Date: 03/18/2015

Final
BILL SUMMARY for SB15-177

SENATE COMMITTEE ON BUSINESS, LABOR, & TECHNOLOGY

Votes: View--> Action Taken:
Adopt amendment L.010 (Attachment L). The motion f
Adopt amendment L.012 (Attachment N). The motion f
Adopt amendment L.014 (Attachment M). The motion f
Adopt amendment L.016. The motion passed on a vote
Adopt amendment L.017. The motion passed on a vote
Adopt amendment L.018. The motion passed on a vote
Adopt amendment L.019. The motion passed on a vote
Refer Senate Bill 15-177, as amended, to the Commi		FAIL
FAIL
FAIL
PASS
PASS
PASS
PASS
PASS



01:46 PM -- SB 15-177

Senator Scheffel introduced Senate Bill 15-177, concerning homeowner association construction defects lawsuits. The bill requires that a homeowners' association (HOA) use mediation or third party arbitration before a lawsuit can be filed in disputes involving construction defects against a development party. If an HOA had bylaws that required third-party mediation or arbitration at the time of construction, the HOA must adhere to that original policy in construction defects cases.

In addition to submitting to mediation or arbitration before filing a construction defect lawsuit, the HOA's executive board must send advance notice to all unit owners, together with a disclosure of the projected costs, duration, and financial impact of the litigation including the financial impact of not moving forward with the claim and the impact on units in the HOA that have no alleged defects. The HOA's executive board must also obtain the written consent of a majority of the unit owners to move forward with the claim.


01:54 PM

Senator Ulibarri made opening comments about the bill. He provided an overview of the bill. The sponsors provided amendments L.016, L.017, L.018, and L.019 (Attachments A, B, C, and D) and described the purpose of the amendments.

150318 AttachA.pdf150318 AttachA.pdf150318 AttachB.pdf150318 AttachB.pdf150318 AttachC.pdf150318 AttachC.pdf150318 AttachD.pdf150318 AttachD.pdf

02:11 PM

Senator Scheffel responded to questions from the committee.

02:17 PM

Senator Ulibarri responded to questions from the committee.

02:22 PM -- Michael Hancock, Denver Mayor, spoke in support of the bill.

02:27 PM -- Bob Murphy, Lakewood Mayor, spoke in support of the bill. He responded to questions from the committee.

02:35 PM -- Dennis Polk, representing himself, spoke in favor of the bill. He responded to questions from the committee.

02:47 PM -- Jill Repella, Douglas County Commissioner, spoke in favor of the bill. She responded to questions from the committee.

02:56 PM -- Don Rosier, Jefferson County Commissioner, spoke in favor of the bill. He responded to questions from the committee.

03:06 PM

Senator Ulibarri responded to questions from the committee.

03:12 PM -- Jon Harris, representing himself, spoke in opposition to the bill. He discussed his experience with construction defects on his home. He read a list of groups also in opposition to the bill. He responded to questions from the committee.

03:24 PM -- Patricia Pacey, Pacey Economics, spoke in opposition to the bill. She responded to questions from the committee.

03:48 PM -- Molly Foley-Healy, Community Associations Institute (CAI), spoke in opposition to the bill. She responded to questions from the committee.

04:20 PM -- Mary Lavia, Penterra Plaza, spoke in opposition to the bill. She responded to questions from the committee. She provided two handouts to the committee (Attachments E and F)

150318 AttachE.pdf150318 AttachE.pdf150318 AttachF.pdf150318 AttachF.pdf

04:26 PM -- Julie Connaghan, Dakota Ridge HOA, spoke in opposition to the bill. She responded to questions from the committee.

04:35 PM -- Dennis Houston, Parker Area Chamber of Commerce, spoke in support of the bill. He provided a handout to the committee (Attachment G). He responded to questions from the committee.

150318 AttachG.pdf150318 AttachG.pdf

04:41 PM -- AJ Rose, representing himself, spoke in opposition to the bill. He responded to questions from the committee.

04:47 PM -- Tom Clark, Denver Metro Economic Development Council and Metro Mayors Caucus, spoke in support of the bill. He provided two handouts to the committee (Attachments H and I). He responded to questions from the committee.

150318 AttachH.pdf150318 AttachH.pdf150318 AttachI.pdf150318 AttachI.pdf

05:04 PM -- Tami Door, Downtown Denver Partnership, spoke in support of the bill.

05:07 PM -- Tamra Ward, Colorado Concern, spoke in support of the bill. She listed the participants in the process of developing the bill.

05:10 PM -- Dave Ford, CAI, spoke in opposition to the bill.

05:13 PM -- Jim Cowell, CAI, spoke in opposition to the bill.

05:16 PM -- Walter Lukasic, CAI, spoke in opposition to the bill.

05:20 PM -- Sara Reynolds, Housing Colorado, spoke in support of the bill. She responded to questions from the committee.

05:30 PM -- Christi Craine, Urban Land Conservancy, spoke in support of the bill. She provided a handout to the committee (Attachment J).

150318 AttachJ.pdf150318 AttachJ.pdf

05:34 PM -- Barbara Plungy, representing herself, spoke in opposition to the bill.

05:37 PM -- Chad Otto, representing himself, spoke in opposition to the bill.

05:41 PM -- Kathie Barstner, NAIOP, spoke in support of the bill. She read a letter from another proponent of the bill, Mr. Jordan Cantalamessa (Attachment K).

150318 AttachK.pdf150318 AttachK.pdf

05:45 PM -- Rosalind Larsen, representing herself, spoke in opposition to the bill.

05:48 PM -- Chris Waggett, D 4 Urban and Transit Alliance, spoke in support of the bill. He responded to questions from the committee.

