2018 Legislative Wrap Up

The Colorado legislative session wrapped up yesterday, so today on the blog we are wrapping up all the information you need to know about bills affecting community associations and landlords and tenants. What did and did not pass?

First, what DID NOT pass. Let’s just get this out of the way.

• HB 1107 – Concerning a requirement that builders of new residences offer buyers the option to accommodate electric vehicle charging stations.
• HB 1126 – Concerning the permissible regulation of dogs in common interest communities.
• HB1127 (Landlord/Tenant) – Concerning the rental application process for prospective tenants.
• HB 1175 – Sunset Community Association Managers
  • The CAM Manager Licensing program was set to be repealed on July 1, 2018, unless extended by the legislature.  Because it was not extended, the program will go through a “wind up” procedure, which means that the program will continue until July 1, 2019 (one year form the specified repeal date).  The program is still in operation until July 1, 2019, so managers and management companies must still comply with the regulations through that date.
  • It is possible that the Colorado legislature could pass a bill next legislative session to reestablish the program, however, we will just have to wait and see what is introduced and how our elected officials vote on what is introduced.  Be sure to keep your eyes and ears peeled for more news on this hot topic!
• HB 1261 – This bill would have created the Colorado Arbitration Fairness Act.
• HB 1397 (Landlord/Tenant) – Concerning modifications to the residential warranty of habitability for the purpose of protecting renters.
• SB 120 (Landlord/Tenant) – Concerning the time allowed for a tenant to cure a lease violation for unpaid rent.

Now, let’s talk about what DID pass.

• HB 1057
  • As introduced, this bill would have allowed a judgment creditor to file a petition in court to compel the Department of Labor and Employment to disclose the name and address of the individual judgment debtor’s current employer(s). Judgment creditors must follow federal requirements for protecting any information disclosed and may not share it with other persons. A civil penalty of $1,000 may be assessed against a judgment creditor who fails to comply with these requirements.
  • As passed, the bill provided for certain fees and costs to be added to the amount due by a private collection agency or privately retained attorney THAT IS COLLECTING ON A DEBT OWED TO THE STATE OR TO ANY POLITICAL SUBDIVISION.  As passed, the bill does not affect general collections (those that we deal with on a regular basis that are owed to a community association or landlord), only those debts that are owed to the state or political subdivision.
  • Once signed, the bill will go into effect on July 1, 2019 (but again, should not materially affect community associations or landlords).
• HB 1254
  • This bill modifies the foreclosure process on property that is encumbered by a deed of trust.  Much of the bill only applies to entities able to foreclosure through the Public Trustee (not community associations which have to foreclose through the judicial process).  Of interest to associations is that the bill clarifies the process for junior lienors to redeem a property and specifies the amount of interest and other amounts that may be charged when a property is redeemed by a junior lien holder.  All in all, for community associations, this bill does not have too much impact.
  • The bill was signed by the Governor on April 23, 2018 and will go into effect on August 8, 2018.
• HB 1342
  • This bill requires that pre-CCIOA community associations have to comply with the CCIOA budget ratification procedures UNLESS (1) the association’s declaration sets a maximum assessment amount or limits the increase in an annual budget to a specific amount, and (2) the budget proposed by the board does not exceed such maximum or limits as provided for in the declaration.
  • Once signed by the Governor, this law will go into effect on July 1, 2018.
• SB 10 (Landlord/Tenant)
  • The bill requires a residential landlord to provide each tenant with a copy of a written rental agreement signed by the parties and to give a tenant a contemporaneous receipt for any payment made in person with cash or money order. For payments not made in person with cash or money order, the landlord must provide a receipt if the tenant requests it. The landlord may provide the tenant with an electronic copy of the agreement or the receipt unless the tenant requests a paper copy.
  • The bill was signed by the Governor on March 22, 2018 and will go into effect on August 8, 2018.
• SB 56
  • Under current law, a person may file a civil action in county court if the value of the claim is $15,000 or less. The bill, as introduced, would have increased that limit to $35,000 or less and would have increased certain civil action filing fees for district courts and county courts.
  • As passed, the county court jurisdictional limit will increase to $25,000.  The bill also addresses and sets certain civil action filing fees for district and county courts (based on the amount claimed in suit and type of action).
    • This will impact community associations by allowing more actions to be brought in county court. Although many of our debts do not generally exceed the $15,000 threshold, there are some cases that do, and if the association is not interested in foreclosure of the property (or if that is not an option under the specific case circumstances), then this new law will allow the association to bring the action in county court, where the rules of civil procedure are not quite as structured (and there is not generally motions practice).
  • Once signed by the Governor, this law will go into effect on January 1, 2019.
• SB 62
  • The bill enacts the “Snow Removal Service Liability Limitation Act”, which voids provisions of snow removal agreements that require one party to indemnify the other party for damages, hold the other party harmless for damages, and provide for the defense of the other party in a liability lawsuit.
  • Once signed by the Governor, this law will go into effect on August 8, 2018 (just in time for the next snow season, so make sure that you get those contracts reviewed!).

If you have questions or want more information on the legislative session, please contact us at mail@yourcornerstoneteam.com or 720.279.4351.  You can also see a quick wrap-up (in chart form) of the legislative session on our 2018 Legislation page!