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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 26-0413.02 Christopher McMichael x4775 HOUSE BILL 26-1316
House Committees Senate Committees
Transportation, Housing & Local Government
A BILL FOR AN ACT
CONCERNING PRIVATE MEMBERSHIP CLUB COVENANTS.101
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.)
On and after January 1, 2027, the bill prohibits the recording of a
new covenant or declaration that purports to encumber residential
property by requiring the owner to acquire and pay for membership in a
private membership club.
The bill requires a private membership club to provide a property
owner with certain information related to the budget and operations of the
private membership club by mailing information to property owners and
posting the information on the private membership club's public website.
HOUSE SPONSORSHIP
Hamrick,
SENATE SPONSORSHIP
(None),
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, add 38-30-170.5 as2
follows:3
38-30-170.5. Private club membership covenants void and4
unenforceable - disclosure related to private club budget and5
operations required - compliance - definitions.6
(1) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE7
REQUIRES:8
(a) "C OVENANT" MEANS A RECORDED INSTRUMENT BETWEEN9
OWNERS OF REAL PROPERTY THAT IMPOSES MUTUAL RESTRICTIONS OR10
REQUIREMENTS ON THE OWNERS OF REAL PROPERTY FOR THE BENEFIT OF11
ALL OWNERS AND RESIDENTS WITHIN A COMMUNITY.12
(b) "D ECLARATION" HAS THE MEANING SET FORTH IN SECTION13
38-33.3-103 (13).14
(c) (I) "P RIVATE MEMBERSHIP CLUB " OR "CLUB" MEANS AN15
ORGANIZATION, A BUSINESS ENTITY , A CORPORATION , A NONPROFIT16
ASSOCIATION, OR ANOTHER ENTITY THAT:17
(A) A DMITS MEMBERS AND REQUIRES MEMBERS TO PAY18
MONETARY DUES, ASSESSMENTS, OR FEES IN EXCHANGE FOR ACCESS TO19
CLUB FACILITIES, PROGRAMS, OR SERVICES; AND20
(B) IS PRIVATELY OWNED OR OPERATED.21
(II) "PRIVATE MEMBERSHIP CLUB" INCLUDES A COUNTRY CLUB, A22
SPORTS AND RECREATION CLUB , A GOLF CLUB , A TENNIS CLUB , AND AN23
EQUESTRIAN CLUB.24
(III) "PRIVATE MEMBERSHIP CLUB" DOES NOT INCLUDE:25
(A) A UNIT OWNERS ' ASSOCIATION ORGANIZED PURSUANT TO26
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SECTION 38-33.3-301;1
(B) A METROPOLITAN DISTRICT, AS DEFINED BY SECTION 32-1-1032
(10); OR3
(C) A RECREATIONAL CLUB , AMENITY , OR FACILITY THAT IS4
OWNED OR OPERATED BY A METROPOLITAN DISTRICT , A UNIT OWNERS '5
ASSOCIATION, OR OTHER COMMON INTEREST COMMUNITY, AS DEFINED BY6
SECTION 38-33.3-103 (8).7
(2) A COVENANT OR DECLARATION FOR A RESIDENTIAL PROPERTY8
THAT IS RECORDED ON OR AFTER JANUARY 1, 2027, AND THAT REQUIRES9
THE OWNER OF THE RESIDENTIAL PROPERTY TO JOIN A PRIVATE10
MEMBERSHIP CLUB IS VOID AND UNENFORCEABLE.11
(3) A PRIVATE MEMBERSHIP CLUB THAT COLLECTS DUES OR FEES12
FROM AN OWNER OF A RESIDENTIAL PROPERTY , WHICH RESIDENTIAL13
PROPERTY IS SUBJECT TO A COVENANT OR DECLARATION THAT REQUIRES14
THE PROPERTY OWNER TO PAY DUES OR FEES TO THE CLUB , SHALL MAKE15
THE FOLLOWING INFORMATION AVAILABLE IN ACCORDANCE WITH16
SUBSECTION (4) OF THIS SECTION:17
(a) THE AMOUNT OF DUES OR FEES THAT THE PRIVATE MEMBERSHIP18
CLUB ANTICIPATES COLLECTING FROM PROPERTY OWNERS IN THE CLUB'S19
CURRENT FISCAL YEAR , INCLUDING A TOTAL AMOUNT OF FEES AND A20
CALCULATION OF THE AMOUNT OF FEES COLLECTED PER PROPERTY OWNER;21
(b) THE ACTUAL AMOUNT OF DUES OR FEES COLLECTED BY THE22
PRIVATE MEMBERSHIP CLUB FROM PROPERTY OWNERS IN THE CLUB'S PRIOR23
FISCAL YEAR;24
(c) THE DATE ON WHICH THE CLUB'S FISCAL YEAR COMMENCES;25
(d) T HE CLUB 'S OPERATING BUDGET FOR THE CURRENT FISCAL26
YEAR;27
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(e) A LIST , BY TYPE , OF THE CLUB 'S CURRENT ASSESSMENTS ,1
INCLUDING BOTH REGULAR AND SPECIAL ASSESSMENTS;2
(f) THE CLUB'S ANNUAL FINANCIAL STATEMENTS, INCLUDING ANY3
AMOUNTS HELD IN RESERVE FROM THE PRIOR FISCAL YEAR;4
(g) A LIST OF ALL CLUB INSURANCE POLICIES, INCLUDING, BUT NOT5
LIMITED TO, PROPERTY INSURANCE , GENERAL LIABILITY, PROFESSIONAL6
LIABILITY, AND FIDELITY POLICIES . THE LIST SHALL INCLUDE THE7
COMPANY NAMES , POLICY LIMITS , POLICY DEDUCTIBLES , ADDITIONAL8
NAMED INSUREDS, AND EXPIRATION DATES OF THE POLICIES LISTED.9
(h) ANY RELEVANT BYLAWS, ARTICLES, AND RULES OF THE CLUB;10
AND11
(i) T HE MINUTES OF THE EXECUTIVE BOARD AND MEMBER12
MEETINGS FROM THE PRIOR FISCAL YEAR.13
(4) (a) A PRIVATE MEMBERSHIP CLUB SHALL MAKE THE14
INFORMATION DESCRIBED IN SUBSECTION (3) OF THIS SECTION AVAILABLE15
BY:16
(I) POSTING THE INFORMATION IN A CONSPICUOUS MANNER ON THE17
PRIVATE MEMBERSHIP CLUB 'S PUBLIC WEBSITE AND SENDING AN18
ACCOMPANYING NOTICE OF THAT WEBSITE ADDRESS TO EACH PROPERTY19
OWNER THAT PAYS DUES OR FEES TO THE PRIVATE MEMBERSHIP CLUB VIA20
FIRST CLASS MAIL OR EMAIL; AND21
(II) MAILING OR PERSONALLY DELIVERING THE INFORMATION TO22
EACH PROPERTY OWNER THAT PAYS DUES OR FEES TO THE PRIVATE23
MEMBERSHIP CLUB.24
(b) A PRIVATE MEMBERSHIP CLUB SHALL MAKE THE INFORMATION25
DESCRIBED IN SUBSECTION (3) OF THIS SECTION AVAILABLE AT NO COST TO26
THE PROPERTY OWNERS.27
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(c) A PRIVATE MEMBERSHIP CLUB SHALL MAKE THE INFORMATION1
DESCRIBED IN SUBSECTION (3) OF THIS SECTION AVAILABLE TO PROPERTY2
OWNERS WITHIN NINETY DAYS AFTER THE END OF THE PRIVATE3
MEMBERSHIP CLUB'S FISCAL YEAR AND PROVIDE UPDATED INFORMATION4
EACH FISCAL YEAR THEREAFTER.5
(5) (a) I F A PRIVATE MEMBERSHIP CLUB DOES NOT MAKE THE6
INFORMATION DESCRIBED IN SUBSECTION (3) OF THIS SECTION AVAILABLE7
OR OTHERWISE VIOLATES THIS SECTION, ANY COVENANT THAT REQUIRES8
A PROPERTY OWNER TO PAY DUES OR FEES TO THE PRIVATE MEMBERSHIP9
CLUB IS VOID AND UNENFORCEABLE UNTIL THE PRIVATE MEMBERSHIP10
CLUB MAKES THE INFORMATION DESCRIBED IN SUBSECTION (3) AVAILABLE11
IN ACCORDANCE WITH SUBSECTION (4) OF THIS SECTION.12
(b) (I) I F A PRIVATE MEMBERSHIP CLUB IS NOT IN COMPLIANCE13
WITH THIS SECTION , A PROPERTY OWNER IS NOT REQUIRED TO PAY ANY14
DUES OR FEES TO THE PRIVATE MEMBERSHIP CLUB AND MAY BRING A CIVIL15
CLAIM FOR RELIEF AGAINST THE PRIVATE MEMBERSHIP CLUB.16
(II) A PROPERTY OWNER THAT PREVAILS IN A CIVIL CLAIM AGAINST17
A PRIVATE MEMBERSHIP CLUB PURSUANT TO THIS SECTION MAY BE18
AWARDED ACTUAL DAMAGES, PUNITIVE DAMAGES, AND ATTORNEY FEES.19
SECTION 2. Act subject to petition - effective date. This act20
takes effect at 12:01 a.m. on the day following the expiration of the21
ninety-day period after final adjournment of the general assembly (August22
12, 2026, if adjour nment sine die is on May 13, 2026); except that, if a23
referendum petition is filed pursuant to section 1 (3) of article V of the24
state constitution against this act or an item, section, or part of this act25
within such period, then the act, item, section, or part will not take effect26
unless approved by the people at the general election to be held in27
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November 2026 and, in such case, will take effect on the date of the1
official declaration of the vote thereon by the governor.2
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