May 18, 2013

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Probate Omnibus Bill, Employee Privacy, HOA Bills Signed by Governor Hickenlooper

May 14, 2013 by Leave a Comment

Although the Colorado General Assembly adjourned sine die on May 8, 2013, bills continue to be signed into law by Governor Hickenlooper. To date, the governor has signed 231 bills. Some of the most recently signed bills are summarized below.

On Thursday, May 7, Governor Hickenlooper signed one bill — HB 13-1117 - Concerning Alignment of Child Development Programs, and, in Connection Therewith, Making and Reducing an Appropriation, by Rep. Millie Hamner and Sens. Mary Hodge and Andy Kerr. The bill consolidates several child development programs in the Department of Human Services and extends  the Early Childhood Leadership Council, which was set to sunset on July 1, 2013.

Governor Hickenlooper signed 18 bills into law on Friday, May 10, 2013. Six of them are summarized here.

On Saturday, May 11, 2013, the governor signed 19 bills into law. Five of them are summarized here.

Finally, on Monday, May 13, 2013, Governor Hickenlooper signed 11 bills into law. Four of them are summarized here.

For a complete list of Governor Hickenlooper’s 2013 legislative decisions, click here.

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Bills Regarding Job Protection, Authorization for Foreign Investments, Electric Vehicle Charging Stations, and More Signed by Governor Hickenlooper

May 7, 2013 by Leave a Comment

As the 2013 legislative session winds down, bills continue to reach Governor Hickenlooper’s desk for review and signature. Since January 31, 2013, the governor has signed 169 bills.

Governor Hickenlooper signed the “Job Protection and Civil Rights Enforcement Act,” HB 13-1136, on Monday, May 6, 2013. HB 13-1136 - Concerning the Creation of Remedies in Employment Discrimination Cases Brought Under State Law, by Reps. Claire Levy and Joe Salazar and Sens. Morgan Carroll and Lucia Guzman, establishes provisions for complaining parties who have exhausted administrative remedies to bring actions in state court. It also allows claims to be brought by employees of companies with fewer than 15 employees, which are exempt under Federal anti-discrimination provisions.

On May 5, the governor signed one bill, SB 13-176 - Concerning Authorization for the State Treasurer to Invest State Moneys in Debt Obligations Backed By the Full Faith and Credit of the State of Israel. This bill was sponsored by Sens. Mark Scheffel and Morgan Carroll and Reps. Justin Everett and Angela Williams, and it authorizes the state treasurer to invest state moneys in Israeli bonds.

The governor signed 10 bills on Friday, May 3, 2013. Three of the ten bills signed are summarized here.

  • SB 13-126 - Concerning the Removal of Unreasonable Restrictions on the Ability of the Owner of an Electric Vehicle to Access Charging Facilities, by Sen. Lucia Guzman and Rep. Crisanta Duran. The bill requires landlords and common interest communities to allow unit owners to install electric vehicle charging stations on their own property.
  • HB 13-1167 - Concerning the Collection of Business Information by the Secretary of State, by Reps. Brittany Pettersen and Crisanta Duran and Sen. Larry Crowder. The bill requires the Secretary of State to request certain demographic information from business owners, which will be available to the public on the Secretary of State website. The demographic information includes gender, race, veteran status, disability status, and NAICS code, and submission of the information is voluntary.
  • HB 13-1222 - Concerning the Expansion of the Group of Family Members for whom Colorado Employees are Entitled to Take Leave from Work under the “Family and Medical Leave Act of 1993″, by Rep. Cherylin Peniston and Sen. Jessie Ulibarri. The bill allows employees to take leave under FMLA to care for their partners in civil unions.

On April 29, 2013, the governor signed six bills. These included the long appropriations bill, three Joint Budget Committee bills regarding the General Fund, and a bill to allow students who complete high school in Colorado to qualify for in-state tuition classification (SB 13-033 – Concerning In-State Classification at Institutions of Higher Education for Students who Complete High School in Colorado, by Sens. Angela Giron and Mike Johnston and Reps. Crisanta Duran and Angela Williams.) Governor Hickenlooper also signed the budget bill, SB 13-230, on April 29.

On April 26, 2013, Governor Hickenlooper signed 16 bills. Five of these are summarized here.

  • HB 13-1025 - Concerning an Increase in the Amount of the Authorized Deductible for Workers’ Compensation Insurance Policies, by Rep. Spencer Swalm and Sen. Cheri Jahn. The bill increases the allowable deductible for employers’ workers’ compensation insurance policies.
  • HB 13-1123 - Concerning the Right of a Person to Waive Confidentiality Requirements Protecting Personal Work Information Obtained by the Department of Labor and Employment for Unemployment Benefit Claims to Permit the Department to Forward Certain Information to Potential Employers, by Rep. Tony Exum and Sen. Jim Kerr. The bill allows the Department of Labor and Employment to offer job seekers the opportunity to waive confidentiality so that their personal information may be made available to bona fide employers seeking employees.
  • HB 13-1258 - Concerning Local Government Involvement with Federal Immigration Issues, by Rep. Joe Salazar and Sens. Irene Aguilar and Morgan Carroll. The bill repeals C.R.S. Title 29, Article 29, which required local law enforcement officers to report any suspected illegal immigrants to federal immigration officials.
  • SB 13-048 - Concerning the Use of Highway User Tax Fund Moneys Allocated to Local Governments for Multimodal Transportation Infrastructure, by Sen. Nancy Todd and Reps. Max Tyler and Jeanne Labuda. The bill allows counties and municipalities to spend moneys received from the Highway User Tax Fund on transit-related projects.
  • SB 13-070 - Concerning the Purchase of Vehicles that Operate on Alternative Fuels for the State Motor Vehicle Fleet System, by Sen. Gail Schwartz and Reps. Ray Scott and Max Tyler. The bill requires the Department of Personnel and Administration to report on the number of alternative fuel vehicles purchased, the use of alternative fuel, and a plan to develop the infrastructure necessary to utilize more alternative fuel vehicles.

For a complete list of legislation signed into law by the governor in 2013, click here.

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e-Legislative Report, 5/6/13

May 7, 2013 by Leave a Comment

CBA Director of Legislative Relations Michael Valdez issued his weekly e-Legislative Report on May 6, 2013. In this edition, he gives a day-by-day report of what happened at the legislature during the week of April 29. He also summarizes a few more late bills of interest, and notes that the CBA Legislative Policy Committee did not meet on May 3.

At the Capitol

Boxscores

Monday, April 29

  • The House adopted the conference committee report for HB 13-1058. Concerning guidelines for the determination of spousal maintenance (advisory guideline formula to determine spousal maintenance). The adoption of the conference committee report signals the end of the legislative journey for the bill; the bill now heads to Gov. John Hickenlooper for action. The final Senate version of the bill is what the Governor will see when the bill gets to his desk.
  • The House adopted the conference committee report for HB 13-1204. Concerning the “Uniform Premarital and Marital Agreements Act.” The conference committee report made a conforming amendment to the act to address changes made in SB 13-11. Civil Unions.
  • The House adopted the conference committee report for HB 13-1200. Concerning the “Uniform Deployed Parents Custody and Visitation Act.” The conference committee report adopted several important amendments suggested by the Family Law Section.
  • The House adopted HB 13-1317. Concerning the recommendations made in the public process for the purpose of implementing retail marijuana legalized by section 16 of article XVIII of the Colorado constitution, and in connection therewith, making an appropriation on 3rd Reading by a vote of 35 yes, 29, no, and 1 excused.
  • The Senate approved 13-1246. Concerning modifications in connection with current property tax exemptions for nonprofit organizations on 3rd and final reading by a vote of 35–0.
  • The Senate approved 13-255. Concerning child fatality review teams, and, in connection therewith, increasing the capacity and resources, clarifying the responsibilities and processes of state and local child fatality review teams in the departments of public health and environment and human services, and making an appropriation on a 22–13 vote.

Tuesday, April 30

  • The Senate adopted HB 1163. Concerning payment for medical costs associated with obtaining a medical forensic examination for victims of sexual offenses, and, in connection therewith, making an appropriation on 3rd Reading on a 35–0 vote.
  • The Senate approved HB 12-1276. Concerning limitations on the actions a unit owners’ association under the “Colorado Common Interest Ownership Act” may take against a unit owner with respect to the collection of debt owed to the unit owners’ association by a 35–0 vote.
  • The Senate passed 13-1142. Concerning reforms to the “Urban and Rural Enterprise Zone Act,” and, in connection therewith, making an appropriation on a vote of 21–14.
  • The Senate adopted HB 13-1156. Concerning creation of an adult diversion program, and, in connection therewith, making an appropriation on a 35–0 vote.
  • The Senate gave final approval to HB 13-1138. Concerning benefit corporations, and, in connection therewith, making an appropriation on a party line vote 20–15. The bill was sent back to the House for consideration of the Senate amendments.
  • The Senate adopted HB 13-1134. Concerning unit owners’ associations under the “Colorado Common Interest Ownership Act” on a party line vote of 20–15.
  • The Senate unanimously approved SB 13-271. Concerning funding for the address confidentiality program on 3rd and final reading.
  • With a smidgen of bipartisan support, the Senate gave final approval of HB 13-1266. Concerning the alignment of state health insurance laws with the requirements of the federal “Patient Protection and Affordable Care Act” on a vote of 21–14.
  • The Senate adopted on 3rd and final Reading HB 13-1082. Concerning juvenile delinquency records on a 35–0 vote.
  • The House gave final approval of SB 13-252. Concerning measures to increase Colorado’s renewable energy standard so as to encourage the deployment of methane capture technologies on a vote of 37 yes, 27 no, and 1 excused.
  • The House adopted HB 13-1318. Concerning the recommendations made in the public process for the purpose of implementing certain state taxes on retail marijuana legalized by section 16 of article XVIII of the Colorado constitution, and, in connection therewith, making an appropriation on a vote of 37 yes, 27 no, and 1 excused.
  • The House approved HB 13-1306. Concerning creating a task force to consider persons who pose a threat of harm to themselves or others on 3rd and final reading; the vote: 35 yes, 29 no, and 1 excused.

Wednesday, May 1

  • The House adopted—34 yes, 28 no, and one excused—HB 13-1316. Concerning the Colorado oil and gas conservation commission’s adoption of uniform statewide groundwater sampling rules, and, in connection therewith, making an appropriation.
  • The House approved SB 13-47. Concerning protections for youth in foster care against identity theft, and, in connection therewith, making an appropriation on a vote of 63 yes, 1 no, and one excused.
  • The House approved 13-246. Concerning creation of a task force to study discovery costs in criminal case by a vote of 64 yes, 1 no, and 1 excused.
  • The House adopted HB 13-111. Concerning abuse of at-risk adults, and, in connection therewith, making an appropriation by a vote of 56 yes, 8 no, and 1 absent.
  • The House voted to concur with the amendments added by the Senate to HB 13-1138. Concerning benefit corporations, and, in connection therewith, making an appropriation. The Senate amendments to the bill represent a significant compromise on the bill. The motion to concur with Senate amendments was passed on a vote of 37 yes, 27 no, and 1 excused.
  • The House voted to concur with the amendments added by the Senate to HB 13-1276. Concerning limitations on the actions a unit owners’ association under the “Colorado Common Interest Ownership Act” may take against a unit owner with respect to the collection of debt owed to the unit owners’ association; the vote: 47 yes, 17 no, and 1 excused.
  • The House voted to concur with the amendments added by the Senate to HB 13-1156. Concerning creation of an adult diversion program, and, in connection therewith, making an appropriation on a vote of 61 yes, 3 no, and 1 excused.
  • The Senate gave its final approval to 13-250. Concerning changes to sentencing of persons convicted of drug crimes, and, in connection therewith, making an appropriation. The final vote was 34–1.
  • The Senate gave final approval to SB 13-244. Concerning a task force to study substance abuse. The final vote was 34–1.

Thursday, May 2

  • The Senate adopted HB 13-1230. Concerning compensation for persons who are exonerated of their crimes after a period of incarceration, and, in connection therewith, making an appropriation on a vote 32 yes, 0 no, and 3 excused.
  • The Senate gave final approval to HB 13-1240. Concerning penalties for persistent drunk drivers, and, in connection therewith, making an appropriation on a vote 32 yes, 0 no, and 3 excused.
  • Adopted on a vote of 33 yes, 1, no, and 1 excused, the Senate gave final support for HB 13-1160. Concerning criminal theft, and, in connection therewith, reducing an appropriation.
  • The Senate gave final approval of SB 13-283. Concerning implementation of amendment 64, and, in connection therewith, making and reducing an appropriation. The vote was 32 yes, 2, no, and 1 excused.
  • The Senate voted to concur with the House amendments to SB 13-111. Concerning abuse of at-risk adults, and, in connection therewith, making an appropriation (Mandatory reporting of elder abuse). The vote to concur was 24 yes, 10 no, and 1 excused.
  • The Senate voted to concur with the House amendments to SB 13-147. Concerning protections for youth in foster care against identity theft, and, in connection therewith, making an appropriation. The vote to concur was 34 yes, 0 no, and 1 excused.

Friday, May 3

  • The House gave final approval to SB 13-262. Concerning the exemption of representative services of enrolled agents from the definition of debt management services. The vote was unanimous—65-0.
  • On 3rd and final reading, the House adopted HB 13-1323. Concerning requiring the department of corrections to obtain clarification if a court-issued mittimus omits instruction concerning whether a defendant’s sentences are to be served consecutively or concurrently on a vote of 65–0.
  • The Senate gave final approval to HB 13-1284, Concerning documents that can be filed regarding security interests under the “Uniform Commercial Code.”

The full e-Legislative Report, including summaries of late bills of interest, can be found here.

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HB 13-1307: Clarifying that the Absence of Certain Identifying Information Does Not Invalidate a Title to Real Property

May 1, 2013 by Leave a Comment

On April 12, 2013, Rep. Elena Kagan and Sen. Lucia Guzman introduced HB 13-1307 - Concerning the Effect of the Inclusion of a Legal Description on the Validity of Documents Affecting Title to Real Property. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

Current law states that the absence of a street address, assessor’s schedule number, or parcel number in a document of title to real property does not render the document ineffective if a legal description is included. The bill specifies that the absence of a legal description does not necessarily invalidate the document or its recording in the county clerk and recorder’s office, nor determine the validity of the document as against a person obtaining rights in the property. At the request of the Real Estate Section, the CBA LPC has voted to support this legislation.

The bill passed 3rd Reading in the House on Friday, April 26. The bill is assigned to the Judiciary Committee in the Senate; the most likely hearing date will be Wednesday, May 1 at 1:30 p.m.

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SB 13-281: Expediting the Resolution of Disputes Related to Tax Credits for Donation of a Perpetual Conservation Easement

April 29, 2013 by Leave a Comment

On Thursday, April 18, 2013, Sen. Larry Crowder introduced SB 13-281 – Concerning the Expeditious Resolution of Disputed Claims for State Income Tax Credits Allowed for the Donation of a Perpetual Conservation Easement. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

Taxpayers may claim a state income tax credit for a portion of the value of a perpetual conservation easement that the taxpayer donates. If the executive director of the department of revenue disputes the claim of the credit, current law sets forth procedures for resolving the claim administratively or through an appeal process in the courts. In the past, a significant number of claims have been disputed and are in the process of being resolved.

The bill requires all disputes for tax credits claimed prior to July 1, 2008, to be resolved by July 1, 2014, and prohibits the state from using any funds, resources, or personnel to continue to litigate these disputed claims after that date.

The bill was introduced on April 18 and assigned to the State, Veterans, & Military Affairs Committee. The bill is scheduled for committee review on May 1 at 1:30 p.m.

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SB 13-267: Permitting Judicial Review of a Final Action Regarding Land Use Regardless of Whether an Application for Reconsideration has been Filed with the Local Government

April 26, 2013 by Leave a Comment

On Friday, April 12, 2013, Sen. Jessie Ulibarri introduced SB 13-267 – Concerning Judicial Review of Land Use Determinations by Local Governments. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

Upon any final action of a county, home rule or statutory city, town, territorial charter city, or city and county (local government) that has the effect of approving or denying, in whole or in part, the use or development of a particular parcel of real property, the bill makes the final action subject to judicial review, whether or not an application for reconsideration of the final action has been filed, unless the filing of an application for reconsideration is required to obtain judicial review under the land development regulations of the local government.

The bill authorizes any person adversely affected or aggrieved by final action by a local government concerning the use or development of a particular parcel of real property, and who was a party to or participated in the proceedings resulting in the final action, to commence an action for judicial review of the final action in the district court in which the real property is located within 30 days after the action becomes final. The bill specifies the parties against whom the action may be brought.

The bill specifies the required components of a complaint requesting judicial review, and additional procedures governing service of the complaint, certification of the record, and a schedule for briefing the matter before the district court.

Judicial review under the bill is limited to a determination of whether the local government or an officer of the local government has exceeded its jurisdiction or abused its discretion, based on the evidence in the record before the defendant local government or officer.

The bill requires the district court to determine the matter within 63 days of the plaintiff’s reply brief, or, if no briefs are filed, within 63 days of the filing of the defendant’s answer. If the district court has not decided the matter by the applicable deadline, the final action of the local government that is under review is deemed affirmed and valid without any further action by the district court, for all purposes including authorization to seek appellate review of the district court’s order. The decision of the district court is subject to appellate review as permitted by existing appellate rules.

The bill was introduced on April 12 and assigned to the Local Government Committee. The bill is scheduled for committee review on April 23 at 2 p.m.

Since this summary, the bill was postponed indefinitely by the Local Government Committee.

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SB 13-256: Authorizing Any County or City and County to Use an Alternate Property Tax Protest and Appeal Procedure First Implemented in Denver

April 19, 2013 by Leave a Comment

On Tuesday, April 9, 2013, Sen. Owen Hill introduced SB 13-256 – Concerning Authorization for Any County or City and County to Elect to Use an Alternate Property Tax Valuation Protest and Appeal Procedure Previously Created for the City and County of Denver. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

Currently, the county board of equalization receives and hears petitions for appeal regarding the valuation for assessment of taxable property. The county board of equalization process has multiple filing deadlines and addresses multiple valuation appeals in a single year. The board of county commissioners also receives and hears petitions for appeal and has jurisdiction over petitions for abatement or refund of taxes, including assessment of taxable property overvaluation. The board of county commissioners’ process has one filing deadline and can address valuation appeals, abatements, and refunds over multiple years.

House Bill 13-1113 created a pilot program that authorizes the governing body of the city and county of Denver, at the request of the assessor, to elect to use an alternate protest and appeal procedure that combines the multiple steps in the annual valuation dispute process through the county board of equalization into the single hearing and appeal process conducted by the board of county commissioners. House Bill 13-1113 specifies the filing deadlines for tax petitions and for resolving valuation disputes for the city and county of Denver to use the alternate protest and appeal procedure.

The bill expands the pilot program created by House Bill 13-1113 so that any county or city and county in the state may elect to use the alternate protest and appeal procedure.

Introduced on April 9, the bill has been is assigned to the Finance Committee; the bill is scheduled for committee review on April 18, “Upon Adjournment.”

Since this summary, the Finance Committee referred the bill, unamended, to the Senate Committee of the Whole for consideration on Second Reading.

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HB 13-1277: Creating a Licensing Program for Persons Paid to Manage Common Interest Communities

April 18, 2013 by Leave a Comment

On March 25, 2013, Rep. Angela Williams and Sen. Morgan Carroll introduced HB 13-1277 - Concerning the Regulation of Persons who Manage the Affairs of Common Interest Communities under the “Colorado Common Interest Ownership Act.” This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

Under current law, common interest communities and their unit owners’ associations (HOAs) are not subject to regulation by any state agency. As introduced, the bill requires any person who manages the affairs of a common interest community on behalf of an HOA for compensation, on or after July 1, 2014, to meet minimum qualifications and obtain a license from the director of the division of real estate in the department of regulatory agencies. Licensees are identified as “community association managers.”

The licensing requirement does not apply to persons who perform clerical, ministerial, accounting, or maintenance functions, not requiring substantially specialized knowledge, judgment, or managerial skill, under the supervision of a licensed community manager or directly for an HOA’s governing board. Licensing examinations will be developed and administered by the director of the division of real estate or by a person or entity under contract with the director.

The bill grants the director powers and duties similar to, but less detailed than, the powers and duties of the real estate commission under existing statutes governing the licensing and supervision of real estate brokers. The director is to monitor the operation of the licensing program during its first year and make recommendations for improvements to the general assembly on or before Jan. 1, 2016. The regulatory scheme is also subject to review after five years under the existing sunset law.

On April 11, the Business, Labor, Economic, & Workforce Development Committee amended the bill and sent it to the Appropriations Committee for consideration of the fiscal impact to the state.

On April 17, the Appropriations Committee amended the bill and referred it to the House Committee of the Whole for Second Reading. The Second Reading was laid over.

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HB 13-1276: Imposing Notice Requirements on Owners’ Associations Under CCIOA Prior to Referring Delinquent Owners to Collections Agencies

April 18, 2013 by Leave a Comment

On March 25, 2013, Rep. Angela Williams and Sen. Morgan Carroll introduced HB 13-1276 - Concerning Limitations on the Actions a Unit Owners’ Association under the “Colorado Common Interest Ownership Act” May Take Against a Unit Owner with Respect to the Collection of Debt Owed to the Unit Owners’ Association. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

The bill requires the unit owners’ association of a common interest community (HOA) to adopt, and comply with, a policy regarding the collection of delinquent assessments and other past-due amounts from unit owners. The HOA may not refer a unit owner’s account to a collection agency or attorney without first giving the unit owner notice of the total amount due and how it was determined, offering the unit owner a one-time opportunity to enter into a 6-month payment plan, and listing the legal remedies, including foreclosure, that are available to the HOA.

The bill prohibits an HOA from foreclosing its lien for past-due assessments unless the total amount is at least equal to six months of regular assessments and unless the HOA’s executive board has formally approved the foreclosure action on an individual basis.

The bill specifies the terms and conditions of the repayment plan that must be offered. The plan must permit the unit owner to pay off the deficiency in equal installments over a period of at least 6 months; however, the plan requires the unit owner to remain current on regular assessments as they come due during the period and allows the HOA to pursue collection if the unit owner fails to comply with the plan, has previously been subject to a payment plan, or is a bank that has acquired the unit as a result of default by a borrower. For purposes of section 3, “assessments” include fees, charges, late charges, attorney fees, fines, and interest on common expense assessments.

The bill applies its provisions to common interest communities created before July 1, 1992, the effective date of the “Colorado Common Interest Ownership Act,”, as well as to those created after that date.

On April 12, the House amended the bill and passed in on 2nd Reading; 3rd Reading is scheduled for Monday, April 15.

Since this summary, the bill passed Third Reading in the House; it is assigned to the Local Government Committee in the Senate.

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HB 13-1274: Authorizing the State Treasurer to Enter Into Lease-Purchase Agreements on Behalf of State Board of Land Commissioners

April 18, 2013 by Leave a Comment

On March 21, 2013, Rep. Dickey Lee Hullinghorst and Sen. Andy Kerr introduced HB 13-1274 - Concerning the State Board of Land Commissioners’ Investment in Commercial Real Property, and, in Connection Therewith, Granting the State Board of Land Commissioners the Authority to Enter into Lease-Purchase Agreements. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

The bill makes amendments to an existing definition and creates others in order to clarify what the lands are to which the article refers.

The bill ensures that any lease payments and rental payments for land, including by definition any lease payments from commercial real property, would be distributed in the same way that all revenues generated from state trust lands are currently distributed.

The bill grants the state board of land commissioners the authority to instruct the state treasurer to enter into lease-purchase agreements on behalf of the state school lands for the acquisition, construction, renovation, and improvement of commercial real property that the board will then lease as office space for state agencies or other tenants. The bill specifies that it is the general assembly’s intent that annual lease payments be paid from commercial real property revenues, but sets up secondary and tertiary options in the event of a shortfall. Prior to instructing the state treasurer to enter into such lease-purchase agreements, the bill requires the state board of land commissioners to present a financial plan related to such a lease-purchase agreement to the department of personnel and the office of state planning and budgeting. No later than 60 days after presentation of the financial plan, the capital development committee is required to review the financial plan and may make recommendations. The bill also:

  • Limits the total amount of annual lease payments payable by the state in any fiscal year;
  • Specifies additional procedural and legal requirements relating to the lease-purchase agreements; and
  • Creates the state board of land commissioners’ lease-purchase fund.

The bill makes clear that any interest earned on damage deposits that the state board of land commissioners receives from a lessee related to leases on state lands for nonagricultural purposes may be retained by the state board of land commissioners.

The bill creates the commercial real property operating fund to properly establish how to account for lease revenues generated from all commercial real property investments held by the state board of land commissioners on behalf of any of the state trust funds.

The bill makes conforming amendments to statutory sections related to contracting for services and procurement for the commercial real property operating fund that are consistent with a similar state board of land commissioners cash fund.

The bill was introduced on March 21 and is assigned to the Finance Committee; the bill is scheduled for committee review on April 25 “Upon Adjournment.”

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HB 13-1268: Requiring Separate Disclosure in Sale of Real Property Regarding Separate Ownership of Mineral Estate

April 17, 2013 by Leave a Comment

On March 18, 2013, Rep. Dominick Moreno and Sen. Mary Hodge introduced HB 13-1268 - Concerning a Disclosure of Possible Separate Ownership of the Mineral Estate in the Sale of Real Property. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

The bill requires a seller to disclose in the sale of real property that a separate mineral estate may subject the property to oil, gas, or mineral extraction. A standard disclosure or a substantially similar disclosure is required. A seller that provides this disclosure is not liable for any damages of the purchaser from oil, gas, or mineral extraction. The bill cleared the House on April 2 and is assigned to the State, Veterans, & Military Affairs Committee in the Senate.

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HB 13-1249: Tightening the Rules for Documentation from Holder of Evidence of Debt Prior to Commencing Foreclosure

April 10, 2013 by Leave a Comment

On March 4, 2013, Rep. Beth McCann and Sen. Angela Giron introduced HB 13-1249 - Concerning Residential Foreclosures, and, in Connection Therewith, Requiring that Foreclosures be Initiated Only by Persons with a Security Interest in the Property and Requiring Good-Faith Dealing in Loan Modification Negotiations. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

Current law allows a “holder of an evidence of debt” (holder), generally a bank or other financial institution, to foreclose on real property under a deed of trust even if the holder’s interest is based on an assignment from the original lender and the assignment or other intermediate documents are not produced, simply by providing a statement from the holder’s attorney that the holder’s interest in the property is valid. The bill removes this provision and otherwise tightens the rules for documentation of the holder’s interest that must be filed with the public trustee and with a court before a foreclosure sale is authorized. The bill also removes an existing limitation on the liability of a holder that forecloses without having possession of the original documents, to all parties damaged by the foreclosure.

The bill adds and amends definitions used throughout the bill.

The bill requires the notice that a residential borrower receives when a holder seeks an order authorizing sale (OAS) under rule 120, C.R.C.P., to include new disclosures specifying that:

  • A statement or opinion offered by the holder or its attorneys or agents is not advice to the borrower, and that those persons’ sole loyalty is to the party that claims to be the holder;
  • In response to the motion for an OAS, the borrower may challenge the sale on specified grounds, including whether the applicant has a right to enforce a recorded security interest in the real property affected by the foreclosure; and
  • It is illegal for a foreclosure consultant to charge an up-front fee.

The bill addresses “dual tracking,” in which a lender simultaneously negotiates with the borrower for a loan modification and pursues foreclosure through the public trustee. This section requires the servicer of the loan to establish a single point of contact by which the borrower may stay apprised of the status of his or her application for a loan modification. Section 4 also prohibits the lender from starting or continuing with the foreclosure process if the borrower is complying with the terms of a trial payment plan or other foreclosure prevention alternative.

The bill explicitly authorizes any party to an OAS proceeding to raise, and requires the court to consider, the issue of whether the moving party has an enforceable legal interest in the property. The bill also requires that the notice posted on the property in advance of the OAS proceeding contain a prominent disclosure that the borrower must respond in writing by a specific date or lose the right to object to a sale of the property.

At the request of the Real Estate Section, the CBA Legislative Policy Committee has voted to oppose the bill in its current form. The bill is assigned to the Business, Labor, Economic, & Workforce Development Committee; the committee will consider the bill on Thursday, April 11, at 1:30 p.m.

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