SENATE 3rd Reading Unamended April 16, 2015 SENATE Amended 2nd Reading April 15, 2015First Regular Session Seventieth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 15-0721.02 Thomas Morris x4218 SENATE BILL 15-181 SENATE SPONSORSHIP Woods, Holbert, Marble, Neville T., Cooke, Baumgardner, Grantham HOUSE SPONSORSHIP Saine and Joshi, Van Winkle Senate Committees House Committees Judiciary Appropriations A BILL FOR AN ACT Concerning the appointment of receivers. 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 specifies that, notwithstanding any other provision of law or court rule, and unless otherwise provided for by contract: A court order granting or denying a motion or complaint for the appointment, removal, replacement, or retention of a receiver: Can be granted for the appointment or retention of a receiver only upon a showing of clear and convincing evidence, and, if granted, expires in the absence of the required showing from a proponent of the receivership, and must require the receiver to post a bond and to submit periodic reporting to the court and parties no less frequently than annually; and May be appealed on an interlocutory basis to the court of appeals, which must review the matter de novo on an expedited basis. The receivership estate must pay the costs and fees associated with the appeal. A receiver is not immune from liability for gross negligence or willful breach of duty. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 13-1-109.5 as follows: 13-1-109.5. Receivers. (1) Notwithstanding any other provision of law or court rule, and unless the right to have a receiver appointed is provided by contract: (a) A court order granting or denying a motion or complaint for the appointment, removal, replacement, or retention of a receiver: (I) Shall be determined within ninety-one days after the filing of the complaint or motion. A court's failure to rule on the filing within ninety-one days after submission results in the immediate discharge of the receiver if one has previously been appointed. Nothing in this subparagraph (I) prevents the court from subsequently entering an order that appoints a receiver. (II) If made for the appointment or retention of a receiver: (A) Must require the receiver to post a bond and to submit periodic reporting to the court and parties no less frequently than annually. The report must address whether the reasons for appointing or retaining the receiver, as set forth in the original or subsequent order, continue to apply. (B) Can be granted only upon a showing of clear and convincing evidence by written evidentiary submission, a hearing, or both; and (C) Expires unless the court finds that a proponent of the receivership has met the evidentiary standard specified in sub-subparagraph (B) of this subparagraph (II); and (III) May be appealed on an interlocutory basis to the court of appeals, which shall review the matter on an expedited basis. (b) A receiver is not immune from liability for gross negligence or willful breach of duty. (2) This section applies to all receiverships, whether appointed before, on, or after the effective date of this section; except that this section does not apply to: (a) A receiver or receivership proceeding sought pursuant to the motion or complaint of a common interest community, as that term is defined in section 38-33.3-103 (8), C.R.S.; (b) A receiver or receivership proceeding that is sought in county court; (c) A receiver or receivership proceeding that is sought for property worth less than fifteen thousand dollars; (d) A receiver or receivership proceeding that is sought by a creditor holding a security interest, mortgage, deed of trust, or judgment lien on any property, real or personal, that is sought to be placed in receivership; (e) A receiver or receivership proceeding that is sought by any division or official of the department of regulatory agencies, including the securities commissioner, banking board, or commissioner of banking; or (f) A receiver or receivership proceeding sought by the Colorado attorney general. SECTION 2. Applicability. This act applies to conduct occurring on or after the effective date of this act. 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.