Bill Summary for Bill Number HB10-1290

Date: 02/23/2010

Final
BILL SUMMARY for HB10-1290

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Votes: View-->	Action Taken:
Moved to refer House Bill 10-1290 to the Committee	PASS

01:36 PM

The committee chair, Representative Peniston, called the meeting to order.

01:36 PM -- House Bill 10-1290

Representative Stephens, prime sponsor, presented House Bill 10-1290, concerning procedures for small planned communities to elect to exempt themselves from certain provisions of the "Colorado Common Interest Ownership Act" (CCIOA). Representative Stephens discussed the history of CCIOA and explained that the bill allows a small common interest community to exempt itself from most of the provisions of CCIOA, with a vote of the members, shareholders, or a community's executive board. Under the bill, small interest communities can only become exempt if there are no more than 20 units in the community, they do not impose expense assessments of over $400 per year, or they have annual revenues or expenses under $250,000. The bill also allows an exempt community to reverse the decision and accept full coverage under CCIOA, but only after two years from the previous election.

01:43 PM

Lynn Jordan, Community Associations Institute, testified against the bill and discussed the formation of CCIOA. She talked about the importance of common interest communities and the provisions of CCIOA, which apply to common interest communities formed after July 1, 1992. Ms. Jordan discussed problems for small associations that could result from House Bill 10-1290 and referred to handouts received by the committee (Attachment A).

01:51 PM

Jim Cowell, Community Associations Institute, testified against the bill, discussed the changes to CCIOA, and explained the potential negative impact of House Bill 10-1290 on small common interest communities.

01:53 PM

Representative Stephens addressed questions from the committee concerning the requirement in House Bill 10-1290 that allows common interest communities with revenue or expenses of less than $250,000 to be exempt. Committee discussion ensued concerning the revenue amount of $250,000 in House Bill 10-1290.

01:55 PM

Lenard Rioth, representing himself, testified in support of the bill and discussed living in a small common interest community. Mr. Rioth explained that the bill allows smaller interest communities to be exempt from some only provisions of CCIOA, but the state nonprofit act would still apply to these entities. He discussed the process for small common interest communities to opt out of CCIOA, under the bill. Mr. Riotn addressed questions from the committee concerning the eligibility requirements in the bill that would allow for small interest communities to call meetings and elections to be exempt from CCIOA. He referred to a handout that was distributed to the committee members addressing arguments against House Bill 10-1290 (Attachment B).

02:12 PM

Jan Doran, Council of Neighbors and Organizations, testified in support of the bill and explained the need for smaller common interest communities formed before July 1, 1992 to be exempt from CCIOA. Ms. Doran addressed questions from the committee concerning the use of fees levied by small common interest communities and distributed a handout to the committee from the Council of Neighbors and Organizations (Attachment C).

02:20 PM

Jeani Frickey Saito, Colorado Association of Home Builders, testified in support of the bill and explained that communities that are exempt from CCIOA would not have their development rights negatively impacted. Ms. Frickey Saito discussed the provisions of CCIOA and reasons small common interest communities would benefit from being exempt from CCIOA. She addressed questions from the committee concerning the process of forming common interest communities and the requirements under CCIOA.

02:26 PM

Representative Stephens entered closing comments on the bill.


BILL:	HB10-1290
TIME:	02:27:58 PM
MOVED:	Priola
MOTION:	Moved to refer House Bill 10-1290 to the Committee of the Whole. The motion passed on a 9-2 roll call vote.
SECONDED:	Acree
		VOTE
	Acree	Yes
	Apuan	Yes
	Bradford	Yes
	Liston	Yes
	Massey	Yes
	McKinley	Yes
	Priola	Yes
	Schafer S.	Yes
	Vigil	No
	Soper	Yes
	Peniston	No

Final YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:31 PM

The committee stood in a brief recess.