Skip to main content
Colorado General AssemblyToggle Main Menu
Agency NameToggle Agency Menu

S_BLT_2017A 02/27/2017 Committee Summary

Final

STAFF SUMMARY OF MEETING



SENATE COMMITTEE ON BUSINESS, LABOR, & TECHNOLOGY

Date: 02/27/2017
ATTENDANCE
Time: 02:07 PM to 05:32 PM
Jahn
X
Merrifield
X
Place: RM 271
Priola
X
Smallwood
X
This Meeting was called to order by
Williams A.
X
Senator Tate
Neville T.
X
Tate
X
This Report was prepared by
Jeanette Chapman
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB17-1092

SB17-156

SB17-186
Amended, Referred to the Committee of the Whole - Consent Calendar

Amended, Referred to the Committee of the Whole

Referred to Senate Finance



02:09 PM -- HB 17-1092



Senator Tate introduced House Bill 17-1092, concerning contracts involving license royalties with proprietors of retail establishments that publicly perform music. The bill changes state laws governing contracts between performing rights societies and proprietors of retail venues that perform or broadcast music for public enjoyment. The bill requires a performing rights society to annually file with the Secretary of State's office and make freely available on the society's website:



an electronic copy of each form contract licensing the public performance of musical works to proprietors;

a schedule of royalties collected from proprietors in Colorado; and

the website address for a list of all musical works for which the performing rights society holds a license, which must be updated within 30 business days of any change to the list.



Upon request of the Secretary of State (SOS), performing rights societies must provide information on a proprietor's rights and responsibilities related to public performance of nondramatic musical works, for posting on the SOS website. The SOS must publish the links on its website and charge a fee for each filing. Not completing the required filings and disclosures is a deceptive trade practice under the bill.



Under current law, a proprietor has 72 hours to consider and rescind a contract with a performing rights society; the bill changes that period to three business days. The bill also:



requires that contracts between a performing rights society and a proprietor do not charge the proprietor royalties for public performances of musical works for which another entity already holds a license to perform the work;



expands the scope of existing laws governing these contracts to cover contract investigations and negotiations; and







clarifies that certain provisions apply to representatives of performing rights societies.



Senator Tate provided amendment L.004 (Attachment A) to the committee.



170227 AttachA.pdf170227 AttachA.pdf



02:10 PM --
Nick Hoover, Colorado Restaurant Association, spoke in support of the bill.



02:14 PM --
Margaret Moore, Tavern League of Colorado, spoke in support of the bill.



02:15 PM --
Heather Frayer, Colorado Bar Owners Association, spoke in support of the bill.

BILL: HB17-1092
TIME: 02:18:24 PM
MOVED: Tate
MOTION: Adopt amendment L.004. The motion passed without objection.
SECONDED:
VOTE
Jahn
Merrifield
Priola
Smallwood
Williams A.
Neville T.
Tate
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection
BILL: HB17-1092
TIME: 02:19:01 PM
MOVED: Tate
MOTION: Refer House Bill 17-1092, as amended, to the Committee of the Whole with a recommendation that it be placed on the consent calendar. The motion passed on a vote of 7-0.
SECONDED:
VOTE
Jahn
Yes
Merrifield
Yes
Priola
Yes
Smallwood
Yes
Williams A.
Yes
Neville T.
Yes
Tate
Yes
Final YES: 7 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS





02:29 PM -- SB 17-156



Senator Hill introduced Senate Bill 17-156, concerning prerequisites to the authority of a unit owners' association to pursue resolution of disputes involving construction defects. The bill requires that a homeowners' association (HOA) use mediation or arbitration before a lawsuit can be filed in disputes involving construction defects against a development party. If an HOA had governing documents that required mediation or arbitration at the time of construction, the HOA must adhere to that original policy in construction defects cases.



The parties involved in a dispute must mutually agree upon a mediation or arbitration service provider, with preference given to a provider specified in the HOA governing documents. The mediation or arbitration must take place at a mutually agreeable location in the judicial district in which the HOA is located. The mediator or arbitrator must:



be a neutral third party;

make certain disclosures before being selected; and

be qualified in accordance with applicable state or federal laws governing mediation and arbitration.



If no mediation or arbitration service provider is outlined in the HOA governing documents and the parties are unable to agree upon a provider, the parties may petition the district court in the HOA's jurisdiction to appoint the provider. In the arbitration of a construction defect action, the arbitrator is required to follow the substantive state law with regard to any claim, defense, or remedy granted, and a failure to do so is grounds for a district court to vacate or refuse to confirm the arbitrator's award.



In addition to submitting to mediation or arbitration before filing a lawsuit, the HOA's executive board must send an advance notice to all unit owners that includes a general description of the claim, the relief sought, and a good-faith estimate of the benefits and risks involved in a format outlined in the bill. The HOA's executive board must obtain signed, written consent from a majority of the unit owners acknowledging that the owner has received the notice required under the bill and approves the board's proposed action.



Prior to the purchase and sale of a property in an HOA, the bill requires that a disclosure notice inform the purchaser that he or she is required to become a member of the HOA, and that the community bylaws may require that certain disputes be resolved by mandatory binding arbitration.



