First Regular Session
Sixty-second General Assembly
LLS NO. 99-0507.01 Julie Pelegrin HOUSE BILL 99-1290
STATE OF COLORADO
BY REPRESENTATIVES Kaufman and McElhany;
also SENATOR Evans.
REENGROSSED
JUDICIARY
A BILL FOR AN ACT
101 CONCERNING THE LIMITATION OF CIVIL ACTIONS INVOLVING BREACHES OF
102 FIDUCIARY DUTY.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
Page 2
Amends the "Uniform Fiduciaries Law" to declare that all common
law civil actions for breach of fiduciary obligations shall be limited to
those circumstances in which there is a financial or property-based
relationship between the parties.
States that all common law civil actions for breach of fiduciary
obligation or for vicarious liability arising from a breach of fiduciary
obligation are limited to those circumstances in which a person has been
entrusted with a financial or property interest of another and the person
has violated that trust. Declares that all common law civil actions for
breach of fiduciary obligations except those based upon a violation of a
duty as to a financial or property interest are abolished.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. 15-1-102, Colorado Revised Statutes, is amended
3 to read:
4 15-1-102. Legislative declaration. This part 1 ARTICLE shall be
5 interpreted and construed so as to effectuate its general purpose to make
6 uniform the law of those states which enact it; EXCEPT THAT ALL COMMON
7 LAW CIVIL ACTIONS FOR BREACH OF FIDUCIARY OBLIGATION SHALL BE
8 [LIMITED AS SET FORTH IN SECTION 15-1-113.]
9 SECTION 2. 15-1-113, Colorado Revised Statutes, is amended
10 to read:
11 15-1-113. Cases not provided for in law. (1) In any case not
12 provided for in this part 1 ARTICLE, the rules of law and equity, including
13 the law merchant and those rules of law and equity relating to trusts,
14 agency, negotiable instruments, and banking, shall continue to apply.
15 [ (2) (a) NOTWITHSTANDING SUBSECTION (1) OF THIS SECTION, ALL
16 COMMON LAW CIVIL CAUSES OF ACTION FOR BREACH OF FIDUCIARY
17 OBLIGATION AGAINST AN INDIVIDUAL ACTING ON BEHALF OF A RELIGIOUS
18 ORGANIZATION ARE LIMITED TO CAUSES OF ACTION AGAINST AN
Page 3
1 INDIVIDUAL WHO HAS BEEN ENTRUSTED WITH AND ACCEPTED A FINANCIAL
2 OR PROPERTY INTEREST OF ANOTHER AND WHO HAS VIOLATED THAT
3 TRUST, OR AGAINST AN INDIVIDUAL IN A POSITION OF TRUST WHO HAS
4 ACTUALLY ENGAGED IN PHYSICAL OR SEXUAL ABUSE OF OR CONDUCT FOR
5 THE PURPOSES OF SEXUAL GRATIFICATION WITH ANOTHER INDIVIDUAL, OR
6 AGAINST A PERSON DESIGNATED AS A FIDUCIARY BY STATUTE.
7 (b) NOTWITHSTANDING SUBSECTION (1) OF THIS SECTION, ALL
8 COMMON LAW CIVIL CAUSES OF ACTION FOR BREACH OF FIDUCIARY
9 OBLIGATION AGAINST A RELIGIOUS ORGANIZATION, OR FOR VICARIOUS
10 LIABILITY AGAINST A RELIGIOUS ORGANIZATION ARISING OUT OF A BREACH
11 OF FIDUCIARY OBLIGATION, ARE LIMITED TO CAUSES OF ACTION AGAINST
12 A RELIGIOUS ORGANIZATION THAT HAS BEEN ENTRUSTED WITH AND
13 ACCEPTED A FINANCIAL OR PROPERTY INTEREST OF ANOTHER AND WHICH
14 HAS VIOLATED THAT TRUST, OR AGAINST A PERSON DESIGNATED AS A
15 FIDUCIARY BY STATUTE.
16 (c) FOR PURPOSES OF THIS SUBSECTION (2), "RELIGIOUS
17 ORGANIZATION" MEANS A RELIGIOUS ORGANIZATION QUALIFIED PURSUANT
18 TO SECTION 501 (c) (3) OF THE FEDERAL INTERNAL REVENUE CODE.]
19 SECTION 3. Effective date. This act shall take effect July 1,
20 1999.
21 SECTION 4. Safety clause. The general assembly hereby finds,
22 determines, and declares that this act is necessary for the immediate
23 preservation of the public peace, health, and safety.