Bill Summary for Bill Number SB06-089

Date: 04/11/2006

Final
BILL SUMMARY for SB06-089

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Votes: View-->	Action Taken:
Amend prepared amendment L.026 (Attachment G), pag Prepared amendment L.022 (Attachment A). The moti Prepared amendment L.023 (Attachment F). The moti Prepared amendment L.026 (Attachment G) as amended Prepared amendment L.027 (Attachment D). The moti Refer the bill to the Committee of the Whole. The	Pass Without Objection PASS FAIL PASS PASS PASS

01:37 PM -- Senate Bill 06-089

A strike below the enacting clause amendment to the bill, proposed amendment L.022 (Attachment A), was put on the table for consideration. Representative M. Carroll, bill sponsor explained the provisions of the strike below the enacting clause amendment to SB 06-089, prepared amendment L.022, that make numerous changes to legislation adopted during the 2005 legislative session (S.B. 05-100) regarding homeowner's associations. She reviewed the provisions of prepared amendment L.022 section-by-section.

02:05 PM

Chris Pocetti, Community Association Institute, spoke in support of the bill and explained the process by which interested entities worked to create and come to agreement on the proposed strike below amendment to the bill.

02:06 PM

Bruce Likoff, Holme Roberts & Owen, spoke in support of prepared amendment L.022. He spoke to the unintended consequences of SB 05-100 and to the ways in which SB 06-089 corrects them. He spoke in support of section 7 of the amendment regarding an expansion of the purposes for which "supermajority" votes by homeowner associations could be required. He also spoke to section 12 of the amendment regarding the sale and distribution of association member records.

02:11 PM

Steve Ormiston, Shea Homes, spoke in support of prepared amendment L.022. He spoke in support of section 7 of the amendment to expand the instances in which "supermajority" votes are allowed.

02:13 PM

David Hansen, Village Homes, spoke in support of the amendment. He supported further changes to section 7 of the amendment regarding instances in which "supermajority" votes are allowed.

02:16 PM

Melanie Mills, Colorado Ski Country USA, spoke in support of the amendment. She spoke to the need to amend section 7 of the amendment to allow supermajority votes when mixed-use development phased and declarant-controlled communities are involved.

02:21 PM

Diane Evans, Land Title Guaranty Co., Land Title Association of Colorado, spoke in support of the proposed amendment.

02:23 PM

Richard Fullerton, Colorado Council of Mediators, spoke in support of section 4 of the amendment that provides options to homeowner associations to adopt policies for mediation or arbitration to resolve disputes.

02:25 PM

Matt Haynes, Colorado Council of Mediators, spoke in support of section 4 of the amendment requiring the adoption of mediation or arbitration policies for dispute resolution.

02:26 PM

Saskia Dehring, Hindman Sanchez, P.C., spoke in support of the amendment. She spoke to the provisions of section 7 of the proposed amendment that allow changes to declarations by a "supermajority" vote.

02:28 PM

Fred Skillern, Colorado Bar Association, spoke in support of the amendment. He spoke to the efforts of the stakeholders to come up with the prepared amendment L.022.

02:31 PM

Rebecca Fischer, Colorado Bar Association, spoke in support of the amendment.

02:34 PM

Mary Medley, Colorado Society of Certified Public Accountants, spoke in support of the amendment. She suggested changes to line 10 of page 6 and line 1 of page 10 of proposed amendment L.022 specifying the basis of accounting on which records must be prepared and maintained.

02:36 PM

Jim Burneson spoke in opposition to the amendment (Attachments B and C). He spoke in opposition to the changes proposed by prepared amendment L.022 to SB 05-100 from last legislative session. He spoke to the ways in which the amendment makes life for homeowner associations difficult.

02:41 PM

Bob Moody, National Association of Industrial Office Properties, spoke in support of the bill as amended by L.022 and a proposed amendment to section 7 of the amendment regarding supermajority votes in decisions regarding mixed-use projects.

02:43 PM

Representative Stengel explained that proposed amendment L.027 (Attachment D) will amend into prepared amendment L.022 the provisions of SB 06-185 (the next bill on the calendar regarding an exception to selected requirements for small homeowner associations).

02:43 PM

Jan Doran, Council Of Neighbors and Organizations (CONO), spoke in support of prepared amendment L.027 that except new small and small homeowner associations from the bill's provisions. In response to a committee question, Mr. Doran explained that the basis on which the exception is made is for homeowner associations with a maximum of $250,000 in annual assessments.

