Senate Committee of Reference Report
Committee on Local Government & Housing
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April 10, 2025
After consideration on the merits, the Committee recommends the following:
HB25-1272 be amended as follows, and as so amended, be referred to the Committee of the Whole with favorable recommendation:
Page 1, Line 1Amend reengrossed bill, page 4, line 27, strike "(4.5)" and substitute
Page 1, Line 2"(4.5), (5.5)".
Page 1, Line 3Page 5, after line 4 insert:
Page 1, Line 4"(5.5) "Program claim" means all actions for damages,
Page 1, Line 5indemnity, or contribution brought against a construction
Page 1, Line 6professional to assert a claim, counterclaim, cross-claim, or
Page 1, Line 7third-party claim for damages or loss to, or the loss of use of,
Page 1, Line 8real or personal property for which the builder is a participant
Page 1, Line 9in the program or for personal injury caused by a defect in the
Page 1, Line 10design or construction of an improvement to real property for
Page 1, Line 11which the builder is a participant in the program.".
Page 1, Line 12Page 5, line 22, strike "verison" and substitute "version".
Page 1, Line 13Page 8, line 13, after "sale." insert "After recording a notice of
Page 1, Line 14election to participate, a builder may withdraw from the
Page 1, Line 15program only before the issuance of the last certificate of
Page 1, Line 16occupancy for the project.".
Page 1, Line 17Page 8, strike lines 20 and 21 and substitute:
Page 1, Line 18"(II) For a program claim.".
Page 1, Line 19Page 9, line 19, after "limitation" insert "or repose".
Page 1, Line 20Page 10, strike lines 15 through 18 and substitute:
Page 2, Line 1"(6) A personal shall not assert a program claim unless
Page 2, Line 2the claim has".
Page 2, Line 3Page 11, strike lines 6 through 14.
Page 2, Line 4Page 11, line 15, strike "(b)" and substitute "(7) (a)".
Page 2, Line 5Page 12, line 3, strike "(c)" and substitute "(b)".
Page 2, Line 6Page 12, line 4, strike "(7)(b)" and substitute "(7)(a)".
Page 2, Line 7Page 12, line 5, after "all" insert "reasonable".
Page 2, Line 8Page 12, line 6, after "damages." insert "The statute of limitations
Page 2, Line 9and repose shall be tolled from the date the claimant first
Page 2, Line 10pursued a remedy available under the warranty for no more
Page 2, Line 11than one year or until the completion of the warranty process,
Page 2, Line 12whichever is longer.".
Page 2, Line 13Page 12, line 7, strike "(d)" and substitute "(c)".
Page 2, Line 14Page 12, strike lines 9 and 10 and substitute:
Page 2, Line 15"(8) (a) For program claims, a construction professional
Page 2, Line 16who makes a".
Page 2, Line 17Page 12, line 11, strike "section 13-20-803.5" and substitute
Page 2, Line 18"subsection (9) of this section".
Page 2, Line 19Page 12, strike likes 19 and 20 and substitute:
Page 2, Line 20"(b) A construction professional is not liable".
Page 2, Line 21Page 14, after line 10 insert:
Page 2, Line 22"(d) The affirmative defenses set forth in this subsection
Page 2, Line 23(8) are in addition to, and shall not limit, impair, replace, or
Page 2, Line 24otherwise affect, any other defense available to a construction
Page 2, Line 25professional under statute or common law.".
Page 2, Line 26Page 14, strike lines 11 through 13.
Page 2, Line 27
Page 3, Line 1Page 14, line 14, strike "pursuant to this section," and substitute:
Page 3, Line 2"(9) (a) For program claims,".
Page 3, Line 3Page 14, line 14, after "professional" insert "and the insurer, as
Page 3, Line 4defined in section 10-1-102 (13), providing coverage related to
Page 3, Line 5the claim".
Page 3, Line 6Page 15, after line 9 insert:
Page 3, Line 7"(c) The construction professional shall provide an offer
Page 3, Line 8pursuant to subsection (9)(a)(I) of this section within ninety days
Page 3, Line 9after the deadline to inspect the property and claimed defect
Page 3, Line 10pursuant to section 13-20-803.5 or a written response pursuant
Page 3, Line 11to subsection (9)(a)(II) or (9)(a)(III) of this section within thirty
Page 3, Line 12days after the deadline to inspect the property and claimed
Page 3, Line 13defect pursuant to section 13-20-803.5. Notwithstanding any
Page 3, Line 14provision in a contract or any requirement in the governing
Page 3, Line 15documents, if a construction professional requests an extension
Page 3, Line 16to provide an offer pursuant to subsection (9)(a)(I) of this
Page 3, Line 17section and the claimant does not agree to the requested
Page 3, Line 18extension, the parties shall designate a mutually agreeable
Page 3, Line 19third party in writing to determine whether the requested
Page 3, Line 20extension is reasonable. Notwithstanding any other provision
Page 3, Line 21in this section, the total time to provide an offer must not
Page 3, Line 22exceed two hundred ten days after the date of the notice of
Page 3, Line 23claim by the construction professional providing an offer
Page 3, Line 24pursuant to subsection (9)(a)(I) of this section.
Page 3, Line 25(d) If a claimant unreasonably rejects a reasonable
Page 3, Line 26written offer of settlement made pursuant to this subsection (9)
Page 3, Line 27and subsequently commences an action against the
Page 3, Line 28construction professional, the court may award attorney fees
Page 3, Line 29and costs to the construction professional.
Page 3, Line 30(e) If a construction professional fails to make a
Page 3, Line 31reasonable written offer of settlement pursuant to this
Page 3, Line 32subsection (9), the limitations on damages and defenses to
Page 3, Line 33liability provided in subsections (2), (5), (6), (7), and (8) of this
Page 3, Line 34section do not apply, and the court may award attorney fees
Page 3, Line 35and costs to the claimant.
Page 3, Line 36(f) (I) A construction professional's written offer of
Page 3, Line 37settlement is reasonable, and a claimant's rejection of the offer
Page 3, Line 38is unreasonable, if the claimant recovers a final judgment in an
Page 3, Line 39amount that is less than the amount offered or the reasonable
Page 4, Line 1value of the repair offered by the construction professional.
Page 4, Line 2(II) A construction professional's written offer of
Page 4, Line 3settlement is unreasonable, and a claimant's rejection of the
Page 4, Line 4offer is reasonable, if the claimant recovers a final judgment in
Page 4, Line 5an amount that exceeds the amount offered or the reasonable
Page 4, Line 6value of the repair offered by the construction professional.".
Page 4, Line 7Page 15, line 27, strike "claim," and substitute "claim or expands the
Page 4, Line 8definition of "action" in section 13-20-802.5 (1).".
Page 4, Line 9Page 16, strike lines 1 through 4.
Page 4, Line 10Page 16, strike lines 14 and 15 and substitute "for program claims,".
Page 4, Line 11Page 20, line 8, strike "(a)".
Page 4, Line 12Page 20, strike lines 11 through 27.
Page 4, Line 13Page 21, strike lines 1 through 7.
Page 4, Line 14Page 21, line 8, strike the second "(13)" and substitute "(13),".
Page 4, Line 15Page 21, line 9, strike "cancel or deny a" and substitute "cancel,
Page 4, Line 16deny, or reduce coverage based on any claim for benefits
Page 4, Line 17covered by an existing".
Page 4, Line 18Page 22, line 27, before "monetary" insert "net" and before
Page 4, Line 19"proceeds" insert "net".