Colorado 2025 Regular Session

Colorado House Bill HB1123 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		First Regular Session
2	2		Seventy-fifth General Assembly
3	3		STATE OF COLORADO
4		-	~~ENGROSSED~~
5		-	~~This Version Includes All Amendments Adopted~~
6		-	~~on Second Reading in the House of Introduction~~
	4	+	INTRODUCED
	5	+
	6	+
7	7		LLS NO. 25-0200.02 Chelsea Princell x4335
8	8		HOUSE BILL 25-1123
9	9		House Committees Senate Committees
10	10		Judiciary
11	11		A BILL FOR AN ACT
12	12		C
13	13		ONCERNING ALTERNATIVE DISPUTE RESOLUTION FOR DISPUTES THAT101
14	14		ARISE BETWEEN A UNIT OWNER AND A UNIT OWNERS '102
15	15		ASSOCIATION.103
16	16		Bill Summary
17	17		(Note: This summary applies to this bill as introduced and does
18	18		not reflect any amendments that may be subsequently adopted. If this bill
19	19		passes third reading in the house of introduction, a bill summary that
20	20		applies to the reengrossed version of this bill will be available at
21	21		http://leg.colorado.gov
22	22		.)
23	23		Under current law, common interest communities are encouraged
24	24		to use mediation prior to filing a complaint with the court. The bill
25	25		requires a dispute between a unit owner and a unit owners' association to
26	26		go through an internal dispute resolution process and mediation before the
27	27		parties can file a complaint with the court. If the parties are unable to
28		-	HOUSE
29		-	Amended 2nd Reading
30		-	April 3, 2025
31	28		HOUSE SPONSORSHIP
32	29		Ricks and Joseph,
33	30		SENATE SPONSORSHIP
34	31		(None),
35	32		Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
36	33		Capital letters or bold & italic numbers indicate new material to be added to existing law.
37	34		Dashes through the words or numbers indicate deletions from existing law. reach a mediation agreement, the bill allows the parties to undergo
38	35		arbitration or commence a legal proceeding.
39	36		Be it enacted by the General Assembly of the State of Colorado:1
40	37		SECTION 1. In Colorado Revised Statutes, repeal and reenact,2
41	38		with amendments, 38-33.3-124 as follows:3
42		-	38-33.3-124. Mandatory alternative dispute resolution -4
43		-	purpose - legislative declaration - definitions. (1) THE GENERAL5
	39	+	38-33.3-124. Legislative declaration - purpose - mandatory4
	40	+	alternative dispute resolution - definitions. (1) T
	41	+	HE GENERAL5
44	42		ASSEMBLY FINDS AND DECLARES THAT THE PURPOSE OF THIS SECTION IS TO6
45	43		PROVIDE AN EFFICIENT, FAIR, AND COST-EFFECTIVE PROCESS FOR7
46	44		RESOLVING DISPUTES BETWEEN A UNIT OWNER AND A UNIT OWNERS '8
47		-	ASSOCIATION, WHILE PRESERVING THE INTEGRITY OF COMMUNITY9
48		-	RELATIONS AND MINIMIZING THE BURDEN ON THE JUDICIAL SYSTEM .10
49		-	(2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE11
	45	+	ASSOCIATION WHILE PRESERVING THE INTEGRITY OF COMMUNITY9
	46	+	RELATIONSHIPS AND MINIMIZING THE BURDEN ON THE JUDICIAL SYSTEM .10
	47	+	(2) A
	48	+	S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE11
50	49		REQUIRES:12
51		-	(a) "DISPUTE" MEANS ANY CONFLICT, CONTROVERSY, OR13
52		-	DISAGREEMENT BETWEEN A UNIT OWNER AND A UNIT OWNERS'14
53		-	ASSOCIATION.15
54		-	(b) "MEDIATION" HAS THE SAME MEANING AS SET FORTH IN16
55		-	SECTION 13-22-302.17
56		-	(3) A DISPUTE BETWEEN A UNIT OWNER AND A UNIT OWNERS'18
57		-	ASSOCIATION MUST UNDERGO AN INFORMAL NEGOTIATION PURSUANT TO19
58		-	SUBSECTION (4) OF THIS SECTION AND, IF UNSUCCESSFUL, MEDIATION20
59		-	AFTER FILING A LAWSUIT UNLESS MEDIATION HAS ALREADY BEEN21
60		-	ATTEMPTED.22
61		-	(4) (a) IN THE EVENT OF A DISPUTE, EITHER PARTY MAY REQUEST23
62		-	AN INFORMAL NEGOTIATION TO RESOLVE THE DISPUTE .24
63		-	(b) AFTER A PARTY REQUESTS AN INFORMAL NEGOTIATION, THE25
64		-	1123-2- UNIT OWNERS' ASSOCIATION SHALL SUBMIT A WRITTEN NOTICE TO THE1
65		-	UNIT OWNER. THE WRITTEN NOTICE MUST INCLUDE :2
66		-	(I) A BRIEF DESCRIPTION OF THE DISPUTE BETWEEN THE PARTIES;3
67		-	(II) A REQUIREMENT THAT THE UNIT OWNER MEET WITH THE UNIT4
68		-	OWNERS' ASSOCIATION WITHIN SIXTY DAYS OF RECEIVING THE NOTICE;5
69		-	AND6
70		-	(III) A COPY OF THIS SECTION.7
71		-	(c) SERVICE OF THE NOTICE DESCRIBED IN SUBSECTION (4)(b) OF8
72		-	THIS SECTION MUST BE MADE BY CERTIFIED MAIL , RETURN RECEIPT9
73		-	REQUESTED.10
74		-	(d) THE INFORMAL NEGOTIATION DESCRIBED IN THIS SUBSECTION11
75		-	(4) MUST TAKE PLACE AT A REGULARLY SCHEDULED UNIT OWNERS'12
76		-	ASSOCIATION BOARD MEETING IN EXECUTIVE SESSION, OR, IF THERE IS NOT13
77		-	A MEETING SCHEDULED WITHIN SIXTY DAYS FOLLOWING DELIVERY OF THE14
78		-	WRITTEN NOTICE, AT A SPECIAL UNIT OWNERS' ASSOCIATION BOARD15
79		-	MEETING IN EXECUTIVE SESSION DURING THAT SIXTY-DAY PERIOD TO16
80		-	INFORMALLY NEGOTIATE A RESOLUTION OF THE DISPUTE .17
81		-	COMMUNICATIONS DURING THE UNIT OWNERS' ASSOCIATION BOARD18
82		-	MEETING DURING THE INFORMAL NEGOTIATION ARE CONFIDENTIAL AND19
83		-	PROTECTED COMMUNICATIONS CONSISTENT WITH RULE 408 OF THE20
84		-	COLORADO RULES OF EVIDENCE AND SECTION 13-22-307. THE PORTION OF21
85		-	THE UNIT OWNERS' ASSOCIATION BOARD MEETING IN WHICH AN INFORMAL22
86		-	NEGOTIATION TAKES PLACE MUST BE CLOSED TO ANYONE WHO IS NOT A23
87		-	PARTY TO THE DISPUTE THAT IS THE SUBJECT OF THE INFORMAL24
88		-	NEGOTIATION.25
89		-	(e) FOR DISPUTES GOVERNED BY THE DISPUTE RESOLUTION26
90		-	PROCESS DESCRIBED IN SECTION 38-33.3-209.5 (1.7), THE INFORMAL27
91		-	1123
92		-	-3- NEGOTIATION MUST TAKE PLACE PURSUANT TO THE PROCESS DESCRIBED1
93		-	IN SECTION 38-33.3-209.5 (1.7) PRIOR TO FILING A COMPLAINT IN COURT.2
94		-	(f) A PROVISION OF AN AGREEMENT ENTERED INTO BETWEEN THE3
95		-	PARTIES THAT RESOLVES THE DISPUTE IS NOT A WAIVER OF A COVENANT4
96		-	OR ENFORCEMENT RIGHT BY THE ASSOCIATION IN ANOTHER MATTER .5
97		-	(g) EITHER PARTY MAY BE REPRESENTED BY AN ATTORNEY AT THE6
98		-	INFORMAL NEGOTIATION AT THE PARTY 'S OWN EXPENSE.7
99		-	(5) (a) IN THE EVENT THAT THE DISPUTE IS NOT RESOLVED8
100		-	THROUGH INFORMAL NEGOTIATION AS REQUIRED IN SUBSECTION (4) OF9
101		-	THIS SECTION, EITHER PARTY MAY FILE A COMPLAINT IN A COURT OF10
102		-	COMPETENT JURISDICTION. ONCE A COMPLAINT IS FILED, BUT BEFORE AN11
103		-	ANSWER OR OTHER RESPONSIVE MOTION IS FILED, THE COURT SHALL12
104		-	ORDER MEDIATION UNLESS THE PARTIES HAVE ATTEMPTED VOLUNTARY13
105		-	MEDIATION ON ISSUES IDENTIFIED IN THE COMPLAINT WITHIN NINETY DAYS14
106		-	PRIOR TO THE DATE THE COMPLAINT IS FILED. THE COST OF MEDIATION15
107		-	MUST BE EQUALLY SHARED BY THE PARTIES .16
108		-	(b) THIS SUBSECTION (5) DOES NOT PRECLUDE THE PARTIES FROM17
109		-	VOLUNTARILY TAKING PART IN MEDIATION BEFORE FILING WITH A COURT18
110		-	OF COMPETENT JURISDICTION IF THE PARTIES ARE UNABLE TO REACH A19
111		-	RESOLUTION THROUGH AN INFORMAL NEGOTIATION PURSUANT TO20
112		-	SUBSECTION (4) OF THIS SECTION.21
113		-	(6) THIS SECTION DOES NOT APPLY TO A DISPUTE INVOLVING A22
114		-	REASONABLE THREAT OF IMMEDIATE INJURY, HARM, OR DAMAGE TO A23
115		-	PERSON OR PROPERTY.24
116		-	(7) A UNIT OWNERS' ASSOCIATION SHALL ANNUALLY PROVIDE A25
117		-	COPY OF THIS SECTION TO EACH OF ITS UNIT OWNERS .26
118		-	(8) A UNIT OWNERS' ASSOCIATION MUST UPDATE THE27
119		-	1123
120		-	-4- ASSOCIATION'S WRITTEN POLICIES TO COMPLY WITH THE REQUIREMENTS1
121		-	OF THIS SECTION AND PROVIDE A COPY OF THE UPDATED WRITTEN POLICY2
122		-	TO ITS UNIT OWNERS WITHIN FOURTEEN DAYS AFTER UPDATING THE3
123		-	WRITTEN POLICIES.4
	50	+	(a) "A
	51	+	RBITRATION" MEANS A BINDING PROCESS IN WHICH AN13
	52	+	ARBITRATOR HEARS THE FACTS OF THE DISPUTE AND ISSUES A FINAL14
	53	+	DECISION THAT IS ENFORCEABLE BY LAW .15
	54	+	(b) "D
	55	+	ISPUTE" MEANS ANY CONFLICT, CLAIM, OR DISAGREEMENT16
	56	+	BETWEEN A UNIT OWNER AND A UNIT OWNERS ' ASSOCIATION REGARDING17
	57	+	THE INTERPRETATION, ENFORCEMENT, OR APPLICATION OF THE COMMON18
	58	+	INTEREST COMMUNITY'S GOVERNING DOCUMENTS , POLICIES, OR ACTIONS.19
	59	+	"D
	60	+	ISPUTE" DOES NOT INCLUDE A CONFLICT, CLAIM, OR DISAGREEMENT20
	61	+	FILED PURSUANT TO PART 8 OF ARTICLE 20 OF TITLE 13, OR DISAGREEMENT21
	62	+	THAT INVOLVES A DECLARANT OR AN AFFILIATE OF A DECLARANT .22
	63	+	(c) "I
	64	+	NTERNAL DISPUTE RESOLUTION " MEANS A PROCESS FOR23
	65	+	RESOLVING CONFLICTS BETWEEN A UNIT OWNER AND A UNIT OWNERS '24
	66	+	ASSOCIATION.25
	67	+	HB25-1123-2- (d) "MEDIATION" MEANS A PROCESS THROUGH WHICH PARTIES1
	68	+	INVOLVED IN A DISPUTE CONCERNING MATTERS ARISING UNDER THIS2
	69	+	ARTICLE 33.3 MEET WITH A MEDIATOR TO DISCUSS THE MATTER , DEFINING3
	70	+	AND ARTICULATING THE ISSUES AND THEIR POSITIONS ON THE ISSUES , WITH4
	71	+	A GOAL OF RESOLVING THE DISPUTE.5
	72	+	(e) "M
	73	+	EDIATOR" MEANS AN INDIVIDUAL WHO IS TRAINED TO ASSIST6
	74	+	THE PARTIES IN REACHING A MUTUALLY ACCEPTABLE RESOLUTION OF THE7
	75	+	PARTIES' DISPUTES THROUGH THE IDENTIFICATION AND EVALUATION OF8
	76	+	ALTERNATIVES.9
	77	+	(3) A
	78	+	DISPUTE BETWEEN A UNIT OWNER AND A UNIT OWNERS '10
	79	+	ASSOCIATION ARISING UNDER THE PROVISIONS OF THIS ARTICLE 33.3 MUST11
	80	+	UNDERGO INTERNAL DISPUTE RESOLUTION AND , IF NECESSARY, MEDIATION12
	81	+	PRIOR TO THE COMMENCEMENT OF A LEGAL PROCEEDING .13
	82	+	(4) (a) I
	83	+	N THE EVENT OF A DISPUTE BETWEEN A UNIT OWNER AND14
	84	+	A UNIT OWNERS' ASSOCIATION, EITHER PARTY MAY SUBMIT A WRITTEN15
	85	+	REQUEST TO THE OTHER PARTY TO THE DISPUTE REQUESTING INTERNAL16
	86	+	DISPUTE RESOLUTION. THE WRITTEN REQUEST MUST INCLUDE :17
	87	+	(I) A
	88	+	BRIEF DESCRIPTION OF THE DISPUTE BETWEEN THE PARTIES ;18
	89	+	(II) A
	90	+	NOTICE THAT THE PARTY RECEIVING THE REQUEST FOR19
	91	+	RESOLUTION IS REQUIRED TO RESPOND WITHIN THIRTY DAYS AFTER20
	92	+	RECEIPT OR THE REQUEST WILL BE DEEMED REJECTED ; AND21
	93	+	(III) I
	94	+	F THE PARTY UPON WHOM THE REQUEST IS BEING SERVED IS22
	95	+	THE UNIT OWNER, A COPY OF THIS SECTION.23
	96	+	(b) S
	97	+	ERVICE OF THE REQUEST DESCRIBED IN SUBSECTION (4)(a) OF24
	98	+	THIS SECTION MUST BE MADE THROUGH PERSONAL DELIVERY , FIRST-CLASS25
	99	+	MAIL, EXPRESS MAIL, FACSIMILE TRANSMISSION, OR OTHER MEANS26
	100	+	REASONABLY CALCULATED TO PROVIDE THE PARTY UPON WHOM THE27
	101	+	HB25-1123
	102	+	-3- REQUEST IS SERVED ACTUAL NOTICE OF THE REQUEST .1
	103	+	(c) (I) A
	104	+	PARTY UPON WHOM A REQUEST IS SERVED HAS THIRTY2
	105	+	DAYS FOLLOWING SERVICE TO ACCEPT OR REJECT THE REQUEST . IF A3
	106	+	PARTY DOES NOT ACCEPT THE REQUEST WITHIN THIRTY DAYS , THE4
	107	+	REQUEST IS DEEMED REJECTED BY THE PARTY .5
	108	+	(II) I
	109	+	F A PARTY REJECTS A REQUEST TO PARTICIPATE IN INTERNAL6
	110	+	DISPUTE RESOLUTION, THE PARTIES MUST SIGN A WRITTEN STATEMENT7
	111	+	DETAILING THAT THE PARTIES ARE UNABLE TO PARTICIPATE IN INTERNAL8
	112	+	DISPUTE RESOLUTION AND STATE WHICH PARTY REFUSED TO PARTICIPATE9
	113	+	IN THE INTERNAL DISPUTE RESOLUTION MEETING .10
	114	+	(III) I
	115	+	F A PARTY REJECTS A REQUEST TO PARTICIPATE IN INTERNAL11
	116	+	DISPUTE RESOLUTION OR DOES NOT RESPOND TO THE REQUEST , EITHER12
	117	+	PARTY MAY START A LEGAL PROCEEDING .13
	118	+	(IV) T
	119	+	HE STATEMENT MUST BE FILED WITH THE COURT IF THE14
	120	+	PARTIES START A LEGAL PROCEEDING . IF THE DISPUTE PROCEEDS TO15
	121	+	COURT, THE COURT MAY TAKE THE PARTY 'S REFUSAL TO PARTICIPATE IN16
	122	+	AN INTERNAL DISPUTE RESOLUTION MEETING INTO CONSIDERATION IN17
	123	+	DETERMINING AN AWARD FOR ATTORNEY FEES .18
	124	+	(d) I
	125	+	F THE PARTY UPON WHOM THE REQUEST IS SERVED ACCEPTS19
	126	+	PARTICIPATION IN DISPUTE RESOLUTION , THE PARTIES MUST SET A20
	127	+	MUTUALLY AGREED UPON DATE AND TIME FOR AN INTERNAL DISPUTE21
	128	+	RESOLUTION MEETING. IF EITHER PARTY INTENDS TO BE REPRESENTED BY22
	129	+	AN ATTORNEY AT THE INTERNAL DISPUTE RESOLUTION MEETING , THAT23
	130	+	PARTY MUST NOTIFY THE OTHER PARTY AT LEAST FORTY -EIGHT HOURS24
	131	+	PRIOR TO THE INTERNAL DISPUTE RESOLUTION MEETING THAT THEY WILL25
	132	+	BE REPRESENTED BY AN ATTORNEY . IF A PARTY FAILS TO PROVIDE26
	133	+	ADVANCE NOTICE OF A PARTY 'S INTENT TO BE REPRESENTED BY AN27
	134	+	HB25-1123
	135	+	-4- ATTORNEY AT THE INTERNAL DISPUTE RESOLUTION MEETING , THE1
	136	+	INTERNAL DISPUTE RESOLUTION MEETING MUST BE RESCHEDULED IF THE2
	137	+	PARTY WHO DID NOT RECEIVE ADVANCE NOTICE REQUESTS THE MEETING3
	138	+	BE RESCHEDULED.4
	139	+	(5) (a) I
	140	+	F THE PARTIES ARE UNABLE TO RESOLVE THE DISPUTE5
	141	+	THROUGH INTERNAL DISPUTE RESOLUTION PURSUANT TO SUBSECTION (3)6
	142	+	OF THIS SECTION, THE PARTIES MUST UNDERGO MEDIATION PRIOR TO7
	143	+	STARTING A LEGAL PROCEEDING.8
	144	+	(b) T
	145	+	HE ASSOCIATION MUST PROVIDE THE UNIT OWNER WITH9
	146	+	NOTICE OF MEDIATION WITHIN FOURTEEN DAYS AFTER THE COMPLETION10
	147	+	OF THE INTERNAL DISPUTE RESOLUTION MEETING .11
	148	+	(c) M
	149	+	EDIATION MUST TAKE PLACE WITHIN THIRTY DAYS AFTER THE12
	150	+	UNIT OWNER RECEIVES NOTICE OF MEDIATION .13
	151	+	(d) T
	152	+	HE MEDIATOR ASSIGNED TO CARRY OUT THE MEDIATION MUST14
	153	+	BE AN IMPARTIAL THIRD PARTY AND MUST BE APPROVED BY BOTH PARTIES .15
	154	+	(e) (I) I
	155	+	F THE PARTIES CANNOT REACH A MEDIATION AGREEMENT16
	156	+	WITHIN FOURTEEN DAYS AFTER MEDIATION BEGINS , THE MEDIATION17
	157	+	PROCESS IS CONSIDERED UNSUCCE SSFUL AND THE PARTIES MAY PROCEED18
	158	+	TO ARBITRATION OR MAY COMMENCE A LEGAL PROCEEDING .19
	159	+	(II) I
	160	+	F MEDIATION IS UNSUCCESSFUL, THE MEDIATOR MUST ISSUE20
	161	+	A CERTIFICATE OF COMPLIANCE STATING THAT ONE OR MORE OF THE21
	162	+	FOLLOWING CONDITIONS ARE MET :22
	163	+	(A) T
	164	+	HE PARTIES PARTICIPATED IN MEDIATION IN GOOD FAITH AND23
	165	+	WERE UNABLE TO REACH A MEDIATION AGREEMENT ;24
	166	+	(B) O
	167	+	NE PARTY REFUSED TO PARTICIPATE IN MEDIATION ; OR25
	168	+	(C) T
	169	+	HE DISPUTE IS EXEMPT FROM THE REQUIREMENTS OF THIS26
	170	+	SECTION PURSUANT TO SUBSECTION (6) OF THIS SECTION.27
	171	+	HB25-1123
	172	+	-5- (III) THE PARTY STARTING A LEGAL PROCEEDING MUST INCLUDE1
	173	+	THE CERTIFICATE OF COMPLIANCE WHEN FILING WITH THE COURT .2
	174	+	(IV) F
	175	+	AILURE TO FILE A CERTIFICATE OF COMPLIANCE WHEN3
	176	+	STARTING A LEGAL ACTION IS GROUNDS FOR AN OBJECTION OR A MOTION4
	177	+	TO STRIKE, UNLESS THE COURT FINDS THAT DISMISSAL OF THE ACTION FOR5
	178	+	FAILURE TO COMPLY WOULD RESULT IN SUBSTANTIAL PREJUDICE TO ONE6
	179	+	OF THE PARTIES.7
	180	+	(f) I
	181	+	F A MEDIATION AGREEMENT IS REACHED , THE TERMS OF THE8
	182	+	MEDIATION AGREEMENT MUST BE IN WRITING AND SIGNED BY BOTH9
	183	+	PARTIES AND THE MEDIATION AGREEMENT IS ENFORCEABLE AS A10
	184	+	CONTRACT.11
	185	+	(g) T
	186	+	HE COST OF MEDIATION MUST BE SHARED EQUALLY BETWEEN12
	187	+	THE UNIT OWNER AND THE ASSOCIATION , UNLESS OTHERWISE AGREED13
	188	+	UPON BY THE PARTIES.14
	189	+	(6) T
	190	+	HE REQUIREMENTS OF THIS SECTION DO NOT APPLY TO THE15
	191	+	FOLLOWING:16
	192	+	(a) A
	193	+	DISPUTE INVOLVING A VIOLATION OF LOCAL , STATE, OR17
	194	+	FEDERAL LAW;18
	195	+	(b) A
	196	+	DISPUTE INVOLVING A CLAIM OF DISCRIMINATION ,19
	197	+	HARASSMENT, OR OTHER CIVIL RIGHTS VIOLATION;20
	198	+	(c) A
	199	+	CASE IN WHICH ONE PARTY SEEKS EMERGENCY RELIEF OR21
	200	+	INJUNCTIVE RELIEF FROM THE COURT; OR22
	201	+	(d) A
	202	+	DISPUTE THAT HAS ALREADY BEEN ADJUDICATED IN COURT23
	203	+	OR THROUGH ARBITRATION .24
	204	+	(7) A
	205	+	UNIT OWNERS' ASSOCIATION SHALL, ON AN ANNUAL BASIS,25
	206	+	PROVIDE WRITTEN NOTICE TO EACH OF ITS UNIT OWNERS STATING THAT26
	207	+	THE FAILURE OF A UNIT OWNER TO COMPLY WITH THE ALTERNATIVE27
	208	+	HB25-1123
	209	+	-6- DISPUTE RESOLUTION REQUIREMENTS OF THIS SECTION MAY RESULT IN THE1
	210	+	LOSS OF THE UNIT OWNER'S RIGHT TO SUE THE UNIT OWNERS' ASSOCIATION2
	211	+	REGARDING ENFORCEMENT OF THE GOVERNING DOCUMENTS OR3
	212	+	APPLICABLE LAW.4
124	213		SECTION 2. Safety clause. The general assembly finds,5
125	214		determines, and declares that this act is necessary for the immediate6
126	215		preservation of the public peace, health, or safety or for appropriations for7
127	216		the support and maintenance of the departments of the state and state8
128	217		institutions.9
129		-	1123
130		-	-5-
	218	+	HB25-1123
	219	+	-7-