Bill Summary for Bill Number HB08-1007

Date: 04/09/2008

Final
BILL SUMMARY for HB08-1007

SENATE COMMITTEE ON STATE, VETERANS & MILITARY AFFAIRS

Votes: View-->	Action Taken:
Moved that House Bill 08-1007 be favorably recomme	TIE

01:55 PM -- House Bill 08-1007

Senator Tapia, prime sponsor, presented House Bill 08-1007, concerning the modification of statutory provisions enacted by the General Assembly during the 2007 legislation session that impose certain requirements on private toll companies for the purpose of alleviating consequences of those provisions that may affect real property. He commented on the impact of the proposed Prairie Falcon Parkway Express on property owners.

01:57 PM

The following persons supported House Bill 08-1007:

01:57 PM -- Mark Lowderman, El Paso County Assessor, supported House Bill 08-1007 and said that he has worked with Representative Looper over the last year in developing House Bill 08-1007. He commented on the requirement that notices be placed on the titles of property owned within the proposed toll road corridor, and said that these notices are being treated essentially as pending lawsuits. He said that the notices are a blot on the titles that hinder sales of the property in the corridor. He said that the removal of the notices will remove a portion of the "economic obsolescence" that has been attached to the titles. He distributed a letter to the committee from Amy Lathan, El Paso County Commissioner (Attachment A). He noted that Colorado is a "full-disclosure state," which requires the disclosure of conditions that may affect the usability or saleability of property at sale.

02:09 PM -- John Metli, representing Elbert County, said that prior legislation regarding the regulation of proposed toll roads has caused a great deal of suffering in the proposed Prairie Falcon Parkway Express corridor. He spoke of the origination of the Prairie Falcon Parkway Express proposal in the mid-1980s. He said that the title notices are a "50-page cloud" on the titles of property owners in the corridor. He noted that House Bill 08-1007 will remove this stigma.

02:15 PM -- Simon Malk, representing Ellicott Town Center, described this housing development within the toll road corridor and supported House Bill 08-1007. He said that House Bill 08-1007 will provide immediate relief for property owners in the corridor, and that having a more extensive bill enacted this session is not likely. He said that the proposed toll road has impacted property values and made it more difficult for residents within the corridor to acquire financing.

02:24 PM -- Dean Mabe, Ellicott County, representing himself, said that buyers and bankers working with property in the toll road corridor have significant concerns about these title notices. He said that the property owners in the corridor who do not want to sell their property are not affected by the toll road proposal, but that the proposal does hurt people who "are not so well off" and are limited in their refinancing opportunities. He said that such people are not able to trade up their property. He said that the toll road would be routed right through the center of the poorest section of El Paso County. He said that the title notices are essentially easements on property. He said that House Bill 08-1007 will help to remove the "clouds" from property titles in the corridor.

02:34 PM -- Diane Evans, representing the Land Title Association of Colorado, commented on the current statutory requirement for the filing of a map with counties in proposed toll road corridors. She noted that the purpose of these maps is to identify affected properties in a proposed corridor. She said that, in some counties within the Prairie Falcon Parkway Express corridor, these maps were recorded in January of 2006. She noted that the affected properties in a corridor are identified by title companies.

02:39 PM -- Christopher Condie, representing the Attorneys Title Guaranty Fund, and the Land Title Association of Colorado, said that the title industry has no position on House Bill 08-1007. He noted that the maps required to be filed under current law "are listed as an exception on properties" because title companies would otherwise be subject to the potential for litigation for fraud. He said that the potential for construction of a toll road in the corridor is now common knowledge. He said that House Bill 08-1007 provides an immunity provision for the title industry. He said that the notices of the proposed toll road will not be revealed in title searches if House Bill 08-1007 is enacted.

02:45 PM -- Diane Evans, representing the Land Title Association of Colorado, said that there is no provision of Colorado law that indicates that these toll road notices must be recorded on individual titles. However, she noted that current law requires that a proposed toll road map be recorded in the public record in the counties within the proposed toll road corridor.

02:48 PM -- Christopher Condie, representing the Attorneys Title Guaranty Fund and the Land Title Association of Colorado, said that the "genie has already been let out of the bottle," and the that the idea of this toll road is well-known. He said that title companies "do not list rumors on titles," only items that have been formally recorded.

02:52 PM

The following persons opposed House Bill 08-1007:

02:52 PM -- Sharon Croghan, Keenesburg, representing Save Our Homes, submitted three letters to the committee (Attachments B, C and D). She commented on the statutory requirement for the filing of toll road corridor maps with counties, and the notification of property owners of these proposed corridors. She noted that these activities occur with no certainty that a toll road will ever be developed. She said that House Bill 08-1007 is not "fair legislation" and that fair legislation would require that toll road companies prove that they have a valid plan for development of a toll road prior to filing a map with a county. She said that toll road companies should have meaningful deadlines for proceeding with their plans, and that the state should "put its stamp of approval" on any proposed toll road plan before permitting a toll road company to proceed. She said that the Prairie Falcon Parkway Express proposal has been in place since 1986. She said that House Bill 08-1007 will not clear up the cloud on the titles of property owners in the corridor. She said that House Bill 08-1007 does nothing to solve the damage that is being done to people in the corridor. She said that she would rather live with the cloud on her title than see House Bill 08-1007 enacted. She said that "this cloud will not go away in any event." She said that she wants to see meaningful legislation introduced on this topic. She said that House Bill 08-1007 provides a solution for just a small number of the people in the corridor.

03:17 PM -- Mike Coan, representing Save Our Homes, said that the filing a toll road corridor plan creates an asset that can be sold. He described the documents that homeowners have received during the initiation of the Prairie Falcon Parkway Express proposal. He said that House Bill 08-1007 is misguided. He said that property buyers who are not notified of the toll road proposal will sue the seller since, under House Bill 08-1007 the title companies will have immunity. He said that the problem is the toll road plan itself, and not notification of the toll road plan.

03:28 PM -- Cindy Bulinski, Bennett, representing herself, said that there is widespread opposition to House Bill 08-1007. She commented on how she learned of the proposal for the toll road. She said that future property owners should be made aware of the toll road proposal. She said that she would not have purchased her home if she had been made aware of the toll road. She said that House Bill 08-1007 will give relief to those who want to make a quick sale. She said that she wants the problem to be fixed, rather than cloaked.

03:35 PM -- Chuck Sexton, Bennett, representing himself, opposed House Bill 08-1007, and distributed a map of parcels in the corridor (Attachment E). He said that House Bill 08-1007 would provide immunity for the developer of the toll road. He said that the laws of the state should protect the citizens of Colorado. He added that the right of the developer to land in the corridor is hypothetical at this point. He said that he hopes a comprehensive bill will be offered on this subject next session.

03:40 PM -- Robert Thommason, representing the High Plains Coalition for Responsible Transportation Policy, said that he lost a house to the E-470 toll road and now resides within the area for which the Prairie Falcon Parkway Express toll road is proposed. He said that significant resources are being used to support this legislation, and that the proponents of the roadway seem confident that their proposal will proceed. He said that House Bill 08-1007 will provide further legitimacy to the toll road company pursuing this roadway. He said that this issue is destined for the courts and commented on the damage to the property owners in the corridor. He said that not all title companies have opted to include notices of the toll road proposal with titles to property in the corridor. He said that House Bill 08-1007 will only result in more confusion. He said that House Bill 08-1007 will only protect developers and title companies from litigation. He added that the only solution to the problem is to void the proposed toll road corridor. He said that property owners have lost approximately 25 percent of their property value as a result of the toll road proposal. He said that the toll road company is really seeking ancillary benefits of the proposal, such as access to land.

03:54 PM -- Pat Vera-Hink, Bennett, representing herself, opposed House Bill 08-1007 because it would hide the existence of the toll road from future property buyers. She spoke of her efforts to find a home location in Colorado away from potential development. She said that she was not aware of the proposal for the toll road when she bought her property. She said that the matter should be addressed in future legislation, and that there is a real possibility that the toll road proposal may proceed.

