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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0196.01 BJA SENATE BILL 98­038

STATE OF COLORADO

BY SENATOR Weddig;

also REPRESENTATIVE Owen. REREVISED

FINANCE

A BILL FOR AN ACT

CONCERNING AGREEMENTS TO PAY COMPENSATION FOR THE RECOVERY OF UNCLAIMED PROPERTY.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.)

Authorizes agreements to pay compensation to recover or assist in the recovery of unclaimed property so long as such agreement is entered into more than 24 months after the unclaimed property is paid or delivered to the state treasurer and:

• Such agreement is in writing and signed by the owner of the property;
• Such agreement describes the property to be recovered;
• Such agreement sets forth the nature of the services to be provided;
• For an agreement entered into more than 24 months, but less than 36 months after the unclaimed property is paid or delivered to the state treasurer, the compensation to be paid under the agreement does not exceed 20% of the market value of the recoverable property;
• For agreements entered into 36 months or more after the unclaimed property is paid or delivered to the state treasurer, the compensation to be paid under the agreements does not exceed 30% of the market value of the recoverable property.

Provides that this authorization shall not be construed to prohibit an owner from asserting that such agreement is based on excessive or unjust consideration.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  38­13­128, Colorado Revised Statutes, is amended to read:

38­13­128.  Agreements to locate reported property. (1)  All agreements to pay compensation to recover or assist in the recovery of property reported under section 38­13­110 made ENTERED INTO within twenty­four months after the date payment or delivery is made under section 38­13­112 are unenforceable.

(2)  ANY AGREEMENT TO PAY COMPENSATION TO RECOVER OR ASSIST IN THE RECOVERY OF PROPERTY REPORTED UNDER SECTION 38­13­110 ENTERED INTO MORE THAN TWENTY­FOUR MONTHS, BUT LESS THAN THIRTY­SIX MONTHS, AFTER THE DATE PAYMENT OR DELIVERY IS MADE UNDER SECTION 38­13­112 IS ENFORCEABLE IF:

(a)  THE AGREEMENT IS IN WRITING AND SIGNED BY THE OWNER OF THE PROPERTY;

(b)  THE AGREEMENT DESCRIBES THE PROPERTY TO BE RECOVERED;

(c)  THE AGREEMENT SETS FORTH THE NATURE OF THE SERVICES TO BE PROVIDED; AND

(d)  THE COMPENSATION TO BE PAID UNDER THE TERMS OF THE AGREEMENT IS NOT IN EXCESS OF TWENTY PERCENT OF THE MARKET VALUE OF THE RECOVERABLE PROPERTY.

(3)  ANY AGREEMENT TO PAY COMPENSATION TO RECOVER OR ASSIST IN THE RECOVERY OF PROPERTY REPORTED UNDER SECTION 38­13­110 ENTERED INTO THIRTY­SIX MONTHS OR MORE AFTER THE DATE PAYMENT OR DELIVERY IS MADE UNDER SECTION 38­13­112 IS ENFORCEABLE IF:

(a)  THE AGREEMENT IS IN WRITING AND SIGNED BY THE OWNER OF THE PROPERTY;

(b)  THE AGREEMENT DESCRIBES THE PROPERTY TO BE RECOVERED;

(c)  THE AGREEMENT SETS FORTH THE NATURE OF THE SERVICES TO BE PROVIDED; AND

(d)  THE COMPENSATION TO BE PAID UNDER THE TERMS OF THE AGREEMENT IS NOT IN EXCESS OF THIRTY PERCENT OF THE MARKET VALUE OF THE RECOVERABLE PROPERTY.

(4)  NOTHING IN SUBSECTIONS (2) AND (3) OF THIS SECTION SHALL BE CONSTRUED TO PROHIBIT AN OWNER FROM ASSERTING, AT ANY TIME, THAT A WRITTEN, SIGNED AGREEMENT TO RECOVER OR ASSIST IN THE RECOVERY OF PROPERTY IS BASED ON EXCESSIVE OR UNJUST CONSIDERATION.

(5)  THE RESTRICTIONS ON AGREEMENTS TO PAY COMPENSATION TO RECOVER OR ASSIST IN THE RECOVERY OF PROPERTY SET FORTH IN THIS SECTION SHALL NOT APPLY TO ANY AGREEMENT TO PAY COMPENSATION TO RECOVER OR ASSIST IN THE RECOVERY OF PROPERTY REPORTED UNDER SECTION 38­13­110 IF SUCH PROPERTY HAS A TOTAL VALUE OF LESS THAN ONE THOUSAND DOLLARS.

SECTION 2.  Effective date ­ applicability. (1)  This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety­day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.

(2)  The provisions of this act shall apply to agreements entered into on or after the applicable effective date of this act.