NOTE: The governor signed this measure on 3/22/2012.
      
      
      SENATE BILL 12-024
      
      
      BY SENATOR(S) Harvey;
      also REPRESENTATIVE(S) Holbert, Todd, Williams A.
      
      
      Concerning the obligations of a residential nonprofit
           corporation to its residential members, and, in connection
           therewith, clarifying open meeting provisions and limiting
           the conditions under which the corporation must refund
           moneys paid by a residential member.
      
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  In Colorado Revised Statutes, 7-126-304, amend (1)
      as follows:
      
           7-126-304.  Residential membership - return of consideration -
      cessation of periodic payments - time limits - effective date.
      (1)  Notwithstanding any provision of the articles of incorporation or
      bylaws to the contrary:
      
           (a) (I)  A residential nonprofit corporation shall refund the entrance
      fee of a residential member to the member or his or her heirs within ninety
      days after the member's resignation, termination, expulsion, or suspension
      from the corporation or the a transfer of the residential membership.
      
           (II) (A)  This paragraph (a) applies only to contracts entered into on
      or after March 11, 2011.
      
           (B)  This subparagraph (II) is repealed, effective April 1, 2012.
      
           (b)  If the membership of a residential member is terminated due to
      the member's death or for any other reason beyond the member's control, the
      member or his or her heirs are not liable for any periodic payments coming
      due more than thirty days after the effective date of the termination.
      
           SECTION 2.  In Colorado Revised Statutes, 7-128-203, amend (3)
      (a) (I) as follows:
      
           7-128-203.  Notice of meeting - rights of residential members.
      (3)  Notwithstanding subsections (1) and (2) of this section, and
      notwithstanding any provision of the articles of incorporation or bylaws to
      the contrary, the following rules and procedures apply to meetings of the
      board of directors of a residential nonprofit corporation or any committee
      of the board:
      
           (a) (I) (A)  All regular and special meetings of the residential
      nonprofit corporation's board of directors or executive committee, or any
      committee of the board that is authorized to take final action on the
      board's behalf, must be open to attendance by all residential members or
      their representatives. The board shall make agendas for meetings of the
      board, and agendas for meetings of committees of the board that
      are authorized to take final action on the board's behalf,
      reasonably available for examination in advance by all residential
      members or their representatives. If there is no formal agenda,
      residential members or their representatives are nonetheless
      entitled to a general description of the purpose of the meeting and
      the subject matter that will be discussed.
      
           (B)  The board shall inform all members, at least annually,
      of the method by which meeting agendas and other information
      required by sub-subparagraph (A) of this subparagraph (I) will be
      provided, including the physical location of places where agendas
      and meeting notices may be posted or the web address where
      on-line postings may be made. The board shall give at least thirty
      days' advance notice of any change in the manner or means by
      which meeting information will be provided.
      
           SECTION 3.  Applicability. The provisions of this act apply to
      resignations, terminations, expulsions, and suspensions from residential
      nonprofit corporations occurring on or after the effective date of this act and
      to committee meetings occurring on or after the effective date of this act.
      
           SECTION 4.  Safety clause. The general assembly hereby finds,
      determines, and declares that this act is necessary for the immediate
      preservation of the public peace, health, and safety.
      
      
      
      
      ____________________________  ____________________________
      Brandon C. Shaffer                      Frank McNulty
      PRESIDENT OF                     SPEAKER OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
      
      
      ____________________________  ____________________________
      Cindi L. Markwell                      Marilyn Eddins
      SECRETARY OF                 CHIEF CLERK OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO