Colorado Legislative Council Staff


Drafting Number:

Prime Sponsor(s):

LLS 99-0420

Sen. Arnold

Rep. Mitchell


Bill Status:

Fiscal Analyst:

January 11, 1999

Senate Business Affairs

Steve Tammeus (866-2756)



Summary of Assessment

            This bill requires a builder or developer of any new residence to provide each buyer a report of the soils analysis prepared by a licensed professional engineer, and to keep the original soils analysis available for inspection by the buyer. The bill requires the builder or developer to provide the buyer a disclosure statement upon execution of the purchase contract, and again upon closing. The bill specifies the content of the statement.

            The engineer's report provided to the buyer is to include a summary of the engineers's recommendations, including alternative options, for construction of the foundation and other structural elements. A copy of the summary is to be recorded with the deed to the property. The bill increases the civil penalty from $500 to $1,500 for failure to provide the report, disclosure statement, or summary.

            The bill requires every builder or developer to construct the foundation or other structural elements per the engineer's recommendations, or alternative options. Any complying builder or developer shall be presumed to not have engaged in willful and wanton conduct or to have engaged in a deceptive trade practice in connection with and structural damage resulting from expansive soils. This presumption applies only to claims for structural damage resulting from expansive soils.

            The provisions of this bill will not affect state or local governement revenue or expenditures. Therefore, the bill is assessed as having no fiscal impact.

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