MINUTES OF THE SENATE BUSINESS & LABOR STANDING COMMITTEE
Room 215 Senate Building Thursday, February14, 2013
Members Present: Sen. Curtis S. Bramble, Chair
Sen. Gene Davis
Sen. Deidre M. Henderson
Sen. David P. Hinkins
Sen. Karen Mayne
Sen. John L. Valentine
Sen. Todd Weiler
Staff Present: Mr. Bryant R. Howe, Assistant Director Ms. Karen Allred, Committee Secretary
A list of visitors and a copy of handouts are filed with the committee minutes.
Chair Bramble called the meeting to order at 2:13 p.m.
Approval of Minutes
MOTION: Sen. Mayne moved to approve the minutes of the February 12, 2012 meeting. The
motion passed unanimously with Sen. Valentine and Sen. Davis absent for the vote.
S.B. 64 Homeowner Association Reserve Account Amendments (S. Urquhart) Sen. Urquhart introduced and explained the bill assisted by Jim Campbell, President, Association
of PUDs and Condominiums of Washington County.
MOTION: Sen. Hinkins moved to adopt the following amendments:
1. Page
7, Lines 201 through 211
:
201
(6)
{
An
}
Each year that a new or updated reserve analysis is completed,
an
association of unit owners shall:
202
(a)
{
annually,
}
at the annual meeting of unit owners or at a special meeting of
unit
203
owners:
204
(i) present the reserve [study] analysis; [and]
205
(ii) [provide an opportunity for unit owners to] discuss reserves and [to] the reserve
206
analysis; and
207
(iii) vote [on], by a majority of unit owners
present at the annual meeting of unit
owners
, whether to fund a reserve fund [and, if so,
208
how to fund it and in what amount] in the manner and amount suggested in the reserve
analysis
209
or in some other manner and amount; and
210
(b) prepare and keep minutes of each meeting held under Subsection (6)(a) and
211
indicate in the minutes any decision relating to funding a reserve fund.
2. Page
11, Line 331 through Page 12, Line 340
:
331
(6)
{
An
}
Each year that a new or updated reserve analysis is completed,
an
association shall:
332
(a)
{
annually,
}
at the annual meeting of lot owners or at a special meeting of
lot owners:
333
(i) present the reserve [study] analysis; [and]
334
(ii) [provide an opportunity for lot owners to] discuss reserves and [to] the reserve
335
analysis; and
336
(iii) vote [on], by a majority of lot owners
present at the annual meeting of lot
owners
, whether to fund a reserve fund [and, if so,
337
how to fund it and in what amount] in the manner and amount suggested in the reserve
analysis
338
or in some other manner and amount; and
339
(b) prepare and keep minutes of each meeting held under Subsection (6)(a) and
340
indicate in the minutes any decision relating to funding a reserve fund.
The motion passed unanimously.
Sen. Urquhart and Mr. Campbell further clarified the bill and answered questions from the
committee.
Spoke in opposition to the bill: Michael Johnson, Utah Community Associations Institute
John Morris, Attorney, Legislative Action Committee
Justin Rae, Board Member, Utah Legislative Action Committee
MOTION: Sen. Henderson moved to transmit S.B. 64 favorablyas amended. The motion passed
unanimously with Sen. Hinkins and Sen. Valentine absent for the vote.
S.B. 182 Storage Unit Amendments (J. S. Adams)
MOTION: Sen. Davis moved to adopt 1st Sub. S.B. 182. The motion passed unanimously
with Sen. Hinkins and Sen. Valentine absent for the vote.
Sen. Adams introduced and explained the bill.
Spoke in opposition to the bill: Vaughn Jacobsen, Director of Operations, Standard Examiner
MOTION: Sen. Valentine moved to transmit 1st Sub. S.B. 182 favorably. The motion passed
with Sen. Weiler voting in opposition to the motion.
2nd Sub. H.B. 47 Insurance Law Amendments (J. Dunnigan)
MOTION: Sen. Valentinemoved to adopt the following amendments:
1. Page
1, Lines 21 through 23
:
21
. amends provisions related to company action level events;
22
{
. prohibits discretionary clauses;
}
23
. enacts a provision regarding producer's duties related to replacement of life
2. Page
3, Lines 65 through 67
:
65
31A-20-110, as last amended by Laws of Utah 2003, Chapter 298
66
{
31A-21-314, as last amended by Laws of Utah 1987, Chapter 95
}
67
31A-21-503, as last amended by Laws of Utah 2007, Chapter 307
3. Page
57, Line 1758 through Page 58, Line 1768
:
1758
{
Section 14.
Section
31A-21-314
is amended to read:
1759
31A-21-314. Prohibited provisions.
1760
[No] An insurance policy subject to this chapter may not contain any provision:
1761
(1) requiring it to be construed according to the laws of another jurisdiction
except as
1762
necessary to meet the requirements of compulsory insurance laws of other
jurisdictions;
1763
(2) depriving Utah courts of jurisdiction over an action against the insurer, except
as
1764
provided in permissible arbitration provisions; [or]
1765
(3) limiting the right of action against the insurer to less than three years from the
date
1766
the cause of action accrues[.]; or
1767
(4) purporting to give to an insurer, plan administrator, or claim administrator
full and
1768
final discretion in interpreting benefits in an insurance policy. }
Renumber remaining sections accordingly
Rep. Dunnigan introduced and explained the bill and answered questions from the committee.
assisted by Todd Kyser, Commissioner, Insurance Department.
Spoke in opposition to the amendment: Marilyn O'dell, Co-President Utah League of Women
Voters
Jennifer Dailey, Utah Association for Justice
Allen Orsmby, American Association for Retired People
Spoke to the amendment: Lincoln Nehring, Voices for Utah Children
Sen. Valentine withdrew his motion to amend.
MOTION: Sen. Valentine moved to proceed to the next item on the agenda. The motion
passed unanimously with Sen. Hinkins absent for the vote. Sen. Bramble relinquished the Chair to Sen. Henderson. S.B. 67 Consumer Protection Revisions (C. Bramble)
Sen. Bramble introduced and explained the bill.
MOTION: Sen. Bramble moved to adopt 2nd Sub. 67. The motion passed unanimously. Spoke in favor of the bill: Afton January, Utah Housing CoalitionScott Simpson, President, Utah Credit Union Association
Howard Headlee, President, Utah Bankers Association Dave Davis, Pres, Utah Retailer Merchant Association, Utah Food Industry Association, spoke to
the bill and answered questions from the committee.
MOTION: Sen. Weiler moved to adopt following amendment:
Page 2, Line 115: After line 115, insert:
Section 13A-6-302 is repealed on June 30, 2014.
SUBSTITUTE MOTION: Sen. Valentine moved to proceed to the next item on the agenda.
The motion passed unanimously with Sen. Hinkins absent for the
vote.
S.B. 179 Local Government Financial Reporting Revisions (C. Bramble)
Sen. Bramble introduced and explained the bill.
MOTION: Sen. Davis moved to transmit S.B. 179 favorably. The motion passed unanimously
with Sen. Hinkins absent for the vote.
MOTION: Sen. Bramble moved to place S.B. 179 on the Consent Calendar. The motion passed
unanimously with Sen. Hinkins absent for the vote.
MOTION: Sen. Bramble moved to adjourn. The motion passed unanimously with Sen.
Hinkins absent for the vote. Chair Bramble adjourned the meeting at 3:55 p.m.
_________________________________
Sen. Curtis S. Bramble, Committee Chair