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Bill Detail: SB24-112

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Title Construction Defect Action Procedures
Status Senate Committee on Local Government & Housing Postpone Indefinitely (04/30/2024)
Bill Subjects
  • Courts & Judicial
  • Housing
House Sponsors
Senate Sponsors P. Lundeen (R)
House Committee
Senate Committee Local Government and Housing
Date Introduced 02/05/2024
Summary

Section 1 of the bill adds disclaimers to the Construction Defect
Action Reform Act that:
  • Are not intended to impose an obligation upon construction
professionals to provide an express or implied warranty;
  • Apply to implied warranty claims; and
  • Do not amend or change the terms of or limitation upon an
express or implied warranty.
The bill states that a construction professional is not vicariously
liable for the acts or omissions of a licensed design professional for any
construction defects.
Under current law regarding common interest communities, a unit
owners' association (association) must follow a process to obtain the
approval of a majority of the unit owners before initiating a construction
defect action (action). The approval process:
  • Requires that a meeting be held to consider whether or not
to bring the action (meeting);
  • Requires the association to give the unit owners
information about the proposed action and certain notices
and disclosures before the meeting;
  • Allows the association to amend or supplement the
proposed action after the meeting; and
  • Allows the association to omit nonresponsive votes from
the total vote count, but allows construction professionals
to challenge whether the association made diligent efforts
to contact the nonresponsive unit owners.
In connection with this process, section 2:
  • Requires the association to give notice to unit owners and
reobtain unit owner approval to amend or supplement a
proposed action after the meeting;
  • Raises the number of unit owners who need to approve the
action from a majority to a two-thirds majority;
  • Requires a unit owner to sign the unit owner's vote;
  • Requires the association to give the construction
professionals a list of nonresponsive unit owners; and
  • When unit owners' nonresponsiveness is challenged in
court:
  • Requires the court to stay the action against the
construction professionals and requires the
notification and voting process to be performed
again unless the court holds that the association
diligently contacted the unit owners; and
  • Requires the association to disclose to the
construction professionals all information relevant
to the unit owners' nonresponsiveness within 21
days after the challenge has been filed.

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