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House approves bill barring use of business license to terminate nonconforming rental uses

Utah House of Representatives · February 22, 2010
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Summary

House Bill 381, sponsored by Representative Sandstrom, passed the Utah House to prohibit municipalities from using business-license renewal processes to force physical changes or termination of legal nonconforming rental housing uses; the bill passed 72-0 and is headed to the Senate.

The Utah House approved House Bill 381, which prevents cities from using business-license requirements to force physical changes that would terminate legal nonconforming rental housing uses.

Representative Sandstrom said the bill addresses situations where cities have retooled land-use ordinances such that previously legal rentals become nonconforming and are then pressured out through business-license compliance requirements. He said the bill protects private-property interests and was developed with input from the Utah Realtors Association and the Utah League of Cities and Towns.

Sandstrom told the House this measure would prohibit a city from forcing structural changes or nonrenewal of a business license as a method to terminate a lawful nonconforming rental use. The sponsor said the bill was developed after meetings with municipal stakeholders and real-estate interests and represents a straightforward property-rights protection in municipal land-use code.

After limited floor discussion and no further amendments, the House opened the vote and passed HB381 with 72 yes and 0 no; the bill will be transmitted to the Senate.