Senate Bill 17-215: Sunset Licensed Real Estate Brokers & Subdivision Developers

SB17-215, sponsored by Senator Kevin Priola (R-Henderson) and Representative Matt Gray (D-Westminister) was passed unanimously out of the Senate, Business, Labor and Technology Committee on Wednesday with bi-partisan support, and CAR expects that it will have an easy path through the Senate. This bill continues the division of real estate, the real estate commission, and the regulation of real estate brokers and subdivision developers until 2026.

The bill directs the Real Estate Commission to establish, by rule, the number of transactions that a broker must have completed before becoming an employing broker and amends the current provisions on referral fees to conform to the requirements of federal law. It further consolidates the various cash funds used for several licensing functions and programs administered by the division of real estate into a single cash fund.

Additionally, the bill would allow broker licenses to expire uniformly on December 31 rather than requiring licensees to apply for renewal at various times throughout the year on their individual anniversary dates and defines “conviction” to include deferred judgments and deferred sentences, in provisions listing factors the commission may consider when determining whether to discipline a licensee. Moreover, the bill modifies the composition of the commission to require that one of the three licensee members be a broker with experience and an active practice in property management. Finally, the introduced bill was amended in committee to remove the property manager license endorsement section (Section 6), retain the license reinstatement fees at their current level, and change the effective date of the bill to June 30, 2017.

CAR supports this bill and has been actively involved in the process since the beginning of the legislative session to define the components of the legislation that will continue to regulate our members in the future. At the March 22nd committee hearing, CAR testified and successfully amended the introduced version of the bill to provide clarity around the qualifications of the property manager seat on the Real Estate Commission, and preserve statutory protections for brokers against claims for referral fees. Continue reading future editions of the Capitol Connection to stay apprised about the Sunset Bill and CAR’s work on your behalf.

House Bill 17-1279: Construction Defect Actions Notice Vote Approval

On March 17th HB17-1279, Construction Defect Actions Notice Vote Approval sponsored by Senate Minority Leader Lucia Guzman (D-Denver), Senator Jack Tate (R-Centennial), Assistant Majority Leader of the House Alec Garnett (D-Denver), and Representative Lori Saine (R-Firestone) was introduced. The bill is scheduled to be heard in the State, Veterans, & Military Affairs Committee on March 29^th.

This bill requires that before the executive board of a homeowners’ association (HOA) in a common interest community brings suit against a developer or builder on behalf of unit owners for a construction defect action, the board must: a) notify in writing all unit owners and the developer or builder against whom the lawsuit is being considered; b) convene a meeting to consider whether to pursue a lawsuit and at that meeting the executive board and the developer or builder will have an opportunity to present relevant facts and arguments; and c) obtain the approval of a majority of the unit owners after giving them disclosures about the lawsuit and its potential costs and benefits.

CAR is in a neutral position because a few significant problems exist in the legislation as introduced. Some of these areas of concern include the exclusions of certain voting populations, the extension of the time allowed to file a lawsuit during the notice and claim period, and the omission of common area defects from requiring the same level of unit owner vote approval prior to entering a lawsuit despite the fact that these common areas could still tie up unit owner property and prevent homeowners from being able to re-finance or sell their property.

CAR is focused on making sure that the solution to the construction litigation environment enables developers and builders to have the confidence they need to build attainable housing options that are within reach of first time homeowners, seniors, young professionals and others who have effectively been blocked from pursuing home ownership. The common sense, bi-partisan solutions should facilitate a quick resolution process for homeowner associations who are trying to correct construction defects, but also protect homeowners who are trying to re-sell or finance their homes from actions that are taken by their HOA boards without their consent or knowledge.

House Bill 17-1220: Prevent Marijuana Diversion to Illegal Market

Today HB17-1220, Prevent Marijuana Diversion to Illegal Market sponsored by Majority Leader KC Becker (D-Boulder), Assistant Minority Leader Cole Wist (R-Centennial), and Senators Bob Gardner (R-Colorado Springs) and Senator Rhonda Fields (D-Aurora) passed out of the Senate Judiciary Committee on Wednesday. This bill, as amended, limits the total number of medical or recreational use marijuana plants that can be possessed or grown on a residential property to 12 plants. Unless authorized by local law, a medical marijuana patient or primary caregiver is prohibited from possessing or cultivating more than 12 plants on a residential property and must locate his or her cultivation operation on a non-residential property and comply with any applicable local law requiring disclosure of the cultivation operation. Cultivation operations are subject to any county and municipal building and public health inspection required by local law.

In addition, for those local jurisdictions that do not have a local plant count limit, medical marijuana patients and caregivers may grow up to 24 plants if the patient registers with the state licensing authority, provides notice to that local jurisdiction and follows any local jurisdiction disclosure and inspection requirements pertaining to their cultivation of marijuana plants. Finally, all marijuana cultivations must comply with local laws, regulation, and zoning and use restrictions. A person who violates the provisions of the bill is subject to a petty offense for a first offense, a level 1 drug misdemeanor for subsequent offenses involving 12-24 plants, and a level 3 drug felony for subsequent offenses involving more than 24 plants.

CAR supports this bill and testified in the Senate Judiciary Committee about the ability of a homeowner to grow potentially hundreds of medical marijuana plants within their residence,which creates an opportunity for property uses that are wholly inconsistent with basic concepts of zoning and appropriate property use.  In many cases, these “residential” grow operations are effectively “commercial” uses that are immediately adjacent to or, in some cases, attached to, the places our fellow Coloradans call “home.”

These large residential marijuana grows and the manufacturing operations they often bring with them have many consequences including obvious health and safety concerns, an increase of both human and automobile activity that is inconsistent with many residential neighborhood environments, extensive odors related to marijuana growth and harvest, and potential stigmatization of adjacent properties.

Taken together these consequences can interfere with a homeowner’s quiet enjoyment of their most sacred place… their home. Further, the current medical marijuana grow regulations do not respect the financial investment residential property owners have made in what is often their single largest investment… their home.

Invest in RPAC

The purpose of RPAC is to support candidates that support REALTORS®.  Our goal is to get pro-REALTOR® candidates elected at the local, state, and federal levels – candidates that share our support for homeownership, protect property rights, and who will listen to our concerns. Investing in RPAC is one of the easiest things you can do to protect your business. Our goal in 2017 is to raise $600,000 to continue to support our REALTOR ® champions and ensure we achieve the policy outcomes necessary to protect property rights. Click here to invest today!

CALLING ALL RPAC MAJOR INVESTORS! Enter to win a $500 Southwest Airlines Gift Card!

If you invest at least $300 of your 2017 Major Investment by April 10^th with a pledge to complete your 2017 Major Investment by CAR Fall Conference, you will be entered in a drawing for a $500 Southwest Airlines Gift Card!! The winner will be announced during RPAC Drinking for Diamonds at CAR Spring Conference on April 26^th! They do not have to be present to win.  The Major Investor levels start at $1,000 a year! Investing in RPAC is one of the easiest things you can do to protect your business!  Reminder: To be entered, you must invest at least $300 with a pledge to complete your Major Investment before CAR Fall Conference by April 10, 2017!  To make a one-time investment, click here!  To set up a recurring payment plan, click here!  Please share this drawing with any potential RPAC Major Investors! If you have already made your 2017 Major Investment, thank you! You are already entered in the drawing!  Please contact Madeline (mcain@coloradorealtors.com) if you have any questions.

Sign up for REALTOR® Party Mobile Alerts

More than 50,000 REALTORS^® from across the country have already signed up for REALTOR^® Party Mobile Alerts – have you? Text CO REALTORS to 30644 to stay up to date on REALTOR® issues!  You’ll be among the first to know about NAR Calls for Action and more! Click here for more information.

Colorado Project Wildfire

Developed by the Colorado Association of REALTORS®, Project Wildfire is designed to help reduce the destruction of land, property, and lives.  Working in partnership with other like-minded fire prevention organizations across the state, local REALTOR® associations are bringing education and awareness, as well as access to resources, directly to residents in their local communities.  To learn more about Colorado Project Wildfire, click here.

Colorado Wildland Fire Conference

The Colorado Association of REALTORS® is a proud sponsor of the 2017 Colorado Wildland Fire Conference.  Please plan to attend this event on April 19th-21st at the Pueblo Convention Center (320 Central Main Street, Pueblo, CO). This year’s conference will expand on the Fire Adapted Communities concept, providing the framework for moving from awareness to action. Anyone wishing to learn more about how they can reduce their community’s vulnerability to wildfire is welcome to attend. CE opportunities for REALTORS® will be also be available. For more information and to register, click here.

NAR Midyear Meetings in Washington, DC: May 15-20, 2017

The REALTORS® Legislative Meetings & Trade Expo is where NAR members take an active role to advance the real estate industry, public policy, and the association.  REALTORS® come to Washington, DC, for special issues forums, committee meetings, legislative activities, and the industry trade show.  Registration opens on February 15, 2017.  Click here for more information.