Colorado 2023 Regular Session

Colorado House Bill HB1134 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	First Regular Session
	2	+	Seventy-fourth General Assembly
	3	+	STATE OF COLORADO
	4	+	REREVISED
	5	+	This Version Includes All Amendments
	6	+	Adopted in the Second House
	7	+	LLS NO. 23-0648.01 Richard Sweetman x4333
1	8		HOUSE BILL 23-1134
2		-	BY REPRESENTATIVE(S) Joseph and Kipp, Garcia, Lindstedt, Ortiz,
3		-	Sharbini, Velasco, Willford, Bird, Boesenecker, Brown, Dickson, English,
4		-	Epps, Froelich, Hamrick, Herod, Jodeh, Lindsay, Mabrey, McCormick,
5		-	Ricks, Sirota, Snyder, Weissman, Woodrow, Michaelson Jenet, Titone,
6		-	Valdez, Vigil, McCluskie;
7		-	also SENATOR(S) Cutter, Marchman, Hinrichsen, Kolker, Moreno, Priola,
8		-	Winter F., Fenberg.
	9	+	House Committees Senate Committees
	10	+	Energy & Environment Transportation & Energy
	11	+	A BILL FOR AN ACT
9	12		C
10		-	ONCERNING MANDATORY PROVISIONS IN HOME WARRANTY SERVICE
11		-	CONTRACTS
12		-	, AND, IN CONNECTION THEREWITH, REQUIRING A HOME
13		-	WARRANTY SERVICE CONTRACT TO INCLUDE TERMS ALLOWING A
14		-	HOMEOWNER TO REPLACE ANY OF CERTAIN GAS
15		-	-FUELED DEVICES
16		-	WITH A DEVICE THAT OPERATES ON ELECTRICITY
17		-	.
18		-	Be it enacted by the General Assembly of the State of Colorado:
19		-	SECTION 1. Legislative declaration. (1) The general assembly
20		-	finds and declares that:
21		-	(a) Reducing greenhouse gas emissions and improving air quality
22		-	are integral to preserving Colorado's way of life, the health of Colorado
23		-	communities, and the state's natural environment;
24		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
25		-	officers and the Governor. To determine whether the Governor has signed the bill
26		-	or taken other action on it, please consult the legislative status sheet, the legislative
27		-	history, or the Session Laws.
28		-	________
29		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
30		-	through words or numbers indicate deletions from existing law and such material is not part of
31		-	the act. (b) Clean and energy-efficient electric appliances can make use of
32		-	the state's increasing renewable energy resources and reduce the production
33		-	and use of fossil fuels;
34		-	(c) Fossil fuel production and use are two of the largest contributors
35		-	to ozone and poor outdoor air quality in Colorado; and
36		-	(d) Homes without gas appliances have better indoor air quality,
37		-	which is particularly important for the health of Colorado's children and
38		-	seniors.
39		-	(2) The general assembly also finds and declares that:
40		-	(a) Home warranty service contracts, also known as home
41		-	warranties, cover repairs and replacements for expensive home appliances
42		-	and systems;
43		-	(b) Home warranties that replace only existing aging appliances on
44		-	a like-for-like basis can create disincentives for people to purchase cleaner
45		-	and more energy-efficient appliances; and
46		-	(c) In keeping with the state's goals concerning greenhouse gas
47		-	reduction and air quality improvement, companies that offer home
48		-	warranties to Coloradans should help consumers purchase cleaner and more
49		-	energy-efficient replacement appliances.
50		-	(3) Therefore, the general assembly finds and declares that it is in
51		-	the state's best interest to require home warranties to include terms that
52		-	allow homeowners to replace gas appliances with electric replacements.
53		-	SECTION 2. In Colorado Revised Statutes, amend 12-10-901 as
54		-	follows:
55		-	12-10-901. Definitions. As used in this part 9, unless the context
56		-	otherwise requires:
	13	+	ONCERNING MANDATORY PROVISIONS IN HOME WARRANTY SERVICE101
	14	+	CONTRACTS, AND, IN CONNECTION THEREWITH , REQUIRING A102
	15	+	HOME WARRANTY SERVICE CONTRACT TO INCLUDE TERMS103
	16	+	ALLOWING A HOMEOWNER TO REPLACE ANY OF CERTAIN104
	17	+	GAS-FUELED DEVICES WITH A DEVICE THAT OPERATES ON105
	18	+	ELECTRICITY.
	19	+	106
	20	+	Bill Summary
	21	+	(Note: This summary applies to this bill as introduced and does
	22	+	not reflect any amendments that may be subsequently adopted. If this bill
	23	+	passes third reading in the house of introduction, a bill summary that
	24	+	applies to the reengrossed version of this bill will be available at
	25	+	http://leg.colorado.gov
	26	+	.)
	27	+	The bill requires that, on and after January 1, 2024, every home
	28	+	warranty service contract that provides coverage for the replacement of
	29	+	SENATE
	30	+	Amended 3rd Reading
	31	+	March 7, 2023
	32	+	SENATE
	33	+	Amended 2nd Reading
	34	+	March 6, 2023
	35	+	HOUSE
	36	+	3rd Reading Unamended
	37	+	February 14, 2023
	38	+	HOUSE
	39	+	Amended 2nd Reading
	40	+	February 13, 2023
	41	+	HOUSE SPONSORSHIP
	42	+	Joseph and Kipp, Garcia, Lindstedt, Ortiz, Sharbini, Velasco, Willford, Bird,
	43	+	Boesenecker, Brown, Dickson, English, Epps, Froelich, Hamrick, Herod, Jodeh, Lindsay,
	44	+	Mabrey, McCormick, Ricks, Sirota, Snyder, Weissman, Woodrow
	45	+	SENATE SPONSORSHIP
	46	+	Cutter, Marchman, Fenberg, Hinrichsen, Kolker, Moreno, Priola, Winter F.
	47	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	48	+	Capital letters or bold & italic numbers indicate new material to be added to existing law.
	49	+	Dashes through the words or numbers indicate deletions from existing law. any of certain gas-fueled appliances must include terms:
	50	+	! Allowing the homeowner to replace the gas-fueled
	51	+	appliance with a similar device of the homeowner's
	52	+	choosing that operates on electricity rather than gas;
	53	+	! Describing minimum efficiency and performance standards
	54	+	for each gas-fueled appliance and for electric replacements;
	55	+	and
	56	+	! Allowing the homeowner to receive an equivalent cash
	57	+	value of a gas-fueled appliance in lieu of a replacement
	58	+	appliance.
	59	+	Be it enacted by the General Assembly of the State of Colorado:1
	60	+	SECTION 1. Legislative declaration. (1) The general assembly2
	61	+	finds and declares that:3
	62	+	(a) Reducing greenhouse gas emissions and improving air quality4
	63	+	are integral to preserving Colorado's way of life, the health of Colorado5
	64	+	communities, and the state's natural environment;6
	65	+	(b) Clean and energy-efficient electric appliances can make use7
	66	+	of the state's increasing renewable energy resources and reduce the8
	67	+	production and use of fossil fuels;9
	68	+	(c) Fossil fuel production and use are two of the largest10
	69	+	contributors to ozone and poor outdoor air quality in Colorado; and11
	70	+	(d) Homes without gas appliances have better indoor air quality,12
	71	+	which is particularly important for the health of Colorado's children and13
	72	+	seniors.14
	73	+	(2) The general assembly also finds and declares that:15
	74	+	(a) Home warranty service contracts, also known as home16
	75	+	warranties, cover repairs and replacements for expensive home appliances17
	76	+	and systems;18
	77	+	(b) Home warranties that replace only existing aging appliances19
	78	+	on a like-for-like basis can create disincentives for people to purchase20
	79	+	1134-2- cleaner and more energy-efficient appliances; and1
	80	+	(c) In keeping with the state's goals concerning greenhouse gas2
	81	+	reduction and air quality improvement, companies that offer home3
	82	+	warranties to Coloradans should help consumers purchase cleaner and4
	83	+	more energy-efficient replacement appliances.5
	84	+	(3) Therefore, the general assembly finds and declares that it is in6
	85	+	the state's best interest to require home warranties to include terms that7
	86	+	allow homeowners to replace gas appliances with electric replacements.8
	87	+	SECTION 2. In Colorado Revised Statutes, amend 12-10-901 as9
	88	+	follows:10
	89	+	12-10-901. Definitions. As used in this part 9, unless the context11
	90	+	otherwise requires:12
57	91		(1) "G
58		-	AS-FUELED APPLIANCE" MEANS A FURNACE, HVAC SYSTEM,
59		-	BOILER, WATER HEATER, OVEN, STOVE, OR DRYER THAT ~~DIRECTLY COMBUSTS~~
60		-	A GASEOUS OR LIQUID FUEL TO PROVIDE SERVICES WITHIN ~~A HOME~~
61		-	.
