02-07 15:50 1st Sub. (Buff) H.B. 262
Cheryl K. Acton proposes the following substitute bill:
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HOA Board Education Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Cheryl K. Acton
Senate Sponsor:
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LONG TITLE
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General Description:
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This bill establishes education requirements for members of a homeowners' association
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board.
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Highlighted Provisions:
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This bill:
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▸ defines terms;
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▸ requires that a homeowners' association board member complete education requirements;
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▸ requires that a homeowners' association board member or secretary maintain a record of
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completing the education requirements for at least four years;
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▸ requires that a homeowners' association board member report completion of the education
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requirements to the homeowners' association;
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▸ provides a remedy for an owner for when a homeowners' association board member fails
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to meet the education requirements;
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▸ describes how a homeowners' association board member may remedy noncompliance
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with education requirements;
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▸ authorizes a board of a homeowners' association to remove a board member who fails to
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remedy noncompliance;
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▸ creates a standard for a person that offers education requirements;
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▸ requires that the Department of Commerce maintain a list of persons authorized to offer
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education requirements; and
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▸ provides that the requirements enacted by this bill do not take effect until after the period
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of administrative control.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
1st Sub. H.B. 262 1st Sub. (Buff) H.B. 262 02-07 15:50
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This bill provides a special effective date.
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Utah Code Sections Affected:
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ENACTS:
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57-8-61, Utah Code Annotated 1953
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57-8a-503, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 57-8-61 is enacted to read:
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57-8-61 . Management committee education requirements.
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(1) As used in this section:
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(a) "Management committee education" means online or in-person training that covers
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one or more of the following topics:
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(i) relevant statutes governing an association of unit owners;
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(ii) governing documents;
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(iii) fiduciary duties and duty of care;
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(iv) ethics and leadership;
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(v) rule creation and enforcement;
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(vi) management committee meeting procedures;
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(vii) financial responsibilities;
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(viii) maintenance responsibilities;
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(ix) risk management and insurance;
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(x) management committee member roles and responsibilities;
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(xi) conflict resolution and community building; or
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(xii) reserve analysis.
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(b) "Secretary" means an individual on the management committee who:
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(i) maintains management committee records; and
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(ii) keeps management committee meeting minutes.
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(2)(a) A management committee member shall complete a minimum of one hour of
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management committee education:
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(i) within 90 days after the day on which the management committee member begins
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service on the management committee; and
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(ii) each subsequent calendar year after the first calendar year that the management
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committee member serves on the management committee.
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(b) Within a reasonable time after completing the education requirement described in
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Subsection (2)(a), a management committee member shall provide the record of the
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management committee member's compliance with Subsection (2)(a) to:
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(i) the secretary; or
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(ii) if the management committee does not have a secretary, to each member of the
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management committee.
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(c) A management committee member violates Subsection (2)(a) if:
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(i) the management committee member served on a management committee during
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the preceding year; and
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(ii)(A) on January 1, the management committee member did not complete the
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one hours of management committee education for the preceding calendar
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year; or
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(B) if the management committee member began serving on the management
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committee fewer than 90 days before December 31 of the preceding year, the
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management committee member did not complete the one hour of management
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committee education within 90 days.
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(d) A management committee member that serves on more than one management
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committee shall complete the one hour of management committee education a
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minimum of once per calendar year.
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(3) An association of unit owners shall:
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(a) maintain an up-to-date record of each management committee member's compliance
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with Subsection (2)(a); and
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(b) make the record described in Subsection (3)(a) available to a unit owner at a
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reasonable time after the unit owner's request.
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(4)(a) Subject to Subsections (4)(b) and (4)(e), if a management committee member
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does not comply with Subsection (2)(a), a unit owner may file an action against the
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association of unit owners in a court with jurisdiction for:
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(i) injunctive relief:
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(A) requiring the management committee member to comply with the
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requirements of this section within 90 days after the day on which the court
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issues the order; and
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(B) removing the management committee member from the management
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committee if the management committee member does not comply with the
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requirements of this section within 90 days after the day on which the court
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issues the order;
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(ii) $250;
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(iii) any other remedy provided by law; and
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(iv) reasonable costs and attorney fees to the prevailing party.
