December 18, 2018

Bills Signed Changing Revenge Pornography Crimes, Amending Laws Related to Bicycles Approaching Intersections, and More

On Thurdsay, May 3, 2018, Governor Hickenlooper signed seven bills into law. To date, he has signed 211 bills and sent two to the Secretary of State without a signature. The bills signed Thursday include a bill changing the laws concerning revenge pornography crimes, a bill requiring state agencies to conduct analyses to determine which businesses are not complying with their rules, a bill permitting municipalities to adopt rules concerning bicycles approaching intersections, and more. The bills signed Thursday are summarized here.

  • SB 18-132 – “Concerning a Waiver of Federal Law to Permit Insurance Carriers to Offer Catastrophic Health Plans to Any Individual Residing in Colorado, and, in Connection Therewith, Making an Appropriation,” by Sen. Jim Smallwood and Rep. Chris Kennedy. The bill requires the commissioner of insurance to conduct an actuarial analysis to determine if the sale of catastrophic health plans to Colorado residents 30 years of age and older and not meeting a hardship requirement would result in a reduction in advanced premium tax credits received by Colorado residents or increase the average premiums of individual health plans.
  • SB 18-144 – “Concerning the Regulation of Bicycles Approaching Intersections,” by Sen. Andy Kerr and Reps. Yeulin Willett & Chris Hansen. The bill permits a municipality or county to adopt a local ordinance or resolution regulating the operation of bicycles approaching intersections with stop signs or illuminated red traffic control signals. Under a local regulation, a bicyclist approaching a stop sign must slow to a reasonable speed and, when safe to do so, may proceed through the intersection without stopping. A bicyclist approaching an illuminated red traffic control signal must stop at the intersection and, when safe to do so, may proceed through the intersection.
  • SB 18-177 – “Concerning Procedures when Certain Private Schools Cease Operations,” by Sens. Kevin Priola & Nancy Todd and Reps. Jeff Bridges & Lang Sias. Under existing law, private occupational schools and certain private degree-granting schools are required to provide a bond or other form of surety that is used to facilitate transfer or to provide tuition and fee reimbursement for students in the event that the school closes. When a private occupational school closes, that school’s records must be maintained by the private occupational school board in the Division of Private Occupational Schools. The bill allows the Department of Education to make a claim on a surety bond for reimbursement of actual administrative costs associated with a school closure.
  • HB 18-1193 – “Concerning the Advanced Placement Incentives Pilot Program, and, in Connection Therewith, Making an Appropriation,” by Reps. James Wilson & Barbara McLachlin and Sens. Ray Scott & Rachel Zenzinger. The bill extends the pilot program three years. It requires the Department of Education to report the number of students in the pilot program who enrolled in advanced placement courses during the prior school year and to collect disaggregated data from the advanced placement exam vendor to capture the performance of students who are participating in the pilot program on the end-of-course advanced placement exams.
  • HB 18-1250 – “Concerning an Analysis to Improve Compliance with Departmental Rules by Regulated Businesses,” by Reps. Tracy Kraft-Tharp & Lang Sias and Sen. Kevin Priola. The bill equires each state agency to conduct an analysis of noncompliance with its rules to identify rules with the greatest frequency of noncompliance, rules that generate the greatest amount of fines, how many first-time offenders were given the opportunity to cure a minor violation, and what factors contribute to noncompliance by regulated businesses. The analysis will guide each department on how to improve its education and outreach to regulated businesses on compliance with the department’s rules.
  • HB 18-1257 – “Concerning a Correction to House Bill 16-1316 by Reinserting the Word ‘Not,'” by Rep. Paul Rosenthal and Sen. John Cooke. House Bill 16-1316 amended the venue statute for transferring child welfare proceedings between counties and inadvertently struck the word ‘not’ in one sentence. Due to this error, courts are not allowed to transfer child welfare proceedings between counties after adjudication even though the intent of House Bill 16-1316 was to allow post-adjudication transfers. The bill reinserts the word ‘not’ to allow such transfers.
  • HB 18-1264 – “Concerning Measures to Clarify the Scope of Revenge Porn Criminal Offenses,” by Reps. Dominique Jackson & Terri Carver and Sens. John Cooke & Rhonda Fields. Currently, Colorado criminalizes posting nude images of another person for harassment purposes or for pecuniary gain. The bill adds images of sex acts that may not include nude images, removes the requirement that the defendant intend to inflict serious emotional distress removes as an exception to the crimes that the image relates to a newsworthy event, and clarifies that the images subject to the crimes may be disclosed by law enforcement personnel, human or social services personnel, prosecutors, and court personnel in the course of their normal business.

For a complete list of the governor’s 2018 legislative actions, click here.

Colorado Supreme Court: Owner-Director of Nonprofit School is Not “Public Employee”

The Colorado Supreme Court issued its opinion in People v. Rediger on Monday, April 30, 2018.

Public Employee—Invited Error—Waiver—Constructive Amendment—Plain Error Review.

This case required the supreme court to decide two questions: (1) whether the owner–director of a nonprofit school regulated by various governmental entities is a “public employee” within the meaning of C.R.S. § 18-9-110(1), and (2) whether respondent waived or invited error with respect to a constructive amendment claim when his defense counsel stated that he was “satisfied” with the proposed jury instructions, notwithstanding the fact that the elemental instruction on the charge of interference with the staff, faculty, or students of an educational institution tracked C.R.S. § 18-9-109(1)(b) rather than C.R.S. § 18-9-109(2), which was the subsection charged in the information.

As to the first question, the court concluded that “public employee” means an employee of a governmental entity, and therefore an employee of a nonprofit school is not a public employee. Accordingly, the court agreed with the court of appeals division’s decision that respondent’s conviction for interference with a public employee in a public building cannot stand.

As to the second question, the court concluded that respondent neither waived nor invited error with respect to his constructive amendment claim because the record does not indicate that he or his counsel either intentionally relinquished a known right or deliberately injected the erroneous jury instruction as a matter of trial strategy. The court instead construed respondent’s general acquiescence to the instructions as a forfeiture and, reviewing for plain error, concluded that the constructive amendment of respondent’s charging document constituted plain error necessitating a new trial.

The court affirmed in part and reversed in part the court of appeals division’s judgment.

Summary provided courtesy of Colorado Lawyer.

Colorado Court of Appeals: Preliminary Injunction Appropriate Where HOA Board Amending Bylaws Without Proper Notice

The Colorado Court of Appeals issued its opinion in Anderson v. Applewood Water Association, Inc. on Thursday, November 3, 2016.

Homeowners Association—Open Meetings—Notice—Colorado Common Interest Ownership Act—Colorado Revised Nonprofit Corporations Act.

Plaintiffs filed for a preliminary injunction to enjoin defendant Applewood Water Association, Inc. (Association) from (1) conducting special meetings of the board of directors (board) in violation of its bylaws and (2) submitting an amended declaration of covenants for a full membership vote, based on their belief that the amended declaration illegally conveyed certain property rights. The owners presented evidence to support their contention that the board conducted special meetings without giving required notice set forth in the Colorado Common Interest Ownership Act (CCIOA) and the Colorado Revised Nonprofit Corporations Act (CRNCA). They also presented evidence that those meetings concerned amendments to existing covenants. The trial court denied both requests.

On appeal, the owners contended that the trial court erred as a matter of law when it found that it had no legal authority to enjoin future violations of civil statutes. The CCIOA and CRNCA create a legally protected interest in open meetings. The plain language of both statutes gives a court the authority to enjoin the violation of their provisions where a movant can show noncompliance and harm. Therefore, the trial court has the authority to enjoin the Association from holding special board meetings without providing the notice required under CCIOA and CRNCA. The trial court’s order as to that preliminary injunction request was reversed and the case was remanded for further factual findings.

The Court of Appeals concluded that the second injunction request is moot because a vote on the amended declaration has already occurred. That portion of the appeal was thus dismissed.

Summary provided courtesy of The Colorado Lawyer.

Colorado Court of Appeals: Property Need Not be Used Exclusively for Religious Purposes for Tax Exemption

The Colorado Court of Appeals issued its opinion in Grand County Board of Commissioners v. Colorado Property Tax Administrator on Thursday, January 14, 2016.

This appeal after remand concerned a religious exemption from property taxes. The YMCA owns properties in Grand County and Larimer County for which it applied for property tax exemptions based on religious purposes and charitable use. The state property tax administrator determined the properties were being used for religious purposes and granted an exemption. The Grand and Larimer County Boards of County Commissioners appealed, contending the YMCA’s use was not sufficiently religious to justify an exemption. The Board of Assessment Appeals held a hearing and found the properties were not used exclusively for religious purposes, reversing the property tax administrator’s determination. The YMCA appealed to the court of appeals and a division reversed the Board’s findings, concluding the Board failed to apply the proper legal standard and setting forth the statutory and constitutional framework for religious exemptions.

On remand, the Board found the YMCA properties qualified for the exemption because the properties furthered the YMCA’s stated religious mission and purposes and the properties were not being used for private gain or corporate profit. The counties appealed, arguing that because the use of the properties was not inherently religious, they should not qualify for the exemption. The court of appeals disagreed, finding the Board applied the correct legal framework on remand.

The court of appeals affirmed the Board’s decision to grant the YMCA properties tax exemptions.

Top Ten Business Law Programs and Homestudies

The days keep marching forward, and the end of the compliance period looms large for many Colorado attorneys. If you still need some last-minute CLE credits, never fear—we are reviewing the Top Ten Programs and Homestudies in several areas of law. In case you missed it, we previously covered ethics, family law, trust & estate law, real estate law, and litigation. Today’s focus is on business law. Whether advising nonprofits, dealing with securities issues, or representing particular types of businesses, we have programs to fit your needs. Read on for the Top Ten Programs and Homestudies.

10. Banking for Marijuana Businesses. This short program discusses banking issues unique to marijuana businesses, including the Justice Department’s efforts to create guidance for banks that work with marijuana businesses. Learn about potential racketeering issues and potential solutions. One general credit; available as MP3 audio download and Video OnDemand.

9. Forming and Funding Early Stage Companies. Created for lawyers working with early stage companies, this program covers entity selection, vesting, key agreements, counseling clients on raising money, common securities law exemptions, and more. Two general credits; available as MP3 audio download and Video OnDemand.

8. Commercial Loan Documents — Important Covenants and Potential Modifications. Loan covenants are an important part of every loan document. This program discusses loan modifications generally sought by lenders and those requested by borrowers. Default is also discussed in this program. One general credit; available as MP3 audio download and Video OnDemand.

7. Boilerplate and Drafting Business Documents — 2014 Business Document Drafting Series. The first in a series of six programs, this program offers practical advice on the perils of using boilerplate in document drafting, including specific examples of drafting issues, the importance of keeping provisions current with the law, the value of silence, and much more. Two general credits; available as CD homestudy, MP3 audio download, and Video OnDemand. NOTE: This program is Part 1 of a six-part series. Click here for Part 2, click here for Part 3, click here for Part 4, click here for Part 5, and click here for Part 6.

6. Limited Liability Companies in Colorado. Because of the combination of limited liability for all owners of the LLC, pass-through tax treatment, and ease and flexibility in customizing the relationships between the owners, the LLC has been a very popular choice of entity for many types of businesses since the IRS adopted the “check the box” regulations in 1996. This program details advantages and disadvantages of LLCs, litigation issues, estate and tax planning, real estate development, and more. Attendees receive a PDF copy of the CLE book, Limited Liability Companies and Partnerships in ColoradoEight general credits, including one ethics credit; available as CD homestudy, MP3 audio download, and Video OnDemand.

5. Buying and Selling a Business. Need to know the ins and outs of buying and selling businesses? This program is for you! It provides practical advice on advising parties in M&A transactions, planning the exit, protecting your client in the sale, professional responsibility and ethics in business transactions, and more. Seven general credits, including one ethics credit; available as CD homestudy, MP3 audio download, and Video OnDemand.

4. Closely Held Businesses: Strategies for Tackling Key Issues. Advising closely held businesses requires attorneys to have a wide range of knowledge. This program addresses some of the issues that may arise in advising the closely held business, including family dynamics, the Affordable Care Act and its impact on small businesses, probate of business interests, charitable planning, small business financials and accounting, and securities issues. Seven general credits, including one ethics credit; available as CD homestudy, MP3 audio download, and Video OnDemand.

3. A Primer on Advising Nonprofit Organizations and 24th Annual Institute on Advising Nonprofit Organizations in Colorado. This annual program provides everything you need to know about advising nonprofits. Topics covered at the primer include formation and governance of nonprofit entities, obtaining and retaining tax-exempt status, operational issues for tax-exempt organizations, and taxation of unrelated business income. The Institute discusses fiduciary duties of for-profit boards, tax-exempt entity types, best practices for employee discipline and termination, volunteers, and more. Primer—four general credits; available as CD homestudy, MP3 audio download, and Video OnDemand. Institute—seven general credits; available as CD homestudy, MP3 audio download, and Video OnDemand. NOTE: These programs are repeated annually. Click here for the 2014 programs (Primer/Institute) and click here for the 2013 programs (Primer/Institute).

2. Annual Rocky Mountain Securities Conference. Co-sponsored by the U.S. Securities and Exchange Commission and the CBA Business Law Section, this program is the Rocky Mountain’s premier securities law update presented by the country’s top practitioners. Topics covered in the 2015 Conference included an enforcement update, a view from the defense, a conversation with the Division of Corporate Finance, ethical considerations with the SEC’s whistleblower program, hot topics regarding regulated entities, and much more. Nine general credits; available as CD homestudy, MP3 audio download, and Video OnDemand. NOTE: This program is repeated annually. Click here for the 2014 program and click here for the 2013 program.

1. Annual Business Law Institute. This two-day Institute provides everything you need to know for your business law practice. Get updates on case law and legislation, social responsibility, real world ethical dilemmas, business lawyers’ worst nightmares, forming and funding early stage companies, employment law update, marijuana investments in commercial banking, commercial insurance, and much more. Twenty-seven general credits, including two ethics credits; available as CD homestudy and MP3 audio download. NOTE: This program is repeated annually. Click here for the 2014 program and click here for the 2013 program.

Secretary of State Releases First Part of Series of Webinars for Nonprofit Directors

On Wednesday, November 13, 2013, the Colorado Secretary of State’s office announced its release of a free eLearning program for directors of nonprofit corporations, entitled “Board Education and Effectiveness.” The first part of this five-part series is called “Fiduciary Duties of Nonprofit Directors,” and is available online through the Secretary of State’s website.

The board effectiveness training program was developed through a series of meetings between the Secretary of State’s office and nonprofit community leaders. The program is designed in hopes of strengthening nonprofits in Colorado through education. The Secretary of State noted that not all nonprofit directors are clear in understanding their roles and responsibilities, so education is a key component to help instill best practices in these directors.

The remaining four segments will be released in the coming months, and the entire course should be available to the public by mid-2014.

Although the Secretary of State programs are designed for the public, Colorado Bar Association CLE offers a comprehensive resource for attorneys who advise nonprofits—A Guide for Colorado Nonprofit Corporations. This book, written by over 20 of Colorado’s top corporate attorneys, covers the legal aspects of forming nonprofit entities in Colorado, the fundamentals of choosing the form of the entity, the requirements of maintaining the entity’s tax-exempt status, and the complex and ever-changing tax laws — federal, state, and local — that impact nonprofit organizations.

CLE Book: A Guide for Colorado Nonprofit Corporations

The 2013 Supplement to A Guide for Colorado Nonprofit Corporations is now available. Click here to purchase the supplement online, or call (303) 860-0608.

HB 13-1246: Allowing Property Tax Exemptions for Property Used for Charitable Purposes

On March 4, 2013, Rep. Lois Court and Sen. Pat Steadman introduced HB 13-1246 – Concerning Modifications in Connection with Current Property Tax Exemptions for Nonprofit Organizations. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

Tax exempt property acquired by nonprofit housing provider for low-income housing: Current law allows a property tax exemption for real property acquired by a nonprofit housing provider upon which the provider intends to construct or rehabilitate housing to be sold to a low-income applicant. The bill modifies the property tax exemption by also allowing it to apply to real property acquired by a nonprofit housing provider that the provider intends to sell to a low-income applicant for the purpose of constructing or rehabilitating housing for the low-income applicant’s residential use.

In addition, the bill changes the criteria to qualify as a low-income applicant from an individual or family whose total median income is no greater than 60 percent of the area median income to an individual or family whose total median income is no greater than 80 percent of the area median income.

Waiver of filing deadline for annual report from owners of tax-exempt property: An owner of property that is exempt from property tax as determined by the property tax administrator is required to file an annual report to the state board of equalization (state board) regarding the tax-exempt property. Currently, the state board may waive the filing deadline for the annual report under certain circumstances. The bill allows the state board to determine a deadline for the property owner to file the report when granting the waiver and specifies that the waiver is invalid after the date established by the state board.

Effective date of property tax exemptions when a public official has made an error: The property tax administrator is currently authorized to grant a property tax exemption for certain types of property. The property tax administrator may grant the exemption back to Jan. 1 of the year preceding the year in which the application was filed, but no earlier. The bill allows the state board to authorize the property tax administrator to make an exemption effective earlier than is currently allowed when the property has been added back to the tax roll as omitted property and would otherwise have met all criteria for exemption during the time that it was omitted.

On March 27, the House gave final approval to the bill on 3rd Reading; the bill has not been assigned to a committee in the Senate.

Since this summary, the bill has been assigned to the Finance Committee in the Senate.

Crowdfunding: A New Means For Start-up Capital (Part 2 of 2)

This is Part 2 of a two-part series. Click here for Part 1.

On April 5, 2012, President Barack Obama signed The JOBS Act (“Act”) into law and Title III of the Act empowers the SEC to set rules for companies to raise capital through crowdfunding. Crowdfunding will permit entrepreneurs to advertise and seek financing from the general public in relatively small amounts in exchange for an interest in their company. These provisions present great opportunity for new companies and investors alike because start-ups can seek capital from a broad pool of investors and investors can seek financial return through the internet from a company that resonates with them. Permitting a diverse group of unaccredited investors as a shareholder base in a company is a large change in securities regulation.

However, there are significant concerns as to whether the SEC will set rules providing adequate flexibility. Currently, Title III of the Act substantially burdens both issuers and funding portals. Regarding issuers, a sweeping scope of individuals in the company must sacrifice limited liability: directors, partners, principal executive officers, principal financial officers, controller, or any person who offers or sells the security in the offering.  Regarding funding portals, there will be financial costs in providing administrative aid to investors and registering with the SEC. Finally, the language in the Act provides for much disclosure and many regulations that do not significantly depart from current requirements for companies at the IPO stage. For both issuers and funding portals, the regulatory costs may be too great.

Additionally, companies will face uncertainties surrounding later rounds of financing and subsequent restructuring if they decide to crowdfund. It will be vitally important for a company to consider the impact that crowdfunding will have on its projected funding model and its ultimate exit strategy. First, companies should consider whether they plan to seek funding from angel investors, venture capitalists, or other traditional sources because such sources might balk at getting involved with a broad base of unaccredited investors. Second, companies should consider that many restructuring plans require a degree of shareholder approval and such shareholder approval could prove difficult and expensive with a crowdfunded shareholder base. Although speculative, these concerns should be contemplated with each client.

Crowdfunding is an exciting legal development that attorneys should monitor as they advise their business clients. The interest surrounding this funding model is justified because crowdfunding has the potential to change the capital raising landscape for start-up companies overlooked by traditional funding sources. Yet, it remains to be seen whether the SEC will implement rules that address current concerns regarding financial costs and issuer liability. Additionally, companies who seek angel or venture capital funding need to be aware of the pragmatic consequences from accepting funds from the general public. In sum, when the rules are promulgated by the SEC crowdfunding should be considered as a potential funding source for start-up companies, but careful scrutiny should be paid to clients’ future plans.

Joel Jacobson is a Contracts and Operations Associate with H.B. Stubbs Company, LCC – a national design and fabrication firm headquartered near Detroit, MI for exhibits displayed by technology and automotive companies. He focuses on contracts, employment law, and a variety of non-legal business issues. Joel serves on the Executive Council of the Denver Bar Association Young Lawyers Division and has an interest in topics impacting start-up companies in the Denver entrepreneurial community. He can be reached by email at jmjacobson1@gmail.com or on Twitter @J_m_Jacobson.

The opinions and views expressed by Featured Bloggers on CBA-CLE Legal Connection do not necessarily represent the opinions and views of the Colorado Bar Association, the Denver Bar Association, or CBA-CLE, and should not be construed as such.

Crowdfunding: A New Means For Start-up Capital (Part 1 of 2)

This is the first part of a two-part series. Stay tuned for Part 2.

Between the Colorado Business Law Institute and Denver Startup Week, October was ripe with exciting events for attorneys in Denver interested in the entrepreneurial community. After speaking with attorneys and entrepreneurs alike, it is clear that great interest exists surrounding the forthcoming federal regulations in The JOBS Act (“Act”) pertaining to “crowdfunding.”  Although there is hope that this funding model will be a great source of capital for wanting entrepreneurs, legitimate concerns exist that regulations will be too strict when implemented at the Federal level.  This two-part piece will briefly introduce the idea of crowdfunding, explore how it fits with traditional start-up financing options, and identify potential issues.

Crowdfunding will enable companies to raise capital by seeking funding from a large number of unaccredited investors in relatively small amounts without violating SEC registration and solicitation rules. Title III of the Act specifically permits companies to leverage the internet for this purpose through “funding portals.” At its core, crowdfunding is a simple idea. By way of example, it will enable entrepreneurs from various geographic locations to advertise the efficacy of their start-up entity through social media outlets to individuals in Denver, among other locations, and an interested Denverite could then invest limited funds with that start-up entity. As a result, a wider base of capital will exist for start-up companies to tap into, thereby complementing traditional funding avenues. This is important because less than two percent of start-up companies are ultimately funded by traditional angel investors or venture capitalists.

Crowdfunding rules and regulations are currently being debated and will be issued by the SEC in 2013 – nothing is final yet. As it stands, Title III of the Act will permit participating companies to sell up to $1 million in securities while remaining exempt from the requirements of Section 5 of the Securities Act. In addition to this cap, proposed restrictions on investors will limit crowdfunding investing to an amount tied to their annual income or net worth. Despite these restrictions, this is an exciting shift in the investment paradigm for entrepreneurs because the new rules will remove the strict restrictions on companies advertising and selling securities to unaccredited investors. Instead, companies will be able to solicit investments directly from unaccredited investors through an intermediary funding portal.

Crowdfunding is not a new idea. Rewards-based crowdfunding has been in existence for years without violating SEC rules and is popular for philanthropic and entrepreneurial causes. In this model, individuals invest money with a company or individual, but only as a donation or for some type of reward – there is no expectation of financial profit. Additionally, some companies are beginning to use existing state securities laws which exist in many states, including Colorado, to setup investment crowdfunding platforms that carefully work within the federal framework. This is a detailed topic beyond the scope of this entry.

This is Part 1 of a two-part series. Stay tuned for Part 2.

Joel Jacobson is a Contracts and Operations Associate with H.B. Stubbs Company, LCC – a national design and fabrication firm headquartered near Detroit, MI for exhibits displayed by technology and automotive companies. He focuses on contracts, employment law, and a variety of non-legal business issues. Joel serves on the Executive Council of the Denver Bar Association Young Lawyers Division and has an interest in topics impacting start-up companies in the Denver entrepreneurial community. He can be reached by email at jmjacobson1@gmail.com or on Twitter @J_m_Jacobson.

The opinions and views expressed by Featured Bloggers on CBA-CLE Legal Connection do not necessarily represent the opinions and views of the Colorado Bar Association, the Denver Bar Association, or CBA-CLE, and should not be construed as such.

CBA-CLE Business Law Institute with Plenary Speakers Tom Clark and Nat Stoddard

The CBA-CLE 2012 Business Law Institute is happening on October 18-19 at the Four Seasons Denver. The Business Law Institute will feature Tom Clark, CEO, Metro Denver Economic Development Corporation, who will present on “Denver’s Economic Climate and Business Outlook,” and Nat Stoddard, Chairman, Crenshaw Associates, New York, who will discuss “M&A Risk Reduction, Post-Deal Integration Success and Long-Term Value Recognition for You and Your Clients.”

Tom Clark is Chief Executive Officer of the Metro Denver Economic Development Corporation and the Executive Vice President of the Denver Metro Chamber of Commerce. He has more than 30 years of economic development experience at the state, regional, county and city levels. Tom’s career spans four decades from Director of Commercial and Industrial Development for the Illinois Department of Commerce and Community Affairs, through positions with the Fort Collins, Colorado Chamber of Commerce, the Greater Denver Corporation, the Boulder Chamber of Commerce, the Jefferson Economic Council, and the Denver Metro Chamber of Commerce. Tom was the founder and first president of the Metro Denver Network, the Metro Denver region’s first economic development program, for which he received the Arthur D. Little Award for Excellence in Economic Development. He was chosen as one of the nation’s top economic development professionals by the Council on Urban Economic Development.

Nat Stoddard is the author of The Right Leader: Selecting Executives Who Fit, which establishes the importance of cultural fit between companies and leaders. The Right Leader shows how companies can reduce the risks and costs of leadership failure by defining their culture and picking leaders with cultural fit in mind. Nat leads the Forward Assessment Consulting™ practice at Crenshaw Associates, serves as an Advisor to CEOs and Lead Directors/Board Chairs, and is an Executive Mentor to Transition Clients. Nat is the former Chairman, President, and CEO of several public and private companies ranging from $300M to $1B including World Kitchen, Camco (GE’s Canadian affiliate) and Garden Way, Inc. He holds an MBA from the University of Denver and a BS from Denison University.

The Business Law Institute will also feature an exceptional faculty of over twenty leading Colorado business law practitioners includes general counsel from top Colorado companies, experienced business attorneys from Colorado law firms, and professors from the University of Colorado Law School and the University of Denver Sturm College of Law. The institute also offers two tracks this year, a Basics Track for attorneys newer to business law, and an Advanced Track for the more experienced practitioner. For the complete agenda and faculty, go to: http://business.annualcle.com/.

SB 12-182: Creation of the “Invest in Colorado Act” and Establishment of Parameters for Benefit Corporations

On April 26, 2012, Sen. Bob Bacon and Rep. Tom Massey introduced SB 12-182 – Concerning Benefit Corporations. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

The bill enacts the “Invest in Colorado Act,” and authorizes the creation of benefit corporations. A benefit corporation must have, as one of its purposes specified in its articles of incorporation, the goal of creating general public benefit. The bill establishes the requirements for a corporation to be created as, or to elect to become, a benefit corporation, including:

  • The election and termination of benefit status;
  • The promotion of general public benefit as a purpose of the corporation;
  • Standards of accountability for the conduct of directors and officers of a benefit corporation;
  • Designation of a benefit director;
  • Rights of action in benefit proceedings; and
  • The preparation and availability of annual benefit reports.

The bill specifies dissenters’ rights for shareholders of a benefit corporation. The bill clarifies that an offer or sale of a security of a benefit corporation is not a solicitation for purposes of the “Colorado Charitable Solicitations Act” if the offer or sale complies with the “Colorado Securities Act.”

Assigned to the Judiciary Committee, the bill is scheduled for committee review on Monday, April 30 at 1:30 p.m.

Since this summary, the bill was referred unamended from the Judiciary Committee to Appropriations. It was amended in the Appropriations Committee and referred to the Senate Committee of the Whole for second reading.

Summaries of other featured bills can be found here.

Application Process Open for Family Violence Justice Fund Grants from Colorado Judicial Branch

The Colorado Judicial Branch announced today it has opened the application process for Fiscal Year 2013 grants from the Family Violence Justice Fund, which funds programs that provide civil legal services to indigent Coloradans.

Application forms will be available Monday, April 16, 2012 at http://www.courts.state.co.us/Administration/Unit.cfm/Unit/fvjf and will be accepted only via email.

The program was established by the General Assembly in 1999 to help indigent victims of family violence obtain legal services at no cost to them.

Grants will be awarded based on a formula that considers factors including past participation in the program. For Fiscal Year 2013, $625,000 is available for grants.

Applications must be received by the State Court Administrator’s Office by Friday, May 25, 2012, to be considered for a grant. To be eligible, organizations must be non-profit and currently serving the legal needs of indigent victims of family violence.

Successful organizations must be prepared to provide full legal services, including but not limited to assistance with divorce, child custody, child support, and other related civil matters. Additional information regarding the fund and qualifications for organizations receiving grants may be found in section 14-4-107 of the Colorado Revised Statutes.

Applications will be accepted via email only at jessica.zender@judicial.state.co.us. Questions may be directed to Jessica Zender at the email address above or by calling (303) 861-1111.