NOTE: The governor signed this measure on 4/7/2014.
      
      
      HOUSE BILL 14-1274
      
      
      BY REPRESENTATIVE(S) Kraft-Tharp and Holbert, Fields, Ginal,
      Hullinghorst, Labuda, Priola, Rosenthal, Schafer, Tyler;
      also SENATOR(S) Jahn, Heath, King.
      
      
      Concerning the modification of certain limitations on the
           managers of a bank chartered by Colorado.
       
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  Legislative declaration. (1)  The general assembly
      hereby:
      
           (a)  Finds that to preserve the value of a state-issued banking charter,
      Colorado's banking laws should be consistent with those of other states;
      
           (b)  Determines that this consistency will encourage bank owners to
      establish their banking headquarters in Colorado; and
      
           (c)  Declares that this act is intended to thereby provide additional
      jobs and revenue for the state.
      
           SECTION 2.  In Colorado Revised Statutes, 11-103-501, amend
      (1) and (6) as follows:
      
           11-103-501.  Directors and officers. (1)  The affairs of a state bank
      shall be managed by a board of directors, which shall exercise its powers
      and be responsible for the discharge of its duties. The number of directors,
      not less fewer than three nor more than twenty-five, shall be as fixed by
      the bylaws, and the number so fixed shall be the board, regardless of
      vacancies. At least three-fourths of the directors shall be citizens of the
      United States two-thirds and a majority shall be residents of this state.
      and a majority shall reside within one hundred miles of the place of
      business of the bank; except that, if the bank is organized solely to do
      business with other financial institutions, is owned primarily by the
      financial institutions with which it does business, and does not do business
      with the general public, at least three-fourths of the directors shall be
      citizens of the United States and a majority shall be residents of this state.
      A director need not own shares. No director may serve who has been
      convicted of fraud involving any financial institution or of a felony, but the
      banking board may waive this provision regarding a felony if it determines
      that the particular felony does not jeopardize the person's ability to act as
      a director. A director who is disqualified may be removed by the board of
      directors or by the banking board. No action taken by a director prior to his
      or her resignation or removal shall be subject to attack on the ground of his
      or her disqualification.
      
           (6)  The officers designated by the bylaws shall be elected by the
      board of directors. A member of the board of directors shall be elected
      president. No officer shall be elected or a contract executed for the officer's
      employment, for a period longer than one year. No person may be
      employed as an officer of a state bank who has been convicted of fraud
      involving any financial institution or of a felony, but the banking board
      may waive this provision regarding a felony if it determines that the
      particular felony does not jeopardize the person's ability to act as an officer.
      An officer may be removed by the board of directors at any time, but
      removal shall not prejudice any rights that the officer may have to damages
      for breach of contract of employment, unless the officer falsely answered
      any question or made any material misstatement of facts relating to any
      matter leading to or constituting any inducement to such employment.
      
           SECTION 3.  Act subject to petition - effective date -
      applicability. (1)  This act takes effect at 12:01 a.m. on the day following
      the expiration of the ninety-day period after final adjournment of the
      general assembly (August 6, 2014, if adjournment sine die is on May 7,
      2014); except that, if a referendum petition is filed pursuant to section 1 (3)
      of article V of the state constitution against this act or an item, section, or
      part of this act within such period, then the act, item, section, or part will
      not take effect unless approved by the people at the general election to be
      held in November 2014 and, in such case, will take effect on the date of the
      official declaration of the vote thereon by the governor.
      
           (2)  This act applies to conduct occurring on or after the applicable
      effective date of this act.
      
      
      
      
      ________________________________________________________
      Mark Ferrandino                        Morgan Carroll
      SPEAKER OF THE HOUSE                     PRESIDENT OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
      
      
      ____________________________  ____________________________
      Marilyn Eddins                      Cindi L. Markwell
      CHIEF CLERK OF THE HOUSE                 SECRETARY OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO