First Regular Session
Sixty-second General Assembly
LLS NO. 99-0838.01 Julie Hoerner HOUSE BILL 99-1347
STATE OF COLORADO
BY REPRESENTATIVES Smith, Kester, Saliman, Swenson, and
Tochtrop
LOCAL GOVERNMENT
APPROPRIATIONS
A BILL FOR AN ACT
101 CONCERNING THE REGISTRATION OF PERSONS INVOLVED IN PROVIDING
102 SERVICES RELATED TO MANUFACTURED HOUSING, AND, IN
103 CONNECTION THEREWITH, REQUIRING DEALERS AND INSTALLERS TO
104 REGISTER ANNUALLY, AND MAKING AN APPROPRIATION.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Finds that safe, affordable housing is important in the protection
of Colorado residents. Finds that there are concerns regarding the sales
and installation of manufactured housing. Determines that registration of
the dealers and installers of manufactured housing is necessary to protect
the public.
Requires the division of real estate within the department of
regulatory agencies to register the dealers and the installers of
manufactured housing. Provides funding for the program. Institutes
automatic revocation of registration for one year for manufactured
housing dealers or installers for violations of the "Colorado Consumer
Protection Act". Makes it a violation of the "Colorado Consumer
Protection Act" to:
Fail to register with the division;
Install manufactured housing in a fraudulent manner; and
Fail to include certain provisions in contracts to install
manufactured housing.
Repeals the registration program on July 1, 2005.
Makes an appropriation.
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
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1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. Article 61 of title 12, Colorado Revised Statutes,
3 is amended BY THE ADDITION OF A NEW PART to read:
4 PART 9
5 REGISTRATION FOR DEALERS AND INSTALLERS
6 OF MANUFACTURED HOUSING
7 12-61-901. Legislative declaration. THE GENERAL ASSEMBLY
8 HEREBY FINDS AND DECLARES THAT IT IS IN THE INTEREST OF COLORADANS
9 TO HAVE REASONABLY PRICED AND STRUCTURALLY SAFE, MANUFACTURED
10 HOUSING. CONCERNS HAVE BEEN RAISED THAT COLORADANS PURCHASING
11 MANUFACTURED HOUSING ARE NOT TREATED IN A UNIFORM AND
12 CONSISTENT MANNER AND ARE NOT RECEIVING QUALITY INSTALLATION.
13 THEREFORE, IT IS IN THE INTEREST OF PROTECTING RESIDENTS
14 THROUGHOUT THE STATE THAT THE GENERAL ASSEMBLY REQUIRE DEALERS
15 AND INSTALLERS OF MANUFACTURED HOUSING TO REGISTER WITH THE
16 DIVISION OF REAL ESTATE. REGISTRATION WILL GIVE THE DIVISION THE
17 ABILITY TO RENEW REGISTRATIONS FOR DEALERS AND INSTALLERS OF
18 MANUFACTURED HOUSING WHO ARE MEETING THE NEEDS OF COLORADANS
19 AND ALLOW REGISTRATIONS TO BE REVOKED FOR DEALERS AND
20 INSTALLERS WHO ARE PROVIDING SUBSTANDARD SERVICES.
21 12-61-902. Definitions. AS USED IN THIS PART 9, UNLESS
22 CONTEXT OTHERWISE REQUIRES:
23 (1) "DEALER" MEANS A SELLER OF MANUFACTURED HOUSING AND
24 INCLUDES A DEALER AS DEFINED IN SECTION 24-32-703 (1.4), C.R.S.
25 (2) "DIRECTOR" MEANS THE DIRECTOR OF THE DIVISION OF REAL
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1 ESTATE, AS DESCRIBED IN SECTION 12-61-106.
2 (3) "DIVISION" MEANS THE DIVISION OF REAL ESTATE.
