2009 Legislation Final

To:         Land Title Association of Colorado       
From:       Cathy Wanstrath, LTAC lobbyist
Subject:    Legislation of Interest to LTAC – KILLED BILLS HAVE BEEN DELETED
Date:       June 4, 2009  --  final report for 2009 session, includes Governor's action on bills

H.B. 1005 (Rep. Marostica, Sen. Veiga):  Concerning the Authority of a Special District to Establish Special Improvement Districts within the Boundaries of the Special District.” With specified requirements, grants a special district the authority to establish special improvement districts within the boundaries of the special district and levy special assessments on property specially benefited by such improvements.  SIGNED BY THE GOVERNOR 4/2.  (Edgar, Evans)

H.B. 1014 (Rep. Judd, Sen. Isgar):  “Concerning the Provision of Additional Resources to the Division of Real Estate to Provide Oversight of Conservation Easements for Which a State Income Tax Credit is Claimed.”  Eliminates the cap on the amount of the fee paid to the Division of Real Estate by an appraiser in connection with submitting an appraisal for review (it was $600), and an entity that holds a conservation easement in connection with an application to be certified (it was $5,810).  Requires conservation easement holders to pay an annual fee to cover the costs of the Division in reviewing appraisals of conservation easements.  Repeals the provision specifying that the certification of a conservation easement holder is effective for a 3-year period.  SIGNED BY THE GOVERNOR 2/26.  (Bernard, J. Wolff)

H.B. 1085 (Rep. Rice, Sen. Heath):  “Concerning the Regulation of Mortgage Loan Originators, and, in connection therewith, Modifying the Mortgage Broker Licensing Act to Conform to the Federal ‘Secure and Fair Enforcement for Mortgage Licensing Act of 2008’ and Exempting Certain Financial Institutions from the List of Prohibited Practices Under the Act.”  Throughout this act, changes the term “mortgage broker” to “mortgage loan originator”.  Requires state-licensed mortgage loan originators to register with the nationwide mortgage licensing system and registry established pursuant to the SAFE act by July 31, 2010, and to obtain a unique identifier through the registry for use on residential mortgage loan application forms, solicitations or advertisements, business cards or web sites.  Banks and other entities subject to federal banking regulation are exempt. PASSED THE HOUSE, amended per LTAC recommendation. SIGNED BY THE GOVERNOR 5/21. (Rice, Compton, Schreiber)

H.B. 1109 (Rep. Priola, Sen. Veiga):  “Concerning the Extension of Foreclosure Protection to Purchasers of Residential Properties as to which Formal Foreclosure Proceedings have not yet been Commenced.”  Amends the definition of a ‘residence in foreclosure’ under the ‘Colorado Foreclosure Protection Act’ to include a residence that is subject to a mortgage loan that is delinquent or in default but against which a foreclosure action, while authorized, may not yet have been commenced.  SIGNED BY THE GOVERNOR 3/20.  (Condie, Sapp)

H.B. 1155 (Rep. Weissmann, Sen. M. Carroll):  “Concerning Title Insurance, and, in connection therewith, Requiring Justifications to be Filed with the Commissioner of Insurance.”  Requires justification for a new or amended title insurance rate or fee to be filed with the Commissioner of Insurance, rather than retained at the principal Colorado office of the title insurance company or agent.  States that such filing shall include the effective date of the rate or fee, and that the effective date shall be at least 30 days after the commissioner receives the filing.  SIGNED BY THE GOVERNOR 3/18. (J. Wolff, Evans, Howe)

H.B. 1190 (Rep. Levy, Sen. Mitchell):  “Concerning the Enactment of the ‘Uniform Unsworn Foreign Declarations Act’.”  This bill is from the Colorado Commission on Uniform State Laws.  Enacts the uniform law drafted by the national conference of commissioners on uniform state laws.  However, it EXCLUDES the use of unsworn declarations for declarations required to be recorded for the purpose of conveying and recording title for real property.  SIGNED BY THE GOVERNOR 4/16. (Bernard, Compton)

H.B. 1197 (Rep. McNulty, Sen. Harvey):  “Concerning a Requirement that the Division of Housing Report Data Regarding Home Foreclosures in the State.”  This is an attempt to provide official foreclosure data from every county, and to issue a report at least quarterly summarizing the information.  Data shall include foreclosure filings and foreclosure auction sales, as well as the number of homeowners who cured a default. Amended to say that the term “foreclosure” shall only refer to a property that has been sold at auction.  SIGNED BY THE GOVERNOR 4/3. (Rice, Cook)

H.B. 1198 (Rep. McGihon, Sen. Morse):  “Concerning the ‘Uniform Power of Attorney Act’.”  Enacts the uniform act, drafted by the national conference of commissioners on uniform state laws.  Repeals the “Uniform Statutory Form Power of Attorney Act.” SIGNED BY THE GOVERNOR 4/9.  (Rosenthal, Edwards)

H.B. 1207 (Rep. C. Gardner, Sen. Veiga):  “Concerning Procedures to Enforce a Lien Related to Real Property.”  Makes numerous mostly technical changes to foreclosure law.  This bill was initiated by the public trustees.  All LTAC members should review the details.  Parts of this bill would be effective September 1, 2009, and other parts January 1, 2010.  SIGNED BY THE GOVERNOR 4/22. (Ruybal, Greg Wolff, Walter)

H.B. 1213 (Rep. Gagliardi, Sen. Schwartz):  “Concerning the Creation of the Housing Development Grant Fund in the State Treasury to be Administered by the Division of Housing for Purposes Associated with Increasing the Supply of Affordable Housing in the State.” This bill was initiated by the Colorado Division of Housing.  The fund shall consist of all moneys appropriated to it by the General Assembly, all moneys collected by the Division for purposes of the Act from federal grants, and other gifts and donations.  Upon the approval of the State Housing Board, authorizes the division to make a grant or loan from the fund to improve, preserve or expand the supply of affordable housing in Colorado.  SIGNED BY THE GOVERNOR 5/2.  (Rosenthal, Sloan)

H.B. 1227 (Rep. Frangas, Sen. Hudak):  “Concerning the Protection of Neighborhoods from Negative Impacts Associated with Rental Properties.”  Expands the definition of the criminal offense of equity skimming to include the act of continuing to collect rent from a tenant after foreclosure and sale of the property to another person.  SIGNED BY THE GOVERNOR 4/21. 

H.B. 1254 (Rep. Judd, Sen. Harvey):  “Concerning Additional Consumer Protections Relating to Like-Kind Exchanges Mediated by Exchange Facilitators.” Regulates as deceptive trade practices certain actions of exchange facilitators who, for a fee, facilitate like-kind exchanges of real property for purposes of deferring applicable federal taxes. SIGNED BY THE GOVERNOR 4/16. (Evans, Sapp)

H.B. 1260 (Rep. Ferrandino, Sen. Veiga):  “Concerning Designated Beneficiary Agreements. Authorizes 2 competent adults who are not married to enter into a designated beneficiary agreement, making each adult a designated beneficiary of the other.  In the absence of a superseding legal document that controls, a designated beneficiary agreement entitles each party to certain financial protections regarding ownership of real and personal property.  The beneficiary agreement also allows each party to inherit through intestate succession upon the death of the other designated beneficiary.  SIGNED BY THE GOVERNOR 4/9. (Bernard, Edwards)

H.B. 1276 (Rep. Ferrandino, Sen. M. Carroll):  “Concerning a Delay in the Foreclosure of Residential Property for Eligible Borrowers.”  Requires the Division of Housing to set qualifications for, train and retain foreclosure counselors to assist eligible borrowers in the deferment of a foreclosure sale.  Requires a notice to be posted on the front door of a property that is the subject of a notice of election and demand that provides information regarding how to pursue a mortgage foreclosure deferment.  Allows an eligible borrower the opportunity to defer a foreclosure sale on a residential property for 90 days.  Requires the borrower to contact a foreclosure counselor within 21 days after the notice of election and demand is received by the Public Trustee.  LTAC requested a clarification amendment to the bill, and this was included in amendments done in committee. This bill was initiated by the Governor’s Office.  SIGNED BY THE GOVERNOR 6/2.  (Rice, Kujawski)

H.B. 1287 (Rep. McGihon, Sen. Mitchell):  “Concerning Changes to the Colorado Probate Code”.  This bill comes from the Colorado Commission on Uniform State Laws.  Makes changes to the “Colorado Probate Code”, as drafted by the national conference of commissioners on uniform state laws.  The provisions of the Act apply to governing instruments executed by decedents dying on or after July 1, 2010.  The bill clarifies the spousal and  elective shares already provided in the code, and also addresses aspects of intestate succession and the parent-child relationship resulting in adoptions and surrogate arrangements. Nothing is said about real property.  SIGNED BY THE GOVERNOR 5/21.  (Condie, Edwards)

H.B. 1316 (Rep. Solano, Sen. Shaffer):  “Concerning Public Dissemination of Personal Information of a Person Working in the Criminal Justice System.”  AS DRAFTED, permits a peace officer, judge, magistrate or prosecutor to request that a public record containing his/her address or telephone number be kept confidential if the person has reason to believe he or she or his/her family could be the victim of harassment or in danger of bodily harm.  This section was removed in committee (Section 2 of the bill). This leaves only a provision that makes it a crime to post the personal information of law enforcement officials, including a judge, magistrate or prosecutor, or their families, on the internet if the dissemination of the information poses an imminent and serious safety threat. This is just a definition change, since this is already law for “peace officers”.   SIGNED BY THE GOVERNOR 5/21.  (Rice,Cook)

S.B. 40 (Sen. Hodge, Rep. Soper):  “Concerning the Regulation of Manufactured Homes.”  This is a technical cleanup to the manufactured housing bill passed last session (HB 08-1260).  All LTAC members who work with manufactured housing are encouraged to read this bill.  One goal of this bill and last year’s effort is more uniformity among counties in forms and processes. Changes in this bill effective 7/1/09.  SIGNED BY THE GOVERNOR 3/9. (Cook, Edwards)

S.B. 54 (Sen. Scheffel, Rep. A. Kerr):  “Concerning an Increase in the Civil Penalties Recoverable by the State under Statutes Related to Fair Trade.”  Changes the maximum civil penalty that may be imposed for violations of the ‘Colorado Consumer Protection Act’ to $500,000 (now $100,000), and clarifies that only the Attorney General or a district attorney can bring such a claim (not a private action).  Increases the maximum civil penalty that may be imposed for violations of the ‘Colorado Antitrust Act of 1992’ from $100,000 to $250,000.  This bill was initiated by the Attorney General.  SIGNED BY THE GOVERNOR 4/20.

S.B. 78 (Sen. Newell, Rep. Rice):  “Concerning the Abandonment of Portions of the State Highway System to Local Jurisdictions.”  Allows the State Transportation Commission to determine that all or a portion of a state highway no longer functions as a part of the state highway system. Specifies that, upon agreement with the county or municipality containing the highway or portion thereof, the highway or portion thereof shall be considered as abandoned and shall become either a county road or a city street. (Present law requires such abandonments to be recorded in the office of the county clerk/recorder.)  SIGNED BY THE GOVERNOR 4/22. (Ruybal, Sutherland)

S.B. 84 (Sen. Scheffel, Rep. Scanlan):  “Concerning Documents Related to the Role of the Office of the Secretary of State as Filing Office for Secured Transactions.”  Specifies that the document that must be filed with the Secretary of State to assign the ability to amend a financing statement must provide the date that the initial financing statement was filed or recorded and need not provide the name of one of the debtors.  Repeals the requirement that the Secretary include a check digit in secured transaction file numbers.  Authorizes the Secretary to issue evidentiary documents electronically. SIGNED BY THE GOVERNOR 4/20.  (Compton, Greg Wolff)

S.B. 87  (Sen. M. Carroll, Rep. Peniston):  “Concerning Increased Accountability Requirements for Special Districts.”  Requires information about special district audits and budgets to be posted on the official web site of the division of local government in the Department of Local Affairs.  Requires the contract for purchase and sale of residential real property to contain a disclosure statement to the buyer about special taxing districts, with modifications in wording from the current disclosure (item 8.4 in the current contract).  The bill no longer requires that a seller of residential real property provide to a purchaser a list of all special districts that are taxing authorities in which the property is located.  SIGNED BY THE GOVERNOR 6/1. (Edwards, Ruybal)

S.B. 111 (Sen. Bacon, Rep. Court):  “Concerning Continuation of the ‘Notaries Public Act’”.  This is a routine “sunset” bill, continuing the Notaries Public Act until 2018.  It allows the Secretary of State to suspend a notary public commission or issue a letter of admonition as a means of discipline, an intermediate step not now available.  Presently the only action available in the case of violation of the Act is denial of appointment or reappointment, or revocation of the commission. The bill requires a notary public to make a journal entry for each notarial act, not just those affecting title to real property.  It also says the Secretary of State MAY promulgate rules to require notaries to complete a training program. Amended on Senate floor to remove the provision of concern to LTAC and the Colorado Bar Assn., which would have prevented an attorney from notarizing a document that attorney had “prepared, explained, or recommended to the principal”.  In House committee, the Dept. of Regulatory Agencies obtained an amendment REMOVING the existing exemption for attorneys and title companies from the requirement that notaries keep a journal. With the final amendments, the bill is silent on this matter, and thus we will return to present law. (Title company/title agent notaries do not have to keep journals, since the original documents must be kept in the regular course of business.)  SIGNED BY THE GOVERNOR 4/22.  (Evans, Bernard)

S.B. 137 (Sen. Renfroe, Rep. Baumgardner):  “Concerning the Timely Payment of Debts in Relation to a Waiver of the Right to Attach a Property Lien.”  Requires a property lien waiver to contain a statement that all debts associated with the lien have been paid or will be paid.  Makes it a class I misdemeanor to knowingly fail to timely pay the debts covered by the lien waiver.  SIGNED BY THE GOVERNOR 4/20. (Condie, Sloan)

S.B. 249 (Sen. Penry, Rep. A. Kerr):  “Concerning the Applicability to Small Common-Interest Communities of Recently Enacted Provisions of the ‘Colorado Common Interest Ownership Act’.” In certain of the applicability sections of the CCIOA that exempt some small communities from all but specifically enumerated provisions of CCIOA, adds provisions enacted after 2004 to those with which such small communities must comply. These include provisions such as trimming of vegetation and accessibility for the disabled.  No impact for title insurance.   UNAMENDED.  SIGNED BY THE GOVERNOR 5/14.

S.B. 276 (Sen. White, Rep. Pommer):  “Concerning the Property Tax Exemption for Qualifying Seniors, and in connection therewith, Lowering for a Specified Property Tax Year the Maximum Amount of Actual Value of the Primary Owner-Occupied Residence of a Qualifying Senior that is Partly Exempt from Property Taxation.”  For property tax year 2009 ONLY, reduces to zero the amount of senior property tax exemption.  This amounts to $90 million, and was an essential piece of balancing the state’s budget.  Effective upon signature.  SIGNED BY THE GOVERNOR 6/4.

 

2008 Legislation Final

To: Land Title Association of Colorado
From: Cathy Wanstrath, LTAC lobbyist
Subject: Legislation of Interest to LTAC
Date: May 8, 2008---end of session

(Names in parentheses are Legislative Committee members assigned to these bills. Killed bills will be listed as such once, then deleted.)

H.B. 1007 (Rep. Looper, Sen. Tapia): Concerning the Modification of Statutory Provisions Enacted by the General Assembly during the 2006 Legislative Session that Impose Certain Requirements on Private Toll Companies for the Purpose of Alleviating Consequences of those Provisions that May Affect Real Property.” This bill reverses the process of “flagging” in the real property records all properties within the path of the Super Slab, by making “void” any written notice, disclaimer of interest or map previously recorded by the toll road company. Requires a title insurance company to exclude a void disclaimer of interest, map or notice from any documents it prepares after the effective date of this act. No cause of action shall be maintained based on compliance with current toll road law or this change. Amended in Senate to add a required disclosure on the seller’s property disclosure of any proposed or existing transportation project that affects the real property. Effective 1/1/09, and note that this is much broader than just toll roads. TO THE GOVERNOR. (Evans, Stubbs, Condie)

H.B. 1014 (Rep. Looper, Sen. Gordon): “Concerning a Requirement to Transfer a Well Permit upon Conveyance of Residential Real Property.” Colorado law in effect since 1995 requires a buyer of a property with a small capacity well to complete a standard form notifying the State Engineer of the property description, the new owner’s name and the well permit number. This process has no enforcement mechanism and is not being followed routinely. Therefore the State Engineer has asked for this bill. The bill clarifies the obligation of the buyer of a property with this type of well to complete the change in ownership form prior to or at closing. Proper use of the new 1/1/08 Contract to Buy and Sell Real Estate SHOULD include the necessary information. The role of the closer is to mail in this well permit change form within 60 days of closing “with as much information as is available”. This means that if the closer cannot get the well permit number, the closer can send in the form “incomplete” and it will not be rejected. Amended at the request of the Colorado Association of Realtors to take out the requirement that the Real Estate Commission promulgate a rule to require that each contract subject to this law INCLUDE THE WATER WELL FORM. Instead the contract “shall require the buyer to complete the appropriate form for the well…” CAR also had Section 2 of the bill deleted, which referred to action that the Commission could take against a Realtor for not complying with section 3 (c), which includes duties of the buyer and closer, not the Realtor. Another amendment clarifies that the bill relates to wells “used for ordinary household purposes”. Effective date August 6, 2008. SIGNED BY THE GOVERNOR 3/26. Evans, Compton, Howe)

H.B. 1053 (Rep. McNulty, Sen. Harvey): “Concerning the Electronic Submission of Plats to a Local Government Entity.” Allows for the electronic recording and filing of plats, “with appropriate permanency protocols”. Bill requested by the Douglas County Clerk. SIGNED BY THE GOVERNOR 3/17. (Rosenthal, Hatter)

H.B. 1131 (Rep. McGihon, Sen. Hagedorn): “Concerning Procedures Required for the Approval by the Commissioner of Insurance of Changes in Control of Insurers.” Requires the Commissioner to conduct an independent investigation to determine the impact on competition resulting from a proposed merger of insurers. Requires the commissioner to issue a public report on her findings within 60 days after the filing of the insurers’ statements regarding the proposed merger. The Commissioner shall approve the merger ONLY IF several conditions are met, which is a reversal of the current process which presumes approval unless certain negative conditions are found. (The bill was amended to apply only to health insurers.) SIGNED BY THE GOVERNOR 4/25.(G.Wolff, Schreiber)

H.B. 1135 (Rep. M. Carroll, Sen. Hagedorn): “Concerning Common Interest Communities, and in connection therewith, Invalidating Covenants that Prohibit Building Modifications to Accommodate Persons with Disabilities, Requiring Due Process in Penalty Assessment Procedures, and Providing for Alternative Dispute Resolution.” This bill addresses some recent high-profile HOA disputes, none of which directly impact title insurance.

SIGNED BY THE GOVERNOR 4/21. (Carlson, Ruybal) H.B. 1141 (Rep. Curry, Sen. Bacon): “Concerning Sufficient Water Supplies for Land Use Approval.” Requires a local government to make a determination as to whether an applicant for a real estate development permit for a development in excess of 50 units or single-family equivalents has demonstrated that the proposed water supply is sufficient and sustainable to serve the peak water supply requirements of the proposed development, but leaves the decision to the local government. This is a complete rewrite of the original bill, although the essence remains the same. TO THE GOVERNOR. (Cook, Kujawski)

H.B. 1148 (Rep. Witwer, Sen. Tupa): “Concerning the Sufficiency of the Assertion of a Claim for Title to Real Property by Adverse Possession under Colorado Law.” On and after July 1, 2008, in addition to any other requirements specified in current law, specifies that a person may acquire fee simple title to real property by adverse possession only upon satisfaction of each of the following conditions: (1) The person has satisfied all of the elements of a claim for adverse possession required at common law; and (2) The person had a good faith belief that the person was the actual owner of the property, and the belief was reasonable under the circumstances. The person asserting the claim of adverse possession must prove each of the elements by clear and convincing evidence. Where the person asserting a claim of title by adverse possession prevails on such a claim, the court may decide to award the nonprevailing party an amount representing the fair market value of the property that is the subject of the claim as well as an amount representing all or a part of the property taxes levied on the subject property the nonprevailing party has paid. Completely rewritten, so reference the revised version. SIGNED BY THE GOVERNOR 4/25. (Berg, Sloan)

H.B. 1153 (Rep. Roberts, Sen. Morse): “Concerning the Oversight of Fiduciaries under the Provisions of the Colorado Probate Code”. Adds a new part to the Colorado probate code concerning oversight of fiduciaries in decedents’ estates, guardianships and conservatorships, and trusts. SIGNED BY THE GOVERNOR 4/17, unamended. (Burks, Edgar, Kujawski)

H.B. 1178 (Rep. M. Carroll, Sen. Hagedorn): “Concerning the Regulation of Commercial Electronic Mail Messages to the Maximum Extent Permissible Under Federal Law, and in connection therewith, Enacting the ‘Spam Reduction Act of 2008’”. Replaces the existing “Colorado Junk Email Law” with provisions that are intended to be consistent with, and as stringent as may be adopted by, any state under the federal “CAN-SPAM Act of 2003”. Defines a violation of the CAN-SPAM Act as a deceptive trade practice. Invokes the attorney general’s enforcement authority and other available remedies under the Colorado Consumer Protection Act. SIGNED BY THE GOVERNOR 4/23. (Hatter, Stubbs)

H.B. 1195 (Rep. Mitchell, Sen. Taylor): “Concerning the Return of a Release of a Deed of Trust after Recording”. Specifies that the public trustee shall be provided with a current address of the original grantor, assignee, or current owner when a request is made to release a deed of trust, but an amendment allows the PT the discretion to release a DOT instead of rejecting it if the required information is not provided. Requires that, after recording the release of a deed of trust, the county clerk shall return the release to the original grantor, assuming party or current owner using the address provided to the public trustee. If the release is returned to the county clerk as undeliverable, the clerk shall retain the release according to office policy. SIGNED BY THE GOVERNOR 4/21. (Ruybal, Stubbs)

H.B. 1202 (Rep. McGihon, Sen. Shaffer): “Concerning the Enactment of the ‘Uniform Foreign- Country Money Judgments Recognition Act.” This is an update of the existing uniform law enacted in 1962, reflecting court cases since then. It states that a foreign country judgment is enforceable in the same manner and to the same extent as a judgment rendered in this State. It allows a court in Colorado to NOT recognize such a judgment if “the judgment was rendered under a judicial system that does not provide impartial tribunals or procedures compatible with the requirements of due process of law.” UNAMENDED. SIGNED BY THE GOVERNOR 3/19. (Sloan, Cranmer)

H.B. 1212 (Rep. M. Carroll, Sen. Tapia): “Concerning the Continuation of the Real Estate Commission, and in connection therewith, Repealing the Requirement for Group Errors and Omissions Insurance, Authorizing Service of Process by Mail, Repealing the Licensure of Real Estate Salespersons, Modifying Continuing Education Requirements, Altering the Membership of the Commission, Repealing the Licensing Reciprocity Requirement, Expanding the Grounds for Discipline, Authorizing Name-Based Criminal History Background Checks, Requiring Fines to be Deposited in the General Fund, and Altering the Hiring Authority for Employees of the Division of Real Estate.” The sunset review continuation of real estate licensure. SIGNED BY THE GOVERNOR 4/17. (Sloan, G. Wolff)

H.B. 1213 (Rep. Liston, Sen. Tochtrop): “Concerning the Continuation of the Regulation of Insurance Producers by the Division of Insurance, and…Continuing the Functions of the Division of Insurance Related to the Licensing of Insurance Producers until July 1, 2019….” This is a routine sunset review bill. Eliminates the requirement that the Commissioner of Insurance reject the registration of any insurance producer whose name is similar to that of another registered insurance producer. Effective 7/1/08. SIGNED BY THE GOVERNOR 3/26. (Bernard, Rosenthal)

H.B. 1216 (Rep. Ferrandino, Sen. Romer): “Concerning the Creation of the Consumer Outreach and Education Program within the Department of Regulatory Agencies”. The purpose of this program is to inform consumers of their rights regarding regulated professions and occupations, decrease regulatory violations, and ensure public awareness of consumer protection information available from the department. Funded by a new surcharge on fines from violations related to regulated professions and occupations ($200,000). This is a bill initiated by DORA. In the Senate 5/1 an amendment was added to create an Insurance Ombudsman under the Executive Director of DORA to assist consumers with insurance information and problems. This would be funded by a 15 cent charge on each insurance policy sold in Colorado. DORA and the Division of Insurance don’t want this, because it duplicates the jobs being done by 7 employees currently in the Division of Insurance. Insurance companies worked to oppose this amendment, which is apparently the whim of a single senator. Finally amended 5/6 to eliminate this amendment and the funding, and simply require DORA to report to the Joint Budget Committee in September 2008 on the need for an Insurance Ombudsman, and costs associated with such. TO THE GOVERNOR. (Rice, Ruybal)

H.B. 1228 (Rep. Green, Sen. Gordon): “Concerning Financial Responsibility for Unfair Business Practices in the Sale of Insurance”. THIS IS A DIVISION OF INSURANCE BILL. Authorizes the Commissioner of Insurance to collect restitution from insurance producers and insurance companies for wrongful acts. Requires an insurer to be financially responsible for the unfair business practices of an insurance producer authorized to sell a product or plan of the insurer, if the insurer knew or should have known about the unfair business practices. The bill was amended, clarifying that an insurance company is only liable for the actions of its agent when that agent is acting on behalf of that insurer. (If a producer who writes for many insurers commits a wrongful act, not all companies for which he writes will be liable.) Following a meeting with the Commissioner of Insurance and staff on 2/22, the Division agreed to leave “knew or should have known” language in the bill, which they had removed in committee, and define unfair business practices as “violations of Title 10”. PASSED THE HOUSE, with the above amendments. SIGNED BY THE GOVERNOR 4/21. (Bode, Kujawski)

H.B. 1248 (Rep. J. Kerr, Sen. Veiga): “Concerning Joint Tenancy in Real Property”. THIS IS AN LTAC-INITIATED BILL. Defines joint tenancy and establishes how a joint tenant may sever a joint tenancy. States that, “Filing a petition in bankruptcy by a joint tenant shall not sever a joint tenancy.” This bill was made necessary by the Colorado Supreme Court decision in Canterbury v. Taylor. Amended in the House, following negotiation with sections of the Colorado Bar Association, to allow for unequal joint tenancies. The amendment clarifies the result of the death of one joint tenant. Further amended in the Senate to refine language worked out with the Colorado Bar Assn. The State Department of Health Care Policy and Financing had concerns about the bill, and how it may impact Medicaid estate recovery. Following a meeting with them, LTAC agreed to an amendment stating that, for purposes of Medicaid estate recovery, joint tenancies are deemed to be equal. SIGNED BY THE GOVERNOR 4/25. (Edwards, Rice)

H.B. 1260 (Rep. Hodge, Sen. Penry): “Concerning the Regulation of Manufactured Homes”. This bill is a major revision in the process of titling manufactured homes, including the use of several new forms that will evidence changes in the location and/or ownership status of such homes. All these new forms (e.g. Certificate of Permanent Location; Certificate of Removal; Certificate of Destruction) will be recorded with the county clerk. This bill is the product of a months-long effort by participants including LTAC; the Rocky Mountain Home Association; county clerks, treasurers and assessors; the state agencies who regulate manufactured housing; lenders such as CHFA; and attorneys who work in this area. SIGNED BY THE GOVERNOR 4/14. (A working group has begun efforts on the new forms, under the direction of the Division of Property Taxation.) (Berg, Cook)

H.B. 1266 (Rep. Witwer, Sen. Veiga): “Concerning the Filing of Notices Related to Liens with the Secretary of State”. Allows a secured party as well as a debtor to file a correction statement to a financing statement to perfect a security interest or agricultural lien. Eliminates the requirement that the secretary of state provide information on federal tax lien notices to persons requesting information on records filed with the secretary. Makes numerous other changes to the process of filing and maintaining lien records in the office of the secretary of state. Note: Section 7 of the bill was deleted, needing more work by the task force that wrote this bill. This was the section on which LTAC had noted concern. SIGNED BY THE GOVERNOR 3/31. (Condie, Kujawski)

H.B. 1275 (Rep. T. Carroll, Sen. Isgar): “Concerning Certain Organizations that Incorrectly Filed the Annual Report Required to Maintain Property Tax-Exempt Status”. Forgives the balance of property taxes owed by a religious, charitable or educational organization on or after the effective date of this bill, if the organization filed an application for exemption and was granted an exemption from general taxation on real and personal property; filed the required annual report but filed it incompletely or incorrectly; and was denied tax-exempt status as a result of the incomplete or incorrect filing and received a property tax bill. SIGNED BY THE GOVERNOR 4/14. (Hatter, Schreiber)

H.B. 1365 (Rep. McFadyen, Sen. Gibbs): “Concerning the Foreclosure of Assessment Liens against Time Share Estates”. Allows a unit owners’ association foreclosing an assessment lien against a time share estate to join in the foreclosure action multiple defendant obligors, junior lienors, or separate time share estates if the judicial foreclosure action involves a single common interest community, each time share estate foreclosed is subject to a separate foreclosure sale, and cure and redemption rights remain separate. The intent is to save money on the foreclosure process (filing fees, publication costs) when several timeshares in the same development are delinquent. Amended to state that, if a delinquent time-share owner gives a deed in lieu of foreclosure, the outstanding assessment will be forgiven. Amendments in committee removed LTAC concerns. No further amendments. TO THE GOVERNOR. (Holland, Jones)

H.B. 1402 (Reps. Gagliardi and Ferrandino, Sen. Bacon); “Concerning Additional Protections for Homeowners Facing Foreclosure.” LTAC opposed the introduced version of this bill. Among other provisions, it would have allowed a judge in a foreclosure action to extend the sale date an additional 90 days if the debtor showed that certain disclosures were not made by the lender, or if the lender did not make “good faith mitigation efforts” to cure a default. The definition of “good faith mitigation efforts” included refinancing the loan, extending the term of the loan, reducing the principal, or modifying the interest rate. Due to strong opposition from lenders, title insurance and many other groups, the bill was amended in committee to two provisions, and the rest of the bill was scrapped. The bill now (1) Makes a $100,000 general fund appropriation to the Division of Housing for community outreach to reduce foreclosures, and (2) Requires a lender, at least 30 days after default, to mail a notice to the debtor including the phone number for the Colorado Foreclosure Hotline, and the direct telephone number of the lender’s loss mitigation department. Minor clarifying amendments in the Senate. TO THE GOVERNOR.

H.B. 1407 (Rep. Romanoff, Sen. Gordon): “Concerning Strengthening Penalties for the Unreasonable Conduct of an Insurance Carrier”. This is a so-called “bad faith” bill, which in its introduced form covered all lines of insurance. It significantly increases the penalties that the Insurance Commissioner can impose for the violation of any law, rule or order of the Commissioner (amended version triples such penalties; original version quintupled them). The bill expands the definition of “restitution” to include lost time from work and attorneys’ fees. Insurance interests from all lines have worked against this bill, but the trial bar is working to pass it. The Division of Insurance testified in support of the bill. AMENDED TO EXCLUDE TITLE INSURANCE FROM THE MAJOR PARTS OF THE BILL. (Amendment was offered and successfully defended on the House floor by Rep. Al White on behalf of LTAC.) TO THE GOVERNOR.

S.B. 41 (Sen. Cadman, Rep. Curry): “Concerning the Ownership of Minerals Beneath Land Acquired by Governmental Entities, and in connection therewith, Clarifying that a Governmental Entity May Acquire Interests in Such Minerals Only to the Extent Required for Subsurface Support.” Clarifies that the Transportation Commission, any other governmental entity acquiring land for road or highway purposes, or any other entity acquiring an easement or right-of-way may only acquire through condemnation interests in oil, natural gas, or other mineral resources beneath the land acquired to the extent required for subsurface support. SIGNED BY THE GOVERNOR 4/25. (Holland, Bernard)

S.B. 62 (Sen. Groff, Rep. Marshall): “Concerning the Authority of Certain Agencies within the Department of Regulatory Agencies to Share Information Regarding Misconduct by Entities Licensed by the Department with other Licensing Agencies within the Department”. Authorizes the Commissioner of Financial Services (securities regulation, credit unions) to give information relating to the misconduct of persons regulated by the Division of Real Estate to the Division of Real Estate. Allows the Division of Banking and the State Bank Commissioner to inform a licensing agency within DORA of possible misconduct by a person or entity licensed by said agency. SIGNED BY THE GOVERNOR 3/24. (Bode, Rice)

S.B. 207 (Sen. Groff, Rep. T. Carroll): “Concerning the Provision of Statistical Data on Insurance Producer Examination Applications”. Requires an application for an insurance producer examination to request demographic information from each applicant. Requires the application to specify that an applicant does not have to provide information concerning gender, native language, or race or ethnicity. Requires the Commissioner of Insurance to annually prepare and publish a report regarding the demographic information gathered from the application. Amended to EXCLUDE Social Security number from the demographic information requested. TO THE GOVERNOR. (Carlson, G. Wolff) The Governor has until June 5 to act on bills.

2007 Legislation Final

To:         Land Title Association of Colorado       
From:       Cathy Wanstrath, LTAC lobbyist
Subject:    Legislation of Interest to LTAC  (End of session report.  The Governor has 30 days to act on bills.) 
Date:       May 7, 2007

S.B. 6  (Sen. Takis, Rep. J. Kerr):  “Concerning Authorization for the Abolition of a Redundant, Nonsignalized, and Unattended At-Grade Railroad Crossing without a Hearing before the Public Utilities Commission.”  This bill was brought by the railroads because they have many such crossings, which pose a safety and liability problem for them.  (There are over 1200 places between Denver and Cheyenne where railroad tracks cross roads; of course many of them are ranch roads.)  The bill came through the Transportation Legislation Review Committee, which means many interests already have signed off on it.  The bill allows the entity responsible for supervising and maintaining the highway or road at any crossing at grade of any public highway or road over the tracks of a railroad corporation to abolish the crossing without a hearing before the Public Utilities Commission under certain circumstances.  The corporation must provide 60 days notice by posting a notice at the crossing, and the property owners and other entities such as the county have the right to object.  The crossing to be abolished cannot be the only access to property.   SIGNED BY THE GOVERNOR 4/2. Note:  The railroads plan to address additional issues this summer through the Transportation Legislation Review Committee, and will keep LTAC informed about the legislation they will propose.  (Edgar, Carlson, Evans)

S.B. 40 (Sen. Tochtrop, Rep. Marshall):  “Concerning the Prohibition of a Financial Institution from Conducting Operations on the Premises of an Affiliate Engaged in Nonfinancial Activities.”  Prohibits a financial institution from establishing or maintaining its principal office, a loan production office, a deposit production office, a branch or “an electronic communications device” on or within 1.5 miles of premises owned, leased or otherwise controlled by an affiliate that engages in commercial activities.  “Commercial activities” are defined as activities in which a bank holding company, national bank, or a national bank financial subsidiary may not engage under federal law. Amended to exempt industrial banks that were insured depository institutions before 10-1-03, and whose parent company is a financial institution.   SIGNED BY THE GOVERNOR 3/16.  (Sutherland, Holland)

S.B. 45  (Sen. McElhany, Rep. McGihon):  “Concerning Fees for Providing Public Records”.  Sets the fee that a custodian may charge for copies of certain public records at ten cents per standard page, or a fee not to exceed the actual cost of providing the copy, printout or photograph of a public record in a format other than a standard page.  Where a fee for a copy is specifically prescribed by law, the specific fee shall apply.  This is in response to recent news reports of excessive charges for public records, and the bill is supported by the Press Association.  As amended, the bill would reduce from $1.25 per page to 25 cents/page the fee county clerks and others could charge for copies of paper documents.  However, the committee also removed language from the bill about adding the cost of labor to retrieve records, not to exceed $15, so case law will continue to prevail in this regard. SIGNED BY THE GOVERNOR 4/19.  (Compton, G. Wolff)

S.B. 85  (Sen. Veiga, Rep. Massey):  “Concerning Additional Consumer Protections Relating to Real Estate Transactions.”  Broad title, but as written it applies only to mortgage brokers. Prohibits a mortgage broker from improperly influencing a real estate appraisal, and makes improper influencing a deceptive trade practice.  Authorizes revocation of a mortgage broker’s registration for improperly influencing an appraisal, or if the broker has, within the past 5 years, been enjoined by a court in any state from brokering a mortgage.  As amended, eliminates the $200 cap on registration fees, so that now fees will be whatever it takes to “offset the direct and indirect costs of implementing” the mortgage brokers registration.  Also amended to clarify that reverse mortgages are not prohibited.  TO THE GOVERNOR.  (Bernard, Jones)

S.B. 90  (Sen. Kopp, Rep. J. Kerr):  “Concerning County Authority to Vest Title to a Vacated Roadway”.  This is an addendum to present law on vacated roadways.  This bill would allow a board of county commissioners to provide that title to a vacated roadway shall vest in one or more individuals or legal entities subject to a private-access easement to benefit certain designated properties.  The documents supporting such a vacation would have to be recorded in the appropriate county clerk’s office, per the existing CRS 43-1-202.7.
 SIGNED BY THE GOVERNOR 4/20.  (Burks, Rosenthal)

S.B. 157 (Sen. Ward, Rep. Rice):  “Concerning Exercise of the Power of Eminent Domain by Urban Renewal Authorities”.  Prior to making a determination that property is located in a slum area, or that certain property itself is a slum, requires an urban renewal authority to provide notice of the determination to the county commissioners and to all property owners, residents and owners of business concerns located in the area.  No area shall be designated as blighted where any part of the area has been classified as agricultural land for property tax purposes within the past 5 years, unless the part of the area classified as agricultural land constitutes less than 10 percent of the aggregate urban renewal project area. TO THE GOVERNOR. (Compton, Holland)

S.B. 203 (Sen. Groff, Rep. Marshall):  “Concerning the Regulation of Persons Participating in Mortgage Loan Transactions, and, in connection therewith, Requiring Mortgage Brokers to be Licensed and Specifying Prohibited Acts and Grounds for Discipline of Licensees.”  Changes the “registration” of mortgage brokers to “licensing”.  Requires mortgage brokers to maintain errors and omissions insurance coverage. Requires a DRAFT of all documents “material to a mortgage transaction” on residential real estate to be provided to the borrower at least one business day before closing.  This means the deed of conveyance except in the case of a refinancing, the loan agreement, and the title documents if requested by the borrower.  The bill was also amended to allow temporary licenses for mortgage brokers while the CBI background checks are done, which can take several weeks or more.  TO THE GOVERNOR. (Rice, Sloan, Cook)

S.B. 216  (Sen. Veiga, Rep. Marshall):  “Concerning Additional Consumer Protections in Residential Mortgage Loan Transactions”.  Creates a duty of good faith and fair dealing for mortgage brokers in their communications and transactions with borrowers.  Requires refinancing transactions to have a “tangible, net benefit” to borrowers, which term will be defined by rule.  This is the standard Household Finance agreed to in order to settle a massive case against it.  The amendments passed in committee remove any concerns for LTAC.  TO THE GOVERNOR.  (Schreiber, Bode)

S.B. 237 (Sen. Shaffer, Rep. Massey):  “Concerning Notification of Mineral Estate Owners in Connection with Applications for Surface Development, and in Connection Therewith, Specifying Requirements for Drilling Oil and Gas Wells in the Greater Wattenberg Area.”  Modifies requirements for identifying mineral estate owners when a surface developer submits an application for surface development to a local government.  Modifies the parties’ liability and remedies regarding notification of mineral estate owners and surface and oil and gas development.  The Wattenberg area is in Weld, Larimer, Adams, Broomfield and Boulder counties.  If the surface and oil/gas developers cannot agree concerning such development, allows the surface developer to designate an oil and gas operations area to protect existing wells and allow for future drilling.  TO THE GOVERNOR.  (Howe, Condie)

S.B. 249 (Sen. Veiga, Rep. Rice):  “Concerning the Application of Existing Regulations to Persons Performing Services in Connection with Real Estate Transactions, and Making an Appropriation.”  The bill was completely rewritten.  The final version does not include licensure of independent closing/settlement service providers. (The industry could still request a “sunrise review” by the Department of Regulatory Agencies to study the need for such licensure.) The bill requires the Division of Insurance to levy an assessment on title insurers to pay for 2 employees to perform “market analysis, investigation, and enforcement of Article 11 of this title and rules adopted pursuant to said Article 11…” Requires annual reports to the legislature on enforcement actions and market trends associated with title insurance and real estate transactions, and consumer complaints.  The initial surcharge will be due by September 1, 2007.  As amended, LTAC dropped its opposition.   TO THE GOVERNOR.

H.B. 1047 (Rep. Massey, Sen. Veiga):  “Concerning Additions to the List of Educational Resources from Which Approved Continuing Education Credits for a Real Estate Agent May be Taken.”  This bill comes from the Colorado Association of Realtors.  They are replacing in statute a section that they believe was inadvertently taken out a couple of years ago.  Their intent is to restore the ability of their state association and local affiliates to offer continuing education for credit to their members.   SIGNED BY THE GOVERNOR 3/14, unamended (Schreiber, Hatter)

H.B. 1156 (Rep. Looper, Sen. Gordon):  “Concerning the Disclosure of Water Sources in Connection with the Sale of Residential Real Property.”  The bill as amended charges the Real Estate Commission to require by rule that, in any sale of residential real property, the seller disclose the source of water for the property. It is left to the REC to decide whether this disclosure is in the listing contract, the contract of sale, or the seller’s property disclosure.  However, the Colorado Assn. of Realtors favors the seller’s property disclosure and believes that is what the REC will decide.  If the source is a well, requires the disclosure to include a copy of the well permit “if one is available”.  Effective date 1-1-08.  Amended to include contracts not subject to the Real Estate Commission, such as FSBOs.  Also includes apartments.    TO THE GOVERNOR.  (Compton, Cranmer, Evans)

H.B. 1157 (Rep. Garcia, Sen. Veiga):  “Concerning Real Estate Foreclosures”.  This is mostly a technical cleanup bill to last year’s broad revision of foreclosure statutes.  This bill is being promoted by the public trustees and the Colorado Bar Association.  One major change relates to the process for rescission of a public trustee sale.  LTAC offered several amendments, which the sponsor and other stakeholders accepted, including a requirement that the public trustee will record the Order Authorizing Sale and the mailing lists and supplements.  The right to rescind a sale will be reserved only for the foreclosing lender. All other issues (homeowners’ associations) have been resolved for the present.  Effective date changed to 1-1-08.  TO THE GOVERNOR.   (Howe, Edwards, Rice)

H.B. 1175 (Rep. Madden, Sen. Fitz-Gerald):  “Concerning a Limitation on the Operation of Industrial Banks at Commercial Locations.”  This is the Colorado Bankers’ Association approach to limiting the big-box stores from entering the banking industry.  (The Independent Bankers of Colorado have S.B. 40). Promotes the federal policy of prohibiting the mixing of banking and commerce by specifying that no industrial bank may accept deposits or make loans at a commercial location unless it is owned by a financial holding company. SIGNED BY THE GOVERNOR 3/14. (Sutherland, Holland)

H.B. 1197 (Rep. Fischer, Sen. Bacon):  “Concerning the Authority of a County to Abate Conditions that Contribute to a Violation of a General Stormwater Quality Permit Issued to the County by the Department of Public Health and Environment.”  Colorado Counties, Inc. initiated this bill.  Allows a board of county commissioners to adopt an ordinance to develop, implement and enforce the stormwater management program required by the permit issued to the county, for property located within unincorporated portions of the county.  If the property owner refuses to perform the abatement of a condition that causes violation of the permit, the county can do so and may place a lien on the property for their costs of the abatement.  The lien shall have priority based on its date of recording.  LTAC amendment was included, clarifying that the lien will be recorded with the county clerk/recorder.  SIGNED BY THE GOVERNOR 4/9.  (Edgar, Howe)

H.B. 1225 (Rep. J. Kerr, Sen. Tapia):  “Concerning Land Surveys”.  Makes several unrelated changes to law relating to land surveys/surveyors.  One example:  Specifies that any uncertain line, uncertain corner, or uncertain boundary of an existing parcel of land that is recorded with the clerk and recorder of the county in which the land is located and that is in dispute may be determined and permanently established by written agreement of all affected parties.  If the map or plat is prepared by a licensed professional land surveyor, the monuments shall be set for any line, corner or boundary included in the agreement.  SIGNED BY THE GOVERNOR 3/30.(Berg, Wolff)

H.B. 1252 (Rep. Roberts, Sen. Isgar):  “Concerning the Accommodation of the Rights of Surface Owners with Respect to Oil and Gas Operations.” Requires oil and gas operators to employ practices that minimize adverse impacts to the use and value of the surface when such practices are technologically sound and economically practicable.  Establishes that use of the surface in excess of that which would cause minimum adverse impact is unreasonable and excessive and constitutes a trespass.  TO THE GOVERNOR.  (Cranmer, Sloan)

H.B. 1265 (Rep. McNulty, Sen. Tochtrop):  “Concerning the Form of a Request to a Public Trustee to Release a Lien of a Deed of Trust.”  Specifies the written forms that may be used to request a release of a deed of trust with or without production of the original canceled evidence of debt.  The Public Trustees Association initiated this bill.  Amended to include check boxes for “full” and “partial” releases.  SIGNED BY THE GOVERNOR 4/9. (Carlson, Sutherland)

H.B. 1295 (Rep. Weissmann, Sen. Takis):  “Concerning the Identification of all Land Area within the Regional Transportation District, and in connection therewith, Requiring the RTD to Map the District and further Identify the District by Written Description.”  Requires the RTD board to prepare and update written documents with descriptions of the area as well as maps of the district boundaries.  Certified copies of the documents and maps are to be maintained at the district office, and recorded with the county clerk and recorder of any appropriate county. TO THE GOVERNOR. (Jones, Burks)

H.B. 1322 (Rep. Marshall, Sen. Groff):  “Concerning Measures to Prevent Mortgage Fraud, and in connection therewith, Extending the Prohibition against Certain Acts to Include Mortgage Lenders, Mortgage Loan Applicants, Real Estate Brokers, Real Estate Agents, Real Estate Appraisers, and Closing Agents; Prohibiting Certain Practices; and Changing the Mental State Required to be Proven as an Element of a Violation”.  In provisions of law relating to false and deceptive inducements to the creation of a mortgage loan by a mortgage broker or mortgage originator, adds mortgage lenders, mortgage loan applicants, real estate brokers, real estate agents, real estate appraisers, and closing agents to the persons to whom the prohibitions apply.  “Closing agent” is not defined. Requires mortgage brokers to make an inquiry about and to take into consideration the borrower’s current and prospective income and other factors prior to recommending, brokering, or originating a residential mortgage loan.  LTAC representatives met with Rep. Marshall on 3/9 to request amendments to the bill exempting title insurance companies and agents.  She declined to support our amendments in committee.  LTAC delivered a comprehensive letter to the sponsors, copied to Erin Toll and Attorney General Suthers, regarding the problems with this bill.  Sen. Groff agreed to the most important amendment we requested, and it was adopted in committee 4/11.  It clarifies that “closing agent” does not include persons or entities regulated by the Division of Insurance.   TO THE GOVERNOR.  (Cranmer, Hatter, Wolff, Rice)

H.B. 1338 (Rep.Pommer, Sen. Veiga):  “Concerning the Elimination of Certain Restrictions on Legal Rights Available to Residential Property Owners with Respect to Construction Defect Actions, and, in connection therewith, Enacting the ‘Homeowner Protection Act of 2007’.”  Makes waivers of certain basic statutory rights and remedies by residential property owners in their transactions with construction professionals void as against public policy.  Significantly changes the 2003 law that provided remedies for homeowners who have disputes with builders.  As amended, will still permit a requirement to participate in mediation prior to filing a suit or arbitration proceeding.  The main concern of the opponents of this bill is that the trial attorneys will try to get owners in multi-family developments to file lawsuits together, and have the $250,000 cap apply to each unit individually, for a much higher actual cap.  SIGNED BY THE GOVERNOR 4/20.  (Edwards, Holland)

H.B. 1362 (Rep. Levy, Sen. Morse):  “Concerning Clarification of the Documents Required for Creation of a Common Interest Community, and in connection therewith, Specifying the Information Required to be Contained Therein.”  This is the late bill from the Colorado Bar Association to address a recent Appeals Court decision, Snowmass Land Company v. Two Creeks HOA.  The dispute concerned whether certain rights of the developer need to be noted on the plat or map of the common interest community, when such information is already in the declarations.  TO THE GOVERNOR, unamended.  (Edgar, Compton)

2006 Special Session Legislation

To: LTAC Board of Directors
From: Cathy Wanstrath, LTAC lobbyist
Subject: Key bills for LTAC in Special Session
Date: July 15, 2006


Although 13 bills passed the recent special session, and all (except the 2 referred measures) are expected to be signed, only 3 appear to be of importance to LTAC. The last two of these are relevant to members in their capacity as employers.