06:12 PM -- Jeff Keorane, representing himself, spoke in opposition to the bill. He responded to questions from the committee.

06:33 PM -- Dave Davia, Colorado Association of Mechanical and Plumbing Contractors and Building Jobs for Colorado, spoke in support of the bill. He responded to questions from the committee.

06:38 PM -- Ed Fronapel, representing himself, spoke in opposition to the bill. He responded to questions from the committee.

06:47 PM -- Mark Trenka, Colorado Association of Realtors, spoke in support of the bill.

06:52 PM -- Bill Short, Attorney at HindmanSanchez, spoke in opposition to the bill. He responded to questions from the committee.

07:00 PM -- Mike Rosser, Colorado Mortgage Brokers, spoke in support of the bill.

07:04 PM -- Suzanne Leff, CAI, spoke in opposition to the bill. She responded to questions from the committee.

07:14 PM -- Mike Maday, Mediation Association of Colorado, spoke in support of the bill. He responded to questions from the committee.

07:17 PM -- Richard Fullerton, Mediation Association of Colorado, spoke in support of the bill.

07:25 PM -- Jesse Witt, representing himself, spoke in opposition to the bill. He responded to questions from the committee.

07:35 PM -- Neval Gupta, Town Square Lofts HOA, spoke in opposition to the bill.

07:39 PM -- Joy Grenesko, representing herself, spoke in support of the bill.

07:48 PM -- Ed Shackelford, Senior Lobby, spoke in opposition to the bill.


07:51 PM

Senator Scheffel requested that Mr. Polk return to the table to respond to the preceding testimony.

07:52 PM -- Dennis Polk, representing himself, responded to comments made in testimony. He responded to questions from Senator Ulibarri and members of the committee.

08:08 PM

Senator Scheffel and Senator Ulibarri made closing comments on the merits of the bill.

BILL:SB15-177
TIME: 08:12:31 PM
MOVED:Holbert
MOTION:Adopt amendment L.017. The motion passed on a vote of 6-2.
SECONDED:
VOTE
Aguilar
No
Baumgardner
Yes
Heath
No
Jahn
Yes
Neville T.
Yes
Newell
Excused
Woods
Yes
Holbert
Yes
Balmer
Yes
YES: 6 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:SB15-177
TIME: 08:14:21 PM
MOVED:Holbert
MOTION:Adopt amendment L.018. The motion passed on a vote of 6-2.
SECONDED:
VOTE
Aguilar
No
Baumgardner
Yes
Heath
No
Jahn
Yes
Neville T.
Yes
Newell
Excused
Woods
Yes
Holbert
Yes
Balmer
Yes
YES: 6 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:SB15-177
TIME: 08:16:36 PM
MOVED:Jahn
MOTION:Adopt amendment L.016. The motion passed on a vote of 6-2.
SECONDED:
VOTE
Aguilar
No
Baumgardner
Yes
Heath
No
Jahn
Yes
Neville T.
Yes
Newell
Excused
Woods
Yes
Holbert
Yes
Balmer
Yes
YES: 6 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:SB15-177
TIME: 08:18:11 PM
MOVED:Jahn
MOTION:Adopt amendment L.019. The motion passed on a vote of 6-2.
SECONDED:
VOTE
Aguilar
No
Baumgardner
Yes
Heath
No
Jahn
Yes
Neville T.
Yes
Newell
Excused
Woods
Yes
Holbert
Yes
Balmer
Yes
YES: 6 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:SB15-177
TIME: 08:20:02 PM
MOVED:Aguilar
MOTION:Adopt amendment L.010 (Attachment L). The motion failed on a vote of 2-6.
SECONDED:
VOTE
Aguilar
Yes
Baumgardner
No
Heath
Yes
Jahn
No
Neville T.
No
Newell
Excused
Woods
No
Holbert
No
Balmer
No
YES: 2 NO: 6 EXC: 1 ABS: 0 FINAL ACTION: FAIL

150318 AttachL.pdf150318 AttachL.pdf

BILL:SB15-177
TIME: 08:27:20 PM
MOVED:Aguilar
MOTION:Adopt amendment L.014 (Attachment M). The motion failed on a vote of 2-6.
SECONDED:
VOTE
Aguilar
Yes
Baumgardner
No
Heath
Yes
Jahn
No
Neville T.
No
Newell
Excused
Woods
No
Holbert
No
Balmer
No
YES: 2 NO: 6 EXC: 1 ABS: 0 FINAL ACTION: FAIL

150318 AttachM.pdf150318 AttachM.pdf

BILL:SB15-177
TIME: 08:33:14 PM
MOVED:Heath
MOTION:Adopt amendment L.012 (Attachment N). The motion failed on a vote of 2-6.
SECONDED:
VOTE
Aguilar
Yes
Baumgardner
No
Heath
Yes
Jahn
No
Neville T.
No
Newell
Excused
Woods
No
Holbert
No
Balmer
No
YES: 2 NO: 6 EXC: 1 ABS: 0 FINAL ACTION: FAIL

150318 AttachN.pdf150318 AttachN.pdf

BILL:SB15-177
TIME: 08:37:03 PM
MOVED:Holbert
MOTION:Refer Senate Bill 15-177, as amended, to the Committee of the Whole. The motion passed on a vote of 6-2.
SECONDED:
VOTE
Aguilar
No
Baumgardner
Yes
Heath
No
Jahn
Yes
Neville T.
Yes
Newell
Excused
Woods
Yes
Holbert
Yes
Balmer
Yes
Final YES: 6 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS




08:47 PM

The committee adjourned.