02:50 PM

Charlie Pugh, CONO, spoke in support of prepared amendment L.027 to except small homeowner associations from the provisions of the proposed amendment. He spoke to the ways in which the provisions of current law and the proposed amendment are onerous on small homeowner associations that are staffed by volunteers. In response to a committee question, Mr. Pugh explained how difficult it is for volunteer boards and staffs meet the requirements of current law.

02:54 PM

Leonard Rioth, spoke in support of prepared amendment L.027 (Attachment E). Mr. Rioth indicated that unless some of the problems are addressed, small homeowner associations will cease to exist. In addition, he addressed prior testimony that such a carve-out for small associations violate equal protection provisions saying such carve-outs already exist under Colorado law.

02:56 PM

Patricia Webb spoke in support of prepared amendment L.027. She indicated she has a contract with her homeowner's association to perform some required administrative duties because she was unable to continue to do so on a volunteer basis. She indicated her homeowner association will have $18,000 in revenue at an assessment of about $30 per each of the 500 members. She indicated she likes the changes L.022 make but that they will be onerous on small homeowner associations.


BILL:	SB06-089
TIME:	02:59:36 PM
MOVED:	Cerbo
MOTION:	Prepared amendment L.022 (Attachment A). The motion carried on a 10-1 roll call vote. (See subsequent votes for amendments to L.022.)
SECONDED:	Soper
		VOTE
	Berens	Yes
	Cerbo	Yes
	Curry	Yes
	Decker	No
	Massey	Yes
	Merrifield	Yes
	Soper	Yes
	Stafford	Yes
	Stengel	Yes
	Lindstrom	Yes
	Hodge	Yes
Not Final YES: 10 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	SB06-089
TIME:	03:00:53 PM
MOVED:	Massey
MOTION:	Prepared amendment L.023 (Attachment F). The motion failed on a 5-6 roll call vote.
SECONDED:	Stafford
		VOTE
	Berens	No
	Cerbo	No
	Curry	No
	Decker	No
	Massey	Yes
	Merrifield	No
	Soper	No
	Stafford	Yes
	Stengel	Yes
	Lindstrom	Yes
	Hodge	Yes
Not Final YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL

Representative Carroll spoke in opposition to the prepared amendment and explained her opposition and her attempts to address the concerns of the proponents of the amendment.


BILL:	SB06-089
TIME:	03:15:26 PM
MOVED:	Stengel
MOTION:	Prepared amendment L.027 (Attachment D). The motion carried on a 7-4 roll call vote.
SECONDED:	Stafford
		VOTE
	Berens	No
	Cerbo	No
	Curry	Yes
	Decker	No
	Massey	Yes
	Merrifield	Yes
	Soper	Yes
	Stafford	Yes
	Stengel	Yes
	Lindstrom	Yes
	Hodge	No
Not Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	SB06-089
TIME:	03:17:49 PM
MOVED:	Stengel
MOTION:	Prepared amendment L.026 (Attachment G) as amended. The motion carried on a 8-3 roll call vote.
SECONDED:	Stafford
		VOTE
	Berens	No
	Cerbo	Yes
	Curry	Yes
	Decker	No
	Massey	Yes
	Merrifield	Yes
	Soper	No
	Stafford	Yes
	Stengel	Yes
	Lindstrom	Yes
	Hodge	Yes
Not Final YES: 8 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	SB06-089
TIME:	03:18:52 PM
MOVED:	Lindstrom
MOTION:	Amend prepared amendment L.026 (Attachment G), page 1 line 2, strike "BUT" and substitute "OR". The motion carried without objection.
SECONDED:	Cerbo
		VOTE
	Berens
	Cerbo
	Curry
	Decker
	Massey
	Merrifield
	Soper
	Stafford
	Stengel
	Lindstrom
	Hodge
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB06-089
TIME:	03:19:47 PM
MOVED:	Soper
MOTION:	Refer the bill to the Committee of the Whole. The motion carried on a 9-2 roll call vote.
SECONDED:	Berens
		VOTE
	Berens	Yes
	Cerbo	Yes
	Curry	Yes
	Decker	No
	Massey	No
	Merrifield	Yes
	Soper	Yes
	Stafford	Yes
	Stengel	Yes
	Lindstrom	Yes
	Hodge	Yes
Final YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS