What You Need to Know

Construction Defects/Housing

SB24-106 Right to Remedy Construction Defects sponsored by Senators Zenzinger and Coleman and Rep. Bird. This legislation is from the Homeowner’s Opportunity Alliance.  This bill looks to make changes to certain aspects of the Construction Defect Action Reform Act. The proposed bill introduces a right-to-remedy option, in which condo owners and the contractors involved in the construction defects claim work bring in a neutral third party to resolve the matter by either doing remedial work or hiring another construction professional to perform the work before it is taken to court. To bring a claim, two-thirds of the actual owners of the (condominium) units must provide their written consent. Under the act, claimants can only seek damages for 1) actual damage to real or personal property, 2) actual loss of the use of real or personal property, 3) bodily injury or wrongful death, and 3) risk of bodily injury or death, a threat to the life, health, or safety of the occupants.  The bill passed Senate second reading with a strike-below amendment after several weeks of negotiations between stakeholders. It cleared third reading on a 25-8-2 vote, and is headed to the House.

SB24-112 Construction Defect Action Procedures sponsored by Senate Minority Leader Lundeen. A bill that adds disclaimers and administrative processes to the Construction Defect Action Reform Act (CDARA). This includes items such as stating that a construction professional is not vicariously liable for the acts or omissions of a licensed design professional for any construction defects and adding a list of requirements to obtain the majority approval of the unit owners before initiating a construction defect action. It’s scheduled for its first hearing on 4/23.

HB24-1230 Protections for Real Property Owners sponsored by Reps. Parenti and Bacon.  This proposal is coming from the Colorado Trial Lawyers Association (CTLA) which doubles down on the litigation landscape. Their bill expands the statute of limitations to file a claim from six years to 10, requires the defendant to pay prejudgment interest on top of damages, and makes any attempt to waive or limit legal rights or remedies under the Colorado Construction Defect Action Reform Act a direct violation of the CCPA. The bill was introduced in the Senate and is scheduled for committee on 4/16.

HB24-1267 Metropolitan District Covenant Enforcement Policy by Representatives Jodeh and Bacon and Senators Coleman and Hansen prohibits a metropolitan district from foreclosing on any lien based on a resident’s delinquent fees or other charges owed to the metropolitan district. The bill also imposes certain procedural requirements regarding court actions filed by or against a metropolitan district based on an alleged violation of the metropolitan district’s declaration, rules and regulations, or other instruments. It also requires a metro district engaging in covenant enforcement to design and review services to comply with procedural requirements. Cleared the Senate, on the way to the Governor.

HB24-1304 Minimum Parking Requirements by Representatives Vigil and Woodrow and Senators Priola and Hinrichsen The bill prohibits a county or municipality, on or after January 1, 2025, from enforcing minimum parking requirements for real property that is within a metropolitan planning organization. The bill also allows a municipality or county, on or after January 1, 2025, to impose the following requirements on a motor vehicle parking space that is voluntarily provided in connection with a development project: allow motor vehicle use of the space and allow for vehicle charging stations. Local governments must submit a report detailing their compliance. The bill passed the Appropriations Committee and is headed to the House floor for a second reading.

Tax

HB24-1014 Deceptive Trade Practice Significant Impact sponsored by Reps. Weissman and Mabrey and Senator Gonzales. The bill establishes that evidence that a person has engaged in an unfair or deceptive trade practice constitutes a significant impact on the public.  The bill cleared the Judiciary Committee after hours of opposed testimony. There are no amendments to make the bill substantially better. The strategy is to begin to count the Senate. The governor has also signaled his opposition. The bill was heard in Senate committee but was laid over for amendments and a vote.

HB24-1041 Streamline Filing Sales & Use Tax Returns sponsored by Reps. Kipp and Taggart and Senator Bridges and Van Winkle.  The bill modifies tax filing thresholds for any sales and use taxes collected by jurisdictions that do not use the state sales and use tax simplification system (SUTS). It also requires that all home rule jurisdictions use the SUTS system beginning July 1, 2025. The bill was assigned to the Judiciary with a relatively small fiscal note. The bill should pass but appropriations committee members will just need more nudging. The Governor signed the bill.

HB24-1050 Simplify Processes Regarding Certain Local Government Taxes sponsored by Reps. Taggart and Kipp and Senator Bridges and Van Winkle.  The bill expands the scope of the Sales and Use Tax Simplification Task Force, requires reporting of local lodging taxes and sales and use taxes integrated with building permits, and requires the Department of Revenue to issue a request for information for an electronic lodging tax system. RMCCA supports the bill, and it cleared the first Senate Committee and was assigned to Appropriations.

SB24-023 Hold Harmless for Error in GIS Database Data sponsored by Senators Van Winkle and Bridges and Reps. Kipp and Taggart.  The bill holds harmless any vendor for an underpayment of a tax, charge, or fee liability that results solely from an error or omission in the Colorado Department of Revenue’s GIS database.  The bill passed was sent to the Governor for his signature.

SB24-025 Update Local Government Sales & Use Tax Collection sponsored by Senator Bridges and Van Winkle and Reps. Kipp and Taggart.  Similar to SB23, this one is stalled in committee while they work through amendments with CML.  The bill will be sent to the Governor soon for his signature.

Labor and Employment

HB24-1008 Wage Claims Construction Industry Contractors sponsored by Majority Leader Duran and Rep. Froelich and Senator Danielson.  Under the bill, a general contractor and a subcontractor who is the direct employer of an employee are jointly liable for debts owed based on a wage claim or investigation. The bill requires that a subcontractor that receives a written demand for payment forward the demand to the general contractor within three business days. Subcontractors that fail to do this will be fined $2,000, paid to the general contractor, plus any other owed amounts. The bill also allows a general contractor to require that a subcontractor provide pay data and contact information for employees of the subcontractor, plus an affidavit attesting to whether the contractor has participated in a civil or administrative proceeding within the last five years and the outcome of the proceeding.  There were several amendments adopted in the committee to help the bill. Led by AGC, the amendments streamlined some of the language to make it more applicable to business operations. Upon the adoption of the amendment.

HB24-1260 Prohibition Against Employee Discipline by Representatives Duran and Hernandez and Senator Danielson. The bill prohibits an employer from requiring an employee to attend meetings, listen to speech, or view communications concerning religious or political matters. The bill creates a private right of action for employees seeking lost wages, front pay, compensation, costs, and attorney’s fees should their employer violate this policy. Certain employer communications are exempt from the prohibition, including communications required by law or that are necessary for an employee to perform the employee’s job duties. Lastly, each employer is required to post a notice of the employee rights outlined in the bill at the employer’s workplace. RMMCA has an amendment position to work on the private right of action language. The bill passed the committee after the adoption of several business-led amendments. It is waiting to be heard in Appropriations.

Energy

SB24-165 Air Quality Improvements by Senators Priola and Cutter and Representatives Rutinel and Garcia includes a multitude of new emission standards and requirements for diesel-fueled automobiles as well as facilities or buildings that generate air pollutants within the 8-hour ozone Denver/front range nonattainment area. The bill also redefines ozone season as the period between May 1 and September 30. Beginning in 2025, oil and gas activity must pause during the ozone season within the nonattainment area. Moving forward, oil and gas operators must prepare several new reports including an inventory report that includes the emissions of certain air pollutants from their operations and a report estimating emissions of nitrogen oxides from the oil and gas operations in the nonattainment area. This report will be used to develop a nitrogen oxide emissions budget to set certain emission level maximums. Lastly, the bill also requires the Department of Transportation to establish vehicle miles traveled reduction targets for the nonattainment area and to develop policies and programs to assist metropolitan planning organizations to help meet targets. It made it through its first committee and was assigned to Senate Finance. 

SB24-166 Air Quality Enforcement by Senator Winter and Representatives Froelich and Velasco increase the enforcement of violations that impact the environment. This includes establishing definitions for a “repeat violator,” a person that, in 3 years, has committed 5 or more violations of certain air quality laws, and a “high priority repeat violator,” which is defined as a repeat violator that, in 3 years, has committed 5 or more exceedances of the allowable emissions of an air pollutant in a permit. The bill increases the penalties the Division of Administration in the Department of Public Health and Environment must issue for repeat violations from a warning letter or advisory to an order of compliance. The order must assess civil penalties and/or must require a high-priority repeat violator to submit a root cause analysis for their violation. In addition, the division of administration may assess civil penalties for air quality violations without going through the district courts. The bill increases the civil penalty minimums for violations by repeat violators under state air quality laws, with specific increases for violations in a disproportionally impacted community. The bill also allows a person to file a civil action against an alleged violator of air quality laws. Current law provides that a person who violates a local government’s air quality regulations is subject to a maximum civil penalty of $300. The proposal raises the maximum civil penalty to the amount provided by state air quality laws and requires a defendant to award the prevailing plaintiff any cost of litigation. The bill made it through its first committee and is assigned to Senate Finance.

HB24-1330 Air Quality Permitting by Representatives Bacon and Wilford and Senator Cutter modifies the process to obtain permits that impact air quality. This includes clarifying that a request for general permit registration does not constitute having a valid construction permit. In addition, the bill requires that the division of administration in the Department of public health and Environment or the Air Quality Control Commission can only grant permits for certain proposed sources in a nonattainment area that meet certain requirements. Requirements include,1) the proposed source will not contribute to an exceedance of any applicable national ambient air quality standard, 2) The owner or operator of the proposed source achieves emissions reductions of each air pollutant, and 3) The proposed source is not in a disproportionately impacted community. The bill made it through its first committee.

HB24-1338 Cumulative Impacts and Environmental Justice sponsored by Representatives Rutinel and Velasco and Senator Michaelson Jenet creates an Environmental Task Force Office of Environmental Justice within the Department of Public Health and Environment. The bill enables local governments to request the office to impose limits on operational emissions within their jurisdiction, requires the office to develop two environmental equity and cumulative impact analyses for specific geographic locations within Colorado and imposes new regulations and requirements on petroleum. It is waiting to be heard in Appropriations.

HB24-1339 Disproportionately Impact Community Air Pollution sponsored by Representatives Weissman and Rutinel and Senator Winter t increases the membership of the Air Quality Control Commission from 9 to 11 members, requiring one member to represent a disproportionately impacted community and a climate scientist. Under current law, the commission is required to adopt rules regulating greenhouse gas (GHG) emissions from the industrial and manufacturing sectors, the bill would require the commission to adopt a new slate of specific rules concerning GHG emissions and compliance. This includes 1) prohibiting GHG emissions from increasing with a cap at 97 million metric tons between 2025 and 2030, 2) prohibiting sectors from complying with GHG emissions compliance through payment of fines, 3) establishing source-specific GHG reduction requirements specific to disproportionately impacted communities. The bill will be heard in committee on April 18 and RMMCA has an opposing position on the bill.

HB24-1346 Energy & Carbon Management Regulation sponsored by Representatives McCormick and Titone and Senators Hansen and Priola n. Kevin Priola (D) Summary: A bill that broadens the Energy and Carbon Management Commission’s regulatory authority to include regulation of direct air capture facilities and geologic storage operations. The commission may reimpose regulatory responsibility or financial assurance obligation on geologic storage operators as well as assess and collect regulatory and permitting fees from geologic storage operators. The bill also changes this statute of limitations from 1 year to 3 years and provides that the 3-year statute of limitations period does not apply if information regarding the alleged violation is knowingly or willfully concealed by the alleged violator. In addition, the bill seeks to expand energy and carbon management law to include enforcement and civil penalty procedures, under of the energy and carbon cash fund by the commission, mitigation of adverse environmental impacts by the commission or operator, and state agency and local government authority over oil and gas development. Lastly, the bill also requires the Department of Public Health and Environment to develop carbon dioxide accounting procedures for geologic storage operations and direct air capture facilities. The bill made it through its first committee and is waiting to be heard in the House on a second reading.

HB24-1367 Repeal Severance Tax Exemption for Stripper Wells by Representative Kipp and Senator Winter would repeal the severance tax exemption for oil and gas wells that are stripper wells. Stripper wells are considered oil produced from wells that on average produce 15 barrels per day or less of oil and gas produced from wells that on average produce 90,000 cubic feet or less per day of gas. Stripper wells are currently exempt from the state severance tax and this bill would repeal the stripper well severance tax exemption beginning in 2025. The bill is waiting to be heard in Appropriations Committee.

HB24-1366 Sustainable Local Government Community Planning by Representatives Froelich and Brown addresses new requirements for local government community planning. This includes requiring state agencies to prioritize awarding grants that satisfy a list of criteria described in the bill as well as requiring a county or municipality (local government) to include a climate action element in its master plan. A climate action element must include climate-related goals, plans, or strategies and a description of any money from the federal, state, or a local government that a local government has received for the implementation of any of the plans or goals described in the climate action element. In addition, the bill requires the Colorado Department of Transportation (CDOT) to coordinate with metropolitan planning organizations to establish criteria that define and identify growth corridors. The bill also makes changes to the statewide transportation plan, including: 1) an examination of the impact of transportation decisions on land use patterns, 2) the identifying highway segments to promote the development of dense, walkable, and mixed-use neighborhoods in transit-oriented centers, and 3) an emphasis on integrating planning efforts within CDOT to support multimodal transportation, neighborhood centers, and transit-oriented centers.

