Financial Institutions - Digest of Bills

Digest of Bills - 1999

FINANCIAL INSTITUTIONS
S.B. 99-83 Foreign capital depositories - creation - regulation - appropriation. Creates a new form of financial institution, the foreign capital depository, to encourage investment in Colorado by foreign nationals seeking safe investments outside their countries of residence. Seeks to balance the need for depositors' privacy and protection from spurious claims, on the one hand, with the legitimate needs of law enforcement authorities under anti-drug and money-laundering statutes and U.S. treaties, on the other.

Prohibits deposits in foreign capital depositories by U.S. citizens. Establishes a minimum deposit amount of $200,000. Imposes strict privacy requirements, with civil and criminal penalties for unauthorized disclosure of information. Requires claimants under foreign judgments to prove that such judgments were validly imposed under systems providing due process. Allows a depositor to move to quash a subpoena for financial records on specified grounds. Provides for cooperation between state and federal authorities in the investigation of financial crimes involving foreign capital depositories.

From cash funds and cash funds exempt, appropriates $40,138 to the department of revenue, $55,988 to the department of regulatory agencies, and $5,893 to the department of law for implementation of the act.

APPROVED by Governor May 24, 1999
EFFECTIVE May 24, 1999

H.B. 99-1198 Division of financial services - supervisory powers - conservatorship of credit unions and associations - civil money penalties. Enables the financial services board ("board") to close public hearings, which are required by law, when a final action or order of the commissioner of financial services ("commissioner") is appealed in order to prevent further harm to the financial institution from prompt withdrawal of moneys from the financial institution.

Permits the commissioner to appoint a conservator to assume control of a troubled credit union or savings and loan association subject to an appeal to the board. Provides that conservatorship authority is an intermediate step intended to prevent institutional closing and allow for an orderly rehabilitation of the institution's operations. Provides that, if a conservator is appointed other than the federal deposit insurance corporation, the office of thrift supervision or its successors, or an employee of the division of financial services, the conservator shall provide a bond for the faithful discharge of the duties connected with such conservatorship. Provides that the cost of the bond shall be paid from the assets of the association and that suit may be maintained on such bond by any person injured by a breach or the conditions thereof.

Allows the division of financial services ("division") to assess civil money penalties against credit unions and savings and loan associations themselves, instead of only their directors, committee members, officers, and employees, when the violations are institutional in nature.

Removes the requirement that the division give advance consideration to the financial resources of a person being assessed a civil money penalty, but allows this factor to be considered in an appeal of the amount of the penalty. Clarifies that civil money penalties may be assessed either per occurrence or per day and caps the per occurrence penalty at $50,000.

Removes the requirement that the governor grant written approval prior to the closing of a savings and loan association since the board now provides the oversight required in this situation.

For life care institutions, changes the rule-making authority to permit the board to promulgate rules rather than the commissioner.

Clarifies that the reports of examination and any ratings or evaluations of financial institutions by the division are confidential and solely the property of the division. Clarifies the division's authority to share information and cooperate with law enforcement agencies conducting criminal investigations related to institutions regulated by the division.

APPROVED by Governor May 29, 1999
EFFECTIVE August 4, 1999
NOTE: This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.