Date: 01/23/2006

Final
BILL SUMMARY for HB06-1042

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes: View--> Action Taken:
Refer House Bill 06-1042 to the Committee of the WPASS



02:35 PM -- House Bill 06-1042

Representative Kerr, prime sponsor, explained that House Bill 06-1042 removes redundant and/or obsolete language from the Bank Electronic Funds Act. He distributed two handouts: a copy of Section 11-105-208, C.R.S. (Attachment C) and a letter of support from the Colorado Department of Regulatory Agencies (DORA) (Attachment D). Representative Kerr explained that the Act was created in 1977, and was originally aimed at ATMs, which at the time were considered branch banking and now are not. Representative Kerr stated that now the enabling provisions are redundant and the bill is needed to clean up the old statute and simplify it. There were questions and a discussion amongst the committee about the bill removing consumer protection provisions.
02:41 PM -- Richard Fulkerson, Colorado Division of Banking, DORA, testified in support of the bill. He stated that the intent of the bill is to remove obsolete provisions. He responded to the committee's questions regarding the sections of the bill that deal with consumer protection. He explained that the fees and charges in the bill are directed to banks charging other banks for using their facility and not the consumer. Mr. Fulkerson added that a significant portion of the Act was preempted about five years ago. Representative Carroll stated her concerns about removing the consumer protection portions of the Act such as the: district court's jurisdiction, the privacy law, fair and equitable charges, and the removal of the bank board's power. Mr. Fulkerson responded to Representative Carroll's concerns and there was some discussion on the powers of the bank board. When asked what the harm is in keeping the statute the way it is, Mr. Fulkerson replied that there is no harm, but the bill streamlines the banking code and makes it more understandable.
03:00 PM -- Don Childears, representing the Colorado Banking Association, testified in support of the bill. He explained that is was a housekeeping bill and addressed the committee's concerns on consumer protection.
BILL:HB06-1042
TIME: 03:02:45 PM
MOVED:Knoedler
MOTION:Refer House Bill 06-1042 to the Committee of the Whole. The motion passed 10-3.
SECONDED:Balmer
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
No
Carroll M.
No
Coleman
No
Knoedler
Yes
Liston
Yes
McCluskey
Yes
Paccione
Yes
Penry
Yes
Welker
Yes
Cerbo
Yes
Marshall
Yes
Final YES: 10 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS



03:07 PM -- The Committee Adjourned.