First Regular Session Seventy-fifth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 25-0598.01 Chelsea Princell x4335 SENATE BILL 25-185 Senate Committees House Committees Judiciary A BILL FOR AN ACT C ONCERNING THE INAPPLICABILITY OF THE ECONOMIC LOSS RULE TO101 CERTAIN CLAIMS BROUGHT BY A RESIDENTIAL PROPERTY102 OWNER AGAINST A CONS TRUCTION PROFESSIONAL .103 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) The bill clarifies that construction professionals owe an independent tort duty of care to construct residential homes in a non-defective and reasonable manner, and that this duty is owed equally to original and subsequent residential home purchasers. SENATE 3rd Reading Unamended March 21, 2025 SENATE Amended 2nd Reading March 20, 2025 SENATE SPONSORSHIP Rodriguez and Pelton B., HOUSE SPONSORSHIP Bacon and Soper, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 13-20-806, add (8)2 as follows:3 13-20-806. Limitation of damages. (8) (a) T HE GENERAL 4 ASSEMBLY FINDS AND DECLARES THAT THE DECISION OF THE COLORADO5 COURT OF APPEALS IN APPLEBY V. DOSSEY SUDIK STRUCTURAL ENGINEERS6 LLC, 23CA0008 (COLO. APP. 2023), DOES NOT REFLECT THE PUBLIC 7 POLICY OF THE STATE OF COLORADO AS IT CONCERNS THE INDEPENDENT8 TORT DUTIES OWED BY CONSTRUCTION PROFESSIONALS TO ORIGINAL9 RESIDENTIAL PURCHASERS FOR PURPOSES OF DETERMINING APPLICATION10 OF THE JUDICIALLY CREATED "ECONOMIC LOSS RULE". IT IS THEREFORE11 NECESSARY FOR THE GENERAL ASSEMBLY TO CLARIFY AND CONFIRM THE12 POLICY OF COLORADO TO GUIDE PENDING AND FUTURE LEGAL ACTIONS13 INTERPRETING THE APPLICATION OF THE ECONOMIC LOSS RULE .14 (b) F OR PURPOSES OF THE APPLICATION OF THE ECONOMIC LOSS 15 RULE, THE INDEPENDENT DUTIES OWED BY A CONSTRUCTION16 PROFESSIONAL TO AN ORIGINAL RESIDENTIAL PURCHASER ARE IDENTICAL17 TO THE INDEPENDENT DUTIES OWED BY A CONSTRUCTION PROFESSIONAL18 TO A SUBSEQUENT RESIDENTIAL PURCHASER , AS THOSE DUTIES ARE19 DEFINED UNDER COLORADO JUDICIALLY CREATED LAW .20 SECTION 2. Act subject to petition - effective date. This act21 takes effect at 12:01 a.m. on the day following the expiration of the22 ninety-day period after final adjournment of the general assembly; except23 that, if a referendum petition is filed pursuant to section 1 (3) of article V24 of the state constitution against this act or an item, section, or part of this25 act within such period, then the act, item, section, or part will not take26 185-2- effect unless approved by the people at the general election to be held in1 November 2026 and, in such case, will take effect on the date of the2 official declaration of the vote thereon by the governor.3 185 -3-