Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON JUDICIARY

Date:03/18/2009
ATTENDANCE
Time:01:32 PM to 04:50 PM
Hudak
*
King K.
*
Place:SCR 352
Lundberg
X
Newell
X
This Meeting was called to order by
Renfroe
X
Senator Morse
Carroll M.
X
Morse
X
This Report was prepared by
Sara McPhee
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB09-1253
HB09-1276		Referred to the Committee of the Whole
Referred to the Committee of the Whole


01:32 PM -- House Bill 09-1253

Senator Tapia, bill sponsor, discussed House Bill 09-1253 concerning processes for involuntary mental health treatment for defendants. He explained that the bill clarifies jurisdiction concerning petitions for involuntary treatment of defendants requiring evaluation or restoration to competency. Senator Tapia noted that this bill is designed to streamline processes. At times, defendants may wait for several months before being heard in court and are not receiving adequate treatment or medication. Senator King asked about when a person can plead not guilty by reason of insanity.

01:38 PM -- Doug Wilson, representing the Office of the State Public Defender, spoke in support of the bill. Mr. Wilson provided the committee with a brief overview of the plea of not guilty by reason of insanity. He indicated that this bill concerns medications that mentally ill individuals receive as a means of returning them to competency. Mr. Wilson explained that not guilty by reason of insanity is a plea that resolves a case whereas incompetency is temporary until a person can be restored to competency and the case continues. Senator King asked Mr. Wilson about House amendments to the bill.


01:50 PM

Mr. Wilson discussed specific provisions of the bill which had concerned his office and have been resolved by the House amendments. He explained that often times defendants who have been declared incompetent are restored at the hospital and then transported to the jail. The jails often use different formularies for medication which may cause the defendant to be incompetent again and need to be returned to the hospital to be restored to competency. He also discussed the issue of defendants testifying at involuntary medication hearings and ensuring that they do not incriminate themselves.







01:57 PM -- Paula Rhoads, representing herself, spoke about the bill. She related her personal experiences with having a brain injury and receiving medications that did not work for her.

02:02 PM -- Julie Meeker, representing the Colorado Mental Health Institute at Pueblo, spoke in support of the bill. Ms. Meeker discussed the procedures for mentally ill patients who do not want to take their medications. She stated that this bill requires all involuntary medication hearings to be heard in Pueblo where the patient is located. This will enable the hearings to be conducted in a more timely manner and should result in patients being returned to competency more quickly. It also removes a security problem because the inmate does not need to be transported. The bill also provides a mechanism for the jails to continue the treatment that was put in place at the mental health institute.

02:09 PM -- Beverly Fulton, representing the Colorado Mental Health Institute at Pueblo, spoke in support of the bill.

02:10 PM -- Peg Ackerman, representing the County Sheriffs of Colorado, spoke in support of the bill. She discussed the importance of keeping inmates competent when they return to the jails from the mental health institute.


02:12 PM

Senator Tapia concluded his presentation of the bill. He noted that the hearings are conducted on the hospital grounds which is a cost savings for the state.
BILL:HB09-1253
TIME: 02:13:09 PM
MOVED:Carroll M.
MOTION:Refer House Bill 09-1253 to the Committee of the Whole with a recommendation that it be placed on the consent calendar. The motion passed on a 6-0 roll call vote.
SECONDED:
VOTE
Hudak
Yes
King K.
Yes
Lundberg
Yes
Newell
Excused
Renfroe
Yes
Carroll M.
Yes
Morse
Yes
Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS














02:14 PM -- House Bill 09-1276

Senator Carroll, bill sponsor, discussed House Bill 09-1276 concerning a delay in the foreclosure of residential property. She distributed a handout (Attachment A). Senator Carroll discussed the foreclosure crisis that is occurring in Colorado and the nation. In the fourth quarter of 2008, there were approximately 10,000 foreclosure filings. She indicated that the bill is directed at individuals who are facing foreclosure, but with a slight modification may be able to stay in their homes. This bill will provide eligible borrowers with information earlier in the foreclosure process to try to assist those who may be eligible. She noted that there are many who will not be eligible, but for some who have a demonstrated ability to pay this bill could help them to avoid foreclosure. Senator Carroll stated that trained housing counselors will assess who may qualify for a loan modification under this bill.

