Election Recap

LEGISLATIVE

2020 ELECTION RECAP

Elizabeth Peetz Vice President of Government Affairs, Colorado Association of None of us could have REALTORS® predicted the tumultuous election season and the outcomes we’ve all just experienced. So, as we turn our attention to the ballot measures that need to be implemented with rulemaking processes, new leadership entering governmental halls and re-elected policymakers returning with new ideas, we have to ask ourselves, what do these changes mean for our real estate industry?

In Colorado, we are fortunate to have a long and successful tradition of mail ballots that have positioned us as a model state for voting at home. This election was no different as we set national records for voter turnout that reached approximately three million strong in our state. Across the country, the percentage of people who cast their votes rivaled the early 1900s, likely as a result of the intense passion both for and against the President this cycle, as well as increased ways to cast votes. However, 2020 did show us that many states have room for improvement in processing procedures, transparency and perhaps taking action to correct some violations of election laws in the future.

Nevertheless, as the dust settles, winners and losers need to take steps to instill more trust in cooperative discussion, critical analysis of the information and development of public policy ideas they consume, and build bridges that transcend echo chambers of immediate emotional reactions to move toward an America that can voice disagreement without demonizing the opposing side of the argument. It’s up to our leaders to set a good example by not only talking the talk, but also walking the walk to find the way back to respect, transparency, and compromise. And, as voters, all of us need to hold them accountable to represent everyone. As a country, this election proved that there is no mandate for one party, in fact, America needs to represent all parties and all people because we are still very divided as long as citizens and policymakers alike do not prioritize listening first.

Now as we turn our minds to Colorado, we see a blue state success story on election night. We may never know how much that success was dependent on the top of the ticket or the millions of dollars of out-of-state money that poured into our election. What we do know is that the balance of power in the state house, state senate, and Governor’s office is solidly Democratic. All four caucuses held their Leadership elections for the state legislature, and these will be the ones directing the 100-member General Assembly in January.

House Democrat Caucus results:

• House Speaker: Alec Garnett (D – Denver) • Majority Leader: Daneya Esgar (D – Pueblo) • Asst Majority Leader: Serena Gonzales-Gutierrez (D –

Denver) • Co-Caucus Chairs: Meg Froelich (D – Arapahoe) & Lisa

Cutter (D – Jefferson) • Co-Whips: Monica Duran (D – Jefferson) & Kyle Mullica (D – Adams) • Pro Tempore: TBD - to be appointed • Joint Budget Committee member: TBD - to be appointed

Senate Democrat Caucus results:

• Senate President: Leroy Garcia (D – Pueblo) • Majority Leader: Steve Fenberg (D – Boulder) • President Pro Tempore: Kerry Donovan (D – Delta, Eagle,

Chafee.) • Asst Majority Leader: Rhonda Fields (D – Aurora) • Whip: Jeff Bridges (D – Greenwood Village) • Caucus Chair: Julie Gonzales (D – Denver) • Joint Budget Committee members: Dominic Moreno (D – Commerce City) & Chris Hansen (D– Denver)

Senate Republican Caucus results:

• Minority Leader: Chris Holbert (R – Parker) • Asst Minority Leader: John Cooke (R – Greeley) • Whip: Paul Lundeen (D – Monument) • Caucus Chair: Jim Smallwood (D – Parker) • Joint Budget Committee member: Bob Rankin (R –

Carbondale)

House Republican Caucus results

• Minority Leader - Hugh McKean (R-Loveland) • Assistant Minority Leader - Tim Geitner (R-Colorado

Springs) • Whip - Rod Pelton (R-Cheyenne Wells) • Caucus Chair - Janice Rich (R-Grand Junction) • Joint Budget Committee - Kim Ranson (R-Lone Tree)

The preliminary focus of the new leaders appears to be centered around expanding environmental policy mandates, taxes and fees to shore up budget deficits, Covid-19 relief, landlord tenant and housing policy, wildfire mitigation, and returning to some of the policies that were abandoned during an abbreviated 2020 session. As the freshmen and returning legislators develop their agendas and priorities, CAR will be working to navigate how we address barriers to homeownership, defend against policy that increases the costs of housing, and promote a strong economic recovery post Covid-19. Stay tuned for more details and legislative preview as we get closer to December.

Any time a single party controls the reins of power, we have to be vigilant for overreach and policy or legislation that will alter the course of Colorado’s trajectory. Given the majorities held in both the state house (41 Democrats to 24 Republicans) and state senate (21 Democrats to 15 Republicans), the legislative committees will reflect their balance of power accordingly, which means that, business and real estate could very well be at risk as the taxes on these industries could be seen as low hanging fruit for the general assembly if Colorado still faces uphill winds from Covid-19 in our state budget to fund essential services. Looking at the federal races, we see only two of the 9 seats changing hands next year. However, one thing we will be watching closely is the redistricting process that will redraw congressional and legislative district lines under the new Colorado process with Independents, Republicans and Democrats working together to draft a proposal.

U.S. Senate: Hickenlooper Beats Gardner

Incumbent Republican Senator Cory Gardner was defeated by former Democratic Governor John Hickenlooper. Senatorelect Hickenlooper won with 54 percent of the vote. This race was a major national target for Democrats looking to flip the U.S. Senate. At this time, the Senate may remain in Republican control; however, the deciding seats in Georgia may happen in a January 2021 runoff election.

U.S. House of Representatives: All incumbents win reelection, and we add a new member to the delegation.

All of the Congressional incumbent candidates won reelection easily on Tuesday, including Rep. Ken Buck (R, CD4), Rep. Doug Lamborn (R, CD5), Rep. Jason Crow (D, CD6) and Rep. Ed Perlmutter (D, CD7). In the 3rd Congressional District, where the NAR did not endorse a candidate, Republican Lauren Boebert defeated Democrat Diane Mitsch Bush to replace Rep. Scott Tipton, who lost the GOP primary to Boebert.

Ballot Measures Reflect Differences in Personal and State Responsibilities

CAR took a position on four statewide ballot questions and were successful on 2 of the 4 (Prop EE & Prop 117), lost one (Prop 118), and remained neutral on a third (Amdt B). What was most interesting on election night was the true paradox of voters perhaps not reconciling one side of the budget lever with the other side. Colorado voters approved ballot measures that reduce individual and corporate income tax burdens and require voter approval of enterprise fee funds while we drastically increased the burdens of expanding government bureaucracy and fiscal responsibility for family and medical leave, and reintroduction of wolves. And in Denver, voters approved increased taxes on everyone for climate change mitigation, homelessness prevention, school operations, and so much more. One thing is certain, affordability in Denver is becoming more and more challenging in terms of housing prices and public policy. Time will tell if these issues have long-term implications for the rest of the state as we see an urban exodus in housing across the country during Covid-19, even though the market becomes more and more expensive as supply dwindles to critically low levels.

Maybe the biggest surprise for some was the margin of approval on Amendment B -- more than 57 percent with an

influx of several million dollars spent locally to earn Coloradans’ votes. Amendment B was referred by the General Assembly to repeal the 1982 Gallagher Amendment. The amendment that was removed by voters from the Colorado constitution tethered residential property assessments (currently at 7.1%) to the assessment rate for commercial property (currently at 29%) if the 2021 legislature agrees to uphold the freeze promise of the 2020 legislature. Now the hard work begins to look at long-term property tax reform proposals and perhaps policy that will solidify a stronger, more certain future for homeowners and commercial property owners in terms of their tax burdens.

CAR will be actively participating in conversations around how future property taxes should be structured at the Capitol next year.

The closest statewide margin on election night was on Proposition 114: Restoration of Grey Wolves. That measure narrowly passed with 50.22% of the vote. The state budget is going to be heavily impacted by adding new programs like wolf reintroduction, which is slated to cost at least $5.7 million over the next several years.

Possibly most concerning for CAR and its members was the victory of Proposition 118: Paid Family and Medical Leave Insurance Program. CAR opposed this measure because it places a new $1.3 billion tax on Coloradans and businesses while mandating an employment benefit that is already in place for many Colorado workers. The Prop 118 campaign was driven by millions of dollars donated from outside Colorado, and our state’s business community just could not keep pace with this influx of political dollars. Many groups will closely monitor legislation that will be needed to implement this new program in executive rulemaking and legislative policy adjustments that will result in over 196 new state employees to manage the program.

RESULTS OF OTHER STATEWIDE BALLOT QUESTIONS INCLUDE: Amendment C – Bingo Raffles (requires 55% to pass)

Yes 51.61% No 48.39%

Amendment 76 – Citizenship Qualifications of Electors (requires 55% to pass)

Yes 62.35% No 37.65%

Amendment 77 – Local Approval of Gaming Limits

Yes 59.59% No 40.41%

Proposition EE – Cigarette Tobacco and Nicotine Products Tax

Yes 68.46% No 31.54%

Proposition 113 – National Popular Vote

Yes 52.69% No 47.31%

Proposition 115 – Prohibition on Late-Term Abortions

Yes 40.69% No 59.31%

Proposition 116 – State Income Tax Rate Reduction

Yes 56.61% No 43.39%

Proposition 117 – Voter Approval Requirement of Certain Fee-Based Enterprises

Yes 52.12% No 47.88%

On behalf of our entire Government Affairs division, we share our thanks and appreciation to each and every member of our 2020 policy committees for their service and dedication. For those members getting ready to begin their service in December, we say welcome and get ready to get to work! You will have many opportunities to engage in a diverse range of issues that are all so very important to our real estate industry in 2021 and beyond.

For anyone who still has interest in serving as a key contact for CAR, please contact our Government Affairs Department at bgarcia@coloradorealtors. com. Or learn more here: https://www.coloradorealtors.com/key-contacts/