August 21, 2019

Several More Groups of Bills Signed Into Law by Governor Hickenlooper

As the legislature winds down, Governor Hickenlooper continues to sign bills into law. So far this legislative session, Governor Hickenlooper has signed 191 bills into law.

On Thursday, April 26, the governor signed ten bills into law. Four of those are summarized here.

  • HB 12-1236Concerning the Regulation of Charitable Solicitations, and, in Connection Therewith, Making an Appropriation
    Sponsored by Rep. Ken Summers and Sen. Cheri Jahn. The bill makes several changes to the regulation of charitable solicitations.
  • HB 12-1126 Concerning On-Site Wastewater Treatment Systems
    Sponsored by Rep. Cheri Gerou. The bill updates statutes related to the regulation of on-site wastewater treatment systems.
  • HB 12-1313 Concerning Procedures Related to the Statewide Initiative Title Board
    Sponsored by Rep. Libby Szabo and Sen. Bob Bacon. The bill makes several changes to the procedures of the statewide initiative Title Board.
  • HB 12-1209 Concerning the “Uniform Electronic Legal Material Act”
    Sponsored by Rep. Bob Gardner and Sen. Morgan Carroll. The bill establishes procedures for the publication and authentication of certain legal material, including the Colorado Revised Statutes, session laws, constitution, and Code of Colorado Regulations.

Governor Hickenlooper signed 19 bills into law on Thursday, May 3, 2012, including several from the Joint Budget Committee. Four of the bills signed on May 3 are summarized here.

  • HB 12-1258Concerning Regulation of Public Utilities in Terms of Alternative Fuel Vehicles
    Sponsored by Rep. Brian DelGrosso and Sen. Cheri Jahn. The bill requires public utilities to make reasonable efforts to provide service connection for fueling of alternative fuel vehicles.
  • SB 12-158Concerning the Consolidation of Two Public Housing Agencies Within the Division of Housing in the Department of Local Affairs
    Sponsored by Sen. Betty Boyd and Rep. Laura Bradford. The bill clarifies that the Division of Housing is the sole public housing authority for providing financial housing assistance, and shifts the Homeless Prevention Activities Program to the Division of Housing.
  • HB 12-1340Concerning a Reduction in the General Fund Portion of the Per Diem Rates Paid to Nursing Facilities, and, In Connection Therewith, Reducing an Appropriation
    Sponsored by Rep. Jon Becker and Sen. Kent Lambert. The bill reduces the per diem rates paid to skilled nursing facilities by 1.5 for Fiscal Year 2012-13 only.
  • SB 12-110Concerning a Fund Consisting of Surcharges on Insurance Premiums to Pay for Costs Associated with Criminal Prosecution of Insurance Fraud Investigations, and, in Connection Therewith, Making an Appropriation
    Sponsored by Sen. Pat Steadman and Rep. Claire Levy. The bill changes the amount of fees paid to the state by insurance companies to a two-tier schedule set by the Commissioner of Insurance.

On Monday, May 7, Governor Hickenlooper signed the budget bill for the next fiscal year. The bill was approved by an overwhelming majority of legislators – it received 86 yes votes and only 8 no votes. Governor Hickenlooper lauded the legislature for approving the bill with such an impressive majority. The “long bill,” HB 12-1335, contains separate links to the budgets for all state agencies, including add-ons for some agencies.

Governor Hickenlooper signed seven more bills into law on Wednesday, May 9, 2012. Three of them are summarized here.

  • SB 12-012Concerning the Department of Revenue’s Audits of Automobile Emissions Inspection Facilities
    Sponsored by Sen. Steve King and Rep. Joe Miklosi. The bill decreases the frequency of overt audits of vehicle emission inspection facilities and increases the frequency of covert audits.
  • SB 12-060Concerning Improving Medicaid Fraud Prosecution
    Sponsored by Sen. Ellen Roberts. The bill requries reporting by certain state agencies for the legislature’s use the following year in order to evaluate Medicaid fraud.
  • HB 12-1262Concerning Enactment of Amendments to the Secured Transactions Provisions of the “Uniform Commercial Code”
    Sponsored by Rep. Bob Gardner and Sen. Ellen Roberts. The bill adopts changes to the Uniform Commercial Code as recommended by the Colorado Commission on Uniform Laws.

A complete list of legislation signed by Governor Hickenlooper in 2012 is available here.

HB 12-1262: Enacting Amendments to Article 9 of the Uniform Commercial Code, Regarding Secured Transactions, that Were Adopted in 2010 by NCCUSL

On February 7, 2012, Rep. Bob Gardner and Sen. Ellen Roberts introduced HB 12-1262 – Concerning Enactment of Amendments to the Secured Transactions Provisions of the “Uniform Commercial Code.” This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

The CBA LPC has voted to support this bill.

Colorado Commission on Uniform State Laws

The bill enacts amendments to article 9, regarding secured transactions, of the “Uniform Commercial Code,” that were adopted in 2010 by the national conference of commissioners on uniform state laws. Article 9 provides the rules governing any transaction that couples a debt with a creditor’s interest in a debtor’s personal property. If the debtor defaults, the creditor may repossess and sell the property to satisfy the debt.

The creditor’s interest is called a “security interest.” The 2010 amendments to article 9 modify the existing statutes to respond to filing issues and other matters.

The bill provides greater guidance as to the name of a debtor to be provided on a financing statement. For business entities and other registered organizations, the amendments clarify that the proper name for perfection purposes is the name filed with the state and provided on the organization’s charter or other constitutive documents, to the extent there is a conflict with the name on an entity database. In particular, the bill adopts a “safe harbor” rule by leaving intact the requirement that the financing statement use the debtor’s “individual name”, but specifying that the name on the driver’s license will also be sufficient as well as the debtor’s surname and first personal name.

A number of related changes were also made. For example, the 2010 amendments clarify that a change in the name used on a debtor’s driver’s license or the expiration of the driver’s license may qualify as a name change. With respect to trusts, if collateral is held by a statutory trust or in a Massachusetts-type business trust, the trust is a registered organization and the trust’s name is the debtor name. For common law trusts that are not Massachusetts-type business trusts, the financing statement must provide the name of the trust as identified in the trust’s organic records if it has name indicated there, or otherwise the name of the settlor or testator and sufficient additional information to distinguish a particular trust from others held by that same settlor or testator.

The amendments also deal with perfection issues arising on after-acquired property when a debtor moves to a new jurisdiction. Article 9 currently provides that perfection by filing continues for 4 months after the jurisdiction in which the debtor is located changes. However, this temporary period of perfection applies only with respect to collateral owned by the debtor at the time of the change. Even if the security interest attaches to after-acquired collateral, there is currently no perfection with respect to such new collateral unless and until the secured party perfects pursuant to the law of the new jurisdiction. The amendments change this by giving the filer perfection for 4 months in collateral acquired post-move. A similar change is made with respect to a new debtor that is a successor by merger. The new rule provides for temporary perfection in collateral owned by the successor before the merger or collateral acquired by the successor within 4 months after the merger.

Existing law authorizes the debtor to file a correction statement: A claim that a financing statement filed against it was in fact unauthorized. While this filing has no legal effect on the underlying claim, it does put in the public record the debtor’s claim that the financing statement was wrongfully filed. The amendments change this in 2 ways. First, the filing is no longer called a “correction statement,” but is instead referred to as an “information statement”. Second, the amendments authorize the secured party of record to also file an information statement if the secured party believes that an amendment to its financing statement was not authorized. The change addresses concerns of secured parties that an amendment to a different financing statement may be inadvertently filed on the secured party’s financing statement because the amendment contains an error when referring to the file number of the financing statement to be amended.

A number of additional technical amendments are also included in the bill. For example, some extraneous information currently provided on financing statements will no longer be required. A safe harbor for the transfer of chattel paper in conformance with the “Uniform Electronic Transactions Act” is included, and the bill clarifies that the broader override of contractual restrictions found in existing law applies with respect to enforcement of a security interest through the sale or strict foreclosure of payment intangibles and promissory notes. Certificates of title for goods are clarified where the certificates of title are, in whole or in part, in electronic form, and greater guidance is given with respect to the notice requirements applicable to electronic dispositions of collateral (specifically, time and “electronic location” of online auctions) when a security interest is enforced by sale or other disposition of the collateral.

The bill has a uniform effective date of July 1, 2013, so as to allow states to adopt the amendments uniformly and have them become operative simultaneously, thereby avoiding unnecessary conflicts and confusion with respect to interstate transactions. The House adopted the bill on March 5; the Senate Judiciary Committee will hear the bill on Tuesday, March 20 Upon Adjournment.

Since this summary, the bill was referred unamended from the Senate Judiciary Committee to the Senate Committee of the Whole.

Summaries of other featured bills can be found here.

e-Legislative Report: Week Seven, February 27, 2012

The latest Legislative Video Update with Michael Valdez summarizes the Colorado Bar Association’s position on several bills, including Civil Unions, a bill concerning the Dissolution of Marraige, and Electronic Death Certificates.

 

CBA Legislative Policy Committee

The LPC did not meet on Friday, February 24. However, positions taken by the committee met on February 17 were omitted from last week’s newsletter due to this writer being out on sick-leave so this is an opportune time to catch you up on LPC positions taken. One position was taken on Wednesday, February 15.

SB 12-002 – Civil Unions
The LPC voted by conference call on Wednesday, February 15 to support SB 2 – Concerning Civil Unions. The Wednesday meeting was called because the bill suddenly appeared on the Judiciary Committee calendar late on Monday afternoon. The Civil Rights Committee had asked the LPC to take a formal “no position” on the bill; several sections countered with requests to the LPC to support the bill – with some needed technical corrections amendments. The sections supporting the bill were: Family, Juvenile, Elder, and Business (the Trust and Estate Section has since voted to support the bill). The LPC voted to support the bill but asked the sections to suggest and develop amendments to improve the bill. In a by-the-way note, this position is consistent with the position taken by the CBA Board of Governors in 2006 when the Board voted to support Referendum I – Domestic Partnerships. The bill passed the Judiciary and Finance Committees on February 15 and 16 respectively; the bill sits in the Appropriations Committee waiting to be calendared.

HB 12-1262 – Concerning Updates to UCC Article 9 “Secured Transactions”
At the request of the Business Law Section, the LPC voted to support HB 1262 – Updates to UCC Article 9. The bill contains needed updates to the 2001 statute that was adopted in Colorado. The ad hoc committee of the Business Law Section spent the last 24-months working through the amendments suggested by the National Conference of Commissioners on Uniform State Legislation (NCCUSL). The CBA testified in support of the bill on Thursday, February 23 and the bill passed out of the Judiciary Committee, unamended, on a 10-0 vote, with one excused. The next stop for the bill is the floor of the House on 2nd Reading.

HB 12-1256 – Formula for Maintenance in a Dissolution of Marriage Action
The Family Law Section was granted permission to oppose the legislation at the Capitol but the LPC also allowed the section to approach the sponsor to request the bill be pulled from consideration in this session and that a Task Force work over the summer to try to find a bill that all can agree upon. The sponsor, Rep. Beth McCann, agreed to table for 2012 and to the establishment of a Task Force on the issue that will be spearheaded by the CBA Family Law Section.

HB 12-1041 – Electronic Death Certificates
The Trust and Estate Section asked for permission to support HB 1041 – Concerning Electronic Death Certificates. The bill creates an electronic death registration system to allow persons who report death information to the Office of the State Registrar of Vital Statistics to do so electronically. The bill contemplates an alternative to the current paper based system that relies on the hand delivery of death certificates to required locations. We do not see a direct positive to practitioners but it should help their clients who sometimes have to wait for the paper filings to make their way through the hand delivery process. The bill is headed to the House floor after surviving the Appropriations Committee on Friday, February 24.