The bill also adds notice requirements for lawsuits by HOAs in matters other than construction defect claims. Specifically, the HOA must provide notice to unit owners at least 30 days prior to commencement of the legal action.





02:35 PM --
Mayor Cathy Noon, Metro Mayor's Caucus, City of Centennial, spoke in support of the bill. She responded to questions from the committee.



02:32 PM --
Mayor Jackie Millet, City of Lone Tree, spoke in support of the bill. She responded to questions from the committee.



02:42 PM --
Mayor Pro-tem Angela Lawson, City of Aurora, spoke in support of the bill. She responded to questions from the committee.



02:48 PM --
Mayor Herb Atchison, City of Westminster, spoke in support of the bill. He responded to questions from the committee.







02:52 PM --
Tom Clark, Metro Denver Economic Development Group, spoke in support of the bill. He responded to questions from the committee.



02:55 PM --
Mike Kopp, Colorado Concern, spoke in support of the bill. He responded to questions from the committee.



03:11 PM



Senator Hill commented on the preceding testimony.



03:34 PM



Committee discussion continued.



03:37 PM --
Pam Valvano, representing herself, spoke in opposition to the bill. She responded to questions from the committee.



03:45 PM --
Suzanne Leff, Community Associations Institute (CAI), spoke in opposition to the bill. She responded to questions from the committee.



03:48 PM --
Jonathan Harris, Build Our Homes Right, spoke in opposition to the bill. He provided a handout to the committee (Attachment B).



170227 AttachB.pdf170227 AttachB.pdf



04:02 PM --
Judy Ann Kriss, representing herself, spoke in opposition to the bill.



04:06 PM --
Patrick Cail, Reconstruction Experts, spoke in opposition to the bill.



04:09 PM --
Ed Fronapfel, CAI, spoke in opposition to the bill. He responded to questions from the committee.



04:19 PM --
Edie Lilly, representing herself, spoke in opposition to the bill. She responded to questions from the committee.



04:21 PM --
Ed Shackelford, Colorado Senior Lobby, spoke in opposition to the bill. He provided two handouts to the committee (Attachments C and D).



170227 AttachC.pdf170227 AttachC.pdf170227 AttachD.pdf170227 AttachD.pdf



04:26 PM --
Adam Foster, Colorado Bar Association, spoke about concerns with Section 1 of the bill.



04:30 PM --
Erin Kelley, representing herself, spoke in support of the bill.



04:32 PM --
Peggy Rudden, representing herself, spoke in support of the bill.











04:34 PM --
Sarah Reynolds, Housing Colorado, spoke in support of the bill. She responded to questions from the committee.



04:40 PM



Senator Hill responded to questions from the committee.



04:41 PM --
Chris Jenkins, Norwood Development Group, spoke in support of the bill.



04:45 PM --
Christine Jensen, Colorado Mortgage Lenders Association, spoke in support of the bill.



04:49 PM --
Jon Roberts, Colorado Association of Realtors and South Metro Chamber of Commerce, spoke in support of the bill.



04:53 PM --
Nikolaus Remus, American Institute of Architects Colorado, spoke in support of the bill.



04:56 PM --
Rick Patten, representing himself, spoke in support of the bill.



05:01 PM --
Dave Davia, Colorado Association of Mechanical and Plumbing Contractors, spoke in support of the bill.



05:05 PM --
Dennis Polk, representing himself, spoke in support of the bill. He responded to questions from the committee.



05:13 PM



Senator Hill made closing comments on the merits of the bill. He provided amendment L.001 (Attachment E) to the committee.



170227 AttachE.pdf170227 AttachE.pdf

BILL: SB17-156
TIME: 05:17:08 PM
MOVED: Priola
MOTION: Adopt amendment L.001. The motion passed without objection.
SECONDED:
VOTE
Jahn
Merrifield
Priola
Smallwood
Williams A.
Neville T.
Tate
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection




BILL: SB17-156
TIME: 05:18:32 PM
MOVED: Priola
MOTION: Refer Senate Bill 17-156, as amended, to the Committee of the Whole. The motion passed on a vote of 5-2.
SECONDED:
VOTE
Jahn
Yes
Merrifield
No
Priola
Yes
Smallwood
Yes
Williams A.
No
Neville T.
Yes
Tate
Yes
Final YES: 5 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS



05:22 PM -- SB 17-186



Senator Tate introduced Senate Bill 17-186, concerning methods to reduce the regulatory burden on businesses from administrative rules adopted by state agencies. The bill makes changes to state law related to the adoption of rules by state agencies that impact small businesses.

BILL: SB17-186
TIME: 05:25:14 PM
MOVED: Tate
MOTION: Refer Senate Bill 17-186 to the Committee on Finance. The motion passed on a vote of 6-1.
SECONDED:
VOTE
Jahn
Yes
Merrifield
No
Priola
Yes
Smallwood
Yes
Williams A.
Yes
Neville T.
Yes
Tate
Yes
Final YES: 6 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS