BILL SUMMARY for HB09-1254
HOUSE COMMITTEE ON JUDICIARY
|Votes: View--> ||Action Taken: |
|Adopt prepared amendment L.002 (Attachment D). Th|
Adopt prepared amendment L.003 (Attachment E). Th
Refer House Bill 09-1254, as amended, to the Commi
|Pass Without Objection|
Pass Without Objection
03:11 PM -- House Bill 09-1254
Representative Judd, prime sponsor, presented House Bill 09-1254 concerning additional consumer protections relating to like-kind exchanges mediated by exchange facilitators. The bill adds a new series of deceptive trade practices to the Colorado Consumer Protection Act for misconduct committed by exchange facilitators who mediate like-kind exchanges under 26 U.S.C. sec. 1031. An exchange facilitator is effectively required to serve as a responsible custodian by maintaining adequate security for funds and properly accounting for funds. The bill also prohibits various misconduct such as fraud, misrepresentation, and commingling of funds. Like-kind exchanges are permitted under Section 1031 of the I.R.S. Code so a property owner can avoid capital gains taxes when selling real estate. To avoid a capital gains tax, a seller must engage an exchange facilitator who holds sales proceeds and then applies the funds to the purchase of like-kind property.
Representative Judd responded to committee questions about the bill.
03:30 PM -- Brent Abrahm, Federation of Exchange Accommodators (FEA), spoke in support of the bill. Mr. Abrahm discussed the FEA effort to create some conformity between the states with regard to consumer protection.
03:32 PM -- Abbas Rajabi, Grande Investment, spoke in support of the bill. Mr. Rajabi related details of his experience with a like-kind exchange, in which his money was stolen. He indicated that this is a widespread problem and regulation is necessary to prevent the same thing happening to others.
Representative Judd explained prepared amendment L.002 (Attachment D), which simply cleans up some of the language in the bill.
Representative Judd asked the committee to consider prepared amendment L.003 (Attachment E), which addresses Representative Levy's concerns about awkward language in the bill on pages 6 and 9.
Representative Judd wrapped up his presentation of the bill and asked for a favorable recommendation.
|TIME: || 03:38:16 PM|
|MOTION:||Refer House Bill 09-1254, as amended, to the Committee of the Whole with a favorable recommendation. The motion passed on a vote of 10-0, with 1 excused.|
Final YES: 10 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS