Amended SB 89 Moves Out of the Senate Judiciary Committee
This afternoon, the Senate Judiciary Committee took action on SB 89, moving the bill out of committee for its second reading on the Senate floor. This version differs from the introduced bill as the Committee adopted seven amendments presented by Senator Hagedorn.
These amendments further clarify and clean-up the problems that have arisen as associations implement the requirements of SB 100. The amendments are as follows:
▪L.001 provides that mixed-use and phased developments may specify a higher percentage than 67% to amend declarations and adds definitions of "mixed-use development" and "phased development" to CCIOA's definition section. (amending section 217)
▪L.003 provides that board members will not be liable for the financial results of the association's investment of reserve funds policy required by section 209.4 as long as the conduct of the board members complied with the business judgment rule.
▪L.005 provides technical corrections by clarifying that the emergency parking provision applies to the occupant of the unit, regardless of whether the occupant is a unit owner. L.005 also clarifies the accounting terms used in the bill.
▪L.006 provides a technical clean-up in the applicability section of CCIOA to ensure that the attorney fee provision (section 123) applies uniformly to pre and post-CCIOA communities.
▪L.007 provides that the buyer disclosures will be made in the sales contract, not at closing. In addition, the disclosure is amended to follow the disclosure made to buyers concerning special districts. This amendment also clarifies that a buyer has a right to economic damages resulting from a seller's failure to disclose. (deleting section 223 and amending 38-35.7-102)
▪L.008 provides that an association's regulations may limit the size of political size to the lesser of what is provided for by a local ordinance or 38 x 48 inches. [amending section 106.5(1)(c)]
▪L.009 provides that associations must disclose a list of its maintenance responsibilities as provided for in the common interest community's declaration. In addition, this amendment encourages associations to provide a list of its insurance responsibilities as provided for in the common interest community's declaration. (adding to section 209.4)