Posts Tagged ‘legislative’

HB75: Board Action Without a Meeting

Monday, June 26, 2017 posted by Mindy Knudsen 3:40 PM

Article by David Houston, LAC Vice Chair/Public and Legislative Relations Chair and Coral Canyon Community Manager.

In 2015 I wrote an article detailing the provisions in HB 99 (Open Meetings Law). Now, I would like to address the exception to that law as defined in HB 75. Title 57, Chapter 8 Section 57 is where the exception is provided for “Board Action without a Meeting”.

There can be strong opinions on both sides of this discussion. If you are on a board or part of the management and are trying to get work done posthaste waiting for a board meeting can be frustrating and you can lose momentum. Likewise, if you are a homeowner and want to ensure the board is following due diligence and not having access to the decision process can be equally concerning.

Title 16, Chapter 6a, Part 8, Section 813 sets the conditions for “Action without a Meeting” as follows:

  1. a. Unless otherwise provided in the bylaws, any action required or permitted by the chapter to be taken at a board of directors meeting may be taken without a meeting if all members of the board consent to the action in writing.
  2. Action is taken at the time the last director signs a writing describing the action taken, unless, before that time, any director revokes a consent by writing signed by the director and received by the secretary or any other person authorized by the bylaws or the board of directors.
  3. Action is effective at the time it is taken unless the board of directors establishes a different effective date.
  4. a. Unless otherwise provided in the bylaws, any action required or permitted by this chapter to be taken at a board of directors’ meeting may be taken without a meeting if notice is transmitted in writing to each member of the board and each member of the board by the time stated in the notice:

(i) Signs a writing for such action; or

(ii) Signs a writing against such action, abstains in writing from voting, or fails to respond or vote;

(iii) Fails to demand in writing that action not be taken without a meeting.

  1. The notice required by subsection (2)(a) shall state:

(i) The action to be taken;

(ii) The time by which a director must respond to the notice;

(iii) That the failure to respond by the time stated in the notice will have the same effect as;

  1. Abstaining in writing by the time stated in the notice; and
  2. Failing to demand in writing by the time stated in the notice that action not be taken without a meeting; and

(iv) Any other matters the nonprofit corporation determines to include.

  1. Action is taken under the subsection (2) only if at the end of the time stated in the notice transmitted pursuant to subsection (2)(a):

(i) The affirmative votes in writing for the action received by the nonprofit corporation and not revoked pursuant to subsection (2)(e) equal or exceed the minimum number of votes that would be necessary to take such action at a meeting at which all the directors then in office were present and voted; and

(ii) The nonprofit corporation has not received a written demand by a director that the action not be taken without a meeting other than a demand that has been revoked pursuant to subsection (2)(e).

  1. A director’s right to demand that action not be taken without a meeting shall be considered to have been waived unless the nonprofit corporation receives such demand from the director in writing by the time stated in the notice transmitted pursuant to subsection (2)(a) and the demand has not been revoked pursuant to subsection (2)(e).
  2. A director who in writing has voted, abstained, or demanded action not be taken without a meeting pursuant to this subsection (2) may revoke the vote, abstention, or demand in writing received by the nonprofit corporation by the time stated in the notice transmitted pursuant to subsection (2)(a).
  3. Unless the notice transmitted pursuant to subsection (2)(a) states a different effective date, action taken pursuant to this subsection (2) is effective at the end of the time stated in the notice transmitted pursuant to subsection (2)(a).
  4. a. Unless otherwise provided by the bylaws, a communication under this section may be delivered by an electronic transmission.
  5. An electronic transmission communicating a vote, abstention, demand, or revocation under subsection (2) is considered to be written, signed and dated for the purposes of this section if the electronic transmission is delivered with the information from which the nonprofit corporation can determine:

(i) That the electronic transmission is transmitted by the director; and

(ii) The date on which the electronic transmission is transmitted.

  1. The date on which an electronic transmission is transmitted is considered the date on which the vote, abstention, demand, or revocation is signed.
  2. For purposes of this section, communications to the nonprofit corporation are not effective until received.
  3. Action taken pursuant to this section:
  4. Has the same effect as action taken at a meeting of the directors; and
  5. May be described as an action taken at a meeting of the directors in any document.

As you can clearly see there is nothing simple about this policy but our goal is to help keep our members informed and to encourage all concerned to act on behalf of their communities. Both the Utah Chapter of the Community Association Institute (UCCAI) and the Utah Legislative Action Committee (ULAC) are here to help reach that goal. Please visit our websites: www.uccai.com and www.utahlac.com and stay engaged.

