Colorado Commission on Uniform State Laws (08/19/2014)

Final
STAFF SUMMARY OF MEETING

COLORADO COMMISSION ON UNIFORM STATE LAWS

Date:	08/19/2014	ATTENDANCE

Time:	10:02 AM to 11:27 AM	Gardner	X
		Grimshaw	X
Place:	HCR 0112	Kent	X
		Levy	X
This Meeting was called to order by		Mielke	X
	McGihon	Morris	X
		Pike	X
This Report was prepared by		Shaffer	*
	Patti Dahlberg	(None), (None)
		McGihon	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Proposed 2015 legislative agenda Uniform Voidable Transactions Act (formerly the Uniform Fraudulent Transfer Act) Fiduciary Access to Digital Assets Act Recognition of Substitute Decision-making Documents Act Revisions to the Uniform Common Interest Ownership Act Section 3-116 Interstate Family Support Act Amendments (2008) Other business		- - - - - -

10:04 AM -- Proposed 2015 legislative agenda

The Commission briefly outlined the process for legislation to be considered and approved as a uniform state law before moving on to the specific uniform state law draft proposals. In general, potential legislation starts out in a summary format which, depending on controversy, may be vetted for a couple of years or more before being assigned to a study committee to put together a draft proposal for consideration. At some point a draft will go through a first reading at the Uniform Law Commission's (ULC) national conference, discussed, and if changed, may require additional readings. ULC proposed legislation may go through three or four readings before it is voted on at a national conference. The Commission also announced that the two-year appointed terms for current Commissioners end in December and there will be some newly appointed members in January.

10:13 AM -- Uniform Voidable Transactions Act (formerly the Uniform Fraudulent Transfer Act)

10:14 AM -- John DeBruyn, Colorado Bar Association - Business Law Section, has been following the draft of this act and briefly outlined some of its concepts. He pointed out that there may be some portions in the proposed legislation that may need to be "tweaked" to fit in with other Colorado law regarding corporation organization. In addition, there are some terms used in the proposed legislation, particularly a "series organization", that are not defined in Colorado law and there may be some relationship elements or other issues that will need to be addressed in other portions of the statutes. In general, current law seems to be inadequate to address some of the current legal issues in transactional law, so the CBA has put together a working group to look at the draft language and would like to work with the Commission in moving the legislation forward.
10:24 AM -- Tony vanWestrum, Colorado Bar Association - Business Law Section, confirmed that there is CBA interest in participation in the development of this legislation for Colorado and that there are some components that need to be explored with care in terms of current state and federal law.

The Commission agreed to move forward with the proposed legislation and asked that the Colorado Bar Association's group look at the issues and concerns. The final decision for approving the draft for introduction in 2015 will be made at the December meeting so the CBA group should have comments prepared for that meeting.

10:33 AM -- Fiduciary Access to Digital Assets Act

Commissioner Kent provided a general description of the proposed legislation. Many people now hold most or all of their assets electronically. These assets are password protected making it difficult for administrators in fiduciary roles to get the information they need to fulfill their duties to their clients. In addition, federal privacy laws hinder access to emails and other electronic information that could provide some answers. Reviewing emails, etc. is often the first step for fiduciary personnel in assisting those with protective status or in determining assets during probate.

10:40 AM -- Steve Brainerd, Colorado Bar Association - Trusts & Estates Section, indicated that the proposed law has been on their radar and CBA already has a subcommittee ready to assist the Commission.
10:43 AM -- Marco Chayet, Colorado Bar Association - Trusts & Estates Section, confirmed that the CBA group is formed and will start meeting in September. He also indicated that there seems to be a consensus that this legislation is necessary.

The Commission agreed to move forward with the proposed legislation and asked that the Colorado Bar Association have comments on the proposed legislation ready for the December meeting when the final decision for approving the draft for introduction in 2015 will be made.

10:49 AM -- Recognition of Substitute Decision-making Documents Act

Commissioner Kent provided a general description of the proposed legislation. There is a growing need for the recognition of powers of attorney and other substitute decision-making documents across state lines and some international jurisdictions in order to to increase the portability and usefulness of such documents -- especially for military personnel. The legislation is meant to fit within the current uniform powers laws. The ULC act is already available on the ULC website for anyone interested in reading it. The Commission will be moving forward with this legislation so any interested persons should bring comments to the December meeting for consideration before the final decision is made to approve the draft for introduction in 2015.

10:53 AM -- Revisions to the Uniform Common Interest Ownership Act Section 3-116

Commissioners Morris and Mielke explained that the revisions are regarding a specific time period and the priorities of liens for unpaid common expenses owed and currently going unpaid to homeowners' associations during foreclosures. Units under foreclosure are not paying their portions of HOA dues and the costs of these outstanding maintenance expenses are being shifted to other unit owners to cover because the HOA has no priority to get payment money from the source. The Commission pointed out that these changes were proposed to address problems from the recent recession but the legislation is still necessary.

11:00 AM -- Dan Sweetser, Colorado Bar Association - Real Estate Section, indicated that there are concerns about unintended consequences from the law and this legislation should be considered carefully.
11:03 AM -- Candyce Cavanagh, Community Associations Institute - Colorado Legislative Action Committee (CAI-CLAC), confirmed that there currently is no recourse available for HOAs and indicated that there was some support for the legislation.

Commissioner Gardner mentioned that this act generated a lot of discussion at the national convention and that it may be questionable for moving forward through the general assembly this year. Commissioner Mielke encouraged those supporting the legislation to find a sponsor to help the Commission move it forward. Final decisions on approving legislation for introduction in 2015 will be made at the December meeting so all interested parties should be prepared to share their comments at that meeting.

11:08 AM -- Interstate Family Support Act Amendments (2008)

Commissioner McGihon briefly summarized some of the proposed changes needed to update the uniform act for the processing of international child support cases and indicated that the Commission will be considering it at the December meeting for introduction in 2015.

11:10 AM -- John DeBruyn, Colorado Bar Association - Business Law Section, indicated that the CBA is already looking into putting a group together to review and comment on the proposed legislation.

11:12 AM -- Other business

Commissioner Morris announced that an email went out to current legislators who are attorneys regarding openings on the Commission. Commissioner McGihon also invited input from the Colorado Bar Association regarding possible suggestions for appointments.
The Commission determined that the December meeting would be at 10:00 a.m. on Tuesday, December 9. Sponsors outside of the current Commission members will need to be found for all legislation approved for introduction.
Commissioners announced some of the newly formed ULC study and drafting committees that Colorado Commissioners will be participating on and requested input from interested parties on draft legislation as it becomes available.
11:08 AM -- Interstate Family Support Act Amendments (2008)

Commissioner McGihon briefly summarized some of the proposed changes needed to update the uniform act for the processing of international child support cases and indicated that the Commission will be considering it at the December meeting for introduction in 2015.

11:10 AM -- John DeBruyn, Colorado Bar Association - Business Law Section, indicated that the CBA is already looking into putting a group together to review and comment on the proposed legislation.