62		-	~~PAGE 2-HOUSE BILL 23-1134~~ (2) "~~HEAT PUMP" MEANS AN ELECTRICAL DEVICE THAT USES A~~
63		-	~~REFRIGERATION CYCLE TO~~
64		-	:
	92	+	AS-FUELED APPLIANCE" MEANS A FURNACE, HVAC SYSTEM,13
	93	+	BOILER, WATER HEATER, OVEN, STOVE, OR DRYER THAT DIRECTLY14
	94	+	COMBUSTS A GASEOUS OR LIQUID FUEL TO PROVIDE SERVICES WITHIN A15
	95	+	HOME.16
	96	+	(2) "H
	97	+	EAT PUMP" MEANS AN ELECTRICAL DEVICE THAT USES A17
	98	+	REFRIGERATION CYCLE TO:18
65	99		(a) H
66		-	EAT THE INTERNAL SPACE OF A STRUCTURE BY TRANSFERRING
67		-	THERMAL ENERGY FROM OUTSIDE OF THE STRUCTURE TO INSIDE THE
68		-	STRUCTURE
69		-	; OR
70		-	(b) COOL THE INTERNAL SPACE OF A STRUCTURE BY TRANSFERRING
71		-	THERMAL ENERGY FROM THE INSIDE OF THE STRUCTURE TO THE OUTSIDE OF
72		-	THE STRUCTURE
73		-	.
	100	+	EAT THE INTERNAL SPACE OF A STRUCTURE BY TRANSFERRING19
	101	+	THERMAL ENERGY FROM OUTSIDE OF THE STRUCTURE TO INSIDE THE20
	102	+	STRUCTURE; OR21
	103	+	(b) C
	104	+	OOL THE INTERNAL SPACE OF A STRUCTURE BY TRANSFERRING22
	105	+	THERMAL ENERGY FROM THE INSIDE OF THE STRUCTURE TO THE OUTSIDE23
	106	+	OF THE STRUCTURE.24
74	107		(1)
75		-	(3) "Home warranty service company" referred to in this ~~part 9~~
76		-	as the OR "company" means any person who THAT undertakes ~~a contractual~~
77		-	obligation on a new or preowned home through a ~~home warranty service~~
78		-	~~contract.~~
79		-	~~(2)~~
80		-	(4) (a) "Home warranty service contract" means any ~~contract or~~
81		-	agreement whereby a person undertakes for a predetermined fee, ~~with~~
82		-	respect to a specified period of time, to maintain, repair, or replace any or
83		-	all of the following elements of a specified new or preowned home:
84		-	(I) Structural components, such as the roof, foundation, basement,
85		-	walls, ceilings, or floors;
86		-	(II) Utility systems, such as electrical, air conditioning, plumbing,
87		-	HVAC, and heating systems, including furnaces; ~~and~~
88		-	(III) Appliances, such as stoves, washers, dryers, and dishwashers.
89		-	(b) "Home warranty service contract" does not include:
90		-	(I) Any contract or agreement whereby a public utility ~~undertakes~~
91		-	for a predetermined fee, with respect to a specified period of time, ~~to repair~~
92		-	or replace any or all of the elements of a specified new ~~or preowned home~~
93		-	as specified in subsection (2)(a)(II) or (2)(a)(III)
94		-	(4)(a)(II) ~~OR (4)(a)(III) of~~
95		-	this section; or
96		-	(II) A builder's warranty provided in connection with the sale ~~of a~~
97		-	new home.
98		-	~~PAGE 3-HOUSE BILL 23-1134~~ (5) "HVAC ~~SYSTEM" MEANS A HEATING, VENTILATION, AND AIR~~
99		-	~~CONDITIONING~~ SYSTEM
100		-	.