3 (4) "INSTALLER" MEANS ANY PERSON OR ENTITY THAT INSTALLS
4 MANUFACTURED HOUSING EITHER ON PRIVATE OR LEASED REAL PROPERTY,
5 INCLUDING A DEALER WHO INSTALLS MANUFACTURED HOUSING IN
6 CONJUNCTION WITH THE PURCHASE OF MANUFACTURED HOUSING EITHER
7 THROUGH THE DEALER'S EMPLOYEE, ENTITY CONTRACTING WITH THE
8 DEALER, OR SUBCONTRACTOR RETAINED BY THE DEALER. SUCH DEALER'S
9 EMPLOYEE, ENTITY CONTRACTING WITH THE DEALER, AND
10 SUBCONTRACTOR SHALL BE EXEMPT FROM THE REGISTRATION
11 REQUIREMENT OF THIS SECTION WHILE ACTING SOLELY ON BEHALF OF A
12 DEALER.
13 (5) "MANUFACTURED HOUSING" MEANS A MANUFACTURED
14 HOUSING UNIT AS DEFINED IN SECTION 24-32-703 (6.1), C.R.S., OR A
15 MOBILE HOME AS DEFINED IN SECTION 24-32-703 (6.3), C.R.S.
16 (6) "PURCHASER" MEANS ANY PERSON WHO PURCHASES
17 MANUFACTURED HOUSING FROM A MANUFACTURED HOUSING DEALER. A
18 PURCHASER ALSO INCLUDES A PERSON WHO, AFTER BUYING
19 MANUFACTURED HOUSING FROM A DEALER, CONTRACTS WITH AN
20 INSTALLER TO INSTALL MANUFACTURED HOUSING ON REAL PROPERTY
21 EITHER LEASED OR OWNED BY THE PURCHASER.
22 12-61-903. Registration - creation of a cash fund. (1) THE
23 DIRECTOR SHALL ESTABLISH AN ANNUAL REGISTRATION PROGRAM FOR
24 EACH DEALER SELLING AND EACH INSTALLER OF MANUFACTURED HOUSING
25 WITHIN COLORADO.
26 (2) FUNDING FOR THE REGISTRATION OF DEALERS AND INSTALLERS
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1 UNDER THIS PART 9 SHALL BE FROM AMOUNTS CREDITED PURSUANT TO
2 SECTION 38-13-116 (5), C.R.S., TO THE MANUFACTURED HOUSING
3 REGISTRATION CASH FUND, WHICH FUND IS HEREBY CREATED. THE
4 GENERAL ASSEMBLY SHALL ANNUALLY APPROPRIATE FROM THE
5 MANUFACTURED HOUSING REGISTRATION CASH FUND TO THE DEPARTMENT
6 OF REGULATORY AGENCIES AN AMOUNT SUFFICIENT TO MEET EXPENSES
7 INCURRED PURSUANT TO THIS SECTION.
8 12-61-904. Registration - renewal, suspension, revocation,
9 denial. (1) ALL PERSONS DESIRING TO SELL MANUFACTURED HOUSING AS
10 A DEALER AND INSTALL MANUFACTURED HOUSING AS AN INSTALLER SHALL
11 APPLY TO THE DIVISION FOR REGISTRATION. APPLICATION FOR
12 REGISTRATION AS A DEALER OR INSTALLER OF MANUFACTURED HOUSING
13 SHALL BE MADE TO THE DIVISION UPON FORMS PRESCRIBED BY IT.
14 (2) (a) VIOLATIONS OF SECTION 6-1-105 (1) (qq) AND (1) (rr),
15 C.R.S., CONSTITUTE GROUNDS FOR REVOCATION OF A REGISTRATION FOR
16 A DEALER OR AN INSTALLER OF MANUFACTURED HOUSING FOR ONE YEAR
17 FROM THE DATE OF REVOCATION.
18 (b) A CERTIFIED COPY OF THE FINDINGS OF A COURT OF COMPETENT
19 JURISDICTION OF SUCH VIOLATION OR OTHER OFFICIAL RECORD INDICATING
20 THAT SUCH PLEA WAS ENTERED SHALL BE CONCLUSIVE EVIDENCE OF SUCH
21 VIOLATION OR PLEA UNDER THIS PART 9.
22 (c) NO REGISTRATION SHALL BE REINSTATED UNTIL PAYMENT OF
23 ALL JUDGMENTS AWARDED FOR VIOLATIONS OF SECTION 6-1-105 (1) (qq)
24 AND (1) (rr), C.R.S., HAVE BEEN MADE.
25 (d) A REGISTRATION MAY BE REINSTATED BY THE DIVISION UPON
26 APPLICATION AND AFTER THE PASSAGE OF ONE YEAR FROM THE DATE OF
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1 REVOCATION.
