2019 Colorado Revised Statutes
Title 38 - Property - Real and Personal


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Colorado Revised Statutes 2019 TITLE 38 PROPERTY - REAL AND PERSONAL EMINENT DOMAIN ARTICLE 1 Proceedings Cross references: For right-of-way for ditches and flumes, see § 7 of art. XVI, Colo. Const.; for the taking of property, see §§ 14 and 15 of art. II, Colo. Const.; for payment of fees for land subject to the Torrens title system, see § 38-36-180. Law reviews: For article, "Access at Last: The Use of Private Condemnation", see 29 Colo. Law. 77 (Feb. 2000); for article, "Resolving Access Disputes with Conservation Tools", see 30 Colo. Law. 71 (Dec. 2001); for article, "Eminent Domain Law in Colorado--Part II: Just Compensation", see 35 Colo. Law. 47 (Nov. 2006); for article, "Kelo Confined--Colorado Safeguards Against Condemnation for Public-Private Transportation Projects", see 37 Colo. Law. 39 (March 2008); for article, "Drafting Condemnation Clauses for Leases in Colorado-Issues and Strategies", see 43 Colo. Law. 57 (Jan. 2014). PART 1 PROCEEDINGS - REQUIREMENTS AND LIMITATIONS - DETERMINATION OF JUST COMPENSATION 38-1-101. Compensation - public use - commission - jury - court - prohibition on elimination of nonconforming uses or nonconforming property design by amortization limitation on extraterritorial condemnation by municipalities - definitions. (1) (a) Notwithstanding any other provision of law, in order to protect property rights, without the consent of the owner of the property, private property shall not be taken or damaged by the state or any political subdivision for a public or private use without just compensation. (b) (I) For purposes of satisfying the requirements of this section, "public use" shall not include the taking of private property for transfer to a private entity for the purpose of economic development or enhancement of tax revenue. Private property may otherwise be taken solely for the purpose of furthering a public use. (II) By enacting subparagraph (I) of this paragraph (b), the general assembly does not intend to create a new procedural mechanism to bring about the condemnation of private property. By enacting subparagraph (I) of this paragraph (b), the general assembly intends to Colorado Revised Statutes 2019 Page 1 of 707 Uncertified Printout limit only as provided in subparagraph (I) of this paragraph (b), and not expand, the definition of "public use". (c) Nothing in this section shall affect the right of a private party to condemn property as otherwise provided by law. (2) (a) In all cases in which compensation is not made by the state in its corporate capacity, such compensation shall be ascertained by a board of commissioners of not less than three disinterested and impartial freeholders pursuant to section 38-1-105 (1) or by a jury when required by the owner of the property as prescribed in section 38-1-106. All questions and issues, except the amount of compensation, shall be determined by the court unless all parties interested in the action stipulate and agree that the compensation may be so ascertained by the court. In the event of such stipulation and agreement, the court shall proceed as provided in this article for the trial of such causes by a board of commissioners or jury. (b) Notwithstanding any other provision of law, in any condemnation action, without the consent of the owner of the property, the burden of proof is on the condemning entity to demonstrate, by a preponderance of the evidence, that the taking of private property is for a public use, unless the condemnation action involves a taking for the eradication of blight, in which case the burden of proof is on the condemning entity to demonstrate, by clear and convincing evidence, that the taking of the property is necessary for the eradication of blight. (3) (a) Notwithstanding any other provision of law to the contrary, a local government shall not enact or enforce an ordinance, resolution, or regulation that requires a nonconforming property use that was lawful at the time of its inception to be terminated or eliminated by amortization. (b) (Deleted by amendment, L. 2006, p. 1749, § 1, effective June 6, 2006.) (4) (a) The general assembly hereby finds and declares that: (I) The acquisition by condemnation by a home rule or statutory municipality of property outside of its territorial boundaries involves matters of both statewide and local concern because such acquisition by condemnation may interfere with the plans and operations of other local governments and of the state. (II) In order that each local government and the state enjoy the greatest flexibility with respect to the planning and development of land within its territorial boundaries, it is necessary that the powers of a home rule or statutory municipality to acquire by condemnation property outside of its territorial boundaries be limited to the narrowest extent permitted by article XX of the state constitution. (b) (I) Effective January 1, 2004, no home rule or statutory municipality shall either acquire by condemnation property located outside of its territorial boundaries nor provide any funding, in whole or in part, for the acquisition by condemnation by any other public or private party of property located outside of its territorial boundaries; except that the requirements of this paragraph (b) shall not apply to condemnation for water works, light plants, power plants, transportation systems, heating plants, any other public utilities or public works, or for any purposes necessary for such uses. (II) Effective January 1, 2004, no home rule or statutory municipality shall either acquire by condemnation property located outside of its territorial boundaries for the purpose of parks, recreation, open space, conservation, preservation of views or scenic vistas, or for similar purposes, nor provide any funding, in whole or in part, for the acquisition by condemnation by any other private or public party of property located outside of its territorial boundaries for the Colorado Revised Statutes 2019 Page 2 of 707 Uncertified Printout purpose of parks, recreation, open space, conservation, preservation of views or scenic vistas, or for similar purposes except where the municipality has obtained the consent of both the owner of the property to be acquired by condemnation and the governing body of the local government in which territorial boundaries the property is located. (c) Effective January 1, 2004, the provisions of this subsection (4) shall supersede any inconsistent statutory provisions whether contained in this title or any other title of the Colorado Revised Statutes. (5) For purposes of this section, unless the context otherwise requires: (a) "Local government" means a county, city and county, town, or home rule or statutory city. (b) "Political subdivision" means a county; city and county; city; town; service authority; school district; local improvement district; law enforcement authority; urban renewal authority; city or county housing authority; water, sanitation, fire protection, metropolitan, irrigation, drainage, or other special district; or any other kind of municipal, quasi-municipal, or public corporation organized pursuant to law. Source: G.L. § 1058. G.S. C. § 237. R.S. 08: § 2415. C.L. § 6311. CSA: C. 61, § 1. CRS 53: § 50-1-1. L. 61: p. 370, § 1. C.R.S. 1963: § 50-1-1. L. 84: Entire section amended, p. 972, § 1, effective February 17. L. 2003: Entire section amended, p. 2667, § 2, effective June 6. L. 2004: (4) added, p. 1747, § 6, effective June 4. L. 2006: (1), (2), and (3) amended and (5) added, p. 1749, § 1, effective June 6. Cross references: (1) For jurisdiction of federal court, when properly invoked, see County of Allegheny v. Frank Mashuda Company, 360 U.S. 185, 79 S. Ct. 1060, 3 L. Ed. 2d 1163 (1959), and Louisiana Power and Light Company v. City of Thibodaux, 360 U.S. 25, 79 S. Ct. 1070, 3 L. Ed. 2d 1058 (1959); for taking private property for private use, see § 14 of art. II, Colo. Const.; for taking property for public use, see § 15 of art. II, Colo. Const. (2) For the legislative declaration in the 2003 act amending this section, see section 1 of chapter 420, Session Laws of Colorado 2003. 38-1-101.5. Necessity of taking land for pipelines. (1) When a court is determining the necessity of taking private land or nonfederal public land for the installation of a pipeline, the court shall require the pipeline company: (a) To show that the particular land lies within a route which is the most direct route practicable; (b) To post a bond with the court equal to double the amount which the court determines to be the estimated cost of restoring the affected land to the same or as good a condition as it was in prior to the installation of the pipeline; except that the pipeline company may elect to deposit cash, negotiable bonds of the United States government or any political subdivision of this state, or negotiable certificates of deposit of any bank or other savings institution organized or transacting business in the United States equal to double such cost. Said bond shall not be released until the court is satisfied that the condemned land has been restored to the same or as good a condition as existed prior to the installation of the pipeline, and, if the affected land is productive agricultural land, that the soil which sustains the agricultural activity has been restored so as to provide for the continuation of such agricultural activity, and that any damages Colorado Revised Statutes 2019 Page 3 of 707 Uncertified Printout awarded by the court have been paid. If the condemned land is adjacent to or in proximity of the boundary of federal land of comparable use, such bond shall not be released until the company has restored the land to at least the same reclamation standards and meets such other standards and requirements for such federal land as required by the laws, rules, and regulations of the federal government. (c) To consider existing utility rights-of-way before any new routes are taken if the land to be condemned is adjacent to existing utility rights-of-way. (2) When land is condemned for a pipeline, the determination of the amount of compensation to be received by the landowner shall reflect consideration of the fact that the condemned land is to be restored as required in this section. Source: L. 83: Entire section added, p. 1444, § 1, effective June 3. L. 84: (1)(b) amended, p. 974, § 1, effective April 12. 38-1-101.7. Limitations on the use of right-of-way. (1) No easement or right-of-way for pipelines shall be used by the owner thereof or employees of such owner for any purpose other than to construct, lay, install, replace, operate, inspect, maintain, repair, renew, substitute, monitor, change the size of, and remove certain facilities placed within the easement by such owner. (2) The owner of an easement or right-of-way shall mitigate any erosion of the land within the easement or right-of-way caused by the owner of such easement. Source: L. 84: Entire section added, p. 975, § 2, effective April 12. 38-1-102. Petition - contents - parties. (1) In all cases where the right to take private property for public or private use without the owner's consent or the right to construct or maintain any railroad, spur or side track, public road, toll road, ditch, bridge, ferry, telegraph, flume, or other public or private work or improvement which may damage property not actually taken is conferred by general laws or special charter upon any corporate or municipal authority, public body, officer or agent, person, commissioner, or corporation and the compensation to be paid for, in respect of property sought to be appropriated or damaged for the purposes mentioned, cannot be agreed upon by the parties interested; or, in case the owner of the property is incapable of consenting, or his name or residence is unknown, or he is a nonresident of the state, it is lawful for the party authorized to take or damage the property so required to apply to the judge of the district court where the property or any part thereof is situate by filing with the clerk a petition, setting forth, by reference, his authority in the premises, the purpose for which said property is sought to be taken or damaged, a description of the property, the names of all persons interested as owners or otherwise, as appearing of record, if known, or, if not known, stating that fact, and praying such judge to cause the compensation to be paid to the owner to be assessed. If the proceedings seek to affect the property of persons under guardianship, the guardians or conservators of persons having conservators shall be made parties defendant. Persons interested whose names are unknown may be made parties defendant by the description of the unknown owners. In all such cases an affidavit shall be filed by or on behalf of the petitioner, setting forth that the names of such persons are unknown. Colorado Revised Statutes 2019 Page 4 of 707 Uncertified Printout (2) In cases where the property is sought to be taken or damaged by the state for the purpose of establishing, operating, or maintaining any state house or charitable or other state institution or improvement, the petition shall be signed by the governor or such other person as he directs or as is provided by law. (3) Under the provisions of this section, private property may be taken for private use, for private ways of necessity, and for reservoirs, drains, flumes, or ditches on or across the lands of others for agricultural, mining, milling, domestic, or sanitary purposes. Source: G.L. § 1059. G.S. C. § 238. L. 1885: p. 200, § 1. L. 01: p. 173, § 1. R.S. 08: § 2416. C.L. § 6312. CSA: C. 61, § 2. CRS 53: § 50-1-2. L. 55: p. 368, § 1. C.R.S. 1963: § 50-12. L. 64: p. 265, § 154. Cross references: For condemnation by tax exempt agency, see § 39-3-134; for taking private property for private use, see § 14 of art. II, Colo. Const.; for taking property for public use, see § 15 of art. II, Colo. Const.; for the right-of-way for ditches and flumes, see § 7 of art. XVI, Colo. Const. 38-1-103. Summons - return - publication. (1) A summons shall be issued and served and proof of service shall be made in accordance with the Colorado rules of civil procedure. The contents of such summons shall be in conformity with said rules; except that it shall notify the respondent or defendant that, upon failure to appear and defend, the court, without further notice, shall cause the compensation to be determined and title vested in the petitioner according to law. When it appears that the owners of the property sought to be condemned cannot be personally served as provided by the Colorado rules of civil procedure, an affidavit shall be filed in said cause by the petitioner or his attorney, setting forth that the person making such affidavit has made diligent inquiry and has been unable to learn the whereabouts of such owners. (2) The court shall then order a notice to be published in some newspaper published in said county, addressed to such owners, in which notice shall be stated the name of the petitioner, a full and accurate description of the property sought to be taken or condemned, the purpose for which such condemnation is asked, the time and place at which such owners are required to appear, and the title of the court or name of the judge before whom said application is to be heard. The court shall also fix and determine when said notice shall be made returnable, but in no case shall it be made returnable in less than thirty days. The same shall be published at least four times in some weekly newspaper before the return day thereof. If there is no weekly newspaper published in the county in which such proceedings are had, the court shall direct that said notice be published in some newspaper, named by him, published in the nearest convenient place to such county. Source: G.L. § 1061. L. 1879: p. 58, § 1. G.S. C. § 240. R.S. 08: § 2418. C.L. § 6314. CSA: C. 61, § 4. CRS 53: § 50-1-4. L. 55: p. 369, § 2. L. 61: p. 370, § 2. C.R.S. 1963: § 50-1-4. Cross references: For publication of legal notices, see part 1 of article 70 of title 24; for contents of a summons, see C.R.C.P. 4(c); for personal service in state, see C.R.C.P. 4(e); for manner of proof of service, see C.R.C.P. 4(h). Colorado Revised Statutes 2019 Page 5 of 707 Uncertified Printout 38-1-104. Trial - amendments - rules. No cause shall be heard earlier than thirty days after service upon the defendant or upon due publication as provided in section 38-1-103. Any number of separate parcels of property situate in the same county may be included in one petition, and the compensation for each shall be assessed separately by the same or different commissions or juries, as the court may direct. Amendment to the petition or to any paper or record in the cause may be permitted whenever necessary to a fair trial and final determination of the questions involved. Should it become necessary at any stage of the proceeding to bring a new party before the court, the court has the power to make such rule or order in relation thereto as may be deemed reasonable and proper, and also has the power to make all necessary rules and orders for notice to parties of the pendency of the proceeding and to issue all process necessary to the execution of orders and judgments as they may be entered. Source: G.L. § 1062. G.S. C. § 241. R.S. 08: § 2419. C.L. § 6315. CSA: C. 61, § 5. CRS 53: § 50-1-5. L. 55: p. 370, § 3. C.R.S. 1963: § 50-1-5. L. 85: Entire section amended, p. 1194, § 2, effective June 6. 38-1-105. Adjournment - commission - compensation - defective title - withdrawal of deposit. (1) The court may adjourn the proceedings from time to time and shall direct any further notice thereof to be given that may seem proper. The court shall hear proofs and allegations of all parties interested touching the regularity of the proceedings and shall rule upon all objections thereto. Unless a jury is requested by the owner of the property as provided in section 38-1-106, the court shall appoint a board of commissioners of not less than three disinterested and impartial freeholders to determine compensation in the manner provided in this article to be allowed to the owner and persons interested in the lands, real estate, claims, or other property proposed to be taken or damaged in such county for the purposes alleged in the petition. The court shall fix the time and place for the first meeting of such commissioners. Such meeting shall be held at least thirty days prior to the date scheduled for the trial to determine compensation. At the meeting, a voir dire examination shall be conducted by the court and the parties to determine whether the proposed commissioners are disinterested and impartial freeholders. If the court determines that any of the proposed commissioners is not disinterested and impartial, the court shall replace such person and appoint another commissioner, who shall also be subject to voir dire examination. At the hearing to determine compensation, the court shall administer an oath to the commissioners, shall instruct them in writing as to their duties, and, at the conclusion of the testimony, shall instruct them in writing as to the applicable and proper law to be followed by them in arriving at their ascertainment. The court shall fix reasonable compensation for the services and expenses of said commissioners and shall provide the services of a court reporter to record all proceedings had by the commissioners. (2) The commissioners, before entering upon the duties of their office, shall take an oath to faithfully and impartially discharge their duties as commissioners, and any one of them may administer oaths to witnesses produced before them. The commissioners may request the court or clerk thereof to issue subpoenas to compel witnesses to attend the proceedings and testify as in other civil cases and may adjourn and hold meetings for that purpose. They may request the court to make rulings upon the propriety of the proof or objections of the parties. They shall hear the proofs and allegations of the parties according to the rules of evidence and, after viewing the premises or other property and without fear, favor, or partiality, shall ascertain and certify the Colorado Revised Statutes 2019 Page 6 of 707 Uncertified Printout proper compensation to be made to said owner or parties interested for the lands, real estate, claims, or other property to be taken or affected, as well as all damages accruing to the owner or parties interested in consequence of the condemnation of the same. The commissioners shall make, subscribe, and file with the clerk of the court in which such proceedings are had a certificate of their ascertainment and assessment, in which such lands, real estate, claims, or other property shall be described with convenient certainty and accuracy. (3) The court, upon the filing of such certificate or returning of a verdict of a jury as provided in section 38-1-107 and due proof that such compensation and separate sums, if any, are certified or found to have been paid to the parties entitled to the same or have been deposited to the credit of such parties in court or with the clerk of the court for that purpose, shall make and cause to be entered in its minutes a rule describing such lands, real estate, claims, or other property, such ascertainment or compensation with the mode of making it, and each payment or deposit of the compensation, a certified copy of which shall be recorded and indexed in the office of the county clerk and recorder of the proper county in like manner and with like effect as if it were a deed of conveyance from the owner and parties interested to the proper parties. If there is more than one person interested as owner or otherwise in the property and they are unable to agree upon the nature, extent, or value of their respective interests in the total amount of compensation so ascertained and assessed on an undivided basis by either a commission or a jury, the nature, extent, or value of said interests shall thereupon be determined according to law in a separate and subsequent proceeding and distribution made among the several claimants thereto. (4) Upon the entry of such rule, the petitioner shall become seized in fee unless a lesser interest has been sought, except as provided in this section, of all such lands, real estate, claims, or other property described in said rule as required to be taken, and may take possession and hold and use the same for the purposes specified in such petition, and shall thereupon be discharged from all claims for any damages by reason of any matter specified in such petition, certificate, or rule of said court. No right-of-way or easement acquired by condemnation shall ever give the petitioner any right, title, or interest to any vein, ledge, lode, deposit, oil, natural gas, or other mineral resource found or existing in the premises condemned, except insofar as the same may be required for subsurface support. (5) If at any time after an attempted or actual ascertainment of compensation under this article or any purchase or by donation to said petitioner of any lands, real estate, claims, or other property for purposes specified in the petition it appears that the title acquired thereby, to all or any part of such lands for the use of such petitioner, is defective or if said assessment fails or is deemed defective, the petitioner may proceed and perfect such title by procuring an ascertainment of the proper compensation to be made to any person who has title, claim, or interest in or lien upon such lands, real estate, claims, or other property and by making payment thereof in the manner provided in section 38-1-112, as near as may be. (6) (a) At any stage of such new proceedings or of any proceedings under this article, the court, by rule in that behalf made, may authorize the petitioner, if already in possession, to use, and, if not in possession, to take possession of and use, said premises during the pendency and until the final conclusion of such proceedings and may stay all actions and proceedings against such petitioner on account thereof, if such petitioner pays a sufficient sum into court, or to the clerk thereof, to pay the compensation in that behalf when ascertained. The court wherein any such proceedings are had shall determine the amount such petitioner is required to pay or deposit Colorado Revised Statutes 2019 Page 7 of 707 Uncertified Printout pending any such ascertainment. In every case where possession is so authorized, it is lawful for either party to conduct the proceedings to a conclusion, if the same are delayed by the other party. (b) Upon proper application to the court or by stipulation between the parties, the owner may withdraw from the sum so deposited an amount not to exceed three-fourths of the highest valuation evidenced or testimony presented by the petitioner at the hearing for possession, unless the petitioner agrees to a larger withdrawal, if all parties interested in the property sought to be acquired consent and agree to such withdrawal. Any such withdrawal of said deposit shall be a partial payment of the amount of total compensation to be paid and shall be deducted by the clerk of the court from any award or verdict entered thereafter. (c) The petitioner shall not take possession of the property sought to be taken or condemned earlier than thirty days after service of the summons upon the defendant, unless the owner consents to such possession prior to the expiration of the thirty-day period. Source: G.L. § 1063. G.S. C. § 242. R.S. 08: § 2420. C.L. § 6316. CSA: C. 61, § 6. CRS 53: § 50-1-6. L. 61: p. 371, § 3. L. 63: p. 476, § 1. C.R.S. 1963: § 50-1-6. L. 66: p. 27, § 1. L. 84: (1) amended, p. 972, § 2, effective February 17. L. 85: (6)(c) added, p. 1194, § 3, effective June 6. L. 2008: (4) amended, p. 627, § 1, effective August 5. 38-1-106. Jury. The owner of the property involved in any proceeding brought under the provisions of this article, before the appointment of commissioners, as provided in section 38-1105, and before the expiration of the time for the defendant to appear and answer, may demand a jury of freeholders residing in the county in which the petition is filed to determine the compensation to be allowed in the manner provided in this article. Such demand may be made in the pleadings or by a separate writing filed with the clerk. Such jury shall consist of six persons, unless a larger number is demanded by any party to the proceeding. In no case shall the number of jurors exceed twelve. Any party so demanding a larger number than six jurors shall advance the fees for such additional jurors for one day's service according to the rate allowed jurors in the district court. Source: G.L. § 1064. G.S. C. § 243. L. 1889: p. 156, § 1. R.S. 08: § 2421. C.L. § 6317. CSA: C. 61, § 7. CRS 53: § 50-1-7. L. 61: p. 374, § 4. C.R.S. 1963: § 50-1-7. L. 66: p. 30, § 2. 38-1-107. Inspection of premises - expenses - verdict. (1) When the jury has been selected and the jurors have taken an oath faithfully and impartially to discharge their duties, the court, at the request of any party to the proceeding and in the discretion of the court, may order that the jury go upon the premises sought to be taken or damaged, in charge of a sworn bailiff, and examine the premises in person. Such order shall require the party making such request to advance a sum, to be fixed by the court in such order, sufficient in the opinion of the court to defray the necessary expenses of such examination. In default of such party forthwith advancing such sum, such order shall be held for naught upon such trial before a jury. The court shall preside in the same manner and with like powers as in other cases. Evidence shall be admitted or rejected by the court according to the rules of law. At the conclusion of the evidence, the matters in controversy may be argued by counsel to the jury. At the conclusion of the arguments, the Colorado Revised Statutes 2019 Page 8 of 707 Uncertified Printout court shall instruct the jury in writing. The jury shall retire for deliberation, in charge of a sworn officer, and when they have agreed upon a verdict the same shall be returned into court. (2) If the jury fails to agree, it may be discharged by the court. Thereupon another jury shall be summoned as soon as practicable, in the same manner as before, and like proceedings be had with such jury or successive juries, until a verdict is had. Any party feeling aggrieved by such verdict may move before such court for a new trial in the same manner and for the same causes as in actions at law. The refusal of such court to grant a new trial may be excepted to and assigned for appeal. Source: G.L. § 1067. G.S. C. § 246. L. 1889: p. 157, § 3. R.S. 08: § 2424. C.L. § 6320. CSA: C. 61, § 10. CRS 53: § 50-1-10. C.R.S. 1963: § 50-1-10. 38-1-108. Order of possession. The court, upon such verdict, shall proceed to adjudge and make such order as to right and justice shall pertain, ordering that the petitioner enter upon such property and the use of the same, upon payment of full compensation as ascertained. Such order with evidence of such payment shall constitute complete justification of the taking of such property. Source: G.L. § 1068. G.S. C. § 247. R.S. 08: § 2425. C.L. § 6321. CSA: C. 61, § 11. CRS 53: § 50-1-11. C.R.S. 1963: § 50-1-11. 38-1-109. Intervention - cross petition. Any person not made a party to such proceeding may become such by filing a cross petition at any time before the hearing, setting forth that he is an owner or has an interest in the property sought to be taken or damaged by the petitioner and stating the character and extent of such interest. The rights of such person shall thereupon be fully considered and determined. Except for such cross petition, there shall be no written pleadings on the part of any party to the proceeding, but, at the hearing provided for in section 38-1-105, the court shall hear and dispose of all objections that may be raised touching the legal sufficiency of the petition or cross petition or the regularity of the proceedings in any other respect. In case any person or corporation at any time or in any manner succeeds to the right of any party in the subject matter of the proceeding, such proceeding shall not abate thereby, but such person or corporation, upon motion and upon proof of the fact of such succession, shall be substituted for such party as a party to the proceeding. Source: G.L. § 1069. G.S. C. § 248. L. 1889: p. 158, § 4. R.S. 08: § 2426. C.L. § 6322. CSA: C. 61, § 12. CRS 53: § 50-1-12. C.R.S. 1963: § 50-1-12. 38-1-110. Appellate review. In all cases, upon final determination thereof in the district court, the judgment is subject to appellate review as provided by law and the Colorado appellate rules. Source: G.L. § 1070. G.S. C. § 249. R.S. 08: § 2427. C.L. § 6323. CSA: C. 61, § 13. CRS 53: § 50-1-13. C.R.S. 1963: § 50-1-13. L. 64: p. 266, § 156. Colorado Revised Statutes 2019 Page 9 of 707 Uncertified Printout 38-1-111. Possession pending appeal. In cases in which compensation is ascertained, if the owner of the property taken or affected prosecutes an appeal as provided by law and the Colorado appellate rules, the petitioner may pay into court or to the clerk thereof the amount of compensation ascertained and awarded for the use of the owner and shall thereupon be entitled to take possession and use the property taken or affected the same as if no such appeal had been taken. The money so deposited shall remain on deposit until such appeal has been heard and determined. If the owner elects to receive such money before the determination of said appeal, the appeal shall thereupon be dismissed so far as such owner is concerned. If the appeal is taken by the petitioner, the amount of compensation shall nevertheless be paid into court or to the clerk thereof for the use of the owner of the property condemned or affected before such petitioner has the right to take possession of and use said property so condemned or affected. Such compensation may be paid to such owner, at any time before the determination of such appeal, upon the execution and delivery of a good and sufficient bond by such owner with good and sufficient sureties, to be approved by said court, in a sum double the amount of such compensation, conditioned that such owner will pay and refund to such petitioner all or such part of said sum as said owner may be required or adjudged to pay said petitioner, together with the cost of said appeal. Source: G.L. § 1071. G.S. C. § 250. R.S. 08: § 2428. C.L. § 6324. CSA: C. 61, § 14. CRS 53: § 50-1-14. C.R.S. 1963: § 50-1-14. 38-1-112. Payment to clerk or owner. Payment of compensation adjudged may in all cases be made to the court or the clerk thereof, who shall on demand pay the same to the party entitled thereto, taking receipt therefor. Payment may be made to the party entitled thereto or to his conservator or guardian. Source: G.L. § 1072. G.S. C. § 251. R.S. 08: § 2429. C.L. § 6325. CSA: C. 61, § 15. CRS 53: § 50-1-15. C.R.S. 1963: § 50-1-15. 38-1-113. Verdict recorded. The court shall cause the verdict of the jury and the judgment of said court to be entered upon the records of said court. Source: G.L. § 1073. G.S. C. § 252. R.S. 08: § 2430. C.L. § 6326. CSA: C. 61, § 16. CRS 53: § 50-1-16. C.R.S. 1963: § 50-1-16. 38-1-114. Formula for computing compensation - definitions. (1) Except for the provisions of subsection (2) of this section that shall apply to acquisitions for highways and transportation projects undertaken by the regional transportation district created by article 9 of title 32, C.R.S., the right to compensation and the amount thereof, including damages and benefits, if any, shall be determined initially as of the date the petitioner is authorized by agreement, stipulation, or court order to take possession or the date of trial or hearing to assess compensation, whichever is earlier, but any amount of compensation determined initially shall remain subject to adjustment for one year after the date of the initial determination to provide for additional damages or benefits not reasonably foreseeable at the time of the initial determination. In estimating the value of all property actually taken, the true and actual value at such time shall Colorado Revised Statutes 2019 Page 10 of 707 Uncertified Printout be allowed and awarded. No deduction therefrom shall be allowed for any benefit to the residue of said property. In estimating damages occasioned to other portions of the claimant's property or any part thereof other than that actually taken, the value of the benefits, if any, may be deducted therefrom. In all cases the owner shall receive the full and actual value of all property actually taken. In case the benefit to the property not actually taken exceeds the damages sustained by the owner to the property not actually taken, the owner shall not be required to pay or allow credit for such excess. (2) (a) For acquisitions for highways and transportation projects undertaken by the regional transportation district created by article 9 of title 32, C.R.S., the right to compensation and the amount thereof, including damages and benefits, if any, shall be determined as of the date the petitioner is authorized by agreement, stipulation, or court order to take possession or the date of trial or hearing to assess compensation, whichever is earlier, but any amount of compensation determined initially shall remain subject to adjustment for one year after the date of the initial determination to provide for additional damages or benefits not reasonably foreseeable at the time of the initial determination. (b) If an entire tract or parcel of property is condemned, the amount of compensation to be awarded is the reasonable market value of the said property on the date of valuation. (c) If only a portion of a tract or parcel of land is taken, the damages and special benefits, if any, to the residue of said property shall be determined. When determining damages and special benefits, the appraiser shall take into account a proper discount when the damages and special benefits are forecast beyond one year from the date of appraisal. (d) In determining the amount of compensation to be paid for such a partial taking, the compensation for the property taken and damages to the residue of said property shall be reduced by the amount of any special benefits which result from the improvement or project, but not to exceed fifty percent of the total amount of compensation to be paid for the property actually taken. (3) For purposes of this section, "transportation" shall have the same meaning as set forth in section 43-1-102 (6), C.R.S. Source: G.L. § 1074. G.S. C. § 253. R.S. 08: § 2431. C.L. § 6327. CSA: C. 61, § 17. CRS 53: § 50-1-17. L. 61: p. 375, § 5. L. 63: p. 477, § 2. C.R.S. 1963: § 50-1-17. L. 79: Entire section amended, p. 1381, § 1, effective July 1. L. 87: Entire section amended, p. 1308, § 1, effective July 1. L. 2005: (1) and (2)(a) amended and (3) added, p. 317, § 1, effective August 8. Cross references: For discussion of instructions and evidence admissible on determination of agricultural land values, see City and County of Denver v. Minshall, 109 Colo. 31, 121 P.2d 667 (1942), and City and County of Denver v. Quick, 108 Colo. 111, 113 P.2d 999 (1941). 38-1-115. Contents of report or verdict. (1) Except as provided in this section, the report of the commissioners or the verdict of the jury shall contain: (a) An accurate description of the land taken; (b) The value of the land or property actually taken; (c) The damages, if any, to the residue of such land or property; and (d) The amount and value of the benefit. Colorado Revised Statutes 2019 Page 11 of 707 Uncertified Printout (2) No findings as to damages and benefits as provided in paragraphs (c) and (d) of subsection (1) of this section shall be required in cases involving the total taking of property, nor shall either or both of such findings be required in cases involving the partial taking of property unless evidence thereof has been received by the commissioners or jury. (3) The report of the commissioners or the verdict of the jury may also contain such other findings or answers to interrogatories as the court in its discretion may require to establish the value of the property condemned on an undivided basis. Source: G.L. § 1075. G.S. C. § 254. R.S. 08: § 2432. C.L. § 6328. CSA: C. 61, § 18. CRS 53: § 50-1-18. L. 63: p. 477, § 3. C.R.S. 1963: § 50-1-18. L. 66: p. 30, § 3. 38-1-116. Interest on award. The court shall forthwith cause the report of the commissioners or the verdict of the jury to be entered upon the records of the court, and, where possession of the property has been previously taken by the petitioner pursuant to section 38-1105 (6), it shall add to the amount of any such award interest at the rate established pursuant to section 5-12-106 (2), C.R.S., on and after the date of such possession until the date such award of the commissioners or verdict of the jury is filed with the clerk of the court. No interest shall be allowed on that portion of the award which the owner and others interested received or could have received as a partial payment by withdrawal from the deposit as provided in section 38-1105 (6), nor shall interest be allowed for the period wherein the trial of the case is delayed or continued by or at the request of the respondent. Source: L. 61: p. 375, § 7. CRS 53: § 50-1-20. L. 63: p. 477, § 4. C.R.S. 1963: § 50-119. L. 66: p. 31, § 4. L. 85: Entire section amended, p. 1194, § 4, effective June 6. 38-1-117. Condemnation of personal property. Whenever a petitioner is specifically authorized by law to acquire personal property or interests therein by condemnation, the proceedings to acquire the same shall be governed by this article, and the petitioner shall acquire such interest therein as may be sought and specifically described in the petition in condemnation. Source: L. 66: p. 31, § 5. C.R.S. 1963: § 50-1-22. 38-1-118. Evidence concerning value of property. Any witness in a proceeding under articles 1 to 7 of this title, in any court of record of this state wherein the value of real property is involved, may state the consideration involved in any recorded transfer of property, otherwise material and relevant, which was examined and utilized by him in arriving at his opinion, if he has personally examined the record and communicated directly and verified the amount of such consideration with either the buyer or seller. Any such testimony shall be admissible as evidence of such consideration and shall remain subject to rebuttal as to the time and actual consideration involved and subject to objections as to its relevancy and materiality. Source: L. 61: p. 376, § 7. CRS 53: § 50-1-22. L. 63: p. 478, § 5. C.R.S. 1963: § 50-121. Colorado Revised Statutes 2019 Page 12 of 707 Uncertified Printout 38-1-119. Preference on docket. To assure that property owners receive compensation for the taking of their property at the earliest practical time and to reduce the interest obligation of petitioners, all courts wherein such actions are pending shall give such actions preference over other civil actions therein in the manner of setting the same for trial. Source: L. 61: p. 375, § 7. CRS 53: § 50-1-21. C.R.S. 1963: § 50-1-20. 38-1-120. Acquisition of state lands - department of natural resources. All proceedings brought by the department of natural resources pursuant to the provisions of section 24-33-107 (3)(a), C.R.S., for the acquisition of interests in state lands under the jurisdiction of the state board of land commissioners shall be as prescribed by this article. Source: L. 73: p. 178, § 2. C.R.S. 1963: § 50-1-23. Cross references: For state board of land commissioners acquiring land by eminent domain, see § 24-33-107 (3)(a). 38-1-121. Appraisals - negotiations. (1) As soon as a condemning authority determines that it intends to acquire an interest in property, it shall give notice of such intent, together with a description of the property interest to be acquired, to anyone having an interest of record in the property involved. If the property has an estimated value of five thousand dollars or more, such notice shall advise that the condemning authority shall pay the reasonable costs of an appraisal pursuant to subsection (2) of this section. Such notice, however, need not be given to any of such persons who cannot be found by the condemning authority upon the exercise of due diligence. Upon receipt of such notice, such persons may employ an appraiser of their choosing to appraise the property interest to be acquired. Such appraisal shall be made using sound, fair, and recognized appraisal practices which are consistent with law. The value of the land or property actually taken shall be the fair market value thereof. Within ninety days of the date of such notice, such persons may submit to the condemning authority a copy of such appraisal. The condemning authority immediately upon receipt thereof shall submit to such persons copies of its appraisals. If the property interest is being acquired in relation to a federal aid project, then the appraisals submitted by the condemning authority shall be those which have been approved by it pursuant to applicable statutes and regulations, if such approval is required. All of these appraisals may be used by the parties to negotiate in good faith for the acquisition of the property interest, but neither the condemning authority nor such persons shall be bound by such appraisals. (2) If an appraisal is submitted to the condemning authority in accordance with the provisions of subsection (1) of this section, the condemning authority shall pay the reasonable costs of such appraisal. If more than one person is interested in the property sought to be acquired and such persons cannot agree on an appraisal to be submitted under subsection (1) of this section, the condemning authority shall be relieved of any obligation herein imposed upon it to pay for such appraisals as may be submitted to it pursuant to this section. (3) Nothing in this section shall be construed as in any way limiting the obligation of the condemning authority to negotiate in good faith for the acquisition of any property interest Colorado Revised Statutes 2019 Page 13 of 707 Uncertified Printout sought prior to instituting eminent domain proceedings or as in any way limiting the discovery rights of parties to eminent domain proceedings. (4) Nothing in this section shall prevent the condemning authority from complying with federal and state requirements to qualify the authority for federal aid grants. (5) Nothing in this section shall be construed to limit the right of the condemning agency to institute eminent domain proceedings or to obtain immediate possession of property as permitted by law; except that an eminent domain proceeding may not proceed to trial on the issue of valuation until the ninety-day period provided in subsection (1) of this section has expired or the owner's appraisal has been submitted to the condemning authority, whichever is sooner. (6) If the parties involved in the negotiations fail to reach agreement on the fair market value of the property being acquired, the condemning authority, prior to proceeding to trial on the issue of valuation, shall furnish all owners of record a written final offer. Source: L. 75: Entire section added, p. 1405, § 1, effective July 18. L. 78: (1) and (5) amended, p. 274, § 100, effective May 23. L. 85: (1) amended and (6) added, p. 1194, § 5, effective June 6. 38-1-122. Attorney fees. (1) If the court finds that a petitioner is not authorized by law to acquire real property or interests therein sought in a condemnation proceeding, it shall award reasonable attorney fees, in addition to any other costs assessed, to the property owner who participated in the proceedings. (1.5) In connection with proceedings for the acquisition or condemnation of property in which the award determined by the court exceeds ten thousand dollars, in addition to any compensation awarded to the owner in an eminent domain proceeding, the condemning authority shall reimburse the owner whose property is being acquired or condemned for all of the owner's reasonable attorney fees incurred by the owner where the award by the court in the proceedings equals or exceeds one hundred thirty percent of the last written offer given to the property owner prior to the filing of the condemnation action. The provisions of this subsection (1.5) shall not apply to any condemnation proceeding seeking to acquire rights-of-way under article 4, 5, or 5.5 of this title, article 45 of title 37, C.R.S., or section 7 of article XVI of the Colorado constitution. (2) Nothing in subsection (1) of this section shall be construed as limiting the ability of a property owner to recover just compensation, including attorney fees, as may otherwise be authorized by law. Source: L. 85: Entire section added, p. 1195, § 6, effective June 6. L. 2003: (1.5) added, p. 2669, § 2, effective July 1. Cross references: For the legislative declaration in the 2003 act adding subsection (1.5), see section 1 of chapter 421, Session Laws of Colorado 2003. PART 2 GOVERNMENTAL ENTITIES, INDIVIDUALS, AND CORPORATIONS AUTHORIZED TO EXERCISE THE POWER OF Colorado Revised Statutes 2019 Page 14 of 707 Uncertified Printout EMINENT DOMAIN 38-1-201. Legislative declaration. (1) The general assembly hereby finds and declares that: (a) The power of eminent domain allows the federal government, the state, counties, cities and counties, municipalities, and various other types of governmental entities to condemn property when necessary for public use and allows individual property owners and corporations to condemn property in certain circumstances when condemnation is necessary to create a private way of necessity or to allow beneficial use of private property. (b) Although both the state constitution and state statutes require the payment of just compensation to any person whose property is condemned, the exercise of the power of eminent domain nonetheless substantially impacts fundamental property rights. (c) Because of this substantial impact, it is necessary and appropriate to ensure that Coloradans can easily determine which governmental entities, corporations, and other persons may exercise the power of eminent domain and to further ensure that Coloradans can easily identify the procedural requirements that entities, corporations, and other persons must follow when exercising the power of eminent domain. (2) The general assembly further finds and declares that: (a) In addition to counties, cities and counties, and municipalities that serve as general units of government in the state, the governmental structure of the state includes a wide variety of special districts, authorities, and other governmental entities that serve limited governmental purposes, some of which may exercise the power of eminent domain. (b) Although many of the provisions of state law that authorize governmental entities, individuals, and corporations to exercise the power of eminent domain and prescribe procedures that govern the exercise of that power are concentrated in this article and in articles 2 to 7 of this title, the proliferation throughout the history of the state of special districts, authorities, and other governmental entities that serve limited governmental purposes, together with other historical factors that have necessitated grants of eminent domain powers to certain types of corporations and persons, have resulted in the codification in other parts of the Colorado Revised Statutes of many other provisions that authorize the exercise of the power of eminent domain. (c) The codification of provisions of state law that authorize eminent domain in parts of the Colorado Revised Statutes other than this article and articles 2 to 7 of this title makes it difficult in many cases for Coloradans to easily determine, with respect to any given governmental entity, corporation, or person: (I) Whether the governmental entity, corporation, or person may exercise the power of eminent domain; and (II) The procedural requirements that the governmental entity, corporation, or person must comply with in order to exercise the power of eminent domain. (d) In order to help Coloradans to more easily determine whether any given governmental entity, corporation, or person may exercise the power of eminent domain and identify the procedural requirements that the entity, corporation, or person must follow in exercising the power of eminent domain, it is necessary, appropriate, and in the best interests of the state to list in this part 2 all of the governmental entities, corporations, and persons that may exercise the power of eminent domain pursuant to provisions of state law and to clarify that the Colorado Revised Statutes 2019 Page 15 of 707 Uncertified Printout procedural requirements specified in this article and articles 2 to 7 of this title apply to all eminent domain proceedings. (e) In enacting this part 2, it is not the intent of the general assembly to: (I) Repeal, limit, or otherwise modify the authority of any governmental entity, corporation, or person to exercise the power of eminent domain; (II) Grant new eminent domain authority to any governmental entity, individual, or corporation; or (III) Infringe upon the home rule power of any home rule municipality or county. Source: L. 2006: Entire part added, p. 351, § 1, effective August 7. 38-1-202. Governmental entities, corporations, and persons authorized to use eminent domain. (1) The following governmental entities, types of governmental entities, and public corporations, in accordance with all procedural and other requirements specified in this article 1 and articles 2 to 7 of this title 38 and to the extent and within any time frame specified in the applicable authorizing statute, may exercise the power of eminent domain: (a) The United States as authorized in section 3-1-102, C.R.S.; (b) The state: (I) As authorized in paragraph (b) of article IX of the upper Colorado river basin compact, codified at section 37-62-101, C.R.S.; (II) As authorized in paragraph 3. of article V of the South Platte river compact, codified at section 37-65-101, C.R.S.; (III) As authorized in article VII of the Republican river compact, codified at section 3767-101, C.R.S.; (IV) By action of the general assembly or by action of any of the following officers and agencies of the state: (A) The department of human services as authorized in section 19-2-403.5, C.R.S.; (B) The department of natural resources as authorized in section 24-33-107 (3), C.R.S.; (C) The department of personnel with the approval of the governor as authorized in section 24-82-102, C.R.S.; (D) The attorney general at the direction of the governor as authorized in section 24-82302 (1), C.R.S.; (E) Repealed. (F) The governor as authorized in section 27-90-102 (3), C.R.S.; (G) The department of transportation as authorized in sections 33-11-104 (4), 43-1-210 (1), (2), and (3), 43-1-217 (1), 43-1-406 (4), 43-1-414 (1), (2), (3), and (4), 43-1-509, 43-1-1410 (1)(i), 43-2-135 (1)(k), 43-3-106, and 43-3-107, C.R.S.; (H) The state board of land commissioners as authorized in section 36-4-108, C.R.S.; (I) The transportation commission created in section 43-1-106, as authorized in section 43-1-208 (2); (J) The statewide bridge enterprise as authorized in section 43-4-805 (5)(e), C.R.S.; (J.5) The high-performance transportation enterprise as authorized in section 43-4-806 (6)(e), C.R.S.; and (K) The Colorado aeronautical board as authorized in section 43-10-106, C.R.S.; Colorado Revised Statutes 2019 Page 16 of 707 Uncertified Printout (c) State educational boards of control, including the state board for community colleges and occupational education and local district college boards of trustees, and institutions of higher education, as authorized in sections 23-31.5-108, 23-53-105, 23-60-208, 23-71-122 (1)(p), and 38-2-105, C.R.S.; (d) Counties, cities and counties, and boards of county commissioners as authorized in sections 24-72-104 (2), 25-3-306, 29-6-101, 30-11-104 (2), 30-11-107 (1)(w), 30-11-205, 30-11307 (1)(c), 30-20-108 (3), 30-20-402 (1)(a), 30-35-201 (37), (41), (42), and (43), 31-25-216 (2), 41-4-102, 41-4-104, 41-4-108, 41-5-101 (1)(a), 43-1-217 (1), 43-2-112 (2), 43-2-204, 43-2-206, and 43-3-107, C.R.S.; (e) Cities, cities and counties, and towns as authorized in sections 29-4-104 (1)(d), 29-4105, 29-4-106, 29-6-101, 29-7-104, 30-20-108 (3), 31-15-706 (2), 31-15-707 (1)(a) and (1)(e), 31-15-708 (1)(b), 31-15-716 (1)(c), 31-25-201 (1), 31-25-216 (2), 31-25-402 (1)(c), 31-35-304, 31-35-402 (1)(a), 31-35-512 (1)(g), 38-5-105, 38-6-101, 38-6-122, 41-4-108, and 41-4-202, C.R.S.; (f) The following types of single purpose districts, special districts, authorities, boards, commissions, and other governmental entities that serve limited governmental purposes or that may exercise eminent domain for limited purposes on behalf of a county, city and county, city, or town: (I) A school district as authorized in section 22-32-111, C.R.S.; (II) A power authority established pursuant to section 29-1-204 (1), C.R.S., as authorized in section 29-1-204 (3)(f), C.R.S.; (III) A water or drainage authority established pursuant to section 29-1-204.2 (1), C.R.S., as authorized in section 29-1-204.2 (3)(f), C.R.S.; (IV) A multijurisdictional housing authority established pursuant to section 29-1-204.5 (1), C.R.S., as authorized in section 29-1-204.5 (3)(f), C.R.S.; (V) A housing authority organized pursuant to part 2 of article 4 of title 29, C.R.S., as authorized in sections 29-4-209 (1)(k), 29-4-211, and 29-4-212, C.R.S.; (VI) An authority created by a municipality for the purpose of carrying out a development plan pursuant to section 29-4-306, C.R.S., as authorized in sections 29-4-306 (2) and 29-4-307 (1)(a), C.R.S.; (VII) A metropolitan recreation district or park and recreation district organized under article 1 of title 32, C.R.S., or a municipal board given charge of a recreation system as authorized in sections 29-7-104 and 32-1-1005 (1)(c), C.R.S.; (VIII) An improvement district created by a county pursuant to part 5 of article 20 of title 30, C.R.S., as authorized in section 30-20-512 (1)(i), C.R.S.; (IX) An urban renewal authority created pursuant to section 31-25-104, C.R.S., as authorized in sections 31-25-105 (1)(e) and 31-25-105.5, C.R.S., and in accordance with the vesting requirements specified in article 7 of this title; (X) An improvement district created by a municipality pursuant to part 6 of article 25 of title 31, C.R.S., as authorized in section 31-25-611 (1)(i), C.R.S.; (XI) A board of water and sewer commissioners created by the governing body of a municipality pursuant to section 31-35-501, C.R.S., as authorized in sections 31-35-511 and 3135-512 (1)(g), C.R.S.; (XII) A fire protection district as authorized in section 32-1-1002 (1)(b), C.R.S.; (XIII) A metropolitan district as authorized in section 32-1-1004 (4), C.R.S.; Colorado Revised Statutes 2019 Page 17 of 707 Uncertified Printout (XIV) A sanitation, water and sanitation, or water district as authorized in section 32-11006 (1)(f), C.R.S.; (XV) A tunnel district as authorized in section 32-1-1008 (1)(c), C.R.S.; (XVI) A water and sanitation district organized under part 4 of article 4 of title 32, C.R.S., as authorized in section 32-4-406 (1)(j), C.R.S.; (XVII) A metropolitan sewage district organized under the provisions of part 5 of article 4 of title 32, C.R.S., as authorized in section 32-4-502 (5) and 32-4-510 (1)(j), C.R.S.; (XVIII) A regional service authority formed in accordance with the provisions of section 17 of article XIV of the state constitution and article 7 of title 32, C.R.S., as authorized in section 32-7-113 (1)(k), C.R.S.; (XIX) The regional transportation district created in section 32-9-105, C.R.S., as authorized in sections 32-9-103 (2), 32-9-119 (1)(k), and 32-9-161, C.R.S.; (XX) The urban drainage and flood control district created in section 32-11-201, C.R.S., as authorized in sections 32-11-104 (10), 32-11-216 (1)(g), 32-11-220 (1)(b), 32-11-615 (2), and 32-11-663, C.R.S.; (XX.5) The Fountain creek watershed, flood control, and greenway district created in section 32-11.5-201, C.R.S., as authorized in section 32-11.5-205 (1)(n)(I), C.R.S.; (XXI) A mine drainage district organized under the provisions of article 51 of title 34, C.R.S., as authorized in section 34-51-123, C.R.S.; (XXII) A conservation district created pursuant to article 70 of title 35, C.R.S., as authorized in section 35-70-108 (1)(e), C.R.S.; (XXIII) A conservancy district created under articles 1 to 8 of title 37, C.R.S., as authorized in sections 37-2-105 (7), 37-3-103 (1)(h), 37-3-116, 37-3-117, and 37-4-109 (3), C.R.S.; (XXIV) A drainage district organized pursuant to article 20 of title 37, C.R.S., as authorized in sections 37-21-114 (1), 37-23-103, and 37-24-104, C.R.S.; (XXV) The Grand Junction drainage district created in section 37-31-102 (1), C.R.S., as authorized in sections 37-31-119 and 37-31-152, C.R.S.; (XXVI) An irrigation district organized under the provisions of article 41 of title 37, C.R.S., as authorized in sections 37-41-113 (3) and (5), 37-41-114, 37-41-128, and 37-43-207, C.R.S.; (XXVII) An irrigation district organized under the provisions of article 42 of title 37, C.R.S., as authorized in sections 37-42-113 (1) and (2) and 37-43-207, C.R.S.; (XXVIII) An internal improvement district established under the provisions of article 44 of title 37, C.R.S., as authorized in sections 37-44-103 (1)(b), 37-44-108 (1) and (2), 37-44-109, and 37-44-141, C.R.S.; (XXIX) A water conservancy district organized under the provisions of article 45 of title 37, C.R.S., as authorized in sections 37-45-118 (1)(c) and 37-45-119, C.R.S.; (XXX) A water activity enterprise, as defined in section 37-45.1-102 (4), C.R.S., exercising the legal authority to exercise the power of eminent domain of the district that owns it in relation to a water activity, as defined in section 37-45.1-102 (3), C.R.S., as authorized in section 37-45.1-103 (4), C.R.S.; (XXXI) The Colorado river water conservation district created in section 37-46-103, C.R.S., as authorized in section 37-46-107 (1)(i), C.R.S.; Colorado Revised Statutes 2019 Page 18 of 707 Uncertified Printout (XXXII) The southwestern water conservation district created in section 37-47-103, C.R.S., as authorized in section 37-47-107 (1)(i), C.R.S.; (XXXIII) The Rio Grande water conservation district created in section 37-48-102, C.R.S., as authorized in section 37-48-105 (1)(i), C.R.S.; (XXXIV) The Republican river water conservation district created in section 37-50-103 (1), C.R.S., as authorized in section 37-50-107 (1)(j), C.R.S.; (XXXV) The Colorado water conservation board created in section 37-60-102, C.R.S., as authorized in section 37-60-106 (1)(j), C.R.S.; (XXXVI) The Colorado water resources and power development authority created in section 37-95-104 (1), C.R.S., as authorized in section 37-95-106 (1)(n) and (1)(v), C.R.S.; (XXXVII) A public airport authority created under the provisions of article 3 of title 41, C.R.S., as authorized in section 41-3-106 (1)(j), C.R.S.; (XXXVIII) A public highway authority created pursuant to section 43-4-504, C.R.S., as authorized in sections 43-4-505 (1)(a)(IV) and 43-4-506 (1)(h), C.R.S.; (XXXIX) A regional transportation authority created pursuant to section 43-4-603, C.R.S., as authorized in section 43-4-604 (1)(a)(IV), C.R.S.; and (XL) The Colorado aeronautical board created in section 43-10-104, C.R.S., as authorized in section 43-10-106 (1), C.R.S. (2) The following types of corporations and persons, in accordance with all procedural and other requirements specified in this article and articles 2 to 7 of this title 38 and to the extent and within any time frame specified in the applicable authorizing provision of the state constitution or statute may exercise the power of eminent domain: (a) A person or corporation that needs to exercise the power of eminent domain in order to acquire any right-of-way across public, private, or corporate lands for the construction of ditches, canals, and flumes for the purposes of conveying water for domestic purposes, for the irrigation of agricultural lands, for mining and manufacturing purposes, or for drainage, as authorized in section 7 of article XVI of the state constitution; (b) A pipeline company as authorized in article 5 of this title and sections 7-43-102, 3448-105, 34-48-111, 38-1-101.5, 38-1-101.7, 38-2-101, 38-4-102, and 38-4-107, C.R.S.; (c) A cemetery company organized pursuant to section 7-47-101, C.R.S., as authorized in section 7-47-102, C.R.S.; (d) A cemetery authority, as defined in section 6-24-101 (3), as authorized in section 624-104; (e) A public utility as authorized in section 32-12-125, C.R.S.; (f) An owner or agent of an owner of coal lands lying on two or more sides of the property of another as authorized in section 34-31-101, C.R.S.; (g) A person who requires a right-of-way or property in order to bring water or air into a mine or convey tailings and wastes from a mining operation, construct or maintain a flume, ditch, pipeline, tram, tramway, or pack trail over or through mining claims, or follow a mineralbearing vein or lode into the property of another person pursuant to an established right to do so as authorized in sections 34-48-101, 34-48-105, 34-48-107, 34-48-110, and 34-48-111, C.R.S.; (h) A natural gas public utility, as defined in section 34-64-102 (3), C.R.S., as authorized in section 34-64-103, C.R.S.; (i) A person who owns a water right or conditional water right as authorized in article 86 of title 37, C.R.S.; Colorado Revised Statutes 2019 Page 19 of 707 Uncertified Printout (j) A person who needs to create or operate a water storage facility in order to realize the person's right to appropriate water as authorized in section 37-87-101, C.R.S.; (k) A person who, under general laws or special charter, requires and is entitled to private property of another for private use, private ways of necessity, or for reservoirs, drains, flumes, or ditches on or across the lands of others for agricultural, mining, milling, domestic, or sanitary purposes as authorized in section 38-1-102; (l) A corporation formed for the purpose of constructing a road, ditch, reservoir, pipeline, bridge, ferry, tunnel, telegraph line, railroad line, electric line, electric plant, telephone line, or telephone plant as authorized in section 38-2-101; (m) Landowners who wish to construct a drain to carry off surplus water as authorized in section 38-2-103; (n) A mineral landowner who needs to construct a connecting railroad spur over another landowner's property as authorized in section 38-2-104; (o) A tunnel company as authorized in sections 38-2-101, 38-4-101, 38-4-107, and 38-4110; (p) An electric power company as authorized in sections 38-2-101, 38-4-101, and 38-4107; (q) A tramway company as authorized in sections 38-4-104 and 38-4-107; (r) A telegraph, telephone, electric light power, gas, or pipeline company as authorized in sections 38-2-101 and 38-5-105 and limited by section 38-5-108; and (s) A person, company, corporation, or association that has been granted an electric railroad franchise as authorized in section 40-24-102, C.R.S. Source: L. 2006: Entire part added, p. 353, § 1, effective August 7. L. 2007: (1)(c) amended, p. 550, § 6, effective August 3. L. 2008: (1)(d) and (1)(e) amended, p. 2055, § 13, effective July 1. L. 2009: (1)(b)(IV)(J) amended and (1)(b)(IV)(J.5) added, (SB 09-108), ch. 5, p. 54, § 16, effective March 2; (1)(f)(XX.5) added, (SB09-141), ch. 194, p. 875, § 2, effective April 30. L. 2010: (1)(b)(IV)(F) amended, (SB 10-175), ch. 188, p. 807, § 83, effective April 29. L. 2011: (1)(b)(IV)(F) amended, (HB 11-1303), ch. 264, p. 1173, § 87, effective August 10. L. 2015: (1)(b)(IV)(E) repealed, (HB 15-1145), ch. 79, p. 228, § 10, effective August 5. L. 2017: IP(2) and (2)(d) amended, (HB 17-1244), ch. 239, p. 983, § 3, effective August 9. L. 2019: IP(1) and (1)(b)(IV)(I) amended, (SB 19-017), ch. 67, p. 244, § 3, effective August 2. Cross references: For the legislative declaration in SB 19-017, see section 1 of chapter 67, Session Laws of Colorado 2019. ARTICLE 2 Specific Grants of Power 38-2-101. Who may condemn real estate, rights-of-way, or other rights - additional requirements for private toll roads and toll highways. (1) If any corporation formed for the purpose of constructing a road, ditch, reservoir, pipeline, bridge, ferry, tunnel, telegraph line, railroad line, electric line, electric plant, telephone line, or telephone plant is unable to agree with the owner for the purchase of any real estate or right-of-way or easement or other right necessary Colorado Revised Statutes 2019 Page 20 of 707 Uncertified Printout or required for the purpose of any such corporation for transacting its business or for any lawful purpose connected with the operations of the company, the corporation may acquire title to such real estate or right-of-way or easement or other right in the manner provided by law for the condemnation of real estate or right-of-way. Any ditch, reservoir, or pipeline company, in the same manner, may condemn and acquire the right to take and use any water not previously appropriated. (2) Notwithstanding the provisions of subsection (1) of this section, a toll road or toll highway company may not condemn real estate or right-of-way, but the department of transportation may exercise, subject to the conditions and limitations set forth in sections 7-45104 and 43-1-1202 (1)(f), C.R.S., the power of eminent domain for purposes of acquiring property and rights-of-way necessary for the completion of a toll road or toll highway open to the public that is incorporated into the comprehensive statewide transportation plan prepared pursuant to section 43-1-1103 (5), C.R.S., and is being undertaken as a public-private initiative between the department and the company. Such a toll road or toll highway company shall provide written notice of its intent to construct a toll road or toll highway as required by section 7-45-108 (2), C.R.S. (3) Nothing in this section shall be construed to authorize any toll road or toll highway company to construct a toll road or toll highway through, in, upon, under, or over any street or alley of any city, incorporated town, county, or city and county without first obtaining the consent of the municipal or county authorities having power to give the consent of the city, incorporated town, county, or city and county. (4) (a) A political subdivision may levy a tax, fee, or charge on a toll road or toll highway company for any right or privilege of constructing or operating a toll road or toll highway such as a street or public highway construction permit fee or an impact fee or other similar development charge designed to fund expenditures by the political subdivision on capital facilities needed to serve the toll road or toll highway, but shall only levy a construction permit fee to the extent that the permit fee applies to all persons seeking a construction permit. (b) All permit fees, impact fees, or other similar development charges levied by a political subdivision on a toll road or toll highway company constructing or operating a toll road or toll highway shall be no greater than necessary to defray the costs directly incurred by the political subdivision in providing services, and, in the case of impact fees or other development charges, shall be no greater than necessary to defray impacts directly related to the toll road or toll highway. The fees and charges shall also be reasonably related in time to the incurrence of the impacts or costs. In any controversy concerning the appropriateness of a fee or charge, the political subdivision shall have the burden of proving that the fee or charge is no greater than necessary to defray the direct impacts or costs incurred by the political subdivision. All costs of construction shall be borne by the toll road or toll highway company constructing or operating the toll road or toll highway. (5) As used in this section, unless the context otherwise requires: (a) (Deleted by amendment, L. 2008, p. 1712, § 9, effective June 2, 2008.) (b) "Toll road or toll highway" shall have the meaning set forth in section 7-45-102 (8), C.R.S. (c) "Toll road or toll highway company" shall have the meaning set forth in section 7-45102 (9), C.R.S. Colorado Revised Statutes 2019 Page 21 of 707 Uncertified Printout Source: G.L. § 304. G.S. § 338. L. 1891: p. 98, § 3. R.S. 08: § 2461. C.L. § 6362. CSA: C. 61, § 52. L. 52: p. 109, § 1. CRS 53: § 50-2-1. C.R.S. 1963: § 50-2-1. L. 79: Entire section amended, p. 1381, § 2, effective July 1. L. 2006: (2), (3), and (4) amended and (5) added, p. 1769, § 2, effective June 6; entire section amended, p. 546, § 1, effective August 7. L. 2008: (2) and (5)(a) amended, p. 1712, § 9, effective June 2. Cross references: For the taking of private property for private use, see § 14 of art. II, Colo. Const.; for taking property for public use, see § 15 of art. II, Colo. Const.; for the right-ofway of pipeline companies, see § 7-43-102. 38-2-102. Entering lands to survey - liability. Any corporation formed for the purpose of constructing a road, ditch, tunnel, or railroad may cause such examination and survey as may be necessary to the selection of the most advantageous route and, for such purpose, by its officers, agents, or servants may enter upon the lands of any person or corporation, but subject to liability for all actual damages which are occasioned thereby. Source: G.L. § 305. G.S. § 339. R.S. 08: § 2462. C.L. § 6363. CSA: C. 61, § 53. CRS 53: § 50-2-2. C.R.S. 1963: § 50-2-2. 38-2-103. Proceedings to drain. Whenever the owners of any parcels of land desire to construct a drain for the purpose of carrying off surplus water and they cannot agree among themselves or with the parties who own land below, through which it is expedient to carry the drain in order to reach a natural waterway, then proceedings may be had in the same manner as in cases of eminent domain affecting irrigation works of diversion. The rights-of-way for such drains shall be regarded as equal to those for irrigation canals. Source: L. 1893: p. 258, § 1. R.S. 08: § 2463. C.L. § 6364. CSA: C. 61, § 54. CRS 53: § 50-2-3. C.R.S. 1963: § 50-2-3. 38-2-104. Mineral landowner may construct connecting railway spur. It is lawful for the owner of any coal or other mineral lands, not contiguous to any railroad in this state, desiring to connect such lands with any railroad by means of a connecting railway spur, not to exceed fifteen miles in length, to construct and operate such connecting railway spur across any other lands lying intermediate between such coal or other mineral lands and any railroad with which such connection may be desired. In case the owner of such coal or other mineral lands is unable to agree with the owner of such intermediate lands for the purchase of any necessary rights-ofway across such intermediate lands for the purpose of constructing and operating such connecting railway spur as to the purchase price on such rights-of-way, then the owner of such coal or other mineral lands may exercise the right of eminent domain and condemn any rightsof-way across such intermediate lands necessary to make such connection and to construct and operate such connecting railway spur, and it may acquire title to such rights-of-way in the manner provided by law for the condemnation of lands for rights-of-way by railroad companies. All the laws of this state relating to the manner of exercising the right of eminent domain by railroad companies are hereby made applicable to such proceedings. Colorado Revised Statutes 2019 Page 22 of 707 Uncertified Printout Source: L. 01: p. 237, § 1. R.S. 08: § 2464. C.L. § 6365. CSA: C. 61, § 55. CRS 53: § 50-2-4. C.R.S. 1963: § 50-2-4. 38-2-105. Higher education governing boards have right of eminent domain. The regents of the university of Colorado, the board of governors of the Colorado state university system for Colorado state university and Colorado state university - Pueblo, the board of trustees for Fort Lewis college, the board of trustees of the Colorado school of mines, the board of trustees for the university of northern Colorado, the board of trustees for Adams state university, the board of trustees for Colorado Mesa university, the board of trustees for Western Colorado university, and the board of trustees for Metropolitan state university of Denver have the power to acquire real property, which they may deem necessary, by the exercise of eminent domain through condemnation proceedings in accordance with law. Source: L. 37: p. 402, § 1. CSA: C. 61, § 56. CRS 53: § 50-2-5. L. 61: pp. 708, 709, §§ 2, 3. C.R.S. 1963: § 50-2-5. L. 2002: Entire section amended, p. 1249, § 27, effective August 7. L. 2003: Entire section amended, p. 2002, § 65, effective May 22; entire section amended, p. 792, § 15, effective July 1. L. 2004: Entire section amended, p. 1205, § 81, effective August 4. L. 2010: Entire section amended, (HB 10-1375), ch. 327, p. 1515, § 1, effective May 27. L. 2011: Entire section amended, (SB 11-265), ch. 292, p. 1368, § 26, effective August 10. L. 2012: Entire section amended, (HB 12-1080), ch. 189, p. 761, § 25, effective May 19; entire section amended, (SB 12-148), ch. 125, p. 429, § 20, effective July 1; entire section amended, (HB 12-1331), ch. 254, p. 1272, § 20, effective August 1. L. 2019: Entire section amended, (HB 19-1178), ch. 400, p. 3547, § 20, effective July 1. Editor's note: (1) Amendments to this section by House Bill 03-1093 and House Bill 03-1344 were harmonized. (2) Amendments to this section by House Bill 12-1080, House Bill 12-1331, and Senate Bill 12-148 were harmonized. Cross references: (1) For the legislative declaration in the 2011 act amending this section, see section 1 of chapter 292, Session Laws of Colorado 2011. (2) For the legislative declaration in the 2012 act amending this section, see section 1 of chapter 125, Session Laws of Colorado 2012. ARTICLE 3 Condemnation of Public Lands 38-3-101. Condemning public land - petition. Whenever any corporation authorized to appropriate for a public use by the exercise of the right of eminent domain lands, rights-of-way, or other rights or easements in lands requires, needs, or desires to appropriate lands, rights-ofway, or other rights or easements in lands which belong to the United States, the state of Colorado, or any other state or sovereignty, such corporation, for the purpose of having such lands, rights-of-way, or other rights or easements appropriated to such use and for determining the compensation to be paid to such owner therefor, may present a petition to the district court in Colorado Revised Statutes 2019 Page 23 of 707 Uncertified Printout each of the counties in which such lands, or any part thereof, are located, describing the desired property, giving the name of the owner thereof, and stating by whom and for what purpose it is proposed to be appropriated and that it is needed and required by the petitioner for the public use to which it is proposed to devote the same, and praying that such court appropriate such property to its use and determine the compensation to be paid to the owner therefor. Source: L. 15: p. 229, § 1. C.L. § 6331. CSA: C. 61, § 21. CRS 53: § 50-3-1. C.R.S. 1963: § 50-3-1. L. 64: p. 266, § 167. 38-3-102. Notice - service - publication. The court shall fix a time for the first hearing upon said petition. Notice directed to such owner of the filing of the petition and its object and containing a description of the property and of the time and place of the first hearing shall be published by such corporation in one or more newspapers of general circulation in the state of Colorado once a week for six weeks prior to the time set for the first hearing. At least two weeks before the time set for the first hearing, a copy of said notice shall be served on any party who is in actual possession of the land, and, in case the state is the owner, on the attorney general, and, in case the United States is the owner, on the United States attorney for the district in which the land or any part thereof is situated. The copy of such notice shall be deemed to have been sufficiently served if delivered during the usual hours of business at the residence of the party in possession or at the office of the attorney general or the United States attorney, as the case may be. Source: L. 15: p. 230, § 2. C.L. § 6332. CSA: C. 61, § 22. CRS 53: § 50-3-2. C.R.S. 1963: § 50-3-2. L. 76: Entire section amended, p. 607, § 33, effective July 1. Cross references: For publication of legal notices, see part 1 of article 70 of title 24. 38-3-103. Hearing - findings filed - published. Upon proof being filed of the publication of such notice and of such personal service where required, the court, at the time and place therein fixed or to which the hearing may be adjourned, shall proceed to hear the allegations and proofs of all persons interested which touch the matters committed to it, and it shall regulate the order of proof as it may deem best. The testimony taken by it shall be under oath. The court shall determine the truth of the matters alleged and set forth in the petition and also the compensation to be paid to such owner for the lands, rights-of-way, or other rights or easements in lands to be appropriated. In the event that the petitioner has theretofore taken possession of such lands, rights-of-way, or other rights or easements in lands, the value thereof shall be determined without considering the value of any improvements that may have been constructed by such corporation and as of the date when such corporation took possession. The court shall file among its records its findings in writing and shall give notice to the petitioner that its findings have been filed. The petitioner shall cause a notice to be published in one or more newspapers of general circulation in the state of Colorado once a week for two weeks, setting forth that the findings of the court have been filed and stating the amount of the compensation fixed by the court. If the owner has appeared in said proceeding by attorney, a copy of said notice shall be served prior to the last publication of said notice upon the attorney so appearing. Colorado Revised Statutes 2019 Page 24 of 707 Uncertified Printout Source: L. 15: p. 230, § 3. C.L. § 6333. CSA: C. 61, § 23. CRS 53: § 50-3-3. C.R.S. 1963: § 50-3-3. 