Capitol Connection – March 30, 2018
Senate Bill 18-001: Transportation Infrastructure Funding
SB18-001, sponsored by Senator Baumgardner (R-Grandby), Senator Cooke (R-Greeley), and Representative Buck (R-Windsor) is the major transportation funding vehicle this legislative session. Last week a major compromise was reached that would allow for annual funding of transportation up to $250 million a year and it delays this referred measure to the 2019 ballot for Colorado voters. This would allow voters to make their own decisions at the ballot in 2018 on any existing transportation ballot initiatives, but should all of them fail at the ballot box this year, the legislative compromise would be referred to the voters for the 2019 ballot.
SB18-001, the legislative compromise, would divert 10 percent of state sales and use tax revenue from the General Fund to the State Highway fund and offer CDOT the ability to issue 3.5 Billion in transbonds with one-third of the issuance occurring in FY 2018-2019, FY2019-2020, and FY2020-2021. The bill would also require the money to be spent in counties with populations of 50,000 or less (at least 25%), highways (no more than 90%), and transit (at least 10%).
The Colorado Association of REALTORS® (CAR) Legislative Policy Committee (LPC) supports this compromise legislation. And CAR will continue to watch Senate Bill18-001 as it evolves with budget negotiations.
House Bill 18-1227: Real Estate Commission Flexibility in License Period
HB18-1227, sponsored by Representative Wist (R-Centennial), Representative Herod (D-Denver), and Senator Cooke (R-Greeley) is a clean-up bill for the 2017 real estate sunset bill. In the sunset bill, the expiration date of real estate licenses changed from an anniversary date to a calendar renewal on December 31st of the third year after issuance. However, the legislative legal services committee had a few concerns about some rules promulgated to effect this change and therefore a clean-up bill this year will address those concerns to ensure that real estate licenses can be renewed on the calendar date instead of the anniversary date. CAR’s LPC and the Division of Real Estate support this legislation.
Several of our rural members and local boards previously did not have the same access to a quality transition course. Some do not have offerings because only one type of education service provider can offer the course and this would mean members would have to travel long distances to meet their requirements. Additionally, depending on the timing of their renewal date during that transition period, some transitioning licensees could be closer to a more current annual update course offering and the transition course would be dated since it is only updated once in 5 years. The number of continuing education requirements will remain the same under the amendments, but in the transition license period two annual update courses will be required and the rest of the requirements can be met with elective courses. As amended in the House and Senate committees the bill now will allow for calendar renewals of licenses and clear up some of the confusion around the transition period. On Tuesday, HB18-1227 passed unanimously on third reading in the Senate.
Senate Bill 18-210: Amend Regulation of Appraisal Management Companies
SB18-210, sponsored by Senator Tate (R-Centennial) modifies the definition of appraisal management companies (AMCs) in Colorado law to conform with federal law and the recent amendments to Title XI of the federal “Financial Institutions Reform, Recovery, and Enforcement Act of 1989” (FIRREA). This bill also requires the Board of Real Estate Appraisers to maintain a separate list of AMCs that have an appraiser panel larger than the than federal jurisdictional threshold of 15 appraisers in Colorado or 25 in all states in which the company operates. This legislation also directs the Board of Real Estate Appraisers to require an AMC establish processes and controls to ensure they are compliant with the federal “Truth in Lending Act.” The Board of Real Estate Appraisers must also collect a new federal fee on AMCs that operate as a subsidiary of federally regulated financial institutions.
In 2009, New York Attorney General Andrew Cuomo, Fannie Mae and Freddie Mac, with support from the Federal Housing Finance Agency, developed a set of appraisal rules called the Home Valuation Code of Conduct (HVCC). The rules were developed to isolate parties with a financial interest in a mortgage loan transaction from appraiser selection and retention. Although no longer in force, HVCC influenced the Appraiser Independence rules now found in The Dodd-Frank Wall Street Reform and Consumer Protection Act. As a result, AMCs have proliferated as many lenders use their services in order to provide strict adherence to Dodd-Frank, Truth in Lending, and Interagency Guidelines.
In 2012, CAR worked in support of legislation (HB12-1110) that allowed the state regulation of AMCs. CAR supported the regulation of AMCs as they now have a greater role in the real estate transaction and to ensure Colorado complied with the rules set in the Dodd-Frank banking reform act regarding AMCs. CAR’s LPC supports this current legislation, as it is adjusting Colorado state law to conform with current federal law.
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Upcoming Events: NAR Midyear Legislative Meetings (May 14-19, 2018)
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 is now open. Click here for more information.
This year, NAR has held the REALTOR® Legislative Meetings schedule from 2:00PM to 4:30PM on Wednesday, May 16th to allow time for Capitol Hill Visits. For Colorado, we have 9 Members of Congress visits to complete on Capitol Hill. While we will try to schedule as many meetings as possible during this NAR designated time frame, we will not be able to fit all of these meetings into this window. As we approach May, CAR Staff will be in contact with attendees regarding our hill visits meeting schedule for your constituent meetings with your Members of Congress.
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.
Invest in RPAC
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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.