HB24-1370 Reduce Cost of Use of Natural Gas by Representatives Kipp and Wilford, introduces changes to reduce the cost of natural gas infrastructure. The project would require the Colorado Energy Office to solicit interest from local governments that are served by a dual-fuel utility in becoming a gas planning priority community – this formally indicates a local government’s interest in working with the utility to mutually explore opportunities for neighborhood-scale alternatives projects. This project targets either decommissioning a portion of the gas distribution system or avoiding expanding the gas distribution system. The bill requires the utility to work with an approved community to identify neighborhood-scale alternatives projects in each community and then follow up with reporting on the implementation of any approved neighborhood-scale alternatives projects. The commission must allow the utility to recover costs incurred from the implementation of a neighborhood-scale alternatives project. The bill made it through the first committee and is assigned to House Appropriations.

Workforce

SB24-104 Career and Technical Education and Apprenticeships sponsored by Senator Danielson.  The bill requires that the Colorado Department of Labor and Employment and the Colorado Community College System align high school career and technical education programs and the registered apprenticeship system for certain industries.  The bill has support from the Community College System, Colorado Bioscience Association, and Colorado Succeeds.  The bill passed its first House committee and was assigned to Appropriations.  

SB24-143 Credential Quality Apprenticeship Classification sponsored by Senators Coleman and Zenzinger and Rep Herod.  Current law requires the Department of Higher Education (department) and other higher education institutions to develop a framework for evaluating the quality of nondegree credentials. The bill formally recognizes the resulting quality and in-demand nondegree credentials framework (quality non-degree credentials framework) as the primary tool for assessing the quality of nondegree credentials offered in the state.  The bill requires the department to collaborate with various agencies to ensure the effective integration of the quality non-degree credentials framework within the state’s education and workforce systems and to evaluate nondegree credentials offered through state-recognized programs to ensure the credentials meet the framework’s quality standards.  The bill is supported by the Colorado Education Association. RMMCA successfully amended the bill in its first Senate committee.

HB24-1344 Sunset Plumbing Board by Representatives Lieder and Ricks and Senator Pelton implements the following DORA recommendations into the sunset review:

• Continues the board for 13 years;
• Authorizes the board to discipline plumbers who violate plumbing practices;
• Removes the requirement that the board be approved by the Senate;
• Removes political affiliation requirement for the board;
• Clarifies that plumbers can work on water conditioning systems without registering with the board as a water conditioning contractor;
• Changes “journeyman” to “journeyworker”;
• Modifies ground for license discipline related to excessive alcohol or substance use;
• Repeals requirement that boards send letters of admonition by certified mail; and
• Other technical changes.

The bill is waiting to be heard in the House on third reading.

HB24-1365 by Representatives Lukens and Soper and Senators Bridges and Will adds a continued appropriation to the Opportunity Now regional talent development initiative grant program to address workforce shortages and building trades. RMMCA supports and has benefitted from the program in the past. It’s waiting to be heard in Appropriations.

HB24-1439 Financial Incentives Expand Apprenticeship Programs by Representative Wilford and Senator Coleman creates a refundable state income tax credit that an employer may claim if the employer employs an apprentice for at least six months during an income tax year and either has a registered apprenticeship program or is an employer-partner of a registered apprenticeship program. The tax credit offers up to $6,300 for 6 months of employment plus up to $1,050 for each consecutive additional month of employment, for a maximum of up to $12,600 per apprentice per income tax year.

Postponed Indefinitely

SB24-092 Cost-Effective Energy Codes sponsored by Senator Pelton and Rep. Pugliese. 

This bill requires a cost-effective analysis to be made ahead of proposing new energy efficiency standards on or after January 1, 2026. The analysis would use the existing energy efficiency standards and requirements as a baseline comparison and assess whether the proposed economic benefits of the proposed energy efficiency standards would exceed the economic costs of those standards. RMMCA is in a support position. The bill was postponed indefinitely.

HB24-1263 Licensure of Electricians by Representative Wilson and Senator Pelton makes broad changes to definitions under the Electrician’s Practice Act and adds new definitions. It changes the number of hours to demonstrate apprenticeships and requires written evidence that the applicant has practical experience in wiring family dwellings. It also allows the substitution of training in photovoltaic system installation. RMMCA has an opposed position on the bill, and it was postponed indefinitely.

SB24-159 Mod to Energy and Carbon Management Processes by Senators Jaquez Lewis and Priola and Representatives Boesenecker and Marvin looks to reduce the number of oil and gas wells between now and 2032. The bill would prohibit issuing new oil and gas permits after January 2030. It also will add certain conditions to any permit issued after July 2024 to end certain operations of the well before December 2032. In addition, if the Energy and Carbon Management Commission determines the operations of a certain oil & gas well are adversely impacting the environment, the commission can issue an order requiring the responsible party to mitigate their impact. Noncompliance will result in the commission suing the impacting party. RMMCA has an opposed position, and the bill will likely die in committee. It was postponed indefinitely in committee.