09SenateJud0318AttachA.pdf

02:23 PM

Senator Lundberg asked if lenders are prevented from doing this under current statute. He discussed his concerns with the bill. Senator Carroll discussed the provisions in the bill concerning coming to a mutually agreeable modification. Senator Lundberg and Senator Carroll discussed the specifics of the bill and how loan modifications would be structured.


02:35 PM

Senator Renfroe asked about bank regulations and how this bill interacts with existing bank regulations. Senator Carroll and Senator Renfroe continued to discuss the specifics of the bill. She noted that many people do not know about the resources available for people facing foreclosure. Senator Hudak discussed the issue of abandoned property and how it can be determined that the properties are being occupied if people get a loan modification.

02:48 PM -- Jose Vasquez, representing Colorado Legal Services, spoke in support of the bill. He explained that his organization receives many requests for foreclosure services. Mr. Vasquez discussed the process used by his organizations to work with individuals who are in foreclosure and to determine if they have any legal remedies.


03:01 PM

Senator King asked about the mutual agreement between the borrower and the bank. Senator King and Mr. Vasquez continued to discuss the provisions of the bill. Senator Hudak asked about the two-thirds of the mortgage that needs to be paid during the deferment period while the mortgage is being renegotiated. Senator Hudak also asked about the foreclosure counselors. Senator Lundberg asked about the mutual agreement provision and where in the bill it states that lenders have to agree to enter into the negotiations.











03:24 PM

Mr. Vasquez continued to discuss the specifics of the mutual agreement provision and the lender's ground for early termination. Senator Carroll explained the specifics of the bill and the rights and responsibilities of both the lender and the borrower.


03:41 PM

Senator Newell asked about the credit of the borrowers during the 90 day renegotiation period. Mr. Vasquez and Senator Carroll discussed credit reporting practices as related to the foreclosure process. Senator King asked about the specifics of the foreclosure process.

03:56 PM -- Ed Kahn, representing the Colorado Center on Law and Policy, spoke in support of the bill. He noted that representatives from the banking industry were involved in the drafting of the bill and are not opposed to the bill. According to Mr. Kahn, this bill provides a mechanism for helping some borrowers by streamlining the process for obtaining a loan modification.

04:02 PM -- Mike Rosser, representing the Colorado Foreclosure Prevention Task Force, spoke in support of the bill. He explained the history of the foreclosure hotline. Senator Newell asked about the provision requiring that two-thirds of the mortgage is to be paid during the deferral period.

04:13 PM -- Alana Smart, representing Housing Colorado, spoke in support of the bill. She discussed the way that these foreclosures are putting pressure on the rental market.

04:16 PM -- Peter Minahan, representing Colorado Financial Services Association, spoke about the bill. He stated that his members do not see this as a mechanism by which borrowers will delay the inevitable. He discussed the negotiation process for refinancing a mortgage to avoid the foreclosure process.


04:23 PM

Senator Lundberg discussed the specifics of the foreclosure process with Mr. Minahan. The committee continued to discuss the specifics of the bill with Mr. Minahan.

04:29 PM -- Ryan McMaken, representing the Colorado Division of Housing, spoke in support of the bill. He discussed the division's involvement in the foreclosure hotline. Senator Newell asked about reporting requirements if this bill were to pass. Senator Lundberg asked about the resources for the foreclosure hotline.

04:35 PM -- Rudy Torrez, representing himself, spoke in support of the bill. He indicated that he is a housing counselor. He related his experiences with trying to renegotiate mortgages between lenders and borrowers. Mr. Torrez and Senator Lundberg discussed who holds a mortgage note and how they might negotiate.













04:42 PM

Senator Carroll concluded her presentation of the bill. Senator King discussed his reasons for voting for the bill. Senator Lundberg discussed his reasons for not voting for the bill.
BILL:HB09-1276
TIME: 04:49:41 PM
MOVED:Carroll M.
MOTION:Refer House Bill 09-1276 to the Committee of the Whole. The motion passed on a 5-2 roll call vote.
SECONDED:
VOTE
Hudak
Yes
King K.
Yes
Lundberg
No
Newell
Yes
Renfroe
No
Carroll M.
Yes
Morse
Yes
Final YES: 5 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


04:50 PM

The committee adjourned.