Representative Tuscher introduced the first substitute to HB327 as an attempt to set statutory guard rails around HOA regulation of private property while preserving contract autonomy in many areas.

The substitution and subsequent amendments carve out a number of specific prohibitions on HOA rulemaking: homeowners would retain the right to display political signs and flags within a limited scope, to park operable vehicles in their own driveways (an "operable" clarification was added by amendment), to keep small vegetable gardens in backyards, to install exterior fire‑resistant materials in fire‑prone areas, and to avoid HOA regulation of public streets. The bill also requires HOAs that deny homeowner plans to give written rationale tied to a rule violation rather than a bare denial.

Sponsor comment and committee questions emphasized balancing private contract rights against homeowners who now have little choice but to live in HOAs. Representative Tuscher said some HOAs function as "quasi‑governmental" bodies and the statute should set basic limits on what associations can regulate.

Public testimony included support from housing and builder groups. Ross Ford (Utah Home Builders Association) and Chris Gambrulis (Ivory Homes / Property Rights Coalition) said the bill provides needed limits and guidance for common issues; representatives of HOA and property‑management groups also participated in stakeholder negotiations. Several committee members requested an explicit "operable vehicle" phrase to avoid permitting inoperable cars to be stored in front yards; the sponsor agreed and the amendment was adopted.

Action: The committee adopted the first substitute and a voice amendment adding the word "operable" to the vehicle parking language; the bill was passed out of committee with a favorable recommendation unanimously.

Ending: HB327 as amended sets explicit limits on certain HOA prohibitions and increases transparency in architectural-review denials while leaving much HOA governance to governing documents and private contract.