38-3-104. Order - copy recorded. In case no appeal is taken within thirty days after the last publication of notice that the findings of the court have been filed, the court, upon the payment by the petitioner to the clerk of such court of the compensation fixed by the court and upon motion of the petitioner, shall enter an order appropriating the lands, rights-of-way, or other rights or easements in lands, as the case may be, to the petitioner. Thereafter, the same shall be the property of the petitioner, and a certified copy of the order may be filed for record with the county clerk and recorder of the county in which such lands, rights-of-way, or other rights or easements in lands are located. Such record shall be notice, and a certified copy of such record shall be evidence of the title and rights of the petitioner as therein set forth. The clerk of said court shall notify the owner of the property of the payment of the compensation fixed by the court and shall pay the same to such owner on demand. Source: L. 15: p. 231, § 4. C.L. § 6334. CSA: C. 61, § 24. CRS 53: § 50-3-4. C.R.S. 1963: § 50-3-4. 38-3-105. Judgment - appellate review. Upon the payment into court of the compensation assessed, the court shall give judgment appropriating the lands, rights-of-way, or other rights or easements in lands, as the case may be, to the petitioner, and thereafter the same shall be the property of the petitioner. Either party to the action may appeal from the judgment in like manner and with like effect as in ordinary condemnation cases. Such appeal shall not stay the proceedings so as to prevent the petitioner from taking such lands into its possession and using them for the purposes of the petitioner or from proceeding to exercise the rights-of-way or other rights or easements appropriated. Source: L. 15: p. 231, § 5. C.L. § 6335. CSA: C. 61, § 25. CRS 53: § 50-3-5. C.R.S. 1963: § 50-3-5. ARTICLE 4 Rights-of-way: Designated Common Carriers 38-4-101. Tunnel companies. Any foreign or domestic corporation organized or chartered for the purpose, among other things, of carrying, transmitting, or delivering ores, minerals, or other property for hire by means of a tunnel shall have the right-of-way for the construction, operation, and maintenance of any such tunnel of sufficient size and dimensions for such purpose through or over any patented or unpatented mines, mining claims, or other lands without the consent of the owner thereof, if such right-of-way is necessary to reach the place to or from which it is proposed to carry such ores, minerals, or other property. Source: L. 07: p. 282, § 1. R.S. 08: § 2435. C.L. § 6336. CSA: C. 61, § 26. CRS 53: § 50-4-1. C.R.S. 1963: § 50-4-1. Colorado Revised Statutes 2019 Page 25 of 707 Uncertified Printout 38-4-102. Pipeline companies. Any foreign or domestic corporation organized or chartered for the purpose, among other things, of conducting or maintaining a pipeline for the transmission of power, water, air, or gas for hire to any mine or mining claim or for any manufacturing, milling, mining, or public purpose shall have the right-of-way for the construction, operation, and maintenance of such pipeline for such purpose through any lands without the consent of the owner thereof, if such right-of-way is necessary for the purpose for which said pipeline is used. Source: L. 07: p. 283, § 2. R.S. 08: § 2436. C.L. § 6337. CSA: C. 61, § 27. CRS 53: § 50-4-2. C.R.S. 1963: § 50-4-2. Cross references: For the right-of-way of pipeline companies, see § 7-43-102. 38-4-103. Electric power companies. (1) Any foreign or domestic corporation organized or chartered for the purpose, among other things, of conducting and maintaining electric power lines for providing power or light by means of electricity for hire has a right-ofway for the construction, operation, and maintenance of electric power lines through any patented or unpatented mine or mining claim or other land without the consent of the owner of the patented or unpatented mine or mining claim or other land, if the right-of-way is necessary for the purposes proposed. (2) An electric utility, as defined in section 40-15-601 (6), exercising its rights under subsection (1) of this section may, in accordance with part 6 of article 15 of title 40: (a) Install or allow the installation of any attached facility, as that term is defined in section 40-15-601 (1); and (b) Exercise any rights available to the electric utility under part 6 of article 15 of title 40 in connection with the installation. Source: L. 07: p. 283, § 3. R.S. 08: § 2437. C.L. § 6338. CSA: C. 61, § 28. CRS 53: § 50-4-3. C.R.S. 1963: § 50-4-3. L. 2019: Entire section amended, (SB 19-107), ch. 424, p. 3713, § 2, effective August 2. 38-4-104. Tramway companies. Any foreign or domestic corporation organized or chartered for the purposes, among other things, of conducting and maintaining for hire an aerial tramway for transporting ores, minerals, waste materials, or other property from any mine or mining claim by means of an aerial tramway shall have the right-of-way for the construction, operation, and maintenance for such tramway and for all necessary towers and supports thereof over and across any intervening mining claims, lands, or premises without the consent of the owner thereof, if such right-of-way is necessary for the purposes proposed. Source: L. 07: p. 283, § 4. R.S. 08: § 2438. C.L. § 6339. CSA: C. 61, § 29. CRS 53: § 50-4-4. C.R.S. 1963: § 50-4-4. 38-4-105. Common carriers - fees. Any such corporations organized or chartered for any or all of the purposes mentioned in sections 38-4-101 to 38-4-104 shall be deemed common Colorado Revised Statutes 2019 Page 26 of 707 Uncertified Printout carriers and shall fix and charge only a reasonable and uniform rate to all persons who desire the use of any such tunnel, pipeline, electric power transmission lines, or aerial tramway. Source: L. 07: p. 283, § 5. R.S. 08: § 2439. C.L. § 6340. CSA: C. 61, § 30. CRS 53: § 50-4-5. C.R.S. 1963: § 50-4-5. 38-4-106. Distance governs rate. In fixing the rate to be charged its patrons, as provided in section 38-4-105, any such transportation tunnel company or aerial tramway company shall take into consideration the distance over which the materials to be transported are carried. Source: L. 07: p. 284, § 6. R.S. 08: § 2440. C.L. § 6341. CSA: C. 61, § 31. CRS 53: § 50-4-6. C.R.S. 1963: § 50-4-6. 38-4-107. Compensation. Any such corporation shall make due and just compensation for such right-of-way to the owners of the property through which it is proposed to construct, operate, and maintain such tunnel, pipeline, electric transmission lines, or aerial tramway. When the parties cannot agree upon such right-of-way and the amount of compensation to be paid the owner of such property, the same shall be determined in the manner provided by law for the exercise of the right of eminent domain. Source: L. 07: p. 284, § 7. R.S. 08: § 2441. C.L. § 6342. CSA: C. 61, § 32. CRS 53: § 50-4-7. C.R.S. 1963: § 50-4-7. 38-4-108. Owner entitled to minerals. The owner of any vein, lode, mining claim, or other property over which it is proposed to construct a tunnel, as provided in this article, shall have the right to all ores and minerals taken from such vein or lode at the intersection thereof with such tunnel. Source: L. 07: p. 284, § 8. R.S. 08: § 2442. C.L. § 6343. CSA: C. 61, § 33. CRS 53: § 50-4-8. C.R.S. 1963: § 50-4-8. 38-4-109. Owner to have access to tunnel. The owner of such vein or lode so intersected shall have the right, at any reasonable time and from time to time, upon application to the superintendent or other managing officer of such tunnel corporation, to enter such tunnel with his surveyors and inspectors for the purpose of inspecting and making a survey of any such vein or lode. The owner of such vein or lode and his employees shall have the right of ingress and egress into and out of said tunnel at all reasonable times. Source: L. 07: p. 284, § 9. R.S. 08: § 2443. C.L. § 6344. CSA: C. 61, § 34. CRS 53: § 50-4-9. C.R.S. 1963: § 50-4-9. 38-4-110. No right to vein matter acquired. Nothing in this article shall be so construed as to give such tunnel corporation the right to follow any vein or lode without the consent of the owner. When any vein or lode is encountered in driving any such tunnel, such Colorado Revised Statutes 2019 Page 27 of 707 Uncertified Printout tunnel corporation shall only have the right-of-way to cross such vein or lode at such angle as may be suitable for the convenient operation of the tunnel. Source: L. 07: p. 284, § 10. R.S. 08: § 2444. C.L. § 6345. CSA: C. 61, § 35. CRS 53: § 50-4-10. C.R.S. 1963: § 50-4-10. 38-4-111. Tunnel company to file map. Any such tunnel corporation desiring to avail itself of the benefit of this article shall file with the county clerk and recorder of the county in which it is proposed to operate a map or survey of the proposed tunnel for which it desires a right-of-way, together with a statement showing the route of the proposed tunnel and the patented or unpatented mining claims or other property through which it is proposed to construct the same, and may file supplementary maps and surveys upon any lawful change of its proposed line of tunnel. Source: L. 07: p. 284, § 11. R.S. 08: § 2445. C.L. § 6346. CSA: C. 61, § 36. CRS 53: § 50-4-11. C.R.S. 1963: § 50-4-11. 38-4-112. Pipeline company to file map. Any such pipeline corporation desiring to avail itself of the benefit of this article shall file with the county clerk and recorder of the county in which it is proposed to operate a map or survey of the proposed line for which it desires a right-of-way, together with a statement showing the route of the proposed pipeline and the patented or unpatented mining claims or other property through which it is proposed to construct the same, and may file supplementary maps and surveys upon any lawful change of its proposed line. Source: L. 07: p. 285, § 12. R.S. 08: § 2446. C.L. § 6347. CSA: C. 61, § 37. CRS 53: § 50-4-12. C.R.S. 1963: § 50-4-12. 38-4-113. Power company to file map. Any such electric power transmission corporation desiring to avail itself of the benefit of this article shall file with the county clerk and recorder of the county in which it proposes to operate a map or survey of the proposed lines for which it desires a right-of-way, together with a statement showing the route of the proposed lines and the patented or unpatented mining claims or other property through which it is proposed to construct the same, and may file supplementary maps and surveys upon any lawful change of its proposed lines. Source: L. 07: p. 285, § 13. R.S. 08: § 2447. C.L. § 6348. CSA: C. 61, § 38. CRS 53: § 50-4-13. C.R.S. 1963: § 50-4-13. 38-4-114. Tramway company to file map. Any such aerial tramway corporation desiring to avail itself of the benefit of this article shall file with the county clerk and recorder of the county in which it is proposed to operate a map or survey of the proposed route for which it desires a right-of-way, together with a statement showing the route of the proposed tramway and the patented or unpatented mining claims or other property over or across which it is proposed to Colorado Revised Statutes 2019 Page 28 of 707 Uncertified Printout construct the same, and may file supplementary maps and surveys upon any lawful change of its proposed route. Source: L. 07: p. 285, § 14. R.S. 08: § 2448. C.L. § 6349. CSA: C. 61, § 39. CRS 53: § 50-4-14. C.R.S. 1963: § 50-4-14. 38-4-115. Companies to transport ore - toll. Any such tunnel or aerial tramway corporation, subject to its reasonable regulations, shall accept from the owners of mining properties all ores, waste materials, and other materials loaded in cars and delivered to it along its line of tunnel or aerial tramways for transportation and afford facilities for the handling of the same at such place upon payment to it at the rates established and fixed by such tunnel or aerial tramway corporation. Source: L. 07: p. 285, § 15. R.S. 08: § 2449. C.L. § 6350. CSA: C. 61, § 40. CRS 53: § 50-4-15. C.R.S. 1963: § 50-4-15. 38-4-116. Companies to furnish power - fees. Any such pipeline corporation or electric power transmission corporation, subject to its reasonable regulations, shall furnish to the owners of mining properties power from said pipelines or electric power transmission lines upon payment to it at the rates established and fixed by such corporation. Source: L. 07: p. 286, § 16. R.S. 08: § 2450. C.L. § 6351. CSA: C. 61, § 41. CRS 53: § 50-4-16. C.R.S. 1963: § 50-4-16. ARTICLE 5 Rights-of-way: Transmission Companies 38-5-101. Use of public highways. Any domestic or foreign electric light power, gas, or pipeline company authorized to do business under the laws of this state or any city or town owning electric power producing or distribution facilities shall have the right to construct, maintain, and operate lines of electric light, wire or power or pipeline along, across, upon, and under any public highway in this state, subject to the provisions of this article. Such lines of electric light, wire or power, or pipeline shall be so constructed and maintained as not to obstruct or hinder the usual travel on such highway. Source: L. 07: p. 385, § 1. R.S. 08: § 2451. C.L. § 6352. CSA: C. 61, § 42. L. 39: p. 365, § 1. CRS 53: § 50-5-1. L. 63: p. 479, § 1. C.R.S. 1963: § 50-5-1. L. 96: Entire section amended, p. 303, § 2, effective April 12. 38-5-102. Right-of-way across state land. Any domestic or foreign electric light power, gas, or pipeline company authorized to do business under the laws of this state, or any city or town owning electric power producing or distribution facilities shall have the right to construct, maintain, and operate lines of electric light wire or power or pipeline and obtain permanent right-of-way therefor over, upon, under, and across all public lands owned by or under the Colorado Revised Statutes 2019 Page 29 of 707 Uncertified Printout control of the state, upon the payment of such compensation and upon compliance with such reasonable conditions as may be required by the state board of land commissioners. Source: L. 07: p. 385, § 2. R.S. 08: § 2452. C.L. § 6353. CSA: C. 61, § 43. L. 39: p. 365, § 2. CRS 53: § 50-5-2. L. 63: p. 479, § 2. C.R.S. 1963: § 50-5-2. L. 96: Entire section amended, p. 303, § 3, effective April 12. 38-5-103. Power of companies to contract. (1) Such electric light power, gas, or pipeline company, or such city, town, or other local government shall have power to contract with any person or corporation, the owner of any lands or any franchise, easement, or interest therein over or under which the line of electric light wire power or pipeline is proposed to be laid or created for the right-of-way for the construction, maintenance, and operation of its electric light wires, pipes, poles, regulator stations, substations, or other property and for the erection, maintenance, occupation, and operation of offices at suitable distances for the public accommodation. (2) An electric utility, as defined in section 40-15-601 (6), exercising its rights under subsection (1) of this section may, in accordance with part 6 of article 15 of title 40, install or allow the installation of any attached facility for commercial broadband service, as those terms are defined in section 40-15-601 (1) and (3), respectively. Source: L. 07: p. 386, § 3. R.S. 08: § 2453. C.L. § 6354. CSA: C. 61, § 44. CRS 53: § 50-5-3. L. 63: p. 480, § 3. C.R.S. 1963: § 50-5-3. L. 96: Entire section amended, p. 303, § 4, effective April 12. L. 2019: Entire section amended, (SB 19-107), ch. 424, p. 3714, § 3, effective August 2. 38-5-104. Right-of-way across private lands. (1) Such telegraph, telephone, electric light power, gas, or pipeline company or such city or town shall be entitled to the right-of-way over or under the land, property, privileges, rights-of-way, and easements of other persons and corporations and to the right to erect its poles, wires, pipes, regulator stations, substations, systems, and offices upon making just compensation therefor in the manner provided by law. The rights granted by this section and section 38-5-105 to such electric light power, gas, or pipeline companies or to such cities and towns shall not extend to the taking of any portion of the right-of-way of a railroad company, except to the extent of acquiring any necessary easement to cross the same or to serve such railroad company with electric light, power, or gas service. The rights granted by this section and section 38-5-105 to telegraph or telephone companies shall not extend to the taking of any portion of the right-of-way of a railroad company, except to the extent of acquiring any easement which does not materially interfere with the existing use by the railroad company, or except to the extent of acquiring any necessary easement to cross the same or to serve such railroad company with telegraph or telephone service. (2) If any right-of-way is taken by such telegraph, telephone, electric light power, gas, or pipeline company, city or town over any portion of the right-of-way of a railroad company the taking party shall pay the entire cost of constructing its facilities along such right-of-way, including any expenses incurred by the railroad for inspection and flagging as reasonably necessary to avoid interference with safe operation of the railroad. The taking party shall also bear the entire cost, including the cost of such inspection and flagging, of removing, relocating, Colorado Revised Statutes 2019 Page 30 of 707 Uncertified Printout altering, or protecting any facility installed on right-of-way so taken if, at any time, such removal, relocation, alteration, or protection becomes reasonably necessary to avoid interference with the railroad company's ability to use its original right-of-way to operate its railroad efficiently and safely and to efficiently and safely serve existing, new, or potential railroad customers. The taking party shall indemnify the railroad company from all losses and expenses resulting from the negligence of the taking party, its successors or contractors, in connection with or related to such right-of-way. The taking party shall have no claim against the railroad for any loss resulting from damage to the taking party's telegraph or telephone facilities resulting from any unforeseen emergencies or acts of God such as derailment, explosions, collisions, or activities reasonably performed in repairing damages caused by such occurrences. Source: L. 07: p. 386, § 4. R.S. 08: § 2454. C.L. § 6355. CSA: C. 61, § 45. CRS 53: § 50-5-4. L. 63: p. 480, § 4. C.R.S. 1963: § 50-5-4. L. 79: Entire section amended, p. 1382, § 3, effective July 1. 38-5-105. Companies, cities, and towns have eminent domain right. Such telegraph, telephone, electric light power, gas, or pipeline company or such city or town is vested with the power of eminent domain, and authorized to proceed to obtain rights-of-way for poles, wires, pipes, regulator stations, substations, and systems for such purposes by means thereof. Whenever such company or such city or town is unable to secure by deed, contract, or agreement such rights-of-way for such purposes over, under, across, and upon the lands, property, privileges, rights-of-way, or easements of persons or corporations, it shall be lawful for such telegraph, telephone, electric light power, gas, or pipeline company or any city or town owning electric power producing or distribution facilities to acquire such title in the manner now provided by law for the exercise of the right of eminent domain and in the manner as set forth in this article. Source: L. 07: p. 386, § 5. R.S. 08: § 2455. C.L. § 6356. CSA: C. 61, § 46. CRS 53: § 50-5-5. L. 63: p. 480, § 5. C.R.S. 1963: § 50-5-5. 38-5-106. Possession pending action. At any time after jurisdiction has been obtained pursuant to section 38-1-103, the petitioner, upon notice to the respondent pursuant to the Colorado rules of civil procedure, may move for an order for immediate possession. Upon such motion and after hearing, the court, by rule in that behalf made, may authorize the petitioner, upon payment into court or to the clerk thereof of the amount determined by the court as probably sufficient to pay the sum that may ultimately be awarded as compensation and damages for the taking, if not in possession to take possession of such right-of-way, and if already in possession to maintain and keep such possession, and in all cases to use and enjoy such right-ofway during the pendency and until the final conclusion of such proceedings, and the court may stay all actions and proceedings against such petitioner on account thereof. Withdrawal from the sum so deposited may be had as provided in section 38-1-105 (6)(b). At such hearing for immediate possession, the court shall hear and dispose of all objections that are raised at that time concerning the motion for immediate possession, the legal sufficiency of the petition, or the regularity of the proceedings in any other respect. Colorado Revised Statutes 2019 Page 31 of 707 Uncertified Printout Source: L. 07: p. 386, § 6. R.S. 08: § 2456. C.L. § 6357. CSA: C. 61, § 47. CRS 53: § 50-5-6. C.R.S. 1963: § 50-5-6. L. 75: Entire section amended, p. 1406, § 2, effective July 18. 38-5-107. Companies, cities, and towns carrying high voltage - crossings arbitration. (1) Any person, corporation, or city or town seeking to secure a right-of-way for lines of electric light or for the transmission of electric power for any purpose over, under, or across any right-of-way of any other person, corporation, or city or town for such purposes or seeking to erect or construct its lines of wire under or over the lines of wire already constructed by such other person, corporation, or city or town for any such purposes upon, under, along, or across any public highway or upon, under, along, or across any public lands owned or controlled by the state of Colorado before constructing such lines or wires over, under, or across such rights-of-way or wires of other persons, corporations, or cities or towns, where either of said lines or wires carry a current at an electrical pressure of five thousand volts or more, shall agree with such other persons, corporations, or cities or towns as to the conditions under or upon which such overhead or underneath construction or crossing shall be made, looking to the due protection and safeguard of the wires of the person, corporation, or city or town already having a right-of-way for such wires and looking to the safety of life, health, and property. In case of an inability to agree upon the conditions under or upon which such overhead or underneath crossings shall be made, the person, corporation, or city or town owning and operating or controlling the lines of wires already built or constructed and the person, corporation, or city or town seeking to construct new lines or wires or to make said crossings shall each select a person as an arbitrator, which two persons shall determine said conditions under or upon which such overhead or underneath construction or crossing shall be made. In case of a disagreement in regard thereto by the arbitrators, they shall select a third person to act with them, and the decision made by any two of said arbitrators shall be final and binding upon the person, corporation, or city or town so seeking to make or construct the crossings, who shall construct the crossings in a manner determined by such arbitrators. (2) The parties interested, before they make their submission to the arbitrators, shall make and subscribe a written article of agreement in and by which they shall agree to submit the matter as to how said crossings shall be made to the arbitrators named, and will abide by their award. Said award shall be in writing, and a copy thereof delivered to each of the parties interested. Such conditions for protection at said crossings shall be established at the sole expense of the person, corporation, or city or town seeking the right-of-way for such overhead or underneath construction or crossings. Nothing in this article shall affect the right of any person, corporation, or city or town to make such crossings where the lines or wires of neither of the parties concerned carry a current at an electrical pressure of less than five thousand volts. Source: L. 07: p. 387, § 7. R.S. 08: § 2457. C.L. § 6358. CSA: C. 61, § 48. CRS 53: § 50-5-7. L. 63: p. 481, § 6. C.R.S. 1963: § 50-5-7. L. 96: (1) amended, p. 303, § 5, effective April 12. 38-5-108. Consent necessary to use of streets. Nothing in this article shall be construed to authorize any person, partnership, association, corporation, or city or town to erect any poles, construct any electric light power line, or pipeline, or extend any wires or lines along, through, in, upon, under, or over any streets or alleys of any city or incorporated town without first Colorado Revised Statutes 2019 Page 32 of 707 Uncertified Printout obtaining the consent of the municipal authorities having power to give the consent of such city or incorporated town. Source: L. 07: p. 388, § 8. R.S. 08: § 2458. C.L. § 6359. CSA: C. 61, § 49. CRS 53: § 50-5-8. L. 63: p. 482, § 7. C.R.S. 1963: § 50-5-8. L. 96: Entire section amended, p. 303, § 6, effective April 12. ARTICLE 5.5 Rights-of-way: Telecommunications Providers Law reviews: For article, "S.B. 10: Access to Public Rights-of-Way for Telecommunications Providers", see 25 Colo. Law. 89 (Sept. 1996); for article, "Rights-of-Way Regulating Authority After Denver v. Qwest", see 30 Colo. Law. 103 (July 2001). 38-5.5-101. Legislative declaration. (1) The general assembly hereby finds, determines, and declares that: (a) The passage of House Bill 95-1335, enacted at the first regular session of the sixtieth general assembly, established a policy within the state to encourage competition among the various telecommunications providers, to reduce the barriers to entry for those providers, to authorize and encourage competition within the local exchange telecommunications market, and to ensure that all consumers benefit from such competition and expansion. (b) The stated goals of House Bill 95-1335 were that all citizens have access to a wider range of telecommunications services at rates that are reasonably comparable within the state, that basic service be available and affordable to all citizens, and that universal access to advanced telecommunications services would be available to all consumers. Such goals are essential to the economic and social well-being of the citizens of Colorado and can be accomplished only if telecommunications providers are allowed to develop ubiquitous, seamless, statewide telecommunications networks. To require telecommunications companies to seek authority from every political subdivision within the state to conduct business is unreasonable, impractical, and unduly burdensome. In addition, the general assembly further finds and declares that since the public rights-of-way are dedicated to and held on a nonproprietary basis in trust for the use of the public, their use by telecommunications companies is consistent with such policy and appropriate for the public good. (2) The general assembly further finds, determines, and declares that nothing in this article shall be construed to alter or diminish the authority of political subdivisions of the state to lawfully exercise their police powers with respect to activities of telecommunications providers within their boundaries, and, subject to such reservation of authority, that: (a) The construction, maintenance, operation, oversight, and regulation of telecommunications providers and their facilities is a matter of statewide concern and interest; (b) Telecommunications providers operating under the authority of the federal communications commission or the Colorado public utilities commission pursuant to article 15 of title 40, C.R.S., require no additional authorization or franchise by any municipality or other political subdivision of the state to conduct business within a given geographic area and that no such political subdivision has jurisdiction to regulate telecommunications providers based upon Colorado Revised Statutes 2019 Page 33 of 707 Uncertified Printout the content, nature, or type of telecommunications service or signal they provide except to the extent granted by federal or state legislation; (c) Telecommunications providers have a right to occupy and utilize the public rights-ofway for the efficient conduct of their business; (d) Access to rights-of-way and oversight of that access must be competitively neutral, and no telecommunications provider should enjoy any competitive advantage or suffer a competitive disadvantage by virtue of a selective or discriminatory exercise of the police power by a local government. Source: L. 96: Entire article added, p. 298, § 1, effective April 12. 38-5.5-102. Definitions. As used in this article 5.5, unless the context otherwise requires: (1) "Broadband" or "broadband service" has the same meaning as set forth in 7 U.S.C. sec. 950bb (b)(1) as of August 6, 2014, and includes "cable service", as defined in 47 U.S.C. sec. 522 (6) as of August 6, 2014. (2) "Broadband facility" means any infrastructure used to deliver broadband service or for the provision of broadband service. (3) "Broadband provider" means a person that provides broadband service, and includes a "cable operator", as defined in 47 U.S.C. sec. 522 (5) as of August 6, 2014. (4) "Collocation" has the same meaning as set forth in section 29-27-402 (3). (5) "Political subdivision" or "local government entity" means a county; city and county; city; town; service authority; school district; local improvement district; law enforcement authority; water, sanitation, fire protection, metropolitan, irrigation, drainage, or other special district; or any other kind of municipal, quasi-municipal, or public corporation organized pursuant to law. (6) "Public highway" or "highway" for purposes of this article 5.5 includes all roads, streets, and alleys and all other dedicated rights-of-way and utility easements of the state or any of its political subdivisions, whether located within the boundaries of a political subdivision or otherwise. (7) "Small cell facility" has the same meaning as set forth in section 29-27-402 (4). (8) "Small cell network" has the same meaning as set forth in section 29-27-402 (5). (9) "Telecommunications provider" means a person that provides telecommunications service, as defined in section 40-15-102 (29), with the exception of cable services as defined by section 602 (5) of the federal "Cable Communications Policy Act of 1984", 47 U.S.C. sec. 522 (6), pursuant to authority granted by the public utilities commission of this state or by the federal communications commission. "Telecommunications provider" does not mean a person or business using antennas, support towers, equipment, and buildings used to transmit high power over-the-air broadcast of AM and FM radio, VHF and UHF television, and advanced television services, including high definition television. The term "telecommunications provider" is synonymous with "telecommunication provider". Source: L. 96: Entire article added, p. 299, § 1, effective April 12. L. 2014: (1) amended and (1.2), (1.3), and (1.7) added, (HB 14-1327), ch. 149, p. 507, § 3, effective August 6. L. 2017: Entire section amended, (HB 17-1193), ch. 143, p. 476, § 5, effective July 1. Colorado Revised Statutes 2019 Page 34 of 707 Uncertified Printout Editor's note: Section 602(5) of the federal "Cable Communications Policy Act of 1984" referenced in subsection (3) was repealed October 25, 1994. Cross references: For the short title ("Broadband Deployment Act") in HB 14-1327, see section 1 of chapter 149, Session Laws of Colorado 2014. 38-5.5-103. Use of public highways - discrimination prohibited - content regulation prohibited. (1) (a) Any domestic or foreign telecommunications provider or broadband provider authorized to do business under the laws of this state has the right to construct, maintain, and operate conduit, cable, switches, and related appurtenances and facilities, and communications and broadband facilities, including small cell facilities and small cell networks, along, across, upon, above, and under any public highway in this state, subject to this article 5.5 and article 1.5 of title 9. (b) The construction, maintenance, operation, and regulation of the facilities described in subsection (1)(a) of this section, including the right to occupy and utilize the public rights-ofway, by telecommunications providers and broadband providers are matters of statewide concern. The facilities shall be constructed and maintained so as not to obstruct or hinder the usual travel on a highway. (2) A political subdivision shall not discriminate among or grant a preference to competing telecommunications providers or broadband providers in the issuance of permits or the passage of any ordinance for the use of its rights-of-way, nor create or erect any unreasonable requirements for entry to the rights-of-way for the providers. (3) A political subdivision shall not regulate a telecommunications provider or a broadband provider based upon the content or type of signals that are carried or capable of being carried over the provider's facilities; except that nothing in this subsection (3) prevents regulation by a political subdivision when the authority to regulate has been granted to the political subdivision under federal law. Source: L. 96: Entire article added, p. 300, § 1, effective April 12. L. 2014: (1) amended, (HB 14-1327), ch. 149, p. 507, § 4, effective August 6. L. 2017: Entire section amended, (HB 17-1193), ch. 143, p. 477, § 6, effective July 1. Cross references: For the short title ("Broadband Deployment Act") in HB 14-1327, see section 1 of chapter 149, Session Laws of Colorado 2014. 38-5.5-104. Right-of-way across state land. Any domestic or foreign telecommunications provider or broadband provider authorized to do business under the laws of this state has the right to construct, maintain, and operate lines of communication, switches, and related facilities, and communications and broadband facilities, including small cell facilities and small cell networks, and obtain a permanent right-of-way for the facilities over, upon, under, and across all public lands owned by or under the control of the state, upon the payment of just compensation and upon compliance with reasonable conditions as the state board of land commissioners may require. Colorado Revised Statutes 2019 Page 35 of 707 Uncertified Printout Source: L. 96: Entire article added, p. 300, § 1, effective April 12. L. 2017: Entire section amended, (HB 17-1193), ch. 143, p. 478, § 7, effective July 1. 38-5.5-104.5. Use of local government entity structures. (1) Except as provided in subsection (2) of this section and subject to the requirements and limitations of this article 5.5, sections 29-27-403 and 29-27-404, and a local government entity's police powers, a telecommunications provider or a broadband provider has the right to locate or collocate small cell facilities or small cell networks on the light poles, light standards, traffic signals, or utility poles in the rights-of-way owned by the local government entity; except that, a small cell facility or a small cell network shall not be located or mounted on any apparatus, pole, or signal with tolling collection or enforcement equipment attached. (2) If, at any time, the construction, installation, operation, or maintenance of a small cell facility on a local government entity's light pole, light standard, traffic signal, or utility pole fails to comply with applicable law, the local government entity, by providing the telecommunications provider or the broadband provider notice and a reasonable opportunity to cure the noncompliance, may: (a) Cause the attachment on the affected structure to be removed; and (b) Prohibit future, noncompliant use of the light pole, light standard, traffic signal, or utility pole. (3) (a) Except as provided in subsections (3)(b) and (3)(c) of this section, a local government entity shall not impose any fee or require any application or permit for the installation, placement, operation, maintenance, or replacement of micro wireless facilities that are suspended on cable operator-owned cables or lines that are strung between existing utility poles in compliance with national safety codes. (b) A local government entity with a municipal or county code that requires an application or permit for the installation of micro wireless facilities may, but is not required to, continue the application or permit requirement subsequent to July 1, 2017. (c) A local government entity may require a single-use right-of-way permit if the installation, placement, operation, maintenance, or replacement of micro wireless facilities: (I) Involves working within a highway travel lane or requires the closure of a highway travel lane; (II) Disturbs the pavement or a shoulder, roadway, or ditch line; (III) Includes placement on limited access rights-of-way; or (IV) Requires any specific precautions to ensure the safety of the traveling public; the protection of public infrastructure; or the operation of public infrastructure; and such activities either were not authorized in, or will be conducted in a time, place, or manner that is inconsistent with, the approval terms of the existing permit for the facility or structure upon which the micro wireless facility is attached. Source: L. 2017: Entire section added, (HB 17-1193), ch. 143, p. 478, § 8, effective July 1. 38-5.5-105. Power of companies to contract. Any domestic or foreign telecommunications provider or broadband provider has the power to contract with any individual; corporation; or the owner of any lands, franchise, easement, or interest therein over Colorado Revised Statutes 2019 Page 36 of 707 Uncertified Printout or under which the provider's conduits; cable; switches; communications or broadband facilities, including small cell facilities and small cell networks; or related appurtenances and facilities are proposed to be laid or created for the right-of-way for the construction, maintenance, and operation of the facilities or for the erection, maintenance, occupation, and operation of offices at suitable distances for the public accommodation. Source: L. 96: Entire article added, p. 301, § 1, effective April 12. L. 2017: Entire section amended, (HB 17-1193), ch. 143, p. 479, § 9, effective July 1. 38-5.5-106. Consent necessary for use of streets. (1) (a) This article 5.5 does not authorize any telecommunications provider or broadband provider to erect, within a political subdivision, any poles or construct any communications or broadband facilities, including small cell facilities and small cell networks; conduit; cable; switch; or related appurtenances and facilities along, through, in, upon, under, or over any public highway without first obtaining the consent of the authorities having power to give the consent of the political subdivision. (b) A telecommunications provider or broadband provider that, on or before July 1, 2017, either has obtained consent of the political subdivision having power to give consent or is lawfully occupying a public highway in a political subdivision need not apply for additional or continued consent of the political subdivision under this section. (c) Notwithstanding any other provision of law, a political subdivision's consent given to a telecommunications provider or a broadband provider to erect or construct any poles, or to locate or collocate communications and broadband facilities on vertical structures in a right-ofway, does not extend to the location of new facilities or to the erection or construction of new poles in a right-of-way not specifically referenced in the grant of consent. (2) (a) The consent of a political subdivision for the use of a public highway within its jurisdiction shall be based upon a lawful exercise of its police power and shall not be unreasonably withheld. (b) A political subdivision shall not create any preference or disadvantage through the granting or withholding of its consent. A political subdivision's decision that a vertical structure in the right-of-way, including a vertical structure owned by a municipality, lacks space or load capacity for communications or broadband facilities, or that the number of additional vertical structures in the rights-of-way should be reasonably limited, consistent with protection of public health, safety, and welfare, does not create a preference for or disadvantage any telecommunications provider or broadband provider, provided that such decision does not have the effect of prohibiting a provider's ability to provide service within the service area of the proposed facility. Source: L. 96: Entire article added, p. 301, § 1, effective April 12. L. 2017: Entire section amended, (HB 17-1193), ch. 143, p. 480, § 10, effective July 1. 38-5.5-107. Permissible taxes, fees, and charges. (1) (a) No political subdivision shall levy a tax, fee, or charge for any right or privilege of engaging in a business or for use of a public highway other than: (I) A license fee or tax authorized under section 31-15-501 (1)(c), C.R.S., or article XX of the state constitution; and Colorado Revised Statutes 2019 Page 37 of 707 Uncertified Printout (II) A street or public highway construction permit fee, to the extent that such permit fee applies to all persons seeking a construction permit. (b) All fees and charges levied by a political subdivision shall be reasonably related to the costs directly incurred by the political subdivision in providing services relating to the granting or administration of permits. Such fees and charges also shall be reasonably related in time to the occurrence of such costs. In any controversy concerning the appropriateness of a fee or charge, the political subdivision shall have the burden of proving that the fee or charge is reasonably related to the direct costs incurred by the political subdivision. All costs of construction shall be borne by the telecommunications provider or broadband provider. (2) (a) Any tax, fee, or charge imposed by a political subdivision shall be competitively neutral among telecommunications providers and broadband providers. (b) Nothing in this article or in article 32 of title 31, C.R.S., shall invalidate a tax or fee imposed if such tax or fee cannot legally be imposed upon another telecommunications provider, broadband provider, or service because of the requirements of state or federal law or because such other provider is exempt from taxation or lacks a taxable nexus with the political subdivision imposing the tax or fee. (c) If a political subdivision imposes a tax on a telecommunications provider or broadband provider and such tax does not apply to other providers of comparable telecommunications services or broadband services due to the language of the ordinance or resolution that imposes the tax, then the governing body of the political subdivision shall take one of the following two courses of action: (I) If it can do so without violating the election requirements of section 20 of article X of the state constitution, the governing body shall amend the ordinance or resolution that imposes the tax so as to extend the tax to providers of comparable telecommunications services or broadband services; or (II) If an election is required under section 20 of article X of the state constitution, the governing body shall cause an election to be held in accordance with said section 20 to authorize the extension of the tax to providers of comparable telecommunications services or broadband services. If the extension of the tax is not approved by the voters at such election, then the existing tax shall no longer apply to the providers that had been subject to the tax immediately before the election. (3) Taxes, fees, and charges imposed shall not be collected through the provision of inkind services by telecommunications providers or broadband providers, nor shall any political subdivision require the provision of in-kind services as a condition of consent to use a highway. (4) The terms of all agreements between political subdivisions and telecommunications providers or broadband providers regarding use of highways shall be matters of public record and shall be made available upon request pursuant to article 72 of title 24, C.R.S. (5) Nothing in this section affects the manner in which the property tax administrator values a public utility under article 4 of title 39, C.R.S. (6) Nothing in this article affects the ability of a political subdivision to require and grant a cable franchise to a cable operator seeking to provide cable television service within the political subdivision and to obtain any consideration or impose any conditions in a cable franchise, unless otherwise prohibited by federal law. Colorado Revised Statutes 2019 Page 38 of 707 Uncertified Printout (7) As used in this section, "public highway" or "highway" as otherwise defined in section 38-5.5-102 (6) does not include excess and remainder rights-of-way under the department of transportation's jurisdiction. Source: L. 96: Entire article added, p. 301, § 1, effective April 12. L. 2014: (1)(b), (2), (3), and (4) amended and (5), (6), and (7) added, (HB 14-1327), ch. 149, p. 507, § 5, effective August 6. L. 2017: (7) amended, (HB 17-1193), ch. 143, p. 480, § 11, effective July 1. Cross references: For the short title ("Broadband Deployment Act") in HB 14-1327, see section 1 of chapter 149, Session Laws of Colorado 2014. 38-5.5-108. Pole attachment agreements - limitations on required payments. (1) Neither a local government entity nor a municipally owned utility shall request or receive from a telecommunications provider, broadband provider, or cable television provider, as defined in section 602 (5) of the federal "Cable Communications Policy Act of 1984", in exchange for permission to attach small cell facilities, broadband devices, or telecommunications devices to poles or structures in a right-of-way, any payment in excess of the amount that would be authorized if the local government entity or municipally owned utility were regulated pursuant to 47 U.S.C. sec. 224, as amended. (2) A municipality shall not request or receive from a telecommunications provider or a broadband provider, in exchange for or as a condition upon a grant of permission to attach telecommunications or broadband devices to poles, any in-kind payment. Source: L. 96: Entire article added, p. 302, § 1, effective April 12. L. 2017: Entire section amended, (HB 17-1193), ch. 143, p. 481, § 12, effective July 1. Editor's note: Section 602(5) of the federal "Cable Communications Policy Act of 1984" referenced in subsection (1) was repealed October 25, 1994. 38-5.5-109. Notice of trenching - permitted access. (1) (a) The state or a political subdivision shall provide notice on a competitively neutral basis to broadband providers of any utility trenching project that it conducts, but notice is not required for emergency repair projects. The state or political subdivision shall provide the notice a minimum of ten business days prior to the start of the project involving trenching. (b) The department of transportation shall maintain a public list of all broadband providers that would like to receive notice of a utility trenching project and the providers' addresses on the website it maintains. To be eligible to receive notice under paragraph (a) of this subsection (1), a broadband provider must request the department of transportation to be included in the department list. A political subdivision may rely on the department list when making its notifications, and such notifications may be made by electronic mail. (2) (a) For any trenching project conducted by the state or a political subdivision, the state or political subdivision shall allow joint trenching by broadband providers on a nonexclusive and nondiscriminatory basis for the placement of broadband facilities, except as set forth in paragraph (b) of this subsection (2). This subsection (2) does not limit the ability of the Colorado Revised Statutes 2019 Page 39 of 707 Uncertified Printout state, political subdivision, or any private entity to share the costs of construction related to the trenching project with the broadband provider. (b) The state or a political subdivision may deny joint trenching by broadband providers if the joint trenching will hinder or obstruct highway safety or the construction, maintenance, operations, or related regulation of highway facilities or if it is not feasible because it will delay the repair or construction of a political subdivision's water, wastewater, electricity, or gas line or because collocation with a political subdivision's water, wastewater, electricity, or gas line will hinder or obstruct the maintenance or operations of a political subdivision's water, wastewater, electricity, or gas facilities. (3) (a) Nothing in this section is intended to preempt or otherwise replace requirements for joint trenching that may be imposed by a political subdivision. (b) Nothing in this section requires a private entity undertaking a trenching project to allow a broadband provider to participate in the trenching project. (c) Any provision in this section that conflicts with federal law is unenforceable. (d) Nothing in this section shall be construed to prevent or delay commencement or progress of a construction, maintenance, or trenching project. (4) As used in this section, "trenching" means a construction project in which a highway right-of-way surface is opened or removed for the purpose of laying or installing conduit, fiber, or similar infrastructure in excess of one mile in length. "Trenching" does not mean any other activity or project for the construction or maintenance, including drainage or culvert work, of a highway facility. Source: L. 2014: Entire section added, (HB 14-1327), ch. 149, p. 509, § 6, effective August 6. Cross references: For the short title ("Broadband Deployment Act") in HB 14-1327, see section 1 of chapter 149, Session Laws of Colorado 2014. ARTICLE 6 Proceedings by Cities and Towns PART 1 CONDEMNATION OF PROPERTY 38-6-101. Power of towns and cities. Whenever, in a town, city, or city and county, the council thereof or other municipal board having authority by charter or statute passes a resolution or ordinance to establish, construct, extend, open, widen, or alter any street, lane, avenue, boulevard, park, playground, parkway, pleasure way, public square, market, viaduct, bridge, sewer, tunnel, or subway or to build, acquire, construct, or establish any public building or any other public work or public improvement, said town, city, or city and county shall have the right to take, damage, condemn, or appropriate by right of eminent domain such private property as may be required in the manner provided for in this part 1; but, except as specifically authorized by law, no incorporated town shall exercise the power of eminent domain over Colorado Revised Statutes 2019 Page 40 of 707 Uncertified Printout property outside the town boundaries. In any case where such special benefits are not to be assessed by commissioners as provided in section 38-6-107 against the real estate specially benefited, the said town, city, or city and county may follow the procedure set forth in this part 1 or the procedure set forth in article 1 of this title. Source: L. 11: p. 373, § 1. C.L. § 9076. CSA: C. 163, § 119. CRS 53: § 50-6-1. L. 57: p. 365, § 1. L. 59: p. 423, § 1. C.R.S. 1963: § 50-6-1. L. 69: p. 356, § 1. L. 76: Entire section amended, p. 312, § 60, effective May 20. Cross references: For the proceedings and procedure for taking private property for public use, see part 1 of article 1 of this title. 38-6-102. Petition. The attorney for said city or city and county, in the name of such city or city and county, shall apply to the district court of the district in which said city or city and county is situated, by petition, which petition shall state the general nature of the improvement proposed to be established or made, a correct description of the property required, and the name of the owner of said property as shown on the records of the county clerk and recorder of the county or city and county in which said property is situated. Said petition shall pray for the appointment of three disinterested commissioners, freeholders of real estate in and residents of said city or city and county, to appraise and award the damages which said owner may sustain by reason of the appropriation and condemnation of such property by the city or city and county and to perform such other duties as are in this part 1 enumerated. Source: L. 11: p. 374, § 2. C.L. § 9077. CSA: C. 163, § 120. CRS 53: § 50-6-2. C.R.S. 1963: § 50-6-2. L. 76: Entire section amended, p. 312, § 61, effective May 20. 38-6-103. Defendants - guardian ad litem. The owners of all property sought to be condemned for the proposed improvement shall be made parties defendant. It shall not be necessary to make any person a defendant unless such person has some title thereto of record in the office of the county clerk and recorder of the county or city and county in which said property is situated. If the proceeding seeks to affect land owned by an infant or a mentally incompetent person, the legal guardian or conservator of such person shall be made a party defendant. If such person has no legal guardian, the district court shall have the power to appoint a guardian ad litem to represent such person. Source: L. 11: p. 374, § 3. C.L. § 9078. CSA: C. 163, § 121. CRS 53: § 50-6-3. C.R.S. 1963: § 50-6-3. L. 75: Entire section amended, p. 932, § 53, effective July 1. 38-6-104. Judge to set hearing - summons - service - publication. Upon the filing of the petition, said court shall fix a date for hearing said petition, and the attorney for the petitioner shall prepare and issue a summons, directed to the defendants, notifying them of the date fixed by the court for the hearing. Jurisdiction of said defendants shall be obtained by causing the summons to be served on the defendants in like manner as is provided by the laws of this state for the service of summons in civil actions, except as otherwise provided in this section. The date for the hearing of the petition shall not be less than ten days after the date of the service of Colorado Revised Statutes 2019 Page 41 of 707 Uncertified Printout the summons. In case any defendant does not reside in said city or city and county or is a foreign corporation or in case the attorney for the petitioner files an affidavit that he has endeavored to find such person in such city or city and county, for the purpose of causing the person to be served, and that after reasonable effort he has been unable to find said person in said city or city and county, the petitioner may cause the summons to be published for three consecutive times in any daily or weekly newspaper published in said city or city and county. The date for the hearing of said petition shall not be less than ten days after the date of the last publication of said summons. Source: L. 11: p. 374, § 4. C.L. § 9079. CSA: C. 163, § 122. CRS 53: § 50-6-4. C.R.S. 1963: § 50-6-4. 38-6-105. Answer - hearing - commissioners. Any defendant has the right to appear in the proceeding and file an answer, in writing, with the clerk of the court, at any time prior to the date fixed for the hearing of the petition but not thereafter, in which answer said defendant shall set forth such legal objections as he may have to the condemnation or appropriation of any property owned by him or to the prosecution of said proceeding. At the time set for the hearing of said petition or such time to which the hearing may have been continued by the court, the court shall proceed to hear any objections raised by the answer, if any there be. The court has no power to inquire into the necessity of exercising the power of eminent domain for the purpose proposed, nor into the necessity of making the proposed improvement, nor into the necessity of taking the particular property described in the petition. If the court finds that the petitioner has the right to prosecute said proceeding and such objections as may have been filed are overruled, the court shall appoint three disinterested commissioners in condemnation, freeholders of real estate in said city or city and county and residents thereof, who shall have the powers and duties provided in this part 1. No person shall be disqualified to act as a commissioner by reason of the fact that he may own either the fee or other interest in or to property that might be assessed a special benefit on account of the proposed improvement. Source: L. 11: p. 375, § 5. C.L. § 9080. CSA: C. 163, § 123. CRS 53: § 50-6-5. C.R.S. 1963: § 50-6-5. L. 76: Entire section amended, p. 312, § 62, effective May 20. 38-6-106. Commissioners - oaths - hearing. The commissioners, before entering upon the duties of their office, shall take an oath to faithfully, promptly, and impartially discharge their duties as such commissioners. Any commissioner may administer oaths to witnesses produced before him. The commissioners may issue subpoenas and compel witnesses to attend and testify, may adjourn and hold meetings, and shall hear such proofs as may be presented to them. Source: L. 11: p. 375, § 6. C.L. § 9081. CSA: C. 163, § 124. CRS 53: § 50-6-6. C.R.S. 1963: § 50-6-6. 38-6-107. Assessment of damages - lien - fund. It is the duty of the commissioners to estimate, fix, and determine the fair and actual cash market value of all property proposed to be taken for the improvement, without reference to the projected improvement, and the fair, direct, Colorado Revised Statutes 2019 Page 42 of 707 Uncertified Printout and actual damage caused on account of said improvement to other property not taken for the improvement. The commissioners shall provide for the payment of the total amount of their awards for land taken and damaged, in all cases where the resolution or ordinance authorizing the improvement so provides, by assessing against the owners of all real estate which, in their opinion, will be specially benefited by the proposed improvement the amounts of said benefit as special assessments, and such commissioners shall assess the balance required to make said total amount as a general assessment against the petitioning city or city and county. Such special benefits shall be assessed against the owners of each lot or parcel of property that is, in the opinion of said commissioners, specially benefited by said improvement, which said special benefits shall be a lien on the property so charged, and shall be collected as provided by the charter or ordinance of said city or city and county, and when so collected shall be paid into the treasury of said city or city and county as a separate fund, to be used for the payment of the awards and damages. Source: L. 11: p. 376, § 7. C.L. § 9082. CSA: C. 163, § 125. CRS 53: § 50-6-7. C.R.S. 1963: § 50-6-7. 38-6-108. Commissioners' report. The commissioners shall make, subscribe, and file with the clerk of the court in which such proceedings are had a report of their awards and assessments, in which all property assessed shall be described with convenient certainty and accuracy. In said report, the awards and damages allowed to each owner and the benefits assessed against each parcel of land shall be separately stated. Source: L. 11: p. 376, § 8. C.L. § 9083. CSA: C. 163, § 126. CRS 53: § 50-6-8. C.R.S. 1963: § 50-6-8. 38-6-109. Cost assessed against block. In all cases where the proposed improvement is the opening, widening, establishing, or extension of a public alley, the cost thereof shall be assessed against the property in the particular block in which said alley is situated, according to the benefits to be received therefrom, and against none other. Source: L. 11: p. 376, § 9. C.L. § 9084. CSA: C. 163, § 127. CRS 53: § 50-6-9. C.R.S. 1963: § 50-6-9. 38-6-110. Property need not be in city limits. In all proceedings under this part 1, the petitioner has the right to take or condemn separate parcels of land. Such parcels of land need not be adjoining or contiguous to each other. In all cases where a proceeding is brought to condemn, appropriate, or acquire land for boulevard, parkway, or park purposes, such land or any part thereof may be situated beyond or without the corporate limits of said city or city and county, subject to the limitation imposed by section 31-25-201 (1), C.R.S. Source: L. 11: p. 377, § 10. C.L. § 9085. CSA: C. 163, § 128. CRS 53: § 50-6-10. C.R.S. 1963: § 50-6-10. L. 76: Entire section amended, p. 313, § 63, effective May 20. L. 83: Entire section amended, p. 1266, § 4, effective July 1. Colorado Revised Statutes 2019 Page 43 of 707 Uncertified Printout Cross references: For the legislative declaration in the 1983 act amending this section, see section 1 of chapter 367, Session Laws of Colorado 1983. 38-6-111. Hearing - notice - publication. After the report of said commissioners is filed with the clerk of the court, the court shall fix a time for the consideration of said report, and the petitioner shall give written notice to the defendants and all other persons who are the owners of record of property mentioned in said report, whether damaged, appropriated, condemned, or assessed special benefits, of the matters contained in said report and of the time so fixed by the court for the consideration thereof. The notice shall be served in like manner as is provided by the laws of this state for the service of summons in civil actions, except as otherwise provided in this section. Said persons shall be served at least ten days before the time fixed for the consideration of the report by the court. In case any defendant or owner of record of any property damaged, appropriated, condemned, or assessed special benefits does not reside in said city or city and county or is a foreign corporation or in case the attorney for said petitioner files an affidavit that he has endeavored to find such person in said city or city and county, for the purpose of causing said person to be notified, and that after reasonable effort he has been unable to find said person in said city or city and county, the petitioner may cause to be published a notice, of the matters affecting such person contained in said report and of the time fixed for the consideration thereof, for three successive times in some daily or weekly newspaper published in said city or city and county. Said publication shall be in lieu of personal service of said notice on all such persons. Source: L. 11: p. 377, § 11. C.L. § 9086. CSA: C. 163, § 129. CRS 53: § 50-6-11. C.R.S. 1963: § 50-6-11. Cross references: For publication of legal notices, see part 1 of article 70 of title 24. 38-6-112. Objections - default - burden of proof - findings - reappraisement. Any person who is the owner of, or who has any interest in, any of the property mentioned in said report, whether appropriated or damaged or against which special benefits have been assessed, may appear, at or before the time fixed by the court for the consideration of said report but not after said time, and file his written objection to said report. Default shall be entered against the owners of all property mentioned in said report who have not filed objections thereto within said time, and the report shall be confirmed by the court as to such persons. At the time fixed by the court for the consideration of said report, the court shall proceed to hear any objections that have been filed, except where a jury trial has been demanded, as provided for in section 38-6-113. Any party interested in said proceeding may introduce such evidence as may tend to establish the right of the matter. The burden of proof to change any finding, award, or assessment of said commissioners shall be upon the person objecting thereto. If it appears to the court that the property of the objector has been appraised by the commissioners at more or less than the fair, actual cash market value thereof, or that the fair, direct, and actual damage to property not taken is greater or less than the amount awarded by the commissioners, or that the property of the objector is assessed a special benefit in an amount greater than it will be actually benefited by the proposed improvement, the court shall so find and shall also find what the proper award or assessment shall be, and judgment shall be rendered accordingly. The court, for good cause Colorado Revised Statutes 2019 Page 44 of 707 Uncertified Printout shown, may modify, alter, change, annul, or confirm the report of the commissioners, or any part thereof, or may order a new appraisement and assessment as to any of the property affected in the proceeding by the same commissioners or by other commissioners appointed by the court. Source: L. 11: p. 378, § 12. C.L. § 9087. CSA: C. 163, § 130. CRS 53: § 50-6-12. C.R.S. 1963: § 50-6-12. 38-6-113. Jury trial - motion for new trial - appellate proceedings. (1) At the time fixed for the hearing of the commissioners' report or at any time prior thereto but not after said time, any defendant who owns or is interested in any property actually taken, appropriated, or damaged on account of the proposed improvement and who is dissatisfied with the amount awarded to him by said commissioners may file his demand, in writing, for a trial by a jury of either six or twelve freeholders to appraise and assess the damages which said defendant or person may sustain by reason of the appropriation and condemnation of, or damage to, his property. Any person so demanding a jury, at the time of said demand, shall deposit with the clerk the jury fees for one day's services according to the rate allowed jurors in the district court. The court shall fix an early date for said trial, and on such date the defendants who have made written demands for jury trial within the time provided shall proceed to submit their claims to the jury. Such jury shall be drawn as in civil actions; except that the jurors shall have the qualifications provided in this section. (2) The court shall proceed in the same manner and with like powers as in other cases, except as otherwise provided in this part 1. At the request of any party to the proceedings, the court shall order that the jury go upon the premises sought to be taken or damaged, in charge of a sworn bailiff and in the company of any other person that the court may order, and examine the premises in person. At the conclusion of the evidence, the matters in controversy may be argued by counsel to the jury, and at the conclusion of the arguments the court shall instruct the jury in writing. The jury shall return a special verdict fixing and determining the damages or compensation to be allowed to each defendant, severally, who has demanded a jury trial, which verdict shall include both the fair, actual cash market value of the land actually taken for the improvement and the direct, fair, and actual damage, if any, caused on account of said improvement to property not taken for the improvement. Any party to the proceeding may move for a new trial in the same manner as in actions at law. The refusal of said court to grant the same may be excepted to and assigned for appeal, but no appeal shall be permitted to stay the improvement sought by the proceeding. Source: L. 11: p. 378, § 13. C.L. § 9088. CSA: C. 163, § 131. CRS 53: § 50-6-13. C.R.S. 1963: § 50-6-13. L. 76: (2) amended, p. 313, § 64, effective May 20. 38-6-114. Costs - compensation. The cost of the proceedings shall be paid by the city or city and county. The commissioners shall be allowed a reasonable compensation for their services and expenses, the amount of which shall be fixed by the court. Source: L. 11: p. 379, § 14. C.L. § 9089. CSA: C. 163, § 132. CRS 53: § 50-6-14. C.R.S. 1963: § 50-6-14. Colorado Revised Statutes 2019 Page 45 of 707 Uncertified Printout 38-6-115. Amendments - new parties - notice. Amendment to the petition or to any paper or record in the proceedings shall be permitted by the court whenever necessary to a fair hearing and final determination of the questions involved. Should it become necessary at any stage of the proceedings to bring in a new party, the court has the power to make such rule or order in relation thereto as may be deemed reasonable and proper. The court also has the power to make all necessary rules and orders for notice to persons of the pendency of the proceedings. Source: L. 11: p. 380, § 15. C.L. § 9090. CSA: C. 163, § 133. CRS 53: § 50-6-15. C.R.S. 1963: § 50-6-15. 38-6-116. Decree - copy to city clerk - payments - collection of assessments. After the trial hearings and determination of all objections to said report, the court shall make its judgment and decree, granting the petitioner such title to the property condemned as may be petitioned for and the right to enter upon the same, upon payment of the compensation ascertained. The decree shall describe each parcel of property so condemned and state the owner thereof and shall describe the property against which special assessments have been made and the amounts thereof. When said judgment and decree have been made by the court, the clerk of said court shall make a certified copy thereof and after thirty days deliver the same to the clerk of the city or city and county. Unless other provision is made in the charter of said city or city and county for the payment of said awards, the council, within ninety days after the date of said decree, shall make, by ordinance, the necessary appropriation for the payment of the compensation for the property condemned. The proper officers of said city or city and county shall thereupon issue the warrants of said city or city and county to the respective parties entitled thereto. The council, by ordinance, shall also provide for the collection of such special assessments as have been confirmed by the final decree of the court. Source: L. 11: p. 380, § 16. C.L. § 9091. CSA: C. 163, § 134. CRS 53: § 50-6-16. C.R.S. 1963: § 50-6-16. 38-6-117. City may dismiss proceedings. The attorney for the city or city and county commencing the proceedings has the right to withdraw said proceedings or to dismiss the same as to one or more of said defendants or as to one or more parcels of land, without prejudice, at any stage of the proceedings, and the petitioner shall pay the costs thereof. Source: L. 11: p. 380, § 17. C.L. § 9092. CSA: C. 163, § 135. CRS 53: § 50-6-17. C.R.S. 1963: § 50-6-17. 38-6-118. Ownership in controversy - award. If the ownership of any property condemned or damaged is in controversy, the amount awarded in payment of said property or the damage thereto shall be paid into the registry of said court for the use of the successful claimants of said property as their respective interests appear to the court. All disputes as to ownership of property taken or damaged shall be tried to the court. Source: L. 11: p. 381, § 18. C.L. § 9093. CSA: C. 163, § 136. CRS 53: § 50-6-18. C.R.S. 1963: § 50-6-18. Colorado Revised Statutes 2019 Page 46 of 707 Uncertified Printout 38-6-119. Possession - award paid. As soon as the amounts awarded for property taken or in payment of damages have been tendered to the parties entitled thereto, respectively, or deposited in the registry of said court for the use of the respective persons entitled to said amounts, the city or city and county may have possession of said premises and may proceed with the proposed improvement. When any controversy concerning ownership has been determined, the clerk of said court shall pay the amounts awarded to said parties. Source: L. 11: p. 381, § 19. C.L. § 9094. CSA: C. 163, § 137. CRS 53: § 50-6-19. C.R.S. 1963: § 50-6-19. 38-6-120. Review - deposit - possession. Upon the final determination of any proceeding under this part 1, appeal shall lie in every case to bring into review the proceedings therein. If the owner of any property taken or affected appeals, the petitioner may pay into the registry of said court the amount of compensation awarded therefor, for the use of said owner, and shall thereupon be entitled to take possession of and use the property taken or affected the same as if no appeal had been taken. The money so deposited shall remain on deposit until the appeal has been heard and determined. If any owner elects to receive such amount before the determination of such appeal, said appeal shall thereupon be dismissed so far as such owner is concerned. Source: L. 11: p. 381, § 20. C.L. § 9095. CSA: C. 163, § 138. CRS 53: § 50-6-20. C.R.S. 1963: § 50-6-20. L. 76: Entire section amended, p. 313, § 65, effective May 20. 38-6-121. Lis pendens. In any proceeding brought under this part 1, the petitioner, at the time of filing the petition or at any time thereafter during the pendency of such proceeding, may file with the county clerk and recorder of the county in which the property sought to be condemned is situated a notice of the pendency of the proceeding, containing a general description of the property affected. The filing of such notice shall be constructive notice of the proceeding to any purchaser or encumbrancer of said property. The petitioner shall take all property condemned under this part 1 free of all conveyances, taxes, or assessments that have attached thereto subsequent to the filing of the lis pendens. Source: L. 11: p. 382, § 21. C.L. § 9096. CSA: C. 163, § 139. CRS 53: § 50-6-21. C.R.S. 1963: § 50-6-21. L. 76: Entire section amended, p. 314, § 66, effective May 20. 38-6-122. Eminent domain beyond city limits. Cities and towns are granted the power of eminent domain both within and beyond their corporate limits, for the purpose of constructing or installing storm or sanitary sewers, septic tanks, disposal works, or electric lines, regulator stations, substations, and related facilities, such power to be exercised in the manner prescribed by law. Nothing in this section shall authorize the pollution or contamination of any public river, stream, or water. Source: L. 21: p. 773, § 1. C.L. § 9097. CSA: C. 163, § 140. CRS 53: § 50-6-22. L. 63: p. 482, § 8. C.R.S. 1963: § 50-6-22. Colorado Revised Statutes 2019 Page 47 of 707 Uncertified Printout PART 2 CONDEMNATION OF WATER RIGHTS 38-6-201. Condemnation of water rights by municipalities. This part 2 shall apply to any water right which is to be condemned by a town, city, city and county, or municipal corporation having the powers of condemnation, referred to in this part 2 as a "municipality". Source: L. 75: Entire part added, p. 1408, § 1, effective July 1. 38-6-202. Petition. (1) The attorney for any municipality, in the name of said municipality, shall apply to the district court of the district in which the municipality is situated, by petition, which petition shall set forth the general nature of the improvement proposed to be established or made, a correct description of the water right required, the name of the owner of the water right, and those persons who may be damaged by the acquisition of the water right. Said petition shall pray for the appointment of three disinterested commissioners appointed by the court of jurisdiction, freeholders of real estate in Colorado, one to be a resident from the area affected by the proposed action, one to be a resident of the municipality bringing the action, and one to be a party who has no interest in the controversy, to determine the issue of the necessity of exercising eminent domain as proposed in the petition and, if the condemnation is to be allowed, to appraise and award the damages that each person damaged may sustain by reason of the appropriation and condemnation of the water right by the municipality and to perform such other duties as are in this part 2 enumerated. (2) No municipality shall be allowed to condemn water rights, as provided in section 386-207, for any anticipated or future needs in excess of fifteen years, nor shall any municipality be allowed to condemn water rights that are appropriated to a prior public use. Source: L. 75: Entire part added, p. 1408, § 1, effective July 1. 38-6-203. Condemnation - municipal - water supplies - standards and procedures for evaluations. (1) Prior to any hearing for condemnation of water supplies and structures under this part 2, the municipality shall: (a) Prepare or update a community growth development plan reflecting present population and resources uses and capabilities and projected population growth and resources requirements, the latter to include all resources requirements to provide for phased development of municipal services and facilities; (b) Prepare a detailed statement describing: (I) The water rights to be acquired under condemnation and their present uses; (II) The effects upon the county and suitable area within the river drainage basin or basins from the change or conversion of acquired irrigation and other water supplies to domestic uses, to include economic and environmental effects; (III) The unavoidable adverse and irreversible effects from such taking of properties and rights; and (IV) Alternative sources of water supply that may be acquired by appropriation, purchase, lease, conservation, or condemnation and relative acquisitions costs. Colorado Revised Statutes 2019 Page 48 of 707 Uncertified Printout (2) The information contained in the growth development plan and statement of effects from the condemnation shall be prepared in sufficient detail to provide a meaningful basis for assessment of the aspects of the condemnation to the public if the condemnation is approved. These statements shall be presented to the commissioners appointed by the court and the defendants and shall be made available to interested parties. Source: L. 75: Entire part added, p. 1409, § 1, effective July 1. 38-6-204. Defendants - guardian ad litem. The owners of all property sought to be condemned for the proposed improvement or who would be damaged by said improvement shall be made parties defendant. If the proceeding seeks to affect land owned by a minor or mental incompetent under legal disabilities, the legal guardian or conservator of such person shall be made party defendant. If such person has no legal guardian, the district court shall have the power to appoint a guardian ad litem to represent such person. Source: L. 75: Entire part added, p. 1409, § 1, effective July 1. 38-6-205. Judge to set hearing - summons - service - publication. Upon the filing of the petition, said court shall fix a date for hearing said petition, and the attorney for the petitioner shall prepare and issue a summons, directed to the defendants, notifying them of the date fixed by the court for the hearing. Jurisdiction of said defendants shall be obtained by causing the summons to be served on the defendants in like manner as is provided by the laws of this state for the service of summons in civil actions, except as otherwise provided in this section. The date for the hearing of the petition shall not be less than ten days after the date of the service of the summons. In case any defendant does not reside in the state or is a foreign corporation or in case the attorney for the petitioner files an affidavit that he has endeavored to find such person for the purpose of causing the person to be served and that after reasonable effort he has been unable to find said person, the petitioner may cause the summons to be published for three consecutive times in any daily or weekly newspaper published in the judicial district. The date for the hearing of said petition shall not be less than ten days after the date of the last publication of said summons. Source: L. 75: Entire part added, p. 1409, § 1, effective July 1. 38-6-206. Answer - hearing - jury. (1) Any defendant has the right to appear in the proceeding and file an answer, in writing, with the clerk of the court, at any time prior to the date fixed for the hearing of the petition but not thereafter, in which answer said defendant shall set forth such objections as he may have to the condemnation or appropriation of any water right owned by him or to the prosecution of said proceeding. (2) Any defendant may file a demand for a jury trial as provided for in section 38-6-211 (1), prior to the date fixed for the hearing of the petition. (3) At the time set for the hearing of said petition or at the time to which the hearing may have been continued by the court, the court shall proceed to hear any objections raised by the answer provided for in subsection (1) of this section. The court shall also appoint three commissioners to carry out the provisions of this part 2. Colorado Revised Statutes 2019 Page 49 of 707 Uncertified Printout Source: L. 75: Entire part added, p. 1410, § 1, effective July 1. 