Colorado Legislative Council Staff
NO FISCAL IMPACT
January 22, 1998
Steve Tammeus (866-2756)
TITLE: CONCERNING DECEPTIVE TRADE PRACTICES RELATING TO THE SALE OF MANUFACTURED HOMES.
Summary of Assessment
This bill revises the Colorado Consumer Protection Act (CCPA) by making certain practices in connection with the sale of manufactured homes to be deceptive trade practices, including:
• failing to allow a buyer to rescind the contract of sale within three business days;
• failing to provide conspicuous notice of the right of a buyer to rescind the sale;
• failing to refund all payments made within 15 days after the seller receives notice of rescission;
• failing to disclose the date on which the home will be delivered;
• failing to escrow all sales receipts, or provide a cash bond, letter of credit, or other surety for the repayment of amounts actually paid until the delivery of the home; and
• failing to allow the buyer to cancel the contract and receive a full refund if the delivery is delayed more than 90 days after the execution of the contract.
The bill will become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.
The Office of the Attorney General and the district courts of the state are responsible for the enforcement of the CCPA. Based upon an assumption that there will be few of these offenses during FY 1998-99 and FY 1999-00, the Judicial Branch and the Department of Law believe that any additional state costs, if any, would be absorbed within existing budgets. Therefore, this bill is assessed as having no fiscal impact.