	108	+	(3) "Home warranty service company" referred to in this part25
	109	+	9 as the OR "company" means any person who THAT undertakes a26
	110	+	contractual obligation on a new or preowned home through a home27
	111	+	1134
	112	+	-3- warranty service contract.1
	113	+	(2) (4) (a) "Home warranty service contract" means any contract2
	114	+	or agreement whereby a person undertakes for a predetermined fee, with3
	115	+	respect to a specified period of time, to maintain, repair, or replace any or4
	116	+	all of the following elements of a specified new or preowned home:5
	117	+	(I) Structural components, such as the roof, foundation, basement,6
	118	+	walls, ceilings, or floors;7
	119	+	(II) Utility systems, such as electrical, air conditioning, plumbing,8
	120	+	HVAC, and heating systems, including furnaces; and9
	121	+	(III) Appliances, such as stoves, washers, dryers, and dishwashers.10
	122	+	(b) "Home warranty service contract" does not include:11
	123	+	(I) Any contract or agreement whereby a public utility undertakes12
	124	+	for a predetermined fee, with respect to a specified period of time, to13
	125	+	repair or replace any or all of the elements of a specified new or14
	126	+	preowned home as specified in subsection (2)(a)(II) or (2)(a)(III)15
	127	+	(4)(a)(II)
	128	+	OR (4)(a)(III) of this section; or16
	129	+	(II) A builder's warranty provided in connection with the sale of17
	130	+	a new home.18
	131	+	(5) "HVAC
	132	+	SYSTEM" MEANS A HEATING, VENTILATION, AND AIR19
	133	+	CONDITIONING SYSTEM.20
101	134		(3)
102		-	(6) "Person" includes an individual, company, corporation,
103		-	association, agent, and every other legal entity.
104		-	(4) (7) "Preowned" means a single-family residence, residential unit
105		-	in a multiple-dwelling structure, or mobile home on a foundation ANY OF
106		-	THE FOLLOWING
107		-	that is occupied as a residence and not owned by the
108		-	builder-developer or first occupant:
	135	+	(6) "Person" includes an individual, company, corporation,21
	136	+	association, agent, and every other legal entity.22
	137	+	(4) (7) "Preowned" means a single-family residence, residential23
	138	+	unit in a multiple-dwelling structure, or mobile home on a foundation24
	139	+	ANY OF THE FOLLOWING that is occupied as a residence and not owned by25
	140	+	the builder-developer or first occupant:26
109	141		(a) A
110		-	SINGLE-FAMILY RESIDENCE;
111		-	(b) A
112		-	RESIDENTIAL UNIT IN A MULTIPLE-DWELLING STRUCTURE; OR
113		-	(c) A MOBILE HOME ON A FOUNDATION .
114		-	SECTION 3. In Colorado Revised Statutes, 12-10-903, add (2) as
115		-	follows:
	142	+	SINGLE-FAMILY RESIDENCE;27
	143	+	1134
	144	+	-4- (b) A RESIDENTIAL UNIT IN A MULTIPLE-DWELLING STRUCTURE; OR1
	145	+	(c) A
	146	+	MOBILE HOME ON A FOUNDATION .2
	147	+	SECTION 3. In Colorado Revised Statutes, 12-10-903, add (2)3
	148	+	as follows:4
116	149		12-10-903. Contract requirements. (2) (a) A
117		-	HOME ~~WARRANTY~~
118		-	SERVICE CONTRACT ISSUED OR RENEWED IN THIS STATE ON OR AFTER
119		-	~~JULY~~
120		-	1, 2024, ~~THAT PROVIDES COVERAGE FOR THE REPLACEMENT OF A~~
121		-	~~GAS~~
122		-	-FUELED APPLIANCE MUST INCLUDE TERMS :
	150	+	HOME WARRANTY5
	151	+	SERVICE CONTRACT ISSUED OR RENEWED IN THIS STATE ON OR AFTER JULY6
	152	+	1,
	153	+	2024,
	154	+	THAT PROVIDES COVERAGE FOR THE REPLACEMENT OF A7
	155	+	GAS-FUELED APPLIANCE MUST INCLUDE TERMS :8
123	156		(I) A
124		-	LLOWING THE HOMEOWNER THE OPTION TO REPLACE THE
125		-	GAS
126		-	-FUELED APPLIANCE WITH A SIMILAR DEVICE OF THE HOMEOWNER 'S
127		-	CHOOSING THAT OPERATES ON ELECTRICITY RATHER THAN GAS
128		-	. A HOME
129		-	WARRANTY SERVICE CONTRACT MAY REQUIRE A HOMEOWNER TO PAY ANY
130		-	ADDITIONAL COST TO REPLACE A GAS
131		-	-FUELED APPLIANCE WITH AN
132		-	APPLIANCE THAT HAS A COST THAT EXCEEDS THE COST OF REPLACING THE
133		-	GAS
134		-	-FUELED APPLIANCE WITH ANOTHER GAS -FUELED APPLIANCE UNDER THE
135		-	TERMS OF THE HOME WARRANTY SERVICE CONTRACT
136		-	; EXCEPT THAT ANY
137		-	ADDITIONAL COST TO THE HOMEOWNER FOR THE REPLACEMENT ELECTRIC
138		-	APPLIANCE
139		-	, EXCLUDING ANY INSTALLATION OR OTHER ASSOCIATED COSTS ,
140		-	MUST NOT EXCEED THE RETAIL COST OF THE REPLACEMENT ELECTRIC
141		-	APPLIANCE MINUS THE RETAIL COST OF A REPLACEMENT GAS
142		-	-FUELED
143		-	APPLIANCE
144		-	.
145		-	(II) P
146		-	ROVIDING THAT THE HOME WARRANTY SERVICE COMPANY IS
147		-	PAGE 4-HOUSE BILL 23-1134 REQUIRED TO PROVIDE A REPLACEMENT APPLIANCE THAT SATISFIES THE
148		-	EFFICIENCY REQUIREMENTS SET FORTH IN ARTICLE
149		-	7.5 OF TITLE 6 AND ANY
150		-	OTHER STATE LAW
151		-	.
	157	+	LLOWING THE HOMEOWNER THE OPTION
	158	+	TO REPLACE THE9
	159	+	GAS-FUELED APPLIANCE WITH A SIMILAR DEVICE OF THE HOMEOWNER 'S10
	160	+	CHOOSING THAT OPERATES ON ELECTRICITY RATHER THAN GAS. A HOME11
	161	+	WARRANTY SERVICE CONTRACT MAY REQUIRE A HOMEOWNER TO PAY ANY12
	162	+	ADDITIONAL COST TO REPLACE A GAS-FUELED APPLIANCE WITH AN13
	163	+	APPLIANCE THAT HAS A COST THAT EXCEEDS THE COST OF REPLACING14
	164	+	THE GAS-FUELED APPLIANCE WITH ANOTHER GAS-FUELED APPLIANCE15
	165	+	UNDER THE TERMS OF THE HOME WARRANTY SERVICE CONTRACT; EXCEPT16
	166	+	THAT ANY ADDITIONAL COST TO THE HOMEOWNER FOR THE REPLACEMENT17
	167	+	ELECTRIC APPLIANCE, EXCLUDING ANY INSTALLATION OR OTHER18
	168	+	ASSOCIATED COSTS, MUST NOT EXCEED THE RETAIL COST OF THE19
	169	+	REPLACEMENT ELECTRIC APPLIANCE MINUS THE RETAIL COST OF A20
	170	+	REPLACEMENT GAS-FUELED APPLIANCE.21
	171	+	(II) PROVIDING THAT THE HOME WARRANTY SERVICE COMPANY IS22
	172	+	REQUIRED TO PROVIDE A REPLACEMENT APPLIANCE THAT SATISFIES THE23
	173	+	EFFICIENCY REQUIREMENTS SET FORTH IN ARTICLE 7.5 OF TITLE 6 AND ANY24
	174	+	OTHER STATE LAW.25
152	175		(b) (I) I
153		-	N THE CASE OF REPLACEMENT OF A GAS -FUELED FURNACE,
	176	+	N THE CASE OF REPLACEMENT OF A GAS-FUELED FURNACE,26
154	177		HVAC
155		-	SYSTEM, BOILER, OR WATER HEATER, A HOME WARRANTY SERVICE
156		-	CONTRACT MUST INCLUDE TERMS THAT ALLOW THE HOMEOWNER TO
157		-	REPLACE THE FURNACE
158		-	, HVAC SYSTEM, BOILER, OR WATER HEATER WITH
159		-	A HEAT PUMP
160		-	-BASED SYSTEM.
