August 25, 2019

Governor Hickenlooper Signs Several Bills Into Law

Governor Hickenlooper continues to sign bills into law as they make it through the House and Senate. To date, he has signed 46 bills into law since January 31, 2013. Most recently, he signed 15 bills on March 8, 2013. Five of these bills are summarized here.

The governor also signed four bills on February 27, 2013, which are summarized here.

Prior to this, the governor signed 23 Joint Budget Committee bills and two other bills on February 19, 2013.

For a complete list of the governor’s legislative decisions to date, click here.

HB 13-1034: Redefining “Credit Sale Contracts” As Pertinent to Farm Products and Commodities

On Wednesday, January 9, Rep. Jerry Sonnenberg and Sen. Angela Giron introduced HB 13-1034 – Concerning the Wholesale Marketing of Farm Products, and, in Connection Therewith, Authorizing Electronic Warehouse Receipts, Modifying Procedures for Letters of Credit and Surety Bonds, and Modifying Requirements for Credit Sale Contracts.  This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

The bill amends the definition of “credit sale contract” by changing the date on which the sale price is to be paid from at least 60 days after delivery of farm products or commodities to at least 30 days after delivery. The bill requires dealers and commodity handlers to provide a credit sale contract within 30 days after a purchase, rather than 60 days after the receipt of farm products or commodities. These sections also repeal a requirement that credit sale contracts specifically state that they are an extension of credit and substitute a requirement that the contract include one or more statements specified by the commissioner of agriculture by rule, including one that warns a producer that entering into a credit sale contract entails a risk that the bond may not completely protect the producer from loss in the event of a failure of the dealer or commodity handler.

The bill will:

  • Repeal the law specifying that credit sale contracts do not require a bond; and
  • Authorize producers or dealers protected by a letter of credit or surety bond to ask the department of agriculture to recover damages covered by the letter or bond. An action to recover damages must be filed within 180 days, rather than 24 months, after the date of the transaction or loss.

The bill repeals a requirement that state agencies determine whether a financial institution upon which an irrevocable letter of credit is drawn will be able to make payment on the letter before accepting an irrevocable letter of credit.

Current law requires commodity warehouses to issue paper receipts. The bill authorizes commodity warehouses to issue electronic receipts. On Feb. 1, the House approved the bill on 2nd Reading.

Since this summary, the bill passed a Third Reading in the House.