38-6-207. Duty of commissioners, determination of necessity. (1) In any case initiated for the acquisition of water rights pursuant to this part 2, it is the duty of the commissioners to: (a) Examine and assess the growth development plan and statement provided by the municipality, from the proposed condemnation, required in section 38-6-203, and obtain necessary information pursuant to powers granted in section 38-6-208, and make a determination as to the necessity of exercising the power of eminent domain for the proposed purposes; (b) Provide one of the following recommendations to the court, based upon their findings: (I) There exists no need and necessity for condemnation as proposed. (II) There exists a need and necessity for condemnation as proposed. (III) There exists a need and necessity for condemnation, but it is premature. (2) In making a recommendation, as provided in subsection (1)(b)(II) of this section, the commissioners may recommend an alternate source of water supply. (3) The commissioners shall hear the proofs and allegations of the parties and, after viewing the premises, certify the proper compensation to be made to said owner or parties interested for the water or other property to be taken or affected, as well as all damages accruing to the owner or parties interested in consequences of the condemnation of the same. (4) If the commissioners find there exists no need and necessity for the condemnation proposed, they shall make no finding as to the value of the condemned property. Source: L. 75: Entire part added, p. 1410, § 1, effective July 1. 38-6-208. Commissioners - oaths - hearing. The commissioners, before entering upon the duties of their office, shall take an oath to faithfully, promptly, and impartially discharge their duties as such commissioners. Any commissioner may administer oaths to witnesses produced before him. The commissioners may issue subpoenas and compel witnesses to attend and testify, may adjourn and hold meetings, and shall hear such proofs as may be presented to them. Source: L. 75: Entire part added, p. 1411, § 1, effective July 1. 38-6-209. Hearing - notice - publication. After the report of the commissioners is filed with the clerk of the court, the court shall fix a time for the consideration of said report, and the petitioner shall give written notice to the defendants and all other persons who are the owners of property mentioned in said report, whether damaged, appropriated, condemned, or assessed special benefits, of the matters contained in said report and of the time so fixed by the court for the consideration thereof. The notice shall be served in like manner as is provided by the laws of this state for the service of summons in civil actions, except as otherwise provided in this section. Said persons shall be served at least ten days before the time fixed for the consideration of the report by the court. In case any defendant or owner of any property damaged, appropriated, condemned, or assessed special benefits does not reside in the state or is a foreign corporation or in case the attorney for said petitioner files an affidavit that he has endeavored to Colorado Revised Statutes 2019 Page 50 of 707 Uncertified Printout find such person for the purpose of causing said person to be notified and that after reasonable effort he has been unable to find said person in the state, the petitioner may cause to be published a notice, of the matters affecting such person contained in said report and of the time fixed for the consideration thereof, for three successive times in some daily or weekly newspaper published in said judicial district. Said publication shall be in lieu of personal service of said notice on all such persons. Source: L. 75: Entire part added, p. 1411, § 1, effective July 1. 38-6-210. Objections - default - burden of proof - findings - reappraisement. Any person who is the owner of, or who has any interest in, any of the property mentioned in said report, whether appropriated or damaged or against which special benefits have been assessed, may appear, at or before the time fixed by the court for the consideration of said report, but not after said time, and file his written objection to said report. Default shall be entered against the owners of all property mentioned in said report who have not filed objections thereto within said time, and the report shall be confirmed by the court as to such persons. At the time fixed by the court for the consideration of said report, the court shall proceed to hear any objections that have been filed, except where a jury trial has been demanded, as provided for in section 38-6-211. Any party interested in said proceeding may introduce such evidence as may tend to establish the right of the matter. The burden of proof to change any finding, award, or assessment of said commissioners shall be upon the person objecting thereto. If it appears to the court that the property of the objector has been appraised by the commissioners at more or less than the fair, actual cash market value thereof, or that the fair, direct, and actual damage to property not taken is greater or less than the amount awarded by the commissioners, or that the property of the objector is assessed a special benefit in an amount greater than it will be actually benefited by the proposed improvement, the court shall so find and shall also find what the proper award or assessment shall be, and judgment shall be rendered accordingly. The court, for good cause shown, may modify, alter, change, annul, or confirm the report of the commissioners, or any part thereof, or may order a new appraisement and assessment as to any of the property affected in the proceeding by the same commissioners or by other commissioners appointed by the court. Source: L. 75: Entire part added, p. 1411, § 1, effective July 1. 38-6-211. Jury trial - motion for new trial - appellate proceedings. (1) At any time prior to the date fixed for the hearing of the petition provided for in section 38-6-205, any defendant who owns or is interested in any property to be taken, appropriated, or damaged on account of the proposed improvement may file his demand, in writing, for a trial by a jury of either six or twelve freeholders to appraise and assess the damages which said defendant or person may sustain by reason of the appropriation and condemnation of, or damage to, his property. Any person so demanding a jury, at the time of said demand, shall deposit with the clerk the jury fees for one day's services according to the rate allowed jurors in the district court. The court shall fix an early date for said trial, and on such date the defendants who have made written demands for jury trial within the time provided shall proceed to submit their claims to the jury. Such jury shall be drawn as in civil actions; except that the jurors shall have the qualifications provided in this section. Colorado Revised Statutes 2019 Page 51 of 707 Uncertified Printout (2) The court shall proceed in the same manner and with like powers as in other cases, except as otherwise provided in this part 2. At the request of any party to the proceedings, the court shall order that the jury go upon the premises sought to be taken or damaged, in charge of a sworn bailiff and in the company of any other person that the court may order, and examine the premises in person. At the conclusion of the evidence, the matters in controversy may be argued by counsel to the jury, and at the conclusion of the arguments the court shall instruct the jury in writing. The jury shall return a special verdict fixing and determining the damages or compensation to be allowed to each defendant, severally, who has demanded a jury trial, which verdict shall include the fair, actual cash market value of the land actually taken for the improvement. Any party to the proceeding may move for a new trial in the same manner as in actions at law. The refusal of said court to grant the same may be excepted to and assigned for appeal, but no appeal shall be permitted to stay the improvement sought by the proceeding. Source: L. 75: Entire part added, p. 1412, § 1, effective July 1. 38-6-212. Costs - compensation. The cost of the proceedings shall be paid by the municipality. The commissioners shall be allowed a reasonable compensation for their services and expenses, the amount of which shall be fixed by the court. The court may also order that the municipality pay reasonable attorney fees. Source: L. 75: Entire part added, p. 1412, § 1, effective July 1. 38-6-213. Amendments - new parties - notice. Amendment to the petition or to any paper or record in the proceedings shall be permitted by the court whenever necessary to a fair hearing and final determination of the questions involved. Should it become necessary at any stage of the proceedings to bring in a new party, the court has the power to make such rule or order in relation thereto as may be deemed reasonable and proper. The court also has the power to make all necessary rules and orders for notice to persons of the pendency of the proceedings. Source: L. 75: Entire part added, p. 1412, § 1, effective July 1. 38-6-214. Decree - copy to municipality - payments - collection of assessments. After the trial hearings and determination of all objections to said report, the court shall make its judgment and decree. The decree shall describe the property so condemned and state the owner thereof and shall describe the property against which special assessments have been made and the amounts thereof. When said judgment and decree have been made by the court, the clerk of said court shall make a certified copy thereof and after thirty days deliver the same to the municipality. Unless other provision is made in the charter of the municipality for the payment of said awards, the legislative body, within ninety days after the date of said decree, shall make the necessary appropriation for the payment of the compensation for the property condemned. The proper officers of the municipality shall compensate the respective parties entitled thereto. The municipality shall also provide for the collection of such special assessments as have been confirmed by the final decree of the court. Source: L. 75: Entire part added, p. 1413, § 1, effective July 1. Colorado Revised Statutes 2019 Page 52 of 707 Uncertified Printout 38-6-215. Municipality may dismiss proceedings. The attorney for the municipality commencing the proceedings has the right to withdraw said proceedings or to dismiss the same as to one or more of said defendants or as to one or more parcels of property, without prejudice, at any stage of the proceedings, and the petitioner shall pay the costs thereof. Source: L. 75: Entire part added, p. 1413, § 1, effective July 1. 38-6-216. Ownership in controversy - award. If the ownership of any property condemned or damaged is in controversy, the amount awarded in payment of said property or the damage thereto shall be paid into the registry of said court for the use of the successful claimants of said property as their respective interests appear to the court. All disputes as to ownership of property taken or damaged shall be tried to the court. Source: L. 75: Entire part added, p. 1413, § 1, effective July 1. ARTICLE 7 Eminent Domain by Urban Renewal Authorities - Vesting 38-7-101. Motion for vesting - contents. (1) In any proceeding initiated by an urban renewal authority, as defined in section 31-25-103, C.R.S., under the provisions of article 1 of this title, the petitioner or any respondent, at any time after the petition has been filed and before judgment is entered in the proceeding, may file a written verified motion requesting that, immediately or at some specified later date, the petitioner be vested with fee simple title, or some lesser estate, interest, or easement, as may be required, to the real property, or a specified portion thereof, which is the subject of the proceeding, and be authorized to take possession of and use such property. Any motion filed by any respondent shall affect, and be limited in application to, the property in which the said respondent has an interest. All the owners of property must join in any motion filed by any respondent under this section, unless one or more of the owners of record cannot by due diligence be found, in which instance this fact shall be stated in the motion. (2) The motion described in subsection (1) of this section, referred to in this article as the "motion for vesting", shall set forth: (a) An accurate description of the property to which the motion relates and the estate or interest sought to be acquired or divested; but, in any motion for vesting filed by any respondent, the interest sought to be divested shall be the interest described in the petition in eminent domain; and (b) The names of the owners of record of the property described in the motion for vesting; and (c) The date upon which it is requested that the estate or interest sought to be acquired or divested shall vest in the petitioner and the date upon which it is requested that the petitioner shall be entitled to possession and use of the subject property. Source: L. 69: p. 357, § 1. C.R.S. 1963: § 50-7-1. Colorado Revised Statutes 2019 Page 53 of 707 Uncertified Printout Cross references: For the definition of an urban renewal authority, see § 31-25-103 (8.5); for proceedings and procedure for taking private property, see part 1 of article 1 of this title. 38-7-102. Motion for vesting - procedure with respect thereto. (1) The court shall set a date, not less than twenty-one days after the filing of such motion, for the hearing thereon, and the court shall require at least fourteen days' notice to be given to each party to the proceeding whose interests would be affected by the taking requested. The averments in the motion and the necessity for the vesting of title, or some lesser estate, prior to the final determination of just compensation are deemed admitted unless such averments are controverted in a responsive pleading filed at or before the hearing on the motion for vesting. (2) At the hearing on the motion for vesting, if such averments have been controverted in responsive pleadings filed at or before the said hearing and if the court has not previously, in the same proceeding, determined the same, the court shall first hear and determine the following matters: (a) The authority of the petitioner to exercise the right of eminent domain; (b) Whether the property described in the motion for vesting is subject to the exercise of the right of eminent domain; (c) Whether the right of eminent domain is being properly exercised in the particular proceeding. (3) Failure to raise the issues enumerated in subsection (2) of this section, at or before the hearing on the motion for vesting, constitutes a waiver insofar as the said issues relate to the property described in the motion for vesting. The court's order thereon is a final order, and an appeal may be obtained for the review thereof by either party within twenty-one days after the entry of such order, but not thereafter unless the appellate court, on good cause shown, shall, within the twenty-one-day period, extend the time for obtaining an appeal. Appellate review shall not stay the other proceedings under this article, unless the appeal was obtained by the petitioner or unless an order staying such further proceedings is entered by the appellate court upon a showing of irreparable injury. (4) If the issues enumerated under subsection (2) of this section are determined in favor of the petitioner and further proceedings are not stayed or if further proceedings are stayed and the appeal results in a determination in favor of the petitioner, the court shall hear and determine all matters raised in and relating to the motion for vesting. If the foregoing matters are determined in favor of the petitioner, the court shall appoint three disinterested commissioners, who shall be freeholders, to assess the compensation to which the respondents named in the motion for vesting may be entitled by reason of the appropriation of the petitioner. (5) The commissioners, before entering upon the duties of their office, shall take an oath to faithfully and impartially discharge their duties as commissioners. Any one of them may administer oaths to witnesses produced before them. The commissioners shall forthwith view the property, hear such testimony, and consider such evidence as is reasonably necessary to enable them to make a preliminary finding of an amount constituting just compensation for the taking of the property of the respondents named in the motion for vesting. The commissioners shall forthwith make, subscribe, and file with the clerk of the court in which such proceedings are had a certified report meeting the requirements of section 38-1-115. Upon the motion of the petitioner filed within fourteen days of receipt of the notice provided for in section 38-7-103 (1), Colorado Revised Statutes 2019 Page 54 of 707 Uncertified Printout the court shall review the said report of the commissioners, and, upon good cause shown by the petitioner, the court may order a new report by the same or different commissioners, and the said order shall void the report objected to. The new commissioners appointed, if any, and the new report shall be in accordance with the provisions of this article. (6) Such preliminary finding of just compensation and any deposit made or security provided pursuant thereto shall not be evidence in the further proceedings to ascertain finally the just compensation to be paid and shall not be disclosed in any manner to a jury impaneled in such proceedings. Source: L. 69: p. 358, § 1. C.R.S. 1963: § 50-7-2. L. 2014: (1), (3), and (5) amended, (HB 14-1347), ch. 208, p. 769, § 4, effective July 1. Cross references: For contents of the report or verdict in eminent domain proceedings, see § 38-1-115. 38-7-103. Vesting of title - procedure. (1) When the certified report of the commissioners is filed with the clerk of the court, the said clerk shall forthwith notify all parties named in the motion for vesting of the filing of the said report and of the amount preliminarily found to constitute just compensation. (2) Within seven days of receipt of the notice described in subsection (1) of this section, the petitioner shall deposit with the court or the clerk of the court, for the use of the respondent named in the motion for vesting, the sum of money preliminarily found to constitute just compensation by the commissioners. If the petitioner has filed a motion for a new report under section 38-7-102 (5), the deposit shall not be due until seven days following the court's ruling on the said motion, if the motion is denied. If the motion is granted by the court, a new notice shall be sent by the clerk upon receipt of the new report. (3) Upon payment into the court or the clerk of the court of the sum described in subsection (2) of this section by the petitioner, the court shall enter an order vesting in the petitioner the fee simple title, or such lesser estate, interest, or easement, as may be required, to the property as requested in the motion for vesting at such date as the court considers proper, and fixing a date on which the petitioner is authorized to take possession of and to use the property. A certified copy of said order shall be recorded and indexed in the recorder's office of the county in which the property is located in like manner and with like effect as if it were a deed of conveyance from the owners and parties interested to the proper parties. If there is more than one person interested as owner or otherwise in the property and they are unable to agree upon the nature, extent, or value of their respective interests in the total amount of compensation so ascertained and assessed on an undivided basis, the nature, extent, or value of said interests shall be determined according to law in a separate and subsequent proceeding and distribution made among the several claimants. (4) At the request of any affected party and upon his showing of undue hardship or other good cause, the petitioner's authority to take possession of the property shall be postponed for more than fourteen days after the date of such vesting of title or more than twenty-one days after the entry of such order when the order does not vest title in the petitioner. If postponement occurs, such party shall pay to the petitioner a reasonable rental for such property, the amount thereof to be determined by the court. Colorado Revised Statutes 2019 Page 55 of 707 Uncertified Printout Source: L. 69: p. 359, § 1. C.R.S. 1963: § 50-7-3. L. 2014: (2) and (4) amended, (HB 14-1347), ch. 208, p. 769, § 5, effective July 1. 38-7-104. Withdrawals from deposit. Upon proper application to the court or by stipulation between the parties, the respondent may withdraw from the sum deposited pursuant to section 38-7-103 (2) an amount not to exceed three-fourths of the highest valuation evidenced by testimony presented by the petitioner to the commissioners, unless the petitioner agrees to a larger withdrawal. All parties interested in the property sought to be acquired shall be required to consent and agree to any such withdrawal. Any such withdrawal of said deposit shall be a partial payment of the amount of total compensation to be paid and shall be deducted by the clerk of the court from any award or verdict entered thereafter. Any party making such withdrawal shall refund to the clerk of the court, upon the entry of a proper court order, any portion of the amount so withdrawn which exceeds the amount finally ascertained in the proceeding to be just compensation or damages, costs, or expenses owing to such party. Source: L. 69: p. 360, § 1. C.R.S. 1963: § 50-7-4. 38-7-105. Construction of article. The right to take possession and title prior to the final judgment as prescribed in this article is in addition to any other right, power, or authority otherwise conferred by law and shall not be construed as abrogating, limiting, or modifying any such other right, power, or authority, including the rights, powers, and authorities granted in articles 1 to 6 of this title. Should the provisions of this article be invoked by any party, the final determination of the amount constituting just compensation shall be determined pursuant to the provisions of article 1 of this title. Source: L. 69: p. 360, § 1. C.R.S. 1963: § 50-7-5. Cross references: For computing damages and compensation, see § 38-1-114. 38-7-106. Commissioners - other articles. Nothing in this article shall be construed to prevent a commissioner appointed under this article from being appointed pursuant to the provisions of articles 1 to 6 of this title in the same eminent domain proceeding. Nothing in this article shall prevent the appointment of a commissioner, for purposes of this article, who has previously been appointed in the same proceeding under the provisions of article 1 of this title. Source: L. 69: p. 360, § 1. C.R.S. 1963: § 50-7-6. Cross references: For the appointment of a board of commissioners to determine just compensation, see § 38-1-105 (1). 38-7-107. Interest. The petitioner shall pay interest as provided in section 38-1-116; except that no interest shall be allowed on that portion of the award which the respondent received or could have received as a partial payment by withdrawal from the sum deposited by the petitioner pursuant to section 38-7-103 (2). Colorado Revised Statutes 2019 Page 56 of 707 Uncertified Printout Source: L. 69: p. 360, § 1. C.R.S. 1963: § 50-7-7. Cross references: For the interest on an award, see § 38-1-116. FRAUDS - STATUTE OF FRAUDS ARTICLE 8 Fraudulent Transfers Law reviews: For article, "Representing the Debtor: Counsel Beware", see 23 Colo. Law. 539 (1994); for article, "Overcoming Difficulties in Collecting Child Support and Maintenance", see 24 Colo. Law. 2725 (1995); for article, "Litigating Claims under the Colorado Uniform Fraudulent Transfer Act", see 45 Colo. Law. 35 (April 2016). 38-8-101. Short title. This article shall be known and may be cited as the "Colorado Uniform Fraudulent Transfer Act". Source: L. 91: Entire article added, p. 1681, § 1, effective July 1. Editor's note - Colorado legislative change: This section was numbered as section 12 in the uniform act. Colorado placed it here and renumbered the succeeding sections accordingly. Colorado also used its own numbering system for subsections and paragraphs within sections. Where necessary, these changes will be noted in the comments. 38-8-102. Definitions. As used in this article, unless the context otherwise requires: (1) "Affiliate" means: (a) A person who directly or indirectly owns, controls, or holds with power to vote twenty percent or more of the outstanding voting securities of the debtor, other than a person who holds the securities: (I) As a fiduciary or agent without sole discretionary power to vote the securities; or (II) Solely to secure a debt, if the person has not exercised the power to vote; (b) A corporation, twenty percent or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote, by the debtor or a person who directly or indirectly owns, controls, or holds with power to vote, twenty percent or more of the outstanding voting securities of the debtor, other than a person who holds the securities: (I) As a fiduciary or agent without sole power to vote the securities; or (II) Solely to secure a debt, if the person has not in fact exercised the power to vote; (c) A person whose business is operated by the debtor under a lease or other agreement, or a person substantially all of whose assets are controlled by the debtor; or (d) A person who operates the debtor's business under a lease or other agreement or controls substantially all of the debtor's assets. (2) "Asset" means property of a debtor. "Asset" shall not include: (a) Property to the extent it is encumbered by a valid lien; Colorado Revised Statutes 2019 Page 57 of 707 Uncertified Printout (b) Property to the extent it is generally exempt immediately prior to the time of transfer under nonbankruptcy law; or (c) An interest in property held in tenancy by the entireties to the extent it is not subject to process by a creditor holding a claim against only one tenant. (3) "Claim" means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured. (4) "Control" of a debtor or debtor's property by another person does not include conduct undertaken by the other person to enforce rights existing under a valid agreement, entered into in good faith and not primarily for the purpose of obtaining control of the debtor or the debtor's property, including without limitation a lease of such property. (5) "Creditor" means a person who has a claim. (6) "Debt" means liability on a claim. (7) "Debtor" means a person who is liable on a claim. (8) "Insider" means: (a) If the debtor is an individual: (I) A relative of the debtor or of a general partner of the debtor; (II) A partnership in which the debtor is a general partner; (III) A general partner in a partnership described in subparagraph (II) of this paragraph (a); or (IV) A corporation of which the debtor is a director, officer, or person in control; (b) If the debtor is a corporation: (I) A director of the debtor; (II) An officer of the debtor; (III) A person in control of the debtor; (IV) A partnership in which the debtor is a general partner; (V) A general partner in a partnership described in subparagraph (IV) of this paragraph (b); or (VI) A relative of a general partner, director, officer, or person in control of the debtor; (c) If the debtor is a partnership: (I) A general partner in the debtor; (II) A relative of a general partner in, or a general partner of, or a person in control of the debtor; (III) Another partnership in which the debtor is a general partner; (IV) A general partner in a partnership described in subparagraph (III) of this paragraph (c); or (V) A person in control of the debtor; (d) An affiliate, or an insider of an affiliate as if the affiliate were the debtor; or (e) A managing agent of the debtor. (9) "Lien" means a charge against or an interest in property to secure payment of a debt or performance of an obligation, and includes a security interest created by agreement, a judicial lien obtained by legal or equitable process or proceedings, a common-law lien, or a statutory lien. Colorado Revised Statutes 2019 Page 58 of 707 Uncertified Printout (10) "Person" means an individual, partnership, corporation, association, organization, government or governmental subdivision or agency, business trust, estate, trust, or any other legal or commercial entity. (11) "Property" means anything that may be the subject of ownership. (12) "Relative" means an individual related by consanguinity within the third degree as determined by the common law, a spouse, or an individual related to a spouse within the third degree as so determined, and includes an individual in an adoptive relationship within the third degree. (13) "Transfer" means every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset, and includes payment of money, release, lease, and creation of a lien or other encumbrance. (14) "Valid lien" means a lien that is effective against the holder of a judicial lien subsequently obtained by legal or equitable process or proceedings. Source: L. 91: Entire article added, p. 1681, § 1, effective July 1. Editor's note - Colorado legislative change: This section was numbered as section 1 in the uniform act. In the introductory portion to this section, after the word "article", Colorado added a comma and the words "unless the context otherwise requires". In the introductory portion to subsection (2), Colorado replaced a comma with a period and changed the words "but the term does not include" to "'Asset' shall not include". In subsection (2)(b), after "exempt", Colorado added "immediately prior to the time of transfer". The definition of "control" in subsection (4) has been added and subsequent definitions renumbered accordingly. In subsection (8), the word "means" has been substituted for "includes". 38-8-103. Insolvency. (1) A debtor is insolvent if the sum of the debtor's debts is greater than all of the debtor's assets at a fair valuation. (2) A debtor who is generally not paying his debts as they become due is presumed to be insolvent. (3) A partnership is insolvent under subsection (1) of this section if the sum of the partnership's debts is greater than the aggregate of all of the partnership's assets, at a fair valuation, and the sum of the excess of the value of each general partner's nonpartnership assets over the partner's nonpartnership debts. (4) Assets under this section do not include property that has been transferred, concealed, or removed with intent to hinder, delay, or defraud creditors or that has been transferred in a manner making the transfer voidable under this article. (5) Debts under this section do not include an obligation to the extent it is secured by a valid lien on property of the debtor not included as an asset. Source: L. 91: Entire article added, p. 1684, § 1, effective July 1. Editor's note - Colorado legislative change: This section was numbered as section 2 in the uniform act. In subsection (3), the phrase "at a fair valuation" has been moved from immediately after "aggregate" to immediately after the first "assets". Colorado Revised Statutes 2019 Page 59 of 707 Uncertified Printout 38-8-104. Value. (1) Value is given for a transfer or an obligation if, in exchange for the transfer or obligation, property is transferred or an antecedent debt is secured or satisfied, but value does not include an unperformed promise made otherwise than in the ordinary course of the promisor's business to furnish support to the debtor or another person. (2) For the purposes of sections 38-8-105 and 38-8-106, a person gives a reasonably equivalent value if the person acquires an interest of the debtor in an asset pursuant to a regularly conducted, noncollusive sale, foreclosing on assets subject to a lien, or pursuant to the execution of a power of sale for the acquisition or disposition of the interest of the debtor upon default under a mortgage, deed of trust, or security agreement. (3) A transfer is made for present value if the exchange between the debtor and the transferee is intended by them to be contemporaneous and is in fact substantially contemporaneous. Source: L. 91: Entire article added, p. 1684, § 1, effective July 1. Editor's note - Colorado legislative change: This section was numbered as section 3 in the uniform act. In subsection (2), after "conducted,", the phrase "noncollusive foreclosure sale or execution" has been changed to "noncollusive sale, foreclosing on assets subject to a lien, or pursuant to the execution". 38-8-105. Transfers fraudulent as to present and future creditors. (1) A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, whether the creditor's claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or incurred the obligation: (a) With actual intent to hinder, delay, or defraud any creditor of the debtor; or (b) Without receiving a reasonably equivalent value in exchange for the transfer or obligation, and the debtor: (I) Was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction; or (II) Intended to incur, or believed or reasonably should have believed that he would incur, debts beyond his ability to pay as they became due. (2) In determining actual intent under paragraph (a) of subsection (1) of this section, consideration may be given, among other factors, to whether: (a) The transfer or obligation was to an insider; (b) The debtor retained possession or control of the property transferred after the transfer; (c) The transfer or obligation was disclosed or concealed; (d) Before the transfer was made or obligation was incurred, the debtor had been sued or threatened with suit; (e) The transfer was of substantially all the debtor's assets; (f) The debtor absconded; (g) The debtor removed or concealed assets; (h) The value of the consideration received by the debtor was reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred; Colorado Revised Statutes 2019 Page 60 of 707 Uncertified Printout (i) The debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred; (j) The transfer occurred shortly before or shortly after a substantial debt was incurred; and (k) The debtor transferred the essential assets of the business to a lienor who transferred the assets to an insider of the debtor. Source: L. 91: Entire article added, p. 1685, § 1, effective July 1. Editor's note - Colorado legislative change: This section was numbered as section 4 in the uniform act. 38-8-106. Transfers fraudulent as to present creditors. (1) A transfer made or obligation incurred by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made or the obligation was incurred if the debtor made the transfer or incurred the obligation without receiving a reasonably equivalent value in exchange for the transfer or obligation and the debtor was insolvent at that time or the debtor became insolvent as a result of the transfer or obligation. (2) A transfer made by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made if the transfer was made to an insider for an antecedent debt, the debtor was insolvent at that time, and the insider had reasonable cause to believe that the debtor was insolvent. Source: L. 91: Entire article added, p. 1686, § 1, effective July 1. Editor's note - Colorado legislative change: This section was numbered as section 5 in the uniform act. 38-8-107. When transfer is made or obligation is incurred. (1) For the purposes of this article: (a) A transfer is made: (I) With respect to an asset that is real property other than a fixture, but including the interest of a seller or purchaser under a contract for the sale of the asset, when the transfer is so far perfected that a good-faith purchaser of the asset from the debtor against whom applicable law permits the transfer to be perfected cannot acquire an interest in the asset that is superior to the interest of the transferee; and (II) With respect to an asset that is not real property or that is a fixture, when the transfer is so far perfected that a creditor on a simple contract cannot acquire a judicial lien otherwise than under this article that is superior to the interest of the transferee. (2) If applicable law permits the transfer to be perfected as provided in subsection (1) of this section and the transfer is not so perfected before the commencement of an action for relief under this article, the transfer is deemed made immediately before the commencement of the action. Colorado Revised Statutes 2019 Page 61 of 707 Uncertified Printout (3) If applicable law does not permit the transfer to be perfected as provided in subsection (1) of this section, the transfer is made when it becomes effective between the debtor and the transferee. (4) A transfer is not made until the debtor has acquired rights in the asset transferred. (5) An obligation is incurred: (a) If oral, when it becomes effective between the parties; or (b) If evidenced by a writing, when the writing executed by the obligor is delivered to or for the benefit of the obligee. Source: L. 91: Entire article added, p. 1686, § 1, effective July 1. Editor's note - Colorado legislative change: This section was numbered as section 6 in the uniform act. 38-8-108. Remedies of creditors. (1) In an action for relief against a transfer or obligation under this article, a creditor, subject to the limitations in section 38-8-109, may obtain: (a) Avoidance of the transfer or obligation to the extent necessary to satisfy the creditor's claim; (b) An attachment or other provisional remedy against the asset transferred or other property of the transferee in accordance with the procedure prescribed by the Colorado rules of civil procedure; (c) With respect to a transfer made or obligation incurred that is fraudulent under section 38-8-105 (1)(a), a judgment for one and one-half the value of the asset transferred or for one and one-half the amount necessary to satisfy the creditor's claim, whichever is less, together with the creditor's actual costs; except that any judgment entered against a person under this paragraph (c) is in lieu of, not in addition to, a judgment against the same person under section 38-8-109 (2). No judgment may be entered pursuant to this paragraph (c) against a person other than the debtor unless that person also acts with wrongful intent as defined in section 38-8-105 (1)(a); otherwise, judgment for money damages against a person other than the debtor may be entered only as provided in section 38-8-109. No judgment may be entered under this paragraph (c) unless a court of competent jurisdiction enters or has entered a judgment or order establishing the validity of the creditor's claim against the debtor. (d) Subject to applicable principles of equity and in accordance with applicable rules of civil procedure: (I) An injunction against further disposition by the debtor or a transferee, or both, of the asset transferred or of other property; (II) Appointment of a receiver to take charge of the asset transferred or of other property of the transferee; or (III) Any other relief the circumstances may require. (2) If a creditor has obtained a judgment on a claim against the debtor, the creditor, if the court so orders, may levy execution on the asset transferred or its proceeds. Source: L. 91: Entire article added, p. 1687, § 1, effective July 1. L. 2014: (1) amended, (HB 14-1302), ch. 143, p. 489, § 1, effective May 2. Colorado Revised Statutes 2019 Page 62 of 707 Uncertified Printout 38-8-109. Defenses, liability, and protection of transferee. (1) A transfer or obligation is not voidable under section 38-8-105 (1)(a) against a person who took in good faith and for a reasonably equivalent value or against any subsequent transferee or obligee. (2) Except as otherwise provided in this section, to the extent a transfer is voidable in an action by a creditor under section 38-8-108 (1)(a), the creditor may recover judgment for the value of the asset transferred, as adjusted under subsection (3) of this section, or the amount necessary to satisfy the creditor's claim, whichever is less. The judgment may be entered against: (a) The first transferee of the asset or the person for whose benefit the transfer was made; or (b) Any subsequent transferee other than a good-faith transferee or obligee who took for value or from any subsequent transferee or obligee. (3) If the judgment under subsection (2) of this section is based upon the value of the asset transferred, the judgment must be for an amount equal to the value of the asset at the time of the transfer, subject to adjustment as the equities may require. (4) Notwithstanding voidability of a transfer or an obligation under this article, a goodfaith transferee or obligee is entitled, to the extent of the value given the debtor for the transfer or obligation, to: (a) A lien on or a right to retain any interest in the asset transferred; (b) Enforcement of any obligation incurred; or (c) A reduction in the amount of the liability on the judgment. (5) A transfer is not voidable under section 38-8-105 (1)(b) or 38-8-106 if the transfer results from: (a) Termination of a lease upon default by the debtor when the termination is pursuant to the lease and applicable law; or (b) Enforcement of a security interest in compliance with the provisions of the "Uniform Commercial Code - Secured Transactions", article 9 of title 4, C.R.S. (6) A transfer is not voidable under section 38-8-106 (2): (a) To the extent the insider gave new value to or for the benefit of the debtor after the transfer was made unless the new value was secured by a valid lien; (b) If made in the ordinary course of business or financial affairs of the debtor and the insider; or (c) If made pursuant to a good-faith effort to rehabilitate the debtor and the transfer secured present value given for that purpose as well as an antecedent debt of the debtor. Source: L. 91: Entire article added, p. 1687, § 1, effective July 1. Editor's note - Colorado legislative change: This section was numbered as section 8 in the uniform act. In subsection (2) (b), the phrase "or obligee" has been added after "transferee" in both places where "transferee" appears. 38-8-110. Extinguishment of cause of action. (1) A cause of action with respect to a fraudulent transfer or obligation under this article is extinguished unless action is brought: (a) Under section 38-8-105 (1)(a), within four years after the transfer was made or the obligation was incurred or, if later, within one year after the transfer or obligation was or could reasonably have been discovered by the claimant; Colorado Revised Statutes 2019 Page 63 of 707 Uncertified Printout (b) Under section 38-8-105 (1)(b) or 38-8-106 (1), within four years after the transfer was made or the obligation was incurred; or (c) Under section 38-8-106 (2), within one year after the transfer was made or the obligation was incurred. Source: L. 91: Entire article added, p. 1689, § 1, effective July 1. Editor's note - Colorado legislative change: This section was numbered as section 9 in the uniform act. 38-8-111. Supplementary provisions. Unless displaced by the provisions of this article, the principles of law and equity, including the law merchant and the law relating to principal and agent, estoppel, laches, fraud, misrepresentation, duress, coercion, mistake, insolvency, or other validating or invalidating cause, supplement the provisions of this article. Source: L. 91: Entire article added, p. 1689, § 1, effective July 1. Editor's note - Colorado legislative change: This section was numbered as section 10 in the uniform act. 38-8-112. Uniformity of application and construction. This article shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this article. Source: L. 91: Entire article added, p. 1689, § 1, effective July 1. Editor's note - Colorado legislative change: This section was numbered as section 11 in the uniform act. Colorado deleted the phrase "among states enacting it" from the end of this section. ARTICLE 10 Frauds - Statute of Frauds Cross references: For formal requirements for defense of statute of frauds, see § 4-2201; for modification, rescission, and waiver of contract, see § 4-2-209; for nature of a sale on approval and sale or return, see § 4-2-326; for pleading fraud as a defense, see C.R.C.P. 8. 38-10-101. Conveyances to defraud. Every conveyance of any estate or interest in the lands, or the rents and profits of lands, and every charge upon lands, or upon the rents and profits thereof, made or created with the intent to defraud prior or subsequent purchasers for a valuable consideration of the same lands, rents, or profits, as against such purchasers, shall be void. Source: R.S. p. 337, § 1. G.L. § 1251. G.S. § 1510. R.S. 08: § 2655. C.L. § 5100. CSA: C. 71, § 1. CRS 53: § 59-1-1. C.R.S. 1963: § 59-1-1. Colorado Revised Statutes 2019 Page 64 of 707 Uncertified Printout Cross references: For the statute of frauds as an affirmative defense, see C.R.C.P. 8(c). 38-10-102. Purchaser with notice - prior grantee privy. No such conveyance or charge shall be deemed fraudulent in favor of a subsequent purchaser, who has actual or legal notice thereof at the time of his purchase, unless it appears that the grantee in such conveyance or person to be benefited by such charge was privy to the fraud intended. Source: R.S. p. 338, § 2. G.L. § 1252. G.S. § 1511. R.S. 08: § 2656. C.L. § 5101. CSA: C. 71, § 2. CRS 53: § 59-1-2. C.R.S. 1963: § 59-1-2. 38-10-103. Conveyance determinable at will of grantor void. Every conveyance or charge of or upon any estate or interest in lands containing any provision for the revocation, determination, or alteration of such estate or interest, or any part thereof, at the will of the grantor shall be void as against subsequent purchasers from such grantor, for a valuable consideration, of any estate or interest so liable to be revoked, determined, or altered by such grantor, by virtue of the power reserved or expressed in such prior conveyance or charge. Source: R.S. p. 338, § 3. G.L. § 1253. G.S. § 1512. R.S. 08: § 2657. C.L. § 5102. CSA: C. 71, § 3. CRS 53: § 59-1-3. C.R.S. 1963: § 59-1-3. 38-10-104. Power to revoke and reconvey. When the power to revoke a conveyance of any lands or the rents and profits thereof and to reconvey the same is given to any person other than the grantor in such conveyance and such person thereafter conveys the same lands, rents, or profits to a purchaser for a valuable consideration, such subsequent conveyance shall be valid in the same manner and to the same extent as if the power of revocation were recited therein and the intent to revoke the former conveyance expressly declared. Source: R.S. p. 338, § 4. G.L. § 1254. G.S. § 1513. R.S. 08: § 2658. C.L. § 5103. CSA: C. 71, § 4. CRS 53: § 59-1-4. C.R.S. 1963: § 59-1-4. 38-10-105. Conveyance before power vests. If a conveyance to a purchaser under section 38-10-103 or 38-10-104 is made before the person making the same is entitled to execute his power of revocation, it shall nevertheless be valid from the time the power of revocation actually vests in such person, in the same manner and to the same extent as if then made. Source: R.S. p. 338, § 5. G.L. § 1255. G.S. § 1514. R.S. 08: § 2659. C.L. § 5104. CSA: C. 71, § 5. CRS 53: § 59-1-5. C.R.S. 1963: § 59-1-5. Cross references: For a conveyance determinable at the will of the grantor being void, see § 38-10-103; for the validity of the power to revoke a conveyance and reconvey, see § 38-10104. 38-10-106. Conveyance - trust - power must be in writing. No estate or interest in lands, other than leases for a term not exceeding one year, nor any trust or power over or concerning lands or in any manner relating thereto shall be created, granted, assigned, Colorado Revised Statutes 2019 Page 65 of 707 Uncertified Printout surrendered, or declared, unless by act or operation of law, or by deed or conveyance in writing subscribed by the party creating, granting, assigning, surrendering, or declaring the same, or by his lawful agent thereunto authorized by writing. Source: R.S. p. 338, § 6. G.L. § 1256. G.S. § 1515. R.S. 08: § 2660. C.L. § 5105. CSA: C. 71, § 6. CRS 53: § 59-1-6. C.R.S. 1963: § 59-1-6. 38-10-107. Not to affect will or trusts by operation of law. Section 38-10-106 shall not be construed to affect in any manner the power of the testator in the disposition of his real estate by a last will and testament nor to prevent any trust from arising or being extinguished by implication or operation of law. Source: R.S. p. 338, § 7. G.L. § 1257. G.S. § 1516. R.S. 08: § 2661. C.L. § 5106. CSA: C. 71, § 7. CRS 53: § 59-1-7. C.R.S. 1963: § 59-1-7. 38-10-108. Contracts for interests in land - must be written. Every contract for the leasing for a longer period than one year or for the sale of any lands or any interest in lands is void unless the contract or some note or memorandum thereof expressing the consideration is in writing and subscribed by the party by whom the lease or sale is to be made. Source: R.S. p. 339, § 8. G.L. § 1258. G.S. § 1517. R.S. 08: § 2662. C.L. § 5107. CSA: C. 71, § 8. CRS 53: § 59-1-8. C.R.S. 1963: § 59-1-8. 38-10-109. Authorized agent may subscribe instrument. Every instrument required to be subscribed by any party under section 38-10-108 may be subscribed by the agent of such party lawfully authorized by writing. Source: R.S. p. 339, § 9. G.L. § 1259. G.S. § 1518. L. 1887: p. 274, § 1. R.S. 08: § 2663. C.L. § 5108. CSA: C. 71, § 9. CRS 53: § 59-1-9. C.R.S. 1963: § 59-1-9. 38-10-110. Courts may enforce specific performance. Nothing in this article shall be construed to abridge the powers of courts of equity to compel the specific performance of agreements in cases of part performance of such agreement. Source: R.S. p. 339, § 10. G.L. § 1260. G.S. § 1519. R.S. 08: § 2664. C.L. § 5109. CSA: C. 71, § 10. CRS 53: § 59-1-10. C.R.S. 1963: § 59-1-10. 38-10-111. Trusts for use of grantor void against creditors. All deeds of gift, all conveyances, and all transfers or assignments, verbal or written, of goods, chattels, or things in action, or real property, made in trust for the use of the person making the same shall be void as against the creditors existing of such person. Source: R.S. p. 339, § 11. G.L. § 1261. G.S. § 1520. R.S. 08: § 2665. L. 21: p. 339, § 1. C.L. § 5110. CSA: C. 71, § 11. CRS 53: § 59-1-11. C.R.S. 1963: § 59-1-11. Colorado Revised Statutes 2019 Page 66 of 707 Uncertified Printout 38-10-111.5. Trusts to establish or maintain eligibility for certain public assistance void - exceptions. Any trust established by or for a person that consists of the person's individual assets, income, or property of any kind shall be void for the purpose of establishing or maintaining eligibility for any public assistance as provided by article 2 of title 26, C.R.S., or medical assistance as provided by articles 4, 5, and 6 of title 25.5, C.R.S., unless the trust is established in accordance with the provisions of sections 15-14-412.6 to 15-14-412.9, C.R.S. Source: L. 94: Entire section added, p. 1604, § 12, effective July 1. L. 2000: Entire section amended, p. 1836, § 16, effective January 1, 2001. L. 2006: Entire section amended, p. 2022, § 117, effective July 1. 38-10-112. Void agreements. (1) Except for contracts for the sale of goods which are governed by section 4-2-201, C.R.S., and lease contracts which are governed by section 4-2.5201, C.R.S., in the following cases every agreement shall be void, unless such agreement or some note or memorandum thereof is in writing and subscribed by the party charged therewith: (a) Every agreement that by the terms is not to be performed within one year after the making thereof; (b) Every special promise to answer for the debt, default, or miscarriage of another person; (c) Every agreement, promise, or undertaking made upon consideration of marriage, except mutual promises to marry. (2) Repealed. Source: R.S. p. 339, § 12. G.L. § 1262. G.S. § 1521. R.S. 08: § 2666. C.L. § 5111. CSA: C. 71, § 12. CRS 53: § 59-1-12. C.R.S. 1963: § 59-1-12. L. 69: p. 392, § 1. L. 77: (2) repealed, p. 340, § 47, effective January 1, 1978. L. 91: (1) amended, p. 321, § 5, effective July 1, 1992. 38-10-113. Goods sold at auction - memorandum. Whenever goods are sold at auction, and the auctioneer at the time of sale enters in a sale book a memorandum specifying the nature and price of the property sold, the terms of sale, the name of the purchaser, and the name of the person for whose account the sale is made, such memorandum shall be deemed a note of the contract of such sale within the meaning of section 38-10-112. Source: R.S. p. 339, § 13. G.L. § 1263. G.S. § 1522. R.S. 08: § 2667. C.L. § 5112. CSA: C. 71, § 13. CRS 53: § 59-1-13. C.R.S. 1963: § 59-1-13. 38-10-114. No delivery or change of possession - effect. Except as otherwise provided in section 4-2-402 or 4-2.5-308, C.R.S., or except where evidence of the transaction is included in the central registry maintained with respect to transactions relating to title to such goods and chattels, or is duly noted on the certificate of title to such goods and chattels by the authority issuing such certificate, or is included in the records of the proper filing office for a security interest in such goods and chattels under section 4-9-501, C.R.S., or is a transaction described in section 4-9-309 or 4-9-310, C.R.S., every sale made by a vendor of goods and chattels in his or her possession or under his or her control and every assignment of goods and chattels, unless Colorado Revised Statutes 2019 Page 67 of 707 Uncertified Printout each shall be accompanied by an immediate delivery and followed by an actual and continued change of possession of things sold or assigned, shall be presumed to be fraudulent and void as against the creditors of the vendor, or the creditors of the person making such assignment, or subsequent purchasers in good faith, unless the party opposed to the effect of the presumption shall establish that it is more probable than not that such sale or assignment was made by the seller or assignor in good faith and without any actual intent to hinder, delay, or defraud creditors or subsequent purchasers. Source: R.S. p. 339, § 14. G.L. § 1264. G.S. § 1523. R.S. 08: § 2668. C.L. § 5113. CSA: C. 71, § 14. CRS 53: § 59-1-14. C.R.S. 1963: § 59-1-14. L. 65: p. 1481, § 3. L. 83: Entire section amended, p. 1446, § 1, effective July 1. L. 91: Entire section amended, p. 1689, § 2, effective July 1; entire section amended, p. 321, § 6, effective July 1, 1992. L. 2001: Entire section amended, p. 1446, § 42, effective July 1. Editor's note: Amendments to this section by House Bill 91-1080 and Senate Bill 91129 were harmonized. Cross references: For rights of seller's creditors against sold goods, see § 4-2-402. 38-10-115. Creditors defined. "Creditors", as used in section 38-10-114, includes all persons who are creditors of the vendor or assignor at any time while such goods and chattels remain in his possession or control. Source: R.S. p. 340, § 15. G.L. § 1265. G.S. § 1524. R.S. 08: § 2669. C.L. § 5114. CSA: C. 71, § 15. CRS 53: § 59-1-15. C.R.S. 1963: § 59-1-15. 38-10-116. Lawful agent may subscribe. Every instrument required by any of the provisions of this article to be subscribed by any party may be subscribed by the lawful agent of such party. Source: R.S. p. 340, § 16. G.L. § 1266. G.S. § 1525. R.S. 08: § 2670. C.L. § 5115. CSA: C. 71, § 16. CRS 53: § 59-1-16. C.R.S. 1963: § 59-1-16. Cross references: For legality of subscription of a document by a lawful agent, see § 3810-109. 38-10-117. Conveyances to defraud creditors void. (1) Every conveyance or assignment in writing or otherwise of any estate or interest in lands, goods, or things in action or of any rents and profits issuing thereupon, and every charge upon lands, goods, or things in action or upon the rents and profits thereof made with the intent to hinder, delay, or defraud creditors or other persons of their lawful suits, damages, forfeitures, debts, or demands, and every bond or other evidence of debt given, suits commenced, or decree or judgment suffered with the like intent as against the person so hindered, delayed, or defrauded shall be void. (2) This section shall not apply to any transfer made or obligation incurred on or after July 1, 1991, and, for the applicability of this subsection (2), the time at which any such transfer Colorado Revised Statutes 2019 Page 68 of 707 Uncertified Printout or obligation is made or incurred shall be determined in accordance with the provisions of article 8 of this title. Source: R.S. p. 340, § 17. G.L. § 1267. G.S. § 1526. R.S. 08: § 2671. C.L. § 5116. CSA: C. 71, § 17. CRS 53: § 59-1-17. C.R.S. 1963: § 59-1-17. L. 91: Entire section amended, p. 1690, § 3, effective July 1. 38-10-118. Grant or assignment of trust. Every grant or assignment of any existing trust in lands, goods, or things in action, unless the same is in writing and subscribed by the party making the same or by his agent lawfully authorized, shall be void. Source: R.S. p. 340, § 18. G.L. § 1268. G.S. § 1527. R.S. 08: § 2672. C.L. § 5117. CSA: C. 71, § 18. CRS 53: § 59-1-18. C.R.S. 1963: § 59-1-18. 38-10-119. Conveyances void against heirs. Every conveyance, charge, instrument, or proceeding declared to be void by the provisions of this article as against creditors or purchasers shall be equally void against the heirs, successors, personal representatives, or assignees of such creditors or purchasers. Source: R.S. p. 340, § 19. G.L. § 1269. G.S. § 1528. R.S. 08: § 2673. C.L. § 5118. CSA: C. 71, § 19. CRS 53: § 59-1-19. C.R.S. 1963: § 59-1-19. 38-10-120. Intent, question of fact - want of consideration. The question of fraudulent intent, in all cases arising under the provisions of this article, shall be deemed a question of fact and not of law; nor shall any conveyance or charge be adjudged fraudulent against creditors or purchasers solely on the ground that it was not founded on a valuable consideration. Source: R.S. p. 340, § 20. G.L. § 1270. G.S. § 1529. R.S. 08: § 2674. C.L. § 5119. CSA: C. 71, § 20. CRS 53: § 59-1-20. C.R.S. 1963: § 59-1-20. 38-10-121. Purchaser with notice of fraud. The provisions of this article shall not be construed in any manner to affect or impair the title of a purchaser for a valuable consideration, unless it appears that such purchaser had previous notice of the fraudulent intent of his immediate grantor or of the fraud rendering void the title of such grantor. Source: R.S. p. 340, § 21. G.L. § 1271. G.S. § 1530. R.S. 08: § 2675. C.L. § 5120. CSA: C. 71, § 21. CRS 53: § 59-1-21. C.R.S. 1963: § 59-1-21. 38-10-122. Construction of terms. "Lands", as used in this article, means lands, tenements, and hereditaments; and "estate and interest in lands" includes every estate and interest, freehold and chattel, legal and equitable, present and future, vested and contingent in lands as defined in this section. Source: R.S. p. 340, § 22. G.L. § 1272. G.S. § 1531. R.S. 08: § 2676. C.L. § 5121. CSA: C. 71, § 22. CRS 53: § 59-1-22. C.R.S. 1963: § 59-1-22. Colorado Revised Statutes 2019 Page 69 of 707 Uncertified Printout 38-10-123. Term conveyance, how construed. "Conveyance", as used in this article, includes every instrument in writing, except a last will and testament, whatever may be its form and by whatever name it may be known in law, by which any estate or interest in lands is created, aliened, assigned, or surrendered. Source: R.S. p. 341, § 23. G.L. § 1273. G.S. § 1532. R.S. 08: § 2677. C.L. § 5122. CSA: C. 71, § 23. CRS 53: § 59-1-23. C.R.S. 1963: § 59-1-23. 38-10-124. Credit agreements - required to be in writing. (1) As used in this section, unless the context otherwise requires: (a) "Credit agreement" means: (I) A contract, promise, undertaking, offer, or commitment to lend, borrow, repay, or forbear repayment of money, to otherwise extend or receive credit, or to make any other financial accommodation; (II) Any amendment of, cancellation of, waiver of, or substitution for any or all of the terms or provisions of any of the credit agreements defined in subparagraphs (I) and (III) of this paragraph (a); and (III) Any representations and warranties made or omissions in connection with the negotiation, execution, administration, or performance of, or collection of sums due under, any of the credit agreements defined in subparagraphs (I) and (II) of this paragraph (a). (b) "Creditor" means a financial institution which offers to extend, is asked to extend, or extends credit under a credit agreement with a debtor. (c) "Debtor" means a person who or entity which obtains credit or seeks a credit agreement with a creditor or who owes money to a creditor. (d) "Financial institution" means a bank, savings and loan association, savings bank, credit union, or mortgage or finance company. (2) Notwithstanding any statutory or case law to the contrary, including but not limited to section 38-10-112, no debtor or creditor may file or maintain an action or a claim relating to a credit agreement involving a principal amount in excess of twenty-five thousand dollars unless the credit agreement is in writing and is signed by the party against whom enforcement is sought. (3) A credit agreement may not be implied under any circumstances, including, without limitation, from the relationship, fiduciary or otherwise, of the creditor and the debtor or from performance or partial performance by or on behalf of the creditor or debtor, or by promissory estoppel. Source: L. 89: Entire section added, p. 1438, § 1, effective March 15. L. 2013: (1)(d) amended, (SB 13-154), ch. 282, p. 1489, § 71, effective July 1. JOINT RIGHTS AND OBLIGATIONS ARTICLE 11 Joint Tenancy Colorado Revised Statutes 2019 Page 70 of 707 Uncertified Printout 38-11-101. Personal property in joint tenancy - how created - vesting upon death. (1) An estate in joint tenancy in personal property is created if, in the instrument evidencing ownership of such property, it is declared that the property is conveyed, transferred, bequeathed, or held in joint tenancy or as joint tenants, whether or not additional words are used relating to tenancy in common or survivorship. The abbreviation "JTWROS" and the phrase "as joint tenants with right of survivorship" or "in joint tenancy with right of survivorship" shall have the same meaning. Upon the death of any such joint tenants, the title to and ownership of such personal property passes immediately to and vests in the surviving joint tenant or tenants. Any grantor or transferor in any such instrument of conveyance or transfer may also be one of the grantees or transferees therein. (2) Repealed. (3) Any such instrument evidencing ownership executed prior to July 1, 1996, as amended in compliance with subsection (1) of this section shall be deemed to have created an estate in joint tenancy. Source: L. 37: p. 792, § 1. CSA: C. 92, § 17. L. 39: p. 286, § 1. CRS 53: § 76-1-5. L. 59: p. 528, § 1. C.R.S. 1963: § 76-1-5. L. 96: Entire section amended, p. 661, § 14, effective July 1. L. 2002: (2) amended, p. 1361, § 13, effective July 1. L. 2003: (2) repealed, p. 2002, § 66, effective May 22. Cross references: For joint tenancy in real property, see article 31 of this title; for joint tenancy in bank accounts, see §11-105-105 and article 15 of title 15; for joint rights and obligations generally, see article 50 of title 13. TENANTS AND LANDLORDS ARTICLE 12 Tenants and Landlords Law reviews: For article, "The Effect of Zoning Violations on the Enforceability of Leases", see 19 Colo. Law. 2077 (1990). PART 1 SECURITY DEPOSITS - WRONGFUL WITHHOLDING 38-12-101. Legislative declaration. The provisions of this part 1 shall be liberally construed to implement the intent of the general assembly to insure the proper administration of security deposits and protect the interests of tenants and landlords. Source: L. 71: p. 592, § 1. C.R.S. 1963: § 58-1-26. 38-12-102. Definitions. As used in this part 1, unless the context otherwise requires: Colorado Revised Statutes 2019 Page 71 of 707 Uncertified Printout (1) "Normal wear and tear" means that deterioration which occurs, based upon the use for which the rental unit is intended, without negligence, carelessness, accident, or abuse of the premises or equipment or chattels by the tenant or members of his household, or their invitees or guests. (2) "Security deposit" means any advance or deposit of money, regardless of its denomination, the primary function of which is to secure the performance of a rental agreement for residential premises or any part thereof. Source: L. 71: p. 592, § 1. C.R.S. 1963: § 58-1-27. 38-12-103. Return of security deposit. (1) A landlord shall, within one month after the termination of a lease or surrender and acceptance of the premises, whichever occurs last, return to the tenant the full security deposit deposited with the landlord by the tenant, unless the lease agreement specifies a longer period of time, but not to exceed sixty days. No security deposit shall be retained to cover normal wear and tear. In the event that actual cause exists for retaining any portion of the security deposit, the landlord shall provide the tenant with a written statement listing the exact reasons for the retention of any portion of the security deposit. When the statement is delivered, it shall be accompanied by payment of the difference between any sum deposited and the amount retained. The landlord is deemed to have complied with this section by mailing said statement and any payment required to the last known address of the tenant. Nothing in this section shall preclude the landlord from retaining the security deposit for nonpayment of rent, abandonment of the premises, or nonpayment of utility charges, repair work, or cleaning contracted for by the tenant. (2) The failure of a landlord to provide a written statement within the required time specified in subsection (1) of this section shall work a forfeiture of all his rights to withhold any portion of the security deposit under this section. (3) (a) The willful retention of a security deposit in violation of this section shall render a landlord liable for treble the amount of that portion of the security deposit wrongfully withheld from the tenant, together with reasonable attorney fees and court costs; except that the tenant has the obligation to give notice to the landlord of his intention to file legal proceedings a minimum of seven days prior to filing said action. (b) In any court action brought by a tenant under this section, the landlord shall bear the burden of proving that his withholding of the security deposit or any portion of it was not wrongful. (4) Upon cessation of his interest in the dwelling unit, whether by sale, assignment, death, appointment of a receiver, or otherwise, the person in possession of the security deposit, including but not limited to the landlord, his agent, or his executor, shall, within a reasonable time: (a) Transfer the funds, or any remainder after lawful deductions under subsection (1) of this section, to the landlord's successor in interest and notify the tenant by mail of such transfer and of the transferee's name and address; or (b) Return the funds, or any remainder after lawful deductions under subsection (1) of this section, to the tenant. (5) Upon compliance with subsection (4) of this section, the person in possession of the security deposit shall be relieved of further liability. Colorado Revised Statutes 2019 Page 72 of 707 Uncertified Printout (6) Upon receipt of transferred funds under subsection (4)(a) of this section, the transferee, in relation to such funds, shall be deemed to have all of the rights and obligations of a landlord holding the funds as a security deposit. (7) Any provision, whether oral or written, in or pertaining to a rental agreement whereby any provision of this section for the benefit of a tenant or members of his household is waived shall be deemed to be against public policy and shall be void. Source: L. 71: p. 592, § 1. C.R.S. 1963: § 58-1-28. L. 76: (2) amended, p. 314, § 67, effective May 20. 38-12-104. Return of security deposit - hazardous condition - gas appliance. (1) Anytime service personnel from any organization providing gas service to a residential building become aware of any hazardous condition of a gas appliance, piping, or other gas equipment, such personnel shall inform the customer of record at the affected address in writing of the hazardous condition and take any further action provided for by the policies of such personnel's employer. Such written notification shall state the potential nature of the hazard as a fire hazard or a hazard to life, health, property, or public welfare and shall explain the possible cause of the hazard. (2) If the resident of the residential building is a tenant, such tenant shall immediately inform the landlord of the property or the landlord's agent in writing of the existence of the hazard. (3) The landlord shall then have seventy-two hours excluding a Saturday, Sunday, or a legal holiday after the actual receipt of the written notice of the hazardous condition to have the hazardous condition repaired by a professional. "Professional" for the purposes of this section means a person authorized by the state of Colorado or by a county or municipal government through license or certificate where such government authorization is required. Where no person with such government authorization is available, and where there are no local requirements for government authorization, a person who is otherwise qualified and who possesses insurance with a minimum of one hundred thousand dollars public liability and property damage coverage shall be deemed a professional for purposes of this section. Proof of such repairs shall be forwarded to the landlord or the landlord's agent. Such proof may also be used as an affirmative defense in any action to recover the security deposit, as provided for in this section. (4) If the landlord does not have the repairs made within seventy-two hours excluding a Saturday, Sunday, or a legal holiday, and the condition of the building remains hazardous, the tenant may opt to vacate the premises. After the tenant vacates the premises, the lease or other rental agreement between the landlord and tenant becomes null and void, all rights and future obligations between the landlord and tenant pursuant to the lease or other rental agreement terminate, and the tenant may demand the immediate return of all or any portion of the security deposit held by the landlord to which the tenant is entitled. The landlord shall have seventy-two hours following the tenant's vacation of the premises to deliver to the tenant all of, or the appropriate portion of, the security deposit plus any rent rebate owed to the tenant for rent paid by the tenant for the period of time after the tenant has vacated. If the seventy-second hour falls on a Saturday, Sunday, or legal holiday, the security deposit must be delivered by noon on the next day that is not a Saturday, Sunday, or legal holiday. The tenant shall provide the landlord with a correct forwarding address. No security deposit shall be retained to cover normal wear Colorado Revised Statutes 2019 Page 73 of 707 Uncertified Printout and tear. In the event that actual cause exists for retaining any portion of the security deposit, the landlord shall provide the tenant with a written statement listing the exact reasons for the retention of any portion of the security deposit. When the statement is delivered, it shall be accompanied by payment of the difference between any sum deposited and the amount retained. The landlord is deemed to have complied with this section by mailing said statement and any payments required by this section to the forwarding address of the tenant. Nothing in this section shall preclude the landlord from withholding the security deposit for nonpayment of rent or for nonpayment of utility charges, repair work, or cleaning contracted for by the tenant. If the tenant does not receive the entire security deposit or a portion of the security deposit together with a written statement listing the exact reasons for the retention of any portion of the security deposit within the time period provided for in this section, the retention of the security deposit shall be deemed willful and wrongful and, notwithstanding the provisions of section 38-12-103 (3), shall entitle the tenant to twice the amount of the security deposit and to reasonable attorney fees. Source: L. 91: Entire section added, p. 1691, § 1, effective July 1. PART 2 MOBILE HOME PARK ACT 38-12-200.1. Short title. This part 2 shall be known and may be cited as the "Mobile Home Park Act". Source: L. 85: Entire section added, p. 1198, § 1, effective June 6. 38-12-200.2. Legislative declaration. The general assembly hereby declares that the purpose of this part 2 is to establish the relationship between the owner of a mobile home park and the owner of a mobile home situated in such park. Source: L. 85: Entire section added, p. 1198, § 1, effective June 6. 38-12-201. Application of part 2. (1) This part 2 shall apply only to manufactured homes as defined in section 42-1-102 (106)(b), C.R.S. (2) Repealed. Source: L. 73: p. 641, § 1. C.R.S. 1963: § 58-2-1. L. 75: (1) amended, p. 1467, § 10, effective July 18. L. 81: (1) amended and (2) repealed, pp. 1813, 1817, §§ 1, 10, effective June 9. L. 89: (1) amended, p. 729, § 34, effective July 1. L. 94: (1) amended, p. 706, § 13, effective April 19. L. 95: (1) amended, p. 951, § 2, effective May 25. 38-12-201.3. Legislative declaration - increased availability of mobile home parks. The general assembly hereby finds and declares that mobile homes, manufactured housing, and factory-built housing are important and effective ways to meet Colorado's affordable housing needs. The general assembly further finds and declares that, because of the unique aspects of mobile homes and mobile home park ownership, there is a need to protect mobile home owners Colorado Revised Statutes 2019 Page 74 of 707 Uncertified Printout from eviction with short notice so as to prevent mobile home owners from losing their shelter as well as any equity in their mobile homes. The general assembly encourages local governments to allow and protect mobile home parks in their jurisdictions and to enact plans to increase the number of mobile home parks in their jurisdictions. The general assembly further encourages local governments to provide incentives to mobile home park owners to attract additional mobile home parks and to increase the viability of current parks. Source: L. 2005: Entire section added, p. 110, § 4, effective August 8. L. 2010: Entire section amended, (SB 10-156), ch. 343, p. 1584, § 1, effective July 1. 38-12-201.5. Definitions. As used in this part 2 and in part 11 of this title 38, unless the context otherwise requires: (1) "Home owner" means any person or family of such person owning a mobile home that is subject to a tenancy in a mobile home park under a rental agreement. (1.5) "Management" or "landlord" means the owner or person responsible for operating and managing a mobile home park or an agent, employee, or representative authorized to act on said management's behalf in connection with matters relating to tenancy in the park. (2) "Mobile home" means a single-family dwelling built on a permanent chassis designed for long-term residential occupancy and containing complete electrical, plumbing, and sanitary facilities and designed to be installed in a permanent or semipermanent manner with or without a permanent foundation, which is capable of being drawn over public highways as a unit, or in sections by special permit, or a manufactured home as defined in section 38-29-102 (6) if the manufactured home is situated in a mobile home park. (3) "Mobile home park" or "park" means a parcel of land used for the continuous accommodation of five or more occupied mobile homes and operated for the pecuniary benefit of the owner of the parcel of land, his agents, lessees, or assignees. Mobile home park does not include mobile home subdivisions or property zoned for manufactured home subdivisions. (4) "Mobile home space", "space", "mobile home lot" or "lot" means a parcel of land within a mobile home park designated by the management to accommodate one mobile home and its accessory buildings and to which the required sewer and utility connections are provided by the mobile home park. (5) "Premises" means a mobile home park and existing facilities and appurtenances therein, including furniture and utilities where applicable, and grounds, areas, and existing facilities held out for the use of home owners generally or the use of which is promised to the home owner. (6) "Rent" means any money or other consideration to be paid to the management for the right of use, possession, and occupation of the premises. (7) "Rental agreement" means an agreement, written or implied by law, between the management and the home owner establishing the terms and conditions of a tenancy, including reasonable rules and regulations promulgated by the park management. A lease is a rental agreement. (8) Repealed. (9) "Tenancy" means the rights of a home owner to use a space or lot within a park on which to locate, maintain, and occupy a mobile home, lot improvements, and accessory structures for human habitation, including the use of services and facilities of the park. Colorado Revised Statutes 2019 Page 75 of 707 Uncertified Printout Source: L. 81: Entire section added, p. 1813, § 2, effective June 9. L. 87: (1) R&RE, (1.5) added, (5), (7), and (9) amended, and (8) repealed, pp. 1310, 1315, §§ 2, 1, 15, effective May 8. L. 2010: (2) amended, (SB 10-156), ch. 343, p. 1584, § 2, effective July 1. L. 2019: IP amended, (HB 19-1309), ch. 281, p. 2629, § 5, effective May 23. Cross references: For the legislative declaration in HB 19-1309, see section 1 of chapter 281, Session Laws of Colorado 2019. 38-12-202. Tenancy - notice to quit. (1) (a) No tenancy or other lease or rental occupancy of space in a mobile home park shall commence without a written lease or rental agreement, and no tenancy in a mobile home park shall be terminated until a notice to quit has been served. Said notice to quit shall be in writing and in the form specified in section 13-40-107 (2), C.R.S. The property description required in section 13-40-107 (2), C.R.S., shall be deemed legally sufficient if it states: (I) The name of the landlord or the mobile home park; (II) The mailing address of the property; (III) The location or space number upon which the mobile home is situate; and (IV) The county in which the mobile home is situate. (b) Service of the notice to quit shall be as specified in section 13-40-108, C.R.S. Service by posting shall be deemed legally sufficient within the meaning of section 13-40-108, C.R.S., if the notice is affixed to the main entrance of the mobile home. (c) (I) Except as otherwise provided in subparagraph (II) of this paragraph (c), the home owner shall be given a period of not less than sixty days to remove any mobile home from the premises from the date the notice is served or posted. In those situations where a mobile home is being leased to, or occupied by, persons other than its owner and in a manner contrary to the rules and regulations of the landlord, then in that event, the tenancy may be terminated by the landlord upon giving a thirty-day notice rather than said sixty-day notice. (II) If the tenancy is terminated on grounds specified in section 38-12-203 (1)(f), the home owner shall be given a period of not less than ten days to remove any mobile home from the premises from the date the notice is served or posted. (2) No lease shall contain any provision by which the home owner waives his or her rights under this part 2, and any such waiver shall be deemed contrary to public policy and shall be unenforceable and void. In those situations where a mobile home is being leased to, or occupied by, persons other than its owner and in a manner contrary to the rules and regulations of the landlord, then, in that event, the tenancy may be terminated by the landlord upon giving a thirty-day notice rather than said sixty-day notice. (3) The landlord or management of a mobile home park shall specify, in the notice required by this section, the reason for the termination, as described in section 38-12-203, of any tenancy in such mobile home park. If the tenancy is being terminated based on the mobile home or mobile home lot being out of compliance with the rules and regulations adopted pursuant to section 38-12-203 (1)(c), the notice required by this section shall include a statement advising the home owner that the home owner has a right to cure the noncompliance within thirty days of the date of service or posting of the notice to quit. The thirty-day period to cure any noncompliance set forth in this subsection (3) shall run concurrently with the sixty-day period to remove a mobile home from the premises as set forth in paragraph (c) of subsection (1) and Colorado Revised Statutes 2019 Page 76 of 707 Uncertified Printout subsection (2) of this section. Acceptance of rent by the landlord or management of a mobile home park during the thirty-day right to cure period set forth in section 38-12-203 (1)(c) shall not constitute a waiver of the landlord's right to terminate the tenancy for any noncompliance set forth in section 38-12-203 (1)(c). Source: L. 73: p. 641, § 1. C.R.S. 1963: § 58-2-2. L. 79: (1) amended, p. 1384, § 1, effective July 1. L. 81: IP(1)(a) R&RE, p. 1814, § 3, effective June 9. L. 87: (1)(c) and (1)(d) amended, p. 1311, § 3, effective May 8. L. 94: (1)(c) amended, p. 703, § 1, effective April 19. L. 96: (2) amended, p. 670, § 2, effective July 1. L. 99: (3) added, p. 65, § 1, effective August 4. L. 2000: (3) repealed, p. 148, § 2, effective July 1. L. 2010: Entire section amended, (SB 10-156), ch. 343, p. 1585, § 3, effective July 1. Cross references: For the form specified for notice to terminate a tenancy, see § 13-40107 (2). 