Capitol Connections – April 29, 2024
Legislative Advocacy This Week at the Capitol
We are in the last two weeks of the 2024 legislative session, and there are multiple priority bills in which CAR is still actively engaged. One of the more significant topics of this session is long-term property tax relief for homeowners. The Property Tax Commission had its final meeting for the 2024 legislative session last Friday, and after four hours of discussion, commissioners struggled to find consensus on a plan moving forward. A majority of the Commission liked a plan that would cap 6% on the annual growth of property tax revenue to local government, one-year extension of the assessed value reductions, $55,000 for residences, and keep the 7.15% tax assessment rate for homeowners while owners would be allowed to deduct 10% of homes’ actual value up to $75,000.
CAR believes Colorado should adopt tax policies that encourage investment in our communities. One legislative proposal under consideration would create a new subclass of residential properties for the primary residence of an owner-occupier to deduct 10% of their home’s actual value up to $75,000. Only providing property tax relief to a certain segment of the population for primary-residence Coloradans sends the wrong message to businesses and investors including Coloradans who may have a second or third residential property being used as a rental. Dividing residential into new subclasses would discourage investment even as properties remain in use. As we wait to see what of the Commission’s recommendations are included in another proposed bill draft, CAR stays actively engaged in discussions at the Capitol and with community partners to ensure a sensible solution.
Bill Updates
(Amend) SB 205 Consumer Protections for Artificial Intelligence
Sponsor: Sen. Majority Leader Rodriguez
SB 205 creates definitions and duties related to artificial intelligence (AI) systems to prevent algorithmic discrimination by both developers and deployers (users) of AI systems. Deployers (users) of high-risk AI systems who make “consequential decisions” impacting housing must establish among other things a risk management policy and program for any high-risk AI systems and an impact assessment. Penalties for violating this new section of law include a Colorado Consumer Protection Act (CCPA) claim as an unfair or deceptive trade practice that could impact REALTORS®’ errors and omissions (E&O) insurance coverage.
CAR staff testified on April 24th as opposed to this bill unless significantly amended to (1) reduce the bill to simply creating a study on this emerging technology in reducing algorithmic discrimination or (2) remove any mention of deployers or users from the bill and focus on developers of AI technology and (3) create better definitions of AI systems to not threaten the health and safety of REALTORS®.
SB 205 in its current form jeopardizes the use of an application such as FOREWARN based on the loose definitions within the bill. These definitions trigger actions required under the duties of deployers/users of high-risk AI systems that make using an application such as FOREWARN onerous and to notify consumers of its use by a REALTOR®.
SB 205 is sponsored by Senate Majority Leader Robert Rodriguez (Denver) and is scheduled to be heard on the Senate floor for 2nd reading on Tuesday, April 30th.
(Oppose) HB 1151 Disclose Mandatory Fees in Advertisements
Sponsors: Rep. Ricks and Sen. Exum
The bill required all mandatory and non-discretionary fees or charges be disclosed in the advertising of a good or service. The bill prohibited advertising of any good or service if all costs associated with it were not disclosed. CAR was concerned REALTORS® would be legally exposed to unfair and deceptive trade practice claims for tertiary costs outside their control, but an integral part of the home buying process such as title, mortgage, HOA fees, insurance and so on. CAR moved from an amend to an oppose position after requests to clarify language and ensure REALTORS® are not liable for actions outside their own were not accepted.
CAR is proud to announce the bill was defeated in the Senate Business, Labor, and Technology Committee on April 16th on a vote of 4-0. Legislation that unnecessarily opens the door to unfair and deceptive trade practice claims on businesses who are working by the rules is not conducive to a fair and open housing market.
(Oppose) HB 1014 Deceptive Trade Practice Significant Impact Standard
Sponsors: Rep. Weissman, Rep. Mabrey, and Sen. Gonzales
The bill lowers the legal standard necessary to establish a claim of an unfair or deceptive trade practice under the Colorado Consumer Protection Act. Current law requires civil actions to have a significant public impact to prevail. HB 1014 would make any evidence presented as sufficient to establish public impact and it creates a path for simple negligence claims to fall under a more punitive standard not covered by errors and omissions insurance.
CAR General Counsel Scott Peterson testified in opposition to HB 1014 on February 7th during the House Judiciary Committee hearing. The increased volume of litigation would result in more difficulty for settlements of disputes, significant impact on insurance claims and more costs for Colorado businesses. HB 1014 will lead to increased costs for Colorado consumers on a spectrum of goods and services, and perhaps most significantly… housing.
The bill is scheduled for the Senate Judiciary Committee on Wednesday, May 1st at 1:30 PM.
RPAC
Have you made your 2024 RPAC investment? RPAC is hard at work every day protecting your interests at the Capitol. We are actively monitoring legislation that directly affects your business. Invest today to help protect homeownership and private property rights.
RPAC wants to visit YOU!
Having an event at your local association or broker office? We would love the opportunity to come speak with you and your team about the impact RPAC has on your business. Reach out to Kerrianne, kbrenzel@coloradorealtors.com to schedule a time for RPAC to come speak!
RPMA
“Don’t Miss Out on the Action – Sign up for REALTOR® Party Mobile Alerts”
Text REALTORS to 30644
REALTOR® Party Mobile Alerts offers REALTOR® Associations and REALTORS® a way to stay connected directly from their cell phone or tablet. When a national or state legislative call for action is launched, subscribers get a short text message containing information to take action. Stay in the “know” as housing legislation heats up at the state capitol and nationally this year.
*If you sign up for RPMA and receive a Call For Action, taking action does NOT subscribe your information to a listserv.* RPMA and CFA are strictly to inform members of legislation that the National Association of REALTORS® or Colorado Association of REALTORS® needs grassroots engagement.
Events
Join us on May 29th for CAR’s Virtual Property Management Forum and gain insights from seasoned professionals in property management.
Hear from Peter Muccio, Senior Associate Attorney with Tschetter Sulzer, as he provides a legal risk management update specifically for property managers. Learn from John Lucero, founder and principal broker at Lucero Development Services, about the intricacies of transforming office buildings into living spaces. Stay up-to-date with legislative issues impacting the industry from Brian Tanner, CAR Vice President of Public Policy.
This forum is valuable for property managers seeking to update their practices and adapt to the evolving market.