NOTE:  This bill has been prepared for the signature of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
      history, or the Session Laws.
      
      
      SENATE BILL 07-040
      
      
      BY SENATOR(S) Tochtrop;
      also REPRESENTATIVE(S) Marshall, Carroll T., Kerr A., Labuda,
      Madden, McFadyen, McGihon, Solano, and Soper.
      
      
      Concerning the prohibition of a financial institution from
           conducting operations on the premises of an affiliate
           engaged in nonfinancial activities.
       
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  11-101-401, Colorado Revised Statutes, is amended
      BY THE ADDITION OF THE FOLLOWING NEW SUBSECTIONS to
      read:
      
           11-101-401.  Definitions.  As used in this code, unless the context
      otherwise requires:
      
           (3.5)  "Affiliate" means any company that directly or
      indirectly controls, is controlled by, or is under common control
      with another company.
      
           (16.5)  "Commercial activities" means activities in which a
      bank holding company, a financial holding company, a national
      bank, or a national bank financial subsidiary may not engage
      under federal law.
      
           SECTION 2.  11-105-602 (3), Colorado Revised Statutes, is
      amended BY THE ADDITION OF A NEW PARAGRAPH to read:
      
           11-105-602.  Financial branches allowed - conversion of financial
      institutions to branches - acquisitions.  (3) (b.5) (I)  No financial
      institution may directly or indirectly establish or maintain or
      cause to be established or maintained its principal office, a loan
      production office, a deposit production office, an electronic
      communications device, or a branch in this state on or within one
      and one-half miles from premises or property owned, leased, or
      otherwise controlled, directly or indirectly, by an affiliate that
      engages in commercial activities.
      
           (II)  This paragraph (b.5) shall not apply with respect to any
      industrial bank that:
      
           (A)  Became an insured depository institution before
      October 1, 2003, or pursuant to an application for deposit
      insurance that was approved by the federal deposit insurance
      corporation before such date; and
      
           (B)  Is a subsidiary of a parent entity, at least eighty-five
      percent of whose gross revenues on a consolidated basis,
      including affiliates, were derived from engaging in, on an ongoing
      basis, activities that are financial in nature or incidental to a
      financial activity, as defined by the federal "Gramm-Leach-Bliley
      Financial Modernization Act", Pub.L. 106-102, 113 Stat. 1388,
      during at least three of the prior four calendar quarters.
      
           SECTION 3.  Safety clause.  The general assembly hereby finds,
      determines, and declares that this act is necessary for the immediate
      preservation of the public peace, health, and safety.
      
      
      
      
      ____________________________  ____________________________
      Joan Fitz-Gerald                      Andrew Romanoff
      PRESIDENT OF                     SPEAKER OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
      
      
      ____________________________  ____________________________
      Karen Goldman                          Marilyn Eddins
      SECRETARY OF                 CHIEF CLERK OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    Bill Ritter, Jr.
                                    GOVERNOR OF THE STATE OF COLORADO