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First Substitute S.B. 117

Senator Stephen H. Urquhart proposes the following substitute bill:




Chief Sponsor: Stephen H. Urquhart

House Sponsor: Don L. Ipson

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Community Association Act.
             10      Highlighted Provisions:
             11          This bill:
             12          .    modifies a provision prohibiting a homeowner association's governing documents
             13      from requiring an amendment to be approved by more than 67% of the voting
             14      interests; and
             15          .    prohibits the vote required to amend governing documents to exceed 67%,
             16      regardless of a contrary provision in the governing documents.
             17      Money Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          None
             21      Utah Code Sections Affected:
             22      AMENDS:
             23          57-8a-104, as enacted by Laws of Utah 2007, Chapter 223
             25      Be it enacted by the Legislature of the state of Utah:

             26          Section 1. Section 57-8a-104 is amended to read:
             27           57-8a-104. Limitation on requirements for amending governing documents --
             28      Limitation on contracts.
             29          (1) As used in this section, "period of administrative control" means the period during
             30      which the person who filed the association's governing documents or a successor in interest
             31      retains authority to:
             32          (a) appoint or remove members of the association's board of directors; or
             33          (b) exercise power or authority assigned to the association under its governing
             34      documents.
             35          [(2) (a) When the period of administrative control ends, the governing]
             36          (2) (a) (i) Governing documents may not require that an amendment to the governing
             37      documents adopted after the period of administrative control be approved by more than 67% of
             38      the voting interests.
             39          (ii) The vote required to adopt an amendment to governing documents may not be
             40      greater than 67% of the voting interests, notwithstanding a provision of the governing
             41      documents requiring a greater percentage.
             42          (b) Subsection (2)(a) does not apply to an amendment affecting only:
             43          (i) lot boundaries; or
             44          (ii) members' voting rights.
             45          (3) (a) A contract for services such as garbage collection, maintenance, lawn care, or
             46      snow removal executed on behalf of the association during a period of administrative control is
             47      binding beyond the period of administrative control unless terminated by the board of directors
             48      after the period of administrative control ends.
             49          (b) Subsection (3)(a) does not apply to golf course and amenity management, utilities,
             50      cable services, and other similar services that require an investment of infrastructure or capital.
             51          (4) Voting interests under Subsections (2) and (3) are calculated in the manner required
             52      by the governing documents.
             53          (5) Nothing in this section affects any other rights reserved by the person who filed the
             54      association's original governing documents or a successor in interest.

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