House Bill S1009 (Rep. Crane, Sen. Johnson): “Concerning a Requirement that Governmental Entities Issue Authorizations Only to Persons who are Lawfully Present in the United States, and Making an Appropriation in Connection Therewith.” Requires state and local governments to issue and renew licenses, permits, registrations, certificates, or similar authorizations to a person only if the person is lawfully present in the U.S., and to deny or revoke such authorization upon determining that the person is unlawfully present in the U.S. Requires the person to prove his/her identity with a secure and verifiable document. For LTAC members, this will impact the Department of Regulatory Agencies procedures for issuing and renewing insurance licenses, real estate licenses, etc. An amendment specifically prohibits a governmental entity from selling or utilizing the information in the secure and verifiable document. Effective 1-1-07.


House Bill S1017 (Rep. Solano, Sen. Bacon): “Concerning Documentation by an Employer that Demonstrates Compliance with Federal Employment Verification Requirements, and Making an Appropriation in Connection Therewith.” Requires each employer in Colorado to affirm that the employer has examined documents indicating legal work status of each employee, that the employer has not altered such documents, and that the employer has not knowingly hired an unauthorized alien. These documents must be kept on file, and the Department of Labor can audit an employer if the Department has reason to believe the employer has not complied with this law. If an employer is found guilty of “reckless disregard” in violating this law, the fine is up to $5000 for the first offense and up to $25,000 for the second and subsequent offense. Applies to employees hired on and after 1-1-07.


House Bill S1020 (Rep. Benefield and Rep. Berens, Sen. Windels): “Concerning the Elimination of a State Income Tax Benefit for a Business that Pays an Unauthorized Alien to Perform Labor Services, and…Prohibiting Certain Wages or Remuneration Paid to an Unauthorized Alien for Labor Services from being Claimed as a Deductible Business Expense for State Income Tax Purposes.” This is a referred measure, meaning it will appear on the November 2006 ballot for the voters to decide. It would eliminate a tax benefit for businesses that hire illegal immigrants, on and after January 1, 2008. Specifically, remuneration of over $600 paid to an illegal person could not be claimed as a business expense, unless certain exemptions apply.

2006 Legislation Final

To: Land Title Association of Colorado
From: Cathy Wanstrath, LTAC lobbyist
Subject: Legislation of Interest to LTAC---FINAL REPORT
Date: June 7, 2006


S.B. 2 (Sen. Shaffer, Rep. Pommer): “Concerning Mandatory Disclosure in connection with the Purchase of Residential Real Property of Whether the Property has been Used as a Methamphetamine Laboratory”. Requires a seller to disclose to a buyer whether a residential real property has ever been used as a meth lab. Permits a buyer to have a property inspection, at his expense, to determine whether a meth lab had existed on the property. Requires certain statements on the standard residential real estate contract about whether meth production has occurred on the property, and if so, whether it has been remediated. Effective date is January 1, 2007. (Real estate contract will have to be amended to include these statements.) SIGNED BY THE GOVERNOR 5/1. (Sutherland, Hatter)

S.B. 14 (Sen. Taylor, Rep. White): “Concerning the Regulation of Entities Subject to the Real Estate Commission”. This bill comes from the Legislative Audit Committee. It requires real estate brokers and salespersons to independently obtain errors and omissions insurance if the Commission is unable to obtain such insurance at a reasonable annual premium. Also requires the Division of Real Estate, when its investigations uncover possible criminal acts, to forward such information to the proper law enforcement agency. The section regarding developers needing to submit fingerprints to the CBI was deleted by the House. SIGNED BY THE GOVERNOR 5/25. (Sloan, Edgar)

S.B. 71 (Sen. Veiga, Rep. Massey): “Concerning the Increased Regulation of Agreements Offered to a Home Owner in Connection with Foreclosure of the Home Owner’s Residence”. This is the Attorney General’s bill to regulate “foreclosure consultants” and “equity purchasers”. Title insurers, while performing title insurance or settlement services, are excluded from the definition of foreclosure consultant or equity purchaser. LTAC submitted suggested amendments to the A.G., and the amendments added in the Senate resolve our concerns. SIGNED BY THE GOVERNOR 5/30. (Abrahamson, Bregman, Howe)

S.B. 74 (Sen. Shaffer, Rep. Berens): “Concerning the Enforcement of County Code Requirements Pertaining to Land Use.” This bill makes several changes related to zoning or building code requirements. Provides that any assessment levied for violation of a county zoning/building code shall be a lien against the property on which the violation has been found to exist, and shall have priority over all other liens except taxes and prior special assessments. LTAC succeeded in getting an amendment to say these liens must be recorded. SIGNED BY THE GOVERNOR 3/31. (Rosenthal, Schreiber)

S.B. 78 (Sen. Wiens, Rep. McKinley): “Concerning a Prohibition Against the Exercise of the Power of Eminent Domain by a Private Corporation to Condemn the Private Property of Another Person or Entity for the Purpose of Acquiring Rights-of-Way for a Private Toll Road or Private Toll Highway.” This bill would prohibit a private company from condemning private land in order to build a toll road. The resolution, which has met with the Governor’s approval, is to allow the toll road corporation to work with the Department of Transportation, which could, if deemed appropriate and necessary, exercise eminent domain as present law allows. SIGNED BY THE GOVERNOR 3/31. (Evans, Lusetti, Stubbs)

S.B. 89 (Sen. Hagedorn, Rep. M. Carroll): “Concerning Common Interest Communities.” This is a “cleanup” to the homeowners’ association bill from last session. Under present law, the seller of a property in a common interest community is required to make certain documents available to the buyer. An agreement was reached with all parties (homebuilders, realtors, HOAs, LTAC) to amend the bill to require a statement on the real estate contract (by 1-1-07) informing the buyer that the property is subject to an HOA, and the implications. The current requirement for a signed form acknowledging delivery of documents is removed. The B-2 documents will still be delivered with the title commitment, per the real estate contract. Amended in House committee to incorporate amendments LTAC agreed upon with the other stakeholders. All HOAs are included except those in time-shares. SIGNED BY THE GOVERNOR 5/26. (Evans, Rice)

S.B. 95 (Sen. Taylor, Rep. Hodge): “Concerning Limitations on the Transfer of Property Rights as a Means of Qualifying Electors in Special District Elections.” Prohibits any person from knowingly taking or placing title to taxable property in the name of another, or entering into a contract to purchase or sell taxable property for the purpose of attempting to qualify such person as an eligible elector at any special district election. SIGNED BY THE GOVERNOR 3/29, unamended. (Rosenthal, Bregman)

S.B. 115 (Sen. Takis, Rep. Larson): “Concerning the Rights of a Local Government with Regard to the Construction of a Private Toll Road or Toll Highway.” Requires a toll road corporation to file with the appropriate county clerks a map or survey of the proposed route of the toll road or toll highway, and a listing of all property over which the proposed road will be built. Requires the toll road corporation to obtain the consent of the appropriate municipal or county authorities before constructing the highway, since it will inevitably intersect with local streets or alleys. SIGNED BY THE GOVERNOR 4/24. (Lusetti, Evans)

S.B. 154 (Sen. May, Rep. Pommer): “Concerning the Creation of a Central Statutory Reference for Statutes that Authorize the Use of the Power of Eminent Domain.” Without making any substantive changes to the law of eminent domain, cross-references in a single statutory section various statutory provisions that pertain to the power of eminent domain in order to help Coloradans to more easily determine whether any given governmental entity, corporation, or person may exercise the power of eminent domain, and identify the procedural requirements that the entity, corporation, or person must follow in exercising the power of eminent domain. SIGNED BY THE GOVERNOR 4/6. (Cook, Sloan)

H.B. 1003 (Rep. Pommer, Sen. Williams): “Concerning Private Toll Roads and Toll Highways, and, in connection therewith, Specifying Requirements that Must be Met before a Corporation can Construct a Private Toll Road or Toll Highway.” In committee, the bill was “struck below the enacting clause”, meaning it was completely rewritten. Much of it is similar to the original, but many details have changed. This bill requires a company proposing a toll road to specify a proposed route within 3 miles, and to comply with all Dept. of Transportation standards when planning, constructing and maintaining a toll highway. A toll road company will NOT have the power of eminent domain, but can partner with a government entity (e.g. CDOT) that could exercise eminent domain. The company must send notice to all landowners within the route specified of the intent of the company to build a toll road, summarize the approval process and opportunities for public comment, and provide a contact for additional information. The individual notices are no longer required to be filed with the county clerk, as they were in the original bill. The company must also file a disclaimer of interest with the county clerk in the county of residence of each person to whom the notices were sent that expressly states that the certificate of incorporation does not effect an interest in the person’s real property within the route specified in the certificate of incorporation. LTAC requested an amendment that was added to the bill in committee. The amendment requires that a MAP of the proposed route be filed with the county clerk, and that the letter to the county stating that a toll road route has been proposed will be RECORDED. We were unable to convince the proponents of the bill to agree to recording copies of ALL the letters delivered to property owners, or to record a list of all property owners who received letters. SIGNED BY THE GOVERNOR 6/6. (Lusetti, Stubbs, Evans)

H.B. 1119 (Rep. Marshall, Sen. Keller): “Concerning Security Breaches Regarding Personal Identifying Information.” Requires a Colorado business (“private legal entity”, profit or non-profit)that owns or licenses computerized data that includes personal information to notify customers who are residents of Colorado of any breach of the security of the system following the discovery of a breach in the security of personal information. Describes how the notification must occur. A regulated entity (e.g. insurance company) that “maintains procedures for a breach of the security of the system pursuant to the laws, rules, regulations, guidances or guidelines established by its primary or functional state or federal regulator is deemed to be in compliance with” the law. SIGNED BY THE GOVERNOR 4/24. (Compton, Lusetti)

H.B. 1137 (Rep. Judd, Sen. Shaffer): “Concerning Amendments to the Colorado Probate Code.” Colorado Bar Association routine rewrite of parts of the probate code. SIGNED BY THE GOVERNOR 4/6. (Cook, Jones)

H.B. 1141 (Rep. Hall, Sen. Grossman): “Concerning the Authorization of Affiliated Business Arrangements Relating to Title Insurance.” This bill defines what is acceptable in an affiliated business arrangement. LTAC worked extensively with the initiators of this bill, the Department of Regulatory Agencies (DORA) and the Division of Insurance. Amendments LTAC agreed to were adopted. Key amendments include a requirement that rules adopted to implement this legislation by the Division of Insurance and the Real Estate Commission must not be in conflict. Also, WILLFUL OR REPEATED violations of this statute are defined as unfair or deceptive trade practices. SIGNED BY THE GOVERNOR 3/31. (Rice, G.Wolff, Sutherland, Condie, Jones, Evans)

H.B. 1156 (Rep. Welker, Sen. Brophy): “Concerning Increased Consumer Rights Regarding the Use of Social Security Numbers.” Prohibits various uses of an individual’s Social Security number. One example: Printing an individual’s SSN on any materials that are mailed to the individual unless state or federal law requires the SSN to be on the document to be mailed. Makes certain exceptions, including uses “required, permitted, or authorized” by state or federal law. Effective 1-1-07. SIGNED BY THE GOVERNOR 3/31. (Compton, Holland)

H.B. 1161 (Rep. Vigil and Massey, Sen. Veiga): “Concerning the Regulation of Mortgage Brokers, and, in connection therewith, Making an Appropriation.” This is the bill favored by the Department of Regulatory Agencies for regulating mortgage brokers. This bill would require registration of and criminal background checks on mortgage brokers. The broker would be required to post a $25,000 bond. By amendment, FHA-approved mortgagees are exempted. Effective 7-1-06. SIGNED BY THE GOVERNOR 6/2. (Cranmer, Rice)

H.B. 1183 (Rep. Berens, Sen. Tapia): “Concerning Land Surveyors”. Requires a land surveyor to describe the evidence used to restore a monument or the procedure and evidence used to establish a monument. SIGNED BY THE GOVERNOR 4/5. (Bode, Hatter)

H.B. 1254 (Rep. Cerbo, Sen. Veiga): “Concerning Co-Ownership of Real Property.” Colorado Bar Association bill. Clarifies the ways that a joint tenancy in real property is created or is presumed to be created. Establishes that any conveyance to 2 or more persons that does not create or is not presumed to create an estate in joint tenancy shall be a tenancy in common. Modifies the procedures for proving the death of a joint tenant. (A proper affidavit can substitute for a death certificate, if a death certificate cannot be procured.) SIGNED BY THE GOVERNOR 3/31, unamended. (Cranmer, Jones)

H.B. 1323 (Rep. Marshall, Sen. Kester): “Concerning Fraud in the Mortgage Lending Process, and, in connection therewith, Imposing a Minimum Fine, Limiting Pleas Bargains, and Giving the Attorney General Concurrent Jurisdiction.” In the case of theft by deception in the mortgage lending process, requires that any fine imposed by the court must be at least the amount of pecuniary harm to the victim. Prohibits a court from accepting a plea bargain unless it includes an order of restitution to the victim. Allows a civil right of action even if the perpetrator was not convicted of a crime. “Mortgage lending process” includes the signing and closing. Allows the Division of Real Estate or other state agency to accept federal funds granted for the purpose of lowering the incidence of mortgage fraud. SIGNED BY THE GOVERNOR 5/30. (Rosenthal, Compton, Jones)

H.B. 1326 (Rep. Crane, Sen. Grossman): “Concerning Identity Theft”. Reorganizes the statutes pertaining to identity theft. Creates new crimes of identity theft (Class 4 felony), criminal possession of a financial device, possession of identity theft tools, and “gathering identifying information by deception”. Adds certain identity crimes to the list of crimes under the “Colorado Organized Crime Control Act.” Only Colorado and Vermont lack a specific crime of “identity theft”, and law enforcement believes that is part of why we rank 5th highest in the nation in this type of offense. SIGNED BY THE GOVERNOR 5/30. (Compton, Holland)

H.B. 1330 (Rep. Romanoff, Sen. Fitz-Gerald): “Concerning Information Filed with the Division of Insurance by Specified Types of Insurers”. Requires a property and casualty insurer to file with the Commissioner of Insurance the information required on schedule P of the NAIC annual statement, for Colorado business only, for the following lines of insurance: Private passenger auto; Commercial auto; Homeowners multiple peril; Farm owners multiple peril; Commercial multiple peril; Medical malpractice; Other liability. This bill comes at the urging of the Colorado Trial Lawyers Association. This bill does not cover title insurance. SIGNED BY THE GOVERNOR 6/1. (Bode, Howe)

H.B. 1347 (Rep. McGihon, Sen. Traylor): “Concerning Creation of the ‘Identity Theft and Financial Fraud Deterrence Act.” Creates the Identity Theft and Financial Fraud Deterrence Board to provide statewide support to law enforcement agencies in addressing identity theft and financial fraud crimes. The board will have 7 members, including the Attorney General and the Executive Director of the District Attorneys Council. This effort was initiated by the Colorado Bankers Association in reaction to the increase in check fraud and other financial crimes. The work of the board and fraud deterrence unit will be funded by surcharges on UCC filings, lender licenses, and money transmitter licenses. SIGNED BY THE GOVERNOR 5/30. (Lusetti, Edgar)

H.B. 1383 (Rep. Jahn, Sen. Owen): “Concerning the Regulation of Insurers’ Market Conduct by the Commissioner of Insurance.” Establishes procedures for the Commissioner of Insurance to conduct market conduct examinations to identify, assess, prioritize and remedy market conduct problems that have a substantial adverse impact on the market. Authorizes the Commissioner to conduct “targeted, on-site market conduct examinations when other market conduct actions are inappropriate”, but requires these be done in accord with NAIC procedures and handbook. Outlines confidentiality requirements: work product will be confidential, but the final report will be public. Bill would be effective 1-1-07. SIGNED BY THE GOVERNOR 5/17. (Edgar, Schreiber)

H.B. 1387 (Rep. Garcia, Sen. Veiga): “Concerning Real Estate Foreclosures”. This is the bill initiated by the Public Trustees and the Colorado Bar Association. It clarifies fees that may be charged by public trustees. Clarifies who may cure a default for nonpayment. Increases the amount of time a property owner or debtor has to cure a default by increasing the time between the commencement of a foreclosure and the initial date of the sale. Allows the holder of an evidence of debt to terminate a foreclosure by filing a written withdrawal of the notice of election and demand with the public trustee prior to the sale. Allows the public trustee to withdraw the notice of election and demand if no sale is held and the holder does not withdraw the notice within 45 days after the last date of sale permitted by law. (Additional 30 days notice is given after the 45 days runs.) “If a withdrawal is recorded during the pendency of an automatic stay imposed… under the Federal Bankruptcy Code…, the withdrawal shall be void and of no force and effect.” (LTAC obtained an amendment to require notice to be recorded in the case of such withdrawal during pendency of a bankruptcy, which withdrawal would be void. In addition, the public trustee shall mail to all persons on the mailing list a notice that the withdrawal of the NED occurred during a bankruptcy stay and is void.) The bill allows the public trustee to provide educational materials to homeowners regarding how to prevent or cure a foreclosure. SIGNED BY THE GOVERNOR 6/1. (Abrahamson, Bregman, Howe)

H.B. 1411 (Rep. White, Weissmann, Romanoff, Sen. Tochtrop): “Concerning the Circumstances under which Private Property may be Acquired by Public Entities through Exercise of the Power of Eminent Domain in Furtherance of a Public Use...and Requiring that a Condemnation Action Satisfy a Higher Degree of Proof when the Taking is for the Eradication of Blight.” Prevents a public entity from exercising eminent domain to transfer property to a private entity for the purpose of economic development or enhancement of tax revenue. IDENTICAL TO S.B. 238, which was killed. SIGNED BY THE GOVERNOR 6/6. (Evans, Stubbs, Lusetti)

2005 Legislation Final

To: Land Title Association of Colorado
From: Cathy Wanstrath, LTAC lobbyist
Subject: Legislation of Interest to LTAC (Names in parentheses are Legislative Committee members assigned to review the bill.)
Date: June 8, 2005 FINAL REPORT FOR SESSION--corrected version


S.B. 100 (Sen. Hagedorn, Rep. M. Carroll): “Concerning Increased Protection for Homeowners”. This bill places limits on homeowner associations, including prohibiting the association from having a rule against displaying an American flag or other patriotic symbols. Some other portions of the bill are more relevant to the title industry. Requires the buyer of a home in a HOA community to receive notice and documentation regarding the ability of the HOA to place a lien on the property for unpaid assessments, and an up-to-date accounting of the HOA’s financial condition. The final version of the bill continues present law which requires the HOA to furnish information on unpaid assessments, within 14 days after receipt of a written request, to a unit owner, holder of a security interest, or their designees. (Until conference committee, title insurance entities were specifically listed along with unit owners and holders of security interests, but in the end they deleted that entire section, thus returning to present law.) Generally exempts time-sharing properties from provisions of the bill. SIGNED BY THE GOVERNOR 6/6. (Anderson/Condie)

S.B. 137 (Sen. Grossman, Rep. Paccione): “Concerning Identity Theft”. Permits a consumer to put a security freeze on his/her credit report. Allows the consumer to temporarily lift the freeze to allow a particular entity access to the credit report for the purpose of extending credit to the consumer. SIGNED BY THE GOVERNOR 6/1. (Condie/Jones)

S.B. 230 (Sen. Wiens, Rep. McKinley): “Concerning Private Toll Roads, and…Prohibiting a Private Corporation from Acquiring Rights-of-Way for a Toll Road…Through the Exercise of Eminent Domain and Requiring the Transportation Legislation Review Committee to Recommend a Process by which a Private Toll Road…May be Constructed.” Prohibits a private corporation from using eminent domain to acquire property for a private toll road. Encourages the Transportation Legislation Review Committee, meeting during the summer/fall interim, to study laws that allow the construction of private toll roads, and make recommendations for the 2006 legislative session. VETOED BY THE GOVERNOR 6/6. (Stubbs/Evans/Lusetti)

H.B. 1007 (Rep. Garcia, Sen. Sandoval): “Concerning the Regulation of Notaries Public, and in connection therewith, Requiring Applicants to Obtain Training Prior to Appointment or Reappointment as a Notary Public and Requiring Notaries Public to Keep a Journal of all Notarial Acts.” On and after 1/1/06, requires all notaries public to take a course of instruction approved by the Secretary of State and pass an exam on the material covered by the course, prior to appointment or reappointment. Requires a notary public to keep a journal of “every notarial act”, not just those “affecting the title to real property”. LTAC successfully worked to pass an amendment to require education prior to getting the notary commission only (not prior to each renewal.) The industry already has an exemption from the journal portion of the notary law. We were successful in returning the bill to the version that passed the House. VETOED BY THE GOVERNOR 4/28. (Compton/Evans)

H.B. 1032 (Rep. Rose): “Concerning Modifications to a Planned Unit Development for Land Set Aside for Governmental Purposes”. This bill authorizes a governmental entity holding legal title to land located within a planned unit development (PUD) to subdivide all or any portion of the land; remove or release all or any portion of the land from use limitations specified in the plan; or sell or otherwise dispose of all or any portion of the land. The county or municipality in which the land is located must approve the action, and there must be a public hearing. This may provide local governments with increased flexibility and the potential to reap increased economic benefits related to land within a PUD. SIGNED BY THE GOVERNOR 6/1. (Anderson/Howe)

H.B. 1058 (Rep. Liston, Sen. McElhany): “Concerning Basic Rights for Mobile Home Owners who Lease Space in Mobile Home Parks”. Most of this bill relates to management issues between the owner of the park and owners of mobile homes, and is not relevant to title insurance. The bill requires a landlord of a mobile home park to give notice to the mobile home owners if the landlord intends to sell the land to a buyer who intends to change the use of the land comprising the park. (Bode/Sutherland) SIGNED BY THE GOVERNOR 4/5.

H.B. 1156 (Rep. Riesberg, Sen. Grossman): “Concerning Notification Requirements Applicable to the Determination of a Water Right”. Directs the water clerk to make the resume of water adjudication applications available on the internet rather than to mail the resumes. Requires applicants, rather than the water clerk, to notify potentially affected landowners of the application. (Bregman/Compton) SIGNED BY THE GOVERNOR 4/5.

H.B. 1159 (Rep. Crane, Sen. Hanna): “Concerning the Sale of Tax Liens by a County Treasurer”. States that a tax lien sale conducted by a county treasurer on the internet satisfies the requirement that the sale be held at a location in the county. States that the purchase price of a tax lien may be paid with a financial instrument approved by the county treasurer (current law says “cash”). The impetus for this bill is the Jefferson County Treasurer, who last year conducted a tax lien sale via internet, and some questions about legality of this approach were raised. (Rice/Evans) SIGNED BY THE GOVERNOR 6/3.

H.B. 1168 (Rep. Garcia, Sen. Kester): “Concerning Administrative Matters Related to a Foreclosure Proceeding.” The public trustees are behind this bill, and they have worked with the Colorado Bar Association. They consider it “clean-up” of several details in the foreclosure statute. Apparently there are numerous instances of foreclosure actions left “hanging”, with the public trustees’ requests to lawyers involved to cancel them ignored. The public trustees want to clear these actions from their books. LTAC worked with the Bar Assn. and the public trustees on section 3 of the amended bill (dealing with cancellation of foreclosure sales). This section was deleted. SIGNED BY THE GOVERNOR 4/27. (Howe, Lusetti)

H.B. 1192 (Rep. Soper, Sen. Spence): “Concerning a Requirement that a Local Government BE NOTIFIED OF the Termination of Certain Planned Communities.” Prohibits a planned community that is required to exist pursuant to a development or site plan from terminating unless the termination agreement is approved by the governing body of every municipality in which a portion of it is situated, or if in an unincorporated area, the county commissioners for every county in which a portion of it is situated. Such termination agreement is effective only upon recordation in each county in which a portion of the planned community is situated. Amended to only require notification of the local government, not approval. (Edgar/Longo) SIGNED BY THE GOVERNOR 6/3.

H.B. 1195 (Rep. Kerr, Sen. Keller): “Concerning a Requirement that a Deed Convey any Interest Held by the Grantor in Certain Vacated Rights-of-Way Adjoining the Subject Real Property”. This attempts to deal with the problem of vacated alleys or streets that are considered by adjacent property owners as part of their property but have never actually been joined to their property. It specifies that every deed shall be a conveyance of the grantor’s interest, if any, in any vacated street, alley or other right-of-way that adjoins the subject real property unless the transfer of such interest is expressly excluded in the deed. Everyone involved says this will have no practical effect on assessments until the next property tax year, although it was amended to have a ‘safety clause’, which means ‘effective on signature’. SIGNED BY THE GOVERNOR 4/27. (Rosenthal/Cranmer)

H.B. 1264 (Rep. Buescher, Sen. Tapia): “Concerning the Repeal of the Real Estate Recovery Fund”. This bill would eliminate the Real Estate Recovery Fund, and prohibits claims unless civil action is initiated no later than 30 days after the effective date of this act. This is a bill sponsored by the Joint Budget Committee. The Colorado Association of Realtors has no objection to this bill. SIGNED BY THE GOVERNOR 5/27. (Anderson/Rice)

H.B. 1304 (Rep. Hodge, Sen. Tochtrop): “Concerning a Prohibition on Discrimination Restricting Consumer Choices in Housing Construction Alternatives.” Prohibits any local government from enacting any ordinance or other legal requirement that has the effect, directly or indirectly, of discriminating against consumers’ choices in the placement or use of a home in such a manner that the ordinance or legal requirement is not equally applicable to all homes. Specifies that nothing in the act shall be construed as overriding any legally recorded covenants or deed restrictions of record. VETOED BY THE GOVERNOR 6/1. (Jones/Schreiber)

H.B. 1320 (Rep. Jahn, Sen. Veiga): “Concerning Conditions for Allowing Credit for Reinsurance”. Despite the ominous title, this bill is considered non-controversial by its proponents (including the American Insurance Association). It is the NAIC model for credit for reinsurance. SIGNED BY THE GOVERNOR 5/25. (Bode/Stubbs/Garlick)

H.B. 1342 (Rep. Pommer, Sen. Gordon): “Concerning Private Toll Roads and Toll Highways, and in connection therewith, Specifying Requirements that Must be Met Before a Corporation can Construct a Private Toll Road or Toll Highway.” Among other requirements, the corporation formed to build a toll road would have to notify each person who owns real property within the route specified in the certificate of incorporation of the intent of the corporation to construct a toll road, and, if applicable, to acquire the person’s real property. LTAC obtained an amendment to also require that such notices be recorded in the appropriate county clerk’s office. VETOED BY THE GOVERNOR 6/6. (Lusetti/Evans/Stubbs)

2004 Legislation Final

To: Land Title Association of Colorado
From: Cathy Wanstrath, LTAC lobbyist
Subject: Legislation of Interest to LTAC (Names in parentheses are Legislative Committee members assigned to review the bill.)
Date: June 8, 2005 FINAL REPORT FOR SESSION--corrected version


S.B. 100 (Sen. Hagedorn, Rep. M. Carroll): “Concerning Increased Protection for Homeowners”. This bill places limits on homeowner associations, including prohibiting the association from having a rule against displaying an American flag or other patriotic symbols. Some other portions of the bill are more relevant to the title industry. Requires the buyer of a home in a HOA community to receive notice and documentation regarding the ability of the HOA to place a lien on the property for unpaid assessments, and an up-to-date accounting of the HOA’s financial condition. The final version of the bill continues present law which requires the HOA to furnish information on unpaid assessments, within 14 days after receipt of a written request, to a unit owner, holder of a security interest, or their designees. (Until conference committee, title insurance entities were specifically listed along with unit owners and holders of security interests, but in the end they deleted that entire section, thus returning to present law.) Generally exempts time-sharing properties from provisions of the bill. SIGNED BY THE GOVERNOR 6/6. (Anderson/Condie)

S.B. 137 (Sen. Grossman, Rep. Paccione): “Concerning Identity Theft”. Permits a consumer to put a security freeze on his/her credit report. Allows the consumer to temporarily lift the freeze to allow a particular entity access to the credit report for the purpose of extending credit to the consumer. SIGNED BY THE GOVERNOR 6/1. (Condie/Jones)

S.B. 230 (Sen. Wiens, Rep. McKinley): “Concerning Private Toll Roads, and…Prohibiting a Private Corporation from Acquiring Rights-of-Way for a Toll Road…Through the Exercise of Eminent Domain and Requiring the Transportation Legislation Review Committee to Recommend a Process by which a Private Toll Road…May be Constructed.” Prohibits a private corporation from using eminent domain to acquire property for a private toll road. Encourages the Transportation Legislation Review Committee, meeting during the summer/fall interim, to study laws that allow the construction of private toll roads, and make recommendations for the 2006 legislative session. VETOED BY THE GOVERNOR 6/6. (Stubbs/Evans/Lusetti)

H.B. 1007 (Rep. Garcia, Sen. Sandoval): “Concerning the Regulation of Notaries Public, and in connection therewith, Requiring Applicants to Obtain Training Prior to Appointment or Reappointment as a Notary Public and Requiring Notaries Public to Keep a Journal of all Notarial Acts.” On and after 1/1/06, requires all notaries public to take a course of instruction approved by the Secretary of State and pass an exam on the material covered by the course, prior to appointment or reappointment. Requires a notary public to keep a journal of “every notarial act”, not just those “affecting the title to real property”. LTAC successfully worked to pass an amendment to require education prior to getting the notary commission only (not prior to each renewal.) The industry already has an exemption from the journal portion of the notary law. We were successful in returning the bill to the version that passed the House. VETOED BY THE GOVERNOR 4/28. (Compton/Evans)

H.B. 1032 (Rep. Rose): “Concerning Modifications to a Planned Unit Development for Land Set Aside for Governmental Purposes”. This bill authorizes a governmental entity holding legal title to land located within a planned unit development (PUD) to subdivide all or any portion of the land; remove or release all or any portion of the land from use limitations specified in the plan; or sell or otherwise dispose of all or any portion of the land. The county or municipality in which the land is located must approve the action, and there must be a public hearing. This may provide local governments with increased flexibility and the potential to reap increased economic benefits related to land within a PUD. SIGNED BY THE GOVERNOR 6/1. (Anderson/Howe)

H.B. 1058 (Rep. Liston, Sen. McElhany): “Concerning Basic Rights for Mobile Home Owners who Lease Space in Mobile Home Parks”. Most of this bill relates to management issues between the owner of the park and owners of mobile homes, and is not relevant to title insurance. The bill requires a landlord of a mobile home park to give notice to the mobile home owners if the landlord intends to sell the land to a buyer who intends to change the use of the land comprising the park. (Bode/Sutherland) SIGNED BY THE GOVERNOR 4/5.

H.B. 1156 (Rep. Riesberg, Sen. Grossman): “Concerning Notification Requirements Applicable to the Determination of a Water Right”. Directs the water clerk to make the resume of water adjudication applications available on the internet rather than to mail the resumes. Requires applicants, rather than the water clerk, to notify potentially affected landowners of the application. (Bregman/Compton) SIGNED BY THE GOVERNOR 4/5.

H.B. 1159 (Rep. Crane, Sen. Hanna): “Concerning the Sale of Tax Liens by a County Treasurer”. States that a tax lien sale conducted by a county treasurer on the internet satisfies the requirement that the sale be held at a location in the county. States that the purchase price of a tax lien may be paid with a financial instrument approved by the county treasurer (current law says “cash”). The impetus for this bill is the Jefferson County Treasurer, who last year conducted a tax lien sale via internet, and some questions about legality of this approach were raised. (Rice/Evans) SIGNED BY THE GOVERNOR 6/3.

H.B. 1168 (Rep. Garcia, Sen. Kester): “Concerning Administrative Matters Related to a Foreclosure Proceeding.” The public trustees are behind this bill, and they have worked with the Colorado Bar Association. They consider it “clean-up” of several details in the foreclosure statute. Apparently there are numerous instances of foreclosure actions left “hanging”, with the public trustees’ requests to lawyers involved to cancel them ignored. The public trustees want to clear these actions from their books. LTAC worked with the Bar Assn. and the public trustees on section 3 of the amended bill (dealing with cancellation of foreclosure sales). This section was deleted. SIGNED BY THE GOVERNOR 4/27. (Howe, Lusetti)

H.B. 1192 (Rep. Soper, Sen. Spence): “Concerning a Requirement that a Local Government BE NOTIFIED OF the Termination of Certain Planned Communities.” Prohibits a planned community that is required to exist pursuant to a development or site plan from terminating unless the termination agreement is approved by the governing body of every municipality in which a portion of it is situated, or if in an unincorporated area, the county commissioners for every county in which a portion of it is situated. Such termination agreement is effective only upon recordation in each county in which a portion of the planned community is situated. Amended to only require notification of the local government, not approval. (Edgar/Longo) SIGNED BY THE GOVERNOR 6/3.

H.B. 1195 (Rep. Kerr, Sen. Keller): “Concerning a Requirement that a Deed Convey any Interest Held by the Grantor in Certain Vacated Rights-of-Way Adjoining the Subject Real Property”. This attempts to deal with the problem of vacated alleys or streets that are considered by adjacent property owners as part of their property but have never actually been joined to their property. It specifies that every deed shall be a conveyance of the grantor’s interest, if any, in any vacated street, alley or other right-of-way that adjoins the subject real property unless the transfer of such interest is expressly excluded in the deed. Everyone involved says this will have no practical effect on assessments until the next property tax year, although it was amended to have a ‘safety clause’, which means ‘effective on signature’. SIGNED BY THE GOVERNOR 4/27. (Rosenthal/Cranmer)

H.B. 1264 (Rep. Buescher, Sen. Tapia): “Concerning the Repeal of the Real Estate Recovery Fund”. This bill would eliminate the Real Estate Recovery Fund, and prohibits claims unless civil action is initiated no later than 30 days after the effective date of this act. This is a bill sponsored by the Joint Budget Committee. The Colorado Association of Realtors has no objection to this bill. SIGNED BY THE GOVERNOR 5/27. (Anderson/Rice)

H.B. 1304 (Rep. Hodge, Sen. Tochtrop): “Concerning a Prohibition on Discrimination Restricting Consumer Choices in Housing Construction Alternatives.” Prohibits any local government from enacting any ordinance or other legal requirement that has the effect, directly or indirectly, of discriminating against consumers’ choices in the placement or use of a home in such a manner that the ordinance or legal requirement is not equally applicable to all homes. Specifies that nothing in the act shall be construed as overriding any legally recorded covenants or deed restrictions of record. VETOED BY THE GOVERNOR 6/1. (Jones/Schreiber)

H.B. 1320 (Rep. Jahn, Sen. Veiga): “Concerning Conditions for Allowing Credit for Reinsurance”. Despite the ominous title, this bill is considered non-controversial by its proponents (including the American Insurance Association). It is the NAIC model for credit for reinsurance. SIGNED BY THE GOVERNOR 5/25. (Bode/Stubbs/Garlick)

H.B. 1342 (Rep. Pommer, Sen. Gordon): “Concerning Private Toll Roads and Toll Highways, and in connection therewith, Specifying Requirements that Must be Met Before a Corporation can Construct a Private Toll Road or Toll Highway.” Among other requirements, the corporation formed to build a toll road would have to notify each person who owns real property within the route specified in the certificate of incorporation of the intent of the corporation to construct a toll road, and, if applicable, to acquire the person’s real property. LTAC obtained an amendment to also require that such notices be recorded in the appropriate county clerk’s office. VETOED BY THE GOVERNOR 6/6. (Lusetti/Evans/Stubbs)

2003 Legislation Final

To: Land Title Association of Colorado
From: Cathy Walsh, LTAC lobbyist
Subject: Legislation of Interest to LTAC ---FINAL REPORT
Date: June 9, 2003


S.B. 42 (Sen. Takis, Rep. McCluskey): "Concerning the One Dollar Surcharge on Filings Received by a County Clerk and Recorder as an Authorized Agent for the Executive Director of the Department of Revenue". Last September clerks began collecting a $1 surcharge on all filings, with half kept in the county and half paid to the Secretary of State's office (Electronic Technology Fund), all for the purpose of upgrading electronic filing capabilities in the counties. This bill says that surcharge does not apply when the clerk is acting as an authorized agent of the executive director of the Department of Revenue (motor vehicle filings). SIGNED BY THE GOVERNOR 4/17 (Mike Cranmer, Diane Evans)

S.B. 59 (Sen. Taylor, Rep. White): "Concerning the Recreation of the Division of Insurance within the Department of Regulatory Agencies…" This is the sunset continuation of the Division that was killed last session. SIGNED BY THE GOVERNOR 3/18. (Gail Bode, Robert Howe)

S.B. 67 (Sen. Johnson, Rep. Stengel): "Concerning Procedures to be followed by County Governments in Connection with the Merging of Parcels of Land". Requires that when a county merges parcels of land for purposes of eliminating interior lot lines, obsolete subdivisions, or otherwise, the county must provide notice to the owners of each affected parcel and allow them to request a hearing on the proposed merger. Any merger must be approved by the owners and by a majority of the county commissioners. Following a merger, the merged parcels shall be assessed for taxes as one parcel, and notice of the merger must be filed with the county clerk in the county where the merged parcels are located. PASSED THE SENATE. LTAC OBTAINED A MINOR CLARIFYING AMENDMENT, in italics above. SIGNED BY THE GOVERNOR 4/17. (Chuck Borgman, Mike Cranmer)

S.B. 70 (Sen. Lamborn, Rep. McCluskey): "Concerning Payment Procedures for a Public Works Construction Project, and, in connection therewith, Creating Requirements for Contractors' Bonds that are Consistent with Existing Mechanics' Liens Requirements Applicable to Private Projects". In connection with payment procedures for a public works construction project, creates provisions addressing funds disbursed to a contractor to be held in trust, and excessive amounts claimed, that mirror existing provisions for general mechanics' liens applicable to private projects. SIGNED BY THE GOVERNOR 5/15. (Joe Edgar, Dave Lusetti)

S.B. 78 (Sen. McElhany, Rep. T. Williams): "Concerning Regulation of Insurance by the Insurance Commissioner". This bill was amended to be ONLY about auto insurance, in an attempt to craft some sort of no-fault bill this session. The State will end up with a tort system as of July 1 since this bill failed. LOST 5/7/03. (Chris Condie, Garry Wolff)

S.B. 133(Sen. Dyer, Rep. Stengel): "Concerning Civil Forfeiture in Title 16, CRS". Sections 16 through 18 clarify title issues after a court orders forfeiture. Permits the sheriff to sell the forfeited property at auction or in another commercially reasonable manner. Allows the property to be sold subject to liens (bankers obtained an amendment to this). Eliminates the requirement that notices of seizure be filed for every item seized. Maintains notice requirements for real property and motor vehicles. LTAC worked with lenders and the District Attorneys on an amendment stating that seizure of real property must be recorded in the county clerks' offices, and title shall vest in the seizing agency only upon such recordation, or upon prior actual notice of seizure. SIGNED BY THE GOVERNOR 4/7. (Mark Budzinski, Rich Jones)

S.B. 230 (Sen. May, Rep. Fritz): "Concerning an Authorization for the Secretary of State to Promulgate Rules Pursuant to the Uniform Electronic Signatures Act". This is a followup to last year's bill, but it deletes the role of the Office of Innovation and Technology (Governor's Office). The Secretary of State will oversee rulemaking on use of electronic records and signatures. SIGNED BY THE GOVERNOR 6/5. Amended to have an effective date of 1-1-2004. (Cranmer, Evans)

S.B. 234 (Sen. Kester, Rep. Hall): "Concerning the Date that Refund Interest Begins to Accrue where Property Tax was Erroneously Levied as a Result of an Error by the Taxpayer in Completing Statements Relating to Oil and Gas Property." Changes the date upon which refund interest begins to accrue from the date that the property tax and delinquent interest are received by the treasurer to the date a complete abatement petition is filed by the taxpayer. SIGNED BY THE GOVERNOR 4/7. (Bode, Condie)

S.B. 244 (Sen. Cairns, Rep. Schultheis): "Concerning an Exemption for All Business Personal Property". Exempts business personal property acquired or first used on and after January 1, 2003 from property tax. (Very similar to H.B. 1309, which was killed.) LOST 5/7/03. (Edgar, Evans)

S.B. 245 (Sen. Groff, Rep. Hefley): "Concerning the Protection of an Innocent Spouse from Debts Incurred by the Other Spouse after the Initiation of Domestic Relations Proceedings". Prohibits the collection of debt against the spouse of a debtor unless the lender, before extending joint credit to a married person, has disclosed to the spouse the terms of the debt and the legal limitations that apply to the use of joint credit upon the filing of a petition for divorce or separation. An amendment offered by the lenders was passed in House committee, rewriting the bill. The proposed change would require that notice be given at the time a marriage license is obtained, and at the time of filing for divorce or separation, that informs the parties of current law regarding spouses' legal obligations for their joint debts. The sponsors indicate their intention to run a version of this bill next session. POSTPONED INDEFINITELY (ON TIE VOTE IN COMMITTEE).

S.B. 251 (Sen. Hagedorn, Rep. Mitchell): "Concerning a Prohibition on the Use by Local Governments of Amortization to Eliminate Nonconforming Uses of Property". This bill is in reaction to the City of Aurora "amortizing" numerous business properties (gas stations, mobile home parks, etc.) in the Fitzsimmons Redevelopment area. The businesses were to be given 10 years to close, if they were considered not an asset to the new biomedical campus environment. (However, the City of Aurora later changed its approach to the problem.) This legislation states a property right basis for preventing local governments from taking such action, except for adult-only entertainment venues. SIGNED BY THE GOVERNOR 6/6. (Cranmer, Garlick)

S.B. 265 (Sen. Teck, Rep. Young): "Concerning the Property Tax Exemption for Qualifying Seniors, and, in connection therewith, Lowering the Maximum Amount of Actual Value of the Primary Owner-Occupied Residence of a Qualifying Senior that is Partly Exempt from Property Taxation…" This bill eliminates the senior property tax exemption for property tax years 2003, 2004 and 2005. It was a key part of the State's budget balancing effort. (Note: This bill was not INTRODUCED until 3/28.) SIGNED BY THE GOVERNOR 5/1.

H.B. 1046 (Rep. Madden, Sen. Hillman): "Concerning the Creation of a Conservation Easement in Gross Through a Reservation". Specifies that a conservation easement in gross may be created through a reservation by a governmental entity or a charitable organization. SIGNED BY THE GOVERNOR 4/17. Unamended. (Rick Garlick, Robert Howe)

H.B. 1077 (Rep. May, Sen. Evans): "Concerning the Establishment of a Process for the Resolution of Disputes Among Local Governments Arising out of a Petition for Annexation of Land that is Located within the Boundaries of a Development Plan Entered into by Local Governments through Intergovernmental Agreements". This bill requires prior notice to neighboring jurisdictions when a municipality plans an annexation into an area that is a part of a development plan entered into among jurisdictions. It requires the parties attempt to solve their differences by mediation coordinated by the State Department of Local Affairs. SIGNED BY THE GOVERNOR 4/9. (George Sutherland, Chuck Borgman)

H.B. 1086 (Rep. King, Sen. McElhany): "Concerning Beneficiary Deeds". This is a transfer on death proposal. The Colorado Bar Association and LTAC worked with the sponsor on a rewrite, but the bill still had numerous problems. The concept is to "create the beneficiary deed as an alternative to a will to make a real property conveyance effective on the death of the grantor owner." The state Department of Health Care Policy and Financing, which oversees Medicaid, has intervened in the bill to insist on a priority position for the department, which recovers assets from some Medicaid recipients' estates after the recipients' deaths. LTAC met with the sponsors, along with the Colorado Bar Association and the Dept. of Health Care Policy & Financing, to negotiate a solution, which has not been possible. This bill is likely to be re-introduced in different form next session. POSTPONED INDEFINITELY 5/7/03. (Bo Edwards, Garry Wolff)

H.B. 1124 (Rep. Lundberg, Sen. Jones): "Concerning a Modification to the Definition of the Term 'Expenditure' for Purposes of the Local Government Budget Law of Colorado to Exclude the Payment of Moneys Received from and Required to be Paid to Another Person by the Office of the Public Trustee". Public trustees don't want "pass-through" money to be counted as an expenditure of their office. Examples are publication costs for foreclosures; also the $6 recording fee which they send on to the county clerk, for releases of deeds of trust. If their expenditures include this "pass-through" money, it affects the amount of their required reserves. SIGNED BY THE GOVERNOR 3/21. (Dave Lusetti, Phil Schreiber)

H.B. 1161 (Rep. Rippy, Sen. McElhany): "Concerning Limitations on Claims for Damages Filed Against Construction Professionals". Repeals and reenacts the "Construction Defect Action Reform Act" (CDARA). Places various conditions and restrictions on suits against a construction professional. Requires notice to the construction professional at least 75 days before filing an action claiming construction defects (90 days for commercial properties). Amended to NOT apply to claims against contractors by state or local governments. Also amended to limit treble damages against contractors to no more than $250,000 including attorney fees. SIGNED BY THE GOVERNOR 4/25. (Mike Cranmer, Pat Rice)

H.B. 1194 (Rep. White, Sen. Kester): THIS IS AN LTAC-INITIATED BILL. "Concerning Real Property Instruments Filed with a County Clerk and Recorder". This bill clarifies that minor name variances (e.g. middle initial on one document, no middle initial on another document related to the same property) are assumed to be irrelevant, and in fact are presumed to refer to the same person. The bill also provides for filing an affidavit with the county clerk to clarify certain other facts that otherwise would require formal court proceedings and the attendant expense. Unamended. SIGNED BY THE GOVERNOR 4/1; EFFECTIVE 90 DAYS AFTER END OF SESSION, WHICH IS AUGUST 6. (Rice, Evans)

H.B. 1224 (Rep. Lee, Sen. Andrews): "Concerning a Prohibition against the Acceptance by Public Entities of Identity Documents that are not Secure". Prohibits a public entity from accepting, relying upon or utilizing an identification document unless the document is secure and verifiable (i.e., issued by a state or the federal government). This is an attempt to prevent use of ID cards issued by the Mexican Consulate. SIGNED BY THE GOVERNOR 5/22. (Garlick, Schreiber)

H.B. 1257 (Rep. Marshall, Sen. Lamborn): "Concerning a Nonsubstantive Recodification of Colorado's Banking Laws". SIGNED BY THE GOVERNOR 4/17. (Sutherland, Wolff)

H.B. 1272 (Rep. Jahn, Sen. Kester): "Concerning a Prohibition against Recording Certain Information when Accepting a Negotiable Instrument as Payment". Prohibits a person from recording a social security number or credit card number when accepting a check. Clarifies that a person may ask for a credit card when cashing a check, but may not record more than the type and issuer of the card. SIGNED BY THE GOVERNOR 4/22. (Condie, Lusetti)

H.B. 1281 (Rep. Cloer, Sen. Evans): "Concerning the Eligibility of a Taxpayer who is a Person with a Disability to Participate in a Property Tax Work-off Program." This is an extension of the existing program for senior citizens. SIGNED BY THE GOVERNOR 4/1. (Bode, Edwards)

H.B. 1298 (Rep. Harvey, Sen. Lamborn): "Concerning Increased Limitations on Claims Asserting that a Mortgage is Unconscionable". (Initiated by the Colorado Mortgage Lenders Assn.; AMENDED.) In order to support a court's finding of unconscionability regarding terms of a mortgage, specifies that inequality of bargaining power must be "unreasonable"; and contract terms that are unreasonably favorable to the broker, mortgage originator or lender must be analyzed pursuant to "standard industry practices". No claim of unconscionability can be asserted against a bona fide purchaser, or against a public trustee in a foreclosure action. SIGNED BY THE GOVERNOR 4/29. (Borgman, Edgar)

H.B. 1302 (Rep. Rippy, Sen. Kester): "Concerning Clarification of the Applicability of Statutory Provisions that Enacted Certain Notification Requirements Affecting only those Applications for Development Filed on or after July 1, 200l." Clarifies that H.B. 01-1088, regarding notice by developers to mineral owners, was intended to apply ONLY to applications for development filed on or after July 1, 200l (the effective date of that bill), and not to applications that were pending as of that date. There is a wind-farm development that needs this clarification for their bond house. SIGNED BY THE GOVERNOR 2/26. (Schreiber, Lusetti)

H.B. 1311 (Rep. Hefley): "Concerning an Exclusion of Arrangements for Fixed Lease Payments from the Definition of Security". Excludes from the definition of a "security" an arrangement whereby capital that has been sold is leased back solely in exchange for a contractually fixed and guaranteed rate of return without any possibility of participation in risk, capital appreciation or earnings. LAID OVER TO 5/8 (KILLED). (Howe, Rice)

H.B. 1332 (Rep. May, Sen. Phillips): "Concerning the Adjustment of the Ratio of Valuation for Assessment for Residential Real Property". Sets the ratio of valuation for assessment for residential real property for the 2003 and 2004 property tax years at a specified percentage of actual value (amended to 7.96%). SIGNED BY THE GOVERNOR 5/22. (Bode, Lusetti)

H.B. 1339 (Rep. Harvey, Sen. McElhany): "Concerning the Funding of Real Estate Commission Programs Relating to the Conduct of Real Estate Licensees." Repeals a requirement that the errors and omissions insurance coverage offered by the Real Estate Commission to licensees cost less than $100/year, since it is not available at that cost anymore. SIGNED BY THE GOVERNOR 5/22. (Borgman, Edwards)

H.B. 1342 (Rep. Coleman, Sen. Johnson): "Concerning Fees that Support the Colorado State Titling and Registration System". This bill changes some Department of Revenue fees related to manufactured homes and lien releases. SIGNED BY THE GOVERNOR 5/22. (Schreiber, Wolff)

2002 Legislation Final

To: Land Title Association of Colorado
From: Cathy Walsh, LTAC lobbyist
Subject: Legislation of Interest to LTAC
Date: June 10, 2002-final action

S.B. 97 (Sen. Tate, Rep. Romanoff): "Concerning the Modification of State Housing Authority Law to Make the Statutory Provisions Governing All Housing Authorities Consistent with the Provisions Governing City Housing Authorities." Provides that the property of a county or multijurisdictional housing authority shall be exempt from taxes and special assessments on the same basis and subject to the same conditions as provided for city housing authorities. NOTE: TITLE WAS LIMITED BY AMENDMENT. SIGNED BY THE GOVERNOR 6/7.

S.B. 161 (Sen. Perlmutter, Rep. Smith): "Concerning the Modification of Procedures for the Foreclosure of Deeds of Trust". This is the multi-year effort from the Colorado Bar Association and the Public Trustees Association. Permits certain specified entities, as owners of the evidence of debt, to provide the public trustee, in lieu of the original evidence of debt, a copy of the evidence of debt together with required certification as to the owner's status. The owner that elects to foreclose without the original evidence of debt shall be deemed to have agreed to indemnify any person liable for repayment of the debt and any person who sustains a loss due to a title defect resulting from such foreclosure sale. House floor amendments clarify the redemption period when a bankruptcy is involved as well as foreclosure, and also clarify that nothing in this statute precludes other remedies under law for the property owner. LTAC added an amendment dealing with accuracy of payoff quotes. SIGNED BY THE GOVERNOR 6/7.

S.B. 196 (Sen. Perlmutter, Rep. Spradley): "Concerning Real Estate Brokers who are Engaged by Members of the Public". Prohibits dual agency and subagency real estate brokerage relationships. (A transaction broker is not a dual agent.) Clarifies that a member of the public is not responsible for actions of a broker that are not authorized by them. A contract with a broker does not extend that relationship to others within that company. SIGNED BY THE GOVERNOR 6/1.

S.B. 209 (Sen. Phillips, Rep. Scott): "Concerning the Establishment by Local Governments of Programs for the Transfer of Development Rights". Authorizes local governments to establish a transfer of development rights program, either within the local government boundaries, or, via intergovernmental agreement, outside such boundaries. Defines "sending areas" and "receiving areas". LOST ON SENATE FLOOR (technically "laid over to May 9").

S.B. 226 (Sen. Hernandez): "Concerning the Regulation of Mortgage Originators". Another last minute bill. In opposition to the "sunrise" report from the Department of Regulatory Agencies, this industry seeks state licensure. The DORA report did not dispute that there are problems with mortgage originators, but it determined that licensure was not the solution. Key provision: "A mortgage originator shall provide evidence of licensure to a title company prior to a closing on any mortgage loan in this state." LOST DUE TO LACK OF TIME ("incomplete action").

S.B. 230 (Sen. Windels, Rep. Mitchell): "Concerning the Designation of the County in which Specified Actions Related to the Activities of a Public Trustee May Occur". This bill is necessary because of the creation of the new county of Broomfield. The bill specifies that the public trustee of the county in which the property was located at the time of executing documents or performing other acts required of a public trustee, or at the time the deed of trust was recorded, is the proper public trustee to issue documents, and that all such documents may be recorded in either of these counties. SIGNED BY THE GOVERNOR 6/1.

H.B. 1014 (Rep. Smith, Sen. Fitz-Gerald): "Concerning the Removal by the Secretary of State of Identification Numbers from Financing Statements Filed before July 1, 2001..." Requires the Secretary of State to remove the social security numbers from publicly accessible electronic copies of all financing statements in her custody that were filed before July 1, 2001, pursuant to repealed provisions of Article 9 of the UCC. This action does not render a financing statement ineffective. SIGNED BY THE GOVERNOR 5/28.

H.B. 1119 (Rep. Berry, Sen. Takis): "Concerning Electronic Documents". This bill gives clerks the authority they need to accept, maintain and work with electronic documents. Requires a clerk to collect a $1 surcharge for each electronic filing received until July 1, 2009, of which half shall be credited to the clerk and recorder electronic filing technology fund. Creates a "notary token" which empowers notaries to attest electronic records, without use of a seal. LTAC worked with the clerks and Rep. Berry on issues of chronological filing and fees. As amended, clerks agree to record electronic documents the same day received, if it is a business day and the document is received by 3 p.m. The bill was also amended to clarify that the 50 cents of each filing fee that stays in the county must be used to pay for improvements needed for electronic filing. An amendment passed to make the fee apply to all recorded documents, with a 2005 termination of the fee. Amended to remove reference to notary tokens. SIGNED BY THE GOVERNOR 5/30.

H.B. 1139 (Rep. Crane, Sen. Cairns): "Concerning Protections for Persons on State Military Duty". Establishes relief in civil matters for persons called to state military duty for more than 30 days. Permits a court to stay proceedings to enforce mortgage obligations or other securities on property against such persons for the duration of the period of service and for 30 days thereafter or to otherwise dispose of the case as may be equitable to conserve the interests of the parties. Invalidates the sale, foreclosure or seizure of property for nonpayment if made during the service or duty or within 30 days thereafter, unless the court previously granted an order. The person requesting such a stay must furnish his/her orders to the court and to any other affected parties. SIGNED BY THE GOVERNOR 5/29.

H.B. 1147 (Rep. Cloer, Sen. Hagedorn): "Concerning Public Information Requirements". This bill has been completely rewritten, and includes 97 pages of unrelated topics under this broad title. (Includes numerous changes regarding business filings with the secretary of state). SIGNED BY THE GOVERNOR 6/7.

H.B. 1191 (Rep. Decker, Sen. Windels): "Concerning the Colorado Common Interest Ownership Act". Allows court approved amendments to the declaration of preexisting common interest communities, notwithstanding any limitation in the governing instruments. Clarifies what matters can be discussed in executive session of association officers. Eliminates conflicting statutory language relating to conveyance of common elements. SIGNED BY THE GOVERNOR 5/30.

H.B. 1258 (Rep. Marshall, Sen. Anderson): "Concerning Increased Protections for Victims of Identity Theft, and in connection therewith, Prohibiting the Processing of Credit Report Entries that are Based on Identity Theft and Expediting Judicial Determinations Concerning Identity Theft". Requires credit bureaus to block credit information that appears on a credit report due to identity theft when a consumer files either a police report alleging identity theft or a certified court order with the reporting agency. Allows a sentencing court to order records to be corrected when a person's identity or financial records have been used in connection with a crime. SIGNED BY THE GOVERNOR 5/6.

H.B. 1259 (Rep. Marshall, Sen. Tate): "Concerning Protection of Consumers' Home Ownership Equity". Creates additional protections regarding covered loans, including limitations on balloon payments, accelerations of indebtedness, negative amortization, increased interest rates after default, mandatory arbitration clauses, prepayment penalties, the use of loan proceeds to pay home improvement contractors, financing of credit insurance, recommendations to default on existing loans, and charging a fee for providing a credit balance. Preempts local law attempting to regulate lending activities subject to the act. SIGNED BY THE GOVERNOR 6/7.

H.B. 1326 (Rep. Scott, Sen. FitzGerald): "Concerning Adoption of the Uniform Electronic Transactions Act". The bill enacts the Uniform Electronic Transactions Act (UETA) to govern transactions between parties that have agreed to conduct business by electronic means. The bill requires that electronic transactions conform with the legal requirements for other transactions where necessary, but also specifies that an electronic record or signature satisfies the legal requirement for a written record or signature. The bill requires the Secretary of State to determine whether and the extent to which the State will create, retain, send and accept electronic records. An amendment provides for contributions from businesses to pay for the costs to be incurred by the Secretary of State's Office ($200,000). If adequate contributions are not received by 12/1/02, the Secretary of State will not have the staff to establish rules for electronic commerce, but the bill will function as authorization for business-to-business e-commerce. SIGNED BY THE GOVERNOR 5/30.

H.B. 1357 (Rep. Rippy, Sen. Isgar): "Concerning Modification of the Requirements Relating to Notification of Surface Development to Owners of Severed Mineral Estates". This bill adds certified professional landmen to the list of those who can prepare reports on mineral ownership. It exempts utility transmission lines from the definition of developments that fall under the notification law. It also clarifies that if a developer files more than one application for development with a local government for the same new surface development, only one notification to each mineral owner is required (for the INITIAL public hearing for the first development). Amended to exclude zoning and rezoning, applications for change of use for an existing structure, boundary adjustments, and applications for a lot site plan from the list of processes that require mineral owner notification. SIGNED BY THE GOVERNOR 5/30.

H.B. 1404 (Rep. Mitchell, Sen. Thiebaut): "Concerning Civil Forfeiture". This bill relates to the seizure by law enforcement of property allegedly involved in a crime. Defines "innocent owner" with respect to an ownership interest at the time of the criminal act and ownership interest acquired after the criminal act. LTAC successfully requested amendments regarding notice being recorded in the county clerk's office when the court orders a forfeiture. SIGNED BY THE GOVERNOR 5/31.

H.B. 1416 (Rep. Johnson, Sen. Matsunaka): "Concerning Procedures to be Followed by County Governments in Connection with the Merging of Parcels of Land". When a county merges 2 or more parcels of land (e.g., for the purpose of eliminating an obsolete subdivision), requires notice to the owners and the option for a hearing on the matter. This has been a problem in Boulder and two other counties. LTAC obtained an amendment to require any such changes to be recorded in the office of the county clerk and recorder, following approval of the merger by the county commissioners. The bill was amended to provide that the owners of the parcels must agree to the merger. LOST (technically "laid over to May 9").

H.B. 1456 (Rep. T. Williams, Sen. Tate): "Concerning Statutory Provisions Governing Business Entities Contained in Title 7 of the Colorado Revised Statutes, and Making an Appropriation Therefor". Cleans up and standardizes language throughout Title 7 (corporations, associations, partnerships). Makes provision for electronic filing of corporate documents. SIGNED BY THE GOVERNOR 6/7.

H.B. 1458 (Rep. Scott, Sen. Hillman): "Concerning a Prohibition Against the Sale of Electronic Signatures by Government Entities". This bill was introduced when it was revealed in the press that the open records law essentially forced Boulder County to sell a tape of signatures from their voter files to a citizen who sought them. The bill, as amended, prohibits the release of electronic files of voter registration signatures, except among government agencies that need them. SIGNED BY THE GOVERNOR 6/7.

H.B. 1459 (Rep. Grossman, Sen. Owen): "Concerning Federal Requirements for the Performance of Non-Firearms-Related Criminal History Record Checks." Among other provisions, requires insurance company executive officers and directors to submit a set of fingerprints to the Commissioner, who will forward them to the Colorado Bureau of Investigation. This is in compliance with federal law that had been interpreted inaccurately in the past by some state agencies. The provision about lawyers (Section 4) was deleted. SIGNED BY THE GOVERNOR 6/1.

H.B. 1465 (Rep. Scott, Sen. Phillips): "Concerning the Division of Special Districts into Subdistricts". Clarifies that a special district can have subdivisions, which can tax only the persons within that subdistrict. The total debt of the special district and all its subdistricts cannot exceed the debt limits specified in the service plan of the special district. SIGNED BY THE GOVERNOR 6/7.

2001 Legislation Final

To: Land Title Association of Colorado
From: Cathy Walsh, LTAC lobbyist
Subject: Legislation of Interest to LTAC- FINAL REPORT FOR 2001
Date: June 8, 2001

S.B. 27 (Sen. Nichol, Rep. Larson): "Concerning the Requirement that an Owner of a Consumer Credit Transaction Secured by Residential Real Property Give Notice to Each Person Liable on the Loan that the Owner Intends to Foreclose on the Deed of Trust Prior to the Commencement of Foreclosure Proceedings". Requires an owner of a residential loan that is secured by a deed of trust to comply with the notice provisions of the Uniform Consumer Credit Code before the commencement of foreclosure proceedings. This bill attempts to address a situation where a co-signor on a residential loan was not notified when the property was foreclosed. SIGNED BY THE GOVERNOR 4/20.

S.B. 34 (Sen. Owen, Rep. T. Williams): "Concerning the Regulation of Insurance Producers by the Division of Insurance". This is an omnibus bill that seeks to simplify some provisions of the producer licensing law. SIGNED BY THE GOVERNOR.

S.B. 38 (Sen. McElhany, Rep. Rippy): "Concerning the Authority of Counties to Adopt Subdivision Regulations that Entitle Subdividers to Fair-Share Reimbursement of the Cost of Improvements from Owners of Property that Benefits from the Improvements". This bill allows counties to adopt regulations that require owners of later developed properties to reimburse part of the costs of roads, water and sewer systems, storm drainage and other improvements. The original subdivider could recover these costs for improvements required by the county. Subdivision regulations providing for such reimbursement shall prescribe the period, not to exceed 15 years, during which the subdivider may seek reimbursement from developers of adjacent properties. SIGNED BY THE GOVERNOR 3/29.

S.B. 40 (Sen. Matsunaka, Rep. Smith): "Concerning Notice Requirements for Persons Holding Title to Property in a Representative Capacity". Allows a trustee who holds title to real property on behalf of a trust to give notice of that trustee's representative capacity either before or after the instrument conveying the interest in real property has been recorded. Repeals the prohibition of such notice after an instrument conveying an interest in real property has been recorded. (This bill is intended to overcome the problems which have arisen under 38-30-108 and the recent Lagae V. Lackner case.) SIGNED BY THE GOVERNOR 4/19.

H.B. 1055 (Rep. Snook, Sen. Taylor): "Concerning a Requirement that Title Insurance Companies File Fees with the Commissioner of Insurance". LTAC BILL. Corrects the drafting error in Senate Bill 106 from last session, adding the two words "or fee" where they were left out. Makes it clear that title companies and agents must file new rates and fees with the Commissioner of Insurance. SIGNED BY THE GOVERNOR 3/9, and effective that day.

H.B. 1064 (Rep. Scott, Sen. Phillips): "Concerning Uniform Accounting Principles for Insurers Authorized to Conduct Business within Colorado". Among other provisions, conforms the requirements for title plants to the NAIC's statements of statutory accounting principles (SSAP). SIGNED BY THE GOVERNOR 3/30.

