Colorado

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HOUSE SPEAKER INTRODUCES BILL TO DE-BRUCE STATE BUDGET
House Speaker Andrew Romanoff introduced legislation that if passed, will ask voters to allow the State to keep surplus revenue required by TABOR in return for an income tax rate reduction from 4.63 percent to 4.5 percent. If voters approve this November, it would add nearly $400 million to state coffers in 2005 and over $500 million in 2006. The additional revenue would be targeted for transportation projects and higher education. This would also resolve the current budget dilemma that requires the state to cut nearly $350 million from this year’s budget while refunding over $600 million to taxpayers. The proposal does not change other provisions in TABOR, including its annual cap on government spending. Recently, Governor Owens proposed a similar approach but his was only for two years, where speaker Romanoff’s proposal is a permanent change.

REAL ESTATE COMMISSION AUDIT RAISES CONCERN, C.E. CLASSES RETAINED
In November 2004, the Division of Real Estate and the Real Estate Commission was audited by the State of Colorado. Of the 19 recommendations, the Real Estate Recovery Fund and the Errors and Omissions (E&O) Insurance program is the focus of a Department of Regulatory Agencies (DORA) Real Estate Advisory Committee, which is considering the elimination of the Recovery Fund, and reviewing the E&O insurance mandatory requirement for all licensees, in which the policy is negotiated by the state. The Colorado Association of Realtors formed a task force to monitor these potential actions and the Association’s State Legislative Committee is monitoring potential legislation threatening either the recovery fund and/or affecting E&O insurance issues. In other action, a bill (HB 1094) that would have severely limited the continuing education requirements for real estate licensees was defeated 12-1 in the House Business Affairs Committee on January 28. BARA legislative liaison and Past President, Carol Richmond testified against HB 1094.