The House Local Government Committee has just passed an overhauled version of House Bill 11-1124 (“HB 1124”) out of Committee on a 10-1 vote with a favorable recommendation to the full House of Representatives. The version passed by the Committee, known as a strike-below, does not include any of the onerous provisions contained in the original version of HB 1124 as described in our January 22nd blog posting.
Instead, the strike-below contains the following provisions:
●The Responsible Governance Policy (also known as the “SB 100 Policy”) associations are required to have relating to conflicts of interest of board members must include the following:
▬ A definition or description of when a conflict of interest exists;
▬ The procedures the board must follow when a conflict exists including: (1) how the conflict of interest by a board member must be disclosed; (2) to whom the conflict of interest must be disclosed; and (3) whether the board member with the conflict must recuse him or herself from discussing or voting on the issue.
●This Responsible Governance Policy must be periodically reviewed by each association.
In addition to addressing this Responsible Governance Policy, the strike-below also requires individuals running for a position on the board of a special district to disclose whether that individual serves on the board of a homeowner association which is located within the special district.
CAI’s Colorado Legislative Action Committee ("CLAC") supported the strike-below version of HB 1124 which will now move to the full House for consideration. We will keep you updated on the progress of HB 1124 as it proceeds through the legislative process.
In other news, HB 11-1110 ("HB 1110") was passed unanimously and unamended by the Senate Business, Labor & Technology Committee today with a favorable recommendation to the full Senate. As you will recall, this is the bill that that amends the Colorado Nonprofit Corporation Act to extend some governance provisions of CCIOA to “residential nonprofit corporations.” Homeowner associations remain excluded from the definition of “residential nonprofit corporation.”
We will provide you with updates on HB 1110 as it is considered on the floor of the Senate.