H.B. 1067 (Rep. Rippy, Sen. McElhany): "Concerning Real Estate Broker Licenses, and in connection therewith, Facilitating Electronic Transactions, Eliminating the Requirement that a Designated Broker be an Officer, Director, or Member of a Licensed Entity, and Adjusting Disciplinary Provisions." Eliminates the requirement that a designated broker of a corporation, partnership or LLC be an officer, director and owner of more than a nominal share of the entity. Clarifies when the Real Estate Commission can put a licensee on inactive status. Reduces record-keeping requirements for real estate licensees from 7 to 4 years. SIGNED BY THE GOVERNOR 3/9.

H.B. 1088 (Rep. Rippy, Sen. Dyer-Durango): "Concerning Notifications Regarding Severed Mineral Rights". Requires title companies to provide surface owners with written notice at the time of closing or the issuance of a title commitment that the mineral estate has been severed from the surface estate. If such severance has occurred, requires a "boilerplate" notice to the surface owner that the mineral owner may have "the right to enter and use the property without the surface owner's permission". Requires surface owners to provide mineral estate owners with written notice 30 days prior to the time of any necessary public hearing regarding impending surface development, zoning changes and subdivision. Title agents or companies must disclose the fact of a severance or other conveyance of a mineral right in regard to the sale of a property. Title agents and companies may rely on the records of the county clerk that give constructive evidence of such a severance or conveyance. The bill is effective 7-1-01. Surface owners fulfill their obligation to locate a mineral owner if they check the newly established (VOLUNTARY) mineral owners registry in the clerks' offices, or, if the mineral owner is not registered there, if the surface owner relies on the list of mineral owners provided by a Colorado licensed attorney or licensed title company or title agent. SIGNED BY THE GOVERNOR 4/30.

H.B. 1166 (Rep. Stengel, Sen. Fitz-Gerald): "Concerning Actions Asserting Construction Defect Claims for Property Loss and Damage." Creates the "Colorado Construction Fair Remedy Act". As amended, requires a claimant who brings an action against a construction professional asserting a defect in an improvement to real property to serve the construction professional and the court with a list of construction defects. This list shall be filed within 60 days of the commencement of an action against the construction professional, unless the court grants a longer time period. The intent of the bill is to reduce frivolous lawsuits against home builders. SIGNED BY THE GOVERNOR 4/19.

H.B. 1225 (Rep. Stengel, Sen. Perlmutter): "Concerning Growth Management in Colorado". This bill went through many iterations before the negotiations broke down. Toward the end of the conference committee, agreement had been reached on annexation provisions, and on mandatory master planning to be required in about half the counties (larger and/or fast-growing). It had been agreed that it would take a 2/3 vote of the city council or county commission to change the master plan. The most significant remaining dispute was what development restrictions would exist outside the urban service areas. LOST WHEN THE SENATE ADHERED TO ITS POSITION RATHER THAN ACCEPT THE CONFERENCE COMMITTEE REPORT.

H.B. 1239 (Rep. Stafford, Sen. Taylor): "Concerning the Location in a County in which County Officials May Conduct Business". Authorizes county officials, including clerk and recorders and assessors, to have additional offices outside the county seat, but within the same county. SIGNED BY THE GOVERNOR 5/30.

H.B. 1254 (Rep. Smith, Sen. Teck): "Concerning a Requirement for Notice to Owners of Land Directly Affected by Water Rights Adjudication Applications." Requires water courts to serve written notice on the owners of land directly affected by water rights adjudication. SIGNED BY THE GOVERNOR 4/9.

H.B. 1281 (Rep T. Williams, Sen. Phillips): "Concerning Master Form Instruments for Real Estate". This bill authorizes any person to record a "master form mortgage or dead of trust" in the office of the county clerk. These master forms are indexed by the name of the person recording the instrument. Mortgage documents can then incorporate by reference the master document, and eliminate paperwork that otherwise would have to be filed with the county clerks. SIGNED BY THE GOVERNOR 3/30.

H.B. 1305 (Rep. Smith, Sen. Anderson): "Concerning Enhanced Land Use Planning Relationships Among Local Governments". This bill had been on "standby" for most of the session in case negotiations broke down on the other growth bill. It is much simpler than H.B. 1225. One of its provisions is that master plans cannot be changed more often than once every 2 years, unless the local officials find that it "would benefit the health, safety and welfare of the residents of the county..." PASSED THE HOUSE, BUT NOT CONSIDERED BY THE SENATE.

H.B. 1366 (Rep. Fritz, Sen. Phillips): "Concerning the Adjustment of the Ratio of Valuation for Assessment for Residential Real Property". Sets the ratio of valuation for residential property for 2001 and 2002 property tax years at 9.15% of actual value (amended from 9.35% in the printed bill). (It is currently 9.74%). SIGNED BY THE GOVERNOR 5/31.

H.B. 1393 (Rep. Scott, Sen. Fitz-Gerald): "Concerning the Uniform Electronic Transactions Act". This bill was based on the uniform law which 29 states have passed. There was much support for the bill, including from the County Clerks Association, but it came too late in the session for comfortable evaluation of all implications. This will certainly be back next session. POSTPONED INDEFINITELY IN SENATE BUSINESS AFFAIRS, LABOR AND FINANCE COMMITTEE 5/8.

Note: No legislation passed during the special session on growth.

2000 Legislation Final

House Concurrent Resolution 1001 (Rep. Fairbank, Sen. Anderson): This is an amendment to the Constitution, so would have to go to the voters. It provides that county surveyors will be appointed. At present they are elected, and earlier versions of this resolution left the option of appointed OR elected. WILL BE ON THE NOVEMBER BALLOT.

H.B. 1001 (Rep. Gotlieb, Sen. Reeves) INTERIM COMMITTEE BILL: Requires local planning commissions to conduct public hearings prior to adopting master plans, and suggests additional criteria that may be included in such plans. SIGNED BY THE GOVERNOR 5/24.

H.B. 1008 (Rep. Larson, Sen. Perlmutter) OIL AND GAS INTERIM COMMITTEE BILL: Requires certain information to be provided to surface owners when oil or gas drilling is about to commence on their land. Killed 2/21 at the request of the sponsor because the Oil and Gas Commission has accomplished this by regulation.

H.B. 1059 (Rep. Vigil, Sen. Wham): Allows recipients of property tax statements mailed by a county treasurer 30 days from the date of the mailing to pay their first installment on property taxes without accruing delinquent interest. SIGNED BY THE GOVERNOR 3/10.

H.B. 1088 (Rep. Hagedorn, Sen. Owen): Requires an insurance company to disclose the use of consumer credit scoring to make underwriting decisions before the insurance company can access a consumer's credit report. SIGNED BY THE GOVERNOR 3/17.

H.B. 1089 (Rep. Tapia): Allows a person who performs work on a public works project, when a verified statement of a claim against the contract is filed with the contracting body, to file an ex parte motion with the clerk of the district court where the contract was performed for approval of a corporate surety bond (one and one-half times the claim) to substitute for the claim against the contract. SIGNED BY THE GOVERNOR 3/10.

H.B. 1101 (Rep. George): Creates a local government growth assistance process that authorizes intergovernmental agreements for revenue sharing. The focus is on resort communities/counties and their adjoining "poor cousins", where many workers live and utilize services. Other "growth impacted" counties could also be participants. Allows voters in the wealthier county/city to increase their sales tax to fund the "local growth impact fund". A temporary state sales tax reduction equal to that amount can be authorized, depending on existence of a state surplus. POSTPONED INDEFINITELY 4/18.

H.B. 1145 (Rep Spradley, Sen. Owen): Makes modifications to the tax credit for business personal property tax passed last year. Eliminates the requirement that each qualified taxpayer file a claim for the refund, and instead relies on records kept by county treasurers and forwarded to the State Dept. of Revenue. SIGNED BY THE GOVERNOR 5/23.

H.B. 1169 (Rep. Swenson, Sen. Arnold): Requires every order of conviction for a felony, misdemeanor, or petty offense (except misdemeanor traffic offenses issued by a municipal or county court) to include an order for restitution or a specific finding that there is no victim with a pecuniary loss. Restitution orders will operate as a lien on all real and personal property. LTAC REQUESTED AND GOT AN AMENDMENT TO CLARIFY THAT A REAL PROPERTY LIEN MUST BE RECORDED WITH THE COUNTY CLERK/RECORDER BEFORE IT IS VALID. Further amendment says a lien is good only for 20 years, unless renewed. SIGNED BY THE GOVERNOR 5/26.

H.B. 1223 (Rep. Smith, Sen. Anderson): Authorizes the Department of Local Affairs to award planning grants to designated counties to address critical planning issues. Strengthens county and municipality authority in the planning and annexation processes. PASSED THE HOUSE, amended to include various requirements for master plans, including a requirement that the master plan of a county or region contain an urban service area map that identifies its urban service area. The amendments only apply to cities with more than 2500 permanent residents and counties of more than 10,000 residents. Amended in Senate Local Government to eliminate mandatory elements. POSTPONED INDEFINITELY in Senate Ag Committee.

H.B. 1271 (Rep. Mitchell, Sen. Anderson): Authorizes a special district to divide the district into areas for the purpose of providing services, programs and facilities within the areas. The special district board has the authority to levy property taxes within an area to pay the costs associated with the services, programs or facilities furnished within the area. SIGNED BY THE GOVERNOR 4/24.

H.B. 1329 (Rep. Scott): Uniform Electronic Transactions Act. Enacts the "Uniform Electronic Transactions Act"--UETA--(submitted to state legislatures by the National Commissioners of Uniform State Laws) to govern electronic records and electronic signatures relating to specified transactions. The act only applies to transactions between parties that have agreed to conduct transactions by electronic means. Conforms existing law governing electronic signatures and electronic transactions. POSTPONED INDEFINITELY 3/10.


H.B. 1427 (Rep. Webster, Sen. Owen): Creates an office of smart growth in the Department of Local Affairs. This office will have authority and money ($735,000) to award grants to communities to address critical planning issues and to develop master plans. The department is authorized to maintain a list of qualified professionals available to assist in resolving land use disputes between local governments. SIGNED BY THE GOVERNOR 5/24.

H.B. 1435 (Rep. Kaufman, Sen. Lamborn): This bill is a repeal/reenact of the Uniform Commercial Code-Secured Transactions, article 9 of title 4. It comes from the National Conference of Commissioners on Uniform State Laws. Apparently no immediate relevance to the title industry. LOST ON THE SENATE FLOOR; WILL BE REINTRODUCED NEXT SESSION.

S.B. 1 (Sen. Hillman, Rep. Stengel) INTERIM COMMITTEE BILL: Authorizes counties and municipalities to acquire development rights to preserve open space or agricultural lands for public use and enjoyment. Instruments conveying such rights are to be recorded. POSTPONED INDEFINITELY.

S.B. 3 (Sen. Perlmutter, Rep. Smith): Expands the range and increases the value of assets that are exempt from seizure in debt collection proceedings. Increases the homestead exemption to $45,000. SIGNED BY THE GOVERNOR 5/23.

S.B. 8 (Sen. Reeves, Rep. Zimmerman) INTERIM COMMITTEE BILL: Requires the Dept. of Local Affairs to provide internet access to master plans of counties, regions and municipalities. This would be a fee-based system. Requires local jurisdictions, to the extent possible, to use uniform terminology in master plans. POSTPONED INDEFINITELY 4/6.

S.B. 35 (Sen. Owen, Rep. T. Williams): Requires that insurance companies submit, not less than quarterly, written investment plans for review and approval by their boards of directors, and that the company comply with such written plans. SIGNED BY THE GOVERNOR 4/18. Note: The Division of Insurance says such meetings could be held telephonically.

S.B. 60 (Sen. Powers): Prohibits expenditure of state capital construction money in any local jurisdiction that has a residential construction limit. Defines "residential construction limitation" as a local government measure, ordinance, or resolution that limits the number of residential dwellings that may be constructed or building permits that may be issued, or that places a moratorium or suspension on such construction or issuance of building permits. POSTPONED INDEFINITELY IN LOCAL GOVERNMENT COMMITTEE 2/9.


S.B. 82 (Sen. Dyer): Creates an insurance self-evaluation privilege, similar to the environmental self-audit law. Creates evidentiary and testimonial privileges and penalty immunity for insurers, regulated under state insurance laws, that conduct voluntary self-evaluations and correct discovered violations within a reasonable time. POSTPONED INDEFINITELY IN SENATE BUSINESS AFFAIRS COMMITTEE 2/7.

S.B. 96 (Sen. Anderson, Rep. McPherson): For municipalities that have not yet adopted ordinances or resolutions specifying what constitutes a "site specific development plan" as required under 1999 legislation, causes statutory property rights to vest automatically under default provisions and prohibits such municipalities from adopting such ordinances or resolutions effective January 1, 2001. As amended, this bill applies only to the 10 largest counties (counties "with more than fifty thousand inhabitants"). POSTPONED INDEFINITELY 3/2.

S.B. 106 (Sen. Owen, Rep. Taylor): Eliminates the requirements for prior approval of rates by the Division of Insurance for Type II insurance (which includes title). Every title insurance company and agent must have on file in their offices their schedule of rates, fees and effective dates, and supporting documentation for such rates and fees. The Division shall have access upon request to all such information, but only new or amended rates and fees must be filed. SIGNED BY THE GOVERNOR 4/24.

S.B. 110 (Sen. Evans, Rep. Alexander): Defines agricultural land for property tax purposes to include a parcel of land subject to a corridor conservation easement for at least 20 years, and if it is at least 35 acres, allows this ag classification even if it contains residential improvements. The land must have been classified as agricultural at the time the easement was granted. POSTPONED INDEFINITELY 2/10.

S.B. 118 (Sen. Sullivant, Rep. Stengel): Creates a comprehensive planning program requiring counties and municipalities to develop a comprehensive plan. Requires certain counties and municipalities to develop expandable urban service area boundaries. Requires a cross-acceptance among planning jurisdictions of activities occurring within a 3-mile radius. After approval of a comprehensive plan and designation of an expandable urban service area, a planning jurisdiction may only impose a moratorium on development approvals or building permit applications to address a real and immediate threat to the public health and safety affecting the residents of that jurisdiction. POSTPONED INDEFINITELY IN LOCAL GOVERNMENT COMMITTEE.

S.B. 145 (Sen. Reeves, Rep. Kaufman): Concerning child support. Clarifies that the automatic lien on real property when child support comes due and is not paid shall remain in effect for the life of the judgment, not 12 years, or until all past-due amounts are paid. SIGNED BY THE GOVERNOR 6/1.

S.B. 196 (Sen. Wattenberg, Rep. George): Requires subdivision regulations adopted by a board of county commissioners or a municipal planning commission to require subdividers to provide evidence that provision has been made for facility sites, easements, and rights of access for electrical or natural gas utility service sufficient to ensure reliable and adequate electric service for the proposed subdivision. SIGNED BY THE GOVERNOR 6/1.

S.B. 197 (Sen. Wattenberg, Rep. George): Requires a local government to take final action on any application that relates to construction/improvement of major electrical or natural gas facilities within 120 days after submission of a preliminary application (or 90 days after a final application). SIGNED BY THE GOVERNOR 6/1.

S.B. 220 (Sen. Perlmutter, Rep. Smith): Modification of procedures for foreclosure of deeds of trust. This bill, the product of the Real Estate Section of the Colorado Bar Association, was just introduced on April 7. One section allows foreclosure without either the original evidence of debt OR a bond, if the institution foreclosing is one of those currently allowed to submit a release of deed of trust without the original document. POSTPONED INDEFINITELY IN HOUSE BUSINESS AFFAIRS/LABOR COMMITTEE 4/27. LTAC NEEDS TO CONTINUE WORKING WITH THE COLORADO BAR ASSOCIATION ON THIS RECODIFICATION, WHICH WILL PROBABLY BE REINTRODUCED IN SOME FORM NEXT SESSION.

House Concurrent Resolution 1002 (Rep. Witwer, Sen. Evans): An amendment to the state Constitution granting a homestead exemption to taxpayers age 65 years or older. Begins with 1-1-02. Thirty percent of the first $200,000 of actual value of residential property that is the primary residence of the owner/occupier shall be exempt. The dollar amount could be adjusted by the General Assembly in later years. Local governments would be compensated by the State for lost property tax revenues. HCR 1002 has been amended to require the taxpayer to have lived in his/her home for at least 10 years in order to claim the homestead exemption (originally it was 5 years). WILL BE ON THE NOVEMBER BALLOT.