SB 1001 — homeowners' associations; payment coupon books

SB1001 - 542R - S-GovernmentS -Ver Strike  Everything-Proposed  Senate Engrossed   Fifty-fourth  Legislature                                                Government  State of Arizona Senate Fifty-fourth Legislature Second Regular Session                                                 Session S.B.    SENATE BILL 1001       AN ACT   amending sections 33-1256 and 33-1807, Arizona Revised Statutes;

 relating PROPOSEDto SENATEcondominiums AMENDMENTSand TOplanned S.B.communities.

1001  (Reference  to(TEXT printedOF bill)BILL BEGINS ON NEXT PAGE)   StrikeBe everythingit afterenacted by the enactingLegislature clauseof andthe insert:State of Arizona:

"Section 1.  SectionSection 1.  Section 33-1256, Arizona Revised Statutes, is amended to read:

Your account is delinquent.  If you do not bring your account current or make arrangements that are approved by the association to bring your account current within thirty days after the date of this notice, your account will MAY be turned over for further collection proceedings.  Such collection proceedings could include bringing a foreclosure action against your property.

The notice shall be in boldfaced type or all capital letters and shall include the contact information for the person that the unit owner may contact to discuss payment.  Ifpayment.  The the unit owner's address of record is within the United States, The notice shall be sent by certified mail,first returnclass receipt requested,.  If the unit owner's address of record is outside of the United States, the notice may be sent by regular mail.

The, noticereturn receipt requested, and The notice may be included within other correspondence sent to the unit owner regarding the unit owner's delinquent account.

L.  Beginning January 1, 2020, except for condominiums that have fewer than fifty units and that do not contract with a third party to perform management services on behalf of the association, the association shall provide a statement of account in lieu of a periodic payment book to the unit owner with the same frequency that assessments are provided for in the declaration.  The statement of account shall include the current account balance due and the immediately preceding ledger history.  If the association offers the statement of account by electronic means, a unit owner may opt to receive the statement electronically.  Withoutbeginning regardJanuary to1, the2021 billingand methodnotwithstanding other statements, coupons, notices or scheduleother adoptedcommunications bythat themay association,be ifsent to a unit owner'sowner, commonAN expenseASSOCIATION assessmentSHALL accountPROVIDE forA anySTATEMENT billingOF periodACCOUNT hasTO aEACH balanceUNIT dueOWNER thatAT isLEAST greatertwice thana year, unless the regularassessment periodicwas commonpaid expenseannually assessment,before theJANUARY association1, shall2020, notifyin thewhich unitcase owneronly an annual statement of account is required to be sent.  At the fullBEGINNING amountof dueeach association fiscal year and at leastthe tenmidpoint businessof dayseach beforeassociation's fiscal year, the nextsemiannual commonSTATEMENT expenseOF assessmentACCOUNT dueSHALL date. INCLUDE TheTHE associationCURRENT ACCOUNT BALANCE DUE FOR ASSESSMENTS, LATE FEES, FINES and OTHER COSTS AND FEES.  IF A UNIT OWNER HAS A DELINQUENT ACCOUNT FOR UNPAID ASSESSMENTS, LATE FEES, FINES OR OTHER COSTS AND FEES, THE ASSOCIATION SHALL PROVIDE A STATEMENT OF DELINQUENT ACCOUNT TO THE UNIT OWNER AT LEAST MONTHLY.  AN ASSOCIATION shall provideSTOP thePROVIDING noticeTHE ofSTATEMENT fullOF amountDELINQUENT due,ACCOUNT toONCE theTHE mailingUNIT addressOWNER or,HAS atPAID theTHE optionFULL ofBALANCE theOF unitALL owner,ASSESSMENTS, toLATE theFEES, e-mailFINES addressOR ofOTHER recordCOSTS forAND FEES or during the pendency of a bankruptcy after an association RECEIVES notice that a unit owner andhas filed a petition in bankruptcy.  THE STATEMENT OF DELINQUENT ACCOUNT shall include the name and telephone number of a person whoor entity that is authorized to provide further information about the amount due and to receive information about disputed amounts.

If IF THE ASSOCIATION OFFERS THE semiANNUAL STATEMENT OF ACCOUNT OR the STATEMENT OF DELINQUENT ACCOUNT BY ELECTRONIC MEANS, and the unit owner keeps a CURRENT email address on record with the association, A UNIT OWNER MAY OPT TO RECEIVE THE STATEMENT ELECTRONICALLY.  The association doesmay stop providing any further statements of account or statements of delinquent account to a unit owner if collection activity begins by an attorney, or a collection agency that is not routinelyacting provideas currentthe association's managing agent, regarding that unit owner's unpaid account.  After collection activity begins, a unit owner may request statements of delinquent account balanceby informationwritten request to allthe attorney or collection agency.  Any request by a unit ownersowner for eacha billingstatement period,of thedelinquent associationaccount after collection activity begins by an attorney or itsa collection agency that is not acting as the association's managing agent maymust addbe fulfilled by the directattorney costor the collection agency responsible for providingthe thiscollection.  noticeThe statement of delinquent account provided by the attorney or collection agency responsible for the collection shall include all amounts claimed to abe unitowing owner'sto commonresolve expensethe assessmentdelinquency account.through the date set forth in the statement, including attorney fees and costs, regardless of whether such amounts have been reduced to judgment.

The association may stop providing any further statements of account notices of full amount due to a unit owner if collection activity begins by an attorney, or a collection agency that is not acting as the association's managing agent, regarding that unit owner's unpaid account.  After collection activity begins, a unit owner may request statements of account notices of full amount due by written request to the attorney or collection agency.  Any request by a unit owner for a statement of account notice of full amount due after collection activity begins by an attorney or a collection agency that is not acting as the association's managing agent must be fulfilled by the attorney or the collection agency responsible for the collection.  The statement of account notice of full amount due provided by the attorney or collection agency responsible for the collection shall include all amounts claimed to be owing to resolve the delinquency through the date set forth in the statement notice, including attorney fees and costs, regardless of whether such amounts have been reduced to judgment.

Your account is delinquent.  If you do not bring your account current or make arrangements that are approved by the association to bring your account current within thirty days after the date of this notice, your account will MAY be turned over for further collection proceedings.  Such collection proceedings could include bringing a foreclosure action against your property.

The notice shall be in boldfaced type or all capital letters and shall include the contact information for the person that the member may contact to discuss payment.  Ifpayment.  The the member's address of record is within the United States, The notice shall be sent by certified mail,first returnclass receiptmail. requested,.

If, thereturn member'sreceipt addressrequested, ofand recordThe isnotice outsidemay ofbe theincluded Unitedwithin States,other thecorrespondence noticesent mayto bethe sentmember byregarding regularthe mail.member's delinquent account.

TheL.  Beginning noticeJanuary 1, 2020, except for planned communities that have fewer than fifty lots and that do not contract with a third party to perform management services on behalf of the association, the association shall provide a statement of account in lieu of a periodic payment book to the member with the same frequency that assessments are provided for in the declaration.  The statement of account shall include the current account balance due and the immediately preceding ledger history.  If the association offers the statement of account by electronic means, a member may beopt includedto withinreceive the statement electronically.  beginning January 1, 2021 and notwithstanding other correspondencestatements, coupons, notices or other communications that may be sent to a member, AN ASSOCIATION SHALL PROVIDE A STATEMENT OF ACCOUNT TO EACH MEMBER AT LEAST twice a year, unless the assessment was paid annually before JANUARY 1, 2020, in which case only an annual statement of account is required to be sent.  At the BEGINNING of each association fiscal year and at the midpoint of each association's fiscal year, the semiannual STATEMENT OF ACCOUNT SHALL INCLUDE THE CURRENT ACCOUNT BALANCE DUE FOR ASSESSMENTS, LATE FEES, FINES and OTHER COSTS AND FEES.  IF A MEMBER HAS A DELINQUENT ACCOUNT FOR UNPAID ASSESSMENTS, LATE FEES, FINES OR OTHER COSTS AND FEES, THE ASSOCIATION SHALL PROVIDE A STATEMENT OF DELINQUENT ACCOUNT TO THE MEMBER AT LEAST MONTHLY.  AN ASSOCIATION shall STOP PROVIDING THE STATEMENT OF DELINQUENT ACCOUNT ONCE THE MEMBER HAS PAID THE FULL BALANCE OF ALL ASSESSMENTS, LATE FEES, FINES OR OTHER COSTS AND FEES or during the pendency of a bankruptcy after an association RECEIVES notice that a member regardinghas filed a petition in bankruptcy.  THE STATEMENT OF DELINQUENT ACCOUNT shall include the member'sname delinquentand account.telephone number of a person or entity that is authorized to provide further information about the amount due and to receive information about disputed amounts.