 

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Committee updates: the LAC’s 2017 legislative session work

Wednesday, December 14, 2016 posted by Mindy Knudsen 8:50 PM
The Legislative Action Committee is back in action and gearing up for the 2017 Legislative Session.
Members of the LAC journeyed to Fillmore on May 18th for the Annual Planning Retreat. The Fillmore location is a tradition as it allows Northern and Southern Utah members the opportunity to meet face-to-face without having to travel a great distance in one day.
Our morning was dedicated to membership review, subcommittee appointments, fundraising goals, event planning, and public and legislative relations. We will again be distributing legislator welcome packets and plan to do so in late November or early December. Please contact Mindy at executivedirector@utahlac.com if you have legislative contacts and are interested in assisting us with hand delivering packets.
The afternoon was spent on legislative analysis and drafting. The Committee discussed a variety of topics, among them were:
Solar Access (2016 HB451)
Condominium and Community Ownership Amendments (2016 HB255)
Community Association Act Amendments (2016 HB273)
“Fix-it” bill to unify the two acts (Condominium & Community Association)
Solar is a big topic this year. LAC hosted a chapter luncheon on May 19th to discuss solar installations in community associations.  A panel of experts presented information on solar installations, legal concerns and answered general questions from attendees. As a follow-up to this luncheon, a survey was disbursed to gather feedback to help the LAC in drafting and/or fighting future legislation. With 200+ responses, we feel we have a much clearer picture of the position of members and the communities we represent. Thank you to everyone who participated!
Dates have been set for the following LAC events:
Southern Utah Solar Panel Discussion – Thursday, November 3rd (tentative)
2017 Community Association Day – Friday, February 3rd at the Capitol
Keith Schoen, who has been with the LAC since 2010, is retiring. We want to thank Keith for his years of service to the Committee as well as his tireless efforts to make the Southern Utah Golf Tournament a huge success.

Article by Sarah Crawford, LAC Chair and Director of Client Services at Morris Sperry Law.

The Legislative Action Committee is back in action and gearing up for the 2017 Legislative Session.

Members of the LAC journeyed to Fillmore on May 18th for the Annual Planning Retreat. The Fillmore location is a tradition as it allows Northern and Southern Utah members the opportunity to meet face-to-face without having to travel a great distance in one day.

Our morning was dedicated to membership review, subcommittee appointments, fundraising goals, event planning, and public and legislative relations. We will again be distributing legislator welcome packets and plan to do so in late November or early December. Please contact Mindy at executivedirector@utahlac.com if you have legislative contacts and are interested in assisting us with hand delivering packets.

The afternoon was spent on legislative analysis and drafting. The Committee discussed a variety of topics, among them were:

Solar Access (2016 HB451)

Condominium and Community Ownership Amendments (2016 HB255)

Community Association Act Amendments (2016 HB273)

“Fix-it” bill to unify the two acts (Condominium & Community Association)

Solar is a big topic this year. LAC hosted a chapter luncheon on May 19th to discuss solar installations in community associations. A panel of experts presented information on solar installations, legal concerns and answered general questions from attendees. As a follow-up to this luncheon, a survey was disbursed to gather feedback to help the LAC in drafting and/or fighting future legislation. With 200+ responses, we feel we have a much clearer picture of the position of members and the communities we represent. Thank you to everyone who participated!

Dates have been set for the following LAC events:

Southern Utah Solar Panel Discussion Thursday, November 3rd (tentative)

2017 Community Association Day Friday, February 3rd at the Capitol

Keith Schoen, who has been with the LAC since 2010, is retiring. We want to thank Keith for his years of service to the Committee as well as his tireless efforts to make the Southern Utah Golf Tournament a huge success.

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Proposed rental legislation

Thursday, September 29, 2016 posted by Mindy Knudsen 5:34 PM

Article by John Richards, LAC member and attorney from Ball Janik LLP.

The following is a summary of the legislation affecting rentals applicable to condominiums in 2016.  This year, for 2017, we are working towards having this same language inserted into the Community Association Act (57-8a-101, et seq.) for non-condominium communities.

The Bill that passed was House Bill 273 and addresses an extremely important topic – regulating the use of common areas and facilities by renters.  Such regulations may be passed by “rule” as opposed to an amendment

This “new” legislation amends the Condominium Association Act (57-8-1, et seq.) to allow an Association to adopt a rule that, if the term of the rental is less than 30 days, impose a reasonable limit on the number of individuals that may use the common areas and facilities as the rental unit tenant’s guest or as the unit owner’s guest.  See 57-8-8.1(1)(iii)

57-8-2(b) provides that a rule may “limit or prohibit a rental unit owner from using the common areas and facilities for purposes other than attending an association meeting or managing the rental unit.

The objective of these changes is to help avoid abuses of the common amenities – such as using the clubhouse for a wedding reception simply because it is cheaper to rent a unit for a night and then have free access to a common amenity than to rent a local reception hall.

In addition, the Act now provides that a rule may, if the rental unit owner retains the right to use the association of unit owners’ common areas and facilities (e.g., in the lease agreement), even occasionally, to charge (1) a rental unit owner a fee to use the common areas and facilities; and (2) for a unit that a unit owner leases for a term of less than 30 days, impose a reasonable limit on the number of individuals that may use the common areas and facilities as the rental unit tenant’s guest or as the unit owner’s guest….  57-8-8.1(2)(b)(A)&(B).

Again the intent is to provide some important authority to the Association to better regulate the common areas and facilities to help protect these important assets.

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Solar legislation

Tuesday, July 12, 2016 posted by Mindy Knudsen 12:55 PM

Article by LAC member and manager at Advantage Management, Jason Sucher. Solar panels and future legislation that will affect Utah homeowners is a hot topic. Read this article on the UCCAI site.

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