2023 LEGISLATIVE SESSION UPDATE

Before we get into the legislative session that wrapped up on Monday, May 8, I would like to introduce myself to the many members I have not met yet. My name is Brian Tanner and I started as CAR’s new Vice President of Public Policy on February 27, 2023, replacing Liz Peetz. I have more than two decades of political experience in Colorado, Wisconsin, Massachusetts, and Oregon, and I hope my experience and work ethic can continue to lead the Government Affairs division we have at CAR. Lauren Cecil also joined joined CAR as our Government Affairs Director of External Coalitions on January 11, 2023. Lauren brings a wealth of knowledge from her work with the Tennessee Association of REALTORS® and serves as CAR’s key point person on several coalitions with political ties.

2023 Legislative Session

The November 2022 elections changed the political composition of Colorado’s General Assembly:

•House: 46 Democrats – 19 Republicans

•Senate: 23 Democrats – 12 Republicans

This is an important starting point as Democrats have a supermajority in the House and a near supermajority in the Senate for the 2023 and 2024 legislative sessions. Whereas in the past, there could be a legislator or two who might vote against their caucus on a committee vote, if necessary, a Democrat-sponsored bill was much more likely to pass out of committee this 2023 legislative session. For reference, a primary House committee for bills affecting CAR; the Transportation, Housing and Local Government committee, has nine Democrats and four Republicans. That composition requires three Democrats to join Republicans to defeat or possibly amend a bill in committee. The bar to defeat or amend a Democrat-sponsored bill on the House floor is even higher with 14 Democrats needing to break from their caucus and join all 19 Republicans in order to reach a 33vote majority threshold.

The reality in navigating the 2023 legislative session was that any bill introduced with a Democratic prime sponsor could pass both legislative chambers without any changes and be signed into law by a Democratic governor. Therefore, we were much more likely to amend a Democrat-sponsored bill, especially in the House, by working with bill sponsors than defeat it.

CAR’s Legislative Policy Committee (LPC) deftly navigated the current political climate and worked towards realistic solutions on several problematic bills. Of the nearly 90 bills CAR tracked this session, the LPC took a position of Amend on more than a dozen bills with CAR’s GA staff and lobbyists working to secure critical amendments to mitigate the impact of bills.

Housing was front and center this legislative session. “Tenant rights” was an underlying theme throughout the 120 days of session. Several bills proposed restrictions on property rights, especially landlords, with rent control (House Bill 23 –1115) being one of the few bills that CAR outright opposed. Our efforts, members who contacted their legislators in response to our Call for Actions, helped defeat this bill in a Senate committee in late April.

One of the hottest debated bills was Senate Bill 23 -213 “Land Use”, a sweeping land use bill that would have among other things allowed Accessory Dwelling Units (ADUs) in urban and rural resort areas, “Middle Housing” in urban neighborhoods and higher density development near transit areas and key traffic corridors. These provisions in state law would have superseded local zoning regulations. SB-213 died on the very last day of session when House and Senate Democrats could not reconcile differences between the two chambers’ versions of the bill.

Another hotly debated bill in the last week of session, was Senate Bill 23 – 303 “Reduce Property Taxes and Voterapproved Revenue Change.” SB-303 refers Proposition HH to the November 2023 election ballot asking voters to reduce property tax taxes and to retain and spend excess state revenues that would be used to backfill some local services due to a lower amount of property tax revenue than originally forecast. The passage of Proposition HH is required for key provisions of SB-303 to take effect.

Of the many provisions within SB-303, here are a few key provisions tied to Proposition HH to highlight:

•For 2023, all residential property assessed at rate of 6.7% after a reduction of $50,000 to actual value.

•For 2024, all residential property assessed at rate of 6.7% after a reduction of $40,000 to actual value.

•For 2025-2032,

•Primary residences (or owner-occupied property) and other multifamily properties assessed at rate of 6.7% after a reduction of $40,000 to actual value.

•Senior owner-occupied property (Homestead exemption) assessed at rate of 6.7% after a reduction of $140,000 to actual value.

•Other residential (non-owner occupied or any additional properties after a primary residence) assessed at a rate of 6.7%.

Please contact the Government Affairs team at GovAffairs@ coloradorealtors.com with any questions related to 2023 legislation.

CARPAC

There will be five CARPAC seats up this year with three of those seats open due to term limits. Please refer to CARPAC bylaws for elections and refer to CAR Government Affairs staff for more information.

Colorado Project Wildfire

Interest and engagement in Colorado Project Wildfire initiatives continues to rise as the growing number of wildfires and severity of those fires captures the attention of our members, local associations, and residents throughout the mountain communities, as well as the front range following the catastrophic Marshall Fire at the end of 2021.

OTHER HIGHLIGHTS INCLUDE:

•CAR representatives have been asked by State Forester Matt McCombs to serve on the Colorado State Forest Service Working Group for the Wildfire Mitigation Education Outreach program that will launch in May 2023 and continue through 2024. This is a community education outreach program initiated by the passing of Senate Bill 007 in 2022.

•CAR members will have access to the full toolkit being developed for the implementation of the “Live Wildfire Ready” campaign that is being created from these funds.

•In addition to crafting a letter detailing our Colorado Association of REALTORS® concerns, we worked closely with Colorado State Forest Service Director Matt McCombs, CSFS scientists and communications team to define differences and concerns with realtor.com/First Street Foundation Wildfire Risk Factor Model and its potential harmful impacts of the tool related to data accuracy.

•CAR/CPW representative Ulrich Salzgeber will be a panel participant at the June 2023 annual meeting of the National Fire Protection Association to talk about the importance of public-private partnership efforts in educating the public about wildfires.

• We continue to work with our wildfire industry partners and local associations on outreach and education initiatives and resources during a May Wildfire Awareness Month campaign being implemented in conjunction with our partner organizations across Colorado.

•Sponsored ($2,500) and attended the 2023 Colorado Wildland Fire Conference to further define our program initiatives, resources, and overall support for the wildland fire continued on next page industry in Colorado.

•We continue work to update our Member Tool Kit materials to incorporate the latest content and learnings from our stakeholders/partners (Colorado State Forest Service, National Fire Protection Association, Rocky Mountain Insurance Association).

•Completed distribution of 5000 Colorado Project Wildfire brochures to local associations and partners organizations for distribution to Colorado residents.

Our proactive Project Wildfire initiatives have assisted our industry in Colorado.

•We continue work to update our Member Tool Kit materials to incorporate the latest content and learnings from our stakeholders/partners (Colorado State Forest Service, National Fire Protection Association, Rocky Mountain Insurance Association).

•Completed distribution of 5000 Colorado Project Wildfire brochures to local associations and partners organizations for distribution to Colorado residents.

Our proactive Project Wildfire initiatives have assisted our

members and local associations with access to critical local wildfire information and resources, as well as strengthened the REALTOR® brand as a trusted and valued partner by our industry partners including:

•Colorado State Forest Service

•Rocky Mountain Insurance Association

• Wildfire Preparedness Services

•Fire Adapted Colorado

•Colorado Department of Natural Resources

• Wildfire Adapted Partnership