2 12-61-905. Rules. (1) THE DIVISION SHALL PROMULGATE RULES
3 NECESSARY FOR THE IMPLEMENTATION AND ADMINISTRATION OF THIS
4 PART 9.
5 (2) RULES PROMULGATED UNDER THIS SECTION SHALL BE
6 PROMULGATED IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24, C.R.S., AND
7 INITIALLY COMPLETED BY JANUARY 15, 2000.
8 12-61-906. Civil remedies - standard of care. A PURCHASER
9 MAY SEEK CIVIL REMEDIES FOR NEGLIGENCE FROM A DEALER OR
10 INSTALLER BECAUSE THE DEALER OR INSTALLER HAS NOT INSTALLED THE
11 PURCHASER'S MANUFACTURED HOUSING IN ACCORDANCE WITH LOCAL
12 REGULATION AND THE MANUFACTURER'S WARRANTY. IN THE EVENT
13 LOCAL REGULATION DOES NOT EXIST FOR THE INSTALLATION OF
14 MANUFACTURED HOUSING, THE MANUFACTURER'S WARRANTY SHALL BE
15 THE STANDARD OF CARE.
16 12-61-907. Repeal of part. THIS PART 9 IS REPEALED, EFFECTIVE
17 JULY 1, 2005. PRIOR TO SUCH REPEAL, THE REGISTERING OF DEALERS AND
18 INSTALLERS BY THE DIVISION PURSUANT TO THIS PART 9 SHALL BE
19 REVIEWED AS PROVIDED FOR IN SECTION 24-34-104, C.R.S.
20 SECTION 2. The introductory portion to 6-1-105 (1) (qq),
21 Colorado Revised Statutes, is amended, and the said 6-1-105 (1) (qq) is
22 further amended BY THE ADDITION OF A NEW SUBPARAGRAPH,
23 to read:
24 6-1-105. Deceptive trade practices. (1) A person engages in a
25 deceptive trade practice when, in the course of such person's business,
26 vocation, or occupation, such person:
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1 (qq) Except with respect to activities subject to article 61 of title
2 12, C.R.S., and those that would be covered except for a specific
3 exemption set forth in said article 61 of title 12, C.R.S., in connection
4 with the advertisement or sale of a manufactured home BY A DEALER AS
5 DEFINED IN SECTION 12-61-902 (1), C.R.S.:
6 (IV) FAILS TO REGISTER WITH THE DIVISION OF REAL ESTATE
7 WITHIN THE DEPARTMENT OF REGULATORY AGENCIES.
8 SECTION 3. 6-1-105 (1), Colorado Revised Statutes, is amended
9 BY THE ADDITION OF A NEW PARAGRAPH to read:
10 6-1-105. Deceptive trade practices. (1) A person engages in a
11 deceptive trade practice when, in the course of such person's business,
12 vocation, or occupation, such person:
13 (rr) IN CONNECTION WITH THE INSTALLATION OF A MANUFACTURED
14 HOME PURSUANT TO PART 9 OF ARTICLE 61 OF TITLE 12, C.R.S., IS AN
15 INSTALLER AS DEFINED IN SECTION 12-61-902 (4), C.R.S., WHO:
16 (I) HAS BEEN ADJUDGED BY A COURT OF COMPETENT JURISDICTION
17 TO HAVE COMMITTED FRAUD BY FAILING TO INSTALL A MANUFACTURED
18 HOME ACCORDING TO LOCAL REGULATION AND THE MANUFACTURER'S
19 WARRANTY FOR INSTALLATION. IN THE EVENT LOCAL REGULATION DOES
20 NOT EXIST FOR THE INSTALLATION OF MANUFACTURED HOUSING, THE
21 MANUFACTURER'S WARRANTY SHALL BE THE STANDARD OF CARE.
22 (II) FAILS TO REGISTER WITH THE DIVISION OF REAL ESTATE WITHIN
23 THE DEPARTMENT OF REGULATORY AGENCIES; OR
24 (III) FAILS TO DISCLOSE IN ANY CONTRACT FOR THE INSTALLATION
25 OF A MANUFACTURED HOME THAT:
26 (A) INSTALLATION COMPLAINTS AGAINST INSTALLERS OF
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1 MANUFACTURED HOMES MAY BE FILED WITH THE OFFICE OF THE ATTORNEY
2 GENERAL OF THE STATE OF COLORADO OR THE DISTRICT ATTORNEY FOR
3 THE JUDICIAL DISTRICT WHERE THE SALE OCCURS;
4 (B) AN AGGRIEVED PERSON MAY BRING A CIVIL ACTION UNDER THE
5 "COLORADO CONSUMER PROTECTION ACT" TO REMEDY VIOLATIONS OF
6 THE PROVISIONS OF THIS PARAGRAPH (rr).
7 SECTION 4. 38-13-116 (1), Colorado Revised Statutes, is
8 amended, and the said 38-13-116 is further amended BY THE
9 ADDITION OF A NEW SUBSECTION, to read:
10 38-13-116. Creation of funds - repeal. (1) There is hereby
11 created in the state treasury a fund to be known as the abandoned
12 property fund. Except as provided in subsections (3), and (4), AND (5) of
13 this section, moneys collected under this article, including the proceeds
14 from the sale of abandoned property under section 38-13-115, shall be
15 credited to said fund and are appropriated to the administrator for
16 payment of claims as provided in this section. The administrator shall
17 maintain at least one hundred thousand dollars but not more than one
18 hundred twenty thousand dollars in said fund for the prompt payment of
19 all claims. The moneys in the abandoned property fund shall not revert
20 to the general fund at the end of any fiscal year. Moneys received in
21 excess of that required by this subsection (1) shall be credited to the
22 general fund. The general assembly shall make annual appropriations,
23 out of the general fund, for the direct and indirect costs of administering
24 this article. Before crediting any moneys, the administrator shall record
25 the name and last-known address of each person appearing from the
26 holders' reports to be entitled to the property. The record must be
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1 available for public inspection at all reasonable business hours.
2 (5) (a) THERE IS HEREBY CREATED IN THE STATE TREASURY A FUND
3 TO BE KNOWN AS THE MOBILE HOME UNCLAIMED MONEYS FUND. MONEYS
4 COLLECTED BY THE ADMINISTRATOR UNDER THIS ARTICLE AS A RESULT OF
5 PAYMENT OR DELIVERY TO THE ADMINISTRATOR OF AMOUNTS DUE AND
6 PAYABLE FROM THE DEPARTMENT OF REGULATORY AGENCIES FROM
7 RECOVERY FUNDS, EXCEPT MONEYS COLLECTED PURSUANT TO SECTIONS
8 38-13-105, 38-13-106, 38-13-107, 38-13-108, 38-13-108.5, 38-13-108.6,
9 38-13-109, AND 38-13-109.5, SHALL BE CREDITED TO THE MOBILE HOME
10 UNCLAIMED MONEYS FUND AND ARE APPROPRIATED TO THE
11 ADMINISTRATOR FOR PAYMENT OF CLAIMS AS PROVIDED IN THIS SECTION.
12 THE ADMINISTRATOR SHALL DETERMINE AN APPROPRIATE AMOUNT OF
13 MONEYS TO BE MAINTAINED IN THE MOBILE HOME UNCLAIMED MONEYS
14 FUND FOR PAYMENT OF CLAIMS AS PROVIDED IN THIS SECTION, AND THE
15 MONEYS MAINTAINED IN THE FUND SHALL NOT REVERT TO THE GENERAL
16 FUND AT THE END OF ANY FISCAL YEAR. MONEYS IN THE MOBILE HOME
17 UNCLAIMED MONEYS FUND RECEIVED IN EXCESS OF THAT REQUIRED BY
18 THIS PARAGRAPH (a) TO BE MAINTAINED IN THE FUND AND IN EXCESS OF
19 THAT REQUIRED BY PARAGRAPH (b) OF THIS SUBSECTION (5) TO BE
20 TRANSFERRED TO THE MANUFACTURED HOUSING REGISTRATION CASH
21 FUND SHALL BE CREDITED TO THE GENERAL FUND UPON EXPIRATION OF
22 PART 9 OF ARTICLE 61 OF TITLE 12, C.R.S.
23 (b) EACH YEAR AFTER NOVEMBER 1, BUT NO LATER THAN
24 DECEMBER 30, THE ADMINISTRATOR SHALL CREDIT UP TO FIVE THOUSAND
25 DOLLARS FROM THE MOBILE HOME UNCLAIMED MONEYS FUND TO THE
26 MANUFACTURED HOUSING REGISTRATION CASH FUND CREATED IN SECTION
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1 12-61-903 (2), C.R.S. IF IN ANY YEAR THE ADMINISTRATOR DETERMINES
2 THAT ADDITIONAL MONEYS ARE REQUIRED TO PAY CLAIMS, THE
3 ADMINISTRATOR SHALL REDUCE THE AMOUNT CREDITED TO THE
4 COLORADO MANUFACTURED HOUSING REGISTRATION CASH FUND FOR
5 SUCH YEAR IN ORDER TO PAY SUCH CLAIMS. BEFORE CREDITING ANY
6 MONEYS PURSUANT TO THIS PARAGRAPH (b), THE ADMINISTRATOR SHALL
7 RECORD THE NAME AND LAST-KNOWN ADDRESS OF EACH PERSON
8 APPEARING FROM THE HOLDERS' REPORTS TO BE ENTITLED TO THE
9 PROPERTY. THE RECORD SHALL BE AVAILABLE FOR PUBLIC INSPECTION AT
10 ALL REASONABLE BUSINESS HOURS.
11 (c) THIS SUBSECTION (5) IS REPEALED, EFFECTIVE JULY 1, 2005.
12 SECTION 5. 24-34-104 (36), Colorado Revised Statutes, is
13 amended to read:
14 24-34-104. General assembly review of regulatory agencies and
15 functions for termination, continuation, or reestablishment. (36) The
16 following agencies, functions, or both, shall terminate on July 1, 2005:
17 (a) The fire suppression program of the division of fire safety
18 created pursuant to sections 24-33.5-1204.5, 24-33.5-1206.1,
19 24-33.5-1206.2, 24-33.5-1206.3, 24-33.5-1206.4, 24-33.5-1206.5,
20 24-33.5-1206.6, and 24-33.5-1207.6, C.R.S.;
21 (b) THE REGISTRATION OF MANUFACTURED HOUSING DEALERS AND
22 INSTALLERS BY THE DIVISION OF REAL ESTATE IN ACCORDANCE WITH PART
23 9 OF ARTICLE 61 OF TITLE 12, C.R.S.
24 SECTION 6. Appropriation. In addition to any other
25 appropriation, there is hereby appropriated, out of any moneys in the
26 manufactured housing registration cash fund, created in section
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1 12-61-903 (2), Colorado Revised Statutes, not otherwise appropriated, to
2 the department of regulatory agencies, for the fiscal year beginning July
3 1, 1999, the sum of ___ dollars ($ ), or so much thereof as may be
4 necessary, for the implementation of this act.
5 SECTION 7. Effective date - applicability. This act shall take
6 effect January 15, 2001, and shall apply to dealers selling and installers
7 of manufactured housing in Colorado on or after said date.
8 SECTION 8. Safety clause. The general assembly hereby finds,
9 determines, and declares that this act is necessary for the immediate
10 preservation of the public peace, health, and safety.