3-2-1 Capitol Connection – May 14, 2026
3 Things to Know
Division of Real Estate Bill Headed to the Governor’s Desk! The Colorado Association of REALTORS® (CAR) is proud to announce that “Sunset Division of Real Estate” (House Bill 1287) is headed to the Governor’s desk after recently passing the Colorado Senate on a bipartisan vote of 30-4. The Governor is expected to sign it into law. HB 1287 continues the Colorado Real Estate Commission and Division of Real Estate for another 10 years and represents a major victory for REALTORS® and consumers across Colorado.
Throughout the legislative process, CAR played a leading role in shaping the bill to ensure Colorado’s real estate regulatory framework remains fair, effective, and practical. CAR successfully secured significant amendments that protect both brokers and consumers while modernizing key areas of real estate law. These changes ensure that employing brokers can effectively supervise their associates, provide important clarifications surrounding confidential information sharing within brokerage relationships, reform trust account requirements that were among the most burdensome in the country, and streamline affiliated business arrangement disclosure processes while maintaining transparency for consumers. These changes will take effect on August 12, 2026.
Moreover, CAR successfully fought to remove harmful restitution language from the introduced bill, which would have fundamentally changed the Colorado Real Estate Commission’s role and created significant unintended consequences for brokers and consumers alike. The final passage of HB 1287 reflects months of strong advocacy and collaboration by CAR and industry stakeholders, and CAR appreciates the bipartisan support for this important legislation as it now heads to the Governor for final consideration.
Finally, Artificial Intelligence Reforms Are Here. “Automated Decision-Making Technology” (Senate Bill 26-189), legislation to reform Colorado’s artificial intelligence consumer protection laws before they take effect in June, passed both chambers in a back-and-forth over the last few days, with the Senate finally adopting an amended SB 189 from the House on May 12th. This bill is headed to the Governor’s desk, where he is expected to sign it soon after the session ends on May 13th.
Since Colorado established new consumer protections from artificial intelligence in 2024, CAR has been steadfast in seeking reforms to ensure laws more accurately target true artificial intelligence systems while avoiding unintended consequences for REALTORS® and consumers. CAR’s primary concern with the current law remains its overly broad definitions of “high-risk” AI systems and “consequential decisions” related to housing, which could unintentionally capture commonly used fraud-prevention and identity-verification tools such as FOREWARN and subject users to burdensome compliance requirements and potential deceptive trade practice claims.
SB 189 includes several important reforms that CAR supports, including narrower, more practical definitions of automated decision-making technology, clarifications regarding consequential decisions involving residential real estate transactions, and a delayed implementation timeline to allow businesses and regulators additional time to prepare for compliance. CAR will continue supporting the bill and lobbying for its passage before the session ends on May 13th.
CAR Helps Defeat Decoupling of the Tax Code to Keep Business Costs Down. CAR was part of a broad coalition of business stakeholders that successfully opposed “Modify Tax Expenditures” (House Bill 1222) legislation that would decouple portions of Colorado’s tax code from the federal tax code by limiting several business deductions currently allowed under federal law. Specifically, the bill would require taxpayers to add back certain deductions related to bonus depreciation, business interest expenses, and other investment-related costs when calculating Colorado taxable income.
The Colorado Chamber of Commerce and other industry organizations opposed the bill due to concerns about its impact on Colorado businesses and economic competitiveness. CAR was concerned that the proposal would create significant new complexity and increased tax burdens for Colorado real estate professionals, property owners, investors, and small businesses. Real estate is a capital-intensive industry that often relies on financing, depreciation schedules, and long-term investment planning. By decoupling Colorado tax policy from federal standards, HB 1222 would have increased compliance costs, reduced investor predictability, and discouraged future investment in housing and commercial real estate projects across the state. The bill was defeated in the final hours of the legislative session in the Senate Finance Committee on a bipartisan 7-1 vote.
2 Things to Share
New Tenant Screening and Data Privacy Requirements. The legislature has approved new requirements aimed at increasing transparency and protecting sensitive information in the rental application and eviction process in “Tenant Data Information” (House Bill 1196). Beginning January 1, 2027, landlords will be required to redact certain personal identifying information—such as Social Security numbers, bank account information, birth dates, and driver’s license numbers—from supporting documents filed in eviction cases that could become publicly accessible. The legislation also clarifies that any information specifically required by a court may still be submitted through confidential judicial procedures when necessary.
In addition, the bill establishes new disclosure requirements for rental applications. Landlords will now be required to provide prospective tenants with general notice regarding the information used during tenant screening, the types of factors considered in evaluating an application—such as credit, rental, income, and criminal history—and whether a third-party screening service is being used. Many housing providers who already make this information available on their websites or in their application materials are likely already meeting much of this standard. Importantly, the measure does not require landlords to adopt or disclose fixed disqualifying criteria. The bill will soon head to the Governor’s desk for potential signing.
CO Department of Law Bill Codifying NAR Settlement Principles. CAR has monitored the “Department of Law Legislative Report” (HB 1426), which would codify certain parts of the National Association of REALTORS® settlement to maintain transparency and prevent anti-competitive practices in the real estate market. HB 1426 requires a written agreement between brokers and consumers with clear disclosure of compensation paid to the broker. The bill also codifies DRE Rule 7.5, requiring a broker to advise the consumer to seek legal advice from a licensed attorney before entering a purchase contract when using a non-commission-approved contract to buy and sell. The House concurred with Senate changes to HB 1426 and repassed it in the final hours of the session on May 13th. It’s headed to the Governor’s desk with the expectation of his signing it.
1 Thing to Do
A Legislative Session Shaped by REALTOR® Advocacy. This legislative session was a powerful reminder that REALTOR® advocacy matters—and that RPAC makes that advocacy possible. Because REALTORS® have a seat at the table with policymakers, CAR successfully defeated harmful bills, secured meaningful amendments to key bills, and supported the passage of critical bills directly affecting REALTORS® and the real estate industry. The Legislative Policy Committee (LPC) tracked 73 bills impacting housing, private property rights, and the future of real estate in Colorado.
These outcomes don’t happen by accident. RPAC investments help ensure REALTORS® can continue building relationships with policymakers, engaging in critical legislation, informing the larger general public on real estate issues, and advocating for practical solutions that protect both the industry and the clients we serve. As the session comes to a close, now is the perfect time to invest in the advocacy efforts that keep REALTORS® influential under the Gold Dome and in communities across the state.
NAR
Six Forces Shaping Commercial Real Estate Today
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NAR Backs Labor Department Proposal to Clarify Independent Contractor Rules
The National Association of REALTORS® is voicing strong support for a proposed federal rule that could bring greater clarity and consistency to how real estate professionals are classified.
The consequences are significant. Housing providers estimate that the vacancy cap has removed roughly 24,000 units from the rental market, intensifying the housing shortage and limiting options for renters.