Senate Committee on Business, Labor and Technology (04/29/2009)

Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON BUSINESS, LABOR AND TECHNOLOGY

Date:	04/29/2009	ATTENDANCE

Time:	03:53 PM to 04:28 PM	Foster	X
		Harvey	X
Place:	SCR 354	Mitchell	*
		Scheffel	E
This Meeting was called to order by		Tochtrop	*
	Senator Veiga	Heath	X
		Veiga	X
This Report was prepared by
	Hillary Smith
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB09-1359		Amended, Referred to the Committee of the Whole

03:54 PM -- House Bill 09-1359

Senator Boyd presented House Bill 09-1359. The bill requires all members of the executive board of a common interest community's unit owners' association (HOA) to receive relevant information related to the HOA's operation. The bill establishes the same standards for election or appointment as a chair of an HOA committee, to which authority may be delegated, as it applies to the election or appointment of members on the executive board. Effective July 1, 2010, each HOA is required to commission a reserve study at least every three years and to identify how it proposes to pay for scheduled repair or replacement of reserve assets. Senator Boyd described the bill and distributed prepared Amendments L.010 and L.011 (Attachments A and B, respectively).

The following individuals testified regarding the bill:

03:58 PM -- David Waller, representing himself, testified in opposition to the bill. He distributed a letter to the members of the committee (Attachment C). Mr. Waller explained his concerns with the bill. Responding to questions from Senator Harvey, he indicated that he did not represent any community association.

04:03 PM -- Jerry Orten, representing the Community Associations Institute (CAI), testified in favor of the bill. He discussed previous legislation pertaining to the rights of HOA members and stated that House Bill 09-1359 relates to the rights of HOA board members. Responding to questions from Senator Heath, Mr. Orten addressed Mr. Waller's testimony. Senator Foster described her experiences with an HOA and asked for clarification regarding conflicts of interest. Mr. Orten replied that conflicts of interest are not addressed in House Bill 09-1359, but were addressed in previous legislation.

04:12 PM -- Peter Minahan, representing homeowners in three different Jefferson County HOAs, testified in favor of the bill. He described negotiations that took place concerning the bill.

04:15 PM -- David Waller returned to the table to address previous testimony. He stated that he is not advocating against transparency, but the bill will not achieve transparency and will allow a minority of board members to thwart the efforts of the majority. Mr. Waller responded to questions from Senator Foster regarding current practices on executive boards. Mr. Waller cited existing codes that obligate board members to provide information to each other and indicated that an enhanced obligation may have unintended consequences. Discussion continued between Senator Foster and Mr. Waller.

04:22 PM -- Jerry Orten returned to the table to address Mr. Waller's testimony. He discussed the "duty of loyalty" code that Mr. Waller had cited and indicated that some members discharge that duty by keeping information to themselves. Mr. Orten said that it would be ideal if government did not have to tell HOAs to be responsible, but the bill is necessary based on current practices. Mr. Orten responded to questions from Senator Tochtrop regarding previous legislation.

04:24 PM

Senator Boyd provided closing remarks and explained the amendments.


BILL:	HB09-1359
TIME:	04:26:22 PM
MOVED:	Harvey
MOTION:	Moved prepared Amendment L.010 (Attachment A). The motion passed without objection.
SECONDED:
		VOTE
	Foster
	Harvey
	Mitchell
	Scheffel	Excused
	Tochtrop
	Heath
	Veiga

Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1359
TIME:	04:26:39 PM
MOVED:	Harvey
MOTION:	Moved prepared Amendment L.011 (Attachment B). The motion passed without objection.
SECONDED:
		VOTE
	Foster
	Harvey
	Mitchell
	Scheffel	Excused
	Tochtrop
	Heath
	Veiga

Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1359
TIME:	04:26:55 PM
MOVED:	Harvey
MOTION:	Moved to refer House Bill 09-1359, as amended, to the Committee of the Whole. The motion passed on a 6-0 roll call vote, with one member excused.
SECONDED:
		VOTE
	Foster	Yes
	Harvey	Yes
	Mitchell	Yes
	Scheffel	Excused
	Tochtrop	Yes
	Heath	Yes
	Veiga	Yes

Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

04:28 PM

The committee adjourned.