Colorado Legislative Council Staff
REVISED NO FISCAL IMPACT
(replaces no fiscal impact dated April 12, 1999)
April 28, 1999
Senate Business Affairs
Will Meyer (303-866-4976)
TITLE: CONCERNING THE DISCIPLINE OF REAL ESTATE LICENSEES USING INCENTIVES OR DISINCENTIVES TO EFFECT REFERRALS TO CERTAIN TITLE INSURANCE ENTITIES.
Summary of Assessment
The reengrossed bill requires the Real Estate Commission, Department of Regulatory Agencies, to commence the promulgation of rules, in consultation with the Division of Insurance, Department of Regulatory Agencies that would:
• prohibit real estate sales persons or real estate brokers from offering incentives, imposing disincentives, or giving remuneration in any form to another active licensed real estate broker or salesperson for the purpose of influencing the referral of title insurance business to a certain title insurance company or title insurance agent;
• require a written disclosure, including information about available alternative title insurance companies, be provided to the buyer or seller at the time the real estate listing agreement is signed if the buyer or seller has been referred to a title insurance company in which the real estate broker or real estate sales person has a financial interest; and
• include disciplinary measures to be taken against any real estate salesperson or real estate broker who violates the prescribed conduct.
The bill would become effective upon signature of the Governor.
The Real Estate Commission has a rule that currently is used to enforce the provisions of this bill, and is currently planning to make the required changes in the normal course of its regular rule making authority. This bill places the current plans of the Real Estate Commission into statute. According to the Real Estate Commission, the current rule has been enforced only one time in recent history. Based on the infrequency of the enforcement of this rule, it is believed that this bill will not have a significant fiscal impact on the Real Estate Commission, Division of Insurance, or affect any other state agency or unit of local government. Therefore, this bill is assessed as having no fiscal impact.