HB 2606

Overview

HB 2606 proposes amendments to Arizona laws governing both condominiums and planned communities, specifically clarifying the rights of association members to access certain financial and other records of their associations on request, and establishing procedural requirements for those records requests. The bill introduces specific standards: requests must be made in good faith, must describe the member’s proper purpose and the records sought with reasonable particularity, and the records requested must be directly connected with that purpose. It limits the definition of “financial and other records” to a detailed list, including governing documents, meeting minutes, budgets, assessments, contracts, and certain insurance and audit materials, narrowing what is subject to inspection. This bill does not impact an association’s right to withhold records related to legal privilege, pending litigation, certain confidential personal matters, but adds a new category: previously provided documents. This bill also clarifies that association’s may charge the 15 cents per page fee for both paper and electronic copies.

Key Changes

• Amending A.R.S. 33-1258 and A.R.S. 33-1805 to:
  • Provide that a community association member’s request for financial or other records of the association must:
    • Be made in good faith;
    • Describe with reasonable particularity the member’s proper purpose and the records the member wishes to inspect; and
    • The records requested must be directly concerned with the member’s purpose.
  • Specify that records available online are deemed to be reasonably available;
  • To clarify that an association may charge a fee of 15 cents per page copies, whether physical or digital copies;
  • To clarify that an association need not provide records that the association previously provided to the requesting member;
  • To define “financial and other records” as including only the following:
    • The declaration;
    • The name, address and telephone number of the association’s designated agent;
    • The bylaws of the association;
    • The names and property addresses of all association owners;
    • Except for executive sessions of the board of directors, the minutes of all meetings of the association and the board of directors for the previous three years, and records of all actions taken by a committee in place of the board of directors or on behalf of the association for the previous three years;
    • The operating budget for the current fiscal year;
    • Current assessments, including both regular and special assessments;
    • Financial statements and accounts, association-provided service or utility records and amounts held in reserve for the previous three years;
    • The most recent financial audit, review or compilation;
    • All current contracts entered into by the association or the board of directors on behalf of the association;
    • Current insurance policies, including company names, policy limits, deductibles, additional named insureds and expiration dates for property, general liability and association, director and officer professional liability and fidelity policies; and
    • Any electronic record of action taken by the board of directors for the previous three years.

Legislative Timeline

• January 21, 2026 – House Second Reading
• January 20, 2026 – Introduced; House First Reading; Assigned to House Government and Rules Committees

Impact

HB 2606, if enacted, could impose more structured record-keeping and disclosure processes on boards of directors and managers, necessitating clear documentation practices, efficient response systems, and heightened attention to privacy and confidentiality exceptions.