	178	+	SYSTEM, BOILER, OR WATER HEATER, A HOME WARRANTY SERVICE27
	179	+	1134
	180	+	-5- CONTRACT MUST INCLUDE TERMS THAT ALLOW THE HOMEOWNER TO1
	181	+	REPLACE THE FURNACE, HVAC SYSTEM, BOILER, OR WATER HEATER WITH2
	182	+	A HEAT PUMP-BASED SYSTEM.3
161	183		(II) I
162		-	N THE CASE OF REPLACEMENT OF A GAS-FUELED STOVE, A HOME
163		-	WARRANTY SERVICE CONTRACT MUST INCLUDE TERMS THAT ALLOW THE
164		-	HOMEOWNER TO REPLACE THE GAS
165		-	-FUELED STOVE WITH EITHER AN
166		-	ELECTRIC STOVE OR AN INDUCTION STOVE
167		-	, AT THE HOMEOWNER 'S
168		-	DISCRETION
169		-	.
170		-	SECTION 4. Act subject to petition - effective date -
171		-	applicability. (1) This act takes effect at 12:01 a.m. on the day following
172		-	the expiration of the ninety-day period after final adjournment of the
173		-	general assembly; except that, if a referendum petition is filed pursuant to
174		-	section 1 (3) of article V of the state constitution against this act or an item,
175		-	section, or part of this act within such period, then the act, item, section, or
176		-	part will not take effect unless approved by the people at the general
177		-	election to be held in November 2024 and, in such case, will take effect on
178		-	the date of the official declaration of the vote thereon by the governor.
179		-	PAGE 5-HOUSE BILL 23-1134 (2) This act applies to home warranty service contracts executed or
180		-	renewed on or after July 1, 2024.
181		-	____________________________ ____________________________
182		-	Julie McCluskie Steve Fenberg
183		-	SPEAKER OF THE HOUSE PRESIDENT OF
184		-	OF REPRESENTATIVES THE SENATE
185		-	____________________________ ____________________________
186		-	Robin Jones Cindi L. Markwell
187		-	CHIEF CLERK OF THE HOUSE SECRETARY OF
188		-	OF REPRESENTATIVES THE SENATE
189		-	APPROVED________________________________________
190		-	(Date and Time)
191		-	_________________________________________
192		-	Jared S. Polis
193		-	GOVERNOR OF THE STATE OF COLORADO
194		-	PAGE 6-HOUSE BILL 23-1134
	184	+	N THE CASE OF REPLACEMENT OF A GAS -FUELED STOVE, A4
	185	+	HOME WARRANTY SERVICE CONTRACT MUST INCLUDE TERMS THAT ALLOW5
	186	+	THE HOMEOWNER TO REPLACE THE GAS -FUELED STOVE WITH EITHER AN6
	187	+	ELECTRIC STOVE OR AN INDUCTION STOVE , AT THE HOMEOWNER 'S7
	188	+	DISCRETION.8
	189	+	SECTION 4. Act subject to petition - effective date -9
	190	+	applicability. (1) This act takes effect at 12:01 a.m. on the day following10
	191	+	the expiration of the ninety-day period after final adjournment of the11
	192	+	general assembly; except that, if a referendum petition is filed pursuant12
	193	+	to section 1 (3) of article V of the state constitution against this act or an13
	194	+	item, section, or part of this act within such period, then the act, item,14
	195	+	section, or part will not take effect unless approved by the people at the15
	196	+	general election to be held in November 2024 and, in such case, will take16
	197	+	effect on the date of the official declaration of the vote thereon by the17
	198	+	governor.18
	199	+	(2) This act applies to home warranty service contracts executed19
	200	+	or renewed on or after July 1,
	201	+	2024.20
	202	+	1134
	203	+	-6-