HOUSE BILL 23-1134
BY REPRESENTATIVE(S) Joseph and Kipp, Garcia, Lindstedt, Ortiz,
Sharbini, Velasco, Willford, Bird, Boesenecker, Brown, Dickson, English,
Epps, Froelich, Hamrick, Herod, Jodeh, Lindsay, Mabrey, McCormick,
Ricks, Sirota, Snyder, Weissman, Woodrow, Michaelson Jenet, Titone,
Valdez, Vigil, McCluskie;
also SENATOR(S) Cutter, Marchman, Hinrichsen, Kolker, Moreno, Priola,
Winter F., Fenberg.
C
ONCERNING MANDATORY PROVISIONS IN HOME WARRANTY SERVICE
CONTRACTS
, AND, IN CONNECTION THEREWITH, REQUIRING A HOME
WARRANTY SERVICE CONTRACT TO INCLUDE TERMS ALLOWING A
HOMEOWNER TO REPLACE ANY OF CERTAIN GAS
-FUELED DEVICES
WITH A DEVICE THAT OPERATES ON ELECTRICITY
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1) The general assembly
finds and declares that:
(a) Reducing greenhouse gas emissions and improving air quality
are integral to preserving Colorado's way of life, the health of Colorado
communities, and the state's natural environment;
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (b) Clean and energy-efficient electric appliances can make use of
the state's increasing renewable energy resources and reduce the production
and use of fossil fuels;
(c) Fossil fuel production and use are two of the largest contributors
to ozone and poor outdoor air quality in Colorado; and
(d) Homes without gas appliances have better indoor air quality,
which is particularly important for the health of Colorado's children and
seniors.
(2) The general assembly also finds and declares that:
(a) Home warranty service contracts, also known as home
warranties, cover repairs and replacements for expensive home appliances
and systems;
(b) Home warranties that replace only existing aging appliances on
a like-for-like basis can create disincentives for people to purchase cleaner
and more energy-efficient appliances; and
(c) In keeping with the state's goals concerning greenhouse gas
reduction and air quality improvement, companies that offer home
warranties to Coloradans should help consumers purchase cleaner and more
energy-efficient replacement appliances.
(3) Therefore, the general assembly finds and declares that it is in
the state's best interest to require home warranties to include terms that
allow homeowners to replace gas appliances with electric replacements.
SECTION 2. In Colorado Revised Statutes, amend 12-10-901 as
follows:
12-10-901. Definitions. As used in this part 9, unless the context
otherwise requires:
(1) "G
AS-FUELED APPLIANCE" MEANS A FURNACE, HVAC SYSTEM,
BOILER, WATER HEATER, OVEN, STOVE, OR DRYER THAT DIRECTLY COMBUSTS
A GASEOUS OR LIQUID FUEL TO PROVIDE SERVICES WITHIN A HOME
.
PAGE 2-HOUSE BILL 23-1134 (2) "HEAT PUMP" MEANS AN ELECTRICAL DEVICE THAT USES A
REFRIGERATION CYCLE TO
:
(a) H
EAT THE INTERNAL SPACE OF A STRUCTURE BY TRANSFERRING
THERMAL ENERGY FROM OUTSIDE OF THE STRUCTURE TO INSIDE THE
STRUCTURE
; OR
(b) COOL THE INTERNAL SPACE OF A STRUCTURE BY TRANSFERRING
THERMAL ENERGY FROM THE INSIDE OF THE STRUCTURE TO THE OUTSIDE OF
THE STRUCTURE
.
(1)
(3) "Home warranty service company" referred to in this part 9
as the OR "company" means any person who THAT undertakes a contractual
obligation on a new or preowned home through a home warranty service
contract.
(2)
(4) (a) "Home warranty service contract" means any contract or
agreement whereby a person undertakes for a predetermined fee, with
respect to a specified period of time, to maintain, repair, or replace any or
all of the following elements of a specified new or preowned home:
(I) Structural components, such as the roof, foundation, basement,
walls, ceilings, or floors;
(II) Utility systems, such as electrical, air conditioning, plumbing,
HVAC, and heating systems, including furnaces; and
(III) Appliances, such as stoves, washers, dryers, and dishwashers.
(b) "Home warranty service contract" does not include:
(I) Any contract or agreement whereby a public utility undertakes
for a predetermined fee, with respect to a specified period of time, to repair
or replace any or all of the elements of a specified new or preowned home
as specified in subsection (2)(a)(II) or (2)(a)(III)
(4)(a)(II) OR (4)(a)(III) of
this section; or
(II) A builder's warranty provided in connection with the sale of a
new home.
PAGE 3-HOUSE BILL 23-1134 (5) "HVAC SYSTEM" MEANS A HEATING, VENTILATION, AND AIR
CONDITIONING SYSTEM
.
(3)
(6) "Person" includes an individual, company, corporation,
association, agent, and every other legal entity.
(4) (7) "Preowned" means a single-family residence, residential unit
in a multiple-dwelling structure, or mobile home on a foundation ANY OF
THE FOLLOWING
that is occupied as a residence and not owned by the
builder-developer or first occupant:
(a) A
SINGLE-FAMILY RESIDENCE;
(b) A
RESIDENTIAL UNIT IN A MULTIPLE-DWELLING STRUCTURE; OR
(c) A MOBILE HOME ON A FOUNDATION .
SECTION 3. In Colorado Revised Statutes, 12-10-903, add (2) as
follows:
12-10-903. Contract requirements. (2) (a) A
HOME WARRANTY
SERVICE CONTRACT ISSUED OR RENEWED IN THIS STATE ON OR AFTER
JULY
1, 2024, THAT PROVIDES COVERAGE FOR THE REPLACEMENT OF A
GAS
-FUELED APPLIANCE MUST INCLUDE TERMS :
(I) A
LLOWING THE HOMEOWNER THE OPTION TO REPLACE THE
GAS
-FUELED APPLIANCE WITH A SIMILAR DEVICE OF THE HOMEOWNER 'S
CHOOSING THAT OPERATES ON ELECTRICITY RATHER THAN GAS
. A HOME
WARRANTY SERVICE CONTRACT MAY REQUIRE A HOMEOWNER TO PAY ANY
ADDITIONAL COST TO REPLACE A GAS
-FUELED APPLIANCE WITH AN
APPLIANCE THAT HAS A COST THAT EXCEEDS THE COST OF REPLACING THE
GAS
-FUELED APPLIANCE WITH ANOTHER GAS -FUELED APPLIANCE UNDER THE
TERMS OF THE HOME WARRANTY SERVICE CONTRACT
; EXCEPT THAT ANY
ADDITIONAL COST TO THE HOMEOWNER FOR THE REPLACEMENT ELECTRIC
APPLIANCE
, EXCLUDING ANY INSTALLATION OR OTHER ASSOCIATED COSTS ,
MUST NOT EXCEED THE RETAIL COST OF THE REPLACEMENT ELECTRIC
APPLIANCE MINUS THE RETAIL COST OF A REPLACEMENT GAS
-FUELED
APPLIANCE
.
(II) P
ROVIDING THAT THE HOME WARRANTY SERVICE COMPANY IS
PAGE 4-HOUSE BILL 23-1134 REQUIRED TO PROVIDE A REPLACEMENT APPLIANCE THAT SATISFIES THE
EFFICIENCY REQUIREMENTS SET FORTH IN ARTICLE
7.5 OF TITLE 6 AND ANY
OTHER STATE LAW
.
(b) (I) I
N THE CASE OF REPLACEMENT OF A GAS -FUELED FURNACE,
HVAC
SYSTEM, BOILER, OR WATER HEATER, A HOME WARRANTY SERVICE
CONTRACT MUST INCLUDE TERMS THAT ALLOW THE HOMEOWNER TO
REPLACE THE FURNACE
, HVAC SYSTEM, BOILER, OR WATER HEATER WITH
A HEAT PUMP
-BASED SYSTEM.
(II) I
N THE CASE OF REPLACEMENT OF A GAS-FUELED STOVE, A HOME
WARRANTY SERVICE CONTRACT MUST INCLUDE TERMS THAT ALLOW THE
HOMEOWNER TO REPLACE THE GAS
-FUELED STOVE WITH EITHER AN
ELECTRIC STOVE OR AN INDUCTION STOVE
, AT THE HOMEOWNER 'S
DISCRETION
.
SECTION 4. Act subject to petition - effective date -
applicability. (1) This act takes effect at 12:01 a.m. on the day following
the expiration of the ninety-day period after final adjournment of the
general assembly; except that, if a referendum petition is filed pursuant to
section 1 (3) of article V of the state constitution against this act or an item,
section, or part of this act within such period, then the act, item, section, or
part will not take effect unless approved by the people at the general
election to be held in November 2024 and, in such case, will take effect on
the date of the official declaration of the vote thereon by the governor.
PAGE 5-HOUSE BILL 23-1134 (2) This act applies to home warranty service contracts executed or
renewed on or after July 1, 2024.
____________________________ ____________________________
Julie McCluskie Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 6-HOUSE BILL 23-1134