Legislative Update

The Legislative Policy Committee took positions on a variety of bills at its latest meeting. Here are some of the most interesting bills and CAR’s position on them:

HB-1164 “Severed Mineral Rights” CAR Position – Oppose. This bill would require a new real estate disclosure notice regarding whether the mineral estate has been severed from the surface estate. The bill would put the responsibility for the disclosure on the seller, creating an additional, unnecessary expense. The LPC opposes this unnecessary mandate. Any buyer can request a minerals title search if desired. This bill is sponsored by Realtor® Marsha Looper, a representative from El Paso County.

SB-81 “Local Government Sprinkler Requirements” CAR Position  – Support. The 2009 Model Residential Building Code included a provision requiring sprinklers in most new residential construction. This bill would prohibit local governments from requiring that provision. The LPC supports this bill because it does not believe government should place mandates on builders and because of the cost of sprinklers for new home buyers. SB-81’s sponsors include several legislators from Northern Colorado, including Sen. Scott Renfroe (Greeley) and Rep. Kevin Lundberg (Larimer County).

HB-1110  “Appraisal Management Companies” CAR Position – Support. This bill, which was initiated by the Division of Real Estate, would regulate appraisal management companies. The federal government requires AMC regulation as part of the Dodd-Frank banking reform bill. In addition to ensuring that AMC employees are licensed and regulated, the bill would also provide consumer protection by establishing transparency on appraisal costs.

HB-1165 “Disclose Radon Hazards” CAR Position – Neutral. This bill would require radon testing (and the disclosure of the results) by the seller prior to sale. Obviously this bill opens a whole can of worms. CAR is in a difficult position, and the feeling of the LPC is that it would create negative publicity if CAR openly opposes it. Staff is currently working behind the scenes to make the bill more palatable or preferably, ensure that it does not pass out of committee. HB-1165 is sponsored by Democratic legislators from Jefferson County.

CAR to Convene Continuing Education Task Force: The Grand Junction Association of Realtors® recently wrote a letter to CAR President Scott Matthias concerning the insufficiency of current Colorado continuing education requirements (24 hours for every three year cycle). The letter suggested that 12 credit hours per year would be a better standard (one update course plus an elective). CAR’s leadership discussed this proposal and shared it with the LPC. President Matthias and his leadership team decided to convene a task force to discuss the issue later this year.

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