38-12-202.5. Action for termination. (1) The action for termination shall be commenced in the manner described in section 13-40-110, C.R.S. The property description shall be deemed legally sufficient and within the meaning of section 13-40-110, C.R.S., if it states: (a) The name of the landlord or the mobile home park; (b) The mailing address of the property; (c) The location or space number upon which the mobile home is situate; and (d) The county in which the mobile home is situate. (2) Service of summons shall be as specified in section 13-40-112, C.R.S. Service by posting shall be deemed legally sufficient within the meaning of section 13-40-112, C.R.S., if the summons is affixed to the main entrance of the mobile home. (3) Jurisdiction of courts in cases of forcible entry, forcible detainer, or unlawful detainer shall be as specified in section 13-40-109, C.R.S. Trial on the issue of possession shall be timely as specified in section 13-40-114, C.R.S., with no delay allowed for the determination of other issues or claims which may be severed at the discretion of the trial court. (4) After commencement of the action and before judgment, any person not already a party to the action who is discovered to have a property interest in the mobile home shall be allowed to enter into a stipulation with the landlord and be bound thereby. Source: L. 79: Entire section added, p. 1385, § 2, effective July 1. 38-12-203. Reasons for termination. (1) A tenancy shall be terminated pursuant to this part 2 only for one or more of the following reasons: (a) Failure of the home owner to comply with local ordinances and state laws and regulations relating to mobile homes and mobile home lots; (b) Conduct of the home owner, on the mobile home park premises, which constitutes an annoyance to other home owners or interference with park management; (c) Failure of the home owner to comply with written rules and regulations of the mobile home park either established by the management in the rental agreement at the inception of the tenancy, amended subsequently thereto with the consent of the home owner, or amended subsequently thereto without the consent of the home owner on sixty days' written notice if the Colorado Revised Statutes 2019 Page 77 of 707 Uncertified Printout amended rules and regulations are reasonable; except that the home owner shall have thirty days from the date of service or posting of the notice to quit set forth in section 38-12-202 (3) to cure any noncompliance on the mobile home or mobile home lot before an action for termination may be commenced, except if local ordinances, state laws and regulations, park rules and regulations, or emergency, health, or safety situations require immediate compliance. If a home owner was in violation or noncompliance pursuant to this paragraph (c) and was given notice and a right to cure such noncompliance and within a twelve-month period from the date of service of the notice is in noncompliance of the same rule or regulation and is given notice of the second noncompliance, there shall be no right to cure the second noncompliance. Regulations applicable to recreational facilities may be amended at the reasonable discretion of the management. For purposes of this paragraph (c), when the mobile home is owned by a person other than the owner of the mobile home park, the mobile home is a separate unit of ownership, and regulations that are adopted subsequent to the unit location in the park without the consent of the home owner and that place restrictions or requirements on that separate unit are prima facie unreasonable. Nothing in this paragraph (c) shall prohibit a mobile home park owner from requiring compliance with current park unit regulations at the time of sale or transfer of the mobile home to a new owner. Transfer under this paragraph (c) shall not include transfer to a co-owner pursuant to death or divorce or to a new co-owner pursuant to marriage. (d) (I) Condemnation or change of use of the mobile home park. When the owner of a mobile home park is formally notified by a notice of intent to acquire pursuant to section 38-1121 (1) or other similar provision of law, or a complaint in a condemnation action from an appropriate governmental agency that the mobile home park, or any portion thereof, is to be acquired by the governmental agency or may be the subject of a condemnation proceeding, the landlord shall, within seventeen days, notify the home owners in writing of the terms of the notice of intent to acquire or complaint received by the landlord. (II) In those cases where the landlord desires to change the use of the mobile home park and where such change of use would result in eviction of inhabited mobile homes, the landlord shall first give the owner of each mobile home subject to such eviction a written notice of the landlord's intent to evict not less than six months prior to such change of use of the land, notice to be mailed to each home owner. (e) The making or causing to be made, with knowledge, of false or misleading statements on an application for tenancy; (f) Conduct of the home owner or any lessee of the home owner or any guest, agent, invitee, or associate of the home owner or lessee of the home owner, that: (I) Occurs on the mobile home park premises and unreasonably endangers the life of the landlord, any home owner or lessee of the mobile home park, any person living in the park, or any guest, agent, invitee, or associate of the home owner or lessee of the home owner; (II) Occurs on the mobile home park premises and constitutes willful, wanton, or malicious damage to or destruction of property of the landlord, any home owner or lessee of the mobile home park, any person living in the park, or any guest, agent, invitee, or associate of the home owner or lessee of the home owner; (III) Occurs on the mobile home park premises and constitutes a felony prohibited under article 3, 4, 6, 7, 9, 10, 12, or 18 of title 18, C.R.S.; or (IV) Is the basis for a pending action to declare the mobile home or any of its contents a class 1 public nuisance under section 16-13-303, C.R.S. Colorado Revised Statutes 2019 Page 78 of 707 Uncertified Printout (2) In an action pursuant to this part 2, the landlord shall have the burden of proving that the landlord complied with the relevant notice requirements and that the landlord provided the home owner with a statement of reasons for the termination. In addition to any other defenses a home owner may have, it shall be a defense that the landlord's allegations are false or that the reasons for termination are invalid. Source: L. 73: p. 642, § 1. C.R.S. 1963: § 58-2-3. L. 79: (1)(d) amended, p. 1386, § 3, effective July 1. L. 81: (1)(c) amended, p. 1814, § 4, effective June 9. L. 84: (1)(c) amended, p. 976, § 1, effective July 1. L. 87: (1)(a), (1)(b), (1)(c), (1)(d), and (2) amended, p. 1311, § 4, effective May 8. L. 94: (1)(f) added, p. 703, § 2, effective April 19. L. 96: IP(1), (1)(a), (1)(c), and (2) amended, p. 671, § 3, effective July 1. L. 2010: (1)(c) and (1)(d) amended, (SB 10-156), ch. 343, p. 1586, § 4, effective July 1. 38-12-204. Nonpayment of rent - notice required for rent increase. (1) Any tenancy or other estate at will or lease in a mobile home park may be terminated upon the landlord's written notice to the home owner requiring, in the alternative, payment of rent or the removal of the home owner's unit from the premises, within a period of not less than ten days after the date notice is served or posted, for failure to pay rent when due. (2) Rent shall not be increased without sixty days' written notice to the home owner. In addition to the amount and the effective date of the rent increase, such written notice shall include the name, address, and telephone number of the mobile home park management, if such management is a principal owner, or owner of the mobile home park and, if the owner is other than a natural person, the name, address, and telephone number of the owner's chief executive officer or managing partner; except that such ownership information need not be given if it was disclosed in the rental agreement made pursuant to section 38-12-213. Source: L. 73: p. 642, § 1. C.R.S. 1963: § 58-2-4. L. 77: Entire section amended, p. 1708, § 1, effective July 7. L. 85: Entire section amended, p. 1199, § 1, effective July 1. L. 87: Entire section amended, p. 1312, § 5, effective May 8. L. 2019: (1) amended, (HB 19-1309), ch. 281, p. 2629, § 6, effective May 23. Cross references: For the legislative declaration in HB 19-1309, see section 1 of chapter 281, Session Laws of Colorado 2019. 38-12-204.3. Notice required for termination. (1) Where the tenancy of a mobile home owner is being terminated under section 38-12-202 or section 38-12-204, the landlord or mobile home park owner shall provide such mobile home owner with written notice as provided for in subsection (2) of this section. Service of such notice shall occur at the same time and in the same manner as service of: (a) The notice to quit as provided in section 38-12-202 (1); or (b) The notice of nonpayment of rent as provided in section 38-12-204 (1). (2) The notice required under this section must be in at least ten-point type and must read as follows: IMPORTANT NOTICE TO THE HOME OWNER: Colorado Revised Statutes 2019 Page 79 of 707 Uncertified Printout This notice and the accompanying notice to quit/notice of nonpayment of rent are the first steps in the eviction process. Any dispute you may have regarding the grounds for eviction should be addressed with your landlord or the management of the mobile home park or in the courts if an eviction action is filed. Please be advised that the "Mobile Home Park Act", part 2 of article 12 of title 38, Colorado Revised Statutes, may provide you with legal protection: NOTICE TO QUIT: The landlord or management of a mobile home park must serve to a home owner a notice to quit in order to terminate a home owner's tenancy. The notice must be in writing and must contain certain information, including: M The grounds for the termination of the tenancy; M Whether or not the home owner has a right to cure under the "Mobile Home Park Act"; and M That the home owner has the option of mediation pursuant to section 38-12-216, Colorado Revised Statutes, of the "Mobile Home Park Act". NOTICE OF NONPAYMENT OF RENT: The landlord or management of a mobile home park must serve to a home owner a notice of nonpayment of rent in order to terminate a home owner's tenancy. The notice must be in writing and must require that the home owner either make payment of rent and any applicable fees due and owing or remove the owner's unit from the premises, within a period of not less than ten days after the date the notice is served or posted, for failure to pay rent when due. CURE PERIODS: If the home owner has a right to cure under the "Mobile Home Park Act", the landlord or management of a mobile home park cannot terminate a home owner's tenancy without first providing the home owner with a time period to cure the noncompliance. "Cure" refers to a home owner remedying, fixing, or otherwise correcting the situation or problem that caused the tenancy to be terminated pursuant to sections 38-12-202, 38-12-203, or 38-12-204, Colorado Revised Statutes. COMMENCEMENT OF LEGAL ACTION TO TERMINATE THE TENANCY: After the last day of the notice period, a legal action may be commenced to take possession of the space leased by the home owner. In order to evict a home owner, the landlord or management of the mobile home park must prove: M The landlord or management complied with the notice requirements of the "Mobile Home Park Act"; M The landlord or management provided the home owner with a statement of reasons for termination of the tenancy; and M The reasons for termination of the tenancy are true and valid under the "Mobile Home Park Act". Colorado Revised Statutes 2019 Page 80 of 707 Uncertified Printout A home owner must appear in court to defend against an eviction action. If the court rules in favor of the landlord or management of the mobile home park, the home owner has not less than thirty days from the time of the ruling to either remove or sell the mobile home and to vacate the premises. If the home owner wishes to extend such period beyond thirty days but not more than sixty days from the date of the ruling, the home owner shall prepay to the landlord an amount equal to a pro rata share of rent for each day following the expiration of the initial thirtyday period after the court's ruling that the mobile home owner will remain on the premises. All prepayments shall be paid no later than thirty days after the court ruling. This section does not preclude earlier removal by law enforcement officers of a mobile home or one or more mobile home owners or occupants from the mobile home park if a mobile home owner violates article 3, 4, 6, 7, 9, 10, 12, or 18 of title 18 or section 16-13-303. Source: L. 2000: Entire section added, p. 146, § 1, effective July 1. L. 2010: (2) amended, (SB 10-156), ch. 343, p. 1587, § 5, effective July 1. L. 2019: (2) amended, (HB 191309), ch. 281, p. 2629, § 7, effective May 23. Cross references: For the legislative declaration in HB 19-1309, see section 1 of chapter 281, Session Laws of Colorado 2019. 38-12-205. Termination prohibited. A tenancy or other estate at will or lease in a mobile home park may not be terminated solely for the purpose of making the home owner's space in the park available for another mobile home or trailer coach. Source: L. 73: p. 642, § 1. C.R.S. 1963: § 58-2-5. L. 87: Entire section amended, p. 1312, § 6, effective May 8. 38-12-206. Home owner meetings - assembly in common areas. Home owners shall have the right to meet and establish a homeowners' association. Meetings of home owners or the homeowners' association relating to mobile home living and affairs in their park common area, community hall, or recreation hall, if such a facility or similar facility exists, shall not be subject to prohibition by the park management if the common area or hall is reserved according to the park rules and such meetings are held at reasonable hours and when the facility is not otherwise in use; except that no such meetings shall be held in the streets or thoroughfares of the mobile home park. Source: L. 73: p. 642, § 1. C.R.S. 1963: § 58-2-6. L. 87: Entire section amended, p. 1313, § 7, effective May 8. L. 2005: Entire section amended, p. 109, § 1, effective August 8. L. 2010: Entire section amended, (SB 10-156), ch. 343, p. 1588, § 6, effective July 1. 38-12-207. Security deposits - legal process. (1) The owner of a mobile home park or his agents may charge a security deposit not greater than the amount of one month's rent or two month's rent for multiwide units. (2) Legal process, other than eviction, shall be used for the collection of utility charges and incidental service charges other than those provided by the rental agreement. Colorado Revised Statutes 2019 Page 81 of 707 Uncertified Printout Source: L. 73: p. 642, § 1. C.R.S. 1963: § 58-2-7. L. 81: (1) R&RE, p. 1815, § 5, effective June 9. 38-12-208. Remedies. (1) (a) Upon granting judgment for possession by the landlord in a forcible entry and detainer action, the court shall immediately issue a writ of restitution which the landlord shall take to the sheriff. In addition, if a money judgment has been requested in the complaint and if service was accomplished by personal service, the court shall determine and enter judgment for any amounts due to the landlord and shall calculate a pro rata daily rent amount that must be paid for the home to remain in the park. The court may rely upon information provided by the landlord or the landlord's attorney when determining the pro rata daily rent amount to be paid by the home owner. Upon receipt of the writ of restitution, the sheriff shall serve notice in accordance with the requirements of section 13-40-108, C.R.S., to the home owner of the court's decision and entry of judgment. (b) The notice of judgment must state that, at a specified time not less than thirty days from the entry of judgment, which may be extended to not more than sixty days after the entry of judgment if the home owner has prepaid no later than thirty days after the court ruling to the landlord an amount equal to a pro rata share of rent for each day following the expiration of the initial thirty-day period after the court's ruling that the mobile home owner will remain on the premises, and in instances where the mobile home must be removed from the mobile home lot, the sheriff shall return to serve a writ of restitution and superintend the peaceful and orderly removal of the mobile home under that order of court. The notice of judgment must also advise the home owner, in instances where the mobile home must be removed from the mobile home lot, to prepare the mobile home for removal from the premises by removing the skirting, disconnecting utilities, attaching tires, and otherwise making the mobile home safe and ready for highway travel. (c) Should the home owner fail to have the mobile home safe and ready for physical removal from the premises or should inclement weather or other unforeseen problems occur at the time specified in the notice of judgment, the landlord and the sheriff may, by written agreement, extend the time for the execution of the writ of restitution to allow time for the landlord to arrange to have the necessary work done or to permit the sheriff's execution of the writ of restitution at a time when weather or other conditions will make removal less hazardous to the mobile home. (d) If the mobile home is not removed from the landlord's land on behalf of the mobile home owner within the time permitted by the writ of restitution, then the landlord and the sheriff shall have the right to take possession of the mobile home for the purposes of removal and storage. The liability of the landlord and the sheriff in such event shall be limited to gross negligence or willful and wanton disregard of the property rights of the home owner. The responsibility to prevent freezing and to prevent wind and weather damage to the mobile home lies exclusively with those persons who have a property interest in the mobile home; except that the landlord may take appropriate action to prevent freezing, to prevent wind and weather damage, and to prevent damage caused by vandals. (e) Reasonable removal and storage charges and the costs associated with preventing damage caused by wind, weather, or vandals can be paid by any party in interest. Those charges will run with the mobile home, and whoever ultimately claims the mobile home will owe that sum to the person who paid it. Colorado Revised Statutes 2019 Page 82 of 707 Uncertified Printout (2) (a) Prior to the issuance of said writ of restitution, the court shall make a finding of fact based upon evidence or statements of counsel that there is or is not a security agreement on the mobile home being subjected to the writ of restitution. A written statement on the mobile home owner's application for tenancy with the landlord that there is no security agreement on the mobile home shall be prima facie evidence of the nonexistence of such security agreement. (b) In those cases where the court finds there is a security agreement on the mobile home subject to the writ of restitution and where that holder of the security agreement can be identified with reasonable certainty, then, upon receipt of the writ of restitution, the plaintiff shall promptly inform the holder of such security agreement as to the location of the mobile home, the name of the landlord who obtained the writ of restitution, and the time when the mobile home will be subject to removal by the sheriff and the landlord. (3) The remedies provided in part 1 of this article and article 40 of title 13, C.R.S., except as inconsistent with this part 2, shall be applicable to this part 2. Source: L. 73: p. 643, § 1. C.R.S. 1963: § 58-2-8. L. 79: Entire section R&RE, p. 1386, § 4, effective July 1. L. 87: (1)(a) to (1)(d) amended, p. 1313, § 8, effective May 8. L. 91: (1)(d) and (1)(e) amended, p. 1695, § 3, effective July 1. L. 2010: (1)(a) and (1)(b) amended, (SB 10156), ch. 343, p. 1589, § 7, effective July 1. L. 2019: (1)(b) amended, (HB 19-1309), ch. 281, p. 2630, § 8, effective May 23. Cross references: (1) For security deposits to secure the performance of a rental agreement and the wrongful withholding of such, see §§ 38-12-101 to 38-12-104; for the general provisions for forcible entry and detainer, see §§ 13-40-101 to 13-40-123. (2) For the legislative declaration in HB 19-1309, see section 1 of chapter 281, Session Laws of Colorado 2019. 38-12-209. Entry fees prohibited - entry fee defined - security deposit - court costs. (1) The owner of a mobile home park, or the agent of such owner, shall neither pay to nor receive from an owner or a seller of a mobile home an entry fee of any type as a condition of tenancy in a mobile home park. (2) As used in this section, "entry fee" means any fee paid to or received from an owner of a mobile home park or his agent except for: (a) Rent; (b) A security deposit against actual damages to the premises or to secure rental payments, which deposit shall not be greater than the amount allowed under this part 2. Subsequent to July 1, 1979, security deposits will remain the property of the home owner, and they shall be deposited into a separate trust account by the landlord to be administered by the landlord as a private trustee. For the purpose of preserving the corpus, the landlord will not commingle the trust funds with other money, but he is permitted to keep the interest and profits thereon as his compensation for administering the trust account. (c) Fees charged by any state, county, town, or city governmental agency; (d) Utilities; (e) Incidental reasonable charges for services actually performed by the mobile home park owner or his agent and agreed to in writing by the home owner. Colorado Revised Statutes 2019 Page 83 of 707 Uncertified Printout (3) The trial judge may award court costs and attorney fees in any court action brought pursuant to any provision of this part 2 to the prevailing party upon finding that the prevailing party undertook the court action and legal representation for a legally sufficient reason and not for a dilatory or unfounded cause. (4) The management or the resident may bring a civil action for violation of the rental agreement or any provision of this part 2 in the appropriate court of the county in which the park is located. Either party may recover actual damages or, the court may in its discretion award such equitable relief as it deems necessary, including the enjoining of either party from further violations. Source: L. 75: Entire section added, p. 1414, § 1, effective July 1. L. 79: (1), IP(2), and (2)(b) amended and (3) added, p. 1387, § 5, effective July 1. L. 81: (2)(b) amended and (4) added, p. 1815, §§ 6, 7, effective June 9. L. 87: (2)(b) and (2)(e) amended, p. 1313, § 9, effective May 8. 38-12-210. Closed parks prohibited. (1) The owner of a mobile home park or his agent shall not require as a condition of tenancy in a mobile home park that the prospective home owner has purchased a mobile home from any particular seller or from any one of a particular group of sellers. (2) Such owner or agent shall not give any special preference in renting to a prospective home owner who has purchased a mobile home from a particular seller. (3) A seller of mobile homes shall not require as a condition of sale that a purchaser locate in a particular mobile home park or in any one of a particular group of mobile home parks. (4) The owner or operator of a mobile home park shall treat all persons equally in renting or leasing available space. Notwithstanding the foregoing, nothing in this subsection (4) shall be construed to preclude owners and operators of mobile home parks from providing housing for older persons as defined in section 24-34-502 (7)(b), C.R.S. Source: L. 75: Entire section added, p. 1414, § 1, effective July 1. L. 81: (4) added, p. 1815, § 8, effective June 9. L. 87: (1) and (2) amended, p. 1314, § 10, effective May 8. L. 92: (4) amended, p. 1128, § 12, effective July 1. 38-12-211. Selling fees prohibited. The owner of a mobile home park or his agent shall not require payment of any type of selling fee or transfer fee by either a home owner in the park wishing to sell his mobile home to another party or by any party wishing to buy a mobile home from a home owner in the park as a condition of tenancy in a mobile home park for the prospective buyer. This section shall in no way prevent the owner of a mobile home park or his agent from applying the normal park standards to prospective buyers before granting or denying tenancy or from charging a reasonable selling fee or transfer fee for services actually performed and agreed to in writing by the home owner. Nothing in this section shall be construed to affect the rent charged. The owner of a mobile home shall have the right to place a "for sale" sign on or in his mobile home. The size, placement, and character of such signs shall be subject to reasonable rules and regulations of the mobile home park. Colorado Revised Statutes 2019 Page 84 of 707 Uncertified Printout Source: L. 75: Entire section added, p. 1415, § 1, effective July 1. L. 79: Entire section amended, p. 1388, § 6, effective July 1. L. 87: Entire section amended, p. 1314, § 11, effective May 8. 38-12-212. Certain types of landlord-seller agreements prohibited. A seller of mobile homes shall not pay or offer cash or other consideration to the owner of a mobile home park or his agent for the purpose of reserving spaces or otherwise inducing acceptance of one or more mobile homes in a mobile home park. Source: L. 75: Entire section added, p. 1415, § 1, effective July 1. 38-12-212.3. Responsibilities of landlord - acts prohibited. (1) (a) Except as otherwise provided in this section, a landlord shall be responsible for and pay the cost of the maintenance and repair of: (I) Any sewer lines, water lines, utility service lines, or related connections owned and provided by the landlord to the utility pedestal or pad space for a mobile home sited in the park; and (II) Any accessory buildings or structures, including, but not limited to, sheds and carports, owned by the landlord and provided for the use of the residents; and (III) The premises as defined in section 38-12-201.5 (5). (b) Any landlord who fails to maintain or repair the items delineated in paragraph (a) of this subsection (1) shall be responsible for and pay the cost of repairing any damage to a mobile home which results from such failure. The landlord shall ensure that all plumbing lines and connections owned and provided by the landlord to the utility pedestal or pad space for each mobile home in the mobile home park have plumbing that conformed to applicable law in effect at the time the plumbing was installed and that is maintained in good working order and running water and reasonable amounts of water at all times furnished to the utility pedestal or pad space and shall ensure that each pad space is connected to a sewage disposal system approved under applicable law; except that these conditions need not be met if: (I) A mobile home is individually metered and the tenant occupying the mobile home fails to pay for water services; (II) The local government in which the mobile home park is situated shuts off water service to a mobile home for any reason; (III) Weather conditions present a likelihood that water pipes will freeze, water pipes to a mobile home are wrapped in heated pipe tape, and the utility company has shut off electrical service to a mobile home for any reason or the heat tape malfunctions for any reason; or (IV) Running water is not available for any other reason outside the landlord's control. (c) The landlord shall give a minimum of two days' notice to a mobile home owner if the water service will be disrupted for planned maintenance. The landlord shall attempt to give a reasonable amount of notice to home owners if water service is to be disrupted for any other reasons unless conditions are such that providing the notice would result in property damage, health, or safety concerns or when conditions otherwise require emergency repair. (2) No landlord shall require a resident to assume the responsibilities outlined in subsection (1) of this section as a condition of tenancy in the mobile home park. (3) Nothing in this section shall be construed as: Colorado Revised Statutes 2019 Page 85 of 707 Uncertified Printout (a) Limiting the liability of a resident for the cost of repairing any damage caused by such resident to the landlord's property or other property located in the park; or (b) Restricting a landlord or his agent or a property manager from requiring a resident to comply with reasonable rules and regulations or terms of the rental agreement and any covenants binding upon the landlord or resident, including covenants running with the land which pertain to the cleanliness of such resident's lot and routine lawn and yard maintenance, exclusive of major landscaping projects. Source: L. 91: Entire section added, p. 1679, § 1, effective April 19. L. 2010: (1)(a)(I) and (1)(b) amended and (1)(c) added, (SB 10-156), ch. 343, p. 1589, § 8, effective July 1. 38-12-212.7. Landlord utilities account. (1) Whenever a landlord contracts with a utility for service to be provided to a resident, the usage of which is to be measured by a master meter or other composite measurement device, such landlord shall remit to the utility all moneys collected from each resident as payment for the resident's share of the charges for such utility service within forty-five days of the landlord's receipt of payment. (2) If a landlord fails to timely remit utility moneys collected from residents as required by subsection (1) of this section, such utility may, after written demand therefor is served upon the landlord, require the landlord to deposit an amount equal to the average daily charge for the usage of such utility service for the preceding twelve months multiplied by the sum of ninety. (3) Any utility which prevails in an action brought to enforce the provisions of this section shall be entitled to an award of its reasonable attorney fees and court costs. Source: L. 91: Entire section added, p. 1679, § 1, effective April 19. 38-12-213. Rental agreement - disclosure of terms in writing. (1) The terms and conditions of a tenancy must be adequately disclosed in writing in a rental agreement by the management to any prospective home owner prior to the rental or occupancy of a mobile home space or lot. Said disclosures shall include: (a) The term of the tenancy and the amount of rent therefor, subject to the requirements of subsection (4) of this section; (b) The day rental payment is due and payable; (c) The day when unpaid rent shall be considered in default; (d) The rules and regulations of the park then in effect; (e) The name and mailing address where a manager's decision can be appealed; (f) All charges to the home owner other than rent. (2) Said rental agreement shall be signed by both the management and the home owner, and each party shall receive a copy thereof. (3) The management and the home owner may include in a rental agreement terms and conditions not prohibited by this part 2. (4) The terms of tenancy shall be specified in a written rental agreement subject to the following conditions: (a) The standard rental agreement shall be for a month-to-month tenancy. (b) Upon written request by the home owner to the landlord, the landlord shall allow a rental agreement for a fixed tenancy of not less than one year if the home owner is current on all Colorado Revised Statutes 2019 Page 86 of 707 Uncertified Printout rent payments and is not in violation of the terms of the then-current rental agreement; except that an initial rental agreement for a fixed tenancy may be for less than one year in order to ensure conformity with a standard anniversary date. A landlord shall not evict or otherwise penalize a home owner for requesting a rental agreement for a fixed period. (c) A landlord may, in the landlord's discretion, allow a lease for a fixed period of longer than one year. In such circumstances, the requirements of paragraphs (a) and (b) of this subsection (4) shall not apply. Source: L. 81: Entire section added, p. 1815, § 9, effective June 9. L. 87: IP(1), (1)(f), (2), and (3) amended, p. 1314, § 12, effective May 8. L. 2005: (1)(a) amended and (4) added, p. 109, § 2, effective August 8. 38-12-214. Rules and regulations. (1) The management shall adopt written rules and regulations concerning all home owners' use and occupancy of the premises. Such rules and regulations are enforceable against a home owner only if: (a) Their purpose is to promote the convenience, safety, or welfare of the home owners, protect and preserve the premises from abusive use, or make a fair distribution of services and facilities held out for the home owners generally; (b) They are reasonably related to the purpose for which they are adopted; (c) They are not retaliatory or discriminatory in nature; (d) They are sufficiently explicit in prohibition, direction, or limitation of the home owner's conduct to fairly inform him of what he must or must not do to comply. Source: L. 81: Entire section added, p. 1816, § 9, effective June 9. L. 87: IP(1), (1)(a), and (1)(d) amended, p. 1315, § 13, effective May 8. L. 92: (1)(c) amended, p. 1128, § 13, effective July 1. 38-12-215. New developments and parks - rental of sites to dealers authorized. (1) The management of a new mobile home park or manufactured housing community development may require as a condition of leasing a mobile home site or manufactured home site for the first time such site is offered for lease that the prospective lessee has purchased a mobile home or manufactured home from a particular seller or from any one of a particular group of sellers. (2) A licensed mobile home dealer or a manufactured home dealer may, by contract with the management of a new mobile home park or manufactured housing community development, be granted the exclusive right to first-time rental of one or more mobile home sites or manufactured home sites. Source: L. 81: Entire section added, p. 1816, § 9, effective June 9. 38-12-216. Mediation, when permitted - court actions. (1) In any controversy between the management and a home owner of a mobile home park arising out of the provisions of this part 2, except for the nonpayment of rent or in cases in which the health or safety of other home owners is in imminent danger, such controversy may be submitted to mediation by either party prior to the filing of a forcible entry and detainer lawsuit upon agreement of the parties. Colorado Revised Statutes 2019 Page 87 of 707 Uncertified Printout (2) The agreement, if one is reached, shall be presented to the court as a stipulation. Either party to the mediation may terminate the mediation process at any time without prejudice. (3) If either party subsequently violates the stipulation, the other party may apply immediately to the court for relief. Source: L. 81: Entire section added, p. 1815, § 9, effective June 9; (2) amended, p. 2034, § 54, effective July 14. L. 87: (1) amended, p. 1315, § 14, effective May 8. 38-12-217. Notice of sale of mobile home park - notice of change in use. (1) (a) The mobile home park owner shall notify the owners of all mobile homes in the park and the municipality in which the park is situated or, if none, the county in which the park is situated of his or her intent to change the use of the land comprising the park or to sell the park pursuant to paragraph (b) or (c) of this subsection (1), as applicable. (b) If the mobile home park owner intends to sell the park, the notification shall be made only once for any particular contract to sell or trade and shall be by written notice mailed to each mobile home owner at the address shown on the rental agreement with the mobile home park owner at least ten days prior to the first scheduled closing for the sale or trade. (c) If the mobile home park owner intends to change the use of the land comprising the mobile home park, the mobile home park owner shall give written notice to each mobile home owner at least one hundred eighty days before the change in use will occur. The mobile home park owner shall mail the written notice to each mobile home owner at the address shown on the rental agreement with the mobile home park owner. (2) The provisions of paragraph (b) of subsection (1) of this section shall not apply to the sale of a mobile home park when such sale occurs between members of an immediate family, related business entities, members and managers of a limited liability company, shareholders, officers, and directors in a corporation, trustees and beneficiaries of a trust, or partners and limited liability partners in a partnership or limited liability partnership; except that such purchasers shall not change the use of the land comprising the mobile home park without complying with the notice provisions of this section. For purposes of this section, "immediate family" means persons related by blood or adoption. Source: L. 87: Entire section added, p. 1316, § 1, effective July 1. L. 2005: Entire section amended, p. 110, § 3, effective August 8. L. 2010: (1)(a) and (2) amended, (SB 10-156), ch. 343, p. 1590, § 9, effective July 1. 38-12-218. Mobile home owners - right to form a cooperative. One or more members of a homeowners' association may, at any time, form a cooperative for the purposes of offering to purchase or finance a mobile home park. A home owner shall be a member of the homeowners' association in order to participate in the cooperative, and participation in the cooperative shall be voluntary. Source: L. 2005: Entire section added, p. 110, § 4, effective August 8. 38-12-219. Home owners' and landlords' rights. (1) Every home owner and landlord shall have the right to the following: Colorado Revised Statutes 2019 Page 88 of 707 Uncertified Printout (a) Protection from abuse or disregard of state or local law by the landlord and home owners; (b) Peaceful enjoyment of the home owner's mobile home space, free from unreasonable, arbitrary, or capricious rules and enforcement thereof; and (c) Tenancy free from harassment or frivolous lawsuits by the landlord and homeowners. Source: L. 2005: Entire section added, p. 110, § 4, effective August 8. 38-12-220. Private civil right of action. Any home owner who owns a home in a mobile home park where the landlord has violated any provision of this article shall have a private civil right of action against the landlord. In any such action, the home owner shall be entitled to actual economic damages and reasonable attorney fees and costs if the home owner is successful in the action. Source: L. 2005: Entire section added, p. 110, § 4, effective August 8. L. 2010: Entire section amended, (SB 10-156), ch. 343, p. 1591, § 10, effective July 1. 38-12-221. Access by counties and municipalities. Notwithstanding any other provision of law, upon a finding that the utilities in a park create a significant health or safety danger to park residents, the landlord of a mobile home park shall grant county or municipal officers or employees access to the mobile home park for the purposes of investigating or conducting a study related to such danger. Source: L. 2010: Entire section added, (SB 10-156), ch. 343, p. 1591, § 11, effective July 1. PART 3 LOCAL CONTROL OF RENTS PROHIBITED 38-12-301. Control of rents by counties and municipalities prohibited - legislative declaration. (1) The general assembly finds and declares that the imposition of rent control on private residential housing units is a matter of statewide concern; therefore, no county or municipality may enact any ordinance or resolution that would control rent on either private residential property or a private residential housing unit. (2) For purposes of subsection (1) of this section, an ordinance or resolution that would control rent on either private residential property or a private residential housing unit shall not include: (a) A voluntary agreement between a county or municipality and a permit applicant or property owner to limit rent on the property or unit or that is otherwise designed to provide affordable housing stock; or (b) The placement on the title to the unit of a deed restriction that limits rent on the property or unit or that is otherwise designed to provide affordable housing stock pursuant to a voluntary agreement between a county or municipality and a permit applicant or property owner to place the deed restriction on the title. Colorado Revised Statutes 2019 Page 89 of 707 Uncertified Printout (3) An agreement authorized pursuant to subsection (2) of this section may specify how long either private residential property or a private residential housing unit is subject to its terms, whether a subsequent property owner is subject to the agreement, and remedies for early termination agreed to by both the permit applicant or property owner and the county or municipality. (4) Notwithstanding any other provision of this section, a county or municipality may not deny an application for a development permit as defined in section 29-20-103 (1), C.R.S., because an applicant for such a permit declines to enter into an agreement to limit rent on either private residential property or a private residential housing unit. (5) This section is not intended to impair the right of any state agency, county, or municipality to manage and control any property in which it has an interest through a housing authority or similar agency. Source: L. 81: Entire part added, p. 1818, § 1, effective June 23. L. 2010: Entire section amended, (HB 10-1017), ch. 208, p. 906, § 1, effective September 1. Editor's note: Section 2 of chapter 208, Session Laws of Colorado 2010, provides that the act amending this section applies to agreements entered into before, on, or after September 1, 2010. 38-12-302. Definitions. As used in this part 3, unless the context otherwise requires: (1) "Municipality" means a city or town and, in addition, means a city or town incorporated prior to July 3, 1877, whether or not reorganized, and any city, town, or city and county which has chosen to adopt a home rule charter pursuant to the provisions of article XX of the state constitution. Source: L. 81: Entire part added, p. 1818, § 1, effective June 23. PART 4 VICTIMS OF UNLAWFUL SEXUAL BEHAVIOR, STALKING, DOMESTIC VIOLENCE, AND DOMESTIC ABUSE 38-12-401. Definitions. As used in this part 4, unless the context otherwise requires: (1) "Application assistant" has the same meaning provided in section 24-30-2103 (4). (2) "Domestic abuse" has the same meaning as provided in section 13-14-101 (2). (3) "Domestic violence" has the same meaning as provided in section 18-6-800.3 (1). (4) "Medical professional" means a person licensed to practice medicine pursuant to article 240 or 255 of title 12. (5) "Stalking" means the criminal offense described in section 18-3-602. (6) "Unlawful sexual behavior" means the criminal offense described in section 16-22102 (9). Colorado Revised Statutes 2019 Page 90 of 707 Uncertified Printout Source: L. 2004: Entire part added, p. 528, § 1, effective August 4. L. 2017: Entire part amended, (HB 17-1035), ch. 276, p. 1513, § 1, effective June 1. L. 2019: (4) amended, (HB 191172), ch. 136, p. 1722, § 229, effective October 1. 38-12-402. Protection for victims of unlawful sexual behavior, stalking, or domestic violence. (1) A landlord shall not include in a residential rental agreement or lease agreement for housing a provision authorizing the landlord to terminate the agreement or to impose a penalty on a residential tenant for calls made by the residential tenant for peace officer assistance or other emergency assistance in response to a situation involving domestic violence, domestic abuse, unlawful sexual behavior, or stalking. A residential tenant may not waive the residential tenant's right to call for police or other emergency assistance. (2) (a) If a tenant to a residential rental agreement or lease agreement notifies the landlord in writing that he or she is the victim of unlawful sexual behavior, stalking, domestic violence, or domestic abuse and provides to the landlord evidence of unlawful sexual behavior, stalking, domestic violence, or domestic abuse victimization as described in subsection (2)(a.5) of this section, and the residential tenant seeks to vacate the premises due to fear of imminent danger for self or children because of the unlawful sexual behavior, stalking, domestic violence, or domestic abuse, then the residential tenant may terminate the residential rental agreement or lease agreement and vacate the premises without further obligation except as otherwise provided in subsection (2)(b) of this section. (a.5) For the purposes of subsection (2)(a) of this section: (I) To provide evidence that he or she is a victim of unlawful sexual behavior, domestic violence, or domestic abuse, a tenant may provide to his or her landlord a police report written within the prior sixty days, a valid protection order, or a written statement from a medical professional or application assistant who has examined or consulted with the victim, which written statement confirms such fact; and (II) To provide evidence that he or she is a victim of stalking, a tenant may provide to his or her landlord a police report written within the prior sixty days, a valid protection order, or a written statement from an application assistant who has consulted with the victim, which written statement confirms such fact. (b) If a tenant to a residential rental agreement or lease agreement terminates the residential rental agreement or lease agreement and vacates the premises pursuant to subsection (2)(a) of this section, then the tenant is responsible for one month's rent following vacation of the premises, which amount is due and payable to the landlord within ninety days after the tenant vacates the premises. The landlord is not obligated to refund the security deposit to the tenant until the tenant has paid the one month's rent pursuant to this section. Notwithstanding the provisions of section 38-12-103, the landlord and the tenant to a residential rental agreement or lease agreement may use any amounts owed to the other to offset costs for the one month's rent or the security deposit. The provisions of this subsection (2)(b) apply only if the landlord has experienced and documented damages equal to at least one month's rent as a result of the tenant's early termination of the agreement. (3) Nothing in this part 4 authorizes the termination of tenancy and eviction of a residential tenant solely because the residential tenant is the victim of unlawful sexual behavior, stalking, domestic violence, or domestic abuse. Colorado Revised Statutes 2019 Page 91 of 707 Uncertified Printout (4) (a) If a tenant to a residential rental agreement or lease agreement notifies the landlord that the tenant is a victim of unlawful sexual behavior, stalking, domestic violence, or domestic abuse, the landlord shall not disclose such fact to any person except with the consent of the victim or as the landlord may be required to do so by law. (b) If a tenant to a residential rental agreement or lease agreement terminates his or her lease pursuant to this section because he or she is a victim of unlawful sexual behavior, stalking, domestic violence, or domestic abuse, and the tenant provides the landlord with a new address, the landlord shall not disclose such address to any person except with the consent of the victim or as the landlord may be required to do so by law. Source: L. 2004: Entire part added, p. 528, § 1, effective August 4. L. 2005: Entire section amended, p. 402, § 3, effective July 1. L. 2017: Entire part amended, (HB 17-1035), ch. 276, p. 1513, § 1, effective June 1. PART 5 OBLIGATION TO MAINTAIN RESIDENTIAL PREMISES UNLAWFUL REMOVAL Law reviews: For article, "Colorado Implied Warranty of Habitability for Residential Tenancies: An Overview", see 38 Colo. Law. 59 (May 2009); for article, "Residential Tenancies, Lease to Eviction An Overview of Colorado Law", see 43 Colo. Law. 55 (May 2014); for article, "Warranty of Habitability, CRS §§ 38-12-501 et seq.", see 47 Colo. Law. 10 (Aug.-Sept. 2018). 38-12-501. Legislative declaration - matter of statewide concern - purposes and policies. (1) The general assembly hereby finds and declares that the provisions of this part 5 are a matter of statewide concern. Any local government ordinance, resolution, or other regulation that is in conflict with this part 5 shall be unenforceable. (2) The underlying purposes and policies of this part 5 are to: (a) Simplify, clarify, modernize, and revise the law governing the rental of dwelling units and the rights and obligations of landlords and tenants; (b) Encourage landlords and tenants to maintain and improve the quality of housing; and (c) Make uniform the law with respect to the subject of this part 5 throughout Colorado. Source: L. 2008: Entire part added, p. 1820, § 3, effective September 1. 38-12-502. Definitions. As used in this part 5 and part 8 of this article 12, unless the context otherwise requires: (1) "Appliance" means a refrigerator, range stove, or oven that is included within a residential premises by a landlord for the use of the tenant pursuant to the rental agreement or any other agreement between the landlord and the tenant. Nothing in this section requires a landlord to provide any appliance, and section 38-12-505 applies to appliances solely to the extent that appliances are part of a written agreement between the landlord and the tenant or are otherwise actually provided to a tenant by the landlord at the inception of the tenant's occupancy of the residential premises. Colorado Revised Statutes 2019 Page 92 of 707 Uncertified Printout (2) "Common areas" means the facilities and appurtenances to a residential premises, including the grounds, areas, and facilities held out for the use of tenants generally or whose use is promised to a tenant. (3) "Dwelling unit" means a structure or the part of a structure that is used as a home, residence, or sleeping place by a tenant. (4) "Electronic notice" means notice by electronic mail or an electronic portal or management communications system that is available to both a landlord and a tenant. (5) "Landlord" means the owner, manager, lessor, or sublessor of a residential premises. (6) "Mold" means microscopic organisms or fungi that can grow in damp conditions in the interior of a building. (7) "Rental agreement" means the agreement, written or oral, embodying the terms and conditions concerning the use and occupancy of a residential premises. (8) "Residential premises" means a dwelling unit, the structure of which the unit is a part, and the common areas. (9) "Tenant" means a person entitled under a rental agreement to occupy a dwelling unit to the exclusion of others. Source: L. 2008: Entire part added, p. 1820, § 3, effective September 1. L. 2018: IP amended, (SB 18-010), ch. 61, p. 608, § 1, effective August 8. L. 2019: Entire section amended, (HB 19-1170), ch. 229, p. 2305, § 2, effective August 2. Editor's note: Section 10 of chapter 229 (HB 19-1170), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after August 2, 2019. 38-12-503. Warranty of habitability. (1) In every rental agreement, the landlord is deemed to warrant that the residential premises is fit for human habitation. (2) Except as described in subsection (2.2) of this section, a landlord breaches the warranty of habitability set forth in subsection (1) of this section if: (a) A residential premises is: (I) Uninhabitable as described in section 38-12-505 or otherwise unfit for human habitation; or (II) In a condition that materially interferes with the tenant's life, health, or safety; and (b) The landlord has received reasonably complete written or electronic notice of the condition described in subsection (2)(a) of this section and failed to commence remedial action by employing reasonable efforts within the following period after receiving the notice: (I) Twenty-four hours, where the condition is as described in subsection (2)(a)(II) of this section; or (II) Ninety-six hours, where the condition is as described in subsection (2)(a)(I) of this section and the tenant has included with the notice permission to the landlord or to the landlord's authorized agent to enter the residential premises. (2.2) In a case in which a residential premises has mold that is associated with dampness, or there is any other condition causing the residential premises to be damp, which condition, if not remedied, would materially interfere with the life, health, or safety of a tenant, a landlord breaches the warranty of habitability if the landlord fails: Colorado Revised Statutes 2019 Page 93 of 707 Uncertified Printout (a) Within ninety-six hours after receiving reasonably complete written or electronic notice of the condition, to mitigate immediate risk from mold by installing a containment, stopping active sources of water to the mold, and installing a high-efficiency particulate air filtration device to reduce tenants' exposure to mold; (b) To maintain the containment described in subsection (2.2)(a) of this section until the actions described in subsection (2.2)(c) of this section are executed; and (c) Within a reasonable amount of time, to execute the following remedial actions to remove the health risk posed by mold: (I) Establish appropriate protections for workers and occupants; (II) Eliminate or limit moisture sources and dry all materials; (III) Decontaminate or remove damaged materials as appropriate; (IV) Evaluate whether the premises has been successfully remediated; and (V) Reassemble the premises to control sources of moisture and nutrients and thereby prevent or limit the recurrence of mold. (2.3) A tenant who gives a landlord electronic notice of a condition shall send such notice only to the e-mail address, phone number, or electronic portal specified by the landlord in the rental agreement for communications. In the absence of such a provision in the rental agreement, the tenant shall communicate with the landlord in a manner that the landlord has previously used to communicate with the tenant. The tenant shall retain sufficient proof of delivery of the electronic notice. (2.5) A landlord who receives from a tenant written or electronic notice of a condition described by subsection (2)(a) of this section shall respond to the tenant not more than twentyfour hours after receiving the notice. The response must indicate the landlord's intentions for remedying the condition, including an estimate of when the remediation will commence and when it will be completed. (3) When any condition described in subsection (2) of this section is caused by the misconduct of the tenant, a member of the tenant's household, a guest or invitee of the tenant, or a person under the tenant's direction or control, the condition does not constitute a breach of the warranty of habitability. It is not misconduct by a victim of domestic violence; domestic abuse; unlawful sexual behavior, as described in section 16-22-102 (9); or stalking under this subsection (3) if the condition is the result of domestic violence; domestic abuse; unlawful sexual behavior, as described in section 16-22-102 (9); or stalking and the landlord has been given written or electronic notice and evidence of domestic violence; domestic abuse; unlawful sexual behavior, as described in section 16-22-102 (9); or stalking, as described in section 38-12402 (2)(a). (4) (a) If the notice sent pursuant to subsection (2)(b) of this section concerns a condition that is described by subsection (2)(a)(II) of this section, the landlord, at the request of the tenant, shall provide the tenant: (I) A comparable dwelling unit, as selected by the landlord, at no expense or cost to the tenant; or (II) A hotel room, as selected by the landlord, at no expense or cost to the tenant. (b) A landlord is not required to pay for any other expenses of a tenant that arise after the relocation period. A tenant continues to be responsible for payment of rent under the rental agreement during the period of any temporary relocation and for the remainder of the term of the rental agreement following the remediation. Colorado Revised Statutes 2019 Page 94 of 707 Uncertified Printout (5) Except as set forth in this part 5, any agreement waiving or modifying the warranty of habitability shall be void as contrary to public policy. (6) Nothing in this part 5 shall: (a) Prevent a landlord from terminating a rental agreement as a result of a casualty or catastrophe to the dwelling unit without further liability to the landlord or tenant; or (b) Preclude a landlord from initiating an action for nonpayment of rent, breach of the rental agreement, violation of section 38-12-504, or as provided for under article 40 of title 13, C.R.S. Source: L. 2008: Entire part added, p. 1821, § 3, effective September 1. L. 2017: (3) amended, (HB 17-1035), ch. 276, p. 1515, § 2, effective June 1. L. 2019: (2), (3), and (4) amended and (2.2), (2.3), and (2.5) added, (HB 19-1170), ch. 229, p. 2306, § 3, effective August 2. Editor's note: Section 10 of chapter 229 (HB 19-1170), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after August 2, 2019. 38-12-504. Tenant's maintenance of premises. (1) In addition to any duties imposed upon a tenant by a rental agreement, every tenant of a residential premises has a duty to use that portion of the premises within the tenant's control in a reasonably clean and safe manner. A tenant fails to maintain the premises in a reasonably clean and safe manner when the tenant substantially fails to: (a) Comply with obligations imposed upon tenants by applicable provisions of building, health, and housing codes materially affecting health and safety; (b) Keep the dwelling unit reasonably clean, safe, and sanitary as permitted by the conditions of the unit; (c) Dispose of ashes, garbage, rubbish, and other waste from the dwelling unit in a clean, safe, sanitary, and legally compliant manner; (d) Use in a reasonable manner all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, elevators, and other facilities and appliances in the dwelling unit; (e) Conduct himself or herself and require other persons in the residential premises within the tenant's control to conduct themselves in a manner that does not disturb their neighbors' peaceful enjoyment of the neighbors' dwelling unit; or (f) Promptly notify the landlord if the residential premises is uninhabitable as defined in section 38-12-505 or if there is a condition that could result in the premises becoming uninhabitable if not remedied. (2) In addition to the duties set forth in subsection (1) of this section, a tenant shall not knowingly, intentionally, deliberately, or negligently destroy, deface, damage, impair, or remove any part of the residential premises or knowingly permit any person within his or her control to do so. (3) Nothing in this section shall be construed to authorize a modification of a landlord's obligations under the warranty of habitability. Source: L. 2008: Entire part added, p. 1822, § 3, effective September 1. Colorado Revised Statutes 2019 Page 95 of 707 Uncertified Printout 38-12-505. Uninhabitable residential premises. (1) A residential premises is deemed uninhabitable if: (a) There is mold that is associated with dampness, or there is any other condition causing the residential premises to be damp, which condition, if not remedied, would materially interfere with the health or safety of the tenant, excluding the presence of mold that is minor and found on surfaces that can accumulate moisture as part of their proper functioning and intended use; or (b) It substantially lacks any of the following characteristics: (I) Functioning appliances that conformed to applicable law at the time of installation and that are maintained in good working order; (II) Waterproofing and weather protection of roof and exterior walls maintained in good working order, including unbroken windows and doors; (III) Plumbing or gas facilities that conformed to applicable law in effect at the time of installation and that are maintained in good working order; (IV) Running water and reasonable amounts of hot water at all times furnished to appropriate fixtures and connected to a sewage disposal system approved under applicable law; (V) Functioning heating facilities that conformed to applicable law at the time of installation and that are maintained in good working order; (VI) Electrical lighting, with wiring and electrical equipment that conformed to applicable law at the time of installation, maintained in good working order; (VII) Common areas and areas under the control of the landlord that are kept reasonably clean, sanitary, and free from all accumulations of debris, filth, rubbish, and garbage and that have appropriate extermination in response to the infestation of rodents or vermin; (VIII) Appropriate extermination in response to the infestation of rodents or vermin throughout a residential premises; (IX) An adequate number of appropriate exterior receptacles for garbage and rubbish, in good repair; (X) Floors, stairways, and railings maintained in good repair; (XI) Locks on all exterior doors and locks or security devices on windows designed to be opened that are maintained in good working order; or (XII) Compliance with all applicable building, housing, and health codes, the violation of which would constitute a condition that materially interferes with the life, health, or safety of the tenant. (2) No deficiency in the common area shall render a residential premises uninhabitable as set forth in subsection (1) of this section, unless it materially and substantially limits the tenant's use of his or her dwelling unit. (3) Unless the rental agreement provides otherwise as permitted by section 38-12-506, before a residential premises is leased to a tenant, the residential premises must comply with the requirements set forth in section 38-12-503 (1) and (2)(a). Source: L. 2008: Entire part added, p. 1822, § 3, effective September 1. L. 2019: (1) and (3) amended, (HB 19-1170), ch. 229, p. 2308, § 4, effective August 2. Colorado Revised Statutes 2019 Page 96 of 707 Uncertified Printout Editor's note: Section 10 of chapter 229 (HB 19-1170), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after August 2, 2019. 38-12-506. Exception for certain single-family residences. (1) For a single-family residence premises for which a landlord does not receive a subsidy from any governmental source, a landlord and tenant may agree in writing that the tenant is to perform specific repairs, maintenance tasks, alterations, and remodeling necessary to comply with section 38-12-503, subject to the following requirements: (a) The agreement of the landlord and tenant is entered into in good faith and is set forth in a writing that is separate from the rental agreement, signed by the parties, and supported by adequate consideration; and (b) The tenant has the requisite skills to perform the work required to comply with section 38-12-503 (1). (2) To the extent that performance by a tenant relates to a characteristic set forth in section 38-12-505 (1), the tenant assumes the obligation for the characteristic, and the lack of the characteristic does not make the residential premises uninhabitable. Source: L. 2008: Entire part added, p. 1823, § 3, effective September 1. L. 2019: Entire section R&RE, (HB 19-1170), ch. 229, p. 2309, § 5, effective August 2. Editor's note: Section 10 of chapter 229 (HB 19-1170), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after August 2, 2019. 38-12-507. Breach of warranty of habitability - tenant's remedies. (1) If there is a breach of the warranty of habitability as set forth in section 38-12-503 (2): (a) Upon no less than ten and no more than thirty days written notice to the landlord specifying the condition alleged to breach the warranty of habitability and giving the landlord five business days from the receipt of the written notice to remedy the breach, a tenant may terminate the rental agreement by surrendering possession of the dwelling unit. If the breach is remediable by repairs, the payment of damages, or otherwise and the landlord adequately remedies the breach within five business days of receipt of the notice, the rental agreement shall not terminate by reason of the breach. (b) (I) A tenant may obtain injunctive relief for breach of the warranty of habitability in any county or district court of competent jurisdiction. In a proceeding for injunctive relief, the court shall determine actual damages for a breach of the warranty at the time the court orders the injunctive relief. A landlord is not subject to any court order for injunctive relief if: (A) The landlord tenders the actual damages to the court within two business days after the order; and (B) The proceeding for injunctive relief does not concern a condition described in section 38-12-503 (2)(a)(II) that has not been repaired or remedied. (II) Upon application by the tenant, the court shall immediately release to the tenant the damages paid by the landlord. If the tenant vacates the leased residential premises, the landlord Colorado Revised Statutes 2019 Page 97 of 707 Uncertified Printout shall not rent the residential premises again until the unit complies with the warranty of habitability set forth in section 38-12-503 (1). (c) In an action for possession based upon nonpayment of rent in which the tenant asserts a defense to possession based upon the landlord's alleged breach of the warranty of habitability, upon the filing of the tenant's answer the court shall order the tenant to pay into the registry of the court all or part of the rent accrued after due consideration of expenses already incurred by the tenant based upon the landlord's breach of the warranty of habitability. (d) Whether asserted as a claim or counterclaim, a tenant may recover damages directly arising from a breach of the warranty of habitability, which may include, but are not limited to, any reduction in the fair rental value of the dwelling unit, in any court of competent jurisdiction. (e) (I) Pursuant to this subsection (1)(e), the tenant may deduct from one or more rent payments the cost of repairing or remedying a condition that is the basis of a breach of the warranty of habitability described in section 38-12-503, if the tenant provides notice of the condition to the landlord as described in section 38-12-503 (2)(b) or (2.2) and the landlord fails to: (A) Commence remedial action by employing reasonable efforts within the applicable period described in section 38-12-503 (2)(b); or (B) Complete the actions described in section 38-12-503 (2.2). (II) At least ten days before deducting costs from a rent payment as described in this subsection (1)(e), a tenant shall provide the landlord with written or electronic notice of the tenant's intent to do so. The notice must specify the date of notification, the name of the landlord or property manager, the address of the rental property, the condition that requires a repair or remedy, the date upon which the tenant provided notice to the landlord of the condition that requires a repair or remedy, and a copy of at least one good-faith estimate of costs to repair or remedy the condition, which estimate has been prepared by a professional who is unrelated to the tenant, is trained to perform the work for which the estimate is being prepared, and complies with all licensing, certification, or registration requirements of this state that apply to the performance of the work. A tenant withholding rent over multiple payment periods is required to provide notice only once. The tenant shall retain a copy of the notice. (III) After a tenant provides a landlord notice of the tenant's intent to deduct costs pursuant to subsection (1)(e)(II) of this section, the landlord has four business days to obtain one or more good-faith estimates of such costs in addition to any estimate that the tenant included in the notice. The estimate must be prepared by a professional who is unrelated to the landlord, is trained to perform the work for which the estimate is being prepared, and complies with all licensing, certification, or registration requirements of this state that apply to the performance of the work. If the landlord prefers to repair or remedy the condition by hiring a professional other than a professional who prepared an estimate for the tenant, the landlord shall share the preferred professional's estimate with the tenant and shall commence work to repair or remedy the condition as soon as reasonably possible. (IV) If the landlord does not obtain any additional estimates within the four days prescribed by subsection (1)(e)(III) of this section, the tenant may proceed to deduct costs from one or more rent payments, based on the estimate acquired by the tenant, until the entire amount of the estimate is deducted. (V) A tenant who deducts costs pursuant to subsection (1)(e)(IV) of this section shall not repair or remedy the condition but shall hire a professional who is unrelated to the tenant, is Colorado Revised Statutes 2019 Page 98 of 707 Uncertified Printout trained to perform the work for which the estimate is being prepared, and complies with all licensing, certification, or registration requirements of this state that apply to the performance of the work. (VI) If a tenant hires a professional to repair or remedy a condition causing a breach of the warranty of habitability and deducts the estimated cost of such repair or remedy from one or more rent payments, as permitted by this subsection (1)(e), and the deducted estimated cost exceeds the actual cost incurred by the tenant, the tenant shall remit the excess cost to the landlord within ten business days. (VII) Notwithstanding any provision of this subsection (1)(e) to the contrary, a tenant shall not deduct costs from one or more rent payments if the condition that is the basis for the alleged breach of the warranty of habitability is caused by the misconduct of the tenant, a member of the tenant's household, a guest or invitee of the tenant, or a person under the tenant's direction or control; except that this subsection (1)(e)(VII) does not apply if: (A) The tenant is a victim of domestic violence; domestic abuse; unlawful sexual behavior, as described in section 16-22-102 (9); or stalking; (B) The condition is the result of domestic violence; domestic abuse; unlawful sexual behavior, as described in section 16-22-102 (9); or stalking; and (C) The landlord has been given written or electronic notice and evidence of domestic violence; domestic abuse; unlawful sexual behavior, as described in section 16-22-102 (9); or stalking. (VIII) Notwithstanding any provision of this subsection (1)(e) to the contrary, a tenant shall not deduct costs from one or more rent payments or make repairs to a residential premises if the residential premises was constructed, acquired, developed, rehabilitated, or maintained with: (A) Funding provided pursuant to section 8 or 9 of the federal "United States Housing Act of 1937", as amended, 42 U.S.C. secs. 1437f and 1437g; (B) Funding from the home investment partnerships program of the federal department of housing and urban development; or (C) Federal low-income housing tax credits, Colorado affordable housing tax credits, or funding provided under any federal, state, or local program that restricts maximum rents for persons of low or moderate income and that is currently subject to a use restriction that is monitored to ensure compliance by the federal government, the state government, a county government, or a municipal government, or by any political subdivision or designated agency thereof. (IX) A tenant who deducts costs from one or more rent payments in accordance with this subsection (1)(e) may seek additional remedies provided by this section. (X) If a court finds that a tenant has wrongfully deducted rent, the court shall award the landlord an amount of money equal to the amount wrongfully withheld. If the court finds that the tenant acted in bad faith, the court shall award the landlord possession of the residential premises and an amount of money equal to double the amount wrongfully withheld. (XI) A tenant who deducts rent as a result of a breach of the warranty of habitability, which breach is based on a condition described in section 38-12-505 (1)(b)(I), may, in lieu of repairing the malfunctioning appliance, replace the malfunctioning appliance so long as the replacement appliance is at least of substantially comparable quality and has substantially the same features as the original appliance. Colorado Revised Statutes 2019 Page 99 of 707 Uncertified Printout (2) If a rental agreement contains a provision for either party in an action related to the rental agreement to obtain attorney fees and costs, then the prevailing party in any action brought under this part 5 shall be entitled to recover reasonable attorney fees and costs. (3) Notwithstanding subsection (1) of this section: (a) If the same condition that substantially caused a breach of the warranty of habitability recurs within six months after the condition is repaired or remedied, other than a breach of section 38-12-505 (1)(b)(I), the tenant may terminate the rental agreement fourteen days after providing the landlord written or electronic notice of the tenant's intent to do so. The notice must include a description of the condition and the date of the termination of the rental agreement. (b) If the same condition that substantially caused a breach of the warranty of habitability recurs within six months after the condition is repaired or remedied, and the condition is a breach of section 38-12-505 (1)(b)(I), the tenant may terminate the rental agreement fourteen days after providing the landlord written or electronic notice of the tenant's intent to do so. The notice must include a description of the condition and the date of the termination of the rental agreement. However, if the landlord remedies the condition within fourteen days after receiving the notice, the tenant may not terminate the rental agreement. Source: L. 2008: Entire part added, p. 1824, § 3, effective September 1. L. 2019: IP(1) and (1)(b) amended and (1)(e) and (3) added, (HB 19-1170), ch. 229, p. 2310, § 6, effective August 2. Editor's note: Section 10 of chapter 229 (HB 19-1170), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after August 2, 2019. 38-12-508. Landlord's defenses to a claim of breach of warranty - limitations on claiming a breach. (1) It shall be a defense to a tenant's claim of breach of the warranty of habitability that the tenant's actions or inactions prevented the landlord from curing the condition underlying the breach of the warranty of habitability. (2) Only parties to the rental agreement or other adult residents listed on the rental agreement who are also lawfully residing in the dwelling unit may assert a claim for a breach of the warranty of habitability. (3) Repealed. (4) Except as provided in section 38-12-509 (2), a tenant may not assert a breach of the warranty of habitability as a defense to a landlord's action for possession based upon a nonmonetary violation of the rental agreement or for an action for possession based upon a notice to quit or vacate. (5) If the condition alleged to breach the warranty of habitability is the result of the action or inaction of a tenant in another dwelling unit or another third party not under the direction and control of the landlord and the landlord has taken reasonable, necessary, and timely steps to abate the condition, but is unable to abate the condition due to circumstances beyond the landlord's reasonable control, the tenant's only remedy shall be termination of the rental agreement consistent with section 38-12-507 (1)(a). Colorado Revised Statutes 2019 Page 100 of 707 Uncertified Printout (6) For public housing authorities and other housing providers receiving federal financial assistance directly from the federal government, no provision of this part 5 in direct conflict with any federal law or regulation shall be enforceable against such housing provider. Source: L. 2008: Entire part added, p. 1825, § 3, effective September 1. L. 2019: (3) repealed and (4) amended, (HB 19-1170), ch. 229, p. 2313, § 7, effective August 2. Editor's note: Section 10 of chapter 229 (HB 19-1170), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after August 2, 2019. 38-12-509. Prohibition on retaliation. (1) A landlord shall not retaliate against a tenant by increasing rent or decreasing services or by bringing or threatening to bring an action for possession in response to the tenant: (a) Having made a good faith complaint to the landlord or to a governmental agency alleging a condition described by section 38-12-505 (1) or any condition that materially interferes with the life, health, or safety of the tenant; or (b) Organizing or becoming a member of a tenants' association or similar organization. (2) If a landlord retaliates against a tenant in violation of subsection (1) of this section, the tenant may terminate the rental agreement and recover an amount not more than three months' periodic rent or three times the tenant's actual damages, whichever is greater, plus reasonable attorney fees and costs. (3) If a landlord elects to replace a malfunctioning appliance, but does so with a new appliance that is not identical to the appliance being replaced, there is a rebuttable presumption in favor of the landlord that the landlord's selection of a different appliance was not retaliatory so long as the replacement appliance provides substantially the same features as the original appliance. (4) (Deleted by amendment, L. 2019.) Source: L. 2008: Entire part added, p. 1826, § 3, effective September 1. L. 2019: Entire section amended, (HB 19-1170), ch. 229, p. 2313, § 8, effective August 2. Editor's note: Section 10 of chapter 229 (HB 19-1170), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after August 2, 2019. 38-12-510. Unlawful removal or exclusion. It shall be unlawful for a landlord to remove or exclude a tenant from a dwelling unit without resorting to court process, unless the removal or exclusion is consistent with the provisions of article 18.5 of title 25, C.R.S., and the rules promulgated by the state board of health for the cleanup of an illegal drug laboratory or is with the mutual consent of the landlord and tenant or unless the dwelling unit has been abandoned by the tenant as evidenced by the return of keys, the substantial removal of the tenant's personal property, notice by the tenant, or the extended absence of the tenant while rent remains unpaid, any of which would cause a reasonable person to believe the tenant had permanently surrendered possession of the dwelling unit. Such unlawful removal or exclusion Colorado Revised Statutes 2019 Page 101 of 707 Uncertified Printout includes the willful termination of utilities or the willful removal of doors, windows, or locks to the premises other than as required for repair or maintenance. If the landlord willfully and unlawfully removes the tenant from the premises or willfully and unlawfully causes the termination of heat, running water, hot water, electric, gas, or other essential services, the tenant may seek any remedy available under the law, including this part 5. Source: L. 2008: Entire part added, p. 1826, § 3, effective September 1. 38-12-511. Application. (1) Unless created to avoid its application, this part 5 shall not apply to any of the following arrangements: (a) Residence at a public or private institution, if such residence is incidental to detention or the provision of medical, geriatric, education, counseling, religious, or similar service; (b) Occupancy under a contract of sale of a dwelling unit or the property of which it is a part, if the occupant is the purchaser, seller, or a person who succeeds to his or her interest; (c) Occupancy by a member of a fraternal or social organization in the portion of a structure operated for the benefit of the organization; (d) Transient occupancy in a hotel or motel that lasts less than thirty days; (e) Occupancy by an employee or independent contractor whose right to occupancy is conditional upon performance of services for an employer or contractor; (f) Occupancy by an owner of a condominium unit or a holder of a proprietary lease in a cooperative; (g) Occupancy in a structure that is located within an unincorporated area of a county, does not receive water, heat, and sewer services from a public entity, and is rented for recreational purposes, such as a hunting cabin, yurt, hut, or other similar structure; (h) Occupancy under rental agreement covering a residential premises used by the occupant primarily for agricultural purposes; or (i) Any relationship between the owner of a mobile home park and the owner of a mobile home situated in the park. (2) Nothing in this section shall be construed to limit remedies available elsewhere in law for a tenant to seek to maintain safe and sanitary housing. Source: L. 2008: Entire part added, p. 1827, § 3, effective September 1. PART 6 ELECTRIC VEHICLE CHARGING SYSTEMS 38-12-601. Unreasonable restrictions on electric vehicle charging systems definitions. (1) Notwithstanding any provision in the lease to the contrary, and subject to subsection (2) of this section: (a) A tenant may install, at the tenant's expense for the tenant's own use, a level 1 or level 2 electric vehicle charging system on or in the leased premises; and (b) A landlord shall not assess or charge a tenant any fee for the placement or use of an electric vehicle charging system; except that: Colorado Revised Statutes 2019 Page 102 of 707 Uncertified Printout (I) The landlord may require reimbursement for the actual cost of electricity provided by the landlord that was used by the charging system or, alternatively, may charge a reasonable fee for access. If the charging system is part of a network for which a network fee is charged, the landlord's reimbursement may include the amount of the network fee. Nothing in this section requires a landlord to impose upon a tenant any fee or charge other than the rental payments specified in the lease. (II) The landlord may require reimbursement for the cost of the installation of the charging system, including any additions or upgrades to existing wiring directly attributable to the requirements of the charging system, if the landlord places or causes the electric vehicle charging system to be placed at the request of the tenant; and (III) If the tenant desires to place an electric vehicle charging system in an area accessible to other tenants, the landlord may assess or charge the tenant a reasonable fee to reserve a specific parking spot in which to install the charging system. (2) A landlord may require a tenant to comply with: (a) Bona fide safety requirements, consistent with an applicable building code or recognized safety standard, for the protection of persons and property; (b) A requirement that the charging system be registered with the landlord within thirty days after installation; or (c) Reasonable aesthetic provisions that govern the dimensions, placement, or external appearance of an electric vehicle charging system. (3) A tenant may place an electric vehicle charging system in an area accessible to other tenants if: (a) The charging system is in compliance with all applicable requirements adopted pursuant to subsection (2) of this section; and (b) The tenant agrees in writing to: (I) Comply with the landlord's design specifications for the installation of the charging system; (II) Engage the services of a duly licensed and registered electrical contractor familiar with the installation and code requirements of an electric vehicle charging system; and (III) (A) Provide, within fourteen days after receiving the landlord's consent for the installation, a certificate of insurance naming the landlord as an additional insured on the tenant's renters' insurance policy for any claim related to the installation, maintenance, or use of the system or, at the landlord's option, reimbursement to the landlord for the actual cost of any increased insurance premium amount attributable to the system, notwithstanding any provision to the contrary in the lease. (B) A certificate of insurance under sub-subparagraph (A) of this subparagraph (III) must be provided within fourteen days after the tenant receives the landlord's consent for the installation. Reimbursement for an increased insurance premium amount under subsubparagraph (A) of this subparagraph (III) must be provided within fourteen days after the tenant receives the landlord's invoice for the amount attributable to the system. (4) If the landlord consents to a tenant's installation of an electric vehicle charging system on property accessible to other tenants, including a parking space, carport, or garage stall, then, unless otherwise specified in a written agreement with the landlord: (a) The tenant, and each successive tenant with exclusive rights to the area where the charging system is installed, is responsible for any costs for damages to the charging system and Colorado Revised Statutes 2019 Page 103 of 707 Uncertified Printout to any other property of the landlord or of another tenant that arise or result from the installation, maintenance, repair, removal, or replacement of the charging system; (b) Each successive tenant with exclusive rights to the area where the charging system is installed shall assume responsibility for the repair, maintenance, removal, and replacement of the charging system until the system has been removed; (c) The tenant and each successive tenant with exclusive rights to the area where the system is installed shall at all times have and maintain an insurance policy covering the obligations of the tenant under this subsection (4) and shall name the landlord as an additional insured under the policy; and (d) The tenant and each successive tenant with exclusive rights to the area where the system is installed is responsible for removing the system if reasonably necessary or convenient for the repair, maintenance, or replacement of any property of the landlord, whether or not leased to another tenant. (5) A charging system installed at the tenant's cost is property of the tenant. Upon termination of the lease, if the charging system is removable, the tenant may either remove it or sell it to the landlord or another tenant for an agreed price. Nothing in this subsection (5) requires the landlord or another tenant to purchase the charging system. (6) As used in this section: (a) "Electric vehicle charging system" or "charging system" means a device that is used to provide electricity to a plug-in electric vehicle or plug-in hybrid vehicle, is designed to ensure that a safe connection has been made between the electric grid and the vehicle, and is able to communicate with the vehicle's control system so that electricity flows at an appropriate voltage and current level. An electric vehicle charging system may be wall-mounted or pedestal style and may provide multiple cords to connect with electric vehicles. An electric vehicle charging system must be certified by underwriters laboratories or an equivalent certification and must comply with the current version of article 625 of the national electrical code. (b) "Level 1" means a charging system that provides charging through a one-hundredtwenty volt AC plug with a cord connector that meets the SAE international J1772 standard or a successor standard. (c) "Level 2" means a charging system that provides charging through a two-hundredeight to two-hundred-forty volt AC plug with a cord connector that meets the SAE international J1772 standard or a successor standard. (7) This section applies only to residential rental properties. Source: L. 2013: Entire part added, (SB 13-126), ch. 165, p. 532, § 1, effective May 3. PART 7 NOTICE OF RENT INCREASE 38-12-701. Tenancies of one month or longer but less than six months. Notwithstanding any other provision of law, in a tenancy of one month or longer but less than six months where there is no written agreement between the landlord and tenant, a landlord may increase the rent only upon at least twenty-one days' notice to the tenant. Colorado Revised Statutes 2019 Page 104 of 707 Uncertified Printout Source: L. 2017: Entire part added, (SB 17-245), ch. 352, p. 1837, § 1, effective August 9. PART 8 REQUIRED DOCUMENTATION Cross references: For definitions applicable to this part 8, see § 38-12-502. 38-12-801. Written rental agreement - copy - tenant. (1) If there is a written rental agreement, the landlord shall provide the tenant with a copy of the agreement that is signed by the landlord and the tenant, no later than the seventh day after the tenant has signed the agreement. A landlord may provide the tenant with an electronic copy of the agreement, unless the tenant requests a paper copy, in which case the landlord shall provide the tenant with a paper copy. (2) A written rental agreement must include a statement indicating to the tenant the name and address of the person who is the landlord or the landlord's authorized agent. If the identity of a landlord or a landlord's authorized agent changes, the new landlord or authorized agent, not later than one business day after such change, shall: (a) Provide each tenant of the landlord written or electronic notice of the change; or (b) Post the identity of the new landlord or new authorized agent in a conspicuous location on the residential premises. Source: L. 2018: Entire part added, (SB 18-010), ch. 61, p. 608, § 2, effective August 8. L. 2019: Entire section amended, (HB 19-1170), ch. 229, p. 2314, § 9, effective August 2. Editor's note: Section 10 of chapter 229 (HB 19-1170), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after August 2, 2019. 38-12-802. Tenant payment - receipts. Upon receiving any payment made in person by a tenant with cash or a money order, a landlord shall contemporaneously provide the tenant with a receipt indicating the amount the tenant paid and the date of payment. If the landlord receives a payment that is not delivered in person by the tenant with cash or a money order, if requested by the tenant, the landlord shall, within seven days after the request, provide the tenant with a receipt indicating the amount the tenant paid, the recipient, and the date of payment, unless there is already an existing procedure that provides a tenant with a record of the payment received that indicates the amount the tenant paid, the recipient, and the date of payment. A landlord may provide the tenant with an electronic receipt, unless the tenant requests a paper receipt, in which case the landlord shall provide the tenant with a paper receipt. For purposes of this section, a receipt may be included as part of a billing statement. Source: L. 2018: Entire part added, (SB 18-010), ch. 61, p. 609, § 2, effective August 8. PART 9 Colorado Revised Statutes 2019 Page 105 of 707 Uncertified Printout RENTAL APPLICATION FAIRNESS ACT Editor's note: Section 2(2) of chapter 129 (HB 19-1106), Session Laws of Colorado 2019, provides that the act adding this part applies to rental applications submitted on or after August 2, 2019. 38-12-901. Short title. The short title of this part 9 is the "Rental Application Fairness Act". Source: L. 2019: Entire part added, (HB 19-1106), ch. 129, p. 581, § 1, effective August 2. 38-12-902. Definitions. As used in this part 9, unless the context otherwise requires: (1) "Dwelling unit" means a structure or the part of a structure that is used as a home, residence, or sleeping place. (2) "Landlord" means the owner, manager, lessor, or sublessor of a dwelling unit. (3) "Rental agreement" means any agreement, written or oral, between a landlord and a tenant embodying the terms and conditions concerning the use and occupancy of a dwelling unit. (4) "Rental application" means any information, written or oral, submitted to a landlord by a prospective tenant for the purpose of entering into a rental agreement. (5) "Rental application fee" means any sum of money, however denominated, that is charged or accepted by a landlord from a prospective tenant in connection with the prospective tenant's submission of a rental application or any nonrefundable fee that precedes the onset of tenancy. "Rental application fee" does not include a refundable security deposit or any rent that is paid before the onset of tenancy. (6) "Tenant" means a person entitled under a rental agreement to occupy a dwelling unit to the exclusion of others. Source: L. 2019: Entire part added, (HB 19-1106), ch. 129, p. 581, § 1, effective August 2. 38-12-903. Rental application fee - limitations. (1) A landlord shall not charge a prospective tenant a rental application fee unless the landlord uses the entire amount of the fee to cover the landlord's costs in processing the rental application. The landlord's costs may be based on: (a) The actual expense the landlord incurs in processing the rental application; or (b) The average expense the landlord incurs per prospective tenant in the course of processing multiple rental applications. (2) A landlord shall not charge a prospective tenant a rental application fee that is in a different amount than a rental application fee charged to another prospective tenant who applies to rent: (a) The same dwelling unit; or (b) If the landlord offers more than one dwelling unit for rent at the same time, any other dwelling unit offered by the landlord. Colorado Revised Statutes 2019 Page 106 of 707 Uncertified Printout (3) (a) A landlord shall provide to any prospective tenant who has paid a rental application fee either a disclosure of the landlord's anticipated expenses for which the fee will be used or an itemization of the landlord's actual expenses incurred. If a landlord charges an amount based on the average cost of processing the rental application, the landlord shall include information regarding how that average rental application fee is determined. (b) A landlord shall provide every prospective tenant with a receipt for any application fee received. The landlord may provide a prospective tenant an electronic receipt unless the prospective tenant requests a paper receipt, in which case the landlord shall provide the prospective tenant a paper receipt. (4) A landlord who receives a rental application fee from a prospective tenant and does not use the entire amount of the fee to cover the landlord's costs in processing the rental application shall remit to the prospective tenant the remaining amount of the fee. The landlord shall make a good-faith effort to remit such amount within twenty calendar days after processing the application. Source: L. 2019: Entire part added, (HB 19-1106), ch. 129, p. 582, § 1, effective August 2. 38-12-904. Consideration of rental applications - limitations - denial notice. (1) (a) If a landlord uses rental history or credit history as criteria in consideration of an application, the landlord shall not consider any rental history or credit history beyond seven years immediately preceding the date of the application. (b) If a landlord uses criminal history as a criterion in consideration of an application, the landlord shall not consider an arrest record of a prospective tenant from any time or any conviction of a prospective tenant that occurred more than five years before the date of the application; except that a landlord may consider any criminal conviction record or deferred judgment relating to: (I) The unlawful distribution, manufacturing, dispensing, or sale of a material, compound, mixture, or preparation that contains methamphetamine, as described in section 1818-405; (II) The unlawful possession of materials to make methamphetamine and amphetamine, as described in section 18-18-412.5; (III) Any offense that required the prospective tenant to register as a sex offender pursuant to section 16-22-103; or (IV) Any offense described in part 1 or part 6 of article 3 of title 18. (2) (a) If a landlord denies a rental application, the landlord shall provide the prospective tenant a written notice of the denial that states the reasons for the denial. If the specific screening criteria cannot be directly cited because of the use of a proprietary screening system, the landlord shall instead provide the prospective tenant with a copy of the report from the screening company that uses the proprietary screening system. A landlord may provide a prospective tenant an electronic version of the denial notice required in this subsection (2) unless the prospective tenant requests a paper denial notice, in which case the landlord shall provide the prospective tenant a paper denial notice. (b) A landlord who is required to provide a notice of denial to a prospective tenant as described in subsection (2)(a) of this section shall make a good-faith effort to do so not more Colorado Revised Statutes 2019 Page 107 of 707 Uncertified Printout than twenty calendar days after making the decision to deny the prospective tenant's rental application. Source: L. 2019: Entire part added, (HB 19-1106), ch. 129, p. 583, § 1, effective August 2. 38-12-905. Violations - liability - notice required - exception. (1) Except as described in subsection (3) of this section, a landlord who violates any provision of this part 9 is liable to the person who is charged a rental application fee for treble the amount of the rental application fee, plus court costs and reasonable attorney fees. (2) A person who intends to file an action pursuant to subsection (1) of this section shall notify the landlord of such intention not less than seven calendar days before filing the action. (3) A landlord who corrects or cures a violation of this part 9 not more than seven calendar days after receiving notice of the violation is not liable for damages as described in subsection (1) of this section. (4) A person who purposefully and in bad faith brings a meritless claim against a landlord under this part 9 is liable for the landlord's court costs and reasonable attorney fees in defending the claim. Source: L. 2019: Entire part added, (HB 19-1106), ch. 129, p. 583, § 1, effective August 2. PART 10 BED BUGS IN RESIDENTIAL PREMISES 38-12-1001. Definitions. [Editor's note: This section is effective January 1, 2020.] As used in this part 10, unless the context otherwise requires: (1) "Bed bug" means the common bed bug, or cimex lectularius. (2) "Bed bug detection team" means a scent detection canine team that holds a current, independent, third-party certification in accordance with the guidelines for minimum standards for canine bed bug detection team certification established by the National Pest Management Association or its successor organization. (3) "Certified operator" has the meaning set forth in section 35-10-103 (1). (4) "Commercial applicator" has the meaning set forth in section 35-10-103 (2). (5) "Contiguous dwelling unit" means a dwelling unit that is contiguous with another dwelling unit, both of which units are owned, managed, leased, or subleased by the same landlord. (6) "Dwelling unit" means a structure or the part of a structure that is used as a home, residence, or sleeping place by a tenant. (7) "Electronic notice" means notice by e-mail or an electronic portal or management communications system that is available to both a landlord and a tenant. (8) "Landlord" means the owner, manager, lessor, or sublessor of a residential premises. (9) "Pest control agent" means a certified operator, commercial applicator, qualified supervisor, or technician. Colorado Revised Statutes 2019 Page 108 of 707 Uncertified Printout (10) "Qualified inspector" means a bed bug detection team, local health department official, certified operator, commercial applicator, qualified supervisor, or technician who is retained by a landlord to conduct an inspection for bed bugs. (11) "Qualified supervisor" has the meaning set forth in section 35-10-103 (13). (12) "Technician" has the meaning set forth in section 35-10-103 (15). (13) "Tenant" means a person entitled under a rental agreement to occupy a dwelling unit to the exclusion of others. Source: L. 2019: Entire part added, (HB 19-1328), ch. 426, p. 3717, § 1, effective January 1, 2020. 38-12-1002. Bed bugs - notification to landlord - landlord duties. [Editor's note: This section is effective January 1, 2020.] (1) A tenant shall promptly notify the tenant's landlord via written or electronic notice when the tenant knows or reasonably suspects that the tenant's dwelling unit contains bed bugs. A tenant who gives a landlord electronic notice of a condition shall send such notice only to the e-mail address, telephone number, or electronic portal specified by the landlord in the rental agreement for communications. In the absence of such a provision in the rental agreement, the tenant shall communicate with the landlord in a manner that the landlord has previously used to communicate with the tenant. The tenant shall retain sufficient proof of the delivery of the electronic notice. (2) Not more than ninety-six hours after receiving notice of the presence of bed bugs or the possible presence of bed bugs, a landlord, after providing notice to the tenant as described in section 38-12-1004 (1): (a) Shall obtain an inspection of the dwelling unit by a qualified inspector; and (b) May enter the dwelling unit or any contiguous dwelling unit for the purpose of allowing the inspection as provided in section 38-12-1003. (3) If the inspection of a dwelling unit confirms the presence of bed bugs, the landlord shall also cause to be performed an inspection of all contiguous dwelling units as promptly as is reasonably practical. Source: L. 2019: Entire part added, (HB 19-1328), ch. 426, p. 3718, § 1, effective January 1, 2020. 38-12-1003. Bed bugs - inspections - treatments - costs. [Editor's note: This section is effective January 1, 2020.] (1) If a landlord obtains an inspection for bed bugs, the landlord must provide written notice to the tenant within two business days after the inspection indicating whether the dwelling unit contains bed bugs. (2) If a qualified inspector conducting an inspection determines that neither the dwelling unit nor any contiguous dwelling unit contains bed bugs, the notice provided by the landlord pursuant to subsection (1) of this section must inform the tenant that if the tenant remains concerned that the dwelling unit contains bed bugs, the tenant may contact the local health department to report such concerns. (3) If a qualified inspector conducting an inspection determines that a dwelling unit or any contiguous dwelling unit contains bed bugs in any stage of the life cycle, the qualified inspector shall provide a report of the determination to the landlord within twenty-four hours; Colorado Revised Statutes 2019 Page 109 of 707 Uncertified Printout except that, for any such determination that is made by a qualified inspector licensed by the commissioner of agriculture pursuant to article 10 of title 35, the qualified inspector shall provide the report in accordance with rules promulgated by the commissioner of agriculture pursuant to said article 10. Not later than five business days after the date of the inspection, the landlord shall commence reasonable measures, as determined by the qualified inspector, to effectively treat the bed bug presence, including retaining the services of a pest control agent to treat the dwelling unit and any contiguous dwelling unit. (4) Except as otherwise provided in this part 10, a landlord is responsible for all costs associated with an inspection for, and treatment of, bed bugs. Nothing in this section prohibits a tenant from contacting any agency at any time concerning the presence of bed bugs. Source: L. 2019: Entire part added, (HB 19-1328), ch. 426, p. 3719, § 1, effective January 1, 2020. 38-12-1004. Bed bugs - access to dwelling unit and personal belongings - notice costs. [Editor's note: This section is effective January 1, 2020.] (1) (a) If a landlord, qualified inspector, or pest control agent must enter a dwelling unit for the purpose of conducting an inspection for, or treating the presence of, bed bugs, the landlord shall provide the tenant reasonable written or electronic notice of such fact at least forty-eight hours before the landlord, qualified inspector, or pest control agent attempts to enter the dwelling unit; except that a rental agreement may provide for a different minimum time for the notice. A tenant who receives such notice shall not unreasonably deny the landlord, qualified inspector, or pest control agent access to the dwelling unit. (b) A tenant may waive the notice requirement described in subsection (1)(a) of this section. (2) A qualified inspector who is inspecting a dwelling unit for bed bugs may conduct an initial visual and manual inspection of a tenant's bedding and upholstered furniture. The qualified inspector may inspect items other than bedding and upholstered furniture when the qualified inspector determines that such an inspection is necessary and reasonable. (3) If a qualified inspector finds bed bugs in a dwelling unit or in any contiguous dwelling unit, the qualified inspector may have such additional access to the tenant's personal belongings as the qualified inspector determines is necessary and reasonable. (4) A tenant shall comply with reasonable measures to permit the inspection for, and the treatment of, the presence of bed bugs as determined by the qualified inspector, and the tenant is responsible for all costs associated with preparing the tenant's dwelling unit for inspection and treatment. A tenant who knowingly and unreasonably fails to comply with the inspection and treatment requirements described in this part 10 is liable for the cost of any bed bug treatments of the dwelling unit and contiguous dwelling units if the need for such treatments arises from the tenant's noncompliance. (5) If any furniture, clothing, equipment, or personal property belonging to a tenant is found to contain bed bugs, the qualified inspector shall advise the tenant that the furniture, clothing, equipment, or personal property should not be removed from the dwelling unit until a pest control agent determines that a bed bug treatment has been completed; except that, if the determination that any furniture, clothing, equipment, or personal property contains bed bugs is made by a qualified inspector licensed by the commissioner of agriculture pursuant to article 10 Colorado Revised Statutes 2019 Page 110 of 707 Uncertified Printout of title 35, the qualified inspector shall advise the tenant regarding the removal of the furniture, clothing, equipment, or personal property in accordance with rules promulgated by the commissioner of agriculture pursuant to said article 10. The tenant shall not dispose of personal property that was determined to contain bed bugs in any common area where such disposal may risk the infestation of other dwelling units. (6) (a) Nothing in this section requires a landlord to provide a tenant with alternative lodging or to pay to replace a tenant's personal property. (b) Nothing in this section preempts or restricts the application of any state or federal law concerning reasonable accommodations for persons with disabilities. Source: L. 2019: Entire part added, (HB 19-1328), ch. 426, p. 3719, § 1, effective January 1, 2020. 38-12-1005. Bed bugs - renting of dwelling units with bed bugs prohibited. [Editor's note: This section is effective January 1, 2020.] A landlord shall not offer for rent a dwelling unit that the landlord knows or reasonably suspects to contain bed bugs. Upon request from a prospective tenant, a landlord shall disclose to the prospective tenant whether, to the landlord's knowledge, the dwelling unit that the landlord is offering for rent contained bed bugs within the previous eight months. Upon request from a tenant or a prospective tenant, a landlord shall disclose the last date, if any, on which a dwelling unit being rented or offered for rent was inspected for, and found to be free of, bed bugs. Source: L. 2019: Entire part added, (HB 19-1328), ch. 426, p. 3720, § 1, effective January 1, 2020. 38-12-1006. Remedies - liability. [Editor's note: This section is effective January 1, 2020.] (1) A landlord who fails to comply with this part 10 is liable to the tenant for the tenant's actual damages. (2) A landlord may apply to a court of competent jurisdiction to obtain injunctive relief against a tenant who: (a) Refuses to provide reasonable access to a dwelling unit; or (b) Fails to comply with a reasonable request for inspection or treatment of a dwelling unit. (3) If a court finds that a tenant has unreasonably failed to comply with one or more requirements set forth in this part 10, the court may issue a temporary order to carry out this part 10, including: (a) Granting the landlord access to the dwelling unit for the purposes set forth in this part 10; (b) Granting the landlord the right to engage in bed bug inspection and treatment measures in the dwelling unit; and (c) Requiring the tenant to comply with specific bed bug inspection and treatment measures or assessing the tenant with costs and damages related to the tenant's noncompliance. (4) Any court order granting a landlord access to a dwelling unit must be served upon the tenant at least twenty-four hours before a landlord, qualified inspector, or pest control agent enters the dwelling unit. Colorado Revised Statutes 2019 Page 111 of 707 Uncertified Printout (5) (a) The remedies in this section are in addition to any other remedies available at law or in equity to any person. (b) This section does not limit or restrict the authority of any state or local housing or health code enforcement agency. Source: L. 2019: Entire part added, (HB 19-1328), ch. 426, p. 3721, § 1, effective January 1, 2020. 38-12-1007. Relationship to warranty of habitability. [Editor's note: This section is effective January 1, 2020.] Notwithstanding any provision of part 5 of this article 12 to the contrary, a landlord who complies with this part 10 is deemed to have satisfied the requirements of said part 5 with respect to matters concerning bed bugs. Source: L. 2019: Entire part added, (HB 19-1328), ch. 426, p. 3721, § 1, effective January 1, 2020. PART 11 MOBILE HOME PARK ACT DISPUTE RESOLUTION AND ENFORCEMENT PROGRAM Cross references: For the legislative declaration in HB 19-1309, see section 1 of chapter 281, Session Laws of Colorado 2019. 38-12-1101. Short title. The short title of this part 11 is the "Mobile Home Park Act Dispute Resolution and Enforcement Program". Source: L. 2019: Entire part added, (HB 19-1309), ch. 281, p. 2631, § 9, effective May 23. 38-12-1102. Legislative declaration. (1) The general assembly hereby finds and declares that: (a) There are factors unique to the relationship between mobile home owners and mobile home park landlords; (b) Once occupancy has commenced, a mobile home owner may be subject to violations of the "Mobile Home Park Act", part 2 of this article 12, without an adequate remedy at law because the difficulty and expense in moving and relocating a mobile home can affect the operation of market forces and lead to an inequality of the bargaining position of the parties; (c) Taking legal action against a mobile home park landlord for violations of the "Mobile Home Park Act" can be a costly and lengthy process, and many mobile home owners cannot afford to pursue a court process to vindicate statutory rights. Mobile home park landlords will also benefit by having access to a process that resolves disputes quickly and efficiently. (2) Therefore, it is the intent of the general assembly to provide an equitable as well as a less costly and more efficient way for mobile home owners and mobile home park landlords to Colorado Revised Statutes 2019 Page 112 of 707 Uncertified Printout resolve disputes, and to provide a mechanism for state authorities to quickly locate mobile home park landlords. Source: L. 2019: Entire part added, (HB 19-1309), ch. 281, p. 2631, § 9, effective May 23. 38-12-1103. Definitions. As used in this part 11, unless the context otherwise requires: (1) "Act" means the "Mobile Home Park Act" created in part 2 of this article 12. (2) "Complainant" means a landlord or home owner who has filed a complaint alleging a violation of the act or the complainant's agent, employee, or representative authorized to act on the complainant's behalf. (3) "Division" means the division of housing of the department of local affairs. (4) "Fund" means the mobile home park act dispute resolution and enforcement program fund created in section 38-12-1110. (5) "Penalty" means a monetary penalty levied against a complainant or respondent because of a violation of either the act or the program. (6) "Program" means the "Mobile Home Park Act Dispute Resolution and Enforcement Program" created in this part 11. (7) "Respondent" means a landlord or home owner, alleged to have committed a violation of the act, or the respondent's agent, employee, or representative authorized to act on the respondent's behalf. Source: L. 2019: Entire part added, (HB 19-1309), ch. 281, p. 2631, § 9, effective May 23. 38-12-1104. Dispute resolution program - creation - division of housing - duties report - rules. (1) The "Mobile Home Park Act Dispute Resolution and Enforcement Program" is hereby created. (2) The division shall: (a) Produce educational materials regarding the act and the program. These materials must be in both English and Spanish and must include a notice in a format that a landlord can reasonably post in a mobile home park. The notice must summarize home owner rights and responsibilities, provide information on how to file a complaint with the division, describe the protections afforded home owners under section 38-12-1105 (13), and provide a toll-free telephone number and website that landlords and home owners can use to seek additional information and communicate complaints specific to the program; (b) Distribute the educational materials described in subsection (2)(a) of this section to all known landlords and, as requested, to any complainants or respondents; (c) Ensure that landlords post the notice provided in subsection (2)(a) of this section in a clearly visible location in common areas of mobile home parks, including any community hall or recreation hall; (d) Enforce a penalty if the division discovers that the landlord has not appropriately posted the notice provided in subsection (2)(a) of this section in accordance with the requirements of subsection (2)(c) of this section; (e) Create and maintain a registration database of mobile home parks; Colorado Revised Statutes 2019 Page 113 of 707 Uncertified Printout (f) Create and maintain a database of mobile home parks that have had complaints filed against them under the program; (g) Provide an annual report to the transportation and local government committee of the house of representatives, or its successor committee, the local government committee of the senate, or its successor committee, and to the department of regulatory agencies, and publish that annual report on the division's official website; (h) Receive complaints and perform dispute resolution activities related to the program, including investigations, negotiations, determinations of violations, and imposition of penalties as described in section 38-12-1105; (i) Issue subpoenas; (j) Promulgate such rules as are necessary to implement the provisions of the program created in this part 11 and to clarify the requirements of the "Mobile Home Park Act", part 2 of this article 12. Such rules shall be promulgated in accordance with article 4 of title 24. (3) The program must be funded by the penalties and fees deposited in the fund and any other resources directed to the program. Source: L. 2019: Entire part added, (HB 19-1309), ch. 281, p. 2632, § 9, effective May 23. 38-12-1105. Dispute resolution program - complaint process. (1) Beginning May 1, 2020, any aggrieved party may file a complaint with the division alleging a violation of the act or this part 11. (2) After receiving a complaint under this part 11, the division shall investigate the alleged violations at the division's discretion and, if appropriate, facilitate negotiations between the complainant and the respondent. (3) (a) Complainants and respondents shall cooperate with the division in the course of an investigation by responding to subpoenas issued by the division. The subpoenas may seek access to papers or other documents and provide site access to the mobile home parks relevant to the investigation. Complainants and respondents must respond to the division's subpoenas within fourteen days of the division sending the subpoenas by certified mail. (b) Failure to cooperate with the division in the course of an investigation is a violation of this part 11. (4) (a) If, after an investigation, the division determines that the parties are unable to come to an agreement, the division shall make a written determination on whether a violation of the act has occurred. (b) If the division finds by a written determination that a violation of the act has occurred, the division shall deliver a written notice of violation by certified mail to both the complainant and the respondent. The notice of violation must specify the basis for the division's determination, the violation, the action required to cure the violation, the time within which that action must be taken, the penalties that will be imposed if that action is not taken within the specified time period, and the process for contesting the determination, required action, and penalties by means of an administrative hearing. (c) If the division finds by a written determination that a violation of the act has not occurred, the division shall deliver a written notice of nonviolation to both the complainant and the respondent by certified mail. The notice of nonviolation must include the basis for the Colorado Revised Statutes 2019 Page 114 of 707 Uncertified Printout division's determination and the process for contesting the determination included in the notice of nonviolation by means of an administrative hearing. (5) The respondent must comply with the requirements of a notice of violation from the division within seven days of the notice of violation becoming a final agency order under either subsection (7)(b) or (9)(b) of this section, except as required otherwise by the division, unless the respondent has submitted a timely request for an administrative hearing to contest the notice under subsection (7) of this section. If a respondent fails to comply with the requirements of a notice of violation within the required time period and the division has not received a timely request for an administrative hearing, the division may impose a penalty, up to a maximum of five thousand dollars per violation per day, for each day that a violation remains uncorrected. When determining the amount of the penalty to impose on a respondent, the division shall consider the severity and duration of the violation and the impact of the violation on other community residents. If the respondent shows, upon timely application to the division, that a good faith effort to comply with the requirements of the notice of violation has been made and that the respondent has not complied because of mitigating factors beyond the respondent's control, the division may delay or dismiss the imposition of a penalty. (6) The division may issue an order requiring the respondent to cease and desist from an unlawful practice. The division may also issue an order requiring the respondent to take actions that in the judgment of the division will carry out the purposes of this part 11. The actions may include, but are not limited to: (a) Refunds of rent increases, improper fees, and charges collected in violation of this part 11; (b) Filing documents that correct a statutory or rule violation; and (c) Taking action necessary to correct a statutory or rule violation. (7) (a) A complainant or respondent may request an administrative hearing before an administrative law judge to contest: (I) A notice of violation issued under subsection (4)(b) of this section or a notice of nonviolation issued under subsection (4)(c) of this section; (II) A penalty imposed under subsection (5) of this section; or (III) An order to cease and desist or an order to take actions under subsection (6) of this section. (b) If the complainant or respondent requests an administrative hearing pursuant to subsection (7)(a) of this section, the complainant or respondent must file the request within fifteen business days of receipt of a notice of violation, notice of nonviolation penalty, order, or action. If an administrative hearing is not requested within this time period, the notice of violation or notice of nonviolation constitutes a final agency order of the division and is not subject to review by any court or agency. (8) Hearings before the office of administrative courts must be conducted in accordance with article 4 of title 24, unless otherwise specified in this section. (9) (a) An appointed administrative law judge shall: (I) Hear and receive pertinent evidence and testimony; (II) Decide whether the evidence supports the division's finding by a preponderance of the evidence; and (III) Enter an appropriate order within thirty days after the completion of the hearing and immediately send copies of the order to the affected parties. Colorado Revised Statutes 2019 Page 115 of 707 Uncertified Printout (b) An order entered by an administrative law judge constitutes the final agency order of the division and is subject to judicial review pursuant to article 4 of title 24. An order entered by an administrative law judge may be appealed by the respondent and the division. (10) When the division imposes any penalty against a respondent landlord under this part 11, the respondent may not seek any recovery or reimbursement of the penalty from a complainant or from any other home owner. (11) All money collected from the imposition of any penalties imposed under this section other than any portion of the penalties required to be paid to a complainant must be deposited in the fund. (12) This section does not provide an exclusive remedy and does not limit the right of landlords or home owners to take legal action against another party as provided in the act or otherwise. Exhaustion of the administrative remedy provided in this section is not required before a landlord or home owner may bring a legal action. (13) A landlord may not take any retaliatory actions against a home owner for expressing an intention to file a complaint under this program or filing a complaint under this program. If the division determines that a landlord has retaliated against a home owner, the division may impose a fine of up to ten thousand dollars on the landlord. (14) Any penalty levied against a landlord under this part 9 shall be a lien against the landlord's mobile home park until the landlord pays the penalty. Source: L. 2019: Entire part added, (HB 19-1309), ch. 281, p. 2633, § 9, effective May 23. 38-12-1106. Registration of mobile home parks - process - fees. (1) The division shall register all mobile home parks on an individual basis and renew this registration annually. (2) The division shall send registration notifications and information packets to all known landlords of unregistered mobile home parks. These information packets must include: (a) Registration forms that satisfy all of the requirements of subsection (7) of this section; (b) Information about the different methods of registration; (c) Information about the single, statewide toll-free telephone number described in subsection (11) of this section; (d) Registration assessment information, including registration due dates and late fees, and the collections procedures, liens, and charging costs to home owners; and (e) A description of the protections afforded home owners under section 38-12-1105 (13). (3) The division shall annually send registration renewal notifications and information packets to all registered mobile home parks. (4) A landlord must file for registration or registration renewal by submitting to the division, either through the division's website, by mail, or in person, a registration or registration renewal form provided by the division and pay a registration fee as described in subsection (8) of this section. (5) A landlord must notify the division within thirty days of a change in the ownership of the landlord's mobile home park so that the division may update the mobile home park's registration information. Colorado Revised Statutes 2019 Page 116 of 707 Uncertified Printout (6) The division shall make available on the division's website electronic forms to register a mobile home park. These forms must be available in both English and Spanish and satisfy all of the requirements of subsection (7) of this section. (7) The registration forms provided by the division must require information necessary to assist the division in identifying and locating a mobile home park and other information that may be useful to the state including, at a minimum: (a) The name and address of the landlord; (b) The name and address of the mobile home park; (c) The number of lots within the mobile home park; (d) The number of mobile homes within the mobile home park; and (e) The address of each mobile home within the mobile home park. (8) For the 2020 calendar year, the division shall charge each landlord a twenty-four dollar registration fee for each mobile home independently owned on rented land within the landlord's mobile home park. Each year thereafter, the division shall establish by rule a fee that each landlord shall pay to the division as an annual registration fee for each mobile home independently owned on rented land within the landlord's mobile home park. A landlord may charge a home owner not more than half of the fee. The registration fee for each mobile home must be deposited into the fund. The division shall review the annual registration fee and, if necessary, adjust the annual registration fee through rule-making to ensure it continues to reasonably relate to the cost of administering the program. (9) Initial registrations of mobile home parks must be filed before February 1, 2020, and after that date within three months of the availability of mobile home lots for rent within a new park. A landlord who was sent an initial registration form and who missed the deadline for registration is subject to a delinquency fee of up to five thousand dollars. Landlords who receive registration renewal notifications and do not renew their registration by the expiration date as assigned by the division are also subject to a delinquency fee of up to five thousand dollars. (10) Registration is effective on the date determined by the division, and the division must issue a registration number to each registered mobile home park. The division must provide an expiration date, assigned by the division, to each registered mobile home park. (11) The division shall establish a system, including but not limited to a single, statewide toll-free telephone number, for responding directly to inquiries about the registration process. Source: L. 2019: Entire part added, (HB 19-1309), ch. 281, p. 2636, § 9, effective May 23. 38-12-1107. Registration information database. By February 1, 2020, the division shall create and maintain a database that includes all of the information collected under section 38-12-1106. Source: L. 2019: Entire part added, (HB 19-1309), ch. 281, p. 2638, § 9, effective May 23. 38-12-1108. Mobile home park complaint database. (1) By May 1, 2020, the division shall also create and maintain a database of mobile home parks that have had complaints filed against them under the program. Colorado Revised Statutes 2019 Page 117 of 707 Uncertified Printout (2) (a) (b) (c) (d) At a minimum, the database must include: The number of complaints received; The nature and extent of the complaints received; The violation of law complained of; and The outcome of each complaint. Source: L. 2019: Entire part added, (HB 19-1309), ch. 281, p. 2638, § 9, effective May 23. 38-12-1109. Mobile home park act dispute resolution and enforcement program annual report. The division shall prepare an annual report that contains, at a minimum, the number of constituents contacted by the division in regard to the program, the number of complaints received under the program received by the division, the number of complaints under the program resolved by the division, a brief summary of the nature of the complaints under the program received by the division, how the complaints under the program received by the division were resolved, the number of administrative appeals under the program, a summary of any relevant court decisions relating to the program, and a summary of results of an annual constituent survey conducted by an independent contractor. Source: L. 2019: Entire part added, (HB 19-1309), ch. 281, p. 2638, § 9, effective May 23. 38-12-1110. Mobile home park act dispute resolution and enforcement program fund. (1) There is hereby created in the state treasury the mobile home park act dispute resolution and enforcement program fund. All money collected pursuant to the program must be deposited in the fund. The fund shall be used by the division for the costs associated with administering the program. The money in the fund shall be continuously appropriated for administering the program. All interest and income derived from the investment and deposit of money in the fund shall be credited to the fund. Any unexpended and unencumbered money remaining in the fund at the end of a fiscal year shall remain in the fund and shall not be credited or transferred to the general fund or another fund. (2) The division, by rule or as otherwise provided by law, may reduce the amount of any fee imposed under this part 11 if necessary pursuant to section 24-75-402 (3) to reduce the uncommitted reserves of the fund to which all or any portion of the fee is credited. After the uncommitted reserves of the fund are sufficiently reduced, the division, by rule or as otherwise provided by law, may increase the amount of the fees imposed under this part 11 as provided in section 24-75-402 (4). Source: L. 2019: Entire part added, (HB 19-1309), ch. 281, p. 2638, § 9, effective May 23. UNCLAIMED PROPERTY ARTICLE 13 Colorado Revised Statutes 2019 Page 118 of 707 Uncertified Printout Unclaimed Property Act Editor's note: This version of this article 13 is effective until July 1, 2020. For the version in effect July 1, 2020, see page 216. Cross references: For provisions concerning unclaimed utility deposits, see article 8.5 of title 40. Law reviews: For article, "Colorado's Unclaimed Property Act: An Overview", see 17 Colo. Law. 57 (1988). 38-13-108.8. Property held by racetracks - inapplicability. 38-13-101. Short title. 38-13-108.9. Unclaimed gift cards - limited exception. 38-13-102. Definitions and use38-13-109.Contents of terms. of safe deposit box or other safekeeping 38-13-103. Property presumed repository. abandoned - general rule. 38-13-109.5. Funds owing under life insurance policies. 38-13-104. General rules for 38-13-109.7. taking Tax refunds. custody of intangible unclaimed property. 38-13-110.Report and payment or delivery of abandoned 38-13-105. Travelers' checks and money property. orders. 38-13-111.Electronic notice of abandoned property. 38-13-106. Checks, drafts, and 38-13-112.Payment similar or delivery of abandoned property to instruments issued or certified by banking theadministrator. and financial organizations. 38-13-112.5. Public employees' retirement 38-13-107. Bank deposits and funds in association - initial report of abandoned financial organizations. property - payment of moneys. (Repealed) 38-13-107.1. Deposits held by utilities. 38-13-113. Custody by state - holder 38-13-107.3. Refunds held by business relieved from liability - waiver of rights by associations. owner - reimbursement of holder paying 38-13-107.5. Stock and otherintangible claim - reclaiming for owner - defense of interests in business associations. holder - payment of safe deposit box or 38-13-107.9. P roperty of bus i nes s repository charges. associations held in the course of 38-13-114. Crediting of dividends, dissolution. interest, or increments to owner's account. 38-13-108. Property held by agents and 38-13-115. Public sale of abandoned fiduciaries. property. 38-13-108.2. Property held by courts and 38-13-116. Creation of funds - repeal. public agencies. (Repealed) 38-13-108.3. Funds held in lawyer 38-13-116.5. Unclaimed property trust COLTAF trust accounts - exemption. fund - creation - payments - interest 38-13-108.4. Gift certificates and credit appropriations - records - rules. memos. 38-13-116.7. Unclaimed property tourism 38-13-108.5. Moneys held by the public promotion trust fund - creation - payments employees' retirement association. interest - transfers. 38-13-108.6. Wages. 38-13-117. Filing of claim with 38-13-108.7. Gaming chips or tokens administrator. gaming award points - inapplicability. 38-13-117.3. Claims offset for child Colorado Revised Statutes 2019 Page 119 of 707 Uncertified Printout support. 38-13-126.I n t e r s t a t e agreements and 38-13-117.5. Claims offset for judicial cooperation - joint and reciprocal actions restitution, fines, fees, costs, or surcharges. with other states. 38-13-117.7. Claims offset for state tax 38-13-127. Interest and penalties. delinquencies. 38-13-128. Agreements to locate 38-13-118. Claim of another state to reported property - general provisions. recover property - procedure. 38-13-128.5. Agreements to locate 38-13-118.5. Claim of the state or reported property - overbids from governmental agency. foreclosure sales. 38-13-119. Action to establish claim. 38-13-129. Foreign transactions. 38-13-120. Election to take payment or 38-13-130. Effect of new provisions delivery. clarification of application. 38-13-121. Destruction or disposition of 38-13-131. Rules. property having insubstantial commercial 38-13-132. Uniformity of application and value - immunity from liability. construction. 38-13-122. Periods of limitation. 38-13-133. Applicability - exclusions. 38-13-123. Requests for reports and (Repealed) examination of records. 38-13-134. Application of article to other 38-13-124. Retention of records. sections. 38-13-125. Enforcement. 38-13-101. Short title. [Editor's note: This section is effective until July 1, 2020.] This article shall be known and may be cited as the "Unclaimed Property Act". Source: L. 87: Entire article added, p. 1317, § 1, effective July 1. 38-13-102. Definitions and use of terms. [Editor's note: This section is effective until July 1, 2020.] As used in this article 13, unless the context otherwise requires: (1) "Administrator" means the state treasurer. (2) "Apparent owner" means the person whose name appears on the records of the holder as the person entitled to property held, issued, or owing by the holder. (2.5) "Attorney general" means the chief legal officer of this state. (3) "Banking organization" means a bank, trust company, savings bank, safe deposit company, or private banker or any organization defined by other law as a bank or banking organization. (3.5) "Business association" means a nonpublic corporation, notwithstanding the provisions of section 7-114-401, C.R.S., joint stock company, investment company, business trust, partnership, or association for business purposes of two or more individuals, whether or not for profit, including a banking organization, financial organization, insurance company, or utility. Colorado Revised Statutes 2019 Page 120 of 707 Uncertified Printout (4) "Domicile" means the state of incorporation of a corporation and the state of the principal place of business of an unincorporated person. (5) "Financial organization" means a savings and loan association, cooperative bank, building and loan association, or credit union. (5.3) "Gaming award points" means any marketing or promotional coupons, certificates, player award or other cards, points, or other representatives of value that: (a) A licensed gaming establishment, in connection with its promotional activities, issues to a person for visiting the establishment, for using the services of the establishment, or for gambling at the establishment; and (b) May be redeemed at a licensed gaming establishment for cash or any other representative of value, food, products, goods, or services. (5.5) "Gaming chip or token" means a gaming chip, token, encoded credit certificate, or other representative of value that is issued and sold by a licensed gaming establishment for use in gaming, other than a card or similar device issued and sold by a licensed gaming establishment that is clearly identifiable on its face or encoding as being owned by a specific and designated person. (5.7) (a) "Gift card" means a prefunded tangible or electronic record of a specific monetary value evidencing a business association's agreement to provide goods, services, credit, money, or anything of value. (b) "Gift card" includes, but is not limited to, a tangible card; electronic card; storedvalue card; or certificate or similar instrument, card, or tangible record, all of which contain a microprocessor chip, magnetic chip, or other means for the storage of information and for which the value is decremented upon each use. (c) "Gift card" does not include a prefunded tangible or electronic record issued by, or on behalf of, any government agency; a gift certificate that is issued only on paper; a prepaid telecommunications or technology card; a card or certificate issued to a consumer pursuant to an awards, loyalty, or promotional program for which no money or other item of monetary value was exchanged; a card issued for wages or other payroll purposes; a card used for rebates or refunds; or a card that is donated or sold below face value at a volume discount to an employer or charitable organization for fundraising purposes. (6) "Holder" means: (a) A person, wherever organized or domiciled, which is: (I) In possession of property belonging to another; (II) A trustee; or (III) Indebted to a person on an obligation; (b) The public employees' retirement association. (6.5) "Insurance company" means an association, corporation, or fraternal or mutual benefit organization, whether or not for profit, which is engaged in providing insurance coverage, including accident, burial, casualty, credit life, contract performance, dental, fidelity, fire, health, hospitalization, illness, life including endowments and annuities, malpractice, marine, mortgage, surety, or wage protection insurance. Colorado Revised Statutes 2019 Page 121 of 707 Uncertified Printout (7) (a) "Intangible property" includes: (I) Moneys, checks, drafts, deposits, interest, dividends, and income; (II) Credit balances, customer overpayments, gift certificates, refunds, credit memos, and unidentified remittances; (III) Stocks and other intangible ownership interests in business associations; (IV) Moneys deposited to redeem stocks, bonds, coupons, and other securities or to make distributions; (IV.5) Security deposits, unpaid wages, and unused airline tickets; (V) Amounts distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit sharing, employee savings, supplemental unemployment insurance, or similar benefits; (VI) Amounts due and payable under the terms of insurance policies; (VII) On and after October 1, 2002, any amount due and payable as a refund of Colorado income tax. (VIII) Repealed. (b) "Intangible property" does not include unclaimed capital credit payments held by cooperative electric associations and telephone cooperatives, gaming chips or tokens, or gaming award points. (7.5) "Item" means: (a) In regard to intangible property, the total of all accounts, credit balances, deposits, or other forms of intangible property held under the name of any one apparent owner; except that, if the same apparent owner owns intangible property of different types or classes that cannot practicably be handled or accounted for at the same time or in the same way, each such type or class may be considered a separate item; (b) In regard to tangible personal property, the total of all such property held under the name of any one apparent owner. (8) "Last-known address" means a description of the location of the apparent owner sufficient for the purpose of the delivery of mail. (8.1) "Lawyer COLTAF trust account" means a Colorado lawyer trust account foundation trust account in which a lawyer, in accordance with the lawyer's professional obligations, holds funds of clients or third persons that are nominal in amount or that are expected to be held for a short period. (8.3) "Licensed gaming establishment" shall have the same meaning as set forth in section 44-30-103 (18). (8.5) "Life insurance company" means any insurance company which is engaged in providing life or endowment insurance policies or annuity contracts. (9) "Owner" means a depositor in the case of a deposit, a beneficiary in case of a trust other than a deposit in trust, a creditor, claimant, or payee in the case of other intangible property, or a person having a legal or equitable interest in property subject to this article or his legal representative. Colorado Revised Statutes 2019 Page 122 of 707 Uncertified Printout (10) "Person" means an individual, business association, state or other government, governmental subdivision or agency, public corporation, public authority, estate, trust, two or more persons having a joint or common interest, or any other legal or commercial entity. (10.3) "State" means any state, district, commonwealth, territory, insular possession, or other area subject to the legislative authority of the United States. (10.7) "Utility" means a person who owns or operates for public use any plant, equipment, property, franchise, or license for the transmission of communications or the production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, or gas. (11) "Verify" means the signing of an instrument, which signing constitutes the affirmation or acknowledgment of the person signing the instrument, under penalties of perjury, that the facts stated in the instrument are true and which signing is made before a person who is a notary public or who is authorized by the law of the place of execution to take acknowledgments or to administer oaths. Source: L. 87: Entire article added, p. 1317, § 1, effective July 1; (7)(a)(I) and (7)(b) amended, p. 1335, § 6, effective July 1. L. 90: IP(6) amended and (6.5), (7)(a)(VI), and (8.5) added, p. 1632, §§ 1, 2, effective April 27. L. 92: (6) amended, p. 2108, § 3, effective March 4; (2.5), (3.5), (7)(a)(IV.5), (10.3), and (10.7) added and IP(6) and (7)(b) amended, p. 2115, § 2, effective July 1. L. 95: (7.5) added, p. 522, § 2, effective May 16. L. 2001: (7)(a)(VII) added, p. 618, § 1, effective August 8. L. 2004: (5.3), (5.5), and (8.3) added and (7)(b) amended, p.1876, § 1, effective August 4; (7)(a)(VIII) added, p. 314, § 1, effective August 4. L. 2010: (7)(a)(VIII) repealed, (SB 10-212), ch. 412, p. 2032, § 1, effective July 1. L. 2013: (5.7) added, (HB 131102), ch. 44, p. 120, § 1, effective March 15; (3) amended, (SB 13-154), ch. 282, p. 1489, § 72, effective July 1. L. 2015: (8.1) added, (HB 15-1371), ch. 246, p. 905, § 1, effective May 29. L. 2018: IP and (8.3) amended, (SB 18-034), ch. 14, p. 249, § 44, effective October 1. Editor's note: The amendment to subsection (6) by House Bill 92-1092 was harmonized with the amendment to the introductory portion to subsection (6) by House Bill 92-1152. 38-13-103. Property presumed abandoned - general rule. [Editor's note: This section is effective until July 1, 2020.] (1) Except as otherwise provided by this article, all intangible property, including any income or increment derived therefrom, less any lawful charges, that is held, issued, or owing in the ordinary course of a holder's business and has remained unclaimed by the owner for more than five years after it became payable or distributable is presumed abandoned. (2) Property is payable or distributable for the purpose of this article notwithstanding the owner's failure to make demand or to present any instrument or document required to receive payment. Source: L. 87: Entire article added, p. 1318, § 1, effective July 1. Colorado Revised Statutes 2019 Page 123 of 707 Uncertified Printout 38-13-104. General rules for taking custody of intangible unclaimed property. [Editor's note: This section is effective until July 1, 2020.] (1) Unless otherwise provided in this article or by other statute or local law, intangible property is subject to the custody of this state as unclaimed property if the conditions raising a presumption of abandonment under section 38-13-103 or sections 38-13-105 to 38-13-109.7 are satisfied and: (a) The last-known address, as shown on records of the holder, of the apparent owner is in this state; (b) The records of the holder do not reflect the identity of the person entitled to the property and it is established that the last-known address of the person entitled to the property is in this state; (c) The records of the holder do not reflect the last-known address of the apparent owner and it is established that: (I) The last-known address of the person entitled to the property is in this state; or (II) The holder is a domiciliary of this state and has not previously paid or delivered the property to the state of the last-known address of the apparent owner or other person entitled to the property; (d) The last-known address, as shown on the records of the holder, of the apparent owner is in a state that does not provide by law for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property and the holder is a domiciliary of this state; (e) The last-known address, as shown on the records of the holder, of the apparent owner is in a foreign nation and the holder is a domiciliary of this state; or (f) The transaction out of which the property arose occurred in this state and: (I) (A) The last-known address of the apparent owner or other person entitled to the property is unknown; or (B) The last-known address of the apparent owner or other person entitled to the property is in a state that does not provide by law for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property; and (II) The holder is a domiciliary of a state that does not provide by law for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property. Source: L. 87: Entire article added, p. 1319, § 1, effective July 1. L. 90: IP(1) amended, p. 1633, § 3, effective April 27. L. 92: IP(1) amended, p. 2116, § 3, effective July 1. L. 2001: IP(1) amended, p. 618, § 2, effective August 8. 38-13-105. Travelers' checks and money orders. [Editor's note: This section is effective until July 1, 2020.] (1) (a) Subject to subsection (3) of this section, any sum payable on a money order or similar written instrument, other than a third-party bank check or traveler's check, that has been outstanding for more than seven years after its issuance is presumed abandoned unless the owner, within seven years, has communicated in writing with the issuer Colorado Revised Statutes 2019 Page 124 of 707 Uncertified Printout concerning it or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the issuer. (b) Subject to subsection (3) of this section, any sum payable on a traveler's check that has been outstanding for more than fifteen years after its issuance is presumed abandoned unless the owner, within fifteen years, has communicated in writing with the issuer concerning it or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the issuer. (2) On or after July 1, 1987, a holder may not deduct from the amount of a traveler's check or money order any service fee or other charge imposed solely by reason of the failure to present the instrument for payment unless there is a valid and enforceable written contract between the issuer and the owner of the instrument pursuant to which the issuer may impose a charge and the issuer regularly imposes such charges and does not regularly reverse or otherwise cancel them. (3) No sum payable on a traveler's check or money order or similar written instrument, other than a third-party bank check, described in subsection (1) of this section may be subjected to the custody of this state as unclaimed property unless: (a) The records of the issuer show that the traveler's check, money order, or similar written instrument was purchased in this state; (b) The issuer has its principal place of business in this state and the records of the issuer do not show the state in which the traveler's check, money order, or similar written instrument was purchased; or (c) The issuer has its principal place of business in this state, the records of the issuer show the state in which the traveler's check, money order, or similar written instrument was purchased, and the laws of the state of purchase do not provide for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property. (4) Notwithstanding any other provision of this article, subsection (3) of this section applies to sums payable on travelers' checks, money orders, and similar written instruments presumed abandoned on or after February 1, 1965, except to the extent that those sums have been paid over to a state prior to January 1, 1974. Source: L. 87: Entire article added, p. 1319, § 1, effective July 1; entire section R&RE, p. 1333, § 1, effective July 1. Editor's note: Section 7 of chapter 275, Session Laws of Colorado 1987, provided that the act set out in that chapter amending this section was effective July 1, 1987, but the governor did not approve the act until July 10, 1987. 38-13-106. Checks, drafts, and similar instruments issued or certified by banking and financial organizations. [Editor's note: This section is effective until July 1, 2020.] (1) Any sum payable on a check, draft, or similar instrument, except those subject to section 38-13105, on which a banking or financial organization is directly liable, including a cashier's check Colorado Revised Statutes 2019 Page 125 of 707 Uncertified Printout and a certified check, which has been outstanding for more than five years after it was payable or after its issuance if payable on demand is presumed abandoned unless the owner, within five years, has communicated in writing with the banking or financial organization concerning it or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee thereof. (2) On or after July 1, 1987, a holder may not deduct from the amount of any instrument subject to this section any service fee or other charge imposed solely by reason of the failure to present the instrument for payment unless there is a valid and enforceable written contract between the holder and the owner of the instrument pursuant to which the holder may impose a charge and the holder regularly imposes such charges and does not regularly reverse or otherwise cancel them. Source: L. 87: Entire article added, p. 1320, § 1, effective July 1; (2) amended, p. 1334, § 2, effective July 1. Editor's note: Section 7 of chapter 275, Session Laws of Colorado 1987, provided that the act set out in that chapter amending subsection (2) was effective July 1, 1987, but the governor did not approve the act until July 10, 1987. 38-13-107. Bank deposits and funds in financial organizations. [Editor's note: This section is effective until July 1, 2020.] (1) Any demand, savings, or matured time deposit with a banking or financial organization, including a deposit that is automatically renewable, and any funds paid toward the purchase of a share, a mutual investment certificate, or any other interest in a banking or financial organization is presumed abandoned unless the owner, within five years, has: (a) In the case of a deposit, increased or decreased its amount or presented the passbook or other similar evidence of the deposit for the crediting of interest; (b) Communicated in writing with the banking or financial organization concerning the property; (c) Otherwise indicated an interest in the property as evidenced by a memorandum or other record on file prepared by an employee of the banking or financial organization; (d) Owned other property to which paragraph (a), (b), or (c) of this subsection (1) applies and unless the banking or financial organization communicates in writing with the owner with regard to the property that would otherwise be presumed abandoned under this subsection (1) at the address to which communications regarding the other property regularly are sent; or (e) Had another relationship with the banking or financial organization concerning which the owner has: (I) Communicated in writing with the banking or financial organization; or (II) Otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the banking or financial organization and unless the banking or financial organization communicates in writing with the owner with regard to the property that Colorado Revised Statutes 2019 Page 126 of 707 Uncertified Printout would otherwise be abandoned under this subsection (1) at the address to which communications regarding the other relationship regularly are sent. (2) For purposes of subsection (1) of this section, "property" includes interest and dividends. (3) On or after July 1, 1987, a holder may not impose, with respect to property described in subsection (1) of this section, any service fee or other charge due solely to dormancy or inactivity or cease payment of interest unless: (a) There is an enforceable written contract between the holder and the owner of the property pursuant to which the holder may impose such fee or charge or cease payment of interest; (b) For property in excess of two dollars, the holder, no more than three months before the initial imposition of those charges or cessation of interest, has given written notice to the owner of the amount of those fees or charges at the last-known address of the owner stating that those fees or charges will be imposed or that interest will cease, but the notice provided in this section need not be given with respect to fees or charges imposed or interest ceased before July 1, 1987; and (c) The holder regularly imposes such fees or charges or ceases payment of interest and does not regularly reverse or otherwise cancel them or retroactively credit interest with respect to the property. (4) Any property described in subsection (1) of this section that is automatically renewable is matured for purposes of subsection (1) of this section upon the expiration of its initial time period, but, in the case of any renewal to which the owner consents at or about the time of renewal by communicating in writing with the banking or financial organization or otherwise indicating consent as evidenced by a memorandum or other record on file prepared by an employee of the organization, the property is matured upon the expiration of the last time period for which consent was given. If, at the time provided for delivery in section 38-13-112, a penalty or forfeiture in the payment of interest would result from the delivery of the property, the time for delivery is extended until the time when no penalty or forfeiture would result. Source: L. 87: Entire article added, p. 1320, § 1, effective July 1; (3) amended, p. 1334, § 3, effective July 1. L. 93: (2) amended, p. 1074, § 2, effective July 1. Editor's note: Section 7 of chapter 275, Session Laws of Colorado 1987, provided that the act set out in that chapter amending subsection (3) was effective July 1, 1987, but the governor did not approve the act until July 10, 1987. 38-13-107.1. Deposits held by utilities. [Editor's note: This section is effective until July 1, 2020.] Except as otherwise provided for unclaimed utility deposits under section 40-8.5106, C.R.S., a deposit, including any interest thereon, made after January 1, 1992, by a subscriber with a utility to secure payment or any sum paid in advance after January 1, 1992, for utility services to be furnished, less any lawful deductions, that remains unclaimed by the owner Colorado Revised Statutes 2019 Page 127 of 707 Uncertified Printout for more than one year after termination of the services for which the deposit or advance payment was made is presumed abandoned. Source: L. 92: Entire section added, p. 2116, § 4, effective July 1. 38-13-107.3. Refunds held by business associations. [Editor's note: This section is effective until July 1, 2020.] Except to the extent otherwise ordered by the court or administrative agency, any sum that a business association has been ordered to refund by a court or administrative agency which has remained unclaimed by the owner for more than one year after it became payable in accordance with the final determination or order providing for the refund, whether or not the final determination or order requires any person entitled to a refund to make a claim for it, is presumed abandoned. Source: L. 92: Entire section added, p. 2116, § 4, effective July 1. 38-13-107.5. Stock and other intangible interests in business associations. [Editor's note: This section is effective until July 1, 2020.] (1) Except as provided in subsections (2) and (5) of this section, stock or other intangible ownership interest in a business association, the existence of which is evidenced by records available to the association, is presumed abandoned, and, with respect to the interest, the association is the holder if a dividend, distribution, or other sum payable as a result of the interest has remained unclaimed by the owner for five years and the owner within five years has not: (a) Communicated in writing with the association regarding the interest or a dividend, distribution, or other sum payable as a result of the interest; or (b) Otherwise communicated with the association regarding the interest or a dividend, distribution, or other sum payable as a result of the interest, as evidenced by a memorandum or other record on file with the association prepared by an employee of the association. (2) At the expiration of a five-year period following the failure of the owner to claim a dividend, distribution, or other sum payable to the owner as a result of the interest, the interest is not presumed abandoned unless there have been at least five dividends, distributions, or other sums paid during the period, none of which has been claimed by such owner. If five dividends, distributions, or other sums are paid during the five-year period, the period leading to a presumption of abandonment commences on the date payment of the first such unclaimed dividend, distribution, or other sum became due and payable. If five dividends, distributions, or other sums are not paid during the presumptive period, the period continues to run until there have been five dividends, distributions, or other sums that have not been claimed by the owner. (3) The running of the five-year period of abandonment ceases immediately upon the occurrence of a communication pursuant to subsection (1) of this section. If any future dividend, distribution, or other sum payable to the owner as a result of the interest is subsequently not claimed by such owner, a new period of abandonment commences and relates back to the time a subsequent dividend, distribution, or other sum became due and payable. Colorado Revised Statutes 2019 Page 128 of 707 Uncertified Printout (4) At the time an interest is presumed abandoned under this section, any dividend, distribution, or other sum then held for or owing to the owner as a result of the interest, and not previously presumed abandoned, is presumed abandoned. (5) This article does not apply to: (a) Any stock or other intangible ownership interest enrolled in a plan that provides for the automatic reinvestment of dividends, distributions, or other sums payable as a result of the interest unless the records available to the administrator of the plan show, with respect to any intangible ownership interest not enrolled in the reinvestment plan, that the owner has not within five years communicated in the manner described in subsection (1) of this section; or (b) The unclaimed patronage credits of agricultural marketing and supply cooperatives as defined in subchapter T of the federal "Internal Revenue Code of 1986". Source: L. 92: Entire section added, p. 2116, § 4, effective July 1. Editor's note: Subchapter T of the federal "Internal Revenue Code of 1986", referenced in paragraph (b) of subsection (5), is located at 26 U.S.C. sec. 1381 et seq. 38-13-107.9. Property of business associations held in the course of dissolution. [Editor's note: This section is effective until July 1, 2020.] Intangible property distributable in the course of a dissolution of a business association which remains unclaimed by the owner for more than one year after the date specified for final distribution is presumed abandoned. Source: L. 92: Entire section added, p. 2118, § 4, effective July 1. 