HOUSE 3rd Reading Unamended April 14, 2016 HOUSE 2nd Reading Unamended April 13, 2016Second Regular Session Seventieth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 16-0656.01 Duane Gall x4335 HOUSE BILL 16-1217 HOUSE SPONSORSHIP Ryden, Lontine, Pettersen, Primavera, Williams SENATE SPONSORSHIP Carroll, House Committees Senate Committees State, Veterans, & Military Affairs A BILL FOR AN ACT Concerning the implementation of certain recommendations set forth in the 2013 study of comparable HOA information and resource centers prepared by the Colorado division of real estate pursuant to House Bill 13-1134. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Under House Bill 13-1134, enacted in 2013, the director of the division of real estate (director) conducted a study of the functions and duties of other states' homeowners' association (HOA) offices. The director developed a report of the resulting study entitled the 2013 Study of Comparable HOA Information and Resource Centers (report). The bill implements the following recommendations included in the report: Replace the per-HOA fee paid by HOAs to fund the HOA information and resource center (center) with a per-unit fee, to be calculated by the director; Require the HOA information officer (officer), who is the head of the center, to develop, maintain, and publish a statewide election monitoring referral list consisting of independent contractors who can monitor HOA elections; and Require the officer to develop, maintain, and publish a statewide referral list containing the names and contact information for independent contractors who provide mediation or arbitration services on HOA matters. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 12-61-111.5, amend (2) (a) as follows: 12-61-111.5. Fee adjustments - rules - definitions. (2) (a) (I) The division shall propose, as part of its annual budget request, an adjustment in the amount of each fee that it is authorized by law to collect under parts 1, 3, 4, 7, and 10 of this article. The budget request and the adjusted fees for the division shall must reflect direct and indirect costs. (II) The costs of the HOA information and resource center, created in section 12-61-406.5, shall be are paid from the HOA information and resource center cash fund created in section 12-61-406.5 (4). The division of real estate shall estimate the direct and indirect costs of operating the HOA information and resource center. and The director of the division of real estate shall establish the amount of the an association's annual registration fee to be collected under section 38-33.3-401, C.R.S., The amount of the by establishing by rule one of the following fee structures: (A) A single per-unit annual registration fee; (B) A tiered per-unit annual registration fee; or (C) A single per-association annual registration fee. (III) Regardless of which fee structure the director of the division of real estate establishes by rule, the director shall be set the annual registration fee at an amount sufficient to recover such the HOA information and resource center's costs. subject to a maximum limit of fifty dollars and The per-unit annual registration fee is subject to adjustment to reflect the actual direct and indirect costs of operating the HOA information and resource center pursuant to the general directive to adjust fees to avoid exceeding the statutory limit on uncommitted reserves in administrative agency cash funds as set forth in section 24-75-402 (3), C.R.S. (IV) As used in this paragraph (a), unless the context otherwise requires: (A) "Association" has the meaning set forth in section 38-33.3-103 (3), C.R.S. (B) "Unit" has the meaning set forth in section 38-33.3-103 (30), C.R.S. SECTION 2. In Colorado Revised Statutes, 12-61-406.5, add (3) (d) and (3.5) as follows: 12-61-406.5. HOA information and resource center - creation - duties - rules - cash fund - repeal. (3) (d) (I) The HOA information officer shall develop and maintain a statewide referral list consisting of the names of, and contact information for, independent contractors qualified to provide HOA election monitoring. The director of the division of real estate shall establish by rule a minimum standard of experience with HOA matters that a qualified election monitor must possess to be eligible for inclusion on the statewide referral list. The HOA information officer shall publish the list on the HOA information and resource center's website and provide a disclaimer on the website indicating that, although the independent contractors included on the referral list meet the minimum standard of experience with HOA-related matters set forth by the director of the division of real estate, the referral list is not an endorsement of any independent contractor included on the list. (II) Each independent contractor included on the HOA election monitoring referral list shall annually report, in a form and manner determined by the HOA information officer, on: (A) The number of requests to monitor an HOA election he or she received within the previous year; (B) The number of HOA elections he or she monitored in the previous year; and (C) For each HOA election monitored, the type and size of HOA involved. (3.5) (a) The HOA information officer shall develop and maintain a statewide mediation and arbitration services referral list consisting of the names of, and contact information for, independent contractors who provide mediation or arbitration services on matters concerning HOAs. The director of the division of real estate shall establish by rule a minimum standard of experience with HOA-related matters that independent contractors must possess to be eligible for inclusion on the statewide referral list. The HOA information officer shall publish the list on the HOA information and resource center's website and provide a disclaimer on the website indicating that, although the independent contractors included on the referral list meet the minimum standard of experience with HOA-related matters set by the director of the division of real estate, the referral list is not an endorsement of any independent contractor included on the list. (b) Each independent contractor included on the mediation and arbitration services referral list shall annually report, in a form and manner determined by the HOA information officer, on: (I) The number of requests to mediate or arbitrate an HOA matter he or she received within the previous year; (II) The number of HOA-related mediation cases he or she opened in the previous year; (III) The number of HOA-related arbitration cases he or she opened in the previous year; (IV) The number of HOA-related mediation cases he or she closed in the previous year; (V) The number of HOA-related arbitration cases he or she closed in the previous year; (VI) The types of HOA-related issues he or she mediated in the previous year; (VII) The types of HOA-related issues he or she arbitrated in the previous year; and (VIII) For each HOA-related mediation or arbitration case opened in the previous year, the type and size of HOA involved in the matter; except that the independent contractor shall not disclose any information that is confidential pursuant to section 13-22-307, C.R.S., unless it is being disclosed for the purpose and to the extent permitted under section 13-22-307 (5), C.R.S. SECTION 3. Effective date. This act takes effect January 1, 2017. SECTION 4. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.