NOTE: The governor signed this measure on 4/18/2014.
      
      
      HOUSE BILL 14-1254
      
      
      BY REPRESENTATIVE(S) Labuda, Fields, Hullinghorst, Pabon, Ryden,
      Schafer, Tyler, Williams, Holbert, Rosenthal;
      also SENATOR(S) Balmer, Kefalas.
      
      
      Concerning a requirement to disclose fees charged to a unit
           owners' association by a community association manager.
       
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  In Colorado Revised Statutes, add 12-61-1004.5 as
      follows:
      
           12-61-1004.5.  Fees and charges for contracted services and
      home sales - disclosure required. (1) Every manager, and every
      agent or other person who represents or negotiates on behalf of
      a manager, shall disclose to the executive board of each HOA for
      which it provides or offers to provide services, during contract
      negotiations and thereafter on an annual basis, all fees and
      other amounts that the manager charges or will charge to the
      common interest community, unit owners, and purchasers of units
      in the common interest community for or as a result of any
      service, product, transaction, or item of value provided by the
      manager, any employee or contractor of the manager, or any
      other individual or entity with whom the manager associates in
      the performance of community association management services.
      
           (2)  Neither a manager nor any agent of a manager may
      enforce any fee or charge, including a transfer fee, against the
      HOA or any buyer or seller of property served by the HOA unless
      the fee or charge is:
      
           (a)  Explicitly disclosed in the manager's contract with the
      HOA or an addendum to the contract; or
      
           (b)  Documented by a  clearly identified line item on a real
      estate closing settlement statement.
      
           (3)  In addition to making the disclosures required under
      subsections (1) and (2) of this section, a manager shall disclose to
      the executive board all remuneration the manager or any
      subsidiary, affiliate, or related person or entity receives or will
      receive, directly or indirectly, in connection with its relationship
      with the common interest community.
      
           (4)  The division may regulate, investigate, and take
      disciplinary action against any manager or principal thereof for
      a violation of this section.
      
           SECTION 2.  In Colorado Revised Statutes, 12-61-1010, add (1)
      (l.5) as follows:
      
           12-61-1010.  Investigation - revocation - actions against licensee.
      (1)  The director, upon the director's own motion, may, and, upon the
      complaint in writing of any person, shall, investigate the activities of any
      community association manager or any person who assumes to act in such
      capacity within the state. The director, after holding a hearing in
      accordance with the "State Administrative Procedure Act", article 4 of title
      24, C.R.S., may impose an administrative fine not to exceed two thousand
      five hundred dollars for each separate offense, censure a licensee, place the
      licensee on probation and set the terms of probation, or temporarily
      suspend or permanently revoke a license when the licensee has performed,
      is performing, or is attempting to perform any of the following acts and is
      guilty of:
      
           (l.5)  Failing to make a full and true disclosure of fees,
      charges, and remuneration as required by section 12-61-1004.5;
      
           SECTION 3.  Act subject to petition - effective date. This act
      takes effect January 1, 2015; except that, if a referendum petition is filed
      pursuant to section 1 (3) of article V of the state constitution against this act
      or an item, section, or part of this act within the ninety-day period after
      final adjournment of the general assembly, then the act, item, section, or
      part will not take effect unless approved by the people at the general
      election to be held in November 2014 and, in such case, will take effect on
      January 1, 2015, or on the date of the official declaration of the vote
      thereon by the governor, whichever is later.
      
      
      
      
      ________________________________________________________
      Mark Ferrandino                        Morgan Carroll
      SPEAKER OF THE HOUSE                     PRESIDENT OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
      
      
      ____________________________  ____________________________
      Marilyn Eddins                      Cindi L. Markwell
      CHIEF CLERK OF THE HOUSE                 SECRETARY OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO