September 24, 2017

Colorado Court of Appeals: Statutory Limitations Period Began when Broker Knew of Contractual Breach

The Colorado Court of Appeals issued its opinion in International Network, LLC v. Woodard on April 6, 2017.

Breach of Contract—Exclusive Right-to-Sell Listing—Statute of Limitations—Jury Instructions.

Woodard (seller) owned a 100-acre ranch. In 2006 he signed an exclusive right-to-sell listing agreement with International Network, Inc. (broker). The agreement was for a six-month listing period and provided for a percentage commission to be paid to broker upon sale. Seller had the absolute right to cancel the agreement at any time upon written notice.

Approximately four months into the listing period, seller began negotiating with an attorney who represented a group of potential buyers. Seller did not disclose his negotiations to broker. About a month after commencing these discussions, seller abruptly cancelled the listing agreement without cause. Broker ceased marketing the property. After the listing period had expired, but within the 90-day holdover period set forth in the agreement, seller and the buyers finalized an agreement resulting in the sale of the property.

Seven years later, broker initiated this action against seller for breach of contract based on seller’s failure to comply with the referral provision, which required seller to conduct all negotiations for the sale of the property through broker and refer to broker all communications received from prospective buyers. Following trial, a jury found in favor of broker and awarded damages in the amount of the commission that would have been owed under the listing agreement.

On appeal, seller argued that the trial court erred in denying his motion for directed verdict and his post-trial motion for judgment notwithstanding the verdict because broker’s breach of contract claim was barred by the statute of limitations. C.R.S. § 13-80-101(1)(a) states that a breach of contract claim must be commenced within three years after accrual of the cause of action, and accrual occurs when the breach is discovered or should have been discovered. It was undisputed that seller breached the referral provision in 2006. Seller argued that under the facts, broker should have realized there might have been a breach of the referral provision and through the exercise of reasonable diligence should have discovered it in 2006. Broker asserted it had no knowledge of seller’s duplicity until broker’s agent heard seller’s testimony in another lawsuit in 2011 in which seller testified he had violated the listing agreement and intentionally concealed his negotiations to avoid paying a commission. Therefore, in commencing this action in 2013 broker was within three years of its discovery of the breach. Based on the record, the Colorado Court of Appeals could not conclude that the evidence, viewed in the light most favorable to broker, compelled a different result.

Seller also argued that it was error to not give a jury instruction on the elements of liability for recovery on a real estate commission claim, contending that the broker was not the procuring cause of the sale. Here, seller breached the referral provision and cannot use his intentional concealment of his negotiations to prevent broker from obtaining damages in the form of a commission. The court did not err in rejecting seller’s procuring cause instruction.

Seller contended the trial court erred by rejecting seller’s proposed jury instruction on the affirmative defense of laches. The trial court ruled, and the Court agreed, that seller’s improper conduct precluded his assertion of a laches defense.

Seller further argued that the court erred in denying him the right to impeach broker’s agent with certain evidence. The court precluded seller’s questioning due to lack of a sufficient foundation and acted within its discretion in limiting seller’s cross-examination.

Broker requested attorney fees and costs in accordance with the agreement, which the court awarded.

The judgment was affirmed and the case was remanded for further proceedings to award broker’s costs and attorney fees incurred on appeal.

Summary provided courtesy of The Colorado Lawyer.

Colorado Court of Appeals: Certification of One Claim in Multiple Claim Suit was Abuse of Discretion

The Colorado Court of Appeals issued its opinion in Allison v. Engel on Thursday, April 6, 2017.

Landowners—Default Judgment—Finality—C.R.C.P. 54(b) —Jurisdiction—Certification.

The parties own adjacent parcels of property and for a number of years have had disagreements about the precise boundaries of their neighboring parcels. The Allisons filed a complaint asserting two trespass claims and a claim for declaratory relief. The Engels filed various counterclaims. Numerous motions were filed, and the district court ultimately certified a default judgment on the counterclaim for unjust enrichment as final under C.R.C.P. 54(b). The Colorado Court of Appeals ordered the parties to file supplemental briefs as to whether the unjust enrichment counterclaim is a separate claim for purposes of C.R.C.P. 54(b) and whether there is no just reason for delay of an appeal pertaining solely to that counterclaim.

Generally speaking, the court of appeals has jurisdiction only over appeals from final judgments. Thus, jurisdiction over an appeal from an order the district court has certified as final under Rule 54(b) depends on the correctness of that certification. Here, the district court gave two reasons for concluding that there was no just reason for delay: (1) “avoid[ing] duplicative efforts” and (2) obtaining “a clear sense of direction in terms of the issues to be considered” at trial. The first reason is plainly insufficient to justify certification because the same could be said about any case involving multiple claims or parties as to which a dispositive ruling is entered on one claim, or as to one party, before trial. The second reason is also insufficient to justify certification because it is not a proper function of Rule 54(b) certification to assuage a district court’s doubts about its decision or to provide “guidance” in the resolution of claims. The district court’s reasons do not show that any party will suffer hardship or injustice unless an immediate appeal of the default judgment on the single counterclaim is allowed. The district court abused its discretion, and the court of appeals lacked jurisdiction.

The appeal and cross-appeal were dismissed.

Summary provided courtesy of The Colorado Lawyer.

Bills Regarding Notice of Medicaid Appeals, Special Respondents in Dependency and Neglect, and More Signed

On Thursday, April 6, 2o17, Governor Hickenlooper signed 15 bills into law. To date, the governor has signed 137 bills into law this legislative session. Some of the bills signed Thursday include a bill amending the definition of “special respondent” in the Colorado Children’s Code, a bill prohibiting a court from requiring a medical marijuana patient to abstain from marijuana use as a condition of bond, a bill codifying the presumption that a conveyance of land also includes the property interest in an adjacent vacated right-of-way, and a bill granting qualified immunity to persons performing land stewardship activities on public lands. These bills and the others signed Thursday are summarized here.

  • HB 17-1126: “Concerning the Review of Legal Sufficiency of Medicaid Appeals,” by Reps. Jessie Danielson & Dafna Michaelson Jenet and Sen. Larry Crowder. The bill requires an administrative law judge hearing Medicaid appeals to review the legal sufficiency of the notice of action from which the recipient is appealing at the commencement of the appeal hearing if the notice of action concerns the termination or reduction of an existing benefit, and to take appropriate action if the notice is insufficient.
  • HB 17-1173:“Concerning Medical Communications Regarding Disagreements in Health Care Decisions,” by Rep. Chris Hansen and Sen. Tim Neville. The bill requires a contract between a health insurance carrier and a health provider to include a provision that prohibits a carrier from taking an adverse action against the provider due to a provider’s disagreement with a carrier’s decision on the provision of health care services.
  • HB 17-1183: “Concerning the Repeal of the Condition Required to be Satisfied for a Provision of Law Governing the Disclosure of Communications with Mental Health Professionals to Take Effect,” by Rep. Mike Foote and Sen. Bob Gardner. The bill repeals the contingency provision contained in HB 16-1063 regarding the HIPAA privacy rule.
  • HB 17-1197: “Concerning the Exclusion of Marijuana from the Definition of ‘Farm Products’ with Regard to Regulation of Farm Products under the ‘Farm Products Act’,” by Rep. Joann Ginal and Sen. Don Coram. The bill excludes marijuana from the definition of ‘farm products’ requiring licensure under the Farm Products Act.
  • HB 17-1198“Concerning the Authority for a Special District to Increase the Number of Board Members from Five to Seven,” by Rep. Matt Gray and Sen. Bob Gardner. The bill allows a special district to increase the number of board members by adoption of a resolution by the board and the approval of the resolution by the board of county commissioners or the governing body of the municipality that approved the service plan of the special district.
  • SB 17-046: “Concerning the Modernization of Procedures Pertaining to Warrants and Checks not yet Presented to the State Treasurer for Payment,” by Sen. Jack Tate and Rep. Jeni Arndt. The bill modernizes current practices relating to warrants and checks not timely presented to the state treasurer for payment.
  • SB 17-065: “Concerning a Requirement that Health Care Providers Disclose the Charges they Impose for Common Health Care Services when Payment is made Directly Rather than by a Third Party,” by Sen. Kevin Lundberg and Rep. Susan Lontine. The bill creates the ‘Transparency in Health Care Prices Act’, which requires health care professionals and health care facilities to make available to the public the health care prices they assess directly for common health care services they provide.
  • SB 17-097“Concerning the Presumption that a Conveyance of an Interest in Land Also Conveys an Interest in Adjoining Property Consisting of a Vacated Right-of-Way,” by Sen. Beth Martinez Humenik and Rep. James Coleman. The bill broadens the application of the presumption of conveyance of an adjoining vacated right-of-way to include not only warranty deeds but also all forms of deeds, leases, and mortgages and other liens.
  • SB 17-100: “Concerning Qualified Immunity for Persons Performing Land Stewardship Activities on Public Lands,” by Sen. Jerry Sonnenberg and Reps. Jeni Arndt & Lois Landgraf. The bill strengthens existing legal protections under the federal ‘Volunteer Protection Act of 1997’ and Colorado’s ‘Volunteer Service Act’ for individual volunteers and nonprofit entities who build or maintain recreational trails and related facilities pursuant to grants received under Colorado’s ‘Recreational Trails System Act of 1971’.
  • SB 17-142: “Concerning the Requirement to Include Notification to a Patient Regarding the Patient’s Breast Tissue Classification with the Required Mammography Report,” by Sen. Angela Williams and Rep. Jessie Danielson. The bill requires that each mammography report provided to a patient include information that identifies the patient’s breast tissue classification based on the breast imaging reporting and data system established by the American College of Radiology.
  • SB 17-144: “Concerning the Recommended Continuation of the Education Data Advisory Committee by the Director of the Division of Professions and Occupations in the Department of Regulatory Agencies,” by Sens. Owen Hill & Rachel Zenzinger and Rep. Brittany Pettersen. The bill implements the recommendation of the Department of Regulatory Agencies to continue the education data advisory committee.
  • SB 17-146“Concerning Access to the Electronic Prescription Drug Monitoring Program,” by Sen. Cheri Jahn and Rep. Joann Ginal. The bill modifies provisions relating to licensed health professionals’ access to the electronic prescription drug monitoring program.
  • SB 17-177: “Concerning Amending the Definition of ‘Special Respondent’ in the Children’s Code to Allow a Person to be Voluntarily Joined in a Dependency or Neglect Proceeding,” by Sen. John Cooke and Rep. Paul Rosenthal. The bill amends the Children’s Code definition of “special respondent” to allow a party to be voluntarily joined in a dependency or neglect proceeding.
  • SB 17-178“Concerning Prohibiting a Court from Requiring a Medical-Marijuana Patient to Abstain from the Use of Marijuana as a Condition of Bond,” by Sen. Vicki Marble and Rep. Jovan Melton. The bill prohibits a court from imposing as a bond condition a ban on marijuana use if the person possesses a valid medical marijuana registry identification card.
  • SB 17-230“Concerning Payment of Expenses of the Legislative Department,” by Sens. Lucia Guzman & Chris Holbert and Reps. Patrick Neville & KC Becker. The bill makes appropriations for matters related to the legislative department for the 2017-18 state fiscal year.

For a list of the governor’s 2017 legislative actions, click here.

Bills Regarding Hearsay Exception, Free Speech on College Campuses, Juvenile Court Jurisdiction, and More Signed

On Tuesday, April 4, 2017, the governor signed 16 bills into law. He also signed 14 bills into law on March 30, and 12 bills on March 23. To date, the governor has signed 122 bills into law.

Some of the bills recently signed include a bill clarifying the hearsay exception for people with intellectual and developmental disabilities, a bill correcting the Colorado Uniform Trust Decanting Act, a bill clarifying that a juvenile court has jurisdiction to issue civil protection orders in dependency and neglect cases, a bill clarifying a student’s right to free speech on college campuses, and more. The bills signed since March 23 are summarized here.

April 4, 2017

  • HB 17-1051“Concerning Modernization of the Colorado ‘Procurement Code’,” by Reps. Bob Rankin & Alec Garnett and Sens. Andy Kerr & Don Coram. The bill reviews the entirety of the Colorado Procurement Code and makes several updates in an effort to modernize the Code.
  • HB 17-1101“Concerning the Creation of the Youth Corrections Monetary Incentives Award Program in the Division of Youth Corrections,” by Rep. Paul Rosenthal and Sens. Nancy Todd & Kevin Priola. The bill authorizes the Division of Youth Corrections to establish, at its discretion, a youth corrections monetary incentives award program. The purpose of the program is to provide monetary awards and incentives for academic, social, and psychological achievement to juveniles who were formerly committed to the Division to assist and encourage them in moving forward in positive directions in life.
  • HB 17-1103“Concerning a State Sales and Use Tax Exemption for Historic Aircraft on Loan for Public Display,” by Reps. Dan Nordberg & Dan Pabon and Sens. Dominick Moreno & Bob Gardner. The bill creates a state sales and use tax exemption for a historic aircraft that is on loan for public display, demonstration, educational, or museum promotional purposes in the state provided certain conditions are met.
  • HB 17-1107“Concerning the Implementation of a New Computer System by the Division of Motor Vehicles to Facilitate the Division’s Administration of the Operation of Motor Vehicles in the State,” by Reps. Dan Thurlow & Jeff Bridges and Sen. Beth Martinez Humenik. The bill makes statutory changes regarding implementation of a new computer system.
  • HB 17-1109“Concerning Prosecuting in One Jurisdiction a Person who has Committed Sexual Assaults Against a Child in Different Jurisdictions,” by Reps. Terri Carver & Jessie Danielson and Sens. John Cooke & Rhonda Fields. The bill allows a prosecutor to charge and bring a pattern-offense case for all such assaults in any jurisdiction where one of the acts occurred, rather than prosecuting each act in the jurisdiction in which it occurred.
  • HB 17-1111“Concerning Allowing Juvenile Courts to Enter Civil Protection Orders in Dependency and Neglect Cases,” by Rep. Susan Beckman and Sen. Rhonda Fields. The bill clarifies that the juvenile court has jurisdiction to enter civil protection orders in dependency and neglect actions in the same manner as district and county courts. The court must follow the same procedures for the issuance of the civil protection orders and use standardized forms.
  • HB 17-1149“Concerning Special License Plates Issued to Members of the United States Military who Served in the United States Army Special Forces,” by Reps. Tony Exum & Dafna Michaelson Jenet and Sen. Bob Gardner. The bill clarifies which individuals are eligible for a U.S. Army Special Forces license plate.
  • HB 17-1151“Concerning the Regulation of Electrical Assisted Bicycles,” by Reps. Chris Hansen & Yeulin Willett and Sens. Owen Hill & Andy Kerr. The bill defines electrical assisted bicycles and enacts several regulations regarding manufacture, labeling, and government oversight of such bicycles.
  • HB 17-1152: “Concerning the Authority of a Federal Mineral Lease District to Manage a Portion of the Direct Distribution of Money from the Local Government Mineral Impact Fund to Counties for the Benefit of Impacted Areas,” by Reps. Yeulin Willett & Diane Mitsch Bush and Sen. Ray Scott. The bill gives a federal mineral lease district the option to invest a portion of the funding it receives from the local government mineral impact fund in a fund.
  • SB 17-015“Concerning the Unlawful Advertising of Marijuana,” by Sen. Irene Aguilar and Rep. Dan Pabon. The bill makes it a level 2 drug misdemeanor for a person not licensed to sell medical or retail marijuana to advertise for the sale of marijuana or marijuana concentrate.
  • SB 17-016“Concerning the Optional Creation of a Child Protection Team by a County,” by Sens. Cheri Jahn & Tim Neville and Reps. Tracy Kraft-Tharp & Dan Nordberg. The bill allows counties and groups of contiguous counties to choose whether to establish a child protection team, at the discretion of the county director or the directors of a contiguous group of counties.
  • SB 17-048“Concerning Requiring an Officer to Arrest an Offender who Escapes from an Intensive Supervision Program in the Department of Corrections,” by Sen. John Cooke & Rep. Yeulin Willett. The bill requires a peace officer who believes that an offender in an intensive supervision program has committed an escape by knowingly removing or tampering with an electronic monitoring device to immediately seek a warrant for the offender’s arrest or arrest the offender without undue delay if the offender is in the presence of the officer.
  • SB 17-062“Concerning the Right to Free Speech on Campuses of Public Institutions of Higher Education,” by Sen. Tim Neville and Reps. Jeff Bridges & Stephen Humphrey. The bill prohibits public institutions of higher education from limiting or restricting student expression in a student forum, and prohibits those institutions for penalizing free speech.
  • SB 17-066“Concerning Clarifying Retroactively the Authority of a Municipality to Employ a Police Force without Going Through Sunrise Review,” by Sens. Rhonda Fields & John Cooke and Reps. Steve Lebsock & Lori Saine. The bill clarifies that municipalities may employ a police force without going through the review process for groups seeking peace officer status.
  • SB 17-076“Concerning Authority to Spend Money in the Public School Performance Fund,” by Sen. Kevin Priola and Rep. James Coleman. The bill allows the Department of Education to spend money received as gifts, grants, and donations for monetary awards to certain high-performing public schools and in purchasing tangible items of recognition for the schools.
  • SB 17-125“Concerning Allowing Certain Persons who Have Been Exonerated of Crimes to Receive in Lump-Sum Payments Compensation that is Owed to Them by the State,” by Sen. Lucia Guzman and Rep. Dan Pabon. The bill allows an exonerated person to elect to receive the remaining balance of the state’s duty of compensation in a lump sum rather than periodic payments.

March 30, 2017

  • HB 17-1059: “Concerning the Scheduled Repeal of Reports by the Department of Public Safety to the General Assembly,” by Rep. Dan Thurlow and Sen. Jack Tate. The bill continues indefinitely statutory reporting requirements.
  • HB 17-1076“Concerning Rule-making by the State Engineer Regarding Permits for the Use of Water Artificially Recharged into Nontributary Groundwater Aquifers,” by Rep. Jeni Arndt and Sens. Stephen Fenberg & Don Coram. The bill adds a requirement that the state engineer promulgate rules for the permitting and use of waters artificially recharged into nontributary groundwater aquifers.
  • HB 17-1147“Concerning Defining the Purposes of Community Corrections Programs,” by Rep. Lang Sias and Sen. Daniel Kagan. The bill statutorily defines the purpose of community corrections as to further all purposes of sentencing and improve public safety.
  • HB 17-1180: “Concerning Requirements for the Tuition Assistance Program for Students Enrolled in Career and Technical Education Certificate Programs,” by Reps. Faith Winter & Polly Lawrence and Sens. Andy Kerr & Tim Neville. The bill allows students in technical education programs to receive tuition assistance even if they do not meet credit hour requirements for the federal Pell grant program.
  • SB 17-024“Concerning the Hearsay Exception for Persons with an Intellectual and Developmental Disability when a Defendant is Charged with a Crime Against an At-risk Person,” by Sen. Rhonda Fields and Rep. Dave Young. The bill clarifies that the hearsay exception for a person with an intellectual and developmental disability applies if the defendant is charged under the increased penalties for crimes against at-risk persons.
  • SB 17-031“Concerning the Scheduled Repeal of Reports by the Department of Corrections to the General Assembly,” by Sen. Jack Tate and Rep. Jeni Arndt. The bill continues indefinitely reporting requirements for the Department of Corrections and makes other changes.
  • SB 17-033“Concerning the Authority of a Professional Nurse to Delegate Dispensing Authority for Over-the-Counter Medications,” by Sen. Irene Aguilar and Rep. Polly Lawrence. The bill allows a professional nurse to delegate to another person, after appropriate training, the dispensing authority of an over-the-counter medication to a minor with the signed consent of the minor’s parent or guardian.
  • SB 17-073“Concerning Promotion of the Runyon-Fountain Lakes State Wildlife Area,” by Sen. Leroy Garcia and Rep. Donald Valdez. The bill directs stakeholders interested in the Runyon-Fountain lakes state wildlife area (including the Colorado division of parks and wildlife, the city of Pueblo, and the Pueblo conservancy district) to cooperatively engage in a long-term process to promote the maximum beneficial development and maintenance of the area.
  • SB 17-110“Concerning Expanding the Number of Unrelated Children to No More than Four to Qualify for License-exempt Family Child Care,” by Sens. Larry Crowder & John Kefalas and Reps. James Wilson & Jessie Danielson. The bill expands the circumstances under which an individual can care for children from multiple families for less than 24 hours without obtaining a child care license.
  • SB 17-122“Concerning the Duties of the Fallen Heroes Memorial Commission, and, in Connection Therewith, Repealing the Commission and Shifting all Remaining Responsibilities to the State Capitol Building Advisory Committee,” by Sen. Jack Tate and Reps. Terri Carver & Jessie Danielson. The bill repeals the fallen heroes memorial commission and requires the state capitol building advisory committee to take on any remaining duties of the commission.
  • SB 17-123“Concerning a High School Diploma Endorsement for Biliteracy,” by Sens. Rachel Zenzinger & Kevin Priola and Reps. James Wilson & Millie Hamner. The bill authorizes a school district, BOCES, or institute charter high school to grant a diploma endorsement in biliteracy to a student who demonstrates proficiency in English and at least one foreign language.
  • SB 17-124“Concerning a Correction to the ‘Colorado Uniform Trust Decanting Act’,” by Sens. Beth Martinez Humenik & Dominick Moreno and Reps. Edie Hooten & Dan Nordberg. The bill changes one reference to the second trust to the first trust to conform with the Uniform Law Commission’s corrected version of the Act.
  • SB 17-134“Concerning the Exclusion of Certain Areas of an Alcohol Beverage Licensee’s Operation in the Application of Penalties for Certain Violations,” by Sen. Jack Tate and Reps. Dan Nordberg & Leslie Herod. The bill limits penalties for violations relating to the sale of alcohol beverages to a visibly intoxicated or underage person that occur in a sales room for licensees operating a beer wholesaler, winery, limited winery, or distillery, or in a retail establishment, for licensees operating a brew pub, vintner’s restaurant, or distillery pub.
  • SB 17-194“Concerning an Exception to the Statutory Deadlines for Making Income Tax Refunds for Returns Suspected of Refund-related Fraud,” by Sen. Tim Neville and Rep. Dan Pabon. The bill specifies that if the department of revenue makes a determination, in good faith, that there is a suspicion of identity theft or other refund-related fraud, then the statutory deadlines do not apply.

March 23, 2017

  • HB 17-1015: “Concerning Clarifying the Manner in Which Reductions of Inmates’ Sentences are Administered in County Jails,” by Rep. Edie Hooten and Sen. John Cooke. The bill clarifies and consolidates various statutory sections concerning reductions of sentences for county jail inmates.
  • HB 17-1040: “Concerning Authorizing the Interception of Communication Relating to a Crime of Human Trafficking,” by Reps. Paul Lundeen & Mike Foote and Sens. Cheri Jahn & Kevin Priola. The bill adds human trafficking to the list of crimes for which a judge can issue an order authorizing the interception of certain communications.
  • HB 17-1044“Concerning Autocycles, and, in Connection Therewith, Clarifying that an Autocycle is a Type of Motorcycle and Requiring Autocycle Drivers and Passengers to Use Safety Belts and, if Applicable, Child Safety Restraints,” by Rep. Diane Mitsch Bush and Sen. Nancy Todd. The bill amends the definition of “autocycle” and amends the restraint requirements for autocycles.
  • HB 17-1048“Concerning the Prosecution of Insurance Fraud,” by Rep. Mike Foote and Sen. Jim Smallwood. The bill amends language describing the criminal offense of insurance fraud.
  • HB 17-1065“Concerning a Clarification of Requirements Governing the Formation of Metropolitan Districts, and, in Connection Therewith, Limiting the Inclusion of Agricultural Land Within a Metropolitan District Providing Park and Recreational Services and Clarifying Signature Requirements Governing Judicial Approval of a Petition for Organization of a Proposed Special District,” by Rep. Kimmi Lewis and Sen. Vicki Marble. The bill subjects metropolitan districts to certain limitations regarding parks and recreation and clarifies which signatures can be counted by the district court in determining validity.
  • HB 17-1071“Concerning a Process for Repayment of Certain Criminal Monetary Amounts Ordered by the Court to be Paid Following Conviction,” by Reps. Cole Wist & Pete Lee and Sens. Daniel Kagan & Bob Gardner. The bill establishes a process for a defendant who has paid a monetary amount due for a criminal conviction in a district or county court to request a refund of the amount paid if the conviction was overturned or the restitution award was reversed.
  • HB 17-1092“Concerning Contracts Involving License Royalties with Proprietors of Retail Establishments that Publicly Perform Music,” by Rep. Steve Lebsock and Sen. Jack Tate. The bill expands the law covering contracts between performing rights societies and proprietors of retail establishments to cover investigations and negotiations between the two.
  • HB 17-1133“Concerning the Annual Report on Filing-Office Rules by the Secretary of State,” by Reps. Dan Nordberg & Edie Hooten and Sens. Dominick Moreno & Jack Tate. The bill repeals the requirement that the secretary of state annually report to the governor and legislature regarding filing-office rules promulgated under the “Uniform Commercial Code – Secured Transactions.”
  • HB 17-1136“Concerning Consistent Statutory Language for Electronic Filing of Taxes,” by Rep. Mike Foote and Sen. Bob Gardner. The bill changes the EFT and electronic filing requirements in the taxation statutes for consistency, specifying in all cases that the department may require EFT and electronic filing and that the department may promulgate rules to implement EFT and electronic filing.
  • HB 17-1148“Concerning Applications for Registration to Cultivate Industrial Hemp,” by Rep. Jeni Arndt and Sen. John Cooke. The bill adds a requirement to existing registration requirements that applicants to cultivate industrial hemp for commercial purposes provide the names of each officer, director, member, partner, or owner of 10% or more in the entity applying for registration and any person managing or controlling the entity.
  • HB 17-1157“Concerning Reliance by a Financial Institution on a Certificate of Trust,” by Reps. Tracy Kraft-Tharp & Dan Nordberg and Sen. Kevin Priola. The bill requires trustees to provide additional information in a certificate of trust when trustees open a trust deposit account and permits the bank to rely on the certificate of trust absent knowledge of fraud.
  • SB 17-008“Concerning Legalizing Certain Knives,” by Sen. Owen Hill and Rep. Steve Lebsock. The bill removes gravity knives and switchblades from the definition of illegal weapons.

For a list of the governor’s 2017 legislative decisions, click here.

Bills Correcting Statutory References, Changing Child Welfare Allocations, Implementing State Engineer’s Functions, and More Signed

On Friday, March 17, 2017, the governor signed 21 bills into law. To date, he has signed 63 bills this 2017 legislative session. The bills signed Friday include a bill to update statutory references to people with disabilities, a bill outlining the procedure to correct statutory references in administrative procedural rules, a bill redetermining the child welfare allocation formula, and a bill exempting steroids injected into nonhumans from controlled substances statutes. The bills signed Friday are summarized here.

  • HB 17-1006“Concerning the Authorization of a Process to Correct Statutory Citations Contained in Executive Branch Agency Rules Published in the Code of Colorado Regulations without the Requirement to Follow Rule-Making Procedures,” by Rep. Mike Foote and Sen. Daniel Kagan. The bill allows agencies to correct statutory citations in the code of Colorado regulations without notice, comment, or a hearing by submitting to the secretary of state a specific, written determination by the attorney general.
  • HB 17-1011“Concerning a Limitation on When Certain Disciplinary Actions may be Commenced Against a Mental Health Professional, and, in Connection Therewith, Requiring that a Mental Health Professional Provide Notice to Former Clients Regarding Record Retention and that All Complaints be Resolved by the Agency within Two Years after the Date the Complaint was Filed,” by Rep. Jovan Melton and Sen. Jack Tate. The bill requires that any complaint filed with the division of professions and occupations in the department of regulatory agencies against a mental health professional alleging a maintenance-of-records violation must be commenced within 7 years after the alleged act or failure to act giving rise to the complaint.
  • HB 17-1014“Concerning the Elimination of the Criminal Penalty Imposed Upon an Elector for Disclosing the Contents of the Elector’s Voted Ballot,” by Reps. Paul Rosenthal & Dave Williams and Sens. Kerry Donovan & Owen Hill. The bill deletes the ballot selfie prohibition in the Uniform Election Code provided certain conditions are met.
  • HB 17-1032“Concerning the Evidentiary Privilege for Communications Made During the Provision of Certain Peer Support Services,” by Rep. Jeni Arndt and Sen. John Cooke. The bill clarifies that privileged peer support communications need not be made during individual meetings in order to be confidential.
  • HB 17-1034“Concerning Licensing Changes to the Medical Marijuana Code to Conform with the Retail Marijuana Code,” by Rep. Dan Pabon and Sen. Randy Baumgardner. The bill creates a requirement for a medical marijuana business operator to be licensed, and allows a medical marijuana licensee to move his or her business anywhere in Colorado upon approval of the state and local jurisdiction. The bill also allows a medical marijuana licensee to remediate its product if it contains a foreign substance.
  • HB 17-1046“Concerning Updating Statutory References to Certain Limited Outdated Terms Relating to People with Disabilities,” by Rep. Steve Lebsock and Sen. Kerry Donovan. The bill updates certain limited terms in statute that refer to persons with intellectual and developmental disabilities or physical disabilities using insensitive or outdated terminology.
  • HB 17-1050“Concerning the Annual In-Service Training Required for a County Sheriff,” by Rep. Hugh McKean and Sen. Daniel Kagan. The bill specifies that each sheriff undergo at least the number of hours required for all certified peace officers by the peace officers standards and training board (POST board), but in no case less than 20 hours.
  • HB 17-1052“Concerning Factors to Take Into Consideration in Determining the Child Welfare Allocation Formula in a Given Fiscal Year,” by Rep. Susan Beckman and Sen. Jim Smallwood. The bill removes certain data-gathering factors currently required to be taken into consideration in determining a fiscal year’s child welfare allocation formula for counties and replaces those with a broader scope of factors that directly affect the population of children in need of child welfare services.
  • HB 17-1054“Concerning Partnerships Between Local Governments and Military Installations, and, in Connection Therewith, Identifying Shared-Service Opportunities to Reduce Costs and Increase Efficiencies,” by Reps. Terri Carver & Dan Nordberg and Sen. Nancy Todd. The bill directs the department of local affairs to support cooperative intergovernmental agreements between military installations and local governments to the extent possible.
  • HB 17-1055“Concerning a Voluntary Contribution Designation Benefiting the Urban Peak Housing and Support Services for Youth Experiencing Homelessness Fund that Appears on the State Individual Tax Return Forms,” by Rep. Leslie Herod and Sen. Bob Gardner. The bill creates the Urban Peak Housing and Support Services for Youth Experiencing Homelessness fund in the state treasury and adds a check-off to state tax returns for five years.
  • HB 17-1094“Concerning Modifications to the Requirements for Health Benefit Plans to Cover Health Care Services Delivered via Telehealth,” by Reps. Perry Buck & Donald Valdez and Sens. Kerry Donovan & Larry Crowder. The bill makes several changes to broaden the application of telehealth services.
  • HB 17-1105“Concerning Narrowing the Circumstances in Which Physical Inspection of a Vehicle is Required before Issuing Legal Documentation Identifying the Vehicle,” by Rep. Jon Becker and Sen. Randy Baumgardner. The bill specifies that the department of revenue may not require physical inspection of a vehicle, including a VIN inspection, to verify information about the vehicle before registering or titling the vehicle if certain requirements are met.
  • HB 17-1137“Concerning the Scheduled Repeal of Reports by the Department of Revenue to the General Assembly,” by Reps. Dan Thurlow & Edie Hooton and Sens. Dominick Moreno & Jack Tate. The bill amends reporting requirements of the Department of Revenue.
  • HB 17-1140“Concerning Permitted Uses of Fee-for-Service Contract Money by the Colorado School of Mines,” by Rep. Jessie Danielson and Sen. Tim Neville. In addition to tuition supports, the bill allows Colorado School of Mines to use state fee-for-service contract money to fund  other services and programs, including counseling, academic support, student recruiting, and precollegiate programs.
  • SB 17-026“Concerning Requirements Governing Implementation of the State Engineer’s Functions, and, in Connection Therewith, Restructuring the Fee that the State Engineer may Charge for Rating Certain Types of Water Infrastructure, Repealing Certain Requirements, and Updating Language in the Statutes Regarding the Division of Water Resources,” by Sen. Jerry Sonnenberg and Rep. Jeni Arndt. The bill makes several changes to the state engineer’s functions and fee requirements.
  • SB 17-030“Concerning the Exemption from the Schedules of Controlled Substances any Anabolic Steroid that is Administered through Injection into Nonhuman Species,” by Sen. Randy Baumgardner and Rep. Daneya Esgar. The bill exempts from the definition of ‘anabolic steroid’ human chorionic gonadotropin licensed for animal use only if it is expressly intended for administration through implants or injection into cattle or other nonhuman species.
  • SB 17-034“Concerning Extension of the Period Following the Declaration by the Governor of a Disaster Emergency in a County Within Which the Board of County Commissioners of the County may Transfer County General Fund Money to the County Road and Bridge Fund for the Purposes of Disaster Response and Recovery,” by Sens. Kevin Lundberg & Matt Jones and Reps. Hugh McKean & Mike Foote. The bill extends from 4 years to 8 years the period within which the board of county commissioners of the county may transfer general fund money to the road and bridge fund for disaster response and recovery.
  • SB 17-050“Concerning the Consolidation of Grant Programs Relating to Forest Management,” by Sen. John Cooke and Reps. Jeni Arndt & KC Becker. The bill transfers a forest management grant program from the Department of Natural Resources to the Forest Service, and realigns the funding for the new grant program and the healthy forest and vibrant communities fund.
  • SB 17-056“Concerning the Scheduled Repeal of Reports by the Department of Public Health and Environment to the General Assembly,” by Sen. Andy Kerr and Rep. Jeni Arndt. The bill addresses reporting requirements of the department of public health and environment.
  • SB 17-090“Concerning How to Measure the Level of Delta-9 Tetrahydrocannabinol in Industrial Hemp,” by Sen. Randy Baumgardner and Rep. Diane Mitsch Bush. The bill requires the commissioner of agriculture to determine the level of delta-9 tetrahydrocannabinol in industrial hemp by measuring the combined concentration of delta-9 tetrahydrocannabinol and its precursor, tetrahydrocannabinolic acid.
  • SB 17-127“Concerning an Expansion of the Exemption from the Requirements that Apply to a Mortgage Loan Originator to Include Up to Three Loans Per Year Without Compensation Between Family Members,” by Sen. Jack Tate and Rep. Dan Pabon. The bill expands the mortgage loan originator exemption to include up to 3 loans per year without compensation, other than interest, between family members, and directs the board of mortgage loan originators to define ‘family member’ by rule.

For a list of the governor’s legislative actions, please visit here.

Colorado Court of Appeals: Senior Living Facilities Constitute “Residential Property” for CDARA Purposes

The Colorado Court of Appeals issued its opinion in Broomfield Senior Living Owner, LLC v. R.G. Brinkmann Co. on Thursday, March 9, 2017.

Senior Facility—Residential—Commercial—Breach of Contract—Construction Defect Action Reform Act—Homeowner Protection Act of 2007—Accrual—Statute of Limitations—Public Policy—Manifestation of a Defect.

Broomfield Senior Living Owner, LLC (Broomfield) brought claims against R.G. Brinkmann Company (Brinkmann) for breach of contract, negligence, negligence per se, negligent misrepresentation, and breach of express warranties in connection with Brinkmann’s construction of Broomfield’s facility. Brinkmann moved for summary judgment, raising both contractual limitations and statutory limitations defenses to all of Broomfield’s claims. The trial court granted Brinkmann’s motion for summary judgment, reasoning that the two-year statute of limitations applicable to civil claims had expired before Broomfield filed its complaint and that Broomfield had waived its rights to assert claims for repairs under the contract by failing to give Brinkmann timely notice of defects or adequate time to make repairs.

On appeal, Broomfield contended that the trial court erred in granting summary judgment and applying the accrual provisions of the contract rather than the accrual provision of the Construction Defect Action Reform Act (CDARA), titled the “Homeowner Protection Act of 2007” (HPA). Under the parties’ contract, the contractual limitations period expired independent of when the acts or failures to act were discovered, while CDARA links the accrual of construction defect claims to their discovery. The HPA renders a contract’s limitation or waiver of CDARA’s rights and remedies void as against public policy in cases involving claims arising from residential property. The Colorado Court of Appeals determined that the term “residential” is “unambiguous and means an improvement on a parcel that is used as a dwelling or for living purposes.” Here, the building is used as a home for senior residents. Accordingly, the senior facility is “residential property,” Broomfield is a “residential property owner,” and the HPA applies. As such, the contract’s terms limiting the accrual of claims are void as a matter of public policy, and the relevant statutory claims accrual periods apply, making Broomfield’s action timely.

Broomfield also contended that the trial court erred in precluding its breach of warranty claim based on its failure to give Brinkmann an opportunity to correct the defects. The court determined that genuine issues of material fact remain regarding whether Brinkmann received prompt notice of the defects and whether it had an adequate opportunity to correct its work.

Broomfield further argued that the trial court erred in concluding that its negligence claims were barred and that it failed to establish that Brinkmann performed design services. The court concluded that these claims were not barred and the parties offered conflicting design services evidence. Further, a genuine issue of fact remains concerning whether the alleged defects are patent or latent.

The judgment was reversed and the case was remanded.

Summary provided courtesy of The Colorado Lawyer.

Colorado Court of Appeals: Property Used as Vacation Home and Listed on VRBO Properly Classified as Residential

The Colorado Court of Appeals issued its opinion in O’Neil v. Conejos County Board of Commissioners on Thursday, March 9, 2017.

Real Property—Residential—Commercial—Ad Valorem Taxes—Burden of Proof.

James and Mary Ellen O’Neil purchased the subject property and built a log house on it for their use as a vacation home and as an inheritance for their sons. The house was initially classified for tax purposes as residential. After the O’Neils listed the property as available for short-term, overnight rental, the Conejos County Assessor (Assessor) reclassified the property, for ad valorem tax purposes, from residential to commercial. The O’Neils filed a petition for abatement with the Conejos County Board of Commissioners (County), which was denied, and then appealed to the Board of Assessment Appeals (Board), which overturned the Assessor’s action and returned the property’s classification to residential for the relevant years.

On appeal, the County contended that the Board improperly classified the O’Neils’ property as residential. The County asserted as a procedural error that that the Board failed to apply the presumption in favor of the Assessor’s property classification. The Board’s order demonstrated that it implicitly applied the presumption in favor of the County, and the O’Neils met their burden of proof to overcome that presumption. On the merits, the Board determined that the proper classification of the property was “residential” because its “predominant and actual use was as a second home.” The Board’s determination had a reasonable basis in law and was supported by substantial evidence in the record.

The order was affirmed.

Summary provided courtesy of The Colorado Lawyer.

Governor Hickenlooper Signs Bills Into Law

On Wednesday, March 1, 2017, Governor Hickenlooper signed the first bills of the 2017 Legislative Session into law. The governor signed 26 bills on March 1, many of which were supplemental appropriations bills. The governor also signed 16 bills on Wednesday, March 8, 2017. To date, he has signed 42 bills into law. All of these bills are summarized here.

  • HB 17-1005“Concerning Modernization of Various Laws Relating to the Office of the State Auditor,” by Rep. Jeni Arndt and Sen. Jack Tate. The bill updates various statutes pertaining to the office of the state auditor.
  • HB 17-1010“Concerning the Authority of the Colorado Dental Board to Promulgate Rules Based on Clarifications to Existing Laws that Relate to Collaborative Dental Agreements,” by Rep. Joann Ginal and Sen. Larry Crowder. The bill clarifies that the Colorado dental board may promulgate rules for the use of lasers for dental and dental hygiene purposes within the defined scopes of practice and with appropriate supervision.
  • HB 17-1016“Concerning the Ability of an Urban Renewal Authority to Exclude the Valuation Attributable to the Extraction of Mineral Resources Located Within an Urban Renewal Area from the Total Amount of Taxable Property Subject to Division for the Purpose of Financing Urban Renewal Projects,” by Reps. Lori Saine & Matt Gray and Sens. Rachel Zenzinger & Beth Martinez Humenik. The bill permits the governing body of a municipality, as applicable, to provide in an urban renewal plan that the valuation attributable to the extraction of mineral resources located within the urban renewal area is not subject to the division of taxes between base and incremental revenues that accompanies the tax increment financing of urban renewal projects.
  • HB 17-1017“Concerning County Surveyors,” by Rep. Chris Kennedy and Sens. Cheri Jahn & Randy Baumgardner. The bill clarifies the specific duties of a county surveyor and provides that certain services may be provided at the surveyor’s discretion and when compensated by agreement between the surveyor and the board of county commissioners.
  • HB 17-1018“Concerning Extension of the Authorization for a Regional Transportation Authority to Seek Voter Approval for a Uniform Mill Levy on all Taxable Property within its Territory,” by Reps. Diane Mitsch Bush & Larry Liston and Sen. Bob Gardner. The bill extends authorization for a regional transportation authority to seek voter approval for a uniform mill levy of up to 5 mills on all taxable property within its territory until January 1, 2029.
  • HB 17-1019“Concerning the Amounts Collected by a County Treasurer upon Redemption of Specified Property Interests from a Tax Sale,” by Rep. Donald Valdez and Sen. Don Coram. The bill requires any third party computer software costs to be included in the redemption amount for tax liens on real property.
  • HB 17-1020“Concerning Treatment of Persons with Mental Illness in the Criminal and Juvenile Justice Systems,” by Rep. Jonathan Singer and Sen. Beth Martinez Humenik. The bill amends provisions in current statute to provide for ongoing staff support for the task force concerning treatment of persons with mental illness in the criminal and juvenile justice systems.
  • HB 17-1024“Concerning the Nonsubstantive Relocation of Laws Pertaining to the Commission on Family Medicine,” by Rep. Dan Thurlow and Sen. Dominick Moreno. The bill relocates laws pertaining to the commission on family medicine to Title 25.5, Colorado Revised Statutes, which pertains generally to the Department of Health Care Policy & Financing.
  • HB 17-1025“Concerning the Repeal of Obsolete Laws Relating to Reapportionment of State Legislative Districts,” by Rep. Jeni Arndt and Sen. Chris Holbert. The bill repeals obsolete laws related to drawing senate and house of representative districts, thereby removing 20,000 words from the Colorado Revised Statutes.
  • HB 17-1030“Concerning Updates to the 1921 Law Governing Irrigation Districts,” by Reps. Jeni Arndt & Jon Becker and Sen. Randy Baumgardner. The bill makes several amendments to the 1921 irrigation district laws.
  • HB 17-1047“Concerning the Scheduled Repeal of Reports by the Department of Local Affairs to the General Assembly,” by Rep. Dan Thurlow and Sen. Jack Tate. The bill addresses reporting requirements of the department of local affairs.
  • HB 17-1058“Concerning the Scheduled Repeal of Reports by the Department of Personnel to the General Assembly,” by Rep. Dan Thurlow and Sen. Andy Kerr. The bill addresses reporting requirements of the Department of Personnel and Administration and changes repeal dates.
  • HB 17-1060“Concerning the Scheduled Repeal of Reports by the Department of Health Care Policy and Financing to the General Assembly,” by Rep. Dan Thurlow and Sen. Jack Tate. The bill changes repeal dates and reporting requirements for certain Department of Health Care Policy and Financing actions.
  • HB 17-1067“Concerning Updating References to a National Standard Setting Forth Technical Criteria for Accessible Housing,” by Rep. Dan Thurlow and Sen. Andy Kerr. The bill updates references to a national standard for accessible housing criteria.
  • HB 17-1073“Concerning the Enactment of Colorado Revised Statutes 2016 as the Positive and Statutory Law of the State of Colorado,” by Rep. Mike Foote and Sen. Ray Scott. The bill enacts the 2016 Colorado Revised Statutes as the law of Colorado.
  • HB 17-1074“Concerning the Repeal of Obsolete Laws Relating to Redistricting of Congressional Districts,” by Rep. Jeni Arndt and Sen. Chris Holbert. The bill repeals a law relating to Colorado’s congressional districts that has been rendered obsolete by the redistricting premised on the 2010 federal census.
  • HB 17-1078“Concerning the Repeal of the Colorado Family Support Loan Program, and, in Connection Therewith, Transferring Funds from the Colorado Family Support Loan Program to the Family Support Services Program to Provide Services for Families of Persons with Intellectual and Developmental Disabilities,” by Rep. Lois Landgraf and Sen. Don Coram. The bill repeals the Colorado family support loan fund and transfers any money remaining in that fund to a new fund created in the family support services program.
  • HB 17-1128“Concerning the Salary Categorization of Locally Elected Officials in Lake County,” by Rep. Millie Hamner and Sen. Kerry Donovan. The bill changes the salary categorization for locally elected officials in Lake County.
  • HB 17-1131“Concerning Contracting by the Colorado Student Loan Program for the Administration of the College Opportunity Fund Program,” by Reps. Tracy Kraft-Tharp & Lori Saine and Sens. Kerry Donovan & Jim Smallwood. The bill permits the Colorado student loan program to enter into an agreement with the Department of Higher Education or another state entity to administer part or all of the college opportunity fund program.
  • SB 17-013“Concerning Authorization of the Board of Directors of the Fire and Police Pension Association to Develop a Multi-Employer Deferred Compensation Plan Document,” by Sen. Matt Jones and Reps. Kevin Van Winkle & Jessie Danielson. The bill authorizes the Board of Directors of the Fire and Police Pension Association to develop a multi-employer deferred compensation plan document to allow employers to join a multi-employer plan.
  • SB 17-018“Concerning a Correction to an Amending Clause in Senate Bill 16-146 Related to the Repeal of Part 14 of Article 4 of Title 25,” by Sen. Dominick Moreno and Rep. Jeni Arndt. The bill fixes an incorrect amending clause from Senate Bill 16-146, ‘Concerning Modernizing Statutes Related to Sexually Transmitted Infections’, that failed to repeal the entirety of part 14 of article 4 of title 25 prior to the repeal and relocation of sections in that part 14.
  • SB 17-020“Concerning the Establishment of a Uniform Approval Standard for Fire and Police Pension Association Statewide Plan Elections,” by Sen. John Cooke and Reps. Joann Ginal & Jovan Melton. The bill creates a uniform approval standard for modifications to FPPA pension plans by requiring that any modifications be approved by 65% of the members employed by the employer who vote in the election for the plan modification.
  • SB 17-044“Concerning the Scheduled Repeal of Reports by the Department of Regulatory Agencies to the General Assembly,” by Sen. Andy Kerr and Rep. Jeni Arndt. The bill makes several changes to the reporting requirements and repeal dates for the Department of Regulatory Agencies.
  • SB 17-052“Concerning Recommendations Related to Title 22 from the Department of Education to the Statutory Revision Committee,” by Sen. Andy Kerr and Rep. Dan Thurlow. The bill implements two recommendations related to Title 22 from the department of education to the statutory revision committee.
  • SB 17-058“Concerning the Authority of Certain Individuals to Purchase Alcohol Beverages for a Premises Licensed to Sell Alcohol Beverages for Consumption on the Licensed Premises,” by Sen. Randy Baumgardner and Rep. Jonathan Singer. The bill allows an employee or agent to purchase alcohol beverages on behalf of a hotel and restaurant licensee, tavern licensee, or lodging and entertainment facility licensee.
  • SB 17-159“Concerning a Supplemental Appropriation to the Department of Corrections,” by Sen. Kent Lambert and Rep. Millie Hamner. The bill makes a supplemental appropriation to the Department of Corrections.
  • SB 17-160“Concerning a Supplemental Appropriation to the Department of Education,” by Sen. Kent Lambert and Rep. Millie Hamner. The bill makes a supplemental appropriation to the Department of Education.
  • SB 17-161“Concerning a Supplemental Appropriation to the Offices of the Governor, Lieutenant Governor, and State Planning and Budgeting,” by Sen. Kent Lambert and Rep. Millie Hamner. The bill makes a supplemental appropriation to the offices of the Governor, Lieutenant Governor, and state planning and budgeting.
  • SB 17-162“Concerning a Supplemental Appropriation to the Department of Health Care Policy and Financing,” by Sen. Kent Lambert and Rep. Millie Hamner. The bill makes a supplemental appropriation to the Department of Health Care Policy and Financing.
  • SB 17-163“Concerning a Supplemental Appropriation to the Department of Human Services,” by Sen. Kent Lambert and Rep. Millie Hamner. The bill makes a supplemental appropriation to the Department of Human Services.
  • SB 17-164“Concerning a Supplemental Appropriation to the Judicial Department,” by Sen. Kent Lambert and Rep. Millie Hamner. The bill makes a supplemental appropriation to the Judicial Department.
  • SB 17-166“Concerning a Supplemental Appropriation to the Department of Military and Veterans Affairs,” by Sen. Kent Lambert and Rep. Millie Hamner. The bill makes a supplemental appropriation to the to Department of Military and Veterans Affairs.
  • SB 17-167“Concerning a Supplemental Appropriation to the Department of Personnel,” by Sen. Kent Lambert and Rep. Millie Hamner. The bill makes a supplemental appropriation to the Department of Personnel.
  • SB 17-168“Concerning a Supplemental Appropriation to the Department of Public Safety,” by Sen. Kent Lambert and Rep. Millie Hamner. The bill makes a supplemental appropriation to the Department of Public Safety.
  • SB 17-169“Concerning a Supplemental Appropriation to the Department of Revenue,” by Sen. Kent Lambert and Rep. Millie Hamner. The bill makes a supplemental appropriation to the Department of Revenue.
  • SB 17-170“Concerning a Supplemental Appropriation to the Department of State,” by Sen. Kent Lambert and Rep. Millie Hamner. The bill makes a supplemental appropriation to the Department of State.
  • SB 17-171“Concerning a Supplemental Appropriation to the Department of Transportation,” by Sen. Kent Lambert and Rep. Millie Hamner. The bill makes a supplemental appropriation to the Department of Transportation.
  • SB 17-172“Concerning Funding for Capital Construction, and Making Supplemental Appropriations in Connection Therewith,” by Sen. Kent Lambert and Rep. Millie Hamner. The bill makes supplemental appropriations for capital construction projects.
  • SB 17-173“Concerning Adjustments in the Amount of Total Program Funding for Public Schools for the 2016-17 Budget Year, and, in Connection Therewith, Making an Appropriation,” by Sen. Kent Lambert and Rep. Millie Hamner. The bill appropriates $3,950 cash funds from the state education fund to align the hold-harmless full-day kindergarten funding with the change in total program funding.
  • SB 17-174“Concerning the Allocation of Money by the Colorado Commission on Higher Education for Tuition Assistance for Members of the National Guard,” by Sen. Kent Lambert and Rep. Millie Hamner. The bill removes statutory provisions relating to the limit on appropriations and the commission’s allocation of money for the tuition assistance program.
  • SB 17-175“Concerning the Transfer of Money Between State Self-Insurance Funds at the Request of the Executive Director of the Department of Personnel,” by Sen. Kent Lambert and Rep. Millie Hamner. The bill authorizes the Executive Director of the Department of Personnel to request the state treasurer to transfer money from another state self-insurance fund’s reserve balance to a fund with a deficiency.
  • SB 17-176“Concerning Authorization to Use Money in the Colorado State Titling and Registration Account to Issue Devices that Confirm that a Person has Registered a Motor Vehicle, and, in Connection Therewith, Making an Appropriation,” by Sen. Dominick Moreno and Rep. Bob Rankin. The bill authorizes the use of money in the Colorado state titling and registration account to be appropriated to purchase and issue license plates, decals, and validating tabs.

For a list of the governor’s 2017 legislative actions, please click here.

Colorado Court of Appeals: Condominium Declarations Control Over Contrary Provision in CCIOA

The Colorado Court of Appeals issued its opinion in Francis v. Aspen Mountain Condominium Association, Inc. on Thursday, February 23, 2017.

Condominium Declaration—Common Expenses—Amendment—Colorado Common Interest Ownership Act—Motion for Leave to Amend—Indispensable Parties.

The Francis parties are trusts and their fiduciaries and other individuals with ownership interests in the Aspen Mountains Condominiums. The parties’ dispute arose from a contested 2010 vote that amended the original 1972 condominium declaration to reallocate the common interest shares and common expenses. The 1972 declaration had originally allocated common interest shares and common expenses based on unit size, and the amended declaration reallocated common interest shares equally among all units. Common expenses increased for the Francis parties, and they later filed suit, seeking a judgment voiding the reallocation of the common interest shares. The trial court ruled in favor of the Aspen Mountain Condominium Association, Inc. (AMCA), finding that the 2010 amendment had been properly adopted.

On appeal, the Francis parties first contended that the trial court erred by partially granting AMCA’s motion for a determination of law. Here, the declaration required a unanimous vote to alter the percentage of the undivided interests in the general common elements. The trial court erred by holding that the Colorado Common Interest Ownership Act, which went into effect in 1992, nullified the 1972 declaration’s requirement of a unanimous vote to alter ownership interests in the common elements.

The Francis parties also contended that the trial court erred in denying their motion for leave to amend the complaint to assert additional breach of fiduciary duty claims against AMCA. The motion was submitted after the discovery deadline and only a few months before trial. Further, the case had been pending for more than five years, and the Francis parties had already amended the complaint five times and could have added the newly asserted claim at any point. Therefore, the court did not abuse its discretion in denying leave to amend.

Next, the Francis parties argued that the trial court erred by denying their CRCP 59(a) motion to amend the judgment based on failure to join as indispensable parties the beneficiaries of the various trusts included among the Francis parties. The proposed additional parties were alleged to be beneficiaries of trusts that were already parties to the action and were represented by their respective trustees. As a matter of law, the beneficiaries’ interests were sufficiently protected by the trustees’ participation in the action on their behalf.

The judgment was affirmed in part and reversed in part, and the case was remanded with directions.

Summary provided courtesy of The Colorado Lawyer.

SB 17-097: Broadening Application of Presumption of Conveyance for Adjacent Rights-of-Way

On January 27, 2017, Sen. Beth Martinez Humenik and Rep. James Coleman introduced SB 17-097, “Concerning the Presumption that a Conveyance of an Interest in Land also Conveys an Interest in Adjoining Property Consisting of a Vacated Right-of-Way.”

Under current law, a conveyance by warranty deed carries the presumption that the grantor’s interest in an adjoining vacated street, alley, or other right-of-way is included with the property whose legal description is contained in the deed. However, this presumption does not apply to other types of deeds or to a lease, mortgage, or other conveyance or encumbrance.

The bill removes the language containing the presumption from the warranty deed statute and relocates it, with amendments, so as to broaden the application of the presumption of conveyance of an adjoining vacated right-of-way to include not only warranty deeds but also all forms of deeds, leases, and mortgages and other liens.

The bill was introduced in the Senate and assigned to the Judiciary Committee. It was amended in committee and referred to the Senate Committee of the Whole for Second Reading. The bill passed Second Reading with amendments and passed Third Reading with no further amendments. The bill was introduced in the House and assigned to the Local Government Committee.

SB 17-035: Increasing Penalties for Tampering with Oil and Gas Equipment or Facilities

On January 11, 2017, Sen. Jerry Sonnenberg introduced SB 17-035, “Concerning Tampering with Equipment Associated with Oil and Gas Gathering Operations.”

There is a current crime of tampering with equipment associated with oil or gas gathering operations. The bill includes placing another at risk of death or serious bodily injury as part of the crime and increases the penalty from a class 2 misdemeanor to a class 6 felony.

The bill was introduced in the Senate and assigned to the Agriculture, Natural Resources, & Energy Committee. It was amended in committee and referred to the Senate Committee of the Whole for Second Reading. The bill was amended on Second Reading and laid over.

HB 17-1167: Requiring Existing Businesses to be Included in Business Improvement Districts

On February 6, 2017, Rep. Timothy Leonard and Sen. Tim Neville introduced HB 17-1167, “Concerning a Requirement that a Business Improvement District Include Existing Businesses.”

A business improvement district (district) is a type of special district created within a municipality to fund certain types of improvements that will, among other things, promote the continued vitality of existing business areas within the municipality. The law currently allows a municipality to include areas in a district that do not have any existing businesses. The bill requires these areas to have existing businesses.

The bill was introduced in the House and assigned to the Business Affairs and Labor and Appropriations committees. It was postponed indefinitely by the House Business Affairs and Labor Committee.