not provide prevoted ballots for members to submit and may not allow in-person ballot SOLICITATION. The PRELIMINARY results of any election or ballot measure shall not be revealed to any member, including members of the board of directors, before the results are finalized.

6. 9. The completed absentee ballot shall contain be accompanied by either a separate IDENTIFICATION form that lists the name, date, address and either the electronic or actual signature of the person voting, except that if the community documents permit secret ballots, only or the envelope containing the completed absentee ballot shall contain list the name, date, address and signature of the voter.

10. unless the community documents or this chapter requires the affirmative vote of a larger majority of all members voting on a ballot measure, a simple majority of all votes cast on the measure shall decide the ballot measure.

7. 11. All COMPLETED ballots, voter identification DOCUMENTS, written consents, signed envelopes, fax cover sheets, forwarding emails or, for electronically delivered ballots, THE metadata for those ballots in a report or spreadsheet format as applicable and requested, and any other related materials, including sign-in sheets if used, shall be retained in LEGIBLE electronic or paper format and made available for member inspection for at least one year after completion of the election. If the association invalidates any absentee ballot received, the association shall mark that ballot and its associated voter identification document as invalid and RETAIN those documents separately from the valid ballots.

12. FOLLOWING THE COMPLETION OF ANY ELECTION OR BALLOT MEASURE, THE ASSOCIATION SHALL POST OR DISTRIBUTE THE RESULTS OF THE BALLOT MEASURE OR ELECTION TO ALL MEMBERS. THE NAMES, TERM END DATES AND OFFICIAL CONTACT INFORMATION OF ALL BOARD MEMBERS SHALL BE EITHER POSTED OR MADE AVAILABLE TO ANY MEMBER ON REQUEST.

B. C. 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.

D. Except for the meeting notice requirements of this chapter, if the board of directors, an individual board member or a community manager uses the association's resources or that of the community's managing agent, or the private contact information of the members to provide a community-wide communication or posting in support or opposition to any petition or ballot measure, the association shall provide to not more than two groups of ten or more members in dissent of the position of the board an equal opportunity to communicate their arguments in support of or opposition to the issue, if requested, in writing within three days after the original posting or communication. The association may include a disclaimer statement that the content of the rebuttal communication does not reflect the opinions of the board or association and that the association assumes no liability for the content. The association may refuse to publish a rebuttal that would violate federal law relating to discriminatory statements or a hostile housing environment. The association shall post or distribute the rebuttal within twenty-four hours after receipt.

E. The board of directors has the duty to ensure the integrity of the ballot process and that any election or ballot measure is conducted as prescribed by this section. As a part of this duty, the board of directors shall establish policies and reasonable oversight over the delivery, receipt, handling and counting of ballots as deemed necessary to ensure the integrity of the ballot process. If the validity of any election or ballot measure is challenged by any member within thirty days after that election or ballot measure and the association's board of directors is presented with credible evidence of a substantive violation of this section, the association's board of directors shall invalidate the election or ballot measure and require that the election or ballot measure be repeated in compliance with this section. If the association's board of directors refuses to invalidate the election or ballot measure or if the challenge period has expired, a member may pursue in a court of appropriate jurisdiction any remedy in law and equity against the board of directors or association for a substantive violation of this section and a breach of duty, as appropriate.

F. Any person who intentionally adds, alters or deletes one or more ballots or signatures that were submitted by the duly authorized and eligible voters and does so in an attempt to alter the outcome of the election or ballot measure or conspires to effect such an act is guilty of a class 6 felony and may be prosecuted by any county or state attorney in a court of appropriate jurisdiction.

C. g. 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.

D. H. For the purposes of this section: ,

1. "Delegate" means any individual prescribed in the community documents to cast votes on the member's behalf without the specific authorization of the member.

2. "Delivered" means the date that a meeting notice or ballot is delivered by hand or by electronic means or, if mailed, two days after it is postmarked by the United States postal service.

3. "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.

4. "Substantive violation" means any violation of this section that does any of the following:

(a) Improperly denies eligibility or the opportunity to vote to a number of members that is greater than the smallest margin of victory between any winning and losing candidate or ballot measure.

(b) Improperly denies an eligible candidate from being listed on the ballot pursuant to Subsection B of this section.

(c) Results in evidence that one or more ballots were added, altered or deleted by anyone other than the authorized voter.

(d) Improperly fails to comply with the requirements of any of the following:

(i) Subsection A of this section.

(ii) Subsection B, paragraphs 2, 3 or 8 of this section.

(iii) providing access to voting records pursuant to subsection B of this section.

(iv) providing the rebuttal communication opportunity prescribed by subsection d of this section. END_STATUTE