HOUSE 3rd Reading Unamended April 9, 2014 HOUSE Amended 2nd Reading April 8, 2014 Second Regular Session Sixty-ninth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 14-0333.01 Bart Miller x2173 HOUSE BILL 14-1127 HOUSE SPONSORSHIP Coram, SENATE SPONSORSHIP Hodge, House Committees Senate Committees Judiciary Finance Appropriations A BILL FOR AN ACT Concerning disclosure of information for asset recovery, and, in connection therewith, making an appropriation. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) The bill allows a judgment creditor to file a petition in court to compel the department of labor and employment to disclose certain information about a judgment debtor. Judgment creditors must follow federal requirements for protecting any information disclosed and may not share it with other persons. A civil penalty of $1,000 may be assessed against a judgment creditor who fails to comply with these requirements. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 12-14-127.5 as follows: 12-14-127.5. Disclosure of information for asset recovery - court order - procedures - restrictions on use of information - penalties. (1) The department of labor and employment shall disclose to a judgment creditor of a person the name and address of the person's current employer, or employers if more than one, as contained in the department's wage and employment information database, if the judgment creditor: (a) Has obtained a judgment against the person from a court of competent jurisdiction; (b) Obtains a court order requiring the disclosure of information in accordance with subsection (2) of this section; and (c) Complies with requirements of subsection (3) of this section. (2) A court that enters a money judgment against an individual shall, regardless of whether the judgment creditor has exhausted other remedies, grant an order requiring the department of labor and employment to disclose the name and address of the judgment debtor's current employer or employers if: (a) The judgment creditor files a motion with the court and serves a copy of the motion on the judgment debtor if required by the Colorado rules of civil procedure; and (b) If the judgment debtor opposes the motion, the court holds a hearing within fourteen days after the filing of a timely objection and denies or overrules the objection. (3) When a court order is granted, the judgment creditor shall: (a) Provide to the department of labor and employment a certified copy of the court order requiring disclosure; (b) (I) Pay the department of labor and employment a reasonable fee that reflects the actual cost of processing the request as determined in rules adopted by the department under section 24-4-103, C.R.S. The department shall transfer all fees collected under this subparagraph (I) to the state treasurer, who shall credit the moneys to the judgment debtor disclosure fund created in section 24-1-121, C.R.S. (II) The fee paid under subparagraph (I) of this paragraph (b) may be recovered by the judgment creditor as a taxable litigation cost. (c) Comply with the data safeguard and security measures described in 20 C.F.R. 603.9 with respect to information received from the department under this section. (4) If a judgment creditor complies with subsection (3) of this section, the department of labor and employment shall provide the information to the judgment creditor within seven business days after the day the department receives the court order. (5) A judgment creditor may not: (a) Use the information obtained under this section for a purpose other than satisfying the judgment between the judgment creditor and the judgment debtor; or (b) Share the information with any other person. (6) The department of labor and employment, with just cause and at its own expense, may audit a judgment creditor receiving information under this section for compliance with the data safeguard and security measures of 20 C.F.R. 603.9. (7) If a judgment creditor fails to comply with the data safeguard and security measures under 20 C.F.R. 603.9, the judgment creditor, after a court finding of noncompliance, is subject to a civil penalty of not more than one thousand dollars for each violation as follows: (a) The attorney general, on the attorney general's behalf or on behalf of the department of labor and employment, may file an action in district court to seek and enforce the civil penalty; and (b) The prevailing party is entitled to an award of its reasonable attorney fees, court costs, and investigative expenses. (8) When collecting on any debt arising from past due orders, obligations, fines, or fees due to the state or any political subdivision within the state, any fees or costs of privately retained counsel or a collection agency are added to the amount due and placed for collection, whether or not the debt is reduced to judgment. Exclusive of the accrual of interest, any fees or costs must not exceed twenty-five percent of the amount to be collected, unless additional reasonable attorney fees are awarded by the court. SECTION 2. In Colorado Revised Statutes, 12-14-136, amend (2) as follows: 12-14-136. Disposition of fees - civil penalties - fines - collection agency cash fund - creation. (2) All civil penalties and fines collected pursuant to this article, including but not limited to civil penalties collected under section 12-14-127.5 and fines collected pursuant to under section 12-14-130, shall be collected by the administrator and transmitted to the state treasurer, who shall credit the same to the general fund. SECTION 3. In Colorado Revised Statutes, 24-1-121, add (1.7) as follows: 24-1-121. Department of labor and employment - creation. (1.7) There is hereby created in the state treasury the judgment debtor disclosure fund. The fund consists of moneys from fees collected under section 12-14-127.5, C.R.S., for requests for disclosure of current employer information on judgment debtors. The moneys in the fund are subject to annual appropriation by the general assembly for the direct and indirect costs of the department of labor and employment processing requests for disclosure of current employer information on judgment debtors under section 12-14-127.5, C.R.S. The state treasurer shall credit all interest derived from the deposit and investment of moneys in the fund to the fund. At the end of any fiscal year, all unexpended and unencumbered moneys in the fund remain in the fund and are not transferred to the general fund or any other fund. SECTION 4. Appropriation. (1) In addition to any other appropriation, there is hereby appropriated, out of any moneys in the judgement debtor disclosure fund created in section 24-1-121 (1.7), Colorado Revised Statutes, not otherwise appropriated, to the department of labor and employment, for the fiscal year beginning July 1, 2014, the sum of $233,358 and 4.0 FTE, or so much thereof as may be necessary, to be allocated to the division of unemployment insurance for the implementation of this act as follows: (a) $213,358 and 4.0 FTE for program costs for personal services and operating expenses; (b) $20,000 for the purchase of computer center services. (2) In addition to any other appropriation, there is hereby appropriated, out of any moneys in the judicial stabilization cash fund created in section 13-32-101 (6), Colorado Revised Statutes, not otherwise appropriated, to the judicial department, for the fiscal year beginning July 1, 2014, the sum of $228,738 and 3.0 FTE, or so much thereof as may be necessary, to be allocated to the trial courts for the implementation of this act as follows: (a) $221,138 and 3.0 FTE for trial court programs for personal services; and (b) $7,600 for trial court programs for operating expenses. (3) In addition to any other appropriation, there is hereby appropriated, out of any moneys in the judicial stabilization cash fund created in section 13-32-101 (6), Colorado Revised Statutes, not otherwise appropriated, to the judicial department, for the fiscal year beginning July 1, 2014, the sum of $70,656, or so much thereof as may be necessary, to be allocated for courthouse capital expenses related to the implementation of this act. (4) In addition to any other appropriation, there is hereby appropriated to the governor - lieutenant governor - state planning and budgeting, for the fiscal year beginning July 1, 2014, the sum of $20,000, or so much thereof as may be necessary, for allocation to the office of information technology, for the provision of computer center services for the department of labor and employment related to the implementation of this act. Said sum is from reappropriated funds received from the department of labor and employment out of the appropriation made in paragraph (b) of subsection (1) of this section. SECTION 5. 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.