December 14, 2017

Colorado Supreme Court: CCIOA Permits Developer to Retain Right of Consent to Declaration Amendments

The Colorado Supreme Court issued its opinion in Vallagio at Inverness Residential Condominium Association, Inc. v. Metropolitan Homes, Inc. on Monday, June 5, 2017.

Colorado Common Interest Ownership Act—Declaration Amendments—Arbitration Agreements—Colorado Consumer Protection Act Claims.

This case concerned whether (1) the Colorado Common Interest Ownership Act, C.R.S. §§ 38-33.3-101 to -402, permits a developer–declarant to retain a right of consent to amendments to a provision of a common interest community’s declaration mandating arbitration of construction defect claims, and (2) the Colorado Consumer Protection Act, C.R.S. §§ 6-1-101 to -1121, precludes arbitration of claims asserted pursuant to that Act. Answering the first question in the affirmative and the second in the negative, the supreme court affirmed the court of appeals’ judgment requiring arbitration of the claims at issue and remanded the case for further proceedings consistent with this opinion.

Summary provided courtesy of The Colorado Lawyer.

Colorado Court of Appeals: Condominium Association Failed to Satisfy Statutory Requirements to Amend Declaration

The Colorado Court of Appeals issued its opinion in Tyra Summit Condominiums II Association, Inc. v. Clancy on Thursday, May 18, 2017.

Colorado Common Interest Ownership Act—Amendment of Declaration—Notice Requirement.

The Clancys (owners) own a condominium unit at the Tyra Summit Condominiums II (Tyra II). Tyra II is administered by the Tyra Summit Condominiums II Association, Inc.. The Association is run by a Board of Managers. The Association was established by a declaration recorded in 1983 and subsequent amendments. In 2016, the Association sought judicial approval of its attempt to amend the Declaration, which effectively rewrote the 1983 Declaration.

The owners objected to the amendment, arguing that the Association failed to meet certain statutory requirements and that the amendment improperly changed their allocated interests. The district court approved the amendment.

On appeal, the owners asserted that the district court erred in approving the amendment because the Association failed to provide sufficient notice of the meeting at which the amendment was discussed. The Colorado Common Interest Ownership Act requires associations to discuss proposed amendments during at least one meeting of the association and contains specific notice requirements. The court of appeals found that the record did not support the court’s finding that adequate notice of the meeting where the proposed amendment was discussed was given to the owners.

As the prevailing party on appeal, the owners were entitled to their attorney fees pursuant to the Act.

The order was reversed and the case was remanded.

Summary provided courtesy of The Colorado Lawyer.

Colorado Supreme Court: Purported Annexation Failed to Comply with Colorado Common Interest Ownership Act

The Colorado Supreme Court issued its opinion in Ryan Ranch Community Association, Inc. v. Kelley on Monday, September 26, 2016.

Colorado Common Interest Ownership Act—Creation, Alteration, and Termination of Common Interest Communities.

The Colorado Supreme Court considered whether a developer annexed several lots into a common interest community such that the lot owners would owe assessments to the community’s homeowners association. The court concluded that the lots were not annexed because the purported annexation failed to comply with the Colorado Common Interest Ownership Act, C.R.S. §§ 38-33.3-101 to -402. The lot owners therefore were not liable for the association’s assessments.

Summary provided courtesy of The Colorado Lawyer.

Bills Limiting Foreclosure Finder’s Fee, Clarifying Documentary Recording Fees, and More Signed by Governor

On Friday, April 15, 2016, Governor Hickenlooper signed 15 bills into law. To date, he has signed 117 bills this legislative session. Some of the bills signed Friday include a bill reducing finder’s fees for public trustee foreclosures, a bill treating sexual trafficking of a child as child abuse for dependency and neglect cases, a bill clarifying how to calculate filing fees for recording grants or conveyances of real property, and more. The bills signed Friday are summarized here.

  • HB 16-1011 – Concerning the Removal of Restrictions on the Authority of a Board of a Metropolitan District to Provide Activities in Support of Business Development Within the District, by Rep. Ed Vigil and Sens. Leroy Garcia & Kevin Grantham. The bill removes the specified minimum valuation of commercial property for which a board of a metropolitan district can provide activities in support of business recruitment, management, and development.
  • HB 16-1066 – Concerning an Habitual Domestic Violence Offender, by Rep. Kit Roupe and Sen. Linda Newell. Currently, a judge must make a finding of fact regarding whether a defendant is a habitual domestic violence offender. The bill specifies that the trier of fact (judge or jury) may determine habitual status.
  • HB 16-1073 – Concerning the Qualifications of Licensed Electricians, by Reps. Crisanta Duran & Brian DelGrosso and Sens. Lucia Guzman & Mark Scheffel. The bill creates new renewal requirements for people seeking to renew licenses as master electricians, journeyman electricians, or residential wiremen. Renewal applicants will be required to complete 24 hours of continuing education rather than passing a competency evaluation.
  • HB 16-1090 – Concerning the Conditions Under Which a Person May Assist Another for Compensation in Obtaining the Proceeds of a Foreclosure Sale After All Liens Have Been Satisfied, by Rep. Beth McCann and Sen. Cheri Jahn. The bill limits the premium, or finder’s fee, that a person may charge for offering assistance in recovering the balance of the purchase price of a foreclosed property after all liens and claims against the property have been satisfied.
  • HB 16-1098 – Concerning Updates to Provisions Relating to School Discipline Reporting, by Rep. Polly Lawrence and Sen. Linda Newell. The bill modifies school discipline reporting requirements, requiring that agencies of the Judicial Department make information regarding expunged juvenile delinquency proceedings available to the Division of Criminal Justice, specifies that the attorney general’s requirement to report names of students given criminal citations or diversion is exempt from statutes prohibiting dissemination of confidential information, and allows aggregation of data about incidents involving law enforcement on school property.
  • HB 16-1103 – Concerning Clarifying License Pathways for the Mental Health Professional Workforce, by Reps. Tracy Kraft-Tharp & Lois Landgraf and Sens. Beth Martinez Humenik & Nancy Todd. The bill specifies that candidates seeking licensure as mental health professionals may, but are not required to, register with the database of registered psychotherapists after completing their degree.
  • HB 16-1106 – Concerning the Authority of a County to Designate Public Roads as a Section of a Pioneer Trail, by Rep. Jim Wilson and Sens. Kevin Grantham & Leroy Garcia. The bill allows a board of county commissioners to designate by resolution any public roads in the county as a pioneer trail, with certain conditions.
  • HB 16-1145 – Concerning the Determination of the Documentary Fee Imposed for Recording a Grant or Conveyance of Residential Real Property, by Rep. Steve Lebsock and Sen. Jack Tate. The bill clarifies that the filing fee for a residential real property conveyance is calculated based on the total sales price, as listed on the conveyance document, and if there is no sales price listed or the amount is less than $500, the documentary fee is calculated based on the total sales price listed on the declaration form.
  • HB 16-1149 – Concerning a Requirement that the Executive Board of a Common Interest Community Created in Colorado Before July 1, 1992, Comply with the Budget Reporting Provision of the “Colorado Common Interest Ownership Act”, by Rep. Jovan Melton and Sen. Linda Newell. Currently, common interest communities established before July 1, 1992 are exempt from certain reporting requirements. The bill removes the exemption.
  • HB 16-1170 – Concerning the Continuation of the Division of Racing Events in the Department of Revenue, and, in Connection Therewith, Implementing Recommendation 1 of the 2015 Sunset Report of the Department of Regulatory Agencies, by Reps. Ed Vigil & Don Coram and Sens. Jerry Sonnenberg & Leroy Garcia. The bill extends the sunset of the Division of Racing Events and the Colorado Racing Commission until September 1, 2023.
  • HB 16-1189 – Concerning the Regulation of Bingo-Raffle Licenses, by Rep. Cole Wist and Sen. Ellen Roberts. The bill makes changes to the Secretary of State’s regulation of bingo-raffle licenses. Specifically, the bill allows people whose license was denied to appeal to an ALJ within 60 days, clarifies when consolation prizes must be reported, and removes a restriction on the number of games a person can be a game manager for.
  • HB 16-1224 – Concerning Child Abuse Involving Human Trafficking of Minors, by Rep. Paul Lundeen and Sen. Laura Woods. The bill adds human trafficking of a minor for sexual servitude or commercial sexual exploitation to the definition of child abuse for purposes of dependency and neglect. The bill also requires county departments of human services to immediately offer services to children who are victims of human trafficking when appropriate and to file petitions in juvenile court on the child’s behalf.
  • HB 16-1236 – Concerning Continuation of the Infection Control Advisory Committee, by Rep. Dianne Primavera and Sen. Larry Crowder. The bill extends the sunset of the Infection Control Advisory Committee until July 1, 2021.
  • SB 16-013 – Concerning Statutory Changes Related to the Office of the Child Protection Ombudsman, by Sen. Linda Newell & Rep. Jonathan Singer. The bill makes several statutory changes regarding the Office of the Child Protection Ombudsman, including clarifying its board’s advisory nature, clarifying certain duties and the relationship between the office and the Judicial Department, and removing an audit requirement.
  • SB 16-125 – Concerning the Governance of Credit Unions, and, in Connection Therewith, Authorizing the Appointment of an Audit Committee in Lieu of a Supervisory Committee and Allowing the Reasonable Compensation of a Director for His or Her Service to the Credit Union, by Sen. Chris Holbert and Rep. Tracy Kraft-Tharp. The bill allows the board of directors of a credit union to appoint an audit committee in lieu of a supervisory committee.

For all of Governor Hickenlooper’s 2016 legislative decisions, click here.

Small Common Interest Community Exemption and Electronic Public Trustee Foreclosure Bills Signed

On Tuesday, April 21, 2015, Governor Hickenlooper signed two bills into law. He has signed 138 bills to date this legislative session. The two bills signed Tuesday are:

  • HB 15-1095 – Concerning the Extension of an Exemption Under the “Colorado Common Interest Ownership Act” for Certain Small Common-Interest Communities to Include Communities Created Before July 1, 1992, Whose Declarations Limit Their Annual Common Expense Liability to No More than Three Hundred Dollars, by Rep. Terri Carver and Sen. Kevin Lundberg. The bill provides an exemption from certain provisions of the CCIOA for HOAs whose annual expenditures are less than $300 as established by bylaws or declarations.
  • HB 15-1142 – Concerning the Conduct of Foreclosure Sales by a Public Trustee, and, in Connection Therewith, Authorizing the Conduct of Foreclosure Sales Through the Internet and Other Electronic Media and Authorizing the Collection of Fees Through Electronic Transfer, by Rep. Beth McCann and Sen. Lucia Guzman. The bill allows public trustees or sheriffs to conduct foreclosure sales electronically and establishes procedures for electronic sales.

For a complete list of Governor Hickenlooper’s 2015 legislative decisions, click here.

SB 14-140: Requiring HOAs to be Subject to Entire Colorado Common Interest Community Act in Order to Foreclose Lien for Assessments

On Monday, January 27, 2014, Sen. Owen Hill introduced SB 14-140 – Concerning a Prohibition on the Exercise of Lien Rights Under the “Colorado Common Interest Ownership Act” by Unit Owners’ Associations that Do Not Elect to be Covered by the Entire Act. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

The bill requires that, in order to establish or foreclose a lien for assessments, a homeowners’ association must be subject to the entire “Colorado Common Interest Ownership Act.”

On Feb. 17, the State, Veterans, & Military Affairs Committee heard testimony and considered the bill for committee discussion only; the bill will be put back on the calendar for action in the near future.

Since this summary, the State, Veterans, & Military Affairs Committee postponed the bill indefinitely.

Bills Regarding Job Protection, Authorization for Foreign Investments, Electric Vehicle Charging Stations, and More Signed by Governor Hickenlooper

As the 2013 legislative session winds down, bills continue to reach Governor Hickenlooper’s desk for review and signature. Since January 31, 2013, the governor has signed 169 bills.

Governor Hickenlooper signed the “Job Protection and Civil Rights Enforcement Act,” HB 13-1136, on Monday, May 6, 2013. HB 13-1136 – Concerning the Creation of Remedies in Employment Discrimination Cases Brought Under State Law, by Reps. Claire Levy and Joe Salazar and Sens. Morgan Carroll and Lucia Guzman, establishes provisions for complaining parties who have exhausted administrative remedies to bring actions in state court. It also allows claims to be brought by employees of companies with fewer than 15 employees, which are exempt under Federal anti-discrimination provisions.

On May 5, the governor signed one bill, SB 13-176 – Concerning Authorization for the State Treasurer to Invest State Moneys in Debt Obligations Backed By the Full Faith and Credit of the State of Israel. This bill was sponsored by Sens. Mark Scheffel and Morgan Carroll and Reps. Justin Everett and Angela Williams, and it authorizes the state treasurer to invest state moneys in Israeli bonds.

The governor signed 10 bills on Friday, May 3, 2013. Three of the ten bills signed are summarized here.

  • SB 13-126 – Concerning the Removal of Unreasonable Restrictions on the Ability of the Owner of an Electric Vehicle to Access Charging Facilities, by Sen. Lucia Guzman and Rep. Crisanta Duran. The bill requires landlords and common interest communities to allow unit owners to install electric vehicle charging stations on their own property.
  • HB 13-1167 – Concerning the Collection of Business Information by the Secretary of State, by Reps. Brittany Pettersen and Crisanta Duran and Sen. Larry Crowder. The bill requires the Secretary of State to request certain demographic information from business owners, which will be available to the public on the Secretary of State website. The demographic information includes gender, race, veteran status, disability status, and NAICS code, and submission of the information is voluntary.
  • HB 13-1222 – Concerning the Expansion of the Group of Family Members for whom Colorado Employees are Entitled to Take Leave from Work under the “Family and Medical Leave Act of 1993″, by Rep. Cherylin Peniston and Sen. Jessie Ulibarri. The bill allows employees to take leave under FMLA to care for their partners in civil unions.

On April 29, 2013, the governor signed six bills. These included the long appropriations bill, three Joint Budget Committee bills regarding the General Fund, and a bill to allow students who complete high school in Colorado to qualify for in-state tuition classification (SB 13-033Concerning In-State Classification at Institutions of Higher Education for Students who Complete High School in Colorado, by Sens. Angela Giron and Mike Johnston and Reps. Crisanta Duran and Angela Williams.) Governor Hickenlooper also signed the budget bill, SB 13-230, on April 29.

On April 26, 2013, Governor Hickenlooper signed 16 bills. Five of these are summarized here.

  • HB 13-1025 Concerning an Increase in the Amount of the Authorized Deductible for Workers’ Compensation Insurance Policies, by Rep. Spencer Swalm and Sen. Cheri Jahn. The bill increases the allowable deductible for employers’ workers’ compensation insurance policies.
  • HB 13-1123 – Concerning the Right of a Person to Waive Confidentiality Requirements Protecting Personal Work Information Obtained by the Department of Labor and Employment for Unemployment Benefit Claims to Permit the Department to Forward Certain Information to Potential Employers, by Rep. Tony Exum and Sen. Jim Kerr. The bill allows the Department of Labor and Employment to offer job seekers the opportunity to waive confidentiality so that their personal information may be made available to bona fide employers seeking employees.
  • HB 13-1258 – Concerning Local Government Involvement with Federal Immigration Issues, by Rep. Joe Salazar and Sens. Irene Aguilar and Morgan Carroll. The bill repeals C.R.S. Title 29, Article 29, which required local law enforcement officers to report any suspected illegal immigrants to federal immigration officials.
  • SB 13-048 – Concerning the Use of Highway User Tax Fund Moneys Allocated to Local Governments for Multimodal Transportation Infrastructure, by Sen. Nancy Todd and Reps. Max Tyler and Jeanne Labuda. The bill allows counties and municipalities to spend moneys received from the Highway User Tax Fund on transit-related projects.
  • SB 13-070 – Concerning the Purchase of Vehicles that Operate on Alternative Fuels for the State Motor Vehicle Fleet System, by Sen. Gail Schwartz and Reps. Ray Scott and Max Tyler. The bill requires the Department of Personnel and Administration to report on the number of alternative fuel vehicles purchased, the use of alternative fuel, and a plan to develop the infrastructure necessary to utilize more alternative fuel vehicles.

For a complete list of legislation signed into law by the governor in 2013, click here.

e-Legislative Report, 5/6/13

CBA Director of Legislative Relations Michael Valdez issued his weekly e-Legislative Report on May 6, 2013. In this edition, he gives a day-by-day report of what happened at the legislature during the week of April 29. He also summarizes a few more late bills of interest, and notes that the CBA Legislative Policy Committee did not meet on May 3.

At the Capitol

Boxscores

Monday, April 29

  • The House adopted the conference committee report for HB 13-1058. Concerning guidelines for the determination of spousal maintenance (advisory guideline formula to determine spousal maintenance). The adoption of the conference committee report signals the end of the legislative journey for the bill; the bill now heads to Gov. John Hickenlooper for action. The final Senate version of the bill is what the Governor will see when the bill gets to his desk.
  • The House adopted the conference committee report for HB 13-1204. Concerning the “Uniform Premarital and Marital Agreements Act.” The conference committee report made a conforming amendment to the act to address changes made in SB 13-11. Civil Unions.
  • The House adopted the conference committee report for HB 13-1200. Concerning the “Uniform Deployed Parents Custody and Visitation Act.” The conference committee report adopted several important amendments suggested by the Family Law Section.
  • The House adopted HB 13-1317. Concerning the recommendations made in the public process for the purpose of implementing retail marijuana legalized by section 16 of article XVIII of the Colorado constitution, and in connection therewith, making an appropriation on 3rd Reading by a vote of 35 yes, 29, no, and 1 excused.
  • The Senate approved 13-1246. Concerning modifications in connection with current property tax exemptions for nonprofit organizations on 3rd and final reading by a vote of 35–0.
  • The Senate approved 13-255. Concerning child fatality review teams, and, in connection therewith, increasing the capacity and resources, clarifying the responsibilities and processes of state and local child fatality review teams in the departments of public health and environment and human services, and making an appropriation on a 22–13 vote.

Tuesday, April 30

  • The Senate adopted HB 1163. Concerning payment for medical costs associated with obtaining a medical forensic examination for victims of sexual offenses, and, in connection therewith, making an appropriation on 3rd Reading on a 35–0 vote.
  • The Senate approved HB 12-1276. Concerning limitations on the actions a unit owners’ association under the “Colorado Common Interest Ownership Act” may take against a unit owner with respect to the collection of debt owed to the unit owners’ association by a 35–0 vote.
  • The Senate passed 13-1142. Concerning reforms to the “Urban and Rural Enterprise Zone Act,” and, in connection therewith, making an appropriation on a vote of 21–14.
  • The Senate adopted HB 13-1156. Concerning creation of an adult diversion program, and, in connection therewith, making an appropriation on a 35–0 vote.
  • The Senate gave final approval to HB 13-1138. Concerning benefit corporations, and, in connection therewith, making an appropriation on a party line vote 20–15. The bill was sent back to the House for consideration of the Senate amendments.
  • The Senate adopted HB 13-1134. Concerning unit owners’ associations under the “Colorado Common Interest Ownership Act” on a party line vote of 20–15.
  • The Senate unanimously approved SB 13-271. Concerning funding for the address confidentiality program on 3rd and final reading.
  • With a smidgen of bipartisan support, the Senate gave final approval of HB 13-1266. Concerning the alignment of state health insurance laws with the requirements of the federal “Patient Protection and Affordable Care Act” on a vote of 21–14.
  • The Senate adopted on 3rd and final Reading HB 13-1082. Concerning juvenile delinquency records on a 35–0 vote.
  • The House gave final approval of SB 13-252. Concerning measures to increase Colorado’s renewable energy standard so as to encourage the deployment of methane capture technologies on a vote of 37 yes, 27 no, and 1 excused.
  • The House adopted HB 13-1318. Concerning the recommendations made in the public process for the purpose of implementing certain state taxes on retail marijuana legalized by section 16 of article XVIII of the Colorado constitution, and, in connection therewith, making an appropriation on a vote of 37 yes, 27 no, and 1 excused.
  • The House approved HB 13-1306. Concerning creating a task force to consider persons who pose a threat of harm to themselves or others on 3rd and final reading; the vote: 35 yes, 29 no, and 1 excused.

Wednesday, May 1

  • The House adopted—34 yes, 28 no, and one excused—HB 13-1316. Concerning the Colorado oil and gas conservation commission’s adoption of uniform statewide groundwater sampling rules, and, in connection therewith, making an appropriation.
  • The House approved SB 13-47. Concerning protections for youth in foster care against identity theft, and, in connection therewith, making an appropriation on a vote of 63 yes, 1 no, and one excused.
  • The House approved 13-246. Concerning creation of a task force to study discovery costs in criminal case by a vote of 64 yes, 1 no, and 1 excused.
  • The House adopted HB 13-111. Concerning abuse of at-risk adults, and, in connection therewith, making an appropriation by a vote of 56 yes, 8 no, and 1 absent.
  • The House voted to concur with the amendments added by the Senate to HB 13-1138. Concerning benefit corporations, and, in connection therewith, making an appropriation. The Senate amendments to the bill represent a significant compromise on the bill. The motion to concur with Senate amendments was passed on a vote of 37 yes, 27 no, and 1 excused.
  • The House voted to concur with the amendments added by the Senate to HB 13-1276. Concerning limitations on the actions a unit owners’ association under the “Colorado Common Interest Ownership Act” may take against a unit owner with respect to the collection of debt owed to the unit owners’ association; the vote: 47 yes, 17 no, and 1 excused.
  • The House voted to concur with the amendments added by the Senate to HB 13-1156. Concerning creation of an adult diversion program, and, in connection therewith, making an appropriation on a vote of 61 yes, 3 no, and 1 excused.
  • The Senate gave its final approval to 13-250. Concerning changes to sentencing of persons convicted of drug crimes, and, in connection therewith, making an appropriation. The final vote was 34–1.
  • The Senate gave final approval to SB 13-244. Concerning a task force to study substance abuse. The final vote was 34–1.

Thursday, May 2

  • The Senate adopted HB 13-1230. Concerning compensation for persons who are exonerated of their crimes after a period of incarceration, and, in connection therewith, making an appropriation on a vote 32 yes, 0 no, and 3 excused.
  • The Senate gave final approval to HB 13-1240. Concerning penalties for persistent drunk drivers, and, in connection therewith, making an appropriation on a vote 32 yes, 0 no, and 3 excused.
  • Adopted on a vote of 33 yes, 1, no, and 1 excused, the Senate gave final support for HB 13-1160. Concerning criminal theft, and, in connection therewith, reducing an appropriation.
  • The Senate gave final approval of SB 13-283. Concerning implementation of amendment 64, and, in connection therewith, making and reducing an appropriation. The vote was 32 yes, 2, no, and 1 excused.
  • The Senate voted to concur with the House amendments to SB 13-111. Concerning abuse of at-risk adults, and, in connection therewith, making an appropriation (Mandatory reporting of elder abuse). The vote to concur was 24 yes, 10 no, and 1 excused.
  • The Senate voted to concur with the House amendments to SB 13-147. Concerning protections for youth in foster care against identity theft, and, in connection therewith, making an appropriation. The vote to concur was 34 yes, 0 no, and 1 excused.

Friday, May 3

  • The House gave final approval to SB 13-262. Concerning the exemption of representative services of enrolled agents from the definition of debt management services. The vote was unanimous—65-0.
  • On 3rd and final reading, the House adopted HB 13-1323. Concerning requiring the department of corrections to obtain clarification if a court-issued mittimus omits instruction concerning whether a defendant’s sentences are to be served consecutively or concurrently on a vote of 65–0.
  • The Senate gave final approval to HB 13-1284, Concerning documents that can be filed regarding security interests under the “Uniform Commercial Code.”

The full e-Legislative Report, including summaries of late bills of interest, can be found here.