L.  Beginning if January 1, 2020, except for planned communities that have fewer than fifty lots and that do not contract with a third party to perform management services on behalf of the association, the association shallOFFERS provideTHE asemiANNUAL statementSTATEMENT ofOF accountACCOUNT inOR lieu of a periodic payment book to the memberSTATEMENT withOF theDELINQUENT sameACCOUNT frequencyBY thatELECTRONIC assessmentsMEANS, are provided for in the declaration.  The statement of account shall include the current account balance due and the immediately preceding ledger history.  If the association offers the statement of account by electronic means, a member maykeeps opt to receive the statement electronically.  Without regard to the billing method or schedule adopted by the association, if a member'scurrent commonemail expense assessment account for any billing period has a balance due that is greater than the regular periodic common expense assessment, the association shall notify the member of the full amount due at least ten business days before the next common expense assessment due date.  The association shall provide the notice of full amount due, to the mailing address or,on at the option of the member, to the e-mail address of record forwith the memberassociation, andA shallMEMBER includeMAY theOPT nameTO andRECEIVE telephoneTHE numberSTATEMENT ofELECTRONICALLY. a person who is authorized to provide further information about the amount due and to receive information about disputed amounts.

IfThe the association doesmay stop providing any further statements of account or statements of delinquent account to a member if collection activity begins by an attorney, or a collection agency that is not routinelyacting provideas currentthe association's managing agent, regarding that member's unpaid account.  After collection activity begins, a member may request statements of delinquent account balanceby informationwritten request to allthe membersattorney or collection agency.  Any request by a member for eacha billingstatement period,of thedelinquent associationaccount after collection activity begins by an attorney or itsa collection agency that is not acting as the association's managing agent maymust addbe fulfilled by the directattorney costor the collection agency responsible for providingthe thiscollection.  noticeThe statement of delinquent account provided by the attorney or collection agency responsible for the collection shall include all amounts claimed to abe member'sowing commonto expenseresolve assessmentthe account.delinquency through the date set forth in the statement, including attorney fees and costs, regardless of whether such amounts have been reduced to judgment.

TheM.  An associationagent mayfor stopthe providingassociation anymay furthercollect statementson ofbehalf account notices of fullthe amountassociation duedirectly tofrom a member if collection activity begins by an attorney, or a collection agency that is not acting as the association'sassessments managingand agent,other regardingamounts thatowed member's unpaid account.  After collection activity begins, a member may request statements of account notices of full amount due by writtencash request to the attorney or collectioncheck, agency.  Any request by amailed memberor forhand-delivered abank statementdrafts, ofchecks, accountcashier's noticechecks ofor fullmoney amountorders, due after collection activity begins by ancredit, attorneycharge or adebit collectioncard agencyor thatby isother notelectronic actingmeans.  asFor theany association'sform managingof agentpayment mustother bethan fulfilledfor bycash the attorney or the collection agency responsible for themailed collection. or Thehand‑delivered statementbank ofdrafts, accountchecks, noticecashier's ofchecks full amount due provided by the attorney or collectionmoney agencyorders, responsible for the collectionagent shallmay includecharge alla amountsconvenience claimedfee to bethe owingmember tothat resolveis theapproximately delinquency through the dateamount setcharged forthto in the statementagent notice,by includinga attorneythird-party feesservice andprovider. costs, regardless of whether such amounts have been reduced to judgment.

M.  An agent for the association may collect on behalf of the association directly from a member the assessments and other amounts owed by cash or check, by mailed or hand-delivered bank drafts, checks, cashier's checks or money orders, by credit, charge or debit card or by other electronic means.  For any form of payment other than for cash or for mailed or hand‑delivered bank drafts, checks, cashier's checks or money orders, the agent may charge a convenience fee to the member that is approximately the amount charged to the agent by a third-party service provider." END_STATUTE Amend title to conform   DAVID C.

FARNSWORTH 02/05/2020 09:21 AM S:

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