04:01 PM -- Barbara Fillmore, representing the El Paso County Transportation Coalition, said that House Bill 08-1007 will prevent future property buyers from knowing of the proposed toll road.

04:08 PM -- Jimmey Phillips, Yoder, representing himself, commented on potential safety problems that could result from the construction of a toll road. He asked for the committee's help in resolving this problem. He said that providing disclosure of a potential toll road is the right thing to do.

04:13 PM -- Diane Whitley, Calhoun, representing herself, commented on her purchase of property in the toll road corridor and her efforts to sell the property. She distributed two documents to the committee (Attachments F and G). She commented on the requirements of House Bill 06-1003. She said that House Bill 08-1007 is unconstitutional.

04:23 PM -- James Mike Miller, Elizabeth, representing himself, said that when he bought his property in the corridor he was not aware of the proposed toll road. He said that he is a disabled veteran. He said that House Bill 08-1007 will result in the purchase of property in the corridor by persons who are unaware of the proposed toll road.

04:27 PM -- Clair Orr, Kersey, representing himself, said that he is a real estate agent and familiar with the impact of the proposed toll road on titles in the corridor. He stated his support for full disclosure of any situations that could impact property at sale.

04:31 PM -- Karen Shipper, Calhoun, representing herself, said that she lives in the corridor and that House Bill 08-1007 sets up rules that vary for existing and future toll roads. She said that she believes House Bill 08-1007 will be found unconstitutional. She said that the homeowners in the corridor have not had due process of law.

04:36 PM -- Carolyn Meyers, representing the El Paso County Transportation Coalition, opposed House Bill 08-1007. She said that this committee hearing is the first time that landowners in the corridor have had an opportunity to testify regarding the language that is presently in House Bill 08-1007.

04:40 PM -- Paige Evans, Kiowa, representing herself, said that the proposed toll road would run across her property. She said that "she could not sell her home even if she wanted to," and that she and her husband have no way to access their equity in their property. She said that her land is not conducive to the construction of a toll road.

04:44 PM -- Shelayne Dorman, Parker, representing herself, stated her opposition to House Bill 08-1007.

04:44 PM -- Francis McGraw, representing the Save Our Homes Coalition, distributed the written testimony of Carl Filler (Attachment H.) She said that 5,000 homes would be affected by the proposed toll road.

04:48 PM -- Patti Sward-Malzewski, Elizabeth, said that she does not live in the corridor, but wants to support her neighbors. She said that she wants to see a complete fix to this problem during the next legislative session.

04:50 PM -- Carl Filler, Fort Lupton, stated his opposition to House Bill 08-1007. His written testimony was distributed by Francis McGraw earlier.

04:53 PM -- David Foster, representing the Prairie Falcon Parkway Express, said that his company is neutral on Prairie Falcon Parkway Express. He said that the corridor was reduced to a three-mile width as a result of legislation enacted in 2006. He said that the project may only proceed with the cooperation of the Colorado Department of Transportation. He commented on how the notification process for construction of the toll road was initiated, and said that there is a "cloud on the properties" in the corridor. He said that the original toll road company for this proposal was created in 1986, and that the company "refiled" in 2006 as a result of the 2006 legislation. He said that he believes that his company has a vested right, in perpetuity, to build the toll road in the corridor.

05:02 PM

Senator Tapia said that many of the property owners in the corridor have been unable to sell their homes, and have been denied home loans as a result of the proposed toll road. He said that 2006 legislation addressing toll road development in Colorado has had unintended consequences.


BILL:	HB08-1007
TIME:	05:14:11 PM
MOVED:	Tapia
MOTION:	Moved that House Bill 08-1007 be favorably recommended to the Committee of the Whole. He later withdrew the motion.
SECONDED:
		VOTE
	Cadman
	Schultheis
	Windels
	Romer
	Tapia




Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: TIE

05:15 PM

The committee meeting recessed briefly.

05:19 PM

Senator Romer laid House Bill 08-1007 over to a future committee meeting for action only. Senator Tapia said that House Bill 08-1007 is being laid over to permit time for the development of amendments to House Bill 08-1007.

05:20 PM

The committee meeting adjourned.