House Committee on State, Veterans, & Military Affairs (04/22/2015)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON STATE, VETERANS, & MILITARY AFFAIRS

Date:	04/22/2015	ATTENDANCE

Time:	11:15 AM to 01:30 PM	Foote	X
		Humphrey	X
Place:	LSB A	Lontine	X
		Neville P.	X
This Meeting was called to order by		Primavera	X
	Representative Ryden	Tate	X
		Thurlow	X
This Report was prepared by		Tyler	X
	Jessika Shipley	Willett	X
		Salazar	X
		Ryden	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB15-227 SB15-091 SB15-227 HB15-1354		Referred to Finance Postponed Indefinitely Referred to Finance Witness Testimony and/or Committee Discussion Only

11:15 AM -- SB15-227

Representatives Melton and Van Winkle, co-sponsors, presented Senate Bill 15-227. This reengrossed bill permits one residential storage condominium unit per residence to qualify as a residential improvement for the purposes of property taxation. A residential storage condominium unit is qualified for treatment as a residential improvement under the bill if:

• the unit is part of a common interest community;

• the unit is more than 400 square feet in size, or any size if the unit is part of the same

common interest community as the owner's residence;

• items from or related to the owner's residence are stored in the unit, and items related

to a business are not stored in the unit; and

• by March 1 of each tax year in which status as a residential improvement is sought, the

owner submits proof of ownership and an affidavit of intended use to the county assessor,

stating that the property meets the definition of a residential storage condominium unit.

The owner must comply with all requirements and seek classification as a residential storage condominium unit for each property tax year that property tax treatment under the bill is sought. The assessor may inspect a property to confirm its qualifications as a residential storage condominium unit. An owner is required to notify the assessor any time his or her property no longer meets the definition of a residential storage condominium unit or the property is transferred to a new owner.

The Division of Property Taxation (DPT) in the Department of Local Affairs (DOLA) is responsible for developing a form for the affidavit of intended use and related standards to be used by assessors.

Representative Melton responded to questions from the committee about the fiscal note.

11:24 AM -- Alex Schatz, representing Legislative Council Staff, came to the table to respond to questions about the fiscal note.

11:35 AM -- Donald Rosier, representing Jefferson County, testified in support of the bill. Mr. Rosier spoke about the storage needs of Jefferson County residents, especially those who are senior citizens. He discussed the potential for more development of residential storage condominiums if the bill is enacted. He responded to questions from the committee.

11:45 AM

Discussion about the fiscal impact of the bill continued with Mr. Rosier.

11:51 AM -- Glenn McWilliams and Mike Ard, representing the residential storage industry in Colorado, testified in support of the bill. Mr. McWilliams spoke about the number of large-format storage units in Colorado. He discussed the common uses of such units and the affidavit required by the bill. He expressed his opinion that the bill will result in significant development of the units. He commented that this is an issue of fairness. He responded to questions from the committee about future growth in the sales industry. Mr. Ard responded to questions about these types of units and homeowners' associations. Mr. McWilliams spoke about the rental storage industry.

12:03 PM

The committee continued to discuss the bill with Mr. McWilliams and Mr. Ard.

12:05 PM -- Gini Pingenot, representing Colorado Counties, Inc., testified in opposition to the bill. Ms. Pingenot indicated that the main reasons for county commissioners opposing the bill is the impact to local property tax revenues. She also expressed concern about the potential for setting a precedent and the increased workload for county assessors.

12:09 PM

Representatives Melton and Van Winkle wrapped up their presentation of the bill and asked for a favorable recommendation. The committee took a brief recess.

12:13 PM -- SB15-091

The committee returned to order. Representative Willett, sponsor, presented Senate Bill 15-091. The reengrossed bill reduces from eight years to six years the statute of repose for construction professionals in Colorado. The statute of repose is the maximum period for a legal action against any construction professional (architect, contractor, builder, builder vendor, engineer, or inspector) performing or furnishing the design, planning, supervision, inspection, construction, or observation of construction of any improvement to real property. For construction professionals involved in any of the outlined processes related to single-family home construction, the statute of repose is five years, unless the cause for legal action arises in the fourth or fifth year after substantial completion of the improvement, in which case the legal action may be brought in the sixth year.

12:18 PM

Representative Willett responded to questions from the committee about the practical effect of the bill.

12:19 PM -- Jeff Ruebel, representing the Colorado Civil Justice League, testified in support of the bill. Mr. Ruebel spoke about the current statute of repose and the time it takes to discover construction defects. He discussed the limitations of the bill and commented that it is narrowly tailored to address the problems associated with construction defects. He responded to questions from the committee about other states with a similarly low statute of repose.

12:26 PM -- Jesse Witt, representing the Community Associations Institute, testified in opposition to the bill. Mr. Witt expressed his opinion that the bill hurts homeowners. He indicated that the bill does not address deferred maintenance and that in order to prove a construction defect claim, a plaintiff must prove negligence. He stated that shortening timelines encourages litigation. Mr. Witt responded to questions from the committee.

12:33 PM -- Liberty Lewis, representing herself, testified in opposition to the bill. Ms. Lewis spoke about the potential decrease of the statute of limitations to one year. She discussed how forensic engineers determine how structural damage occurs. She responded to questions from the committee.

12:40 PM -- Loel and Merla Sirovy, representing themselves, testified in opposition to the bill. Mr. Sirovy discussed his personal experience with construction defects as a homeowner. He expressed his opinion that homeowners need as much time as possible to discover defective construction. They responded to questions from the committee about their situation.

12:48 PM

Representative Willett wrapped up his presentation of the bill and asked for a favorable recommendation.


BILL:	SB15-091
TIME:	12:51:00 PM
MOVED:	Willett
MOTION:	Refer Senate Bill 15-091 to the Committee of the Whole. The motion failed on a vote of 5-6.
SECONDED:	Humphrey
		VOTE
	Foote	No
	Humphrey	Yes
	Lontine	No
	Neville P.	Yes
	Primavera	No
	Tate	Yes
	Thurlow	Yes
	Tyler	No
	Willett	Yes
	Salazar	No
	Ryden	No

YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	SB15-091
TIME:	12:52:58 PM
MOVED:	Salazar
MOTION:	Postpone Senate Bill 15-091 indefinitely. The motion passed on a vote of 6-5.
SECONDED:	Foote
		VOTE
	Foote	Yes
	Humphrey	No
	Lontine	Yes
	Neville P.	No
	Primavera	Yes
	Tate	No
	Thurlow	No
	Tyler	Yes
	Willett	No
	Salazar	Yes
	Ryden	Yes

Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

12:53 PM -- SB15-227

The committee returned to the matter of SB 15-227.


BILL:	SB15-227
TIME:	12:54:05 PM
MOVED:	Salazar
MOTION:	Refer Senate Bill 15-227 to the Committee on Finance. The motion passed on a vote of 8-3.
SECONDED:	Neville P.
		VOTE
	Foote	No
	Humphrey	Yes
	Lontine	No
	Neville P.	Yes
	Primavera	Yes
	Tate	Yes
	Thurlow	Yes
	Tyler	No
	Willett	Yes
	Salazar	Yes
	Ryden	Yes

Final YES: 8 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS

12:55 PM -- HB15-1354

Representative Moreno, prime sponsor, presented House Bill 15-1354. The bill makes numerous changes concerning voters and political parties in primary elections. The bill permits an unaffiliated elector to vote in the primary election of a major political party without affiliating with that political party. An unaffiliated eligible elector may, but is not required to, declare a political party affiliation when an elector wishes to vote in a primary election. The bill requires that all political parties in the primary election place their candidates on a single combined ballot to be used by unaffiliated electors that contains the names of all candidates from all political parties. Names and political affiliations of candidates must be clearly and conspicuously segregated. The bill also permits a political party to change from the nomination of candidates by primary election to the nomination of candidates by convention for all offices. The bill also permits a minor political party to prohibit unaffiliated voters from voting in the party's primary election. A minor political party must inform the Secretary of State of the prohibition prior to the primary election.

The bill requires the notice mailed to voters in advance of a mail ballot primary election to advise eligible electors who are not affiliated with a political party of their ability to vote in the primary election of any one political party. The bill also allows for the cancellation of a party primary election if there are no contested races on the ballot.

01:00 PM

Representative Moreno distributed and discussed amendment L.001 (Attachment A). He responded to questions from the committee.

15HouseState0422AttachA.pdf

01:16 PM -- Anne Wilseck, representing the Colorado Democratic Party, testified in opposition to the bill. Ms. Wilseck expressed her opinion that political parties serve a crucial role in the democratic process. She indicated that the bill would weaken the parties. She stated that the bill is unnecessary because temporary affiliation is simple and easy to undo.

01:20 PM -- Charles Ward, representing the Denver Metro Chamber of Commerce, testified in support of the bill. Mr. Ward read the written statement of Kelly Brough (Attachment B). He responded to questions from the committee. He also distributed the testimony of Tom Clark (Attachment C).

15HouseState0422AttachB.pdf

15HouseState0422AttachC.pdf

01:28 PM -- Michael Karlik, representing himself, testified in support of the bill. Mr. Karlik expressed his opinion that the election system should serve the people, not the parties.

01:30 PM

The chair announced that the bill would be laid over for action only. The committee adjourned.