Landlords in Denver and across the Centennial State may soon be barred from charging tenants hidden “junk fees” on their monthly bills.
State lawmakers moved closer to banning hidden fees charged for common-area maintenance, rental or utility payments and for pest control, the Denver Post reported.
House Bill 1090, part of House Democrats’ pitch to curb costs in Colorado, would require retailers and companies to detail the full price of a good or service in their advertising.
Under the bill, charging so-called “junk fees” would be labeled a deceptive trade practice.
“The idea behind the bill is that if you’re going to sell a good or service in Colorado, you need to be transparent about the fees and the true cost of what this good or service will be,” Rep. Naquetta Ricks, a Democrat from Aurora and author of the bill with Denver Democratic Rep. Emily Sirota, said during a debate.
The bill passed 41-21 on a party-line vote, with the House’s Republican caucus opposed. It now heads to the Senate. Should it clear the Senate, it would head to Gov. Jared Polis’ desk for signature into law.
House Republicans, whose caucus is in a near-superminority, opposed the measure and said it would hurt businesses.
“Small businesses are the backbone of our economy, but (House Bill 1090) makes it harder for them to survive,” Rep. Jarvis Caldwell, a Republican from Colorado Springs, said in a statement. “It is nothing more than another government mandate that will lead to higher costs, more legal battles and fewer opportunities for entrepreneurs in Colorado.”
While the bill would require transparency for a range of fees, it includes specific bans targeted at common housing charges, according to the Post. The bill would bar landlords from charging fees for services that ensure housing is safe and habitable, such as pest-control charges.
Landlords have said those fees are needed to cover expenses — and that banning them would result in property owners upping rents.
But housing advocates counter that it would be preferable, because it gives tenants a clearer understanding of their monthly bill.
Sirota said that the measure would likely undergo additional minor amendments in the Senate, and would likely pass.
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