Colorado

CREC SUNSET REVIEW ON TAP FOR FALL

This fall the Colorado Legislature will receive an official report prepared by the Department of Regulatory Agencies (DORA) that reviews the performance of the Colorado Real Estate Commission and Division (CREC) and which, together with expert testimony, will be used to determine if the agency should be sunset or renewed. This process, required by state law, takes place periodically to make sure that regulatory bodies are operating in the best interests of the public and are not unnecessarily restrictive to practitioners in that profession. All Colorado state regulatory bodies undergo sunset reviews regularly.

While it is possible that the Legislature will not renew the CREC thereby ending the licensing of REALTORS® in our state, that outcome is not expected. More likely, the Legislature will renew the CREC but will make some changes in how the Commission and the Division oversee our profession.

Earlier this year CAR President Kit Cowperthwaite appointed a Presidential Advisory Group (PAG), chaired by Heidi Greer-Mosher, to prepare our recommendations to the Legislature on the CREC sunset review. In addition, the PAG is charged with advocating those recommendations to CAR membership, elected and appointed officials, business and civic leadership and the general public.

The nine-member PAG has been collecting information, meeting with key advisors and with DORA staff and has been formulating specific CAR recommendations. Based on that work and with the approval of the Board of Directors, CAR is recommending that

The Commission and Division be reauthorized for the maximum time allowed under the law;
The Commission should consist of five members three licensed real estate brokers and two citizen representatives;
New applicants for a real estate license should be required to complete an education program whose curriculum and content are reviewed and approved by the Division and should be required to pass an examination which demonstrates competency;
Continuing education consisting of 24 hours every three years, including an Annual Update course of not less than 3 hours, should be required for license renewal;
The Division should maintain its own staff of industry qualified auditors and investigators to conduct prompt investigation of all complaints;
The state continue to offer an affordable E & O policy to all licensees but that if the state elects not to offer such a policy in the future that E & O not be required of any licensee. The Legislature will receive the DORA report no later than October 15. Until that time we cannot be certain of the recommendations. It is possible that we will see changes to the content of the licensing exam, a reduction in required continuing education hours and a change in how the state handles E & O.

CAR believes that maintaining an active, well-funded and efficient Division of Real Estate and Real Estate Commission is the least restrictive means to protect the public interest.

It is important that CAR members advise their own legislators that renewal of the CREC is critical and that it is in our states interest to mandate required education, testing, licensing and continuing education of all new and renewed applicants for a real estate license in Colorado.

RITTER SIGNS FIVE BILLS DESIGNED TO STEM FORECLOSURES

On June 1, 2007, Governor Billl Ritter signed five bills into law that he and legislators say are designed to stem the flood of foreclosures in the State. 1) SB 85 makes it a serious crime to pressure a real estate appraiser to falsify an appraisal. 2) SB 203 converts the states mortgage broker registration system to a licensing system. 3) SB 216 requires mortgage brokers to act with good faith and fair dealing. 4) SB 249 requires title insurers to pay into a fund that will be used by regulators to oversee the industry. 5) HB 1322 requires stiff penalties for deceptive mortgage advertising and requires brokers to make loans suitable to a borrowers ability to pay.

GOVERNORS PANEL EYES ALTERNATIVE TO GAS TAX

The Colorado Transportation Finance and Implementation Panel appointed by Governor Bill Ritter is eyeing a fee based on how many miles individual drivers travel each year to raise $ billions in new money to close the state's transportation funding gap. The fee would be based on annual vehicle miles traveled (VMT), an approach being tried voluntarily in only Oregon. The VMT tax is considered a user fee and could be imposed without a public vote. The panel is well aware of the controversial nature of such a proposal and is also looking at several other alternatives. These include: raising the gas tax; indexing the gas tax to inflation; imposing a state sales tax on gas; increasing the motor vehicle registration fee; increasing the sales tax rate on vehicles and parts; and, extending the states sales tax to include auto repair services.

AMENDMENT 41 NOT ENFORCED PENDING COURT CHALLENGE

Currently, the rules under Amendment 41 ban lobbyists from buying meals or gifts worth more than $50 for state lawmakers. They also ban gifts worth more than $50 to state employees or their families. On May 31, Denver District Court Judge Christina Habas issued a preliminary injunction barring enforcement of the gift bans. Opponents of the measure, such as the First Amendment Council, are continuing to pursue a broader court challenge in an effort to have the rules declared unconstitutional. These opponents argue that the rules would prevent, among other things, university professors from accepting Nobel Prize money and/or prohibit children of public university employees from accepting scholarships. Colorado Attorney General John Suthers released a report late last year which would support these claims. As of now, it remains unclear as to whether the state plans to appeal this recent court ruling. CARs Issues Mobilization Committee approved funding to contribute to the First Amendment Council and we are very pleased with the progress made thus far. Governor Ritter recently vetoed legislation attempting to reinterpret the voter approved constitutional amendment.