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(b) Before the unit owner files a complaint under Subsection (4)(a):
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(i) a unit owner shall request the record described in Subsection (3)(a) from:
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(A) the association of unit owners in accordance with Section 57-8-17; or
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(B) the management committee member who is the subject of the request; and
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(ii) if the management committee member or association of unit owners does not
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provide a record of the management committee member's compliance with
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Subsection (2)(a), a unit owner shall deliver a written notice described in
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Subsection (4)(c) in person to:
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(A) the secretary, or if the management committee does not have a secretary, to a
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member of the management committee who is not the management committee
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member who is the subject of the request; and
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(B) to the management committee member who is the subject of the request.
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(c) The notice described in Subsection (4)(b)(ii) shall state:
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(i) that after making a request described in Subsection (4)(b)(i), the management
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committee member or the association of unit owners did not provide the unit
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owner the record described in Subsection (3)(a);
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(ii) a demand for:
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(A) the record described in Subsection (3)(a); or
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(B) the management committee member to remedy noncompliance with
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Subsection (2)(a), as described in Subsection (4)(d); and
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(iii) a date, at least 90 days from the day on which the unit owner delivers the notice,
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by which the management committee member or the association of unit owners
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shall comply with the demand.
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(d) A management committee member remedies noncompliance with Subsection (2)(a)
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by completing at least two hours of management committee education.
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(e)(i) A unit owner may bring an action under this Subsection (4) only if:
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(A) the management committee member has not remedied noncompliance in
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accordance with Subsection (4)(d) within the time period described in
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Subsection (4)(c);
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(B) the management committee does not remove the management committee
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member from the management committee as described in Subsection (6); and
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(C) the management committee member or the association of unit owners has not
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provided the record described in Subsection (3)(a).
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(ii) A unit owner shall bring an action under this Subsection (4) no more than four
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years after the day on which the calendar year for which the unit owner alleges a
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violation ends.
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(5) A secretary or management committee member shall maintain all records related to this
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section for at least four calendar years after the day on which the secretary or
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management committee member receives the record.
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(6)(a) Notwithstanding the provisions in Sections 16-6a-808 and 16-6a-809 and the
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governing documents of the association of lot owners relating to the removal of
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management committee members, the management committee may vote to remove a
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management committee member who does not remedy noncompliance in accordance
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with Subsection (4)(d) within the time period described in Subsection (4)(c).
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(b)(i) If the management committee votes to remove the management committee
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member as described in Subsection (6)(a), the management committee shall give
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written notice describing the result of the vote to each unit owner no later than 90
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days after the day on which the vote occurs.
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(ii) The management committee shall hold the vote described in Subsection (6)(a) no
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later than 30 days after the day on which the time period described in Subsection
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(4)(c) expires.
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(7) A person that purports to offer management committee education shall ensure that the
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training the person offers covers one or more of the topics described in Subsection (1).
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(8) The Department of Commerce shall:
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(a) maintain a list of persons that purport to offer management committee education; and
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(b) make the list described in Subsection (8)(a) available upon request.
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(9) The requirements of this section do not take effect until the day after the day on which
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the period of administrative control ends.
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Section 2. Section 57-8a-503 is enacted to read:
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57-8a-503 . Board education requirements.
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(1) As used in this section:
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(a) "Board education" means online or in-person training that covers one or more of the
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following topics:
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(i) relevant statutes governing an association of lot owners;
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(ii) governing documents;
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(iii) fiduciary duties and duty of care;
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(iv) ethics and leadership;
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(v) rule creation and enforcement;
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(vi) board meeting procedures;
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(vii) financial responsibilities;
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(viii) maintenance responsibilities;
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(ix) risk management and insurance;
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(x) board member roles and responsibilities;
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(xi) conflict resolution and community building; or
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(xii) reserve analysis.
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(b) "Secretary" means an individual on the board who:
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(i) maintains board records; and
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(ii) keeps board meeting minutes.
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(2)(a) A board member shall complete a minimum of one hour of board education:
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(i) within 90 days after the day on which the board member begins service on the
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board; and
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(ii) each subsequent calendar year after the first calendar year that the board member
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serves on the board.
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(b) Within a reasonable time after completing the education requirement described in
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Subsection (2)(a), a board member shall provide the record of the board member's
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compliance with Subsection (2)(a) to:
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(i) the secretary; or
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(ii) if the board does not have a secretary, to each member of the board.
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(c) A board member violates Subsection (2)(a) if:
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(i) the board member served on a board during the preceding year; and
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(ii)(A) on January 1, the board member did not complete the one hour of board
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education for the preceding calendar year; or
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(B) if the board member began serving on the board fewer than 90 days before
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December 31 of the preceding year, the board member did not complete the
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one hour of board education within 90 days.
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(d) A board member that serves on more than one board shall complete the one hour of
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board education a minimum of once per calendar year.
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(3) An association of lot owners shall:
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(a) maintain an up-to-date record of each board member's compliance with Subsection
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(2)(a); and
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(b) make the record described in Subsection (3)(a) available to a lot owner at a
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reasonable time after the lot owner's request.
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(4)(a) Subject to Subsections (4)(b) and (4)(e), if a board member does not comply with
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Subsection (2)(a), a lot owner may file an action against the association of lot owners
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in a court with jurisdiction for:
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(i) injunctive relief:
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(A) requiring the board member to comply with the requirements of this section
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within 90 days after the day on which the court issues the order; and
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(B) removing the board member from the board if the board member does not
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comply with the requirements of this section within 90 days after the day on
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which the court issues the order;
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(ii) $250;
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(iii) any other remedy provided by law; and
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(iv) reasonable costs and attorney fees to the prevailing party.
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(b) Before the lot owner files a complaint under Subsection (4)(a):
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(i) a lot owner shall request the record described in Subsection (3)(a) from:
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(A) the association in accordance with Section 57-8a-227; or
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(B) the board member who is the subject of the request; and
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(ii) if the board member or association does not provide a record of the board
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member's compliance with Subsection (2)(a), a lot owner shall deliver a written
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notice described in Subsection (4)(c) in person to:
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(A) the secretary, or if the board does not have a secretary, to a member of the
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board who is not the board member who is the subject of the request; and
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(B) to the board member who is the subject of the request.
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(c) The notice described in Subsection (4)(b)(ii) shall state:
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(i) that after making a request described in Subsection (4)(b)(i), the board member or
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the association did not provide the lot owner the record described in Subsection
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(3)(a);
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(ii) a demand for:
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(A) the record described in Subsection (3)(a); or
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(B) the board member remedy noncompliance with Subsection (2)(a), as described
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in Subsection (4)(d); and
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(iii) a date, at least 90 days from the day on which the lot owner delivers the notice,
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by which the board member or the association shall comply with the demand.
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(d) A board member remedies noncompliance with Subsection (2)(a) by completing at
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least two hours of board education.
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(e)(i) A lot owner may bring an action under this Subsection (4) only if:
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(A) the board member has not remedied noncompliance in accordance with
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Subsection (4)(d) within the time period described in Subsection (4)(c);
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(B) the board does not remove the board member from the board as described in
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Subsection (6); and
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(C) the board member or the association has not provided the record described in
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Subsection (3)(a).
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(ii) A lot owner shall bring an action under this Subsection (4) no more than four
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years after the day on which the calendar year for which the lot owner alleges a
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violation ends.
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(5) A secretary or board member shall maintain all records related to this section for at least
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four calendar years after the day on which the secretary or board member receives the
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record.
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(6)(a) Notwithstanding the provisions in Sections 16-6a-808 and 16-6a-809 and the
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governing documents of the association relating to the removal of board members,
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the board may vote to remove a board member who does not remedy noncompliance
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in accordance with Subsection (4)(d) within the time period described in Subsection
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(4)(c).
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(b)(i) If the board votes to remove the board member as described in Subsection (6)(a),
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the board shall give written notice describing the result of the vote to each lot
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owner no later than 90 days after the day on which the vote occurs.
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(ii) The board shall hold the vote described in Subsection (6)(a) no later than 30 days
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after the day on which the time period described in Subsection (4)(c) expires.
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(7) A person that purports to offer board education shall ensure that the training the person
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offers covers one or more of the topics described in Subsection (1).
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(8) The Department of Commerce shall:
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(a) maintain a list of persons that purport to offer board education; and
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(b) make the list described in Subsection (8)(a) available upon request.
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(9) The requirements of this section do not take effect until the day after the day on which
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the period of administrative control ends.
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Section 3. Effective Date.
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This bill takes effect on July 1, 2026.
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