HB 24-1381

HB 24-1381 is a Colorado bill that extends the Division of Financial Services and its board for nine more years until 2033. It also allows credit unions in Colorado to merge with out-of-state credit unions, increases penalties for violating financial regulations, and removes outdated requirements related to mailing notices. Additionally, it updates language around life care facilities to ensure entrance fees are substantial and clarifies definitions regarding resident care and living units. The bill was signed by the governor on June 3, 2024, and will take effect on August 7, 2024. This means that starting in August, these changes will officially impact financial institutions and life care facilities in Colorado.

Official Summary

The act implements, with amendments, the recommendations of the department of regulatory agencies (DORA) in its sunset review and report on the division of financial services (division), which is created within DORA. Specifically, the act: Continues the division and the financial services board (board) for 9 years, until 2033; Authorizes a credit union to merge with a credit union that is chartered in another state; Increases the maximum civil penalty for violating a cease-and-desist order or suspension order from $1,000 per day to $5,000 per day; Repeals a provision that prohibits credit unions from having overlapping geographic fields of membership; Repeals a requirement that the board send hearing notices by certified or registered mail; Authorizes a credit union to determine the date upon which its fiscal year ends and the date of the credit union's annual membership meeting; and Replaces gender-specific language with gender-neutral language. Additionally, the act removes obsolete statutory references to the federal office of thrift supervision, which no longer exists. Under Colorado law pertaining to life care institutions, an entrance fee is an initial or deferred transfer to or for the benefit of a provider of a sum of money or other property made or promised to be made as full or partial consideration for the acceptance or maintenance of a specified individual as a resident in a life care facility. The act states that if an entrance fee is in the form of a sum of money, the sum must be greater than 4 times the amount of a regular periodic charge under a life care contract at the life care facility. The act also clarifies that: The term "life care" includes the occupancy of a living unit, nutrition services, and nursing services; A resident's living unit may change based on the appropriate care needs of the resident; and The term "provider" does not include a unit owners' association of a common interest community. APPROVED by Governor June 3, 2024 EFFECTIVE August 7, 2024(Note: This summary applies to this bill as enacted.)

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