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HB 1415

Optional Residential Construction Contractor Certification

2026 Regular Session

Creates a voluntary, fee-funded Residential Construction Contractor Certification Enterprise to issue certified contractor credentials aimed at boosting consumer protection and pro

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Bill Summary · HB 1415

Overview

HB 1415 proposes creating a Residential Construction Contractor Certification Enterprise within the Department of Law to administer a voluntary residential construction contractor certification program. The program would finance itself through a new contractor certification fee (up to $100 per applicant) and related revenues, with net proceeds directed to a dedicated Contractor Certification Cash Fund. The bill sets governance, goals, evaluation criteria, reporting, and sunset provisions.

Main purpose and intent

  • Establish a government-owned, fee-funded enterprise to administer a voluntary certification program for residential construction contractors.
  • Improve consumer protection by encouraging certified contractors, reducing project abandonment, and promoting compliant and competent performance.
  • Create a dedicated fund and oversight structure to manage the program independent of general state revenues.

Key provisions and changes

  • Establishment of the Residential Construction Contractor Certification Enterprise (the Enterprise) within the Department of Law.
  • The Enterprise is a government-owned business authorized to:
    • Collect certification fees from contractors applying for a certificate.
    • Evaluate and certify contractors.
    • Issue certificates and oversee the program, including adoption of policies and requirements for certification.
    • Hire or engage construction contractors, consultants, and legal counsel as needed.
    • Issue revenue bonds payable from the fund (subject to defined constraints).
  • Certification fee details:
    • Fee amount set by the Enterprise, up to $100 per contractor application.
    • Fee revenue is deposited into the Contractor Certification Cash Fund and is exempt from state fiscal year spending rules (TABOR).
    • The five-year revenue cap: total fee revenue cannot exceed $100 million over the first five fiscal years.
  • Fund and finances:
    • Creation of the Contractor Certification Cash Fund in the state treasury.
    • Money in the fund is continuously appropriated to the Enterprise for program costs, administration, and related purposes (including repayment of a General Fund loan as described below).
    • The Enterprise may seek and accept private/public gifts, grants, or donations, so long as total grants from state and local governments remain under 10% of the Enterprise’s total annual revenue.
    • A one-time General Fund loan of $10,000, transferred in FY 2025-26, to be repaid with interest by December 31, 2027 (interest tied to a 10-year U.S. Treasury note rate; loan terms revert to repeal in 2028).
  • Governance:
    • A 13-member Board of Directors appointed by the Attorney General (or designee) to oversee the Enterprise.
    • Board composition includes: representatives from the Department of Law, Department of Local Affairs (Housing), Department of Regulatory Agencies (Professions and Occupations), industry experts, and residential housing consumers.
    • The Board is responsible for establishing certification criteria and evaluating applicants.
    • The Board must meet at least quarterly; members may receive a $50 per diem for meetings.
  • Certification program details:
    • Certification aims to ensure financial security (e.g., bonds or insurance), compliance with licensing and building codes, contractor competence (skills, experience, and education), timely project completion, and effective dispute resolution.
    • Contractors may apply for certification following Enterprise policies.
    • Certification is voluntary (optional for contractors).
  • Goals for eligibility and administration:
    • Goals include preventing homeowner damage from abandoned projects, promoting adherence to construction agreements, and increasing certified contractor participation to raise service quality.
  • Reporting:
    • Annual report due by July 1 to the General Assembly committees (as designated by statute) detailing fund balance, applications received, certificates issued, progress toward goals, and policy/legislative recommendations.
  • Sunset/Repeal:
    • The certification program and the section creating the Enterprise would repeal on January 1, 2037, unless extended or renewed.
  • Effective date:
    • Effective upon the Governor’s signature or absent signature upon becoming law.

Who and what would be affected

  • Residential construction contractors who choose to apply for certification (optional program).
  • Homeowners and consumers seeking assurance of contractor reliability, safety, and accountability through certification.
  • State government:
    • The Department of Law administers the Enterprise.
    • The Attorney General (via appointing Board members) and other state agencies may interact with and support the program.
  • Fiscal impacts:
    • The state would create a new cash fund (Contractor Certification Cash Fund) financed by fees, subject to annual revenue and five-year cap limits.
    • A temporary General Fund loan and repaid interest exposure, with effect on TABOR calculations.

Procedural and timeline aspects

  • Board appointment and enterprise operation:
    • Assumed appointment of the Board by September 1, 2026.
    • Applications for certification anticipated to begin around January 1, 2027.
  • Revenue and fiscal period:
    • For FY 2026-27, projected revenue: approximately $225,000; for FY 2027-28, about $315,000.
    • Ongoing fee revenue trend assumes roughly 3,000 certificate applications annually (about 5% of an estimated 120,000 residential contractors in Colorado, per fiscal note assumptions).
  • Expenditures:
    • Initial operational costs in FY 2026-27 (~$217,095) with ongoing costs in FY 2027-28 (~$171,171), including staff (1.1 FTE by 2027-28) and professional services.
  • Repeal date:
    • The program is set to repeal on January 1, 2037, absent renewal.
  • TABOR considerations:
    • Revenue from the fee is TABOR-exempt; however, related interagency costs and interest payments linked to the General Fund loan could affect TABOR refunds.

Summary assessment

HB 1415 creates a voluntary, fee-funded Certification Enterprise to oversee a state-sanctioned residential construction contractor certification program. It emphasizes consumer protection (reducing project abandonment, improving compliance, and fostering trust in certified contractors) while maintaining a limited fiscal footprint through a revenue cap and dedicated fund. The program is time-bound (2037 sunset) and would require careful administration to maintain fund solvency and ensure meaningful certification standards. The fiscal note projects modest near-term state costs and revenue, with broader impacts contingent on contractor participation levels.

Compiled from official sources — confirm details with the bill’s official record.

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