BC290388028C4D0F8725827A006C06DD Hearing Summary

Senator Gardner explained SB18-240, concerning the adoption of the "Revised Uniform Unclaimed Property Act" (RUPA).  Senator Gardner reported that the bill needs more time for additional revisions and stakeholder input.  He requested that testimony be heard on the bill before it is laid over until May 10. 

Claire Levy, representing herself and the Colorado Commission on Uniform State Laws, discussed the bill in more depth.  She explained the stakeholder process over the course of the past three years and the goal of the legislation, which is to simplify the process for finding and claiming unclaimed property.   She further discussed the Great Colorado Payback and the Unclaimed Property Division in the Office of the State Treasurer.  She guided the committee through the bill, which includes but is not limited to, intangible property, dormancy periods, remedies for holders, and security issues.  She noted that unclaimed property provisions have not been updated comprehensively since the 1980s. 

Garth Farrend, Audit Manager in the Colorado Department of the Treasury, discussed the role of his office and  RUPA.  He said the legislation is necessary to address technological changes, as well as to provide consistency with other state laws.  He further addressed rules for outside auditors.

Peter Gunn from the Colorado Department of the Treasury spoke on behalf of the bill.  He discussed RUPA and adopting it in Colorado.  He reported that additional cost savings will occur once RUPA provisions are enacted.  

The committee discussed the stakeholder process.  Questions also arose regarding uniform codes, generally, and the length of time involved to incorporate into state law. 

Jim Hall, representing the American Council of Life Insurers, spoke against the bill as written.  He expressed particular concerns about unclaimed life insurance benefits.

Barbara Walker, representing the Independent Bankers of Colorado, spoke in support of the bill if amended.  She discussed concerns about property, retirement and tax deferred acounts, and notices to holders.

Pete Kirchhof, representing various credit unions, supports the bill, generally, but would like to see a few changes before it moves forward. 

Melanie Layton, representing the Colorado Bankers Association, requested more time over the interim to work on the bill.  She emphasized that it is not uncommon for model laws to take years to implement.  She discussed the problems she has with the bill, as currently written, including contingency fees, interest rates not tied to the index, and appeal rights for holders. 

Commissioner Levy discussed the process of adopting uniform laws and the entities involved or represented.  She noted the areas where agreements have already been made.

Senator Gardner emphasized that the bill is a good starting point.  Senator Gardner recommended that the bill be laid over until May 10.