HB 11-1110 has been introduced in the Colorado House.  The bill which is an addition to and modification of the Nonprofit Corporation Act, attempts to extend the right of owners to attend board meetings, receive notice of meetings, and have an opportunity to speak prior to board action, to owners who are members of a non-profit corporation which is not a part of a common interest community and thus NOT governed by CCIOA.

HB 11-1124 has been introduced in the Colorado House.  This bill pertains to conflicts of interest of members of a board of directors.  Currently, CRS 38-33.3-310.5 adopts the provisions of the non-profit code with respect to board member conflicts of interest.  HB 11-1124, as introduced would no longer make CRS 7-128-501 (the non-profit code conflict of interest provision) specifically applicable to associations but instead require directors to disclose a conflict of interest if any contract, decision, or other action taken by or on behalf of the board would financially benefit the director or any person who is a parent, grandparent, spouse, child, or sibling of the director or a parent or spouse of any of those persons.  Once disclosed the director could participate in discussions on the issue but could not vote on the issue. If a director violates the requirements, “any contract entered into or action taken in violation of this section is void and unenforceable.” In addition to the definition of conflict of interest, the proposed bill would prohibit an individual from contemporaneously serving on a metropolitan district board and an association board which is located within the metropolitan district.

We will continue to monitor these bills and advise you as they progress to hearing.

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