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First Regular Session

Sixty-first General Assembly

LLS NO. R97@0804.01





WHEREAS, Recent federal and state court cases interpreting laws governing membership in credit unions have raised legal issues with respect to the common bond requirements of credit unions in this state; and

WHEREAS, The public policy of this state is to preserve and promote sound and constructive competition among financial services institutions and to continue to encourage diversity in financial products and services for the benefit of Colorado citizens; and

WHEREAS, Sound public policy regarding financial services requires a thorough analysis of all financial institutions because of the technological advances in products and services; now, therefore,

Be It Resolved by the House of Representatives of the Sixty­first General Assembly of the State of Colorado, the Senate concurring herein:

(1)  That the Legislative Council shall appoint a committee to meet in the interim after the 1997 Regular Session of the General Assembly to study the fairness in competition in the financial services market in Colorado in order to recommend legal adjustments, if necessary, to assure that consumers are benefiting from fair competition in the financial services marketplace. Such interim committee shall consist of ten members of the General Assembly. The Legislative Council shall appoint five members of the Senate and five members of the House of Representatives and shall designate a chairperson and vice­chairperson of the interim committee. The interim committee may consider, but need not be limited to, the following:

(a)  The current market share among the various financial services institutions in this state and the opportunity for growth among all of the entities;

(b)  The legal limitations currently placed on the ability of financial services institutions to grow and compete;

(c)  The initial legislative intent of the role of credit unions, banks, and other financial services institutions in the consumer financial marketplace and how each financial services institution has grown and changed in its service area;

(d)  The purpose for the establishment of the tax structure of financial services institutions and the unfairness, if any, to consumers and to taxpayers, of such tax status;

(e)  The regulatory requirements placed on the different types of financial services institutions and the reasons for any differences;

(f)  The policies of the Colorado Divisions of Financial Services and Banking and the manner in which those agencies approve expansions of financial services institutions, the types of formal opposition thereto, the level of public involvement in such proceedings, and the degree to which formal opposition and input is allowed;

(g)  The financial soundness of the different types of financial services institutions and the subsequent risk to depositors and taxpayers as determined by the level of deposit insurance coverage on accounts; and

(h)  The relevant issues concerning safety and soundness of credit unions related to potential changes in credit union common bond requirements.

(2)  That, in conducting such study, the interim committee may consult, as may be required, with the Colorado Divisions of Financial Services and Banking and interested members of the public. The study shall not require additional staff for any agency or any additional appropriation to any agency.

(3)  That the Legislative Council shall report its findings and recommendations to the 1998 Regular Session of the Sixty­first General Assembly.

(4)  That all expenditures incurred in the conduct of the study enumerated in this resolution shall be approved by the chairperson of the Legislative Council and paid by vouchers and warrants drawn as provided by law from funds allocated to the Legislative Council from appropriations made by the General Assembly.