Date: 01/26/2006

Final
BILL SUMMARY for HB06-1137

HOUSE COMMITTEE ON JUDICIARY

Votes: View--> Action Taken:
Adopt L.001, severed section 2 (Attachment J; page
Adopt L.001, severed section 3 (Attachment J; page
Move Amendment L.001 (Attachment J). At the reque
Refer HB 06-1137, as amended, to the Committee of
Substitute motion to adopt Amendment L.002 (Attach
Substitute motion to adopt Amendment L.002 (Attach
TIE
Pass Without Objection
TIE
PASS
PASS
TIE
Pass Without Objection


05:20 PM -- House Bill 06-1137

Representative Judd, prime sponsor, walked the committee through HB 06-1137, which makes several changes to state probate law. The bill clarifies how and when claims for a deceased person's estate can be made, what constitutes a valid claim for a conservator's estate, and the application of the rule against perpetuities when dealing with trusts. (According to the sponsor, the rule against perpetuities is a concept that puts a time limit on how long ownership of property can be in suspense). Also, the bill changes residency requirements for public administrators of an estate, makes the Total Return Trust statute comply with federal regulations regarding unitrusts, allows for certain assets to be retrieved when a deceased person's estate is insolvent (in order to pay claims to the person's surviving spouse or children), and creates definitions and procedures for non-Colorado residents to manage a deceased relative's estate that is located in Colorado.

The sponsor reviewed Sections 13 through 18 of the bill (regarding insolvent estates and retrieving other assets, including insurance policies, to pay claims) and explained why the provisions are necessary. He responded to questions from the committee. Committee members were provided with Amendments L.001 (Attachment J), L.002 (Attachment K), and L.003 (Attachment L). The chairman asked that witnesses limit their testimony to two minutes each.

The following people testified on the bill:

05:44 PM -- Mr. Justin Dituri, representing himself as a practicing attorney, spoke against Section 13 of the bill. He responded to questions from the committee.

05:51 PM -- Mr. Carl Stevens, representing himself as a practicing attorney, spoke against Section 13 of the bill, stating that in some instances it may be helpful and in other instances there may be problematic consequences He discussed options for addressing the issue, if it were to arise, and the pros and cons of potential solutions. He also spoke in support of the Amendment L.003 (Attachment L). He and Representative Judd responded to questions from the committee.

05:56 PM -- Mr. Wayne Stewart, representing himself as a practicing attorney, spoke against including insurance proceeds as an eligible asset under the provisions of Section 13 of the bill. He indicated that this provision is unnecessary because it is unlikely to occur, and described some adverse consequences that may result if the provision remains in the bill. He voiced support for the rest of the bill and Amendment L.002 (Attachment K).

06:02 PM -- Mr. Bob Steenrod, representing the Probate and Trust Law Section of the Colorado Bar Association (CBA), indicated that he helped draft the bill and commented that the CBA Probate and Trust Law Section has not taken a position on the insurance proceeds provision. He offered to clarify the bill's provisions and prior testimony, and responded to questions from the committee.

06:08 PM -- Mr. John DeBruyn, representing the Colorado Bar Association, spoke in favor of the bill.


06:10 PM

The chairman closed the public testimony portion of the hearing, and the committee began considering amendments.
BILL:HB06-1137
TIME: 06:10:14 PM
MOVED:Judd
MOTION:Move Amendment L.001 (Attachment J). At the request of the sponsor following a substitute motion to adopt Amendment L.002 (see below), the chair severed the amendment into three sections: severed section 1 (page 1, line 1 through page 6, line 19); severed section 2 (page 6, line 20 through page 7, line 18); and severed section 3 (page 7, line 19 through page 9, line 10). A subsequent motion to adopt L.001, severed section 1, passed without objection.
SECONDED:Carroll M.
VOTE
Boyd
Clapp
Decker
Gardner
Hefley
Jahn
Judd
McGihon
Witwer
Carroll M.
Carroll T.
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

Mr. Richard Sweetman and Mr. Michael Dohr, both of the Office of Legislative Legal Services, came to the table to respond to questions about where to sever L.001.

BILL:HB06-1137
TIME: 06:29:51 PM
MOVED:Judd
MOTION:Adopt L.001, severed section 3 (Attachment J; page 7, line 19 through page 9, line 10). The motion passed without objection.
SECONDED:Carroll M.
VOTE
Boyd
Clapp
Decker
Gardner
Hefley
Jahn
Judd
McGihon
Witwer
Carroll M.
Carroll T.
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB06-1137
TIME: 06:25:22 PM
MOVED:Judd
MOTION:Adopt L.001, severed section 2 (Attachment J; page 6, line 20 through page 7, line 18). The motion failed when the substitute motion to adopt Amendment L.002 (Attachment K) passed (see below).
SECONDED:Carroll M.
VOTE
Boyd
Clapp
Decker
Gardner
Hefley
Jahn
Judd
McGihon
Witwer
Carroll M.
Carroll T.
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: TIE
BILL:HB06-1137
TIME: 06:25:26 PM
MOVED:Gardner
MOTION:Substitute motion to adopt Amendment L.002 (Attachment K) instead of L.001, severed section 2 (Attachment J; page 6, line 20 through page 7, line 18). The substitute motion carried on a vote of 6 to 5.
SECONDED:Hefley
VOTE
Boyd
No
Clapp
Yes
Decker
Yes
Gardner
Yes
Hefley
Yes
Jahn
No
Judd
No
McGihon
No
Witwer
Yes
Carroll M.
Yes
Carroll T.
No
Not Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS
BILL:HB06-1137
TIME: 06:13:15 PM
MOVED:Gardner
MOTION:Substitute motion to adopt Amendment L.002 (Attachment K). The sponsor asked the chair to sever Amendment L.001 (Attachment J). At the request of the chair, the substitute motion was withdrawn in order to sever the amendment.
SECONDED:Carroll M.
VOTE
Boyd
Clapp
Decker
Gardner
Hefley
Jahn
Judd
McGihon
Witwer
Carroll M.
Carroll T.
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: TIE
BILL:HB06-1137
TIME: 06:31:33 PM
MOVED:Judd
MOTION:Refer HB 06-1137, as amended, to the Committee of the Whole. The motion carried unanimously.
SECONDED:Carroll M.
VOTE
Boyd
Yes
Clapp
Yes
Decker
Yes
Gardner
Yes
Hefley
Yes
Jahn
Yes
Judd
Yes
McGihon
Yes
Witwer
Yes
Carroll M.
Yes
Carroll T.
Yes
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS