Colorado Legislative Action Committee (CLAC)

Minutes-February 19, 2010

Denver Chamber of Commerce

1445 Market Street, Denver, CO

Call to order – 1:32 PM-Chair Gary Debus

Attendance-Members/Delegates:

Guests:

Call to order:  Chair Gary Debus called the meeting to order at 1:32 PM and asked if any member had a conflict of interest with items on the agenda, or in general regarding the other affairs of the LAC, which he or she needs to disclose.  There were no such disclosures.

Introductions: Introductions were omitted as all participants knew one another.

ITEMS OF BUSINESS:  Several items as enumerated on the agenda were discussed:

Lobbyist report: Amy Redfern gave this report.  Amy indicated that the environment at the capitol was quite busy this year.  Amy distributed copies of the current Legislative Matrix.  Several bills were discussed at greater length (CLAC members had been asked to be prepared) and various positions were taken:

SB 93: Lien Rights During Foreclosure-Sen K Lundberg:  Senator Lundberg is pursuing ‘lien assessment’ legislation favored by the Douglas County Public Trustee.  Several groups are indicating their opposition including the Bankers, Public Trustees, Independent Bankers and to some extent Land Title Interests.  The bill will be laid over the entirety of next week.  Some discussion took place.  The CLAC position was to closely monitor the bill and envoys Andrea Bobb, Suzanne Leff and Molly Foley-Healy continue to be designated.  Molly has been doing a great deal of work on the bill.

HB 1290:  Exempting small HOA’s from CCIOA-Rep. A. Stephens: The envoy group had met with Rep. Stephens and the bill is up for hearing next week.  CLAC (Jim Cowell, Lynn Jordan) will testify in opposition to the bill. CLAC had requested a listing of those items that the proponents of the legislation found so burdensome or onerous and the sponsor had indicated that those proponents (largely Leonard Rioth) would furnish those by the end of the week.  Jim Cowell, Kevin Moore and David Graf continue to be the designated envoys.

SB 45: Homeowner Protection Act-Sen. Morse/A Kerr: There was discussion over various aspects of the bill and some other opposition to the bill (the Bar) has emerged.    The CLAC position was to oppose this bill and envoys Jesse Witt, Jerry Orten and Molly Foley-Healy continue to be designated.

HB 1278: Creation of an HOA Ombudsman-Sen. M. Carroll:  There was extensive discussion over this bill and Molly Foley-Healy (part of the envoy group) reported on the results of her research in other states.  It was reported that the rumor is this bill has an $800,000 fiscal note with some opposition among Executive departments.  There was extensive discussion that there were clearly problem HOA’s and managers but doubts were expressed if this was the correct way to solve the problem.   CLAC determined to deliberate this bill and attempt to move this bill for further study into an interim committee while simultaneously expressing concerns over the new tax implications.

HB 1158:-Clarify Wind Rights-Gardner/Hodge: The bill has been Postponed Indefinitely.

HB 1084: Good Samaritan legislation-Rep Acree/Sen Mitchell:  The bill has been Postponed Indefinitely.

HB 1267: Property tax on Solar Generation Facility-Rep. A. Kerr/Sen. Romer:  There was brief discussion on this bill.  The CLAC position was to monitor the bill.

HB 1331: Green Building Incentive Program-Rep. Gerou:  The bill was briefly discussed and the CLAC position was to monitor the bill.

HB 1249: Expedited Residential Foreclosure Sales-Rep. Labuda/Sen. Johnston:  The bill was briefly deliberated and the CLAC position was to support the bill.

HB 1118: -County Commissioner regulation of distressed property-J Kerr/Hudak:  There was brief discussion the bill and a report that the bill had passed third reading. The CLAC position was to continue to monitor the bill.

HB 1133:-Remove Foreclosure consultant-Massey: The bill was briefly discussed.  The CLAC position is to continue to monitor the bill and Walt Lukasik continues to be the monitoring person.

Other proposed/pending legislation:

Construction defect potential legislation:  Senator John Morse and Scott Sullan are leading the effort. The lobbyists will continue to monitor this effort and report any movement.

 Solar panel bill:-Rep. Levy/Williams:  No bill has yet been introduced and the lobbyists will continue to monitor the situation.

Super Lien/First Lien Lenders-update:

Jerry Orten provided an update on this issue.  A group of CAI attorneys had been meeting recently to discuss possible changes to the Super Lien.  The group is expected to meet on Tuesday 2/23 and make any recommendations.

Transfer fee/proposed conveyance fee:  Jerry Orten reported on the potential bill to limit transfer fees on the sales of a property being developed by the RE section of CO Bar.  CLAC (Jerry Orten) has submitted comments and concerns.  It appears somewhat unlikely the bill will be introduced this session.

Other issues:

Real Estate filing fees-HB 1007: Lynn Jordan presented a brief report on this bill which attempts to streamline real estate filing fees.  Gary Tobey and Lynn Jordan continue to be monitors/envoys.

Update on Amicus brief-Fairway Pines:  Jesse Witt made a brief presentation regarding the CLAC participation in an amicus brief in the case of Fairway Pines Estates.  Jesse indicated that four amicus briefs had been filed espousing various positions.  Jesse indicated that the opposing party had asked for permission to submit an expanded answer due to the amicus briefs.  It was uncertain if those submitting the amicus brief would be allowed to argue the briefs.

Division of Insurance-contemplated regulation adoption:  Jerry Orten reported and distributed a handout indicating that the Division of Insurance is contemplating adopting a regulation mandating a charge for O & E reports.  There was some discussion regarding the lack of desirability of such a regulation.  An envoy committee of Jesse Witt, Bob Hoehn and Suzanne Leff was formed to draft a response from CLAC to the Division of Insurance.

Administrative portion- minutes, financials:

Minutes:  It was announced that the minutes, as previously electronically transmitted for the January 29, 2010 meeting were approved by E-vote on 2/1/10 and posted on the websites & entered into the record.  The following corrections were made to these 1/29/10 minutes:

Financial reports:  Lynn Jordan presented a financial report which contained a summary of revenues and expenses and a “profit and loss” statement that depicted the assets, liabilities, deposits in transit and outstanding checks.  There were questions surrounding the actual cash balance and the title and content of one of the statements.  There was concurrence that the ‘profit’ shown should be the cash balance and the fund balance.  CLAC voted to enter the statements into the record.

New business:  There was no other new business.

Next meeting:  The date and time for the next meeting will be Friday, March 19, 2010 @ 1:30 PM, 1445 Market Street, 4^th floor (Denver Chamber of Commerce suite)--(Denver Chamber of Commerce Building).

Other CLAC meetings were announced to take place during the session.

 Adjournment:  There being no further business to come before the committee, Gary Debus adjourned the meeting at 2:54 PM, Friday, February 19, 2010.

ELECTRONIC ACTIONS:  In other electronic procedures, as contemplated by the protocols CLAC took various other actions since the 1/29/10 meeting:

·         On February 4, 2010 the members voted by Email to oppose a draft bill by Rep. Stephens to exempt out small HOA’s from CCIOA (distributed).  An envoy group of David Graf, Kevin Moore and Jim Cowell was designated.

·         On February 8, 2010 a copy of HB 1278 to establish the office of an HOA ombudsman was distributed.  There was electronic discussion and discussion to oppose.  An envoy group of Gary Debus, Chris Pacetti, Kevin Moore and Molly Foley-Healy was designated.

·         On February 17, 2010 the envoy group on SB 10-93 recommended CLAC change its position from ‘monitor’ to ‘actively oppose.’  An electronic vote was taken and the CLAC membership agreed to the change.

·         On February 17, 2010, CLAC members were notified that at the Housing Council meeting, several groups (Independent Bankers, Mortgage Lenders, etc.) instructed their lobbyists to oppose the potential bill (HB 1290) exempting small HOA’s from CCIOA.

·         On February 18, 2010 CLAC members were polled for a position on a potential bill exempting small HOA’s from CCIOA (HB 1290).  The envoy group recommended CLAC oppose the bill and the CLAC membership concurred.

Respectfully submitted,

J. Kevin Moore, Secretary

CLAC MEMBER/DELEGATE ATTENDANCE RECORD:

Attendance Policy:

A LAC delegate who has three consecutive unexcused absences (as determined by the LAC’s officers) from LAC meetings may be removed by a majority vote of the LAC at a meeting where a quorum is present provided the LAC chair notified the delegate and his or her chapter, if applicable, in writing following the delegates second unexcused absence that a third consecutive absence may result in the delegate’s removal.