August 24, 2019

Archives for March 11, 2013

SB 13-156: Continuing the Board of Mortgage Loan Originators and Implementing the Recommendations of the 2012 Sunset Report

On Monday, February 4, 2013, Sen. Lois Tochtrop introduced SB 13-156 – Concerning Continuation of the Board of Mortgage Loan Originators in the Division of Real Estate, and, in Connection Therewith, Implementing the Recommendations of the 2012 Sunset Report by the Department of Regulatory Agencies. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

As introduced, the bill implements the recommendations of the sunset review and report on the board of mortgage loan originators (board) by:

  • Extending the repeal date of the board for five years, until Sept. 1, 2018;
  • Requiring the board to deny, refuse to renew, or revoke the licenses of persons who commit specified offenses, bringing Colorado’s statutes in line with federal law;
  • Allowing the board to deny, refuse to renew, or revoke the licenses of, or to discipline, persons who commit specified offenses and receive a deferred judgment;
  • Eliminating a self-contradictory provision from current law; and
  • Clarifying that a mortgage company may act only through individuals who are licensed or in the process of becoming licensed.

On Feb. 20, the Business, Labor, & Technology Committee amended the bill and sent it to the Appropriations Committee for consideration of the fiscal impact.

SB 13-158: Continuing Requirement of Preparation of Cost-Benefit Analyses for Proposes Rules

On Monday, February 4, 2013, Sen. David Balmer introduced SB 13-158 – Concerning the Continuation of the Preparation of Cost-Benefit Analysis of Proposed Rules of Executive Branch Agencies, and, in Connection Therewith, Implementing the Recommendations of the 2012 Sunset Report of the Department of Regulatory Agencies. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

The bill implements the recommendations of the sunset review and report on the requirements and procedures regarding the preparation of a cost-benefit analysis of proposed rules of state agencies, which recommended that the cost-benefit analysis of proposed rules be continued with modifications.

Under current law, an agency proposing rules pursuant to the “State Administrative Procedure Act” (APA) submits a draft of the proposed rules to the executive director of the department of regulatory agencies (DORA) who then determines whether proposed rules may have a negative impact on economic competitiveness or on small business and directs the agency to perform a cost-benefit analysis. The bill shifts the responsibility for deciding whether an agency needs to conduct a cost-benefit analysis of proposed rules from the executive director of DORA to the agency that is proposing rules. If an agency determines that the proposed rules have a significant negative impact on small business, job creation, or economic competitiveness, then the agency must prepare a cost-benefit analysis.

Under current law, the executive director of DORA decides whether a cost-benefit analysis is necessary no later than 20 days prior to the rule-making hearing, and the agency must complete the analysis and submit it to DORA no later than 5 days prior to the hearing, thereby limiting stakeholder input. The bill requires that the agency prepare the cost-benefit analysis prior to issuing the notice of rule-making. The bill requires the agency to submit the cost-benefit analysis and the draft of the proposed rules at the same time that the agency files the notice of rule-making with the secretary of state, thereby providing stakeholders and the public with the cost-benefit analysis and the proposed rules at an earlier time in the rule-making process.

The agency determines the proper methods for the cost-benefit analysis and may consult with representative groups regarding the cost-benefit analysis.

Under current law, a separate section of the APA provides the opportunity for any person, at least 15 days prior to the hearing, to request that the agency prepare a regulatory analysis of a proposed rule, which must be made available to the public at least 5 days prior to the rule-making hearing. The bill requires that the agency prepare a regulatory analysis for proposed rules that do not have a significant impact on small business, job creation, or economic competitiveness and for which the agency is not preparing a cost-benefit analysis. The bill requires that the agency prepare the regulatory analysis prior to issuing the notice of rule-making and to submit the regulatory analysis and the draft of the proposed rules at the same time that the agency files the notice of rule-making with the secretary of state.

The agency is not required to prepare a cost-benefit analysis or a regulatory analysis for proposed rules that implement specific requirements of legislation enacted by the general assembly or that implement requirements of federal law or federal rules.

The bill repeals the requirement that the preparation of the cost-benefit analysis be reviewed in the future through the sunset process. The bill is assigned to the Business, Labor, & Technology Committee.