The Utah House of Representatives debated first substitute House Bill 262 on Feb. 18, a bill that would have required homeowners association (HOA) board members to complete one hour of annual training and established limited enforcement tools for noncompliance. After extended floor debate and multiple questions from members, the House voted 30-42 to reject the bill.

Representative Acton, sponsor of HB 262, said the bill was intended to reduce disputes by improving board governance through modest annual education on topics such as fiduciary duties, reserve analysis and applicable statutes. "These are private contracts," Acton said on the floor; the sponsor described the measure as non-punitive and emphasized a generous grace period for compliance.

Opponents and skeptics, including Representative Ward and Representative Colford, questioned whether a state education mandate would address instances where residents alleged abusive or punitive actions by well-resourced HOAs, suggesting that some abuses appear strategic and not simply the product of ignorance. Representative McPherson asked whether a single disgruntled unit owner could initiate multiple enforcement actions and whether management companies should bear responsibility; Acton said the board is the governing entity and could remove noncompliant board members under some governing documents.

The bill's enforcement provisions would have allowed a unit owner to file an action for noncompliance and seek a $250 fine and prevailing-party attorney's fees, after a notice and cure period. Acton said the bill allows a three-month period to rectify a missed training hour and is designed not to be onerous.

After debate and several members urging caution about placing additional statewide mandates on HOAs, the House rejected first substitute HB 262 by a recorded vote of 30 yes, 42 no. The clerk announced the failed vote and that the bill would be "sent to staff for filing."