First Regular Session
Sixty-first General Assembly
LLS NO. R97@0804.01
STATE OF COLORADO
BY REPRESENTATIVE Schauer
BUSINESS AFFAIRS AND LABOR
HOUSE JOINT RESOLUTION 97-1046
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.