Bill Summary for Bill Number HB09-1053

Date: 01/27/2009

Final
BILL SUMMARY for HB09-1053

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes: View-->	Action Taken:
Moved amendment L.001 (Attachment G). The motion Moved amendment L.002 (Attachment H). The motion Moved amendment L.003 (Attachment I). The motion Moved amendment L.004 (Attachment J). The motion Moved to refer House Bill 09-1053, as amended, to	Pass Without Objection Pass Without Objection Pass Without Objection Pass Without Objection PASS

11:18 AM -- House Bill 09-1053

Representative Balmer, prime sponsor, presented House Bill 09-1053 concerning the regulation of financial institutions under the authority of the banking board. This bill repeals the "Colorado Foreign Capital Depository Act" which regulates how a financial institution can conduct business in Colorado as a foreign capital depository (FCD). In addition, the bill replaces the executive officer of an industrial bank with the executive officer of a licensed money transmitter, on the banking board.

An FCD in the United States is a financial institution chartered by the state to provide financial services to citizens and corporations of foreign countries. In November 2007, the banking board ordered the involuntary liquidation of American Intercapital Holding, LLC, the only FCD operating in Colorado. The board found that an emergency existed that could result in serious losses to depositors. There are no FCDs chartered in Colorado at this time. Representative Balmer talked about the issues that have come up with FCDs and noted that there has only been one FCD in Colorado and discussed the problems they have faced. He offered the following amendments:

Amendment L.001 (Attachment G);

Amendment L.002 (Attachment H);

Amendment L.003 (Attachment I);

Amendment L.004 (Attachment J);

11:26 AM -- Fred Joseph, Colorado Bank Commissioner, explained what an FCD is, and that it is similar to an offshore bank, but in the United States. He walked the committee through the amendments and explained what each one does.

11:36 AM -- Jery Payne, drafter of the bill from the Office of Legislative Legal Services (OLLS), responded to a question from Representative Gagliardi about why the word "regulations" was struck on page 8 of the bill. Representative Balmer explained that OLLS has a charge to update statutes as they write bills and that is just an update to the statute. Mr. Payne explained that in Colorado we use rules and the federal level uses regulations.

11:36 AM

Mr. Joseph continued discussing the amendments.

11:37 AM -- Barbara Walker, representing the Independent Bankers of Colorado, testified on the amendments. She explained that amendment L.002 clarifies the procedure of how safe deposit boxes are garnished to creditors and requires creditors go through the courts and obtain a court order rather than through the bank. Ms. Walker talked about the other amendments.


BILL:	HB09-1053
TIME:	11:43:47 AM
MOVED:	Balmer
MOTION:	Moved amendment L.001 (Attachment G). The motion passed without objection.
SECONDED:	Stephens
		VOTE
	Balmer
	Bradford
	Gagliardi
	Liston
	Priola
	Ryden
	Scanlan
	Soper
	Stephens
	Casso
	Rice

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1053
TIME:	11:44:22 AM
MOVED:	Balmer
MOTION:	Moved amendment L.002 (Attachment H). The motion passed without objection.
SECONDED:	Stephens
		VOTE
	Balmer
	Bradford
	Gagliardi
	Liston
	Priola
	Ryden
	Scanlan
	Soper
	Stephens
	Casso
	Rice

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1053
TIME:	11:44:43 AM
MOVED:	Balmer
MOTION:	Moved amendment L.003 (Attachment I). The motion passed without objection.
SECONDED:	Stephens
		VOTE
	Balmer
	Bradford
	Gagliardi
	Liston
	Priola
	Ryden
	Scanlan
	Soper
	Stephens
	Casso
	Rice

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1053
TIME:	11:45:04 AM
MOVED:	Balmer
MOTION:	Moved amendment L.004 (Attachment J). The motion passed without objection.
SECONDED:	Stephens
		VOTE
	Balmer
	Bradford
	Gagliardi
	Liston
	Priola
	Ryden
	Scanlan
	Soper
	Stephens
	Casso
	Rice

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1053
TIME:	11:47:54 AM
MOVED:	Balmer
MOTION:	Moved to refer House Bill 09-1053, as amended, to the Committee on Appropriations. The motion passed 10-0.
SECONDED:	Stephens
		VOTE
	Balmer	Yes
	Bradford	Yes
	Gagliardi	Yes
	Liston	Yes
	Priola	Yes
	Ryden	Yes
	Scanlan	Yes
	Soper	Yes
	Stephens	Yes
	Casso	Yes
	Rice	Excused

Final YES: 10 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

11:49 AM

The committee adjourned.