Second Regular Session Sixty-fifth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 06-0246.01 Thomas Morris SENATE BILL 06-014 SENATE SPONSORSHIP Taylor, and Hanna HOUSE SPONSORSHIP White, Coleman, Schultheis, and Vigil Senate Committees House Committees Business, Labor and Technology A BILL FOR AN ACT Concerning the regulation of entities subject to the real estate commission. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Legislative Audit Committee. Effective January 1, 2007:  Requires real estate brokers and salespersons to independently obtain errors and omissions insurance if the real estate commission is unable to obtain such insurance at a reasonable annual premium.  Requires the division of real estate within the department of regulatory agencies, when it becomes aware of facts or circumstances that fall within the jurisdiction of a criminal justice or other law enforcement authority upon investigation of the activities of real estate brokers and salespersons, to forward the information to such authorities.  Requires an applicant for registration as a real estate developer to submit fingerprints for a state and national fingerprint-based criminal history record check. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. 12-61-103.6 (2) (a), Colorado Revised Statutes, is amended to read: 12-61-103.6. Errors and omissions insurance - duties of the commission - certificate of coverage - when required - group plan made available - effect - repeal. (2) (a) If the commission is unable to obtain errors and omissions insurance coverage to insure all licensees who choose to participate in the group program at a reasonable annual premium, as determined by the commission, a licensee shall independently obtain the errors and omissions insurance requirement of required by this section. shall not apply during any year for which coverage cannot be obtained. SECTION 2. 12-61-113, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read: 12-61-113. Investigation - revocation - actions against licensee - repeal. (9) When the division of real estate becomes aware of facts or circumstances that fall within the jurisdiction of a criminal justice or other law enforcement authority upon investigation of the activities of a licensee, the division shall, in addition to the exercise of its authority under this part 1, refer and transmit such information, which may include originals or copies of documents and materials, to one or more criminal justice or other law enforcement authorities for investigation and prosecution as authorized by law. SECTION 3. 12-61-403 (1), Colorado Revised Statutes, is amended to read: 12-61-403. Application for registration - definition. (1) (a) Every person who is required to register as a developer under this part 4 shall submit to the commission an application which that contains the information described in subsections (2) and (3) of this section. If such information is not submitted, the commission may deny the application for registration. If a developer is currently regulated in another state that has registration requirements substantially equivalent to the requirements of this part 4 or that provide substantially comparable protection to a purchaser, the commission may accept proof of such registration along with the developer's disclosure or equivalent statement from the other state in full or partial satisfaction of the information required by this section. In addition, the applicant shall be under a continuing obligation to notify the commission within ten days of after any change in the information so submitted, and a failure to do so shall be a cause for disciplinary action. (b) Before submitting an application for registration pursuant to this subsection (1), each applicant shall submit a set of fingerprints to the Colorado bureau of investigation for the purpose of conducting a state and national fingerprint-based criminal history record check utilizing records of the Colorado bureau of investigation and the federal bureau of investigation. The applicant shall pay to the Colorado bureau of investigation the fee established by the bureau for conducting the record check, and, upon completion of the record check, the bureau shall forward the results to the commission. For purposes of this paragraph (b), "applicant" means any natural person specified in subparagraph (IV) of paragraph (a) of subsection (2) of this section. SECTION 4. Effective date - applicability. (1) This act shall take effect January 1, 2007. (2) However, if a referendum petition is filed against this act or an item, section, or part of this act during the 90-day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution, then the act, item, section, or part, shall not take effect unless approved by the people at a biennial regular general election and shall take effect on the date specified in subsection (1) or on the date of the official declaration of the vote thereon by proclamation of the governor, whichever is later. (3) The provisions of this act shall apply to acts occurring on or after the applicable effective date of this act.