HB 26-1099 (Chapter 42, Session Laws of Colorado 2026) added C.R.S. §38-33.3-317(9). When an association, other than a self-managed association that has not retained a management company, terminates or fails to renew its agreement with its management company, "within forty-five days after the termination or failure to renew the agreement, the former association management company shall deliver to the new association management company or to the association, at no charge to the association, all association property, including money, financial accounts, account books, financial records, insurance policies, contracts, business documents, invoices, receipts, subscriptions, account information, account passwords, keys, and any other property or records of the association, or information concerning the association." The former company need not hand over proprietary software or computer programs if the association's data or records in them are submitted. A former company that fails to comply owes the association interest and late fees on payments made late because of the failure, other damages from the association's lost access, and "two hundred fifty dollars for each business day" it fails to comply. If the violation is found to be willful in a civil action to enforce subsection (9), it is liable for "treble the association's actual damages plus the association's reasonable attorney fees and court costs." These consequences apply unless the association and the former company agree otherwise in writing. Effective August 12, 2026.
What the law said, and what it says now
Before
Not in the law before this change.
After
(9) (a) (I) When an association, other than a self-managed association that has not retained an association management company, terminates or fails to renew an agreement with its association management company, within forty-five days after the termination or failure to renew the agreement, the former association management company shall deliver to the new association management company or to the association, at no charge to the association, all association property, including money, financial accounts, account books, financial records, insurance policies, contracts, business documents, invoices, receipts, subscriptions, account information, account passwords, keys, and any other property or records of the association, or information concerning the association. (II) Subsection (9)(a)(I) of this section does not require a former association management company to submit any proprietary software or computer programs to the association, so long as the association's data or records within the proprietary software or computer program are submitted to the association. (b) Unless otherwise agreed in writing between the association and the former association management company, the former association management company that fails to comply with the requirement set forth in subsection (9)(a)(I) of this section: (I) Is liable to the association for all interest and late fees on late payments made by the association due to the former association management company's failure to comply with the requirement set forth in subsection (9)(a)(I) of this section and any other damages incurred by the association due to the inability of the association to access the association's accounts, money, property, or information specified in subsection (9)(a)(I) of this section; (II) Shall pay to the association two hundred fifty dollars for each business day that the former association management company fails to comply with the requirement set forth in subsection (9)(a)(I) of this section; and (III) In any civil action to enforce this subsection (9), if the former association management company's violation is found to be willful, shall be liable to the association for treble the association's actual damages plus the association's reasonable attorney fees and court costs.
Quoted word for word from CommunityPay's captures of the text:
after, September 5, 2026, from the official text (entered by hand).
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