04/23/2002 08:38 AM Senate RLS

The  committee took  up CSHB  470(L&C)Title am  - COMMON  INTEREST                                                          
OWNERSHIP:OFFERING STMTS.                                                                                                   
                                                                                                                                
SENATOR ELLIS asked for a synopsis of the measure.                                                                              
                                                                                                                                
MS. JANET SEITZ, staff to Representative  Rokeberg, explained that                                                              
CSHB  470(L&C)title am  makes two  changes to  the Uniform  Common                                                              
Interest Ownership Act, sometimes  referred to as UCIOA. It allows                                                              
a  preliminary  version  of  what  is  called  a  public  offering                                                              
statement, which is a lengthy document.  Current law says a seller                                                              
must give  a public offering statement  to the buyer who  then has                                                              
so many days  to back out  of the transaction. However,  buyers of                                                              
high-end  condominiums are  not able to  get financing  statements                                                              
because  public  offering  statements  cannot be  done  until  the                                                              
project  is  finished.  HB  470  allows  the  seller  to  offer  a                                                              
preliminary   offering   statement   to  the   buyer,   which   is                                                              
substantially similar to the public  offering statement. Right now                                                              
the penalty  for not providing a  public offering statement  is 10                                                              
percent of  the purchase price. HB  470 changes that penalty  to a                                                              
maximum  of 10  percent so  that a  court can  adjust the  penalty                                                              
depending on how egregious the error  was. She pointed out that HB
 was requested by some builders  from Homer and has the support                                                              
of  the real  estate industry  and  Homebuilders' Association.  It                                                              
retains the  buyer's right to decline  to purchase within  15 days                                                              
of the time the preliminary offering statement is received.                                                                     
                                                                                                                                
SENATOR  COWDERY moved  to calendar  CSHB 470(JUD)title  am-COMMON                                                          
INTEREST OWNERSHIP:OFFERING  STMTS with its attached  fiscal notes                                                          
at the Chairman's discretion.                                                                                                   
                                                                                                                                
CHAIRMAN  PHILLIPS announced  that with  no objection, the  motion                                                              
carried.