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May 5

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In this issue:   May 5, 2014
eLegislative Report from Michael Valdez

Welcome to the 2014 edition of the CBA e-legislative report. This CBA member benefit will be delivered to your Inbox on Monday afternoons and will recap legislation from the current legislative session and the role the CBA plays at the State Capitol.

In addition to updates on the positions taken by the CBA through our Legislative Policy Committee the e-leg report will highlight legislation that is of interest to the practicing bar.

We welcome your feedback. We welcome your questions. Or just drop me a line on how we are doing or raise an issue on a piece of legislation. Contact me at mavaldez@cobar.org.

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CBA Legislative Policy Committee

For readers who are new to CBA legislative activity, the Legislative Policy Committee (LPC) is the CBA’s legislative policy-making arm during the legislative session. The LPC meets weekly during the legislative session to determine CBA positions on requests from the various sections and committees of the Bar Association.

The LPC met on Friday, May 2 but did not take any positions on any additional bills.

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At the Capitol—Week of April 28

A scorecard of the committee and floor work follows.

In the House

Monday, April 28

Passed on 3rd reading.

  • HB 14-1374. Concerning the inclusion of on-demand air carriers in the sales and use tax exemption for certain aircraft. Vote: 64 yes and 1 no.
  • HB 14-1379. Concerning clarifying the application of spousal maintenance statutes. Vote: 64 yes and 1 no.
  • HB 14-1378. Concerning prohibiting the posting of a private image on social media without consent to cause serious emotional distress. Vote: 65 yes and 0 no.
  • HB 14-1390. Concerning the legal standing of a member of the public in challenging a violation of the open meetings requirements. Vote: 65 yes and 0 no.
  • HB 14-1388. Concerning a civil cause of action for damages that result from an unlawful termination of a pregnancy at any time prior to birth caused by at least reckless conduct without establishing legal personhood at any time prior to a live birth. Vote: 37 yes and 28 no.
  • HB 14-1375. Concerning modifications to statutory provisions governing urban redevelopment to promote the equitable financial contribution among affected public bodies in connection with the tax increment financing of urban redevelopment projects. Vote: 40 yes and 25 no.
  • SB 14-183. Concerning an increase in the maximum term of a business incentive agreement that a local government enters into with a taxpayer who pays business personal property tax. Vote: 63 yes and 2 no.
  • SB 14-171. Concerning the ability of the Colorado new energy improvement district to arrange financing for water conservation fixtures. Vote: 39 yes and 26 no.
  • SB 14-152. Concerning the standardization of financial transaction requirements applicable to insurers. Vote: 63 yes and 2 no.
  • SB 14-173. Concerning the recommendation that certain persons be offered a test for the hepatitis C virus. Vote: 46 yes and 19 no.
  • SB 14-11. Concerning the Colorado energy research authority. Vote: 38 yes and 27 no.
  • SB 14-151. Concerning the use of moneys derived from civil penalties imposed on nursing facilities to fund innovations in nursing home care, and, in connection therewith, making an appropriation. Vote: 61 yes and 4 no.
  • SB 14-64. Concerning restricting the use of long-term isolated confinement for inmates with serious mental illness, and, in connection therewith, making an appropriation. Vote: 63 yes and 2 no.
  • SB 14-130. Concerning an increase to the personal needs allowance for persons in nursing care facilities, and, in connection therewith, making and reducing appropriations. Vote: 64 yes and 1 no.
  • SB 14-157. Concerning the commission of a report by the department of military and veterans affairs that examines the comprehensive value of United States military activities centered in Colorado, and, in connection therewith, making and reducing appropriations. Vote: 65 yes and 0 no.
  • SB 14-75. Concerning the registration of motor vehicles for members of the United States armed forces who are deployed outside the United States, and, in connection therewith, making and reducing appropriations. Vote: 65 yes and 0 no.
  • SB 14-125. Concerning the regulation of transportation network companies, and, in connection therewith, requiring transportation network companies to carry liability insurance, conduct background checks on transportation network company drivers, inspect transportation network company vehicles, and obtain a permit from the public utilities commission; and making an appropriation. Vote: 60 yes and 5 no.

Wednesday, April 30

Passed 3rd Reading:

  • HB 14-1343. Concerning workers’ compensation coverage for post-traumatic stress disorder for peace officers. Vote: 44 yes, 20 no, and 1 excused.
  • SB 14-144. Concerning extending the commission on family medicine's support for the development of family medicine residency programs in underserved areas of the state, and, in connection therewith, making and reducing appropriations. Vote: 60 yes and 5 no.
  • HB 14-1369. Concerning required licensure for durable medical equipment suppliers, and, in connection therewith, making an appropriation. Vote: 48 yes and 17 no.
  • HB 14-1396. Concerning clarification of the authority of persons acting on behalf of the department of public health and environment to administer the medical marijuana registry. Vote: 65 yes and 0 no.
  • SB 14-21. Concerning the treatment of persons with mental illness who are involved in the criminal justice systems, and, in connection therewith, making an appropriation. Vote: 65 yes and 0 no.

Thursday, May 1

Passed on 3rd reading.

  • SB 14-73. Concerning the state income tax credit for the environmental remediation of contaminated land in the state, and, in connection therewith, making and reducing appropriations. Vote: 55 yes and 10 no.
  • SB 14-88. Concerning the creation of the suicide prevention commission, and, in connection therewith, making and reducing appropriations. Vote: 45 yes and 20 no.
  • SB 14-115. Concerning procedural requirements applicable to state water plans, and, in connection therewith, making and reducing an appropriation. Vote: 65 yes and 0 no.
  • SB 14-166. Concerning the development of mobile application software in the Colorado office of economic development that users may access to identify local businesses, and, in connection therewith, making and reducing appropriations. Vote: 38 yes and 27 no.
  • HB 14-1392. Concerning a prohibition on the use of simulated gambling devices. Vote: 61 yes and 4 no.
  • HB 14-1393. Concerning a clarification regarding the treatment of federal funds for purposes of section 20 of article X of the state constitution. Vote: 58 yes, 6 no, and 1 excused.
  • SB 14-182. Concerning procedures governing discussions by boards of education of school districts while meeting in executive session. Vote: 36 yes, 26 no, and 3 excused.
  • SB 14-162. Concerning quality management programs for emergency medical service providers providing care in the prehospital setting. Vote: 62 yes, 0 no, and 3 excused.
  • SB 14-174. Concerning the creation of the prosecution fellowship program. Vote: 48 yes, 14 no, and 3 excused.
  • SB 14-87. Concerning issuance of identification cards to people who are lawfully present in the United States but may have difficulty with certain documentary evidence, and, in connection therewith, making and reducing appropriations. Vote: 40 yes, 22 no, and 3 excused.
  • SB 14-133. Concerning the regulation of private investigators by the department of regulatory agencies, and, in connection therewith, making appropriations. Vote: 45 yes, 27 no, and 3 excused.
  • SB 14-164. Concerning aerial firefighting efforts through the division of fire prevention and control in the department of public safety, and, in connection therewith, implementing recommendations made by the division regarding the Colorado firefighting air corps. Vote: 51 yes, 11 no, and 3 excused.
  • SB 14-187. Concerning creation of the Colorado commission on affordable health care to analyze health care costs in Colorado, and, in connection therewith, making an appropriation. Vote: 40 yes, 22 no, and 3 no.
  • SB 14-194. Concerning the issuance of identification documents by the department of revenue, and, in connection therewith, making an appropriation. Vote: 60 yes, 2 no, and 3 excused.
  • SB 14-118. Concerning improving protections for individuals with disabilities. Vote: 60 yes, 2 no, and 3 excused.

Saturday, May 3

Passed 3rd Reading:

  • SB 14-212. Concerning clarifying changes to the provisions related to best practices in bond setting. Vote: 39 yes, 25 no, and 1 excused.
  • SB 14-209. Concerning the requirements for permissible investments by insurers in loans secured by interests in real estate. Vote: 62 yes, 2 no, and excused.
  • SB 14-206. Concerning criminal record sealing provisions, and, in connection therewith, relocating the record sealing provisions in a new part, clarifying when an arrest record can be sealed, and making other clarifying changes. Vote: 64 yes, 0 no, and 1 excused.
  • SB 14-191. Concerning the procedures for resolution of workers’ compensation claims. Vote: 39 yes, 28 no, and 1 excused.
  • SB 14-184. Concerning oversight of the industrial hemp program. Vote: 64 yes, o no, and 1 excused.
  • SB 14-186. Concerning the aggregation of efficiency projects in small communities in order to attract private sector investment through performance contracting. Vote: 38 yes, 26 no, and 1 excused.

In the Senate

Monday, April 28

Passed on 3rd Reading:

  • HB 14-1216. Concerning required safety markings for certain towers over fifty feet in height that are located in unincorporated areas of the state. Vote: 33 yes, 1 no, and 1 excused.
  • SB 14-159. Concerning implementation of standardized rules for use in processing medical claims, and, in connection therewith, making an appropriation. Vote: 24 yes, 10 no, and 1 excused.
  • HB 14-1328. Concerning the deployment of broadband into unserved areas of Colorado through grant- making from moneys allocated from the Colorado high cost support mechanism, and, in connection therewith, making an appropriation. Vote: 28 yes, 6 no, and 1 excused.
  • HB14-1331. Concerning the regulation of basic local exchange service as it affects effective competition, and, in connection therewith, making an appropriation. Vote: 33 yes, 1 no, and 1 excused.
  • HB 14-1329. Concerning the exemption of certain internet-protocol-enabled services from oversight by the public utilities commission, and, in connection therewith, making an appropriation. Vote: 34 yes, 0 no, and 1 excused.
  • HB 14-1327. Concerning measures to expand the deployment of communication networks, and, in connection therewith, enacting the “Broadband Deployment Act” and making an appropriation. Vote: 32 yes, 2 no, and 1 excused.
  • HB 14-1330. Concerning an update of telecommunications terminology for intrastate telecommunications services. Vote: 34 yes, 0 no, and 1 excused.
  • SB 14-118. Concerning improving protections for individuals with disabilities. Vote: 22 yes, 12 no, and 1 excused.
  • HB 14-1170. Concerning the authority of the state to enter into lease-purchase agreements for the Colorado bureau of investigation’s Pueblo regional office and forensic laboratory, and, in connection therewith, making an appropriation. Vote: 23 yes, 11 no, and 1 excused.
  • SB 14-206. Concerning criminal record sealing provisions, and, in connection therewith, relocating the record sealing provisions in a new part, clarifying when an arrest record can be sealed, and making other clarifying changes. Vote: 33 yes, 1 no, and 1 excused.
  • HB 14-1072. Concerning an income tax credit for child care expenses paid by a resident individual with a federal adjusted gross income of $25,000 or less, and, in connection therewith, making an appropriation. Vote: 23 yes, 11 no, and 1 excused.
  • HB 14-1014. Concerning modifications to the job growth incentive tax credit, and, in connection therewith, reducing an appropriation. Vote: 27 yes, 7 no, and 1 excused.
  • HB 14-1205. Concerning the veteran’s assistance grant program. Vote: 24 yes, 10 no, and 1 excused.
  • HB 14-1211. Concerning ensuring access to quality complex rehabilitation technology in the Medicaid program, and, in connection therewith, making and reducing appropriations. Vote: 29 yes, 5 no, and 1 excused.
  • HB 14-1011. Concerning the funding of advanced industry economic development programs. Vote: 19 yes, 15 no, and 1 excused.
  • SCR 14-2. Submitting to the registered electors of the state of Colorado an amendment to the Colorado constitution concerning the protection of electronic data from unreasonable searches and seizures. Vote: 34 yes, 0 no, and 1 excused.

Tuesday, April 29

Passed on 3rd Reading:

  • HB 14-1322. Concerning the Colorado probate code. Vote: 35 yes and 0 no. CBA-sponsored legislation.
  • HB 14-1323. Concerning restrictions on the ability of a government entity to access an individual’s personal medical information. Vote: 35 yes and 0 no.
  • HB 14-1159. Concerning a state sales and use tax exemption for components used in biogas production systems. Vote: 31 yes and 4 no.
  • HB 14-1095. Concerning the Colorado bureau of investigation’s authority to investigate computer crime, and, in connection therewith, making an appropriation. Vote: 33 yes and 2 no.
  • SB 14-155. Concerning grant funding for medical marijuana health effects studies. Vote: 35 yes and 0 no.

Wednesday, April 30

Passed on 3rd Reading:

  • SB 14-209. Concerning the requirements for permissible investments by insurers in loans secured by interests in real estate. Vote: 35 yes and 0 no.
  • HB 14-1353. Concerning powers of appointment. Vote: 34 yes and 1 no. CBA-supported legislation.
  • HB 14-1044. Concerning consequences for a parolee who tampers with an electronic monitoring device that the parolee is required to wear as a condition of parole. Vote: 35 yes and 0 no.
  • HB 14-1363. Concerning the nonsubstantive revision of statutes in the Colorado Revised Statutes, as amended, and, in connection therewith, amending or repealing obsolete, imperfect, and inoperative law to preserve the legislative intent, effect, and meaning of the law. Vote: 35 yes and 0 no.
  • HB 14-1362. Concerning great-grandparent visitation with great-grandchildren. Vote: 35 yes and 0 no.
  • HB 14-1273. Concerning human trafficking, and, in connection therewith, making and reducing appropriations. Vote: 35 yes and 0 no.
  • HB 14-1269. Concerning the circumstances under which a person who sells items subject to sales tax must collect such sales tax on behalf of the state. Vote: 18 yes and 17 no.
  • HB 14-1359. Concerning medication synchronization for patients who are prescribed multiple medications. Vote: 23 yes and 12 no.
  • SB 14-191. Concerning the procedures for resolution of workers’ compensation claims. Vote: 18 yes and 17 no.
  • HB 14-1278. Concerning continuation of the workers’ compensation accreditation program administered by the division of workers’ compensation, and, in connection therewith, implementing the recommendations of the 2013 sunset report by the department of regulatory agencies. Vote: 22 yes and 13 no.
  • HB 14-1270. Concerning the sunset review of the licensing of pet animal facilities, and, in connection therewith, continuing the licensing functions of the commissioner of agriculture and making substantive changes to the regulatory statutes. Vote: 20 yes and 15 no.
  • HB 14-1333. Concerning the funding of Colorado water conservation board projects, and, in connection therewith, making an appropriation. Vote: 35 yes and 0 no.
  • HB 14-1119. Concerning an income tax credit for the donation of food to a hunger-relief charitable organization. Vote: 27 yes and 8 no.
  • HB 14-1032. Concerning the provision of defense counsel to juvenile offenders, and, in connection therewith, making and reducing appropriations. Vote; 28 yes and 7 no.
  • HB 14-1012. Concerning income tax credits that promote investment in Colorado advanced industries, and, in connection therewith, making an appropriation. Vote: 21 yes and 14 no.
  • HB 14-1317. Concerning modifications to the Colorado child care assistance program, and, in connection therewith, aligning eligibility and authorization; addressing affordability by reducing copayments; improving provider reimbursement rates; increasing access to quality care; improving technology, infrastructure, and administration; and making an appropriation. Vote: 20 yes and 15 no.
  • HB 14-1356. Concerning an increase in the Colorado oil and gas commission’s penalty authority, and, in connection therewith, making an appropriation. Vote: 20 yes and 15 no.
  • SB 14-197. Concerning high-performance transportation enterprise transparency. Vote: 25 yes and 10 no.
  • SB 14-195. Concerning a study of phreatophyte growth along the South Platte River in the aftermath of the September 2013 flood. Vote: 34 yes and 1 no.
  • HB 14-1300. Concerning a 2014-15 state fiscal year general fund transfer to the Colorado state fair authority cash fund to support the state fair’s programs with the state’s 4-H clubs and the Colorado association of the national future farmers of America organization, and, in connection therewith, reducing an appropriation. Vote: 28 yes and 7 no.
  • HB 14-1093. Concerning the establishment of the creative district community loan fund, and, in connection therewith, making and reducing appropriations. Vote: 19 yes and 16 no.
  • HB 14-1326. Concerning tax incentives for alternative fuel trucks, and, in connection therewith, making an appropriation. Vote: 27 yes and 8 no.
  • HB 14-1310. Concerning the provision of breath-testing devices to law enforcement agencies. Vote: 27 yes and 8 no.
  • SB 14-190. Concerning criminal discovery, and, in connection therewith, creating a statewide discovery sharing system, a criminal discovery surcharge, civil immunity for district attorneys that make a good-faith effort to redact information from discovery documents, and making an appropriation. Vote: 35 yes and 0 no.
  • SB 14-203. Concerning the office of the respondent parents’ counsel in cases of alleged child abuse or neglect. Vote: 35 yes and 0 no.

Thursday, May 1

Passed on 3rd Reading:

  • HB 14-1303. Concerning the receipt of public testimony from remote locations around the state by legislative committees, and, in connection therewith, making and reducing appropriations. Vote: 35 yes and 0 no.
  • HB 14-1338. Concerning planning for the effective use of Colorado’s regional centers for persons with intellectual disabilities, and, in connection therewith, making an appropriation. Vote: 35 yes and 0 no.
  • HB 14-1368. Concerning the transition of youth ages eighteen through twenty-one who have intellectual and developmental disabilities to the adult program of services for persons with intellectual and developmental disabilities, and, in connection therewith, making and reducing appropriations. Vote: 35 yes and 0 no.
  • SB 14-193. Concerning conforming Colorado law on location information with the Fourth Amendment as interpreted by the United States Supreme Court in United States v. Jones. Vote: 35 yes and 0 no.
  • SB 14-201. Concerning reestablishing a child protection ombudsman advisory work group to develop a plan for accountable autonomy for the child protection ombudsman program. Vote: 35 yes and 0 no.
  • HB 14-1315. Concerning the enactment of certain model acts adopted by the national association of insurance commissioners, and, in connection therewith, enacting the credit for reinsurance model act and the portion of the insurer receivership model act that governs netting agreements. Vote: 34 yes and 1 no.
  • SB 14-212. Concerning clarifying changes to the provisions related to best practices in bond setting. Vote: 27 yes and 8 no.
  • SB 14-208. Concerning the reinstatement of the authority for a veteran who has not been dishonorably discharged to practice professionally. Vote: 33 yes and 2 no.
  • HB 14-1357. Concerning in-home support services provided in the Medicaid program, and, in connection therewith, making and reducing appropriations. Vote: 29 yes and 6 no.
  • HB 14-1358. Concerning continuation of in-home support services, and, in connection therewith, authorizing in-home support services for spinal cord injury waiver pilot program participants. Vote: 34 yes and 1 no.
  • HB 14-1348. Concerning an extension of the effective date of the amended “retail sale” sales tax definition adopted in House Bill 13-1295 to take effect only if congress enacts an act that authorizes states to require certain retailers to pay, collect, or remit state or local sales taxes. Vote: 33 yes and 2 no.

Friday, May 2

Passed on 3rd Reading:

  • HB 14-1372. Concerning unauthorized advertising for adoption purposes. Vote: 35 yes and 0 no.
  • HB 14-1161. Concerning interstate rail service in southern Colorado, and, in connection therewith, creating a commission and a fund for the purposes of encouraging Amtrak to continue its southwest chief rail line service at all current Colorado stops, expanding such service to include a stop in Pueblo, studying the potential benefits of expanding such service to include a stop in Walsenburg, and making an appropriation. Vote: 26 yes and 9 no.
  • HB 14-1173. Concerning continuation of the controlled substances abuse act, and, in connection therewith, the treatment of controlled substances abuse and making an appropriation. Vote: 23 yes and 12 no.
  • HB 14-1283. Concerning modifications to the electronic prescription drug monitoring program, and, in connection therewith, making an appropriation. Vote: 24 yes and 11 no.
  • SB 14-180. Concerning the Colorado dental health care program for low-income seniors, and, in connection therewith, requiring a post-enactment review of the implementation of this act, and making and reducing appropriations. Vote: 24 yes and 11 no.
  • SB 14-211. Concerning an Alzheimer’s disease center, and, in connection therewith, making an appropriation. Vote: 35 yes and 0 no.
  • HB 14-1349. Concerning the creation of an exemption from property taxes for qualifying business entities controlled by nonprofit organizations that are formed for the purpose of qualifying for federal tax credits. Vote: 33 yes and 2 no.
  • HB 14-1371. Concerning property taxation of oil and gas leaseholds and lands, and, in connection therewith, specifying that the wellhead is the point of valuation and taxation for such leaseholds and lands. Vote: 34 yes and 1 no.
  • HB 14-1214. Concerning an increase in the penalties for certain offenses committed against an emergency medical service provider, and, in connection therewith, making an appropriation. Vote: 33 yes and 2 no.
  • HB 14-1334. Concerning the petroleum cleanup and redevelopment fund. Vote: 33 yes and 2 no.

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10 Bills of Interest
House Bills

HB 14-1361. Concerning the authority of the state licensing authority to establish equivalencies for retail marijuana products, and, in connection therewith, making an appropriation.

By Rep. McNulty and Sen. Guzman

The bill directs the department of revenue (department) to promulgate rules establishing the equivalent of one ounce of retail marijuana flower in various retail marijuana products. The bill authorizes the department to contract for a scientific study of the equivalency of marijuana flower in marijuana products.

The bill prohibits a retail marijuana store from selling more than one ounce of retail marijuana or the equivalent in retail marijuana products during any single transaction to a Colorado resident. Current law prohibits the sale of more than one-quarter ounce of retail marijuana to a person who is not a resident of Colorado. The bill expands this prohibition to include the equivalent of one-quarter ounce in retail marijuana products.

The bill passed out of the house on April 21. The bill has been approved by the senate health & human services and appropriations committees and cleared 2nd reading in the Senate on May 2.

 

HB 14-1373. Concerning individuals who may claim the property tax exemption for qualifying seniors and disabled veterans.

By Rep. Lebsock and Sen. Crowder

A senior who is 65 years old or older and has owned and occupied the same primary residence for at least 10 years or the surviving spouse of such a senior may claim a property tax exemption (exemption) for the primary residence in an amount equal to 50% of the first $200,000 of actual value. In addition, a disabled veteran who has a service-connected disability that the United States department of veterans affairs has rated as 100% permanent and total disability, but not the surviving spouse of such a veteran, may claim the exemption.

For property tax years commencing on or after January 1, 2015, the bill specifies that:

  • A senior who has received an exemption for his or her former primary residence but moved to a new primary residence after January 1, 2014, may continue to claim an exemption for his or her new primary residence if a natural disaster forced the move by destroying the former primary residence or otherwise rendering it uninhabitable. The surviving spouse of a deceased senior may also claim the exemption for his or her new primary residence if the deceased senior:
    1. Previously qualified for a property tax exemption for the new primary residence; or
    2. Would have qualified for a property tax exemption for the new primary residence if he or she had not died before the surviving spouse moved to the new primary residence.
  • The surviving spouse of a deceased disabled veteran who had received an exemption before his or her death may claim the exemption.

The bill was approved by the House on April 21. The Senate Finance and Appropriations Committees approved the bill on May 29 and 30 and was adopted on 2nd Reading by the full Senate on May 2.

HB 14-1379. Concerning clarifying the application of spousal maintenance statutes.

By Rep. McCann and Sen. Kerr

The bill clarifies that the spousal maintenance statute as it existed prior to January 1, 2014, governs claims for maintenance in dissolution of marriage and other actions filed prior to January 1, 2014.

The bill clarifies that, in addition to remarriage, maintenance also terminates upon the establishment of a civil union by the party receiving maintenance.

The bill was approved by the House on April 28. The Senate Judiciary Committee approved the bill on April 30, and on May 2 the bill was approved on 2nd Reading in the Senate.

HB 14-1383. Concerning the required number of physicians that must be provided to an injured employee for selection of a treating physician in workers' compensation cases.

By Rep. Williams and Sen. Tochtrop

Current law requires an employer or workers’ compensation insurer to provide a list of at least two physicians or two corporate medical providers or one physician and one corporate medical provider to an injured employee from which to select a treating physician. The bill changes that number to four physicians and corporate medical providers.

Current law states that if there are fewer than four physicians or corporate medical providers within 30 miles of the employer’s place of business, the employer or insurer may instead designate one physician or one corporate medical provider. The bill adds an exemption for rural areas where there are more than three, but fewer than nine physicians or corporate medical providers within 30 miles of the employer’s place of business, the employer or insurer may instead designate two physicians or two corporate medical providers or a combination of the providers.

The bill was approved by the House on April 24. The Senate State Veterans and Military Affairs Committee approved the bill on April 28. On May 2 the bill was approved on 2nd Reading in the Senate.

HB 14-1398. Concerning the provision of financial services to licensed marijuana businesses, and, in connection therewith, making an appropriation.

By Rep. Singer and Sen. Steadman

Because marijuana is illegal under federal law, financial institutions are reluctant to serve state-licensed marijuana businesses. These businesses therefore currently operate almost entirely on a cash-only basis, which raises their costs and increases the risk of crime, among other things.

