Summary of SB08-162
Short Title: Int Fiduciary Accts Afford Housing

Sponsors: Boyd/Riesberg

Requires any closing and settlement services provider to pool and commingle trust money received from clients or beneficial owners in connection with escrows and closings. Requires the closing and settlement services provider responsible for the trust money, as early in the transaction as practicable, to give notice to all parties to the transaction that the trust money, absent direction from the parties, will be placed in a fiduciary account that may generate interest and that such interest, if any, will be donated to the fiduciary earnings for affordable housing foundation (foundation). Specifies that the requirements of the act shall not apply to any escrow, settlement, or closing where a client or beneficial owner requests in writing that any interest earned on trust money be returned to the client or beneficial owner. Specifies that interest earned on trust money is the property of either the seller in connection with the sale of an interest in real property in the state or a borrower in connection with the refinancing of an interest in real property in the state. Except for trust money placed in a commingled account, specifies the type of deposit or investment vehicle into which trust money may be deposited. Specifies the requirements of the act do not apply to money otherwise being collected for the purpose of funding either the Colorado association of realtors housing opportunity foundation or the Colorado lawyer trust account foundation. At least once each quarter, requires the financial institution in which a commingled account is maintained to pay the interest earned on the account, less any service charges of such institution, to the fiduciary earnings for affordable housing foundation (foundation) to enhance the availability of affordable housing throughout the state. Requires the commissioner to adopt such rules as are necessary for the effective administration and implementation of the act. Specifies the type of financial institution in which trust money affected by the act is required to be deposited and maintained. Specifies rules governing the administration of interest earned on trust accounts. At the time of the remittance of interest, requires the financial institution holding the trust money to provide a statement to the foundation and the commissioner of insurance showing certain information specified in the act. Creates the foundation as a Colorado nonprofit corporation that is not subject to administrative direction by any department, commission, board, bureau, or agency of the state. Places governance of the foundation in a board of directors (board). Specifies requirements concerning the membership, appointment, and administration of the board. Requires any board member, employee, or other agent or adviser of the foundation who has a direct or indirect interest in any contract or transaction with the foundation to disclose this interest to the foundation, and prohibits any board member, employee, or other agent or adviser having such interest from participating on behalf of the foundation in the authorization of any such contract or transaction. Specifies general powers of the foundation. Requires all money remitted pursuant to the act to be distributed by the foundation on an annual basis, less any reserved amount approved by the board, as specified in the act. Specifies the permissible purposes and uses of money awarded from the fund. Requires annual reporting by the foundation to the governor and the general assembly. Makes conforming amendments. Makes legislative findings and declarations. Defines terms.

Status
02/13/2008 Introduced In Senate - Assigned to Finance
02/14/2008 Introduced In Senate - Assigned to Health and Human Services
02/27/2008 Senate Committee on Health and Human Services Witness Testimony and/or Committee Discussion Only
03/05/2008 Senate Committee on Health and Human Services Postpone Indefinitely

Fiscal Notes Status

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