Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Date:03/24/2006
ATTENDANCE
Time:08:02 AM to 12:27 AM
Balmer
*
Borodkin
X
Place:HCR 0107
Butcher
X
Carroll M.
*
This Meeting was called to order by
Coleman
*
Representative Marshall
Knoedler
X
Liston
*
This Report was prepared by
McCluskey
X
Susan Liddle
Paccione
E*
Penry
X
Welker
X
Cerbo
X
Marshall
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
SB06-071
SB06-091
SB06-040		Referred to the Committee of the Whole
Referred to the Committee of the Whole
Taken off table


08:03 AM -- Senate Bill 06-071

Representative Massey explained SB 71 which prohibits certain deceptive and unconscionable business practices. He mentioned that on the floor he would be offering an amendment to further tweak the bill to conform it to a proposed bill awaiting introduction.

The following individuals testified:

08:05 AM -- John Suthers, Colorado Attorney General, explained why this bill is needed. He provided a history of foreclosures in Colorado. He discussed a practice where foreclosure consultants research who is in foreclosure and whether there is any equity in the home, and then bombard the homeowners who are in foreclosure with calls and mailings, and eventually intimidate the homeowner into signing paperwork that includes a quick claim deed that essentially transfers ownership of the home to the foreclosure consultant. He added that there are legitimate foreclosure businesses out there, but this bill is addressing the people who take advantage of other people. Attorney General Suthers responded to committee questions and comments.

08:14 AM -- Jan Zavislan, Deputy Attorney General for Consumer Protection, Colorado Attorney General's Office, spoke in support of the bill. He stated that he has worked with public officials who can attest to the significant distress caused by wrongful foreclosure practices on homeowners. He discussed the definition of "foreclosure consultant" and "equity purchaser" that are both used in the bill, and what the bill requires of these individuals. He discussed the abuses that occur especially with individuals who are not native English speakers. He touched on a proposed amendment that Representative Massey mentioned he was planning on offering on second reading. He continued walking through the sections of the bill, and what protections the bill is giving homeowners who are facing foreclosure.


08:27 AM -- Mr. Zavislan continued walking through the provisions of the bill, responded to questions, and further clarified some of the provisions of the bill. He discussed the section of the bill related to reconveyance which allows a homeowner to lease their property back and then be offered the opportunity to "buy back" their own house at a very inflated price that is often higher than the mortgage that was in default. He referenced amendment L.007 (Attachment A) which clarifies that a property owner has the right to cure the loan in default, and further refines the requirements of equity purchasers, but stated that the sponsor was planning on offering a revised version of this amendment on the floor.


08:36 AM

The committee asked Mr. Zavislan additional questions on the provisions of the bill. There was discussion about how to make the public aware of the dangers of foreclosure fraud and the protections that this bill will provide. Mr. Zavislan stated that the Attorney General's Task Force members will be invaluable in helping to pass the word to the public about the new requirements.

08:47 AM -- Becky Creighton, National Association of Home Rebuilders and Investors, and a local real estate investor, spoke in support of the bill.

08:49 AM -- Cameron Graham, representing AARP, spoke in support of the bill.

08:52 AM -- John Head, representing himself as a trial lawyer who assists people who are being taken advantage of by unscrupulous equity purchasers, spoke in support of the bill. He suggested that the rescission period currently in the bill is too short and that he hoped that this could be fixed in an amendment.

08:57 AM

Due to the shortness of time before the committee members needed to be on the House floor, the following individuals stood up, introduced themselves, and indicated their support of the bill.

• Scott Meiklejohn, Colorado Association of Mortgage Brokers;
• Roxy Huber, Colorado County Treasurer's Association and Public Trustees;
• Zachary Urban, Colorado Housing Counseling Coalition;
• Chris Holbert Colorado Mortgage Lenders Association;
• Peg Ackerman, Colorado County Sheriffs; and
• The Bell Policy Center distributed a handout indicating their support of the bill - Attachment B


8:59 AM

Representative Coleman commented on Mr. Head's suggestions related to the length of the recision period.
BILL:SB06-071
TIME: 08:59:16 AM
MOVED:Balmer
MOTION:Moved to refer SB 71, unamended, to the Committee of the Whole. The motion passed 12-0.
SECONDED:Coleman
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
Yes
Liston
Yes
McCluskey
Yes
Paccione
Excused
Penry
Yes
Welker
Yes
Cerbo
Yes
Marshall
Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

09:02 AM -- Recess

The committee recessed and will return upon adjournment of the House.

12:01 AM -- Reconvene

12:02 AM -- Senate Bill 06-091

Representative Riesberg discussed SB 06-091 which would prohibit trading in telephone records which includes the unauthorized buying or selling of a person's telephone information.



12:05 AM

Greg Romberg, representing Sprint/Nextel, spoke in support of the bill. He mentioned that Sprint/Nextel is currently suing two people who have received this type of information fraudulently.

12:10 PM

The committee asked Representative Reisberg questions, specifically about what unauthorized access to phone records means. He responded and made concluding remarks on the bill.
BILL:SB06-091
TIME: 12:10:57 AM
MOVED:Marshall
MOTION:Moved to refer SB 91, unamended, to the Committee of the Whole. The motion passed 12-0.
SECONDED:Borodkin
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
Yes
Liston
Yes
McCluskey
Excused
Paccione
Yes
Penry
Yes
Welker
Yes
Cerbo
Yes
Marshall
Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


12:10 PM -- Recess


12:15 PM -- Senate Bill 06-040

The committee re-visited Senate Bill 40 which was previously heard on March 15 and again on March 20. The bill requires contracts that automatically renew and bill to a credit card to clearly and conspicuously disclose:
At the March 20 hearing, a motion to refer the bill, as amended, to the Committee of the Whole failed on a 6-6 tie vote. The Chairman pulled the bill off the table at that time. There was committee discussion about whether additional amendments can be made to the bill. Amendments L.007 and L.008 were adopted at the March 20 meeting (Attachments C and D). Chairman Marshall ruled that the amendment phase could be reopened, then she moved to strike amendment L.008 which had previously been adopted on March 20.
BILL:SB06-040
TIME: 12:22:33 PM
MOVED:Marshall
MOTION:Moved to strike amendment L.008. The motion passed without objection.
SECONDED:Carroll M.
VOTE
Balmer
Borodkin
Butcher
Carroll M.
Coleman
Knoedler
Liston
McCluskey
Paccione
Penry
Welker
Cerbo
Marshall
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

12:22 PM

Representative Penry moved a conceptual amendment that the exemption in the bill apply to banks as well as insurance companies. The committee discussed the fact that it was financial institutions that had expressed the desire to have the expansion of the exemption, not the banks.


12:25 PM

Representative Butcher moved, seconded by Representative Carroll, to refer the bill, as presently amended, to the Committee on Finance.

Chairman Marshall stated that due to the confusion with the bill at this point, and since the bill sponsor was not present at the hearing, that she was again taking Senate Bill 40 off the table.

12:27 PM

The committee adjourned.