SB 1387 Summary

• Amends Arizona condominium and planned community law to codify board duties including acting with ordinary prudence, treating members fairly, and exercising discretionary powers reasonably.

• Establishes indemnification for association directors and officers from liability when duties are performed in compliance with specified standards, with a presumption that directors acted properly unless challenged by clear and convincing evidence.

• Places burden of proof on parties challenging board actions to establish breach of duty and demonstrate actual harm to individual members or the community, except for actions outside board authority.

• Removes "grandparent" from the list of relatives that trigger conflict-of-interest disclosure requirements for board members in both condominium and planned community contexts.

• Legislature declares amendments are clarifying changes consistent with existing case law (Tierra Ranchos Homeowners Association v. Kitchukov) rather than substantive changes to condominium and homeowners association law.