BILL SUMMARY for HB09-1155
SENATE COMMITTEE ON BUSINESS, LABOR AND TECHNOLOGY
|Votes: View--> ||Action Taken: |
|Moved to refer House Bill 09-1155 to the Committee||PASS|
02:05 PM -- House Bill 09-1155
The committee reconvened. Senator Carroll presented House Bill 09-1155. The bill requires that title insurance companies and agents file the justification for a new or amended title insurance rate or fee with the commissioner of insurance at the Department of Regulatory Agencies (DORA) rather than at the company's or agent's principal office within the state. Senator Carroll explained the bill, and DORA distributed a memorandum concerning the bill (Amendment D).
The following individuals testified:
02:07 PM -- Garry Wolff, representing consumers of Colorado, testified regarding the bill. He described his professional background in title insurance and stated that he had no conflict of interest in the outcome of the bill. He distributed a letter and a proposed amendment to the members of the committee (Attachments E and F). He discussed the needs of consumers to shop around and to compare title insurance providers.
Senator Harvey asked if Mr. Wolff was making similar recommendations concerning mortgage insurance, appraisal companies, or the real estate industry. Mr. Wolff said that his focus was on situations where consumers were relying on a third party, and discussed his reasons for being concerned with title insurance. Discussion continued between Senator Harvey and Mr. Wolff.
Responding to a question from Senator Veiga, Mr. Wolff described his company. Senator Heath asked if Mr. Wolff supported the bill, and Mr. Wolff responded that he did, but felt that there should be more protection for consumers. Senator Veiga spoke about her experience with estimates of closing costs, and asked for clarification from Mr. Wolff regarding his testimony. Discussion continued between Senator Veiga and Mr. Wolff concerning whether closing estimates were provided to consumers.
Senator Harvey provided clarification on the subject of closing estimates provided to consumers. He expressed his concerns about the implication that title companies, realtors, and mortgage companies may have a conflict of interest. He stated that all transactions required net-benefit paperwork to disclose any conflicts of interest. He stated that he believes the proposed amendment is unnecessary.
02:31 PM -- Richard Jones, the President of the Land Title Association of Colorado, testified in favor of the bill as drafted. He described his association and the operations of title insurance companies in Colorado. He stated that the legislation increases transparency. He disagreed with aspects of Mr. Wolff's testimony, and added that it is in the realtors' best interests for transactions to go smoothly. He discussed a possible conflict of interest Mr. Wolff may have with the bill due to his business interests.
Senator Tochtrop referred to language in the bill pertaining to transparency, and Mr. Jones made additional comments. Responding to a question from Senator Scheffel, Mr. Jones discussed past legislation. Senator Scheffel asked additional questions regarding the bill's language concerning "justification" compared to "actuarial justification." Senator Carroll addressed Senator Scheffel's question and discussed past legislation.
Senator Carroll made closing remarks.
|TIME: || 02:42:36 PM|
|MOTION:||Moved to refer House Bill 09-1155 to the Committee of the Whole with a recommendation that it be placed on the consent calendar. The motion passed on a 7-0 roll call vote. |
Final YES: 7 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS