On February 9th, House Bill 11-1110 (“HB 1110”) was passed by the Colorado House of Representatives and was referred to the Senate where it has been assigned to the Senate Committee on Business, Technology and Labor. HB 1110 is currently scheduled to be heard by the Senate Committee on Monday.
As we noted in our February 9th blog posting, HB 1110 was introduced by Representative Cindy Acree and amends the Colorado Revised Nonprofit Corporation Act to apply some governance provisions of the Colorado Common Interest Ownership Act (“CCIOA”) to “residential nonprofit corporations.” In particular, these provisions of CCIOA will apply to independent senior living facilities which are organized as nonprofit corporations.
Community associations were excluded from the definition of “residential nonprofit corporation” in the version of the HB 1110 passed by the House. We are monitoring this legislation to ensure the exclusion remains in the bill.
On January 21, 2011, House Bill 11-1124 (“HB 1124”) was introduced in the Colorado House of Representatives by Representative Angela Williams. As described in our January 21st blog entry, HB 1124, as originally introduced, amended CCIOA to address conflicts of interest of individuals serving on HOA boards with potentially severe results. In addition, the bill would have prohibited an individual serving on a metropolitan district board to concurrently serve on the board of an HOA which is located within the metropolitan district.
CAI’s Colorado Legislative Action Committee (“CLAC”) has worked with Representative Williams and other stakeholders to address significant concerns with the original version of HB 1124. As a result, we are expecting that a complete rewrite of the bill will be considered Monday in the House Committee on Local Government. This “strike-below” version of HB 1124 is expected to address responsible and transparent governance practices without leading to draconian results.
We will provide you with an update on HB 1110 and HB 1124 following the hearings on Monday.