SB 89 Signed By Governor This Afternoon
With Governor Owens's signature, Senate Bill 89, the "SB 100 Clean-up Bill," is now law. SB 89 addresses many parts of SB 100 that needed clarification due to ambiguous or conflicting language. In addition, SB 89 modifies some of the requirements implemented by SB 100 that failed to consider the actual manner in which associations operate or had unintended consequences. With the exception of two provisions (the adoption of a dispute resolution policy and a portion of the seller disclosure section), SB 89 is effective on the Governor's signature, May 26, 2006. (Click here for a copy of the new law.)
Most of the changes brought by SB 89 will make life easier for associations and do not require affirmative action on the part of the association board members and managers separate from learning what the law contains (e.g. knowing that associations are no longer required to have an audit or review once every two years.) To aid you in understanding the current state of the law, here is a comprehensive outline, which covers what SB 100 and SB 89 state and how to comply.
Associations, however, must revise their SB 100 required and recommended policies and procedures as necessary to remove any conflicts with the new law. Click here for a chart outlining the required and recommended policies and procedures and what actions an association needs to take now. Not sure how to make these revisions? Click here for sample language to use in making the necessary revisions.
In addition to revising current policies and procedures, SB 89 requires associations to adopt a dispute resolution policy by January 1, 2007. In the near future, we will be making several sample dispute resolutions policies available on our website to aid you in compliance with this requirement.