House approves technical change to portable tenant screening law after hours of debate

The Colorado House of Representatives approved House Bill 12-36 on third reading March 26 after several hours of debate and a failed motion to send the bill back to second reading.

Supporters said the bill fixes an implementation problem with the law that created portable tenant screening reports, allowing applicants — including some using housing subsidies — to reuse a single screening report when applying to multiple properties instead of paying repeated fees. "This is a technical cleanup bill. I urge a yes vote," Representative Zocai said on the floor.

Opponents, including multiple representatives who identified themselves as landlords or representing rural districts, said the bill removes information landlords use to evaluate rental risk and would raise costs and risks for small property owners. "It removes critical financial information that responsible property owners rely on," Representative Weinberg said, arguing the change would discourage participation in the rental market and potentially reduce available housing.

Lawmakers who supported the measure described it as an effort to implement two prior 2023 bills together: a ban on using certain credit items as a screening criterion (Senate Bill 184) and a separate law establishing portable tenant screening reports. Representative Lindsey summarized that lawmakers had intended the portable report to save applicants repeated fees and that HB 12-36 aims to make that tool work in practice.

A procedural motion to refer the bill back to second reading failed (22 yes, 43 no). The bill then passed on final passage with a recorded tally of 36 yes, 29 no, 0 excused.

The bill's text clarifies what information must or must not be included in a portable tenant screening report and how the report interacts with existing protections for tenants who receive housing subsidies. Sponsors said tenants who use subsidies are already subject to some different disclosure rules under existing law and the cleanup simply makes the portable-report system usable.

Opponents repeatedly raised possible unintended effects: reliance on HUD screening, potential fraudulent reports, reduced landlord ability to assess partial-rent obligations when vouchers do not cover full rent, and the possibility of higher rents or lower housing availability if landlords exit the market.

The House adopted amendments and heard multiple personal and policy arguments before the final vote. The bill now moves to the Senate for further consideration.