HB24-1175
Summary

Bill 24-1175 gives local governments the right of first refusal and the right of first offer to obtain property for long term affordable housing. For properties designated as affordable housing, sellers must give notice to local governments and the Colorado housing and finance authority two years before the expiration of an existing affordability restriction, six months before final expiration of the restrictions, and again when the seller takes certain actions to sell the property. Upon receiving notice that the seller wants to sell, local governments can preserve their right of first refusal and must make an offer. For certain sales of other multi-family properties that are 30 years or older with more than 15 but less than 100 units, local governments can exercise a right of first refusal. Certain sales are exempt from these powers. Local governments can delegate their rights of first refusal and first offer to entities subject to all rights and restrictions of a local government or partner with certain entities to finance the transaction. Additionally, the bill gives the attorney general’s office standing to bring a civil rights action for violations of the right of first refusal and the right of first offer.

Legislative Update

• 2024-05-30 / Passed
  Governor Signed
• 2024-05-29
  Sent to the Governor
  Signed by the President of the Senate
  Signed by the Speaker of the House
• 2024-05-08
  House Considered Senate Amendments – Result was to Concur – Repass
  Senate Third Reading Passed – No Amendments
• 2024-05-07
  Senate Second Reading Passed with Amendments – Committee
• 2024-05-04
  Senate Second Reading Laid Over to 05/07/2024 – No Amendments
• 2024-05-03
  Senate Second Reading Laid Over to 05/04/2024 – No Amendments
• 2024-05-02
  Senate Second Reading Laid Over to 05/03/2024 – No Amendments
• 2024-05-01
  Senate Second Reading Laid Over to 05/02/2024 – No Amendments
• 2024-04-30
  Senate Second Reading Laid Over to 05/01/2024 – No Amendments
• 2024-04-29
  Senate Second Reading Laid Over to 04/30/2024 – No Amendments
• 2024-04-25
  Senate Committee on Local Government & Housing Refer Amended to Senate Committee of the Whole
• 2024-04-12
  Introduced in Senate – Assigned to Local Government & Housing
• 2024-04-08
  House Third Reading Passed – No Amendments
• 2024-04-05
  House Second Reading Special Order – Passed with Amendments – Committee, Floor
• 2024-04-03
  House Second Reading Laid Over Daily – No Amendments
• 2024-03-22
  House Second Reading Special Order – Laid Over Daily – No Amendments
• 2024-02-23
  House Second Reading Laid Over Daily – No Amendments
• 2024-02-20
  House Committee on Transportation, Housing & Local Government Refer Amended to House Committee of the Whole
• 2024-01-31 / Introduced
  Introduced in House – Assigned to Transportation, Housing & Local Government

This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.

The Colorado Water Quality Control Division (the “Division”) has announced it will now accept new permit applications under the Stormwater Construction General Permit (COR400000) in March 2024, although the processing of such applications may be delayed. The Division previously communicated that it would not issue any new certifications in March 2024, to give staff time to process renewal applications and prepare for renewal of the COR400000 general permit on April 1, 2024. In response to concerns from owners and operators, the Division will now accept new permit applications in March 2024. The Division is still encouraging applicants to file their new permit applications before March 1 or after April 1, 2024, to minimize any delays.

Should you have any questions about the content of this Legal Alert, please contact Chris Lane or Ann Stehling. If you have specific timing concerns regarding the permit for your project, contact the Permits unit of the Division at (303) 692-3517 or cdphe_wqcd_permits@state.co.us.

SB24-002

Summary

Under current law, counties & municipalities are authorized to issue tax incentives, including property & sales tax credits or rebates to promote certain uses, like installation of renewable energy fixtures. The bill would authorize Boards of County Commissioners and municipalities to establish similar incentive programs to offer limited property tax credits or rebates to participants in a program designed to improve an “area of specific local concern.” The bill sets forth definitions and requirements for the incentive program. The bill also provides how an incentive program can be established by resolution or ordinance and requirements for public hearings.

The house passed the bill with amendments clarifying “area of specific local concern” does not include uses of real property that may or may reasonably be expected to harm disproportionately impacted communities or prevent meeting the minimum greenhouse gas emission reduction goals of the State. The amendments also require notice to the clerk of each municipality that may be impacted by the incentive program of the public hearing. The amendments also require the board of county commissioners and/or municipalities to publicize the results of an evaluation of each incentive program at a public hearing.

Legislative Update

• 2024-03-15 / Passed
  Governor Signed
• 2024-03-12
  Sent to the Governor
• 2024-03-11 / Enrolled
  Signed by the Speaker of the House
  Signed by the President of the Senate
• 2024-02-26 / Engrossed
  House Third Reading Passed – No Amendments
• 2024-02-23 – Revised
  House Second Reading Special Order – Passed with Amendments – Floor
• 2024-02-16
  House Second Reading Laid Over Daily – No Amendments
• 2024-02-13
  House Committee on Transportation, Housing & Local Government Unamended to House Committee of the Whole
• 2024-02-06 / Engrossed
  Introduced In House – Assigned to Transportation, Housing & Local Government
• 2024-02-05
  Senate Third Reading Passed – No Amendments
• 2024-02-02
  Senate Second Reading Passed with Amendments – Committee
• 2024-01-30
  Senate Committee on Local Government & Housing Refer Amended – Consent Calendar to Senate Committee of the Whole
• 2024-01-10
  Introduced In Senate – Assigned to Local Government & Housing

This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.

On Monday, January 29, 2024, the Colorado Supreme Court issued a decision that clarifies when Colorado’s three-year statute of limitations for breach of contract claims starts to run, holding that “a breach of contract claim accrues at the time the breach is, or in the exercise of reasonable diligence should have been, discovered.”

In City & Cty. of Denver v. Bd. of Cty. Comm’rs of Adams Cty., 2024 CO 5, the Colorado Supreme Court addressed a claim arising under a 1988 contract between Adams County (“Adams”) and the City and County of Denver (“Denver”) that required Denver to install a noise-monitoring
system and to use it to calculate noise levels surrounding the soon-to-open Denver International Airport (“DIA”). City & Cnty. Of Denver, at ¶2. Denver instead installed a noise-modeling
system, and Adams became aware of the discrepancy in the installed noise system no later than 1995. Id. Adams, however, did not pursue any breach of contract claim against Denver until 2018, after Adams learned that the noise-modeling system was underreporting noise data. Id.

By the time the litigation reached the Colorado Supreme Court, the dispute hinged not on whether there was a breach of contract, nor whether a three-year statute of limitations period applied to Adams’ breach of contract claim, but instead on when Adams’ breach of contract claim began to accrue. Adams argued, and the Court of Appeals agreed, that Adams’ claim did not accrue until 2014 after Adams learned about the underreporting of noise data, as that was when Adams could ascertain the extent of its damages.

The Colorado Supreme Court granted certiorari review to decide “whether the court of appeals erred when it determined that a cause of action for breach of contract does not accrue until the extent of damages is fully ascertainable and there is an ‘incentive to sue.’” Id. at n.2.

The Supreme Court reversed the Court of Appeals and rejected Adams’ argument. The Court focused its analysis on determining the plain and ordinary meaning of § 13-80-108, in which the General Assembly laid out dates of accrual that apply to different types of claims. Id. at ¶21. Looking at subsection (6) of the accrual statute, which addresses breach of contract claims, the Court sided with Denver, which argued that the claim at issue accrued no later than 1995 because Adams was aware by that time that Denver had installed a noise-modeling
system, instead of a noise-monitoring
system. Id.

Subsection (6) states that “[a] cause of action for breach of any express or implied contract . . . accrue[s] on the date the breach is discovered or should have been discovered by the exercise of reasonable diligence.” § 13-80-108(6) (emphasis added).

The Court reasoned that, “we must presume that the General Assembly knew ‘the legal import of the words it use[d]’ and that its choice of words ‘was a deliberate one calculated to obtain the result dictated by the plain meaning of the words.’” City & Cnty. Of Denver, at ¶37 citing People v. Guenther, 740 P.2d 971, 976 (Colo. 1987).

In further support of its holding, the Supreme Court relied on longstanding case law in Colorado that pointed towards a general rule that a “cause of action for . . . the breach of a contract or duty, accrues immediately upon the happening of . . . the breach, even though the actual damages resulting therefrom may not accrue until sometime afterwards.” (citation omitted).

Thus, the Colorado Supreme Court held that Adams’ complaint was barred by the statute of limitations. In doing so, the Court’s holding reversed in part Bennett Bear Creek Farm Water v. City & Cty. of Denver, 907 P.2d 648 (Colo. App. 1995), on which the Court of Appeals had relied.

Implications:

With this case, the Supreme Court makes its stance clear: the terms “breach” and “damages” are not synonymous. See City & Cnty. Of Denver, at ¶37, ¶44. When it comes to determining the date when a claim accrues for purposes of determining the three-year limitations period, a breach of contract claim accrues as soon as the claimant becomes aware a breach has occurred, not when the breach starts to produce negative impacts and when damages become apparent. If you or your business is in a contract dispute, please contact one of our attorneys for help in determining when a lawsuit must be filed before the claims become barred by the statute of limitations.

Should you have any questions about the content of this legal alert, please contact Mark Champoux or Kehinde Winful.

HB24-1085

Summary

Under current law, the statute of limitation to bring a claim against a real estate appraiser begins to run when the party discovers an alleged defect in the appraisal. HB24-1085 would require a claimant to bring an action against a real estate appraiser within 5 years after the date of the appraisal report, except that an action for fraud must be brought within 3 years after the cause of action accrues.

Legislative Updates

• 2024-03-18 / Failed
  Senate Committee on Judiciary Postpone Indefinitely
• 2024-02-20 / Engrossed
  Introduced in Senate – Assigned to Judiciary
• 2024-02-12
  House Third Reading Passed – No Amendments
• 2024-02-09
  House Second Reading Special Order – Passed with Amendments – Committee
• 2024-02-06
  House Second Reading Laid Over Daily – No Amendments
• 2024-02-01 / Introduced
  House Committee on Business Affairs & Labor Refer Amended to House Committee of the Whole
• 2024-01-10
  Introduced In House – Assigned to Business Affairs & Labor

This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.

HB24-1073

Summary

Under current law, the independent ethics commission created under the Colorado constitution does not have jurisdiction over officials or employees of special districts or school districts. HB24-173 would give the independent ethics commission jurisdiction to hear complaints, issue findings, assess penalties, and issue advisory opinions on ethics issues concerning special district officials or employees or school district officials or employees.

Legislative Updates

• 2024-05-14 / Introduced
  House Committee on Appropriations Lay Over Unamended – Amendment(s) Failed
• 2024-02-21
  House Committee on Transportation, Housing & Local Government Refer Amended to Appropriations
• 2024-01-10
  Introduced In House – Assigned to Transportation, Housing & Local Government

This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.

HB24-1056

Summary

Under Colorado’s current real property tax lien statutes (C.R.S. §§ 39-11-101 et seq.), a county treasurer is required to issue a treasurer’s deed for a property encumbered by a tax lien, upon the presentation of a certificate of purchase of a tax lien for that property, if the statutory period of redemption and certain conditions are satisfied; Sections 1 to 3 of Bill 24-1056 end that requirement. Section 5 of this Bill establishes a process after a public auction which conveys a certificate purchase to property encumbered by a tax lien. This new process requires the lawful holder of a certificate of purchase of a tax lien to apply for a public auction for the sale of a certificate of option for treasurer’s deed. If during the public auction, the purchaser of the sale of a certificate of option for treasurer’s deed pays an amount in excess of the minimum bid amount acceptable by a county treasurer, then the amount of the overbid must be paid in order of recording priority to junior lienors who have filed a notice of intent to redeem. If any overbid amount remains after payment to all lienors, it must be paid to the owner of the property subject to the tax lien. Section 4 requires county treasurers to follow the process established in Section 5, but notably, Colorado’s current real property tax lien process will stay in effect until July 1, 2024. This Bill was introduced to bring Colorado law into compliance with Tyler v. Hennepin Cty., 598 U.S. 631 (2023).

Legislative Updates

• 2024-05-13 / Passed
  Governor Signed
• 2024-05-03
  Sent to the Governor
• 2024-05-02
  Signed by the President of the Senate
  Signed by the Speaker of the House
• 2024-03-28
  House Considered Senate Amendments – Result was to Concur – Repass
• 2024-03-26
  House Considered Senate Amendments – Result was to Laid Over Daily
• 2024-03-25
  Senate Third Reading Passed – No Amendments
• 2024-03-22
  Senate Second Reading Passed with Amendments – Floor
• 2024-03-19
  Senate Second Reading Laid Over to 03/22/2024 – No Amendments
• 2024-03-18 / Engrossed
  Senate Second Reading Laid Over Daily – No Amendments
  Senate Second Reading Laid Over Daily – No Amendments
• 2024-03-12
  Senate Committee on Finance Refer Amended to Senate Committee of the Whole
• 2024-02-22 / Introduced
  House Committee on Finance Refer Amended to House Committee of the Whole
• 2024-01-10 / Introduced
  Introduced In House – Assigned to Finance

This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.

HB24-1007
Summary

The legislature passed a bill that prohibits local governments from enacting or enforcing residential occupancy limits based on familial relationship while allowing local governments to implement residential occupancy limits based on demonstrated health and safety standards such as international building code standards, fire code regulations, or Colorado department of public health and environment wastewater and water quality standards.

Legislative Updates

• 2024-04-15 / Passed
  Governor Signed
• 2024-04-10
  Sent to the Governor
• 2024-04-09
  Signed by the President of the Senate
• 2024-04-08
  Signed by the Speaker of the House
• 2024-03-28
  House Considered Senate Amendments – Result was to Concur – Repass
• 2024-03-20
  House Considered Senate Amendments – Result was to Laid Over Daily
• 2024-03-19
  Senate Third Reading Passed – No Amendments
• 2024-03-18
  Senate Second Reading Passed with Amendments – Committee, Floor
• 2024-03-12
  Senate Committee on Local Government & Housing Refer Amended to Senate Committee of the Whole
• 2024-02-12
  Introduced in Senate – Assigned to Local Government & Housing
• 2024-02-09
  House Third Reading Passed – No Amendments
• 2024-02-06
  House Third Reading Laid Over to 02/09/2024 – No Amendments
• 2024-02-05
  House Third Reading Laid Over Daily – No Amendments
• 2024-02-02
  House Second Reading Special Order – Passed with Amendments – Committee
• 2024-01-30
  House Committee on Transportation, Housing & Local Government Refer Amended to House Committee of the Whole
• 2024 -01-10
  Introduced in House – Assigned to Transportation, Housing & Local Govenrment

This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.

SB24-064
Summary

The bill requires the judicial department to collect, compile, and publish online, on a monthly basis, aggregate residential eviction data for all forcible entry and detainer actions filed in each county in the immediately preceding month. The judicial department shall make individual case level residential eviction data available upon request by a qualified entity. The bill also requires the complaint for an eviction action to include the street address and the zip code.

Legislative Updates

• 2024-05-31 / Passed
  Governor Signed
• 2024-05-10
  Sent to the Governor
  Signed by the Speaker of the House
• 2024-05-09
  Signed by the President of the Senate
• 2024-05-05
  House Third Reading Passed – No Amendments
• 2024-05-04
  House Second Reading Special Order – Passed – No Amendments
  House Committee on Appropriations Refer Unamended to House Committee of the Whole
• 2024-05-02
  House Committee on Judiciary Refer Unamended to Appropriations
• 2024-04-29
  Introduced in House – Assigned to Judiciary
  Senate Third Reading Passed – No Amendments
• 2024-04-26
  Senate Second Reading Special Order – Passed with Amendments – Committee
  Senate Committee on Appropriations Refer Amended to Senate Committee of the Whole
• 2024-02-07
  Senate Committee on Judiciary Refer Amended to Appropriations
• 2024-01-19
  Introduced In Senate – Assigned to Judiciary

This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.

SB24-058

Summary

In current law, the “Colorado Recreational Use Statute” (CRUS) protects landowners (owners) from liability resulting from the use of their lands by other individuals for recreational purposes. However, the CRUS does not limit an owner’s liability for injuries or death resulting from the owner’s willful or malicious failure to guard or warn against a known dangerous condition, use, structure, or activity likely to cause harm (willful or malicious failure). The bill states that under such circumstances, an owner does not commit a willful or malicious failure if:

1. The owner posts a warning sign at the primary access point where the individual entered the land, which sign satisfies certain criteria;
2. The owner maintains photographic or other evidence of the sign; and
3. The dangerous condition, use, structure, or activity that
   caused the injury or death is described by the sign.

The bill requires an individual who accesses land for recreational purposes to stay on the designated recreational trail, route, area, or roadway unless the owner expressly allows otherwise, or be deemed a trespasser. Currently, the CRUS states that “owner” includes the possessor of any interest in land. The bill clarifies that “owner” includes a possessor or holder of a conservation easement. The bill states that the CRUS may not be construed to limit an owner’s ability to restrict or prohibit the use of the owner’s land for an

Legislative Updates

• 2024-03-15 / Passed
  Signed by the Governor
  
• 2024-03-12
  Sent to the Governor
• 2024-03-11 / Engrossed
  Signed by the Speaker of the House
  Signed by the President of the Senate
• 2024-02-23 / Engrossed
  House Third Reading Passed – No Amendments
• 2024-02-22
  House Second Reading Special Order – Passed – No Amendments
• 2024-02-20
  House Committee on Judiciary Refer Unamended to House Committee of the Whole
• 2024-02-05 / Engrossed
  Introduced In House – Assigned to Judiciary
• 2024-02-02
  Senate Third Reading Passed – No Amendments
• 2024-02-01
  Senate Second Reading Passed with Amendments – Committee
• 2024-01-29
  Senate Committee on Judiciary Refer Amended – Consent Calendar to Senate Committee of the Whole
• 2024-01-17
  Introduced In Senate – Assigned to Judiciary

This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.