The bill enacts the “Marijuana Financial Services Cooperatives Act.” Marijuana financial services cooperatives (referred to as “cannabis credit co-ops”) are a type of financial services entity, membership in which is restricted to entities that are licensed to own or operate a marijuana business. Cannabis credit co-ops are subject to regulation by the state commissioner of financial services in a manner similar to that of credit unions, with the following differences:

  • The commissioner has 60 days after the filing of an application for a charter to determine whether the application meets the applicable requirements;
  • The incorporators of the co-op must provide the commissioner with written evidence of approval by the federal reserve bank for access by the co-op to the federal reserve system;
  • The commissioner cannot allow more than 10 charters for Cannabis credit co-ops to be outstanding at any one time;
  • The commissioner must examine cannabis credit co-ops at least once every six months; and
  • Once a member no longer owns or operates a licensed marijuana business, the member is no longer qualified to be a member of a co-op.

A cannabis credit co-op:

The bill gives the court of appeals jurisdiction to review certain of the commissioner’s actions. The bill sunsets the regulation of cannabis credit co-ops on September 1, 2020.

The bill has been approve by the Business, Labor, Economic, & Workforce Development, Finance, and Appropriations Committees in the House On May 2, the House passed the bill, as amended, on 2nd Reading Refer Amended to Finance.

  • Cannot refer to itself as a “credit union” or “bank;”
  • Does not need to acquire and maintain deposit insurance;
  • Is subject to taxation; and
  • Is specifically required to comply with federal requirements relating to marijuana businesses and their proceeds and to file reports with the commissioner regarding its federal law compliance and compliance with federal guidance.
Senate Bills

SB 14-213. Concerning increasing the statutes of limitations for commencing proceedings against a person who, after committing a vehicular homicide, leaves the scene of the accident, and, in connection therewith, requiring a post-enactment review of the implementation of this act.

By Sen. Johnston and Rep. Conti

In current law, the statute of limitations for bringing a criminal proceeding against a person who commits vehicular homicide is five years. For offenders who also leave the scene of the accident, the bill changes this limit to 10 years.

In current law, the statute of limitations for bringing a civil suit for wrongful death is two years. The bill changes this limit to four years for a wrongful-death suit against a defendant who committed vehicular homicide and, as part of the same criminal episode, committed the offense of leaving the scene of an accident that resulted in the death of a person.

Five years after the bill becomes law, the legislative service agencies shall conduct a post-enactment review of the implementation of the bill and report their conclusions to the judiciary committees of the house of representatives and senate, or any successor committees.

On April 30 the Judiciary Committee approved the bill and sent it to the Appropriations Committee. The Appropriations Committee approved the bill on May 11. The bill cleared 2nd Reading in the Senate on Friday, May 2.

SB 14-215. Concerning the disposition of moneys collected by the state in connection with the legal marijuana industry, and, in connection therewith, making an appropriation.

By By Sen. Steadman and Rep. Duran
Joint Budget Committee

The bill specifies the cash fund into which the moneys collected by the state in connection with the retail marijuana industry will be deposited and determines the disposition of such moneys received by the state during the 2013–14 state fiscal year.

Beginning July 1, 2014, the bill requires all retail marijuana excise tax revenues, all retail marijuana sales tax revenues, and all marijuana state sales tax revenues to be deposited in the marijuana tax cash fund, which the bill creates in the state treasury. The bill requires the state treasurer to transfer all moneys in the marijuana cash fund on July 1, 2014, that are attributable to retail marijuana excise tax revenues, retail marijuana sales tax revenues, and marijuana state sales tax revenues to the marijuana tax cash fund. All moneys attributable to fees will remain in the marijuana cash fund and will continue to be deposited in the marijuana cash fund.

The bill modifies the authorized uses of the moneys in the marijuana cash fund. Beginning July 1, 2014, the general assembly may appropriate the moneys in the marijuana cash fund only to the department of revenue for the costs associated with the regulation, control, and taxation of medical and retail marijuana.

Marijuana tax cash fund. The bill specifies that the general assembly may appropriate the moneys in the newly created marijuana tax cash fund for specified purposes, including the purposes that were eliminated from the currently existing marijuana cash fund.

The bill prohibits the general assembly from appropriating the moneys in the marijuana tax cash fund until the fiscal year following the fiscal year in which the moneys were received by the state; except that the general assembly may appropriate moneys in the marijuana tax cash fund to the department of revenue in the fiscal years in which they were received by the state for the costs associated with the regulation, control, and taxation of medical and retail marijuana.

The remaining moneys in the marijuana tax cash fund are subject to annual appropriation by the general assembly, initially based on the most recent revenue estimate, in the fiscal year following the fiscal year in which they were received by the state. The general assembly may also direct the state treasurer to make transfers from the marijuana tax cash fund to the general fund for specific purposes.

The governor is required to include the governor’s requested expenditures of moneys in the marijuana tax cash fund and the purposes of such expenditures in the governor’s budget request submitted to the joint budget committee each November. In addition, the executive director of the department of revenue is required to include in its budget request submitted to the joint budget committee in November of each year the amount that the department requests from the moneys in the marijuana cash fund and from the marijuana tax cash fund for the costs associated with the regulation, control, and taxation of medical and retail marijuana.

Beginning with appropriations made for the 2015–16 state fiscal year, the total amount that the general assembly appropriates from the fund shall not exceed 93.5% of the amount of moneys in the fund available for appropriation.

The bill delineates the permissible purposes for which the general assembly may appropriate moneys in the marijuana tax cash fund.

The bill makes changes to the 2014 general appropriation bill that are required due to the transfer of moneys from the marijuana cash fund to the marijuana tax cash fund.

The bill passed the Health & Human Services and Appropriations Committees on April 30 and May 1 respectively. On May 2, the bill passed the 2nd Reading Consent Calendar in the Senate.

SB 14-220. Concerning prerequisites to the authority of a unit owners' association to pursue resolution of disputes involving construction defects.

By Sen. Ulibarri and Rep. Singer

The bill states that when the declaration, bylaws, or rules of a common interest community require mediation or arbitration of construction defect claims and the requirement is later removed, mediation or arbitration is still required for a construction defect claim based on an alleged act or omission that occurred when the mediation or arbitration requirement was in place. Section 1 also specifies that the arbitration must take place in the judicial district in which the community is located and that the arbitrator must:

  • Be a neutral third party;
  • Make certain disclosures before being selected; and
  • Be selected as specified in the community’s governing documents if possible or, if that is not possible, in accordance with the uniform arbitration act.

The bill adds to the disclosures required prior to the purchase and sale of property in a common interest community a notice that the community's governing documents may require binding arbitration of certain disputes.

The bill requires that before a construction defect lawsuit is filed on behalf of the association, the executive board of the association must give advance notice to all unit owners, together with a disclosure of the projected costs, duration, and financial impact of the litigation, and must obtain the written consent of a majority of the unit owners.

The bill is assigned to the State, Veterans & Military Affairs and the Judiciary Committees; the State Affairs Committee will take up the bill first at 1:30 p.m. on Monday, May 5.

SB 14-222. Concerning the duration of a license to use a registration number when auctioned to raise money for the disability-benefit support fund.

By Sen. Aguilar and Rep. Gerou

The bill changes the duration of a license to use a registration number purchased at auction from perpetual to a limited time determined by the license plate auction group.

On May 2, the Health & Human Services Committee approved the bill and sent it to the full Senate for consideration on 2nd Reading.

SB 14-223. Concerning the payment by the state of legal claims arising in connection with the lower north fork wildfire, and, in connection therewith, making and reducing appropriations.

By Sen. Nicholson and Rep. Gerou

The bill directs the state claims board (board) to compromise or settle claims brought by certain claimants who have suffered damages or other losses in connection with the lower north fork wildfire (wildfire) in March 2012 to reimburse them for their economic and noneconomic losses as well as interest on such amounts. The bill specifies that the total amount of the moneys paid to each claimant reflects the amount of money in excess of the liability limitations under current law for which the board recommended the claimant recover, any additional damages that the arbiters recommended the state pay these claimants in pending state court litigation, and interest on such amounts.

Upon approval by the board of the payments of the total claims, the office of the state controller is required to make payment to the claimants from the general fund no later than September 1, 2014.

In accepting the payment, a claimant agrees to release the state from any future claims arising out of the wildfire.

The bill specifies the total amount to be paid to each claimant by the state.

On May 2 the Appropriations Committee amended the bill and sent it to the Senate floor for 2nd Reading. On Special Orders on May 2, the bill passed 2nd reading with amendments.