38-13-108. Property held by agents and fiduciaries. [Editor's note: This section is effective until July 1, 2020.] (1) Intangible property and any income or increment derived therefrom held in a fiduciary capacity for the benefit of another person is presumed abandoned unless the owner, within three years after it has become payable or distributable, has increased or decreased the principal, accepted payment of principal or income, communicated concerning the property, or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by the fiduciary. (2) Funds in an individual retirement account or a retirement plan for self-employed individuals or similar account or plan established pursuant to the internal revenue laws of the United States are not payable or distributable within the meaning of subsection (1) of this section unless, under the terms of the account or plan, distribution of all or part of the funds would then be mandatory. (3) For the purpose of this section, a person who holds property as an agent for a business association is deemed to hold the property in a fiduciary capacity for that business association alone, unless the agreement between him and the business association provides otherwise. Colorado Revised Statutes 2019 Page 129 of 707 Uncertified Printout (4) For the purposes of this article, a person who is deemed to hold property in a fiduciary capacity for a business association alone is the holder of the property only insofar as the interest of the business association in the property is concerned, and the business association is the holder of the property insofar as the interest of any other person in the property is concerned. Source: L. 87: Entire article added, p. 1322, § 1, effective July 1. 38-13-108.2. Property held by courts and public agencies. [Editor's note: This section is effective until July 1, 2020.] (1) Except as set forth in subsection (2) of this section, intangible property held for the owner by a court, state or other government, governmental subdivision or agency, public corporation, or public authority which remains unclaimed by the owner for more than one year after becoming payable or distributable is presumed abandoned. (2) Any overbid, as defined in section 38-38-100.3, that is equal to or greater than twenty-five dollars and that remains unclaimed for five years from the date of sale is presumed abandoned. Source: L. 92: Entire section added, p. 2118, § 4, effective July 1. L. 2012: Entire section amended, (SB 12-030), ch. 96, p. 314, § 1, effective September 1. 38-13-108.3. Funds held in lawyer COLTAF trust accounts - exemption. [Editor's note: This section is effective until July 1, 2020.] This article does not apply to funds held in lawyer COLTAF trust accounts. Source: L. 2015: Entire section added, (HB 15-1371), ch. 246, p. 905, § 2, effective May 29. 38-13-108.4. Gift certificates and credit memos. [Editor's note: This section is effective until July 1, 2020.] (1) Except as provided in subsection (3) of this section, a gift certificate or a credit memo issued in the ordinary course of an issuer's business which remains unclaimed by the owner for more than five years after becoming payable or distributable is presumed abandoned. (2) In the case of a gift certificate, the amount presumed abandoned is the price paid by the purchaser for the gift certificate. In the case of a credit memo, the amount presumed abandoned is the amount credited to the recipient of the memo. (3) The provisions of this section shall apply to any gift certificate issued by a business that is redeemable in cash and not to any gift certificate issued for food, products, goods, or services. Source: L. 92: Entire section added, p. 2118, § 4, effective July 1. L. 93: (1) amended and (3) added, p. 1075, § 4, effective July 1. Colorado Revised Statutes 2019 Page 130 of 707 Uncertified Printout 38-13-108.5. Moneys held by the public employees' retirement association. [Editor's note: This section is effective until July 1, 2020.] (1) For the purposes of this section, unless the context otherwise requires: (a) "Account left inactive" means the contributions of any nonvested member who has terminated employment with an employer if such member's member contribution account with the association has been left inactive. (b) "Association" means the public employees' retirement association created pursuant to section 24-51-201, C.R.S. (c) "Benefit" shall have the same meaning as that provided for such term in section 2451-101 (7), C.R.S. (d) "Benefit recipient" shall have the same meaning as that provided for such term in section 24-51-101 (8), C.R.S. (e) "Employer" shall have the same meaning as that provided for such term in section 24-51-101 (20), C.R.S. (f) "Member" shall have the same meaning as that provided for such term in section 2451-101 (29), C.R.S. (g) "Unclaimed benefit" means a benefit owed to any benefit recipient if such benefit remains unpaid. (h) "Unclaimed member refund" means the contributions of a member who has terminated employment with an employer and who has requested a refund of such contributions if such refund remains unpaid. (2) Any moneys and any accrued interest which are held by the association for accounts left inactive, unclaimed benefits, or unclaimed member refunds shall be presumed to be abandoned if such moneys remain unclaimed for more than five years after such moneys become payable or distributable pursuant to the provisions of article 51 of title 24, C.R.S., unless the owner of such moneys, within five years, has: (a) Communicated in writing with the association concerning such moneys; or (b) Otherwise indicated an interest in such moneys as evidenced by a memorandum or other record on file prepared by an employee of the association. (3) Property which is presumed to be abandoned pursuant to the provisions of this section shall be the only property held by the association which is subject to the provisions of this article. Source: L. 92: Entire section added, p. 2109, § 4, effective March 4. 38-13-108.6. Wages. [Editor's note: This section is effective until July 1, 2020.] Unpaid wages, including wages represented by unpresented payroll checks, owing in the ordinary course of the holder's business which remain unclaimed by the owner for more than one year after becoming payable are presumed abandoned. Source: L. 92: Entire section added, p. 2118, § 4, effective July 1. Colorado Revised Statutes 2019 Page 131 of 707 Uncertified Printout ANNOTATION Law reviews. For article, "State Laws: A Growing Minefield forEmployers", see 23 Colo. Law. 1089 (1994). 38-13-108.7. Gaming chips or tokens - gaming award points - inapplicability. [Editor's note: This section is effective until July 1, 2020.] This article shall not apply to gaming award points and gaming chips or tokens issued or sold by a licensed gaming establishment before, on, or after August 4, 2004, except to the extent the state has taken custody of any gaming award points or gaming chips or tokens on or before January 1, 2004. Source: L. 2004: Entire section added, p. 1877, § 2, effective August 4. 38-13-108.8. Property held by racetracks - inapplicability. [Editor's note: This section is effective until July 1, 2020.] This article 13 shall not apply to any intangible unclaimed property held by a racetrack, as that term is defined in section 44-32-102 (24). Source: L. 92: Entire section added, p. 2118, § 4, effective July 1. L. 93: Entire section amended, p. 1239, § 12, effective July 1. L. 2018: Entire section amended, (HB 18-1024), ch. 26, p. 324, § 21, effective October 1. 38-13-108.9. Unclaimed gift cards - limited exception. [Editor's note: This section is effective until July 1, 2020.] This article does not apply to unclaimed gift cards where the holder or issuer is a business association with annual gross receipts from the sales or issuance of all gift cards totaling two hundred thousand dollars or less. Source: L. 2013: Entire section added, (HB 13-1102), ch. 44, p. 121, § 2, effective March 15. 38-13-109. Contents of safe deposit box or other safekeeping repository. [Editor's note: This section is effective until July 1, 2020.] All tangible and intangible property held in a safe deposit box or any other safekeeping repository in this state in the ordinary course of the holder's business and proceeds resulting from the sale of the property permitted by any other law, which remain unclaimed by the owner for more than five years after the lease or rental period on the box or other repository has expired, are presumed abandoned. Source: L. 87: Entire article added, p. 1322, § 1, effective July 1. Colorado Revised Statutes 2019 Page 132 of 707 Uncertified Printout 38-13-109.5. Funds owing under life insurance policies. [Editor's note: This section is effective until July 1, 2020.] (1) Funds held or owing under any life or endowment insurance policy or annuity contract that has matured or terminated are presumed abandoned if unclaimed for more than five years after the funds became due and payable as established from the records of the insurance company holding or owing the funds; except that property described in paragraph (b) of subsection (3) of this section is presumed abandoned if unclaimed for more than two years. (2) If a person other than the insured or annuitant is entitled to the funds and an address of the person is not known to the company or it is not definite and certain from the records of the company who is entitled to the funds, it is presumed that the last-known address of the person entitled to the funds is the same as the last-known address of the insured or annuitant according to the records of the company. (3) For purposes of this article, a life or endowment insurance policy or annuity contract not matured by actual proof of the death of the insured or annuitant according to the records of the company is matured and the proceeds due and payable if: (a) The company knows that the insured or annuitant has died; or (b) (I) The insured has attained, or would have attained if he were living, the limiting age under the mortality table on which the reserve is based; (II) The policy was in force at the time the insured attained, or would have attained, the limiting age specified in subparagraph (I) of this paragraph (b); and (III) Neither the insured nor any other person appearing to have an interest in the policy within the preceding two years, according to the records of the company, has assigned, readjusted, or paid premiums on the policy, subjected the policy to a loan, corresponded in writing with the company concerning the policy, or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the company. (4) For purposes of this article, the application of an automatic premium loan provision or other nonforfeiture provision contained in an insurance policy does not prevent a policy from being matured or terminated under subsection (1) of this section if the insured has died or the insured or the beneficiary of the policy otherwise has become entitled to the proceeds thereof before the depletion of the cash surrender value of a policy by the application of such provisions. (5) If the laws of this state or the terms of the life insurance policy require the company to give notice to the insured or owner that an automatic premium loan provision or other nonforfeiture provision has been exercised, and the notice given to an insured or owner whose last-known address according to the records of the company is in this state is undeliverable, the company shall make a reasonable search to ascertain the policyholder's correct address to which the notice must be mailed. (6) Notwithstanding any other provision of law to the contrary, if the company learns of the death of the insured or annuitant and the beneficiary has not communicated with the insurer within four months after such death, the company shall take reasonable steps to pay the proceeds to the beneficiary. Colorado Revised Statutes 2019 Page 133 of 707 Uncertified Printout (7) Commencing July 1, 1992, every change of beneficiary form issued by an insurance company under any life or endowment insurance policy or annuity contract to an insured or owner who is a resident of this state shall request the following information: (a) The name of each beneficiary, or if a class of beneficiaries is named, the name of each current beneficiary in the class; (b) The address of each beneficiary; and (c) The relationship of each beneficiary to the insured. Source: L. 90: Entire section added, p. 1633, § 4, effective April 27. 38-13-109.7. Tax refunds. [Editor's note: This section is effective until July 1, 2020.] (1) On and after October 1, 2002, any amount due and payable as a refund of Colorado income tax or grant for property taxes, rent, or heat or fuel expenses assistance represented by a warrant that has not been presented for payment within six months from the date of issuance of the warrant and that has been forwarded by the department of revenue to the administrator pursuant to section 39-21-108 (5), C.R.S., is presumed abandoned. (2) Repealed. (3) On and after October 1, 2010, any amount due and payable, as a refund of a tax imposed or assessed by the department of revenue that is not addressed in subsection (1) of this section, represented by a warrant that has not been presented for payment within six months from the date of issuance of the warrant and that has been forwarded by the department to the administrator pursuant to section 39-21-108 (7), C.R.S., is presumed abandoned. Source: L. 2001: Entire section added, p. 618, § 3, effective August 8. L. 2004: Entire section amended, p. 314, § 2, effective August 4. L. 2010: (2) repealed, (SB 10-212), ch. 412, p. 2032, § 1, effective July 1; (3) added, (SB 10-186), ch. 309, p. 1455, § 2, effective August 11. 38-13-110. Report and payment or delivery of abandoned property. [Editor's note: This section is effective until July 1, 2020.] (1) (a) A person holding property, tangible or intangible, presumed abandoned and subject to custody as unclaimed property under this article shall report to the administrator concerning the property as provided in this section. (b) If a person is not subject to the requirements of this subsection (1) because the person does not hold any property, tangible or intangible, presumed abandoned under this article or the person meets the criteria established in paragraph (e) of subsection (4) of this section, the person shall not be required to notify the administrator of the person's exemption from this subsection (1). (2) The report must include: (a) Except with respect to money orders, the name, if known, and last-known address, if any, of each person appearing from the records of the holder to be the owner of property presumed abandoned under this article; Colorado Revised Statutes 2019 Page 134 of 707 Uncertified Printout (a.5) In the case of unclaimed funds of twenty-five dollars or more held or owing under any life or endowment insurance policy or annuity contract, the name, if known, and the lastknown address, if any, of the insured or annuitant and of the beneficiary according to the records of the insurance company holding or owing the funds; (b) In the case of the contents of a safe deposit box or other safekeeping repository or of other tangible property, a description of the property and the place where it is held and may be inspected by the administrator and any amounts owing to the holder; (c) The nature and identifying number, if any, or a description of the property and the amount appearing from the records to be due, but items of value under twenty-five dollars each may be reported in the aggregate; (d) The date the property became payable, demandable, or returnable and the date of the last transaction with the apparent owner with respect to the property; and (e) Other information the administrator prescribes by rule as necessary for the administration of this article. (3) If the person holding property presumed abandoned and subject to custody as unclaimed property is a successor to other persons who previously held the property for the apparent owner or the holder has changed his name while holding the property, he shall file with his report any such prior name and all known names and addresses of each previous holder of the property. (4) (a) The report required by subsection (1) of this section shall be filed and, pursuant to section 38-13-112, payment or delivery of abandoned property shall be made before November 1 of each year as of June 30 next preceding, with the initial report to be filed before November 1, 1987, except as provided in paragraphs (b), (c), (d), and (e) of this subsection (4). (b) Notwithstanding the provisions of paragraph (a) of this subsection (4), the report of any life insurance company must be filed and, pursuant to section 38-13-109.5, payment or delivery of funds held or owing and presumed abandoned shall be made before May 1 of each year as of December 31 next preceding, with the initial report to be filed before May 1, 1991. (c) On written request by any person required to file a report and, pursuant to section 3813-112, pay or deliver abandoned property, the administrator may postpone the reporting date. However, the reporting date for the initial report filed by insurance companies, other than life insurance companies pursuant to paragraph (a) of this subsection (4), under this article as required by section 38-13-130 (2) shall in no case be postponed beyond December 30, 1990. (d) Notwithstanding the provisions of paragraph (a) of this subsection (4), the public employees' retirement association shall file an initial report on or before June 1, 1992. The public employees' retirement association shall file subsequent reports in conformance with the requirements of paragraph (a) of this subsection (4) on or before November 1, 1993, and on or before November 1 of each year thereafter. (e) (I) Any business association with annual gross receipts of less than five hundred thousand dollars that holds property, tangible or intangible, acquired during the immediately preceding five-year period of an aggregate value under three thousand five hundred dollars shall not be subject to the requirements of paragraph (a) of this subsection (4) and section 38-13-112 Colorado Revised Statutes 2019 Page 135 of 707 Uncertified Printout until such time as the aggregate value of such property acquired during the immediately preceding five-year period exceeds three thousand five hundred dollars; except that, if any such business association holds an item of property of any one apparent owner acquired during such period of an aggregate value over two hundred fifty dollars, such business association shall report and pay or deliver such property to the administrator in accordance with paragraph (a) of this subsection (4) and section 38-13-112. (II) Any organization exempt from taxation under section 501 (c)(3) of the federal "Internal Revenue Code of 1986", 26 U.S.C. 501 (c)(3), or its successor statute, that receives contributions totaling one million dollars or more annually and that holds property, tangible or intangible, acquired during the immediately preceding five-year period of an aggregate value under three thousand five hundred dollars shall not be subject to the requirements of paragraph (a) of this subsection (4) and section 38-13-112 until such time as the aggregate value of such property acquired during the immediately preceding five-year period exceeds three thousand five hundred dollars; except that, if any such organization holds an item of property of any one apparent owner acquired during such period of an aggregate value over two hundred fifty dollars, such organization shall report and pay or deliver such property to the administrator in accordance with paragraph (a) of this subsection (4) and section 38-13-112. (III) Any organization exempt from taxation under section 501 (c)(3) of the federal "Internal Revenue Code of 1986", 26 U.S.C. 501 (c)(3), or its successor statute, that receives contributions totaling less than one million dollars annually shall not be subject to the requirements of paragraph (a) of this subsection (4) and section 38-13-112. (5) Except as provided in subsection (6) of this section, not more than one hundred twenty days before filing the report and, pursuant to section 38-13-112, paying or delivering the abandoned property required by this section, the holder in possession of property presumed abandoned and subject to custody as unclaimed property under this article shall send written notice to the apparent owner's last-known address, informing such owner that the holder is in possession of property subject to this article if: (a) The holder has in its records an address for the apparent owner which the holder's records do not disclose to be inaccurate; (b) The claim of the apparent owner is not barred by the statute of limitations; and (c) The property has a value of fifty dollars or more. (6) (a) (Deleted by amendment, L. 95, p. 523, § 3, effective May 16, 1995.) (b) The public employees' retirement association shall comply with the requirements of subsection (5) of this section with regard to reports filed by the public employees' retirement association on or before November 1, 1993, and on or before November 1 of each year thereafter. Source: L. 87: Entire article added, p. 1322, § 1, effective July 1; (4) amended, p. 1335, § 1, effective July 1. L. 90: (2)(a.5) added and (4) amended, p. 1634, §§ 5, 6, effective April 27. L. 92: (4)(a) and IP(5) amended and (4)(d) and (6) added, pp. 2110, 2111, §§ 5, 6, effective March 4; (4) and IP(5) amended, p. 2118, § 5, effective July 1. L. 93: (4)(a) amended and (4)(e) Colorado Revised Statutes 2019 Page 136 of 707 Uncertified Printout added, p. 1075, § 5, effective July 1. L. 95: (1), IP(2), (4)(d), (4)(e), and (6)(a) amended, p. 523, § 3, effective May 16. Editor's note: Amendments to subsections (4) and (5) by House Bill 92-1092 and House Bill 92-1152 were harmonized. 38-13-111. Electronic notice of abandoned property. [Editor's note: This section is effective until July 1, 2020.] (1) The administrator shall maintain an electronic, alphabetical list of the owners of unclaimed property and shall make such list available to the public on the world wide web. The administrator shall provide to each county treasurer and public library in the state a written copy of the list of owners of unclaimed property in that county. The office of the treasurer shall also maintain a written copy of the list of unclaimed property owners. (2) The electronic, alphabetical list of the names of owners of unclaimed property maintained pursuant to subsection (1) of this section shall include the following information: (a) (Deleted by amendment, L. 2004, p. 1148, § 1, effective August 4, 2004.) (b) A statement that information concerning the property may be obtained by any person possessing an interest in the property by addressing an inquiry to the administrator; and (c) (I) A statement that any person claiming an interest in the property must file a proof of claim with the administrator pursuant to section 38-13-117. (II) (Deleted by amendment, L. 95, p. 524, § 4, effective May 16, 1995.) (3) (Deleted by amendment, L. 2004, p. 1148, § 1, effective August 4, 2004.) (4) Not later than March 1 of the year immediately following the report required by section 38-13-110 or, in the case of property reported by life insurance companies, not later than September 1 of the year of the report required by section 38-13-110, the administrator shall mail a notice to each person whose last-known address is listed in the report and who appears to be entitled to property of the value of fifty dollars or more presumed abandoned under this article and any beneficiary of a life or endowment insurance policy or annuity contract for whom the administrator has a last-known address. (5) The mailed notice must contain: (a) A statement that property is being held to which the addressee appears entitled; and (b) A statement that any person claiming an interest in property being held must file a proof of claim with the administrator pursuant to section 38-13-117. (6) This section is not applicable to sums payable on money orders and other written instruments presumed abandoned under section 38-13-105. (7) The administrator shall limit the amount of moneys expended for publication and necessary correspondence pursuant to this section to not more than two percent of the previous year's paid claims from the unclaimed property trust fund created in section 38-13-116.5. Source: L. 87: Entire article added, p. 1323, § 1 effective July 1. L. 90: (1), (2)(c), and (4) amended, p. 1635, § 7, effective April 27. L. 92: (1), (2)(c), and (4) amended, p. 2111, § 7, effective March 4; (2)(b), (2)(c), and (5) amended, p. 2119, § 6, effective July 1. L. 95: (1), Colorado Revised Statutes 2019 Page 137 of 707 Uncertified Printout (2)(c)(II), and (4) amended, p. 524, § 4, effective May 16. L. 2004:(1), IP(2), (2)(a), and (3) amended and (7) added, p. 1148, § 1, effective August 4; (2)(c)(I) amended, p. 1205, § 82, effective August 4. Editor's note: Amendments to subsection (2)(c) by House Bill 92-1092 and House Bill 92-1152 were harmonized. 38-13-112. Payment or delivery of abandoned property to the administrator. [Editor's note: This section is effective until July 1, 2020.] (1) (a) Except as otherwise provided in subsection (2) of this section, a person who is required to file a report under section 38-13-110 shall pay or deliver to the administrator all abandoned property required to be reported at the time such report is filed. (b) (I) A holder may voluntarily, prior to payment or delivery of said abandoned property, deduct and retain two percent of the value of the property or twenty-five dollars whichever is more per item. (II) Holders that are banking or financial organizations and holders of dividends, royalties, or other items that are backed by an underlying share, interest, insurance policy, or annuity contract may voluntarily, prior to payment or delivery of said abandoned property, deduct and retain two percent of the value of the property or twenty-five dollars, whichever is more per item; except that, if the abandoned property is a demand, savings, or matured time deposit or funds held or owing under an insurance policy or annuity contract, the holder may deduct and retain two percent of the value of the property or twenty-five dollars, whichever is less. (c) A holder may also deduct any sum due and owing from the value of the property prior to delivery. (2) (a) If the owner establishes the right to receive the abandoned property to the satisfaction of the holder before the property has been delivered or if it appears that for some other reason the presumption of abandonment is erroneous, the holder need not pay or deliver the property to the administrator, and the property will no longer be presumed abandoned. In that case, the holder shall file with the administrator a written explanation of the proof of claim or of the error in the presumption of abandonment. (b) The provisions of subsection (1) of this section shall apply to any payment or delivery of abandoned property by the public employees' retirement association if such property was included in a report required to be filed by the public employees' retirement association on or before November 1, 1993, or on or before November 1 of any succeeding year. Source: L. 87: Entire article added, p. 1324, § 1, effective July 1. L. 89: (1) amended, p. 1646, § 26, effective June 5. L. 92: (2) amended, p. 2112, § 8, effective March 4; (1) amended, p. 2120, § 7, effective July 1. L. 95: Entire section amended, p. 525, § 5, effective May 16. Colorado Revised Statutes 2019 Page 138 of 707 Uncertified Printout 38-13-112.5. Public employees' retirement association - initial report of abandoned property - payment of moneys. (Repealed) Source: L. 92: Entire section added, p. 2110, § 4, effective March 4. L. 95: Entire section repealed, p. 526, § 6, effective May 16. 38-13-113. Custody by state - holder relieved from liability - waiver of rights by owner - reimbursement of holder paying claim - reclaiming for owner - defense of holder payment of safe deposit box or repository charges. [Editor's note: This section is effective until July 1, 2020.] (1) (a) Upon the payment or delivery of property to the administrator, the state assumes custody and responsibility for the safekeeping of the property. A person who pays or delivers property to the administrator in good faith is relieved of all liability to the extent of the value of the property paid or delivered for any claim then existing or which thereafter may arise or be made in respect to the property. (b) Any person appearing to be an owner of property paid or delivered to the administrator pursuant to this article may notify the administrator on a form prescribed by the administrator that the person waives the right to claim the property. (2) A holder who has paid money to the administrator pursuant to this article may make payment to any person appearing to the holder to be entitled to payment, and, upon filing proof of payment and proof that the payee was entitled thereto, the administrator shall promptly reimburse the holder for the payment without imposing any fee or other charge. If reimbursement is sought for a payment made on a negotiable instrument, including a money order, the holder must be reimbursed under this subsection (2) upon filing proof that the instrument was duly presented and that payment was made to a person who appeared to the holder to be entitled to payment. The holder must be reimbursed for payment made under this subsection (2) even if the payment was made to a person whose claim was barred under section 38-13-122 (1). (3) A holder who has delivered property other than money to the administrator pursuant to this article may reclaim the property if still in the possession of the administrator, without paying any fee or other charge, upon filing proof that the owner has claimed the property from the holder. (4) The administrator may accept the holder's affidavit as sufficient proof of the facts that entitle the holder to recover money and property under this section. (5) If the holder pays or delivers property to the administrator in good faith and thereafter another person claims the property from the holder or another state claims the money or property under its laws relating to escheat or abandoned or unclaimed property, the administrator, upon written notice of the claim, shall defend the holder against the claim and indemnify the holder against any liability on the claim. (6) For the purposes of this section, "good faith" means that: (a) Payment or delivery was made in a reasonable attempt to comply with this article; Colorado Revised Statutes 2019 Page 139 of 707 Uncertified Printout (b) The person delivering the property was not a fiduciary then in breach of trust in respect to the property and had a reasonable basis for believing, based on the facts then known to him, that the property was abandoned for the purposes of this article; and (c) There is no showing that the records pursuant to which the delivery was made did not meet reasonable commercial standards of practice in the industry. (7) Property removed from a safe deposit box or other safekeeping repository is received by the administrator subject to the holder's right under this subsection (7) to be reimbursed for the actual cost of the opening of such repository and subject to any valid lien or contract providing for the holder to be reimbursed for unpaid rent or storage charges. The administrator shall reimburse or pay the holder for such costs out of the proceeds remaining after deducting the administrator's selling cost. Source: L. 87: Entire article added, p. 1325, § 1, effective July 1. L. 2004: (1) amended, p. 1877, § 3, effective August 4. L. 2013: (1)(b) amended, (HB 13-1115), ch. 338, p. 1973, § 17, effective March 31, 2015. 38-13-114. Crediting of dividends, interest, or increments to owner's account. [Editor's note: This section is effective until July 1, 2020.] Whenever property other than money is paid or delivered to the administrator under this article, the owner is entitled to receive from the administrator any dividends, interest, or other increments realized or accruing on the property at or before liquidation or conversion thereof into money. Source: L. 87: Entire article added, p. 1326, § 1, effective July 1. 38-13-115. Public sale of abandoned property. [Editor's note: This section is effective until July 1, 2020.] (1) Except as provided in subsections (2), (3), and (5) of this section, the administrator, within three years after the receipt of abandoned property, shall sell it to the highest bidder at public sale in whatever city in the state affords in the judgment of the administrator the most favorable market for the property involved. The administrator may decline the highest bid and reoffer the property for sale if in the judgment of the administrator the bid is insufficient. If in the judgment of the administrator the probable cost of sale exceeds the value of the property, it need not be offered for sale. Any sale held under this section must be preceded by a single publication of notice, at least three weeks in advance of sale, in a newspaper of general circulation in the county in which the property is to be sold. (2) Securities listed on an established stock exchange must be sold at prices prevailing on the exchange at the time of sale. Other securities may be sold over the counter at prices prevailing at the time of sale or by any other method the administrator considers advisable. (3) Unless the administrator considers it to be in the best interest of the state to do otherwise, all securities delivered to the administrator shall be held for at least one year before he or she may sell them. On and after July 1, 2004, the administrator shall take all reasonable action to sell the securities delivered to him or her as provided in this section. All proceeds collected Colorado Revised Statutes 2019 Page 140 of 707 Uncertified Printout from the sale of securities pursuant to this section shall be deposited in the unclaimed property tourism promotion trust fund created in section 38-13-116.7. (4) The purchaser of property at any sale conducted by the administrator pursuant to this article takes the property free of all claims of the owner or previous holder thereof and of all persons claiming through or under them. The administrator shall execute all documents necessary to complete the transfer of ownership. (5) The administrator shall retain or loan to the Colorado veterans community living center at Homelake or to an alternate state facility selected by the administrator that has appropriate and secure space suitable for public display any military medal or decoration or other military award or citation that is delivered to the administrator pursuant to section 38-13113 until the owner of the property claims the property in accordance with section 38-13-117 (1) and the administrator allows the claim pursuant to section 38-13-117 (3). Source: L. 87: Entire article added, p. 1326, § 1, effective July 1. L. 2002: (1) amended and (5) added, p. 319, § 1, effective August 7. L. 2004: (3) amended, p. 1262, § 2, effective May 27. L. 2012: (5) amended, (HB 12-1063), ch. 149, p. 537, § 6, effective May 3. L. 2014: (5) amended, (SB 14-096), ch. 59, p. 275, § 33, effective August 6. Cross references: For the legislative declaration in the 2004 act amending subsection (3), see section 1 of chapter 322, Session Laws of Colorado 2004. 38-13-116. Creation of funds - repeal. (Repealed) Source: L. 87: Entire article added, p. 1326, § 1, effective July 1. L. 89: (1) amended and (2) repealed, p. 1440, §§ 1, 2, effective April 6. L. 90: (1) amended and (3) added, p. 1635, § 8, effective April 27; (3)(b) amended, p. 641, § 3, effective July 1; (3)(b)(II) added by revision, p. 641, § 5. L. 93: (3)(b) amended, p. 1025, § 4, effective June 2; (1) amended and (4) added, p. 1075, § 6, effective July 1. L. 95: (3)(b)(III) added and (4)(a) amended, p. 526, §§ 7, 8, effective May 16. L. 97: (3)(b)(I), (4)(b), and (4)(c) amended, p. 622, § 22, effective July 1. L. 2000: Entire section amended, p. 400, § 3, effective August 2. Editor's note: Subsection (5) provided for the repeal of this section, effective July 1, 2001. (See L. 2000, p. 400.) 38-13-116.5. Unclaimed property trust fund - creation - payments - interest appropriations - records - rules. [Editor's note: This section is effective until July 1, 2020.] (1) (a) There is hereby created in the state treasury the unclaimed property trust fund. The principal in the trust fund shall consist of all moneys collected by the administrator under this article. On July 1, 2001, any moneys in the abandoned property fund, the unclaimed insurance moneys fund, or the business associations unclaimed moneys fund created in section 38-13-116 shall be transferred to and shall become a part of the trust fund. Colorado Revised Statutes 2019 Page 141 of 707 Uncertified Printout (b) Except as provided in subsection (2) of this section, the principal of the trust fund shall not be expended except to pay claims made pursuant to this article 13. Money comprising the principal of the trust fund shall not constitute fiscal year spending of the state for purposes of section 20 of article X of the state constitution and is not subject to appropriation by the general assembly. (c) All interest derived from the deposit and investment of moneys in the trust fund shall be credited to the trust fund. (d) The moneys in the unclaimed property trust fund shall not revert to the general fund at the end of any fiscal year. (2) (a) For the 2001-02 fiscal year and each fiscal year thereafter, the general assembly shall make annual appropriations out of the principal of the unclaimed property trust fund for the direct and indirect costs of administering this article, except as provided for the payment of contract auditor services in paragraph (b) of this subsection (2). (b) Moneys in the unclaimed property trust fund shall be continuously appropriated to the state treasurer for the payment of contract auditor services. Any moneys appropriated for the payment of contract auditor services shall be paid from revenues collected by contract auditors. (c) As soon as feasible after April 22, 2009, the state treasurer shall promulgate rules in accordance with article 4 of title 24, C.R.S., as may be necessary to administer payment for contract auditor services, including any rules necessary to: (I) Specify the requirements or expertise of contract auditors; (II) Adequately protect unclaimed property while the property is in the possession of the contract auditor; and (III) Prevent identity theft and the sale or transfer of personal identifying information obtained by the contract auditor during the course of the contract auditor's duties. (d) The following amounts constitute fiscal year spending for purposes of section 20 of article X of the state constitution: (I) Any money that is appropriated to the department of the treasury as required by this subsection (2); (II) Any money that is credited to the general fund as required by subsection (2.6) of this section; and (III) Any money that is credited to the adult dental fund created in section 25.5-5-207 (4), C.R.S., as required by subsection (2.8) of this section. (2.5) Repealed. (2.6) Notwithstanding any provision of this section to the contrary: (a) On June 1, 2009, the state treasurer shall deduct fifty million dollars from the unclaimed property trust fund and transfer such sum to the general fund; (b) On July 1, 2009, the state treasurer shall deduct twenty-five million dollars from the unclaimed property trust fund and transfer such sum to the general fund; (c) On June 30, 2016, the state treasurer shall deduct eight million dollars from the unclaimed property trust fund and transfer such sum to the general fund; and Colorado Revised Statutes 2019 Page 142 of 707 Uncertified Printout (d) On July 1, 2019, the state treasurer shall transfer thirty million dollars from the unclaimed property trust fund to the general fund. (2.7) Repealed. (2.8) (a) (I) On and after April 1, 2014, after reserving the amounts described in paragraph (b) of this subsection (2.8), the state treasurer shall transmit to the adult dental fund created in section 25.5-5-207 (4), C.R.S., an amount of principal and interest in the trust fund sufficient to implement the adult dental benefit pursuant to section 25.5-5-202 (1)(w), C.R.S. (II) On June 30, 2016, the state treasurer shall deduct thirty-four million eight hundred thousand dollars from the unclaimed property trust fund and transfer such sum to the adult dental fund created in section 25.5-5-207 (4), C.R.S., to implement the adult dental benefit pursuant to section 25.5-5-202 (1)(w), C.R.S., for the fiscal year 2016-17. (b) The state treasurer shall reserve in the trust fund and shall not transfer any moneys necessary for: (I) The claims paid pursuant to this article for each fiscal year; (II) The reserve amount necessary to pay anticipated claims; and (III) Publications and correspondence expenses pursuant to section 38-13-111 (7). (2.9) Repealed. (3) Before crediting any moneys to the trust fund pursuant to subsection (1) of this section, the administrator shall record the name and last-known address of each person appearing from the holders' reports to be entitled to the property. The record shall be available for public inspection during all reasonable business hours. Source: L. 2000: Entire section added, p. 399, § 1, effective August 2. L. 2001: (1)(c) amended, p. 1052, § 40, effective July 1. L. 2002: (1)(b) and (2) amended and (2.5) added, p. 161, § 1, effective March 27; (1)(b) amended, p. 679, § 1, effective March 28. L. 2004: (1)(b) and (1)(c) amended and (2.7) added, p. 1149, § 2, effective August 4. L. 2008: (2.7)(a), (2.7)(b), and (2.7)(d) amended and (2.7)(a.5) added, p. 1260, § 5, effective July 1. L. 2009: (2) amended, (HB 09-1301), ch. 173, p. 772, § 1, effective April 22; (2.6) added, (SB 09-279), ch. 367, p. 1931, § 21, effective June 1. L. 2010: (2.5) repealed, (HB 10-1422), ch. 419, p. 2121, § 172, effective August 11. L. 2011: (1)(b) amended, (HB 11-1303), ch. 264, p. 1174, § 88, effective August 10. L. 2013: (1)(b) amended and (2.9) added, (HB 13-1245), ch. 258, p. 1364, § 6, effective May 23; (2.7)(a.5)(III) added, (HB 13-1115), ch. 338, p. 1974, § 18, effective May 28; (2.8) added, (SB 13-242), ch. 189, p. 763, § 3, effective August 7. L. 2016: (2)(d), (2.6), and (2.8)(a) amended, (HB 16-1409), ch. 137, p. 403, § 1, effective May 4. L. 2017: (1)(b) amended, (SB 17-294), ch. 264, p. 1414, § 107, effective May 25. L. 2018: (1)(b) amended and (2.7) repealed, (HB 18-1375), ch. 274, p. 1721, § 78, effective May 29. L. 2019: (2.6)(b) and (2.6)(c) amended and (2.6)(d) added, (SB 19-261), ch. 376, p. 3402, § 1, effective May 30. Editor's note: (1) effective July 1, 2001. Section 38-13-116 referenced in subsection (1) was repealed, Colorado Revised Statutes 2019 Page 143 of 707 Uncertified Printout (2) Subsections (2.7)(a)(II) and (2.7)(b)(II) provided for the repeal of subsections (2.7)(a) and (2.7)(b), respectively, effective January 1, 2009. (See L. 2008, p. 1260.) (3) Subsection (2.9)(b) provided for the repeal of subsection (2.9), effective July 1, 2014. (See L. 2013, p. 1364.) (4) Subsection (2.7)(a.5)(III) provided for the repeal of subsection (2.7)(a.5), effective March 31, 2015. (See L. 2013, p. 1974.) (5) Changes to this section by SB 19-261, effective May 30, 2019, are superseded by the repeal and reenactment of this article 13 by SB 19-088, effective July 1, 2020. 38-13-116.7. Unclaimed property tourism promotion trust fund - creation payments - interest - transfers. [Editor's note: This section is effective until July 1, 2020.] (1) There is hereby created in the state treasury the unclaimed property tourism promotion trust fund. The principal in the trust fund shall consist of all proceeds collected by the administrator from the sale of securities pursuant to section 38-13-115. (2) The principal of the unclaimed property tourism promotion trust fund shall not be expended except to pay claims made pursuant to this article. Moneys comprising the principal of the trust fund that are credited to or expended from the trust fund to pay claims shall not constitute fiscal year spending of the state for purposes of section 20 of article X of the state constitution, and such moneys shall be deemed custodial funds that are not subject to appropriation by the general assembly. (3) (a) Beginning with the 2008-09 state fiscal year, the interest derived from the deposit and investment of moneys in the unclaimed property tourism promotion trust fund shall be credited to the following funds: (I) Twenty-five percent of the interest to the Colorado state fair authority cash fund created in section 35-65-107 (1), C.R.S., subject to appropriation by the general assembly pursuant to section 35-65-107 (3)(b), C.R.S.; (II) Sixty-five percent of the interest to the agriculture management fund created in section 35-1-106.9, C.R.S., subject to appropriation by the general assembly pursuant to section 35-1-106.9, C.R.S.; and (III) (A) Ten percent of the interest to the Colorado travel and tourism promotion fund created in section 24-49.7-106 (1), C.R.S., subject to appropriation by the general assembly pursuant to section 24-49.7-106 (3), C.R.S., for use in the promotion of agritourism in the state. For the purposes of this subparagraph (III), "agritourism" means the practice of engaging in activities, events, and services that have been provided to consumers for recreational, entertainment, or educational purposes at a farm, ranch, or other agricultural, horticultural, or agribusiness operation in order to allow consumers to experience, learn about, and participate in various facets of agricultural industry, culinary pursuits, natural resources, and heritage. (B) The board of directors of the Colorado tourism office created in section 24-49.7-103, C.R.S., shall consult annually, and execute a memorandum of understanding, with the commissioner of agriculture regarding the expenditure of moneys appropriated pursuant to subsubparagraph (A) of this subparagraph (III) in order to coordinate agritourism promotion efforts. Colorado Revised Statutes 2019 Page 144 of 707 Uncertified Printout (b) Any moneys that are credited to and expended from the Colorado state fair authority cash fund, the agriculture management fund, or the travel and tourism promotion fund pursuant to this subsection (3) shall constitute fiscal year spending of the state for purposes of section 20 of article X of the state constitution. (4) The moneys in the unclaimed property tourism promotion trust fund shall not revert to the general fund at the end of any fiscal year. (5) Notwithstanding any provision of this section to the contrary, on July 1, 2009, the state treasurer shall deduct five million dollars from the unclaimed property tourism promotion trust fund and transfer such sum to the general fund. Source: L. 2004: Entire section added, p. 1262, § 3, effective May 27. L. 2008: (3) amended, p. 864, § 1, effective February 27, 2009. L. 2009: (5) added, (SB 09-279), ch. 367, p. 1929, § 13, effective June 1. Cross references: For the legislative declaration in the 2004 act adding this section, see section 1 of chapter 322, Session Laws of Colorado 2004. 38-13-117. Filing of claim with administrator. [Editor's note: This section is effective until July 1, 2020.] (1) A person, excluding another state, this state, or a governmental agency of this state, claiming an interest in any property paid or delivered to the administrator may file with him or her a claim on a form prescribed by the administrator and verified by the claimant. If the value of the property claimed is one hundred dollars or less, the administrator may waive the requirement that the claimant verify the claim. The administrator shall require the claimant to submit his or her social security number or federal employer identification number, whichever is applicable. The social security number or federal employer identification number shall not become part of the public records of the administrator. (2) The administrator shall consider each claim and give written notice within ninety days after the filing of the claim to the claimant if the claim is denied in whole or in part. The notice may be given by mailing it to the last-known address, if any, stated in the claim as the address to which such notice is to be sent. If no address for notice is stated in the claim, the notice may be mailed to the last-known address, if any, of the claimant as stated in the claim. No notice of denial need be given if the claim fails to state either the last-known address to which such notice is to be sent or the current address of the claimant. (3) (a) Subject to the provisions of sections 38-13-117.3, 38-13-117.5, and 38-13-117.7, if a claim is allowed, the administrator shall pay over or deliver to the claimant the property or the amount the administrator actually received or the net proceeds if it has been sold by the administrator, together with any additional amount required by section 38-13-114. If the property claimed was interest-bearing to the owner on the date of surrender by the holder, the administrator also shall pay simple interest at a rate of six percent a year or any lesser rate the property earned while in the possession of the holder. Such interest begins to accrue when the property is delivered to the administrator and ceases on the expiration of five years after delivery Colorado Revised Statutes 2019 Page 145 of 707 Uncertified Printout or the date on which payment is made to the owner. No interest on interest-bearing property is payable for any period before July 1, 1987. (b) The administrator shall pay or deliver to the public employees' retirement association the amount necessary to purchase service credit pursuant to section 24-51-503, C.R.S., if the owner of an account left inactive or an unclaimed member refund described in section 38-13108.5 (1) requests restoration of service credit which was forfeited when funds were transferred to the abandoned property fund. (4) Any holder who pays the owner for property that has been delivered to the state and which, if claimed from the administrator, would be subject to subsection (3) of this section shall add interest as provided in subsection (3) of this section. The added interest must be repaid to the holder by the administrator in the same manner as the principal is repaid. Source: L. 87: Entire article added, p. 1327, § 1, effective July 1. L. 92: (3)(b) added, p. 2112, § 9, effective March 4. L. 2004: (1) amended, p. 1877, § 4, effective August 4. L. 2005: (1) and (3)(a) amended, p. 699, § 4, effective August 8. Editor's note: Section 9 of House Bill 92-1092 does not conform to the C.R.S. numbering format; therefore, (3)(a) in House Bill 92-1092 has been subsequently relettered to (3)(b). 38-13-117.3. Claims offset for child support. [Editor's note: This section is effective until July 1, 2020.] (1) Before paying a claim in an amount exceeding six hundred dollars pursuant to section 38-13-117 (3), the administrator shall offset against the amount of the claim the claimant's obligations to pay current child support, child support debt, retroactive child support, child support arrearages, child support costs, or child support when combined with maintenance. The administrator may enter into a memorandum of understanding with the department of human services to implement this section and section 26-13-118.5, C.R.S. (2) (a) If a claimant owes current child support, child support debt, retroactive child support, child support arrearages, child support costs, or child support when combined with maintenance, and also owes restitution or fines, fees, costs, or surcharges as described in section 38-13-117.5 or delinquent state taxes, penalties, or interest as described in section 38-13-117.7, or both, the unclaimed property offset against the current child support, child support debt, retroactive child support, child support arrearages, child support costs, or child support when combined with maintenance shall take priority and be applied first. (b) If a claimant owes both restitution or fines, fees, costs, or surcharges and delinquent state taxes, penalties, or interest, after payment in accordance with paragraph (a) of this subsection (2), if applicable, any remaining unclaimed property shall be applied first toward the payment of the outstanding restitution or fines, fees, costs, or surcharges and processed in accordance with section 38-13-117.5 and then applied to the payment of delinquent state taxes, penalties, or interest and processed in accordance with section 38-13-117.7. Colorado Revised Statutes 2019 Page 146 of 707 Uncertified Printout (c) If a claimant owes restitution or fines, fees, costs, or surcharges or delinquent state taxes, penalties, or interest, after payment in accordance with paragraph (a) of this subsection (2), if applicable, any remaining unclaimed property shall be applied toward the payment of the outstanding restitution or fines, fees, costs, or surcharges and processed in accordance with section 38-13-117.5 or toward the delinquent state taxes, penalties, or interest and processed in accordance with section 38-13-117.7, whichever is applicable. Source: L. 2005: Entire section added, p. 699, § 5, effective August 8. 38-13-117.5. Claims offset for judicial restitution, fines, fees, costs, or surcharges. [Editor's note: This section is effective until July 1, 2020.] (1) Before paying a claim in an amount exceeding six hundred dollars pursuant to section 38-13-117 (3), the administrator shall offset against the amount of the claim the claimant's outstanding court fines, fees, costs, or surcharges or restitution. The administrator may enter into a memorandum of understanding with the judicial department to implement this section and sections 16-11-101.6 (6) and 16-18.5106.7, C.R.S. (2) If a claimant owes fines, fees, costs, or surcharges or restitution as described in this section and also owes current child support, child support debt, retroactive child support, child support arrearages, child support costs, or child support when combined with maintenance as described in section 38-13-117.3 or delinquent state taxes, penalties, or interest as described in section 38-13-117.7, or both, the unclaimed property offsets shall be applied in accordance with the priority set forth in section 38-13-117.3 (2). Source: L. 2005: Entire section added, p. 700, § 5, effective August 8. 38-13-117.7. Claims offset for state tax delinquencies. [Editor's note: This section is effective until July 1, 2020.] (1) Before paying a claim in an amount exceeding six hundred dollars pursuant to section 38-13-117 (3), the administrator shall compare the social security number or federal employer identification number of the claimant with the numbers certified by the department of revenue for the purpose of the unclaimed property offset as provided in section 39-21-121, C.R.S. (2) If the social security number or federal employer identification number of a claimant appears among the numbers certified by the department of revenue pursuant to section 39-21121, C.R.S., the administrator shall suspend the payment of the claim until the requirements of section 39-21-121, C.R.S., are met. If, after consulting with the department, the administrator determines that the claimant is obligated to pay the amounts certified under section 39-21-121, C.R.S., the administrator shall withhold from the amount of the unclaimed property paid to the claimant an amount equal to the amount of delinquent state taxes, penalties, or interest. If the amount of the unclaimed property is less than or equal to the amount of delinquent state taxes, penalties, or interest, the administrator shall withhold the entire amount of the unclaimed Colorado Revised Statutes 2019 Page 147 of 707 Uncertified Printout property. The administrator shall transmit any unclaimed property so withheld to the department for disbursement as directed in section 39-21-121, C.R.S. (3) If a claimant owes delinquent state taxes, penalties, or interest as described in this section and also owes current child support, child support debt, retroactive child support, child support arrearages, child support costs, or child support when combined with maintenance as described in section 38-13-117.3 or restitution or fines, fees, costs, or surcharges as described in section 38-13-117.5, or both, the unclaimed property offset shall be applied in accordance with the priority set forth in section 38-13-117.3 (2). Source: L. 2005: Entire section added, p. 700, § 5, effective August 8. 38-13-118. Claim of another state to recover property - procedure. [Editor's note: This section is effective until July 1, 2020.] (1) At any time after property has been paid or delivered to the administrator under this article, another state may recover the property if: (a) The property was subjected to custody by this state because the records of the holder did not reflect the last-known address of the apparent owner when the property was presumed abandoned under this article and the other state establishes that the last-known address of the apparent owner or other person entitled to the property was in that state and that, under the laws of that state, the property escheated to or was subject to a claim of abandonment by that state; (b) The last-known address of the apparent owner or other person entitled to the property, as reflected by the records of the holder, is in the other state and, under the laws of that state, the property has escheated to or become subject to a claim of abandonment by that state; (c) The records of the holder were erroneous in that they did not accurately reflect the actual owner of the property and the last-known address of the actual owner is in the other state and, under the laws of that state, the property escheated to or was subject to a claim of abandonment by that state; (d) The property was subjected to custody by this state under section 38-13-104 (1)(f) and, under the laws of the state of domicile of the holder, the property has escheated to or become subject to a claim of abandonment by that state; or (e) The property is the sum payable on a money order or other similar instrument that was subjected to custody by this state under section 38-13-105 and the instrument was purchased in the other state and, under the laws of that state, the property escheated to or became subject to a claim of abandonment by that state. (2) The claim of another state to recover escheated or abandoned property must be presented in a form prescribed by the administrator, who shall decide the claim within ninety days after it is presented. The administrator shall allow the claim if he determines that the other state is entitled to the abandoned property under subsection (1) of this section. (3) The administrator shall require a state, before recovering property under this section, to agree to indemnify this state and its officers and employees against any liability on a claim for the property. Colorado Revised Statutes 2019 Page 148 of 707 Uncertified Printout Source: L. 87: Entire article added, p. 1327, § 1, effective July 1. 38-13-118.5. Claim of the state or governmental agency. [Editor's note: This section is effective until July 1, 2020.] At any time after property has been paid or delivered to the administrator under this article, if the administrator determines that the state or a state governmental agency owns the property, the administrator may transfer the property to an operating account of the state or the agency. Source: L. 2004: Entire section added, p. 1877, § 5, effective August 4. 38-13-119. Action to establish claim. [Editor's note: This section is effective until July 1, 2020.] A person aggrieved by a decision of the administrator or whose claim has not been acted upon within ninety days after its filing may bring an action to establish the claim in a court of competent jurisdiction, naming the administrator as a defendant. The action must be brought within ninety days after the decision of the administrator or within one hundred eighty days after the filing of the claim if he has failed to act on it. If the aggrieved person establishes the claim in an action against the administrator, he shall be entitled to an award of costs and reasonable attorney fees. Source: L. 87: Entire article added, p. 1328, § 1, effective July 1. 38-13-120. Election to take payment or delivery. [Editor's note: This section is effective until July 1, 2020.] (1) The administrator may decline to receive any property reported under this article that the administrator considers to have a value less than the expense of giving notice and of sale. If the administrator elects not to receive custody of the property, the holder shall be notified within one hundred twenty days after filing the report required under section 3813-110. (2) A holder, with the written consent of the administrator and upon conditions and terms prescribed by him, may report and deliver property before the property is presumed abandoned. Property delivered under this subsection (2) must be held by the administrator and is not presumed abandoned until such time as it otherwise would be presumed abandoned under this article. Source: L. 87: Entire article added, p. 1328, § 1, effective July 1. L. 92: (1) amended, p. 2113, § 10, effective March 4. L. 95: (1) amended, p. 527, § 9, effective May 16. 38-13-121. Destruction or disposition of property having insubstantial commercial value - immunity from liability. [Editor's note: This section is effective until July 1, 2020.] If the administrator determines after investigation that any property delivered under this article has insubstantial commercial value, the administrator may destroy or otherwise dispose of the property at any time. No action or proceeding may be maintained against the state or any officer Colorado Revised Statutes 2019 Page 149 of 707 Uncertified Printout or against the holder for or on account of any action taken by the administrator pursuant to this section. Source: L. 87: Entire article added, p. 1329, § 1, effective July 1. 38-13-122. Periods of limitation. [Editor's note: This section is effective until July 1, 2020.] (1) The expiration, before or after July 1, 1987, of any period of time specified by contract, statute, or court order, during which a claim for money or property can be made or during which an action or proceeding may be commenced or enforced to obtain payment of a claim for money or to recover property, does not prevent the money or property from being presumed abandoned or affect any duty to file a report or to pay or deliver abandoned property to the administrator as required by this article. (2) No action or proceeding may be commenced by the administrator with respect to any duty of a holder under this article more than five years after the duty arose. Source: L. 87: Entire article added, p. 1329, § 1, effective July 1. 38-13-123. Requests for reports and examination of records. [Editor's note: This section is effective until July 1, 2020.] (1) The administrator may require any person who has not filed a report to file one stating whether or not the person is holding any unclaimed property reportable or deliverable under this article. (2) Except as otherwise provided in subsection (7) of this section, the administrator, at reasonable times and upon reasonable notice, may examine the records of any person to determine whether the person has complied with the provisions of this article. The administrator may conduct the examination even if the person believes he is not in possession of any property reportable or deliverable under this article. (3) If a person is treated under section 38-13-107 as the holder of the property only insofar as the interest of the business association in the property is concerned, the administrator, pursuant to subsection (2) of this section, may examine the records of the person if the administrator has given the notice required by subsection (2) of this section to both the person and the business association at least ninety days before the examination. (4) If an examination of the records of a person results in the disclosure of property reportable and deliverable under this article, the administrator may assess the cost of the examination against the holder at the rate of fifty dollars a day for each examiner, but in no case may the charges exceed the value of the property found to be reportable and deliverable. The cost of examination made pursuant to subsection (3) of this section may be imposed only against the banking or financial organization. (5) On or after July 1, 1987, if a holder fails to maintain records in existence on or after July 1, 1987, that are required by section 38-13-124 and, in addition, if the records of the holder available for the periods subject to this article are insufficient to permit the preparation of a Colorado Revised Statutes 2019 Page 150 of 707 Uncertified Printout report pursuant to section 38-13-110, then the administrator may require the holder to report and pay such amounts as may reasonably be estimated from any available records. (6) Repealed. (7) Any examination under this section of the records of a business association with annual gross receipts of less than five hundred thousand dollars arising from a report filed under this article by such an association shall be conducted by the administrator within three years from the date of filing such report. Source: L. 87: Entire article added, p. 1329, § 1, effective July 1; (5) amended and (6) added, p. 1335, § 5, effective July 1. L. 92: (5) amended, p. 2113, § 11, effective March 4; (6) repealed, p. 2120, § 8, effective July 1. L. 93: (2) amended and (7) added, p. 1076, § 7, effective July 1. L. 95: (1) and (5) amended, p. 527, § 10, effective May 16. Editor's note: Section 7 of chapter 275, Session Laws of Colorado 1987, provides that the act set out in that chapter amending subsection (5) and enacting subsection (6) is effective July 1, 1987, but the governor did not approve the act until July 10, 1987. 38-13-124. Retention of records. [Editor's note: This section is effective until July 1, 2020.] (1) Every holder required to file a report under section 38-13-110, as to any property for which it has obtained the last-known address of the owner, shall maintain a record of the name and last-known address of the owner for five years after the property becomes reportable, except to the extent that a shorter time is provided in subsection (2) of this section or by rule of the administrator. (2) Any banking or financial organization that sells in this state its money orders or other similar written instruments, other than third-party bank checks on which the banking or financial organization is directly liable, or that provides such instruments to others for sale in this state, shall maintain a record of those instruments while they remain outstanding, indicating the state and date of issue for three years after the date the property is reportable. Source: L. 87: Entire article added, p. 1330, § 1, effective July 1. L. 92: (1) amended, p. 2113, § 12, effective March 4. L. 95: (1) amended, p. 527, § 11, effective May 16. 38-13-125. Enforcement. [Editor's note: This section is effective until July 1, 2020.] The administrator may bring an action in a court of competent jurisdiction to enforce this article. Source: L. 87: Entire article added, p. 1330, § 1, effective July 1. 38-13-126. Interstate agreements and cooperation - joint and reciprocal actions with other states. [Editor's note: This section is effective until July 1, 2020.] (1) The administrator may enter into agreements with other states to exchange information needed to enable this or another state to audit or otherwise determine unclaimed property that it or another Colorado Revised Statutes 2019 Page 151 of 707 Uncertified Printout state may be entitled to subject to a claim of custody. The administrator by rule may require the reporting of information needed to enable compliance with agreements made pursuant to this section and prescribe the form of such reporting. (2) To avoid conflicts between the administrator's procedures and the procedures of administrators in other jurisdictions that enact unclaimed property legislation, the administrator, so far as is consistent with the purposes, policies, and provisions of this article, before adopting, amending, or repealing rules, shall advise and consult with administrators in other jurisdictions that enact such legislation and take into consideration the rules of administrators in those jurisdictions. (3) The administrator may join with other states to seek enforcement of this article against any person who is or may be holding property reportable under this article. (4) At the request of another state, the attorney general of this state may bring an action in the name of the administrator of the other state in any court of competent jurisdiction to enforce the unclaimed property laws of the other state against a holder in this state of property subject to escheat or a claim of abandonment by the other state if the other state has agreed to pay expenses incurred by the attorney general in bringing the action. (5) The administrator may request that the attorney general of another state or any other person bring an action in the name of the administrator in the other state. This state shall pay all expenses including attorney fees in any action under this subsection (5). Any expenses paid pursuant to this subsection (5) may not be deducted from the amount that is subject to the claim by the owner under this article. Source: L. 87: Entire article added, p. 1330, § 1, effective July 1. 38-13-127. Interest and penalties. [Editor's note: This section is effective until July 1, 2020.] (1) A person who fails to pay or deliver property within the time prescribed by this article shall pay to the administrator interest at the annual rate of eighteen percent on the property or value thereof from the date the property should have been paid or delivered. (2) A person who willfully fails to render any report or perform other duties required under this article shall pay a civil penalty of one hundred dollars for each day the report is withheld or the duty is not performed, but not more than five thousand dollars. (3) A person who willfully fails to pay or deliver property to the administrator as required under this article shall pay a civil penalty equal to twenty-five percent of the value of the property that should have been paid or delivered. (4) A person who willfully refuses after written demand by the administrator to pay or deliver property to the administrator as required under this article shall pay a civil penalty, in addition to any other civil penalty provided by this section, of three times the value of any property held by said person. (5) (a) Any business association with annual gross receipts of less than five hundred thousand dollars that, in good faith compliance, acts within the scope of the duties and responsibilities of this article shall be immune from the penalties and interest of this section for Colorado Revised Statutes 2019 Page 152 of 707 Uncertified Printout failure to pay or deliver property or to render any report required by this article. For purposes of this article, there shall be a presumption of good faith compliance when such a business association has filed the initial or annual report required by this article and a principal of such business association has attested, as evidenced by such principal's signature on such report, that such business association has made reasonable efforts to determine if such business holds any property presumed abandoned under this article. The presumption of good faith compliance may be rebutted by the administrator upon a showing by a preponderance of evidence that such a business association's actions were knowingly false, deliberately misleading, or made for a malicious purpose. (b) The administrator shall explain what constitutes good faith compliance with regard to the reporting and payment or delivery requirements of this article in any document, manual, or request distributed by the administrator to such a business association in connection with this article. Source: L. 87: Entire article added, p. 1331, § 1, effective July 1. L. 93: (5) added, p. 1077, § 8, effective July 1. 38-13-128. Agreements to locate reported property - general provisions. [Editor's note: This section is effective until July 1, 2020.] (1) All agreements to pay compensation to recover or assist in the recovery of property reported under section 38-13-110 entered into within twenty-four months after the date payment or delivery is made under section 38-13-112 are unenforceable. (2) Any agreement to pay compensation to recover or assist in the recovery of property reported under section 38-13-110 entered into more than twenty-four months, but less than thirty-six months, after the date payment or delivery is made under section 38-13-112 is enforceable if: (a) The agreement is in writing and signed by the owner of the property; (b) The agreement describes the property to be recovered; (c) The agreement sets forth the nature of the services to be provided; and (d) The compensation to be paid under the terms of the agreement is not in excess of twenty percent of the market value of the recoverable property. (3) Any agreement to pay compensation to recover or assist in the recovery of property reported under section 38-13-110 entered into thirty-six months or more after the date payment or delivery is made under section 38-13-112 is enforceable if: (a) The agreement is in writing and signed by the owner of the property; (b) The agreement describes the property to be recovered; (c) The agreement sets forth the nature of the services to be provided; and (d) The compensation to be paid under the terms of the agreement is not in excess of thirty percent of the market value of the recoverable property. Colorado Revised Statutes 2019 Page 153 of 707 Uncertified Printout (4) Nothing in subsections (2) and (3) of this section shall be construed to prohibit an owner from asserting, at any time, that a written, signed agreement to recover or assist in the recovery of property is based on excessive or unjust consideration. (5) The restrictions on agreements to pay compensation to recover or assist in the recovery of property set forth in this section shall not apply to any agreement to pay compensation to recover or assist in the recovery of property reported under section 38-13-110 if such property has a total value of less than one thousand dollars. (6) This section does not apply to agreements to recover or assist in recovering unclaimed overbids transferred to the administrator under section 38-38-111. Source: L. 87: Entire article added, p. 1331, § 1, effective July 1. L. 92: Entire section amended, p. 2113, § 13, effective March 4. L. 95: Entire section amended, p. 528, § 12, effective May 16. L. 98: Entire section amended, p. 106, § 1, effective August 5. L. 2016: (6) added, (HB 16-1090), ch. 97, p. 278, § 5, effective August 10. Cross references: For the legislative declaration in HB 16-1090, see section 1 of chapter 97, Session Laws of Colorado 2016. 38-13-128.5. Agreements to locate reported property - overbids from foreclosure sales. [Editor's note: This section is effective until July 1, 2020.] (1) An agreement to pay compensation to recover or assist in recovering an unclaimed overbid transferred to the administrator under section 38-38-111 is: (a) Not enforceable unless entered into at least two years after the date of the transfer; (b) Enforceable if: (I) The agreement is in writing and signed by the owner, as defined in section 38-38-111 (5); (II) The agreement describes the property and the date of the foreclosure sale from which the overbid was derived; (III) The agreement sets forth the nature of the services to be provided; and (IV) The compensation to be paid under the terms of the agreement does not exceed: (A) Twenty percent of the amount of the overbid if entered into at least two years, but not more than three years, after the date of the transfer; or (B) Thirty percent of the amount of the overbid if entered into more than three years after the date of the transfer. (2) A person who induces or attempts to induce another person to enter into an agreement described in this section that does not comply with all requirements of subsection (1) of this section commits a misdemeanor, as defined in section 18-1.3-504, C.R.S., and is subject to imprisonment in county jail for up to six months, a fine of up to ten thousand dollars, or both. (3) Nothing in subsection (1) of this section prohibits an owner from asserting, at any time, that a written, signed agreement to recover or assist in recovering an overbid is based on excessive or unjust consideration. Colorado Revised Statutes 2019 Page 154 of 707 Uncertified Printout (4) The restrictions set forth in this section do not apply to an agreement to pay compensation to recover or assist in recovering an overbid of less than one thousand dollars. Source: L. 2016: Entire section added, (HB 16-1090), ch. 97, p. 278, § 6, effective August 10. Cross references: For the legislative declaration in HB 16-1090, see section 1 of chapter 97, Session Laws of Colorado 2016. 38-13-129. Foreign transactions. [Editor's note: This section is effective until July 1, 2020.] This article does not apply to any property held, due, and owing in a foreign country and arising out of a foreign transaction. Source: L. 87: Entire article added, p. 1331, § 1, effective July 1. 38-13-130. Effect of new provisions - clarification of application. [Editor's note: This section is effective until July 1, 2020.] (1) This article does not relieve a holder of a duty that arose before July 1, 1987, to report, pay, or deliver property. A holder who did not comply with the law in effect before July 1, 1987, is subject to the applicable enforcement and penalty provisions that then existed, and they are continued in effect for the purpose of this subsection (1), subject to section 38-13-122 (2). (2) (a) The initial report filed under this article for property that was not required to be reported before July 1, 1987, but that is subject to this article must include all items of property for which the presumption of abandonment first arose during the five-year period preceding July 1, 1987, as if this article had been in effect during that period. (b) The initial report filed under this article for property that was not required to be reported before July 1, 1992, but that is subject to this article must include all items of property for which the presumption of abandonment first arose during the five-year period preceding July 1, 1992, as if this article had been in effect during that period. Any person who has not reported as of July 1, 1992, shall not be penalized for not reporting prior to November 1, 1993. Source: L. 87: Entire article added, p. 1331, § 1, effective July 1. L. 92: (2) amended, p. 2120, § 9, effective July 1. L. 95: (2) amended, p. 528, § 13, effective July 1. 38-13-131. Rules. [Editor's note: This section is effective until July 1, 2020.] The administrator shall adopt rules and regulations pursuant to section 24-4-103, C.R.S., to effectuate the purposes of this article. Source: L. 87: Entire article added, p. 1331, § 1, effective July 1. Colorado Revised Statutes 2019 Page 155 of 707 Uncertified Printout 38-13-132. Uniformity of application and construction. [Editor's note: This section is effective until July 1, 2020.] This article shall be applied and construed so as to effectuate its general purpose to make uniform the law with respect to the subject of this article among states enacting similar legislation. Source: L. 87: Entire article added, p. 1331, § 1, effective July 1. 38-13-133. Applicability - exclusions. (Repealed) Source: L. 87: Entire article added, p. 1331, § 1, effective July 1. L. 88: Entire section amended, p. 1433, § 21, effective June 11. L. 90: Entire section amended, p. 1636, § 9, effective April 27. L. 92: Entire section amended, p. 2114, § 14, effective March 4. L. 93: Entire section repealed, p. 1075, § 3, effective July 1. 38-13-134. Application of article to other sections. [Editor's note: This section is effective until July 1, 2020.] This article applies to any unclaimed or intangible property as provided in this article; but, where there is a conflict between this article and a specific statutory provision or local law relating to the disposition of tangible or intangible unclaimed property, such specific statutory provision or local law shall control the disposition of said property. Source: L. 87: Entire article added, p. 1332, § 1, effective July 1. L. 92: Entire section amended, p. 2120, § 10, effective July 1. ARTICLE 13 Revised Uniform Unclaimed Property Act Editor's note: This article 13 was added in 1987. It was repealed and reenacted in 2019, effective July 1, 2020, resulting in the addition, relocation, or elimination of sections as well as subject matter. For amendments to this article 13 prior to 2020, consult the 2019 Colorado Revised Statutes and the Colorado statutory research explanatory note beginning on page vii in the front of this volume. Former C.R.S. section numbers are shown in editor's notes following those sections that were relocated. For the law in effect until July 1, 2020, see page 188. Cross references: For provisions concerning unclaimed utility deposits, see article 8.5 of title 40. Law reviews: For article, "Colorado's Unclaimed Property Act: An Overview", see 17 Colo. Law. 57 (1988). PART 1 Colorado Revised Statutes 2019 Page 156 of 707 Uncertified Printout IN GENERAL 38-13-101. Short title. [Editor's note: This section is effective July 1, 2020.] The short title of this article 13 is the "Revised Uniform Unclaimed Property Act". Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 407, § 1, effective July 1, 2020. 38-13-102. Definitions. [Editor's note: This section is effective July 1, 2020.] As used in this article 13, unless the context otherwise requires: (1) "Administrator" means the state treasurer. (2) "Administrator's agent" means a person with whom the administrator contracts to conduct an examination under part 10 of this article 13 on behalf of the administrator. The term includes an independent contractor of the person and each individual participating in the examination on behalf of the person or contractor. (3) "Apparent owner" means a person whose name appears on the records of a holder as the owner of property held, issued, or owing by the holder. (4) "Business association" means an "entity" as defined in section 7-90-102 (20), but does not include an investment company registered under the federal "Investment Company Act of 1940", as amended, 15 U.S.C. secs. 80a-1 to 80a-64. (5) "Confidential information" means records, reports, and information that are confidential under section 38-13-1402. (6) "Domicile" means: (a) For a corporation, the state of its incorporation; (b) For a business association whose formation requires a filing with a state, other than a corporation, the state of its filing; (c) For a federally chartered entity or an investment company registered under the federal "Investment Company Act of 1940", as amended, 15 U.S.C. secs. 80a-1 to 80a-64, the state of its home office; and (d) For any other holder, the state of its principal place of business. (7) "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities. (8) "Electronic mail" means any communication of information by electronic means that is automatically retained and stored and may be readily accessed or retrieved. (9) "Financial organization" means a savings and loan association, building and loan association, savings bank, industrial bank, bank, banking organization, or credit union. (10) "Game-related digital content" means digital content that exists only in an electronic game or electronic-game platform. The term: (a) Includes: (I) Game-play currency such as a virtual wallet, even if denominated in United States currency; and Colorado Revised Statutes 2019 Page 157 of 707 Uncertified Printout (II) The following if for use or redemption only within that game or platform or another electronic game or electronic-game platform: (A) Points sometimes referred to as gems, tokens, gold, and similar names; and (B) Digital codes; and (b) Does not include an item that the issuer: (I) Permits to be redeemed for use outside of a game or platform for: (A) Money; or (B) Goods or services that have more than minimal value; or (II) Otherwise monetizes for use outside of a game or platform. (11) "Gift card": (a) Means a stored-value card: (I) The value of which does not expire; (II) That may be decreased in value only by redemption for merchandise, goods, or services; and (III) That, unless required by law, may not be redeemed for or converted into money or otherwise monetized by the issuer; and (b) Includes a prepaid commercial mobile radio service, as defined in 47 CFR 20.3, as amended. (12) "Holder" means a person obligated to hold for the account of, or to deliver or pay to, the owner property that is subject to this article 13. (13) "Insurance company" means an association, corporation, or fraternal or mutualbenefit organization, whether or not for profit, engaged in the business of providing life endowments, annuities, or insurance, including accident, burial, casualty, credit-life, contractperformance, dental, disability, fidelity, fire, health, hospitalization, illness, life, malpractice, marine, mortgage, surety, wage-protection, and workers' compensation insurance. (14) "Loyalty card" means a record given without direct monetary consideration, under an award, reward, benefit, loyalty, incentive, rebate, or promotional program, that may be used or redeemed only to obtain goods or services or a discount on goods or services. The term does not include a record that may be redeemed for money or otherwise monetized by the issuer. (15) "Mineral" means gas, oil, coal, oil shale, other gaseous liquid or solid hydrocarbon, cement material, sand and gravel, road material, building stone, chemical raw material, gemstone, fissionable and nonfissionable ores, colloidal and other clay, steam and other geothermal resources, and any other substance defined as a mineral under Colorado law other than this article 13. (16) "Mineral proceeds" means an amount payable for extraction, production, or sale of minerals or, on the abandonment of the amount, the amount that becomes payable after abandonment. The term includes an amount payable: (a) For the acquisition and retention of a mineral lease, including a bonus, royalty, compensatory royalty, shut-in royalty, minimum royalty, and delay rental; (b) For the extraction, production, or sale of minerals, including a net revenue interest, royalty, overriding royalty, extraction payment, and production payment; and Colorado Revised Statutes 2019 Page 158 of 707 Uncertified Printout (c) Under an agreement or option, including a joint operating agreement, unit agreement, pooling agreement, and farm-out agreement. (17) "Money order" means a payment order for a specified amount of money and includes an express money order and a personal money order on which the remitter is the purchaser. (18) "Municipal bond" means a bond or evidence of indebtedness issued by a municipality or other political subdivision of a state. (19) "Net card value" means the original purchase price or original issued value of a stored-value card, plus amounts added to the original price or value and minus amounts used and any service charge, fee, or dormancy charge permitted by law. (20) "Nonfreely transferable security" means a security that cannot be delivered to the administrator by the Depository Trust Clearing Corporation or a similar custodian of securities providing post-trade clearing and settlement services to financial markets or cannot be delivered because there is no agent to effect transfer. The term includes a worthless security. (21) "Owner" means a person that has a legal, beneficial, or equitable interest in property subject to this article 13 or the person's legal representative when acting on behalf of the owner. The term includes: (a) A depositor, for a deposit; (b) A beneficiary, for a trust other than a deposit in trust; (c) A creditor, claimant, or payee, for other property; and (d) The lawful bearer of a record that may be used to obtain money, a reward, or a thing of value. (22) "Payroll card" means a record that evidences a payroll-card account as defined in Regulation E, 12 CFR Part 1005, as amended. (23) "Person" means an individual; estate; business association; public corporation; government or governmental subdivision, agency, or instrumentality; or other legal entity. (24) "Property" means tangible property described in section 38-13-205 or a fixed and certain interest in intangible property held, issued, or owed in the course of a holder's business or by a government, governmental subdivision, agency, or instrumentality. The term: (a) Includes all income from or increments to the property; (b) Includes property referred to as or evidenced by: (I) Money, virtual currency, interest, dividend, a check, draft, deposit, or payroll card; (II) A credit balance, customer's overpayment, stored-value card, security deposit, refund, credit memorandum, unpaid wage, unused ticket for which the issuer has an obligation to provide a refund, mineral proceeds, or unidentified remittance; (III) A security except for: (A) A worthless security; or (B) A security that is subject to a lien, legal hold, or restriction evidenced on the records of the holder or imposed by operation of law, if the lien, legal hold, or restriction restricts the holder's or owner's ability to receive, transfer, sell, or otherwise negotiate the security; (IV) A bond, debenture, note, or other evidence of indebtedness; Colorado Revised Statutes 2019 Page 159 of 707 Uncertified Printout (V) Money deposited to redeem a security, make a distribution, or pay a dividend; (VI) An amount due and payable under the terms of an annuity contract or insurance policy; and (VII) An amount distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profitsharing, employee-savings, supplemental-unemployment insurance, or similar benefits; and (c) Does not include: (I) Property held in a plan described in section 529A of the federal "Internal Revenue Code of 1986", as amended, 26 U.S.C. sec. 529A; (II) Game-related digital content; (III) A loyalty card; (IV) A paper certificate that is redeemable upon presentation for goods or services; or (V) Unclaimed capital credit payments held by cooperative electric associations and telephone cooperatives. (25) "Putative holder" means a person believed by the administrator to be a holder, until the person pays or delivers to the administrator property subject to this article 13 or the administrator or a court makes a final determination that the person is or is not a holder. (26) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. (27) "Security" means: (a) A security as defined in section 4-8-102 (15); or (b) A security entitlement as defined in section 4-8-102 (17), including a customer security account held by a registered broker-dealer to the extent that the financial assets held in the security account are not: (I) Registered on the books of the issuer in the name of the person for which the brokerdealer holds the assets; (II) Payable to the order of the person; or (III) Specifically indorsed to the person; or (c) An equity interest in a business association not included in subsection (27)(a) or (27)(b) of this section. (28) "Sign" means, with present intent to authenticate or adopt a record: (a) To execute or adopt a tangible symbol; or (b) To attach to or logically associate with the record an electronic symbol, sound, or process. (29) "State" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. (30) "Stored-value card": (a) Means a record evidencing a promise made for consideration by the seller or issuer of the record that goods, services, or money will be provided to the owner of the record to the value or amount shown in the record; Colorado Revised Statutes 2019 Page 160 of 707 Uncertified Printout (b) Includes: (I) A record that contains or consists of a microprocessor chip, magnetic strip, or other means for the storage of information, that is prefunded and whose value or amount is decreased on each use and increased by payment of additional consideration; (II) A gift card, except as specified in section 38-13-219; and (III) A payroll card; and (c) Does not include a loyalty card or game-related digital content. (31) "Utility" means a person that owns or operates for public use a plant, equipment, real property, franchise, or license for the following public services: (a) Transmission of communications or information; (b) Production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, or gas; or (c) Provision of sewage and septic services or trash, garbage, or recycling disposal. (32) "Virtual currency" means a digital representation of value used as a medium of exchange, unit of account, or a store of value, but does not have legal tender status as recognized by the United States. The term does not include: (a) The software or protocols governing the transfer of the digital representation of value; (b) Game-related digital content; or (c) A loyalty card. (33) "Worthless security" means a security whose cost of liquidation and delivery to the administrator would exceed the value of the security on the date a report is due under this article 13. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 407, § 1, effective July 1, 2020. 38-13-103. Inapplicability to wholly foreign transaction. [Editor's note: This section is effective July 1, 2020.] This article 13 does not apply to property held, due, and owing in a foreign country if the transaction out of which the property arose was a foreign transaction. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 413, § 1, effective July 1, 2020. 38-13-104. Rule-making. [Editor's note: This section is effective July 1, 2020.] The administrator may adopt under the "State Administrative Procedure Act", article 4 of title 24, rules to implement and administer this article 13. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 413, § 1, effective July 1, 2020. Colorado Revised Statutes 2019 Page 161 of 707 Uncertified Printout PART 2 PRESUMPTION OF ABANDONMENT 38-13-201. When property presumed abandoned. [Editor's note: This section is effective July 1, 2020.] (1) Subject to section 38-13-210, the following property is presumed abandoned if it is unclaimed by the apparent owner during the period specified in this section: (a) A traveler's check, fifteen years after issuance; (b) A money order, seven years after issuance; (c) A state or municipal bond, a bearer bond, or an original-issue-discount bond, three years after the earliest of the date the bond matures or is called or the obligation to pay the principal of the bond arises; (d) A debt of a business association, three years after the obligation to pay arises; (e) Demand, savings, or time deposit, including a deposit that is automatically renewable, five years after the maturity of the deposit; except that a deposit that is automatically renewable is deemed matured on its initial date of maturity unless the apparent owner consented in a record on file with the holder to renewal at or about the time of the renewal; (f) Money or a credit owed to a customer as a result of a retail business transaction, other than in-store credit for returned merchandise, three years after the obligation arose; (g) An amount owed by an insurance company on a life or endowment insurance policy or an annuity contract that has matured or terminated, three years after the obligation to pay arose under the terms of the policy or contract or, if a policy or contract for which an amount is owed on proof of death has not matured by proof of the death of the insured or annuitant, as follows: (I) With respect to an amount owed on a life or endowment insurance policy, three years after the earlier of the date: (A) The insurance company has knowledge of the death of the insured; or (B) The insured has attained, or would have attained if living, the limiting age under the mortality table on which the reserve for the policy is based; and (II) With respect to an amount owed on an annuity contract, three years after the date the insurance company has knowledge of the death of the annuitant; (h) Property distributable by a business association in the course of dissolution, one year after the property becomes distributable; (i) Property held by a court, including property received as proceeds of a class action, one year after the property becomes distributable; (j) Property held by a government or governmental subdivision, agency, or instrumentality, including municipal bond interest and unredeemed principal under the administration of a paying agent or indenture trustee, one year after the property becomes distributable; Colorado Revised Statutes 2019 Page 162 of 707 Uncertified Printout (k) Wages, commissions, bonuses, or reimbursements to which an employee is entitled, or other compensation for personal services, other than amounts held in a payroll card, one year after the amount becomes payable; (l) Except as otherwise provided for unclaimed utility deposits under section 40-8.5-106, a deposit or refund owed to a subscriber by a utility, one year after the deposit or refund becomes payable; and (m) All other property not specified in this section or sections 38-13-202 to 38-13-208 and 38-13-213 to 38-13-220, the earlier of three years after the owner first has a right to demand the property or the obligation to pay or distribute the property arises. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 414, § 1, effective July 1, 2020. 38-13-202. When tax-deferred retirement account presumed abandoned. [Editor's note: This section is effective July 1, 2020.] (1) Subject to section 38-13-210, property held in a pension account or retirement account that qualifies for tax deferral under the income tax laws of the United States is presumed abandoned if it is unclaimed by the apparent owner three years after the later of: (a) The following dates: (I) Except as otherwise provided in subsection (1)(b)(II) of this section, the date a second consecutive communication sent by the holder by first-class United States mail to the apparent owner is returned to the holder undelivered by the United States postal service; or (II) If the second communication is sent later than thirty days after the date the first communication is returned undelivered, the date the first communication was returned undelivered by the United States postal service; or (b) The earlier of the following dates: (I) The date the apparent owner becomes seventy and one-half years of age, if reasonably determinable by the holder; or (II) If the federal "Internal Revenue Code of 1986", as amended, 26 U.S.C. sec. 1 et seq., requires distribution to avoid a tax penalty, two years after the date the holder: (A) Receives confirmation of the death of the apparent owner in the ordinary course of its business; or (B) Confirms the death of the apparent owner under subsection (2) of this section. (2) If a holder in the ordinary course of its business receives notice or an indication of the death of an apparent owner and subsection (1)(b) of this section applies, the holder shall attempt not later than ninety days after receipt of the notice or indication to confirm whether the apparent owner is deceased. (3) If the holder does not send communications to the apparent owner of an account described in subsection (1) of this section by first-class United States mail, the holder shall attempt to confirm the apparent owner's interest in the property by sending the apparent owner an electronic-mail communication not later than two years after the apparent owner's last Colorado Revised Statutes 2019 Page 163 of 707 Uncertified Printout indication of interest in the property; except that the holder promptly shall attempt to contact the apparent owner by first-class United States mail if: (a) The holder does not have information needed to send the apparent owner an electronic-mail communication or the holder believes that the apparent owner's electronic-mail address in the holder's records is not valid; (b) The holder receives notification that the electronic-mail communication was not received; or (c) The apparent owner does not respond to the electronic-mail communication not later than thirty days after the communication was sent. (4) If first-class United States mail sent under subsection (3) of this section is returned to the holder undelivered by the United States postal service, the property is presumed abandoned three years after the later of: (a) Except as otherwise provided in subsection (4)(b) of this section, the date a second consecutive communication to contact the apparent owner sent by first-class United States mail is returned to the holder undelivered; (b) If the second communication is sent later than thirty days after the date the first communication is returned undelivered, the date the first communication was returned undelivered; or (c) The date established by subsection (1)(b) of this section. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 415, § 1, effective July 1, 2020. 38-13-203. When other tax-deferred account presumed abandoned. [Editor's note: This section is effective July 1, 2020.] (1) Subject to section 38-13-210 and except for property described in section 38-13-202 and property held in a plan described in section 529A of the federal "Internal Revenue Code of 1986", as amended, 26 U.S.C. sec. 529A, property held in an account or plan, including a health savings account, that qualifies for tax deferral under the income tax laws of the United States is presumed abandoned if it is unclaimed by the owner three years after the earlier of: (a) The date, if reasonably determinable by the holder, specified in the income tax laws and regulations of the United States by which distribution of the property must begin to avoid a tax penalty, with no distribution having been made; or (b) Thirty years after the date the account was opened. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 416, § 1, effective July 1, 2020. 38-13-204. When custodial account for minor presumed abandoned. [Editor's note: This section is effective July 1, 2020.] (1) Subject to section 38-13-210, property held in an account established under a state's Uniform Gifts to Minors Act or Uniform Transfers to Minors Colorado Revised Statutes 2019 Page 164 of 707 Uncertified Printout Act is presumed abandoned if it is unclaimed by or on behalf of the minor on whose behalf the account was opened three years after the later of: (a) Except as otherwise provided in subsection (1)(b) of this section, the date a second consecutive communication sent by the holder by first-class United States mail to the custodian of the minor on whose behalf the account was opened is returned undelivered to the holder by the United States postal service; (b) If the second communication is sent later than thirty days after the date the first communication is returned undelivered, the date the first communication was returned undelivered; or (c) The date, if reasonably determinable by the holder, on which the custodian is required to transfer the property to the minor or the minor's estate in accordance with the Uniform Gifts to Minors Act or Uniform Transfers to Minors Act of the state in which the account was opened. (2) If the holder does not send communications to the custodian of the minor on whose behalf an account described in subsection (1) of this section was opened by first-class United States mail, the holder shall attempt to confirm the custodian's interest in the property by sending the custodian an electronic-mail communication not later than two years after the custodian's last indication of interest in the property; except that the holder promptly shall attempt to contact the custodian by first-class United States mail if: (a) The holder does not have information needed to send the custodian an electronicmail communication or the holder believes that the custodian's electronic-mail address in the holder's records is not valid; (b) The holder receives notification that the electronic-mail communication was not received; or (c) The custodian does not respond to the electronic-mail communication not later than thirty days after the communication was sent. (3) If first-class United States mail sent under subsection (2) of this section is returned undelivered to the holder by the United States postal service, the property is presumed abandoned three years after the later of: (a) The date a second consecutive communication to contact the custodian by first-class United States mail is returned to the holder undelivered by the United States postal service; or (b) The date established by subsection (1)(c) of this section. (4) When the property in the account described in subsection (1) of this section is transferred to the minor on whose behalf an account was opened or to the minor's estate, the property in the account is no longer subject to this section. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 417, § 1, effective July 1, 2020. 38-13-205. When contents of safe-deposit box presumed abandoned. [Editor's note: This section is effective July 1, 2020.] (1) Tangible property held in a safe-deposit box and Colorado Revised Statutes 2019 Page 165 of 707 Uncertified Printout proceeds from a sale of the property by the holder permitted by law of this state other than this article 13 are presumed abandoned if the property remains unclaimed by the apparent owner five years after the earlier of the: (a) Expiration of the lease or rental period for the box; or (b) Earliest date when the lessor of the box is authorized by law of this state other than this article 13 to enter the box and remove or dispose of the contents without consent or authorization of the lessee. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 418, § 1, effective July 1, 2020. 38-13-206. When stored-value card presumed abandoned. [Editor's note: This section is effective July 1, 2020.] (1) Subject to section 38-13-210, the net value of a storedvalue card other than a gift card is presumed abandoned on the latest of three years after: (a) December 31 of the year in which the card is issued or additional funds are deposited into it; (b) The most recent indication of interest in the card by the apparent owner; or (c) A verification or review of the balance by or on behalf of the apparent owner. (2) The amount presumed abandoned in a stored-value card is the net card value at the time it is presumed abandoned. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 418, § 1, effective July 1, 2020. 38-13-207. When gift card presumed abandoned. [Editor's note: This section is effective July 1, 2020.] Subject to section 38-13-210, a gift card is presumed abandoned if it is unclaimed by the apparent owner five years after the later of the date of purchase or its most recent use. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 418, § 1, effective July 1, 2020. 38-13-208. When security presumed abandoned. [Editor's note: This section is effective July 1, 2020.] (1) Subject to section 38-13-210, a security is presumed abandoned three years after: (a) The date a second consecutive communication sent by the holder by first-class United States mail to the apparent owner is returned to the holder undelivered by the United States postal service; or (b) If the second communication is made later than thirty days after the first communication is returned, the date the first communication is returned undelivered to the holder by the United States postal service. Colorado Revised Statutes 2019 Page 166 of 707 Uncertified Printout (2) If the holder does not send communications to the apparent owner of a security by first-class United States mail, the holder shall attempt to confirm the apparent owner's interest in the security by sending the apparent owner an electronic-mail communication not later than two years after the apparent owner's last indication of interest in the security. However, the holder promptly shall attempt to contact the apparent owner by first-class United States mail if: (a) The holder does not have information needed to send the apparent owner an electronic-mail communication or the holder believes that the apparent owner's electronic-mail address in the holder's records is not valid; (b) The holder receives notification that the electronic-mail communication was not received; or (c) The apparent owner does not respond to the electronic-mail communication not later than thirty days after the communication was sent. (3) If first-class United States mail sent under subsection (2) of this section is returned to the holder undelivered by the United States postal service, the security is presumed abandoned three years after the date the mail is returned. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 419, § 1, effective July 1, 2020. 38-13-209. When related property interest presumed abandoned. At and after the time property is presumed abandoned under this part 2, any other property right or interest accrued or accruing from the property and not previously presumed abandoned is also presumed abandoned. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 419, § 1, effective July 1, 2020. 38-13-210. Indication of apparent owner interest in property. [Editor's note: This section is effective July 1, 2020.] (1) The period after which property is presumed abandoned is measured from the later of: (a) The date the property is presumed abandoned under this part 2; or (b) The latest indication of interest by the apparent owner in the property. (2) Under this article 13, an indication of an apparent owner's interest in property includes: (a) A record communicated by the apparent owner to the holder or agent of the holder concerning the property or the account in which the property is held; (b) An oral communication by the apparent owner to the holder or agent of the holder concerning the property or the account in which the property is held, if the holder or its agent contemporaneously makes and preserves a record of the fact of the apparent owner's communication; Colorado Revised Statutes 2019 Page 167 of 707 Uncertified Printout (c) Presentment of a check or other instrument of payment of a dividend, interest payment, or other distribution, or evidence of receipt of a distribution made by electronic or similar means, with respect to an account, underlying security, or interest in a business association; (d) Activity directed by an apparent owner in the account in which the property is held, including accessing the account or information concerning the account, or a direction by the apparent owner to increase, decrease, or otherwise change the amount or type of property held in the account; (e) Making a deposit into or withdrawal from an account at a financial organization, including an automatic deposit or withdrawal previously authorized by the apparent owner other than an automatic reinvestment of dividends or interest or fees and charges assessed by the holder or an affiliated service provider; (f) Subject to subsection (5) of this section, payment of a premium on an insurance policy; and (g) Any other action by the apparent owner that reasonably demonstrates to the holder that the apparent owner is aware that the property exists. (3) An action by an agent or other representative of an apparent owner, other than the holder acting as the apparent owner's agent, is presumed to be an action on behalf of the apparent owner. (4) A communication with an apparent owner by a person other than the holder or the holder's representative is not an indication of interest in the property by the apparent owner unless a record of the communication evidences the apparent owner's knowledge of a right to the property. (5) If the insured dies or the insured or beneficiary of an insurance policy otherwise becomes entitled to the proceeds before depletion of the cash surrender value of the policy by operation of an automatic-premium-loan provision or other nonforfeiture provision contained in the policy, the operation does not prevent the policy from maturing or terminating. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 419, § 1, effective July 1, 2020. 38-13-211. Knowledge of death of insured or annuitant - definition. [Editor's note: This section is effective July 1, 2020.] (1) In this section, "death master file" means the United States social security administration's death master file or other database or service that is at least as comprehensive as the United States social security administration's death master file for determining that an individual reportedly has died. (2) With respect to a life or endowment insurance policy or annuity contract for which an amount is owed on proof of death, but that has not matured by proof of death of the insured or annuitant, the company has knowledge of the death of an insured or annuitant when: (a) The company receives a death certificate or a court order determining that the insured or annuitant has died; Colorado Revised Statutes 2019 Page 168 of 707 Uncertified Printout (b) Due diligence performed as required under Colorado law to maintain contact with the insured or annuitant or determine whether the insured or annuitant has died, validates the death of the insured or annuitant; (c) The company conducts a comparison for any purpose between a death master file and the names of some or all of the company's insureds or annuitants, finds a match that provides notice that the insured or annuitant has died, and validates the death; (d) The administrator or the administrator's agent conducts a comparison for the purpose of finding matches during an examination conducted under part 10 of this article 13 between a death master file and the names of some or all of the company's insureds or annuitants, finds a match that provides notice that the insured or annuitant has died, and the company validates the death; or (e) The company: (I) Receives notice of the death of the insured or annuitant from an administrator, beneficiary, policy owner, relative of the insured, or trustee or from a personal representative, executor, or other legal representative of the insured's or annuitant's estate; and (II) Validates the death of the insured or annuitant. (3) The following rules apply under this section: (a) A death-master-file match under subsection (2)(c) or (2)(d) of this section occurs if the criteria for an exact or partial match are satisfied as provided by the "Unclaimed Life Insurance Benefits Act", part 8 of article 7 of title 10. (b) The death-master-file match does not constitute proof of death for the purpose of submission to an insurance company of a claim by a beneficiary, annuitant, or owner of the policy or contract for an amount due under an insurance policy or annuity contract. (c) The death-master-file match or validation of the insured's or annuitant's death does not alter the requirements for a beneficiary, annuitant, or owner of the policy or contract to make a claim to receive proceeds under the terms of the policy or contract. (d) If no provision in title 10 or rules of the commissioner of insurance establishes a time for the validation of a death of an insured or annuitant, the insurance company shall make a good-faith effort using other available records and information to validate the death and document the effort taken not later than ninety days after the insurance company has notice of the death. (4) This article 13 does not affect the determination of the extent to which an insurance company, before the effective date of this article 13, as amended, had knowledge of the death of an insured or annuitant or was required to conduct a death-master-file comparison to determine whether amounts owed by the company on a life or endowment insurance policy or annuity contract were presumed abandoned or unclaimed. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 421, § 1, effective July 1, 2020. Colorado Revised Statutes 2019 Page 169 of 707 Uncertified Printout 38-13-212. Deposit account for insurance policy or annuity contract. [Editor's note: This section is effective July 1, 2020.] If proceeds payable under a life or endowment insurance policy or annuity contract are deposited into an account with check- or draft-writing privileges for the beneficiary of the policy or contract and, under a supplementary contract not involving annuity benefits other than death benefits, the proceeds are retained by the insurance company or the financial organization where the account is held, the policy or contract includes the assets in the account. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 422, § 1, effective July 1, 2020. 38-13-213. Refunds held by business associations. [Editor's note: This section is effective July 1, 2020.] Except to the extent otherwise ordered by a court or administrative agency, any sum that a business association has been ordered to refund by a court or administrative agency that remains unclaimed by the owner for more than one year after it became payable in accordance with the final determination or order providing for the refund, whether or not the final determination or order requires any person entitled to a refund to make a claim for it, is presumed abandoned. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 422, § 1, effective July 1, 2020. Editor's note: This section is similar to former § 38-13-107.3 as it existed prior to 2020. 38-13-214. Foreclosure sale - overbid. [Editor's note: This section is effective July 1, 2020.] Any overbid, as defined in section 38-38-100.3, that is equal to or greater than twentyfive dollars and that remains unclaimed for six months after the date of sale is presumed abandoned. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 422, § 1, effective July 1, 2020. Editor's note: This section is similar to former § 38-13-108.2 (2) as it existed prior to 2020. 38-13-215. Funds held in lawyer COLTAF trust accounts - exemption - definition. [Editor's note: This section is effective July 1, 2020.] (1) This article 13 does not apply to money held in a lawyer COLTAF trust account. (2) As used in this section, "lawyer COLTAF trust account" means a Colorado lawyer trust account foundation trust account in which a lawyer, in accordance with the lawyer's Colorado Revised Statutes 2019 Page 170 of 707 Uncertified Printout professional obligations, holds funds of clients or third persons that are nominal in amount or that are expected to be held for a short period. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 422, § 1, effective July 1, 2020. Editor's note: This section is similar to former § 38-13-108.3 as it existed prior to 2020. 38-13-216. Money held by the public employees' retirement association definitions. [Editor's note: This section is effective July 1, 2020.] (1) For purposes of this section, unless the context otherwise requires: (a) "Account left inactive" means the contributions of any nonvested member who has terminated employment with an employer if the member's member contribution account with the association has been left inactive. (b) "Association" means the public employees' retirement association created pursuant to section 24-51-201. (c) "Benefit" has the same meaning as set forth in section 24-51-101 (7). (d) "Benefit recipient" has the same meaning as set forth in section 24-51-101 (8). (e) "Employer" has the same meaning as set forth in section 24-51-101 (20). (f) "Member" has the same meaning as set forth in section 24-51-101 (29). (g) "Unclaimed benefit" means a benefit owed to any benefit recipient if the benefit remains unpaid. (h) "Unclaimed member refund" means the contributions of a member who has terminated employment with an employer and who has requested a refund of the contributions if the refund remains unpaid. (2) Any money and any accrued interest held by the association for accounts left inactive, unclaimed benefits, or unclaimed member refunds are presumed abandoned if the money, benefit, or refund remains unclaimed for more than five years after the money, benefit, or refund becomes payable or distributable pursuant to article 51 of title 24 unless the owner of the money, within five years, has: (a) Communicated in writing with the association concerning the money; or (b) Otherwise indicated an interest in the money as evidenced by a memorandum or other record on file prepared by an employee of the association. (3) Property that is presumed abandoned pursuant to this section is the only property held by the association that is subject to this article 13. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 423, § 1, effective July 1, 2020. Editor's note: This section is similar to former § 38-13-108.5 as it existed prior to 2020. Colorado Revised Statutes 2019 Page 171 of 707 Uncertified Printout 38-13-217. Gaming chips or tokens - gaming award points - inapplicability. [Editor's note: This section is effective July 1, 2020.] This article 13 does not apply to gaming award points and gaming chips or tokens issued or sold by a licensed gaming establishment before, on, or after August 4, 2004, except to the extent the state has taken custody of any gaming award points or gaming chips or tokens on or before January 1, 2004. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 423, § 1, effective July 1, 2020. Editor's note: This section is similar to former § 38-13-108.7 as it existed prior to 2020. 38-13-218. Property held by racetracks - inapplicability. [Editor's note: This section is effective July 1, 2020.] This article 13 does not apply to any intangible unclaimed property held by a racetrack, as defined in section 44-32-102 (24). Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 424, § 1, effective July 1, 2020. Editor's note: This section is similar to former § 38-13-108.8 as it existed prior to 2020. 38-13-219. Unclaimed gift cards - limited exception. [Editor's note: This section is effective July 1, 2020.] This article 13 does not apply to unclaimed gift cards if the holder or issuer is a business association with annual gross receipts from the sales or issuance of all gift cards totaling two hundred thousand dollars or less. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 424, § 1, effective July 1, 2020. Editor's note: This section is similar to former § 38-13-108.9 as it existed prior to 2020. 38-13-220. Tax refunds. [Editor's note: This section is effective July 1, 2020.] (1) On and after October 1, 2002, any amount due and payable as a refund of Colorado income tax or grant for property taxes, rent, or heat or fuel expenses assistance represented by a warrant that has not been presented for payment within six months after the date of issuance of the warrant and that has been forwarded by the department of revenue to the administrator pursuant to section 39-21-108 (5) is presumed abandoned. (2) On and after October 1, 2010, any amount due and payable as a refund of a tax imposed or assessed by the department of revenue that is not addressed in subsection (1) of this section, that is represented by a warrant that has not been presented for payment within six months after the date of issuance of the warrant, and that has been forwarded by the department to the administrator pursuant to section 39-21-108 (7) is presumed abandoned. Colorado Revised Statutes 2019 Page 172 of 707 Uncertified Printout Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 424, § 1, effective July 1, 2020. Editor's note: This section is similar to former § 38-13-109.7 as it existed prior to 2020. PART 3 RULES FOR TAKING CUSTODY OF PROPERTY RESUMED ABANDONED 38-13-301. Address of apparent owner to establish priority. [Editor's note: This section is effective July 1, 2020.] (1) In this part 3, the following rules apply: (a) The last-known address of an apparent owner is any description, code, or other indication of the location of the apparent owner that identifies the state, even if the description, code, or indication of location is not sufficient to direct the delivery of first-class United States mail to the apparent owner; (b) If the United States postal zip code associated with the apparent owner is for a post office located in this state, this state is deemed to be the state of the last-known address of the apparent owner unless other records associated with the apparent owner specifically identify the physical address of the apparent owner to be in another state; (c) If the address under subsection (1)(b) of this section is in another state, the other state is deemed to be the state of the last-known address of the apparent owner; and (d) The address of the apparent owner of a life or endowment insurance policy or annuity contract or its proceeds is presumed to be the address of the insured or annuitant if a person other than the insured or annuitant is entitled to the amount owed under the policy or contract and the address of the other person is not known by the insurance company and cannot be determined under section 38-13-302. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 424, § 1, effective July 1, 2020. 38-13-302. Address of apparent owner in this state. [Editor's note: This section is effective July 1, 2020.] (1) The administrator may take custody of property that is presumed abandoned, whether located in this state, another state, or a foreign country if: (a) The last-known address of the apparent owner in the records of the holder is in this state; or (b) The records of the holder do not reflect the identity or last-known address of the apparent owner, but the administrator has determined that the last-known address of the apparent owner is in this state. Colorado Revised Statutes 2019 Page 173 of 707 Uncertified Printout Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 425, § 1, effective July 1, 2020. 38-13-303. If records show multiple addresses of apparent owner. [Editor's note: This section is effective July 1, 2020.] (1) Except as otherwise provided in subsection (2) of this section, if records of a holder reflect multiple addresses for an apparent owner and if this state is the state of the most recently recorded address, this state may take custody of property presumed abandoned, whether located in this state or another state. (2) If it appears from records of the holder that the most recently recorded address of the apparent owner under subsection (1) of this section is a temporary address and if this state is the state of the next most recently recorded address that is not a temporary address, this state may take custody of the property presumed abandoned. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 425, § 1, effective July 1, 2020. 38-13-304. Holder domiciled in this state. [Editor's note: This section is effective July 1, 2020.] (1) Except as otherwise provided in subsection (2) of this section or in section 38-13302 or 38-13-303, the administrator may take custody of property presumed abandoned, whether located in this state, another state, or a foreign country, if the holder is domiciled in this state or is this state or a governmental subdivision, agency, or instrumentality of this state, and: (a) Another state or foreign country is not entitled to the property because there is no last-known address in the records of the holder of the apparent owner or other person entitled to the property; or (b) The state or foreign country of the last-known address of the apparent owner or other person entitled to the property does not provide for custodial taking of the property. (2) Property is not subject to the custody of the administrator under subsection (1) of this section if the property is specifically exempt from custodial taking under the law of this state or the state or foreign country of the last-known address of the apparent owner. (3) If a holder's state of domicile has changed since the time property was presumed abandoned, the holder's state of domicile in this section is deemed to be the state where the holder was domiciled at the time the property was presumed abandoned. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 425, § 1, effective July 1, 2020. 38-13-305. Custody if transaction took place in this state. [Editor's note: This section is effective July 1, 2020.] (1) Except as otherwise provided in sections 38-13-302, 38-13-303, and 38-13-304, the administrator may take custody of property presumed abandoned whether located in this state or another state if: (a) The transaction out of which the property arose took place in this state; Colorado Revised Statutes 2019 Page 174 of 707 Uncertified Printout (b) The holder is domiciled in a state that does not provide for the custodial taking of the property; except that, if the property is specifically exempt from custodial taking under the law of the state of the holder's domicile, the property is not subject to the custody of the administrator; and (c) The last-known address of the apparent owner or other person entitled to the property is unknown or in a state that does not provide for the custodial taking of the property; except that, if the property is specifically exempt from custodial taking under the law of the state of the last-known address, the property is not subject to the custody of the administrator. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 426, § 1, effective July 1, 2020. 38-13-306. Traveler's check, money order, or similar instrument. [Editor's note: This section is effective July 1, 2020.] The administrator may take custody of sums payable on a traveler's check, money order, or similar instrument presumed abandoned to the extent permissible under federal law. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 426, § 1, effective July 1, 2020. 38-13-307. Burden of proof to establish administrator's right to custody. [Editor's note: This section is effective July 1, 2020.] (1) If the administrator asserts a right to custody of unclaimed property, the administrator has the burden to prove: (a) The existence and amount of the property; (b) That the property is presumed abandoned; and (c) That the property is subject to the custody of the administrator. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 426, § 1, effective July 1, 2020. PART 4 REPORT BY HOLDER 38-13-401. Report required by holder. [Editor's note: This section is effective July 1, 2020.] (1) A holder of property presumed abandoned and subject to the custody of the administrator shall report in a record to the administrator concerning the property. The administrator shall not require a holder to file a paper report. (2) A holder may contract with a third party to make the report required under subsection (1) of this section. Colorado Revised Statutes 2019 Page 175 of 707 Uncertified Printout (3) Whether or not a holder contracts with a third party under subsection (2) of this section, the holder is responsible: (a) To the administrator for the complete, accurate, and timely reporting of property presumed abandoned; and (b) For paying or delivering to the administrator property described in the report. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 426, § 1, effective July 1, 2020. 38-13-402. Content of report. [Editor's note: This section is effective July 1, 2020.] (1) The report required under section 38-13-401 must: (a) Be signed by or on behalf of the holder and verified as to its completeness and accuracy; (b) If filed electronically, be in a secure format approved by the administrator that protects confidential information of the apparent owner in the same manner as required of the administrator and the administrator's agent under part 14 of this article 13; (c) Describe the property; (d) Except for a traveler's check, money order, or similar instrument, contain the name, if known; last-known address, if known; and social security number or taxpayer identification number, if known or readily ascertainable, of the apparent owner of property with a value of twenty-five dollars or more; (e) For an amount held or owing under a life or endowment insurance policy or annuity contract, contain the full name and last-known address of the insured, annuitant, or other apparent owner of the policy or contract and of the beneficiary; (f) For property held in or removed from a safe-deposit box, indicate the location of the property and where it may be inspected by the administrator; (g) Contain the commencement date for determining abandonment under part 2 of this article 13; (h) State that the holder has complied with the notice requirements of section 38-13-501; (i) Identify property that is a nonfreely transferable security, and explain why it is a nonfreely transferable security; and (j) Contain other information the administrator prescribes by rules necessary for the administrator. (2) A report under section 38-13-401 may include in the aggregate items valued under twenty-five dollars each. If the report includes items in the aggregate valued under twenty-five dollars each, the administrator shall not require the holder to provide the name and address of an apparent owner of an item unless the information is necessary to verify or process a claim in progress by the apparent owner. (3) A report under section 38-13-401 may include personal information as defined in section 38-13-1401 about the apparent owner or the apparent owner's property to the extent not otherwise prohibited by federal law. Colorado Revised Statutes 2019 Page 176 of 707 Uncertified Printout (4) If a holder has changed its name while holding property presumed abandoned or is a successor to another person that previously held the property for the apparent owner, the holder shall include in the report under section 38-13-401 its former name or the name of the previous holder, if any, and the known name and address of each previous holder of the property. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 427, § 1, effective July 1, 2020. 38-13-403. When report to be filed. [Editor's note: This section is effective July 1, 2020.] (1) Except as otherwise provided in subsection (2) of this section and subject to subsection (3) of this section, the report under section 38-13-401 must be filed before November 1 of each year and cover the twelve months preceding July 1 of that year. (2) Subject to subsection (3) of this section, the report to be filed by an insurance company under section 38-13-401 must be filed before May 1 of each year for the immediately preceding calendar year. (3) Before the date for filing the report under section 38-13-401, the holder of property presumed abandoned may request the administrator to extend the time for filing. The administrator may grant an extension. If the extension is granted, the holder may pay or make a partial payment of the amount the holder estimates ultimately will be due. The payment or partial payment terminates accrual of interest on the amount paid. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 428, § 1, effective July 1, 2020. 38-13-404. Retention of records by holder. [Editor's note: This section is effective July 1, 2020.] (1) A holder required to file a report under section 38-13-401 shall retain records for ten years after the later of the date the report was filed or the last date a timely report was due to be filed, unless a shorter period is provided by rule of the administrator. A holder may satisfy the requirement to retain records under this section through an agent. The records must contain: (a) The information required to be included in the report; (b) The date, place, and nature of the circumstances that gave rise to the property right; (c) The amount or value of the property; (d) The last address of the apparent owner, if known to the holder; and (e) If the holder sells, issues, or provides to others for sale or issue in this state traveler's checks, money orders, or similar instruments, other than third-party bank checks, on which the holder is directly liable, a record of the instruments while they remain outstanding indicating the state and date of issue. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 428, § 1, effective July 1, 2020. Colorado Revised Statutes 2019 Page 177 of 707 Uncertified Printout 38-13-405. When property reportable and payable or deliverable. [Editor's note: This section is effective July 1, 2020.] Property is reportable and payable or deliverable under this article 13 even if the owner fails to make demand or present an instrument or document otherwise required to obtain payment. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 429, § 1, effective July 1, 2020. PART 5 NOTICE TO APPARENT OWNER OF PROPERTY PRESUMED ABANDONED 38-13-501. Notice to apparent owner by holder. [Editor's note: This section is effective July 1, 2020.] (1) Subject to subsection (2) of this section, the holder of property presumed abandoned shall send to the apparent owner notice that complies with section 38-13502 in a format acceptable to the administrator, by first-class United States mail, not more than one hundred eighty days nor less than sixty days before filing the report under section 38-13-401 if: (a) The holder has in its records an address for the apparent owner that the holder's records do not disclose to be invalid and that is sufficient to direct the delivery of first-class United States mail to the apparent owner; and (b) The value of the property is twenty-five dollars or more. (2) If an apparent owner has consented to receive electronic-mail delivery from the holder, the holder may send the notice described in subsection (1) of this section by electronic mail and not by first-class United States mail; except that, if the holder has evidence that the electronic mail could not be delivered, then the holder shall send the notice in accordance with subsection (1) of this section. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 429, § 1, effective July 1, 2020. 38-13-502. Contents of notice by holder. [Editor's note: This section is effective July 1, 2020.] (1) The notice under section 38-13-501 must contain a heading that reads substantially as follows: "Notice. The State of Colorado requires us to notify you that your property may be transferred to the custody of the state treasurer if you do not contact us before [insert date that is thirty days after the date of this notice].". (2) The notice under section 38-13-501 must: (a) Identify the nature and, except for property that does not have a fixed value, the value of the property that is the subject of the notice; (b) State that the property will be turned over to the administrator; Colorado Revised Statutes 2019 Page 178 of 707 Uncertified Printout (c) State that after the property is turned over to the administrator an apparent owner that seeks return of the property must file a claim with the administrator; (d) State that property that is not legal tender of the United States may be sold by the administrator; and (e) Provide instructions that the apparent owner must follow to prevent the holder from reporting and paying or delivering the property to the administrator. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 429, § 1, effective July 1, 2020. 38-13-503. Notice by administrator. [Editor's note: This section is effective July 1, 2020.] (1) The administrator shall give notice to an apparent owner that property that is presumed abandoned and appears to be owned by the apparent owner is held by the administrator under this article 13. (2) In providing notice under subsection (1) of this section, the administrator shall send the notice to the apparent owner's electronic-mail address if the administrator has an electronicmail address that the administrator does not know to be invalid. (3) In addition to the notice under subsection (2) of this section, the administrator shall maintain a website or database accessible by the public and electronically searchable that contains the names reported to the administrator of all apparent owners for whom property is being held by the administrator. (4) The website or database maintained under subsection (3) of this section must include instructions for filing with the administrator a claim to property and a printable claim form with instructions for its use. (5) In addition to giving notice under subsection (2) of this section and maintaining the website or database under subsection (3) of this section, the administrator may use first-class mail, electronic mail, other printed publication, telecommunication, the internet, other media, or public events to inform the public of the existence of unclaimed property held by the administrator. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 430, § 1, effective July 1, 2020. 38-13-504. Cooperation among state officers and agencies to locate apparent owner. [Editor's note: This section is effective July 1, 2020.] Unless prohibited by law of this state other than this article 13, on request of the administrator, each officer, agency, board, commission, division, and department of this state, any body politic and corporate created by this state for a public purpose, and each political subdivision of this state shall make its books and records available to the administrator and cooperate with the administrator to determine the current address of an apparent owner of property held by the administrator under this article 13. Colorado Revised Statutes 2019 Page 179 of 707 Uncertified Printout Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 430, § 1, effective July 1, 2020. PART 6 TAKING CUSTODY OF PROPERTY BY ADMINISTRATOR 38-13-601. Definition of good faith. [Editor's note: This section is effective July 1, 2020.] (1) In this part 6, payment or delivery of property is made in good faith if a holder: (a) Had a reasonable basis for believing, based on the facts then known, that the property was required or permitted to be paid or delivered to the administrator under this article 13; or (b) Made payment or delivery: (I) In response to a demand by the administrator or administrator's agent; or (II) Under a guidance or ruling issued by the administrator that the holder reasonably believed required or permitted the property to be paid or delivered. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 431, § 1, effective July 1, 2020. 38-13-602. Dormancy charge. [Editor's note: This section is effective July 1, 2020.] (1) A holder may deduct a dormancy charge from property required to be paid or delivered to the administrator if: (a) A valid contract between the holder and the apparent owner authorizes imposition of the charge for the apparent owner's failure to claim the property within a specified time; and (b) The holder regularly imposes the charge and regularly does not reverse or otherwise cancel the charge. (2) The amount of the deduction under subsection (1) of this section is limited to an amount that is not unconscionable considering all relevant factors, including the marginal transactional costs incurred by the holder in maintaining the apparent owner's property and any services received by the apparent owner. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 431, § 1, effective July 1, 2020. 38-13-603. Payment or delivery of property to administrator. [Editor's note: This section is effective July 1, 2020.] (1) Except as otherwise provided in this section, on filing a report under section 38-13-401, the holder shall pay or deliver to the administrator the property described in the report. (2) If property in a report under section 38-13-401 is an automatically renewable deposit and a penalty or forfeiture in the payment of interest would result from paying the deposit to the administrator at the time of the report, the date for payment of the property to the administrator Colorado Revised Statutes 2019 Page 180 of 707 Uncertified Printout is extended until a penalty or forfeiture no longer would result from payment, if the holder informs the administrator of the extended date. (3) Tangible property in a safe-deposit box shall not be delivered to the administrator until one hundred twenty days after filing the report under section 38-13-401. (4) If property reported to the administrator under section 38-13-401 is a security, the administrator may: (a) Make an endorsement, instruction, or entitlement order on behalf of the apparent owner to invoke the duty of the issuer, its transfer agent, or the securities intermediary to transfer the security; or (b) Dispose of the security under section 38-13-702. (5) If the holder of property reported to the administrator under section 38-13-401 is the issuer of a certificated security, the administrator may obtain a replacement certificate in physical or book-entry form under section 4-8-405. An indemnity bond is not required. (6) The administrator shall establish procedures for the registration, issuance, method of delivery, transfer, and maintenance of securities delivered to the administrator by a holder. (7) An issuer, holder, and transfer agent or other person acting under this section under instructions of and on behalf of the issuer or holder is not liable to the apparent owner for, and shall be indemnified by the state against, a claim arising with respect to property after the property has been delivered to the administrator. (8) A holder is not required to deliver to the administrator a security identified by the holder as a nonfreely transferable security. If the administrator or holder determines that a security is no longer a nonfreely transferable security, the holder shall deliver the security on the next regular date prescribed for delivery of securities under this article 13. The holder shall make a determination annually whether a security identified in a report filed under section 38-13-401 as a nonfreely transferable security is no longer a nonfreely transferable security. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 431, § 1, effective July 1, 2020. 38-13-604. Effect of payment or delivery of property to administrator. [Editor's note: This section is effective July 1, 2020.] On payment or delivery of property to the administrator under this article 13, the administrator as agent for the state assumes custody and responsibility for the safekeeping of the property. A holder that pays or delivers property to the administrator in good faith and that substantially complies with sections 38-13-501 and 38-13502 is relieved of liability arising thereafter with respect to payment or delivery of the property to the administrator. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 432, § 1, effective July 1, 2020. Colorado Revised Statutes 2019 Page 181 of 707 Uncertified Printout 38-13-605. Recovery of property by holder from administrator. [Editor's note: This section is effective July 1, 2020.] (1) A holder that pays money to the administrator under this article 13 may file a claim for reimbursement from the administrator of the amount paid if the holder: (a) Paid the money in error; or (b) After paying the money to the administrator, paid the money to a person the holder reasonably believed to be entitled to the money. (2) If a claim for reimbursement under subsection (1) of this section is made for a payment made on a negotiable instrument, including a traveler's check, money order, or similar instrument, the holder must submit proof that the instrument was presented and that payment was made to a person the holder reasonably believed to be entitled to payment. The holder may claim reimbursement even if the payment was made to a person whose claim was made after expiration of a period of limitation on the owner's right to receive or recover property, whether specified by contract, statute, or court order. (3) If a holder is reimbursed by the administrator under subsection (1)(b) of this section, the holder may also recover from the administrator income or gain under section 38-13-606 that would have been paid to the owner if the money had been claimed from the administrator by the owner to the extent the income or gain was paid by the holder to the owner. (4) (a) A holder that delivers property other than money to the administrator under this article 13 may file a claim for return of the property from the administrator if: (I) The holder delivered the property in error; or (II) The apparent owner has claimed the property from the holder. (b) If a claim for return of property under subsection (4)(a) of this section is made, the holder shall include with the claim evidence sufficient to establish that the apparent owner has claimed the property from the holder or that the property was delivered by the holder to the administrator in error. (5) The administrator may determine that an affidavit submitted by a holder is evidence sufficient to establish that the holder is entitled to reimbursement or to recover property under this section. (6) A holder is not required to pay a fee or other charge for reimbursement or return of property under this section. (7) Not later than ninety days after a claim is filed under subsection (1) or (4) of this section, the administrator shall allow or deny the claim and give the claimant notice of the decision in a record. If the administrator does not take action on a claim during the ninety-day period, the claim is deemed denied. (8) The claimant may initiate a proceeding under the "State Administrative Procedure Act", article 4 of title 24, for review of the administrator's decision or the deemed denial under subsection (7) of this section not later than: (a) Thirty days following receipt of the notice of the administrator's decision; or (b) One hundred twenty days following the filing of a claim under subsection (1) or (4) of this section in the case of a deemed denial under subsection (7) of this section. Colorado Revised Statutes 2019 Page 182 of 707 Uncertified Printout Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 432, § 1, effective July 1, 2020. 38-13-606. Crediting income or gain to owner's account. [Editor's note: This section is effective July 1, 2020.] If property other than money is delivered to the administrator, the owner is entitled to receive from the administrator income or gain realized or accrued on the property before the property is sold. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 434, § 1, effective July 1, 2020. 38-13-607. Administrator's options as to custody. [Editor's note: This section is effective July 1, 2020.] (1) The administrator may decline to take custody of property reported under section 38-13-401 if the administrator determines that: (a) The property has a value less than the estimated expenses of notice and sale of the property; or (b) Taking custody of the property would be unlawful. (2) A holder may pay or deliver property to the administrator before the property is presumed abandoned under this article 13 if the holder: (a) Sends the apparent owner of the property the notice or notices required by section 3813-501 and provides the administrator evidence of the holder's compliance with this subsection (2)(a); (b) Includes with the payment or delivery a report regarding the property conforming to section 38-13-402; and (c) First obtains the administrator's consent in a record to accept payment or delivery. (3) A holder's request for the administrator's consent under subsection (2)(c) of this section must be in a record. If the administrator fails to respond to the request not later than thirty days after receipt of the request, the administrator is deemed to consent to the payment or delivery of the property and the payment or delivery is considered to have been made in good faith. (4) On payment or delivery of property under subsection (2) of this section, the property is presumed abandoned. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 434, § 1, effective July 1, 2020. 38-13-608. Disposition of property having no substantial value - immunity from liability. [Editor's note: This section is effective July 1, 2020.] (1) If the administrator takes custody of property delivered under this article 13 and later determines that the property has no substantial commercial value or that the cost of disposing of the property will exceed the value Colorado Revised Statutes 2019 Page 183 of 707 Uncertified Printout of the property, the administrator may return the property to the holder or destroy or otherwise dispose of the property. (2) An action or proceeding shall not be commenced against the state, an agency of the state, the administrator, another officer, employee, or agent of the state, or a holder for or because of an act of the administrator under this section, except for intentional misconduct or malfeasance. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 434, § 1, effective July 1, 2020. 38-13-609. Periods of limitation and repose. [Editor's note: This section is effective July 1, 2020.] (1) Expiration, before, on, or after July 1, 2020, of a period of limitation on an owner's right to receive or recover property, whether specified by contract, statute, or court order does not prevent the property from being presumed abandoned or affect the duty of a holder to file a report or pay or deliver property to the administrator under this article 13. (2) The administrator shall not commence an action or proceeding to enforce this article 13 with respect to the reporting, payment, or delivery of property more than five years after the holder filed a nonfraudulent report with the administrator under section 38-13-401. The parties may agree in a record to extend the limitation in this subsection (2). (3) The administrator shall not commence an action, proceeding, or examination with respect to a duty of a holder under this article 13 more than ten years after the duty arose. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 435, § 1, effective July 1, 2020. PART 7 SALE OF PROPERTY BY ADMINISTRATOR 38-13-701. Public sale of property. [Editor's note: This section is effective July 1, 2020.] (1) Subject to section 38-13-702, not earlier than three years after receipt of property that is presumed abandoned, the administrator may sell the property. (2) Before selling property under subsection (1) of this section, the administrator shall give notice to the public of: (a) The date of sale; and (b) A reasonable description of the property. (3) A sale under subsection (1) of this section must be to the highest bidder: (a) At public sale at a location in this state that the administrator determines to be the most favorable market for the property; or (b) On the internet; or Colorado Revised Statutes 2019 Page 184 of 707 Uncertified Printout (c) On another forum the administrator determines is likely to yield the highest net proceeds of sale. (4) The administrator may decline the highest bid at a sale under subsection (1) of this section and reoffer the property for sale if the administrator determines the highest bid is insufficient. (5) If a sale held under this section is to be conducted other than on the internet, the administrator must publish at least one notice of the sale at least three weeks but not more than five weeks before the sale in a newspaper of general circulation in the county in which the property is sold. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 435, § 1, effective July 1, 2020. 38-13-702. Disposal of securities. [Editor's note: This section is effective July 1, 2020.] (1) The administrator shall not sell or otherwise liquidate a security until three years after the administrator receives the security and gives the apparent owner notice under section 38-13503 that the administrator holds the security. This subsection (1) applies to any security presumed abandoned under section 38-13-208 with a commencement date, reported under section 38-13-402, that is on or after July 1, 2014. (2) The administrator shall not sell a security listed on an established stock exchange for less than the price prevailing on the exchange at the time of sale. The administrator may sell a security not listed on an established exchange by any commercially reasonable method. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 436, § 1, effective July 1, 2020. 38-13-703. Recovery of securities or value by owner. [Editor's note: This section is effective July 1, 2020.] (1) A person that makes a valid claim under this article 13 of ownership of a security is entitled to receive: (a) The security the holder delivered to the administrator, if it is in the custody of the administrator, plus dividends, interest, and other increments on the security up to the time the administrator delivers the security to the person; or (b) The net proceeds of the sale of the security, plus dividends, interest, and other increments on the security up to the time the security was sold. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 436, § 1, effective July 1, 2020. 38-13-704. Purchaser owns property after sale. [Editor's note: This section is effective July 1, 2020.] A purchaser of property at a sale conducted by the administrator under this article 13 takes the property free of all claims of the owner, a previous holder, or a person Colorado Revised Statutes 2019 Page 185 of 707 Uncertified Printout claiming through the owner or holder. The administrator shall execute documents necessary to complete the transfer of ownership to the purchaser. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 436, § 1, effective July 1, 2020. 38-13-705. Military medal or decoration. [Editor's note: This section is effective July 1, 2020.] (1) The administrator shall not sell a medal or decoration awarded for military service in the armed forces of the United States. (2) The administrator, with the consent of the respective organization under subsection (2)(a) of this section, agency under subsection (2)(c) of this section, or entity under subsection (2)(d) of this section, may deliver a medal or decoration described in subsection (1) of this section to be held in custody for the owner, to: (a) A military veterans' organization qualified under section 501 (c)(19) of the federal "Internal Revenue Code of 1986", as amended, 26 U.S.C. sec. 501 (c)(19); (b) The Colorado veterans community living center at Homelake; (c) The agency that awarded the medal or decoration; or (d) A governmental entity. (3) On delivery under subsection (2) of this section, the administrator is not responsible for safekeeping of the medal or decoration. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 436, § 1, effective July 1, 2020. PART 8 ADMINISTRATION OF PROPERTY 38-13-801. Unclaimed property trust fund - creation - payments - interest appropriations - records - rules. [Editor's note: This section is effective July 1, 2020.] (1) (a) There is hereby created in the state treasury the unclaimed property trust fund. The principal in the trust fund consists of all money received by the administrator from sales of unclaimed property pursuant to part 7 of this article 13 or otherwise collected by the administrator under this article 13 other than from the sale of securities as contemplated by section 38-13-801.5. (b) Except as provided in subsections (2), (3), and (3.5) of this section, the principal of the trust fund shall not be expended except to pay claims made pursuant to this article 13. Money constituting the principal of the trust fund is not fiscal year spending of the state for purposes of section 20 of article X of the state constitution and is not subject to appropriation by the general assembly. (c) All interest derived from the deposit and investment of money in the trust fund shall be credited to the trust fund. Colorado Revised Statutes 2019 Page 186 of 707 Uncertified Printout (d) The money in the unclaimed property trust fund does not revert to the general fund at the end of any fiscal year. (2) (a) The general assembly shall make annual appropriations out of the principal of the unclaimed property trust fund for the direct and indirect costs of administering this article 13, except as provided for the payment of contract auditor services in subsection (2)(b) of this section. (b) Money in the unclaimed property trust fund is continuously appropriated to the administrator for the payment of contract auditor services and for fees of security custodians for properties that are securities. Any money appropriated for the payment of contract auditor services shall be paid from revenues collected by contract auditors. (c) The administrator shall promulgate rules in accordance with article 4 of title 24 as necessary to administer payment for contract auditor services, including any rules necessary to: (I) Specify the requirements or expertise of contract auditors; (II) Adequately protect unclaimed property while the property is in the possession of the contract auditor; and (III) Prevent identity theft and the sale or transfer of personal identifying information obtained by the contract auditor during the course of the contract auditor's duties. (d) The following amounts constitute fiscal year spending for purposes of section 20 of article X of the state constitution: (I) Any money that is appropriated to the department of the treasury as required by this subsection (2); (II) Any money that is credited to the adult dental fund created in section 25.5-5-207 (4) as required by subsection (3) of this section; and (III) Any money that is credited to the housing development grant fund created in section 24-32-721 (1) as required by subsection (3.5) of this section. (3) (a) After reserving the amounts described in subsection (3)(b) of this section, the state treasurer shall transmit to the adult dental fund created in section 25.5-5-207 (4) an amount of principal and interest in the trust fund sufficient to implement the adult dental benefit pursuant to section 25.5-5-202 (1)(w). (b) The administrator shall reserve in the trust fund and shall not transfer any money necessary for: (I) The claims paid pursuant to this article 13 for each fiscal year; (II) The reserve amount necessary to pay anticipated claims; and (III) Publications and correspondence expenses pursuant to section 38-13-503. (3.5) (a) Notwithstanding any other provision of this section, if, based upon the estimate described in subsection (3.5)(b)(I) of this section, state revenues for the 2020-21 state fiscal year through the 2022-23 state fiscal year are less than the transfer cutoff amount, the state treasurer shall transfer from the unclaimed property trust fund to the division of housing to be deposited into the housing development grant fund created in section 24-32-721 (1) no later than June 30 of the year in which the economic and revenue forecast is made the amount of thirty million dollars. Colorado Revised Statutes 2019 Page 187 of 707 Uncertified Printout (b) (I) In its annual June forecast, legislative council staff shall report estimates for the current state fiscal year of state revenues, the transfer cutoff amount, and the amount of the transfer required by this section based on those estimates. Legislative council staff shall include the amount of the anticipated transfer in its estimate of fiscal year spending for the state fiscal year. (II) On June 1 of each year, the state treasurer shall notify legislative council staff of the amount available in the unclaimed property trust fund to be transferred on June 30 of the year under this section if the amount is less than thirty million dollars. (c) As used in this subsection (3.5): (I) "Excess state revenues cap" has the same meaning as set forth in section 24-77-103.6 (6)(b). (II) "June forecast" means the economic and revenue forecast prepared by legislative council staff each June. (III) "State revenues" has the same meaning as set forth in section 24-77-103.6 (6)(c); except that it does not include any amount for the anticipated transfer permitted by subsection (3.5)(a) of this section. (IV) "Transfer cutoff amount" means, for a given fiscal year, an amount equal to the excess state revenues cap for the fiscal year minus thirty million dollars. (d) All of the money to be transferred pursuant to subsection (3.5)(a) of this section must be deposited by the division of housing into the housing development grant fund created in section 24-32-721 (1) to finance the uses described in section 24-32-721. (e) Notwithstanding any other provision of this section, for each state fiscal year that a transfer is not made, the last year in which a transfer may be made as specified in subsection (3.5)(a) of this section is extended for an additional state fiscal year. Any transfer permitted by subsection (3.5)(a) of this section shall not be made in more than three total state fiscal years. (4) Before crediting any money to the trust fund pursuant to subsection (1) of this section, the administrator shall record the name and last-known address of each person appearing from the holders' reports to be entitled to the property. The record must be available for public inspection during all reasonable business hours. Source: L. 2019: (1)(b) and (2)(d) amended and (3.5) added, (HB 19-1322), ch. 201, p. 2166, § 1, effective August 2; Entire article R&RE, (SB 19-088), ch. 110, p. 437, § 1, effective July 1, 2020. Editor's note: This section is similar to former § 38-13-116.5 as it existed prior to 2020. 38-13-801.5. Unclaimed property tourism promotion trust fund - creation payments - interest - transfers - definition. [Editor's note: This section is effective July 1, 2020.] (1) There is hereby created in the state treasury the unclaimed property tourism promotion trust fund. The principal in the trust fund consists of all proceeds collected by the administrator from the sale of securities under this article 13. Colorado Revised Statutes 2019 Page 188 of 707 Uncertified Printout (2) The principal of the unclaimed property tourism promotion trust fund shall not be expended except to pay claims made pursuant to this article 13. Money constituting the principal of the trust fund that is credited to or expended from the trust fund to pay claims is not fiscal year spending of the state for purposes of section 20 of article X of the state constitution, and such money is deemed custodial funds that are not subject to appropriation by the general assembly. (3) (a) After reserving the amounts described in subsection (3)(b) of this section, the interest derived from the deposit and investment of money in the unclaimed property tourism promotion trust fund shall be credited to the following funds: (I) Twenty-five percent of the interest to the Colorado state fair authority cash fund created in section 35-65-107 (1), subject to appropriation by the general assembly pursuant to section 35-65-107 (3)(b); (II) Sixty-five percent of the interest to the agriculture management fund created in section 35-1-106.9, subject to appropriation by the general assembly pursuant to section 35-1106.9; and (III) (A) Ten percent of the interest to the Colorado travel and tourism promotion fund created in section 24-49.7-106 (1), subject to appropriation by the general assembly pursuant to section 24-49.7-106 (3) for use in the promotion of agritourism in the state. For purposes of this subsection (3)(a)(III), "agritourism" means the practice of engaging in activities, events, and services that have been provided to consumers for recreational, entertainment, or educational purposes at a farm, ranch, or other agricultural, horticultural, or agribusiness operation in order to allow consumers to experience, learn about, and participate in various facets of agricultural industry, culinary pursuits, natural resources, and heritage. (B) The board of directors of the Colorado tourism office created in section 24-49.7-103 shall consult annually, and execute a memorandum of understanding, with the commissioner of agriculture regarding the expenditure of money credited pursuant to subsection (3)(a)(III)(A) of this section in order to coordinate agritourism promotion efforts. (b) The administrator shall reserve in the unclaimed property tourism promotion trust fund and shall not transfer any money necessary for: (I) The claims paid pursuant to this article 13 for each fiscal year; and (II) The reserve amount necessary to pay anticipated claims. (c) Any money that is credited to and expended from the Colorado state fair authority cash fund, the agriculture management fund, or the travel and tourism promotion fund pursuant to this subsection (3) constitutes fiscal year spending of the state for purposes of section 20 of article X of the state constitution. (4) The money in the unclaimed property tourism promotion trust fund does not revert to the general fund at the end of any fiscal year. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 438, § 1, effective July 1, 2020. Colorado Revised Statutes 2019 Page 189 of 707 Uncertified Printout Editor's note: This section is similar to former § 38-13-116.7 as it existed prior to 2020. 38-13-802. Administrator to retain records of property. [Editor's note: This section is effective July 1, 2020.] (1) The administrator shall: (a) Record and retain the name and last-known address of each person shown on a report filed under section 38-13-401 to be the apparent owner of the property delivered to the administrator; (b) Record and retain the name and last-known address of each insured or annuitant and beneficiary shown on the report; (c) With respect to each policy of insurance or annuity contract listed in the report of an insurance company, record and retain the policy or account number, the name of the company, and the amount due or paid; and (d) With respect to each apparent owner listed in the report, record and retain the name of the holder who filed the report and the amount due or paid. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 440, § 1, effective July 1, 2020. 38-13-803. Administrator holds property as custodian for owner. [Editor's note: This section is effective July 1, 2020.] Property received by the administrator under this article 13 is held in custody for the benefit of the owner and is not owned by the state. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 440, § 1, effective July 1, 2020. PART 9 CLAIM TO RECOVER PROPERTY FROM ADMINISTRATOR 38-13-901. Claim of another state to recover property. [Editor's note: This section is effective July 1, 2020.] (1) If the administrator knows that property held by the administrator under this article 13 is subject to a superior claim of another state, the administrator shall: (a) Report and pay or deliver the property to the other state; or (b) Return the property to the holder so that the holder may pay or deliver the property to the other state. (2) The administrator is not required to enter into an agreement to transfer property to the other state under subsection (1) of this section. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 440, § 1, effective July 1, 2020. Colorado Revised Statutes 2019 Page 190 of 707 Uncertified Printout 38-13-902. When property subject to recovery by another state. [Editor's note: This section is effective July 1, 2020.] (1) Property held by the administrator under this article 13 is subject to the right of another state to take custody of the property if: (a) The property was paid or delivered to the administrator because the records of the holder did not reflect a last-known address in the other state of the apparent owner and: (I) The other state establishes that the last-known address of the apparent owner or other person entitled to the property was in the other state; or (II) Under the law of the other state, the property has become subject to a claim of abandonment by the other state; (b) The records of the holder did not accurately identify the owner of the property, the last-known address of the owner was in another state, and, under the law of the other state, the property has become subject to a claim of abandonment by the other state; (c) The property was subject to the custody of the administrator of this state under section 38-13-305 and, under the law of the state of domicile of the holder, the property has become subject to a claim of abandonment by the state of domicile of the holder; or (d) The property: (I) Is a sum payable on a traveler's check, money order, or similar instrument that was purchased in the other state and delivered to the administrator under section 38-13-306; and (II) Under the law of the other state, has become subject to a claim of abandonment by the other state. (2) A claim by another state to recover property under this section must be presented in a form prescribed by the administrator unless the administrator waives presentation of the form. (3) The administrator shall decide a claim under this section not later than ninety days after it is presented. If the administrator determines that the other state is entitled under subsection (1) of this section to custody of the property, the administrator shall allow the claim and pay or deliver the property to the other state. (4) The administrator may require another state, before recovering property under this section, to agree to indemnify this state and its officers and employees against any liability on a claim to the property. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 440, § 1, effective July 1, 2020. 38-13-902.1. Claims offset for child support. [Editor's note: This section is effective July 1, 2020.] (1) Before paying a claim pursuant to section 38-13-905 in an amount exceeding six hundred dollars, the administrator shall offset against the amount of the claim the claimant's obligations to pay current child support, child support debt, retroactive child support, child support arrearages, child support costs, or child support when combined with maintenance. The administrator may enter into a memorandum of understanding with the department of human services to implement this section and section 26-13-118.5. Colorado Revised Statutes 2019 Page 191 of 707 Uncertified Printout (2) (a) If a claimant owes current child support, child support debt, retroactive child support, child support arrearages, child support costs, or child support when combined with maintenance, and also owes restitution or fines, fees, costs, or surcharges as described in section 38-13-902.2, delinquent state taxes, penalties, or interest as described in section 38-13-902.3, or both, the unclaimed property offset against the current child support, child support debt, retroactive child support, child support arrearages, child support costs, or child support when combined with maintenance takes priority and shall be applied first. (b) If a claimant owes both restitution or fines, fees, costs, or surcharges and delinquent state taxes, penalties, or interest, after payment in accordance with subsection (2)(a) of this section, if applicable, any remaining unclaimed property shall be applied first toward the payment of the outstanding restitution or fines, fees, costs, or surcharges and processed in accordance with section 38-13-902.2 and then applied to the payment of delinquent state taxes, penalties, or interest and processed in accordance with section 38-13-902.3. (c) If a claimant owes restitution or fines, fees, costs, or surcharges or delinquent state taxes, penalties, or interest, after payment in accordance with subsection (2)(a) of this section, if applicable, any remaining unclaimed property shall be applied toward the payment of the outstanding restitution or fines, fees, costs, or surcharges and processed in accordance with section 38-13-902.2 or toward the delinquent state taxes, penalties, or interest and processed in accordance with section 38-13-902.3, whichever is applicable. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 441, § 1, effective July 1, 2020. Editor's note: This section is similar to former § 38-13-117.3 as it existed prior to 2020. 38-13-902.2. Claims offset for judicial restitution, fines, fees, costs, or surcharges. [Editor's note: This section is effective July 1, 2020.] (1) Before paying a claim pursuant to section 38-13-905 in an amount exceeding six hundred dollars, the administrator shall offset against the amount of the claim the claimant's outstanding court fines, fees, costs, or surcharges or restitution. The administrator may enter into a memorandum of understanding with the judicial department to implement this section and sections 16-11-101.6 (6) and 16-18.5-106.7. (2) If a claimant owes fines, fees, costs, or surcharges or restitution as described in this section and also owes current child support, child support debt, retroactive child support, child support arrearages, child support costs, or child support when combined with maintenance as described in section 38-13-902.1, delinquent state taxes, penalties, or interest as described in section 38-13-902.3, or both, the unclaimed property offsets shall be applied in accordance with the priority set forth in section 38-13-902.1 (2). Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 442, § 1, effective July 1, 2020. Colorado Revised Statutes 2019 Page 192 of 707 Uncertified Printout Editor's note: This section is similar to former § 38-13-117.5 as it existed prior to 2020. 38-13-902.3. Claims offset for state tax delinquencies. [Editor's note: This section is effective July 1, 2020.] (1) Before paying a claim pursuant to section 38-13-905 in an amount exceeding six hundred dollars, the administrator shall compare the social security number or federal employer identification number of the claimant with the numbers certified by the department of revenue for the purpose of the unclaimed property offset as provided in section 39-21-121. (2) If the social security number or federal employer identification number of a claimant appears among the numbers certified by the department of revenue pursuant to section 39-21121, the administrator shall suspend the payment of the claim until the requirements of section 39-21-121 are met. If, after consulting with the department, the administrator determines that the claimant is obligated to pay the amounts certified under section 39-21-121, the administrator shall withhold from the amount of the unclaimed property paid to the claimant an amount equal to the amount of delinquent state taxes, penalties, or interest. If the amount of the unclaimed property is less than or equal to the amount of delinquent state taxes, penalties, or interest, the administrator shall withhold the entire amount of the unclaimed property. The administrator shall transmit any unclaimed property so withheld to the department for disbursement as directed in section 39-21-121. (3) If a claimant owes delinquent state taxes, penalties, or interest as described in this section and also owes current child support, child support debt, retroactive child support, child support arrearages, child support costs, or child support when combined with maintenance as described in section 38-13-902.1, restitution or fines, fees, costs, or surcharges as described in section 38-13-902.2, or both, the unclaimed property offset shall be applied in accordance with the priority set forth in section 38-13-902.1 (2). Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 442, § 1, effective July 1, 2020. Editor's note: This section is similar to former § 38-13-117.7 as it existed prior to 2020. 38-13-902.4. Claim of the state or governmental agency. [Editor's note: This section is effective July 1, 2020.] At any time after property has been paid or delivered to the administrator under this article 13, if the administrator determines that the state or a state governmental agency owns the property, the administrator may transfer the property to an operating account of the state or the agency. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 443, § 1, effective July 1, 2020. Editor's note: This section is similar to former § 38-13-118.5 as it existed prior to 2020. Colorado Revised Statutes 2019 Page 193 of 707 Uncertified Printout 38-13-903. Claim for property by person claiming to be owner. [Editor's note: This section is effective July 1, 2020.] (1) A person claiming to be the owner of property held by the administrator under this article 13 may file a claim for the property on a form prescribed by the administrator. (2) The administrator may waive the requirement in subsection (1) of this section and may pay or deliver property directly to a person if: (a) The person receiving the property or payment is shown to be the apparent owner included on a report filed under section 38-13-401; and (b) The administrator reasonably believes the person is entitled to receive the property or payment. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 443, § 1, effective July 1, 2020. 38-13-904. When administrator must honor claim for property. [Editor's note: This section is effective July 1, 2020.] (1) The administrator shall pay or deliver property to a claimant under section 38-13-903 if the administrator receives evidence sufficient to establish to the satisfaction of the administrator that the claimant is the owner of the property. (2) Not later than ninety days after a claim is filed under section 38-13-903, the administrator shall allow or deny the claim and give the claimant notice of the decision in a record. If the claim is denied: (a) The administrator shall inform the claimant of the reason for the denial and specify what additional evidence, if any, is required for the claim to be allowed; (b) The claimant may file an amended claim with the administrator or commence an action under section 38-13-906; and (c) The administrator shall consider an amended claim filed under subsection (2)(b) of this section as an initial claim. (3) If the administrator does not take action on a claim during the ninety-day period following the filing of a claim under section 38-13-903 (1), the claim is deemed denied. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 443, § 1, effective July 1, 2020. 38-13-905. Allowance of claim for property. [Editor's note: This section is effective July 1, 2020.] (1) Not later than thirty days after a claim is allowed under section 38-13-904 (2) or, in the case of a security, not later than forty-five days after the claim is allowed under section 39-13-904 (2), the administrator shall pay or deliver to the owner the property or pay to the owner the net proceeds of a sale of the property, together with income or gain to which the owner is entitled under section 38-13-606. (2) Before delivery or payment to an owner under subsection (1) of this section of property or payment to the owner of net proceeds of a sale of the property, the administrator first Colorado Revised Statutes 2019 Page 194 of 707 Uncertified Printout shall apply the property or net proceeds in accordance with sections 38-13-902.2 to 38-13-902.4. The administrator shall pay the amount to the appropriate state agency and notify the owner of the payment. (3) The administrator may make periodic inquiries of state agencies in the absence of a claim filed under section 38-13-903 to determine whether an apparent owner included in the unclaimed property records of this state has an enforceable debt described in sections 38-13902.2 to 38-13-902.4. The administrator first shall apply the property or net proceeds of a sale of property held by the administrator to a debt under sections 38-13-902.2 to 38-13-902.4 of an apparent owner that appears in the records of the administrator and deliver the amount to the appropriate state agency. The administrator shall notify the apparent owner of the payment. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 444, § 1, effective July 1, 2020. 38-13-906. Action by person whose claim is denied. [Editor's note: This section is effective July 1, 2020.] Not later than one year after filing a claim with the administrator under section 38-13-903, the claimant may commence an action against the administrator in the district court for the city and county of Denver to establish a claim that has been denied or deemed denied under section 38-13-904. On final determination of the action, the court may, on application, award to the plaintiff their reasonable attorney's fees, costs, and expenses of litigation. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 444, § 1, effective July 1, 2020. PART 10 VERIFIED REPORT OF PROPERTY EXAMINATION OF RECORDS 38-13-1001. Verified report of property. [Editor's note: This section is effective July 1, 2020.] (1) If a person does not file a report required by section 38-13-401 or the administrator believes that a person may have filed an inaccurate, incomplete, or false report, the administrator may require the person to file a verified report in a form prescribed by the administrator. The report must: (a) State whether the person is holding property reportable under this article 13; (b) Describe property not previously reported or about which the administrator has inquired; (c) Specifically identify property described under subsection (1)(b) of this section about which there is a dispute whether it is reportable under this article 13; and (d) State the amount or value of the property. Colorado Revised Statutes 2019 Page 195 of 707 Uncertified Printout Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 445, § 1, effective July 1, 2020. 38-13-1002. Examination of records to determine compliance. [Editor's note: This section is effective July 1, 2020.] (1) The administrator, at reasonable times and on reasonable notice, may: (a) Examine the records of a person, including examination of appropriate records in the possession of an agent of the person under examination, if such records are reasonably necessary to determine whether the person has complied with this article 13; (b) Issue an administrative subpoena requiring the person or an agent of the person to make records available for examination; and (c) Bring an action seeking judicial enforcement of the subpoena. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 445, § 1, effective July 1, 2020. 38-13-1003. Rules for conducting examination. [Editor's note: This section is effective July 1, 2020.] (1) The administrator shall adopt rules governing procedures and standards for an examination under section 38-13-1002, including rules for use of an estimation, extrapolation, and statistical sampling in conducting an examination. (2) An examination under section 38-13-1002 must be performed under rules adopted under subsection (1) of this section and with generally accepted examination practices and standards applicable to an unclaimed-property examination. (3) If a person subject to examination under section 38-13-1002 has filed the reports required by sections 38-13-401 and 38-13-1001 and has retained the records required by section 38-13-404, the following rules apply: (a) The examination must include a review of the person's records; (b) The examination must not be based on an estimate unless the person expressly consents in a record to the use of an estimate; and (c) The person conducting the examination shall consider the evidence presented in good faith by the person in preparing the findings of the examination under section 38-13-1007. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 445, § 1, effective July 1, 2020. 38-13-1004. Records obtained in examination. [Editor's note: This section is effective July 1, 2020.] (1) Records obtained and records, including work papers, compiled by the administrator in the course of conducting an examination under section 38-13-1002: (a) Are subject to the confidentiality and security provisions of part 14 of this article 13 and are not public records; Colorado Revised Statutes 2019 Page 196 of 707 Uncertified Printout (b) May be used by the administrator in an action to collect property or otherwise enforce this article 13; (c) May be used in a joint examination conducted with another state, the United States, a foreign country or subordinate unit of a foreign country, or any other governmental entity if the governmental entity conducting the examination is legally bound to maintain the confidentiality and security of information obtained from a person subject to examination in a manner substantially equivalent to part 14 of this article 13; (d) Must be disclosed, on request, to the person that administers the unclaimed property law of another state for that state's use in circumstances equivalent to circumstances described in this part 10, if the other state is required to maintain the confidentiality and security of information obtained in a manner substantially equivalent to part 14 of this article 13; (e) Shall be produced by the administrator under an administrative or judicial subpoena or administrative or court order; and (f) Shall be produced by the administrator on request of the person subject to the examination in an administrative or judicial proceeding relating to the property. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 446, § 1, effective July 1, 2020. 38-13-1005. Evidence of unpaid debt or undischarged obligation. [Editor's note: This section is effective July 1, 2020.] (1) A record of a putative holder showing an unpaid debt or undischarged obligation is prima facie evidence of the debt or obligation. (2) A putative holder may establish by a preponderance of the evidence that there is no unpaid debt or undischarged obligation for a debt or obligation described in subsection (1) of this section or that the debt or obligation was not, or no longer is, a fixed and certain obligation of the putative holder. (3) A putative holder may overcome prima facie evidence under subsection (1) of this section by establishing by a preponderance of the evidence that a check, draft, or similar instrument was: (a) Issued as an unaccepted offer in settlement of an unliquidated amount; (b) Issued but later was replaced with another instrument because the earlier instrument was lost or contained an error that was corrected; (c) Issued to a party affiliated with the issuer; (d) Paid, satisfied, or discharged; (e) Issued in error; (f) Issued without consideration; (g) Issued but there was a failure of consideration; (h) Voided not later than ninety days after issuance for a valid business reason set forth in a contemporaneous record; or (i) Issued but not delivered to the third-party payee for a sufficient reason recorded within a reasonable time after issuance. Colorado Revised Statutes 2019 Page 197 of 707 Uncertified Printout (4) In asserting a defense under this section, a putative holder may present evidence of a course of dealing between the putative holder and the apparent owner or of custom and practice. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 446, § 1, effective July 1, 2020. 38-13-1006. Failure of person examined to retain records. [Editor's note: This section is effective July 1, 2020.] If a person subject to examination under section 38-13-1002 does not retain the records required by section 38-13-404, the administrator may determine the value of property due using a reasonable method of estimation based on all information available to the administrator, including extrapolation and use of statistical sampling when appropriate and necessary, consistent with examination procedures and standards adopted under section 38-131003 (1) and in accordance with section 38-13-1003 (2). Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 447, § 1, effective July 1, 2020. 38-13-1007. Report to person whose records were examined. [Editor's note: This section is effective July 1, 2020.] (1) At the conclusion of an examination under section 38-131002, the administrator shall provide to the person whose records were examined a complete and unredacted examination report that specifies: (a) The work performed; (b) The property types reviewed; (c) The methodology of any estimation technique, extrapolation, or statistical sampling used in conducting the examination; (d) Each calculation showing the value of property determined to be due; and (e) The findings of the person conducting the examination. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 447, § 1, effective July 1, 2020. 38-13-1008. Complaint to administrator about conduct of person conducting examination. [Editor's note: This section is effective July 1, 2020.] (1) If a person subject to examination under section 38-13-1002 believes the person conducting the examination has made an unreasonable or unauthorized request or is not proceeding expeditiously to complete the examination, the person in a record may ask the administrator to intervene and take appropriate remedial action, including countermanding the request of the person conducting the examination, imposing a time limit for completion of the examination, or reassigning the examination to another person. (2) If a person in a record requests a conference with the administrator to present matters that are the basis of a request under subsection (1) of this section, the administrator shall hold the Colorado Revised Statutes 2019 Page 198 of 707 Uncertified Printout conference not later than thirty days after receiving the request. The administrator may hold the conference in person, by telephone, or by electronic means. (3) If a conference is held under subsection (2) of this section, not later than thirty days after the conference ends, the administrator shall provide a report in a record of the conference to the person that requested the conference. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 448, § 1, effective July 1, 2020. 38-13-1009. Administrator's contract with another to conduct examination definition. [Editor's note: This section is effective July 1, 2020.] (1) In this section, "related to the administrator" refers to an individual who is: (a) The administrator's spouse, partner in a civil union, domestic partner, or reciprocal beneficiary; (b) The administrator's child, stepchild, grandchild, parent, stepparent, sibling, stepsibling, half-sibling, aunt, uncle, niece, or nephew; (c) A spouse, partner in a civil union, domestic partner, or reciprocal beneficiary of an individual listed in subsection (1)(b) of this section; or (d) Any individual residing in the administrator's household. (2) The administrator may contract with a person to conduct an examination under this part 10. The contract may be awarded only under the "Procurement Code", articles 101 to 112 of title 24. (3) If the person with which the administrator contracts under subsection (2) of this section is: (a) An individual, the individual must not be related to the administrator; or (b) A business entity, the entity must not be owned in whole or in part by the administrator or an individual related to the administrator. (4) At least sixty days before assigning a person under contract with the administrator under subsection (2) of this section to conduct an examination, the administrator shall demand in a record that the person to be examined submit a report and deliver property that is previously unreported. (5) If the administrator contracts with a person under subsection (2) of this section: (a) The contract may provide for compensation of the person based on a fixed fee, hourly fee, or contingent fee; (b) A contingent fee arrangement must include a provision that: (I) Requires the person under contract with the administrator, upon completion of the examination, to provide the administrator with a statement of the amount of the contingent fee, the hours spent on the examination, and the average hourly rate for services provided by the person based on the contingent fee; and (II) Specifies an alternative hourly rate, not to exceed five hundred dollars per hour, at which the person under contract with the administrator is compensated in the event that the Colorado Revised Statutes 2019 Page 199 of 707 Uncertified Printout statement provided by the person under subsection (5)(b)(I) of this section indicates an average hourly rate for the examination of more than five hundred dollars per hour; (c) A contingent fee arrangement must not provide for a payment that exceeds twelve percent of the amount or value of property paid or delivered as a result of the examination; and (d) On request by a person subject to examination by a contractor, the administrator shall deliver to the person a complete and unredacted copy of the contract and any contract between the contractor and a person employed or engaged by the contractor to conduct the examination. (6) A contract under subsection (2) of this section is subject to public disclosure without redaction under the "Colorado Open Records Act", part 2 of article 72 of title 24. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 448, § 1, effective July 1, 2020. 38-13-1010. Limit on future employment. [Editor's note: This section is effective July 1, 2020.] The administrator or an individual employed by the administrator who participates in, recommends, or approves the award of a contract under section 38-13-1009 (2) on or after July 1, 2020, must not be employed by, contracted with, or compensated in any capacity by the contractor or an affiliate of the contractor for two years after the latest of participation in, recommendation of, or approval of the award or conclusion of the contract. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 449, § 1, effective July 1, 2020. 38-13-1011. Determination of liability for unreported reportable property. [Editor's note: This section is effective July 1, 2020.] If the administrator determines from an examination conducted under section 38-13-1002 that a putative holder has failed or refused to pay or deliver property to the administrator that is reportable under this article 13, the administrator shall issue a determination of the putative holder's liability to pay or deliver and provide to the putative holder notice in a record of the determination. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 450, § 1, effective July 1, 2020. PART 11 DETERMINATION OF LIABILITY PUTATIVE HOLDER REMEDIES 38-13-1101. Informal conference. [Editor's note: This section is effective July 1, 2020.] (1) Not later than thirty days after receipt of a notice under section 38-13-1011, a putative holder may request an informal conference with the administrator to review the Colorado Revised Statutes 2019 Page 200 of 707 Uncertified Printout determination. Except as otherwise provided in this section, the administrator may designate an employee to act on behalf of the administrator. (2) If a putative holder makes a timely request under subsection (1) of this section for an informal conference: (a) Not later than twenty days after the date of the request, the administrator shall set the time and place of the conference; (b) The administrator shall give the putative holder notice in a record of the time and place of the conference; (c) The conference may be held in person, by telephone, or by electronic means, as determined by the administrator; (d) The request tolls the ninety-day period under sections 38-13-1103 and 38-13-1104 until notice of a decision under subsection (2)(g) of this section has been given to the putative holder or the putative holder withdraws the request for the conference; (e) The conference may be postponed, adjourned, and reconvened as the administrator determines appropriate; (f) The administrator or administrator's designee, with the approval of the administrator, may modify a determination made under section 38-13-1011 or withdraw it; and (g) The administrator shall issue a decision in a record and provide a copy of the record to the putative holder and examiner not later than twenty days after the conference ends. (3) A conference under subsection (2) of this section is not an administrative remedy and is not a contested case subject to the "State Administrative Procedure Act", article 4 of title 24. An oath is not required and the rules of evidence do not apply in the conference. (4) At a conference under subsection (2) of this section, the putative holder shall be given an opportunity to confer informally with the administrator and the person that examined the records of the putative holder to: (a) Discuss the determination made under section 38-13-1011; and (b) Present any issue concerning the validity of the determination. (5) If the administrator fails to act within the period prescribed in subsection (2) of this section, the failure does not affect a right of the administrator; except that interest does not accrue on the amount for which the putative holder was determined to be liable under section 3813-1011 during the period in which the administrator failed to act until the earlier of: (a) The date under section 38-13-1103 when the putative holder initiates administrative review or files an action under section 38-13-1104; or (b) Ninety days after the putative holder received notice of the administrator's determination under section 38-13-1011 if no review was initiated under section 38-13-1103 and no action was filed under section 38-13-1104. (6) The administrator may hold an informal conference with a putative holder about a determination under section 38-13-1011 without a request at any time before the putative holder initiates administrative review under section 38-13-1103 or files an action under section 38-131104. Colorado Revised Statutes 2019 Page 201 of 707 Uncertified Printout (7) Interest and penalties under section 38-13-1204 continue to accrue on property not reported, paid, or delivered as required by this article 13 after the initiation, and during the pendency, of an informal conference under this section. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 450, § 1, effective July 1, 2020. 38-13-1102. Review of administrator's determination. [Editor's note: This section is effective July 1, 2020.] (1) A putative holder may seek relief from a determination under section 38-13-1011 or 38-13-1205 by: (a) Administrative review under section 38-13-1103; or (b) Judicial review under section 38-13-1104. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 451, § 1, effective July 1, 2020. 38-13-1103. Administrative review. [Editor's note: This section is effective July 1, 2020.] (1) Not later than ninety days after receiving notice of the administrator's determination under section 38-13-1011 or that a civil penalty has been imposed under section 38-13-1205, a putative holder or a holder may initiate a proceeding under the "State Administrative Procedure Act", article 4 of title 24, for review of the administrator's determination. (2) A final decision in an administrative proceeding initiated under subsection (1) of this section is subject to judicial review by the district court for the city and county of Denver. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 451, § 1, effective July 1, 2020. 38-13-1104. Judicial remedy. [Editor's note: This section is effective July 1, 2020.] (1) Not later than ninety days after receiving notice of the administrator's determination under section 38-13-1011 or that a civil penalty has been imposed under section 38-13-1205, a putative holder or a holder may: (a) File an action against the administrator in the district court for the city and county of Denver, challenging all or part of the administrator's determination of liability or imposition of a civil penalty and seeking a declaration that the determination or imposition is unenforceable, in whole or in part; or (b) Pay the civil penalty or pay the amount or deliver the property the administrator determined must be paid or delivered to the administrator and, not later than six months after payment or delivery, file an action against the administrator in the district court for the city and county of Denver for a refund of all or part of the amount paid or return of all or part of the property delivered. Colorado Revised Statutes 2019 Page 202 of 707 Uncertified Printout (2) If a holder pays a civil penalty or a putative holder pays or delivers property determined by the administrator to be paid or delivered to the administrator at any time after the holder or putative holder files an action under subsection (1)(a) of this section, the court shall continue the action as if it had been filed originally as an action for a refund or return of property under subsection (1)(b) of this section. (3) On the final determination of an action filed under subsection (1) of this section, the court may, on application, award to the plaintiff their reasonable attorney fees, costs, and expenses of litigation. (4) A holder or putative holder that is the prevailing party in an action under subsection (1) of this section for refund of money paid to the administrator is entitled to interest on the amount refunded, at the same rate a holder is required to pay to the administrator under section 38-13-1204 (1), from the date paid to the administrator until the date of the refund. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 452, § 1, effective July 1, 2020. PART 12 ENFORCEMENT BY ADMINISTRATOR 38-13-1201. Judicial action to enforce liability. [Editor's note: This section is effective July 1, 2020.] (1) If a determination under section 38-13-1011 becomes final and is not subject to administrative or judicial review, the administrator may commence an action in the district court for the city and county of Denver or in an appropriate court of another state to enforce the determination and secure payment or delivery of past due, unpaid, or undelivered property. The action must be brought not later than one year after the determination becomes final. (2) In an action under subsection (1) of this section, if no court in this state has jurisdiction over the defendant, the administrator may commence an action in any court having jurisdiction over the defendant. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 452, § 1, effective July 1, 2020. 38-13-1202. Interstate and international agreement - cooperation. [Editor's note: This section is effective July 1, 2020.] (1) Subject to subsection (2) of this section, the administrator may: (a) Exchange information with another state or foreign country relating to property presumed abandoned or relating to the possible existence of property presumed abandoned; and Colorado Revised Statutes 2019 Page 203 of 707 Uncertified Printout (b) Authorize in a record another state or foreign country or a person acting on behalf of the other state or country to examine its records of a putative holder as provided in part 10 of this article 13. (2) An exchange or examination under subsection (1) of this section may be done only if the state or foreign country has confidentiality and security requirements substantially equivalent to those in part 14 of this article 13 or agrees in a record to be bound by this state's confidentiality and security requirements. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 453, § 1, effective July 1, 2020. 38-13-1203. Action involving another state or foreign country. [Editor's note: This section is effective July 1, 2020.] (1) The administrator may join another state or foreign country to examine and seek enforcement of this article 13 against a putative holder. (2) On request of another state or foreign country, the attorney general may commence an action on behalf of the other state or country to enforce, in this state, the law of the other state or country against a putative holder subject to a claim by the other state or country, if the other state or country agrees to pay costs incurred by the attorney general in the action. (3) The administrator may request the official authorized to enforce the unclaimed property law of another state or foreign country to commence an action to recover property in the other state or country on behalf of the administrator. This state shall pay the costs, including reasonable attorney fees and expenses, incurred by the other state or foreign country in an action under this subsection (3). (4) The administrator may pursue an action on behalf of this state to recover property subject to this article 13 but delivered to the custody of another state if the administrator believes the property is subject to the custody of the administrator. (5) The administrator may retain an attorney in this state, another state, or a foreign country to commence an action to recover property on behalf of the administrator and may agree to pay attorney fees based in whole or in part on a fixed fee, hourly fee, or percentage of the amount or value of property recovered in the action. (6) Expenses incurred by this state in an action under this section may be paid from property received under this article 13 or the net proceeds of the property. Expenses paid to recover property shall not be deducted from the amount that is subject to a claim under this article 13 by the owner. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 453, § 1, effective July 1, 2020. 38-13-1204. Interest and penalty for failure to act in timely manner. [Editor's note: This section is effective July 1, 2020.] (1) A holder that fails to report, pay, or deliver property within the time prescribed by this article 13 shall pay to the administrator interest at the annual Colorado Revised Statutes 2019 Page 204 of 707 Uncertified Printout rate specified in section 39-21-110.5 on the property or value of the property from the date the property should have been reported, paid, or delivered to the administrator until the date reported, paid, or delivered. (2) Except as otherwise provided in section 38-13-1205 or 38-13-1206, the administrator may require a holder that fails to report, pay, or deliver property within the time prescribed by this article 13 to pay to the administrator, in addition to interest included under subsection (1) of this section, a civil penalty of two hundred dollars for each day the duty is not performed, up to a cumulative maximum amount of five thousand dollars. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 454, § 1, effective July 1, 2020. 38-13-1205. Other civil penalties. [Editor's note: This section is effective July 1, 2020.] (1) If a holder enters into a contract or other arrangement for the purpose of evading an obligation under this article 13 or otherwise willfully fails to perform a duty imposed on the holder under this article 13, the administrator may require the holder to pay the administrator, in addition to interest as provided in section 38-13-1204 (1), a civil penalty of one thousand dollars for each day the obligation is evaded or the duty is not performed, up to a cumulative maximum amount of twenty-five thousand dollars, plus twenty-five percent of the amount or value of property that should have been but was not reported, paid, or delivered as a result of the evasion or failure to perform. (2) If a holder makes a fraudulent report under this article 13, the administrator may require the holder to pay to the administrator, in addition to interest under section 38-13-1204 (1), a civil penalty of one thousand dollars for each day from the date the report was made until corrected, up to a cumulative maximum amount of twenty-five thousand dollars, plus twentyfive percent of the amount or value of any property that should have been reported but was not included in the report or was underreported. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 454, § 1, effective July 1, 2020. 38-13-1206. Waiver of interest and penalty. [Editor's note: This section is effective July 1, 2020.] The administrator shall waive a penalty under section 38-13-1204 (2) if the administrator determines that the holder acted in good faith and without negligence. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 454, § 1, effective July 1, 2020. PART 13 AGREEMENT TO LOCATE PROPERTY OF Colorado Revised Statutes 2019 Page 205 of 707 Uncertified Printout APPARENT OWNER HELD BY ADMINISTRATOR 38-13-1301. When agreement to locate property enforceable. [Editor's note: This section is effective July 1, 2020.] (1) An agreement by an apparent owner and another person, the primary purpose of which is to locate, deliver, recover, or assist in the location, delivery, or recovery of property held by the administrator, is enforceable only if the agreement: (a) Is in a record that clearly states the nature of the property and the services to be provided; (b) Is signed by or on behalf of the apparent owner; (c) States the amount or value of the property reasonably expected to be recovered, computed before and after a fee or other compensation to be paid to the person has been deducted; and (d) States that the apparent owner may directly file a claim for property with the administrator of a state's unclaimed property act, who in Colorado is the state treasurer, without being charged a fee by the administrator. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 454, § 1, effective July 1, 2020. 38-13-1302. When agreement to locate property void - rules. [Editor's note: This section is effective July 1, 2020.] (1) Subject to subsection (2) of this section, an agreement under section 38-13-1301 is void if it is entered into during the period beginning on the date the property was paid or delivered by a holder to the administrator and ending twenty-four months after the payment or delivery. (2) If a provision in an agreement described in subsection (1) of this section applies to mineral proceeds for which compensation is to be paid to the other person based in whole or in part on a part of the underlying minerals or mineral proceeds not then presumed abandoned, the provision is void regardless of when the agreement was entered into. (3) The administrator shall adopt rules governing the maximum compensation in an agreement under subsection (1) of this section. An agreement that provides for compensation in an amount that exceeds the maximum amount established by rule is unenforceable except by the apparent owner. An apparent owner or the administrator, acting on behalf of an apparent owner, or both, may file an action in the district court for the city and county of Denver to reduce the compensation to the maximum amount. On the final determination of an action filed under this subsection (3), the court may, on application, award the plaintiff its reasonable attorney fees, costs, and expenses of litigation. (4) An apparent owner or the administrator may assert that an agreement described in this section is void on a ground other than it provides for payment of unconscionable compensation. Colorado Revised Statutes 2019 Page 206 of 707 Uncertified Printout (5) This section does not apply to an apparent owner's agreement with an attorney to pursue a claim for recovery of specifically identified property held by the administrator or to contest the administrator's denial of a claim for recovery of the property. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 455, § 1, effective July 1, 2020. 38-13-1303. Right of agent of apparent owner to recover property held by administrator. [Editor's note: This section is effective July 1, 2020.] (1) An apparent owner that contracts with a person to locate, deliver, recover, or assist in the location, delivery, or recovery of property of the apparent owner that is held by the administrator may designate the person as the agent of the apparent owner. The designation must be in a record signed by the apparent owner. (2) The administrator shall give the agent of the apparent owner nonconfidential status updates. The administrator shall not provide the agent of the apparent owner with any personal information as defined in section 38-13-1401 or confidential information described in section 38-13-1402. (3) If authorized by the apparent owner, the agent of the apparent owner may bring an action against the administrator on behalf of and in the name of the apparent owner. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 456, § 1, effective July 1, 2020. 38-13-1304. Agreements to locate reported property - overbids from foreclosure sales. [Editor's note: This section is effective July 1, 2020.] (1) Notwithstanding any provision of section 38-13-1303 to the contrary, an agreement to pay compensation to recover or assist in recovering an unclaimed overbid transferred to the administrator under section 38-38-111 is: (a) Not enforceable unless entered into at least two years after the date of the transfer; (b) Enforceable if: (I) The agreement is in writing and signed by the owner, as defined in section 38-38-111 (5); (II) The agreement describes the property and the date of the foreclosure sale from which the overbid was derived; (III) The agreement sets forth the nature of the services to be provided; (IV) The compensation to be paid under the terms of the agreement does not exceed: (A) Twenty percent of the amount of the overbid if entered into at least two years, but not more than three years, after the date of the transfer; or (B) Thirty percent of the amount of the overbid if entered into more than three years after the date of the transfer; and Colorado Revised Statutes 2019 Page 207 of 707 Uncertified Printout (V) States that the apparent owner may directly file a claim for property with the administrator, who in Colorado is the state treasurer, without being charged a fee by the administrator. (2) A person who induces or attempts to induce another person to enter into an agreement described in this section that does not comply with all requirements of subsection (1) of this section is guilty of a misdemeanor, as defined in section 18-1.3-504, and, upon conviction, shall be punished by imprisonment in the county jail for up to six months, a fine of up to ten thousand dollars, or both. (3) Nothing in subsection (1) of this section prohibits an owner from asserting, at any time, that a written, signed agreement to recover or assist in recovering an overbid is based on excessive or unjust consideration. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 456, § 1, effective July 1, 2020. Editor's note: This section is similar to former § 38-13-128.5 as it existed prior to 2020. PART 14 CONFIDENTIALITY AND SECURITY OF INFORMATION 38-13-1401. Definitions - applicability. [Editor's note: This section is effective July 1, 2020.] (1) In this part 14, "personal information" means: (a) Information that identifies or reasonably can be used to identify an individual, such as first and last name in combination with the individual's: (I) Social security number or other government-issued number or identifier; (II) Date of birth; (III) Home or physical address; (IV) Electronic-mail address or other online contact information or internet provider address; (V) Financial account number or credit or debit card number; (VI) Biometric data, health or medical data, or insurance information; or (VII) Passwords or other credentials that permit access to an online or other account; (b) Personally identifiable financial or insurance information, including nonpublic personal information defined by applicable federal law; and (c) Any combination of data that, if accessed, disclosed, modified, or destroyed without authorization of the owner of the data or is lost or misused, would require notice or reporting under applicable federal and state privacy and data security law, whether or not the administrator or the administrator's agent is subject to the law. (2) Provisions of this part 14 applicable to the administrator or the administrator's records apply to an administrator's agent. Colorado Revised Statutes 2019 Page 208 of 707 Uncertified Printout Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 457, § 1, effective July 1, 2020. 38-13-1402. Confidential information. [Editor's note: This section is effective July 1, 2020.] (1) Except as otherwise provided in this article 13, the following are confidential and exempt from public inspection or disclosure: (a) Records of the administrator and the administrator's agent related to the administration of this article 13; (b) Reports and records of a holder in possession of the administrator or the administrator's agent; and (c) Personal information and other information derived or otherwise obtained by or communicated to the administrator or the administrator's agent from an examination under this article 13 of the records of a person. (2) A record or other information that is confidential under the law of this state other than this article 13, another state, or the United States continues to be confidential when disclosed or delivered under this article 13 to the administrator or administrator's agent. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 458, § 1, effective July 1, 2020. 38-13-1403. When confidential information may be disclosed. [Editor's note: This section is effective July 1, 2020.] (1) When reasonably necessary to enforce or implement this article 13, the administrator may disclose confidential information concerning property held by the administrator or the administrator's agent only to: (a) Another department or agency of this state or the United States; (b) The person that administers the unclaimed property law of another state, if the other state accords substantially reciprocal privileges to the administrator of this state and if the other state is required to maintain the confidentiality and security of information obtained in a manner substantially equivalent to the requirements of this part 14; and (c) A person subject to an examination as required by section 38-13-1004 (1)(f). (2) Except as otherwise provided in section 38-13-1402 (1), the administrator shall include in published notices and on a website or database required by section 38-13-503 (3) the name of each apparent owner of property held by the administrator. The administrator may include in published notices, printed publications, telecommunications, the internet, or other media and on the website or in the database additional information concerning the apparent owner's property if the administrator believes the information will assist in identifying and returning property to the owner and does not disclose personal information except the home or physical address of an apparent owner. (3) The administrator and the administrator's agent shall not use confidential information provided to them or in their possession except as expressly authorized by this article 13 or required by law other than this article 13. Colorado Revised Statutes 2019 Page 209 of 707 Uncertified Printout Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 458, § 1, effective July 1, 2020. 38-13-1404. Confidentiality agreement. [Editor's note: This section is effective July 1, 2020.] (1) A person to be examined under section 38-13-1002 may require, as a condition of disclosure of the records of the person to be examined, that each person having access to the records disclosed in the examination execute and deliver to the person to be examined a confidentiality agreement that: (a) Is in a form that is reasonably satisfactory to the administrator; and (b) Requires the person having access to records to comply with the provisions of this part 14 applicable to the person. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 459, § 1, effective July 1, 2020. 38-13-1405. No confidential information in notice. [Editor's note: This section is effective July 1, 2020.] Except as otherwise provided in sections 38-13-501 and 38-13-502, a holder is not required under this article 13 to include confidential information in a notice the holder is required to provide to an apparent owner under this article 13. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 459, § 1, effective July 1, 2020. 38-13-1406. Security of information. [Editor's note: This section is effective July 1, 2020.] (1) If a holder is required to include confidential information in a report to the administrator, the information must be provided by secure means. (2) If confidential information in a record is provided to and maintained by the administrator or administrator's agent as required by this article 13, the administrator or administrator's agent shall: (a) Implement administrative, technical, and physical safeguards designed to protect the security, confidentiality, and integrity of the information as required by the law of this state and federal law whether or not the administrator or the administrator's agent is subject to the law; (b) Protect against reasonably anticipated threats or hazards to the security, confidentiality, or integrity of the information; and (c) Protect against unauthorized access to or use of the information that could result in substantial harm or inconvenience to a holder or the holder's customers, including insureds, annuitants, and policy or contract owners and their beneficiaries. (3) The administrator: (a) After notice and comment, shall adopt and implement a security plan that identifies and assesses reasonably foreseeable internal and external risks to confidential information in the administrator's possession and seeks to mitigate the risks; and Colorado Revised Statutes 2019 Page 210 of 707 Uncertified Printout (b) Shall ensure that an administrator's agent adopts and implements a similar plan with respect to confidential information in the agent's possession. (4) The administrator and the administrator's agent shall educate and train their employees regarding the plan adopted under subsection (3) of this section. (5) The administrator and the administrator's agent shall in a secure manner return or destroy all confidential information no longer reasonably needed under this article 13. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 459, § 1, effective July 1, 2020. 38-13-1407. Security breach. [Editor's note: This section is effective July 1, 2020.] (1) Except to the extent prohibited by law other than this article 13, the administrator or administrator's agent shall notify a holder as soon as practicable of: (a) Suspected loss, misuse, or unauthorized access, disclosure, modification, or destruction of confidential information obtained from the holder in the possession of the administrator or an administrator's agent; and (b) Any interference with operations in any system hosting or housing confidential information that: (I) Compromises the security, confidentiality, or integrity of the information; or (II) Creates a substantial risk of identity fraud or theft. (2) Except as necessary to inform an insurer, attorney, investigator, or others as required by law, the administrator and an administrator's agent shall not disclose, without the express consent in a record of the holder, an event described in subsection (1) of this section to a person whose confidential information was supplied by the holder. (3) If an event described in subsection (1) of this section occurs, the administrator and the administrator's agent shall: (a) Take action necessary for the holder to understand and minimize the effects of the event and determine its scope; and (b) Cooperate with the holder with respect to: (I) Any notification required by law concerning a data or other security breach; and (II) A regulatory inquiry, litigation, or similar action. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 460, § 1, effective July 1, 2020. 38-13-1408. Indemnification for breach. [Editor's note: This section is effective July 1, 2020.] (1) If a claim is made or action commenced arising out of an event described in section 38-13-1407 (1) relating to confidential information possessed by an administrator's agent, the administrator's agent shall indemnify, defend, and hold harmless a holder and the holder's affiliates, officers, directors, employees, and agents as to: (a) Any claim or action; and Colorado Revised Statutes 2019 Page 211 of 707 Uncertified Printout (b) A liability, obligation, loss, damage, cost, fee, penalty, fine, settlement, charge, or other expense, including reasonable attorney's fees and costs, established by the claim or action. (2) The administrator shall require an administrator's agent that will receive confidential information required under this article 13 to maintain adequate insurance for indemnification obligations of the administrator's agent under subsection (1) of this section. The agent required to maintain the insurance shall provide evidence of the insurance to: (a) The administrator not less frequently than annually; and (b) The holder on commencement of an examination and annually thereafter until all confidential information is returned or destroyed under section 38-13-1406 (5). Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 460, § 1, effective July 1, 2020. PART 15 MISCELLANEOUS PROVISIONS 38-13-1501. Uniformity of application and construction. [Editor's note: This section is effective July 1, 2020.] In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 461, § 1, effective July 1, 2020. 38-13-1502. Relation to electronic signatures in global and national commerce act. [Editor's note: This section is effective July 1, 2020.] This article 13 modifies, limits, or supersedes the "Electronic Signatures in Global and National Commerce Act", 15 U.S.C. sec. 7001 et seq., but does not modify, limit, or supersede section 101 (c) of that act, 15 U.S.C. sec. 7001 (c), or authorize electronic delivery of any of the notices described in section 103 (b) of that act, 15 U.S.C. sec. 7003 (b). Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 461, § 1, effective July 1, 2020. 38-13-1503. Transitional provision. [Editor's note: This section is effective July 1, 2020.] (1) An initial report filed under this article 13 for property that was not required to be reported before July 1, 2020, but that is required to be reported under this article 13, must include all items of property that would have been presumed abandoned during the five-year period preceding July 1, 2020, as if this article 13 had been in effect during that period. Colorado Revised Statutes 2019 Page 212 of 707 Uncertified Printout (2) This article 13 does not relieve a holder of a duty that arose before July 1, 2020, to report, pay, or deliver property. Subject to section 38-13-609, a holder that did not comply with the law governing unclaimed property before July 1, 2020, is subject to applicable provisions for enforcement and penalties in effect before July 1, 2020. Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 461, § 1, effective July 1, 2020. 38-13-1504. Application of article - local government - exemption - notice of property. [Editor's note: This section is effective July 1, 2020.] (1) Except as otherwise provided in this section, the provisions of this article 13 do not apply to a local government that is a holder of property if: (a) The local government has a local ordinance or resolution relating to the disposition of property that conflicts with this article 13; (b) The local ordinance or resolution described in subsection (1)(a) of this section requires the local government to hold the property for the owner for at least five years after the date it is presumed abandoned under section 38-13-201 (1)(j); and (c) The local government provides the administrator with the information described in subsection (2) of this section in the same electronic format as a holder is required to use to report unclaimed property. (2) To satisfy subsection (1)(c) of this section, a local government must provide the administrator with the following information on or before November 1 of each year: (a) An alphabetical list of the owners for whom the local government holds property that is presumed abandoned under section 38-13-201 (1)(j); and (b) The value of the abandoned property that the exempt local government holds for each owner. (3) The administrator shall include the information received in accordance with subsection (2) of this section, along with a statement that a person claiming to be the owner must file a claim for the property with the specific local government that has the property, as part of the website or database maintained under section 38-13-503 (3). Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 461, § 1, effective July 1, 2020. LOANED PROPERTY ARTICLE 14 Loans to Museums Colorado Revised Statutes 2019 Page 213 of 707 Uncertified Printout 38-14-101. Legislative declaration. The general assembly hereby finds and declares that the growth and maintenance of museum collections, both public and private, is a matter of general public interest to the citizens of Colorado. Because museums of all kinds depend upon loans of various articles of property to augment their collections and because uncertainty regarding title to and responsibility for loaned property is a hindrance to museums in their efforts to maintain, repair, and dispose of property in their possession, it is the purpose of this article to fairly and reasonably allocate responsibilities and to provide rules for the determination of title and financial responsibilities in certain cases. Source: L. 88: Entire article added, p. 1250, § 1, effective April 14. 38-14-102. Definitions. As used in this article, unless the context otherwise requires: (1) "Loaned property" means any property accepted by a museum which is not accompanied by a transfer of title. (2) "Museum" means a nonprofit or public institution which is organized and operated primarily for the purpose of collecting, cataloging, exhibiting, or archiving objects of educational, scientific, historical, or aesthetic interest and the collection of which is generally open to the public. The term includes, without limitation, historical societies, parks, monuments, and libraries. (3) "Owner" and "lender" mean the actual owner of loaned property or his duly authorized agent, trustee, conservator, custodian, heir, or fiduciary, whether an individual, association, trust, partnership, corporation, or any similar organization capable of having an interest in property. (4) "Property" means all tangible objects, animate and inanimate, collected or maintained by a museum for educational, historic, or exhibition purposes. Source: L. 88: Entire article added, p. 1250, § 1, effective April 14. 38-14-103. Limitations on recovery of loaned property. (1) Subject to the contrary terms of any written agreement, no action may be brought for damages or the recovery of any loaned property when: (a) Seven years have passed without written contact between the museum and the lender and the lender's identity or current address is unknown to the museum; or (b) More than one hundred twenty days have passed since a museum has given written notice of termination of a loan pursuant to section 38-14-104 and the lender has not reclaimed the loaned property; except that no lender shall be prejudiced in this regard for want of reasonable cooperation from the museum holding his loaned property. Source: L. 88: Entire article added, p. 1251, § 1, effective April 14. Colorado Revised Statutes 2019 Page 214 of 707 Uncertified Printout 38-14-104. Termination of loans by museums. (1) A museum may give written notice of termination of a loan at any time after the expiration of a loan made for a specified period or at any time if the loan is for an indefinite period. Any loan not evidenced by a writing stating the term of the loan and signed by the lender shall be deemed a loan for an indefinite period. (2) Notice given under this section shall contain: (a) A description of the loaned property sufficient to identify it; (b) The last-known name and address of the lender; (c) The date of the loan or the date the loaned property was accepted by the museum if the loan was not evidenced by a writing; (d) The name, address, and telephone number of the appropriate officer or official at the museum to be contacted regarding the loan; (e) A statement referring the lender to this article and informing him that failure to reclaim his loaned property within one hundred twenty days shall result in the loss of all rights in said property. Source: L. 88: Entire article added, p. 1251, § 1, effective April 14. 38-14-105. Manner of giving notice. The notice required in section 38-14-103 (1)(b) shall be sufficient when mailed by certified mail, return receipt requested, delivery restricted to owner as defined in section 38-14-102 (3), to the last-known address of the lender as reflected in the records of the museum. Source: L. 88: Entire article added, p. 1251, § 1, effective April 14. 38-14-106. Notice upon accepting loaned property. On and after July 1, 1988, when a museum accepts loaned property or receives written notice of a change in ownership of loaned property, the museum shall inform the lender or new lender within thirty days, in writing, of the provisions of section 38-14-103. Where notice is not given in accordance with this section, the provisions of section 38-14-103 (1)(b) shall not apply. Source: L. 88: Entire article added, p. 1251, § 1, effective April 14. 38-14-107. Responsibilities of owners of loaned property. In all cases it shall be the responsibility of the owner of loaned property to notify the museum in writing of his identity and current address. It shall be the responsibility of any new owner acquiring loaned property to notify the museum within sixty days of his name and address. Any owner of loaned property shall, upon request from a museum holding loaned property, promptly provide evidence of ownership satisfactory to the museum. This section shall apply to all changes in ownership, whether by sale, gift, devise, operation of law, or any other means. So long as a museum deals honestly and in good faith, no museum shall be prejudiced by reason of any failure to deal with Colorado Revised Statutes 2019 Page 215 of 707 Uncertified Printout the true owner of any loaned property if the owner has failed to comply with the requirements of this section. Source: L. 88: Entire article added, p. 1252, § 1, effective April 14. 38-14-108. Museum's lien for expenses. When the lender of loaned property is unknown, a museum shall have a lien against the value of specific loaned property for expenses reasonably necessary to protect the loaned property from ordinary decay and deterioration due to natural causes, from theft, or from vandalism. Source: L. 88: Entire article added, p. 1252, § 1, effective April 14. 38-14-109. Representations as to ownership. A museum shall not be liable for actions taken in reasonable reliance upon the representations of one who first transfers an item of property to the museum that he is the true owner of the loaned property. Source: L. 88: Entire article added, p. 1252, § 1, effective April 14. 38-14-110. Disputed ownership. In cases of disputed ownership of loaned property, a museum shall not be held liable for its refusal to surrender loaned property in its possession except in reliance upon a court order or judgment. Source: L. 88: Entire article added, p. 1252, § 1, effective April 14. 38-14-111. Title of property purchased from museum. When a museum which acquired title to loaned property pursuant to section 38-14-103 sells said property, the purchaser shall acquire good title free of all claims and defenses. Source: L. 88: Entire article added, p. 1252, § 1, effective April 14. 38-14-112. Property not to escheat. Loaned property in the possession of a museum at the time of the owner's death which would otherwise escheat to the state under section 15-11-105 or 15-12-914, C.R.S., shall not so escheat but shall become the property of the museum to which it is then loaned. Source: L. 88: Entire article added, p. 1252, § 1, effective April 14. LIENS ARTICLE 20 Colorado Revised Statutes 2019 Page 216 of 707 Uncertified Printout Lien on Personal Property Cross references: For general tax liens, see articles 1 to 13 of title 39; for enforcement of tax liens, see article 20 of title 39; for mortgages and trust deeds on real property, see articles 35 and 37 to 40 of this title; for judgment liens, see article 52 of title 13; for liens on motor vehicles, see article 6 of title 42; for partido contracts, see § 35-54-106. PART 1 LIEN ON PERSONAL PROPERTY 38-20-101. Definitions. As used in this article, unless the context otherwise requires: (1) "Customer" means any person who: (a) Hires a molder to fabricate, cast, or otherwise prepare a die, tool, mold, form, or pattern for the purpose of manufacturing, assembling, casting, fabricating, or otherwise making a product; or (b) Provides a molder with a die, tool, mold, form, or pattern for the purpose of manufacturing, assembling, casting, fabricating, or otherwise making a product. (2) "Mold" means a die, tool, mold, form, or pattern. (3) "Molder" means any person who fabricates, casts, or otherwise prepares or uses a die, tool, mold, form, or pattern for the purpose of manufacturing, assembling, casting, fabricating, or otherwise preparing a product. "Molder" includes, but is not limited to, a tool or die maker. A molder shall not be deemed to be a warehouse as defined in section 4-7-102 (a)(13), C.R.S. (3.5) "Pet animals" means dogs, cats, or other domestic animals, except livestock as defined in section 38-20-202 (6). (4) "Rent temporary shelter" or "rent temporary trailer space" means shelter or trailer space that is rented for a fee for a period of time not exceeding one month, but excluding month to month tenancies that have been in effect at least four months. Source: L. 71: p. 951, § 3. C.R.S. 1963: § 86-1-15. L. 98: Entire section amended, p. 363, § 1, effective September 30. L. 2005: (3.5) added, p. 637, § 1, effective May 27. L. 2006: (3) amended, p. 505, § 56, effective September 1. 38-20-102. Lien for care and feeding of pet animals - landlord. (1) (a) Any feeder, veterinarian, or other person to whom pet animals are entrusted for the purpose of feeding, keeping, boarding, or medical care shall have a lien, which shall be superior to all other liens, upon such pet animals for the amount that may be due for such feeding, keeping, boarding, or medical care and for all costs incurred in enforcing such lien. (b) If the lienholder complies with the provisions of section 38-20-103 and the pet animals referred to in paragraph (a) of this subsection (1) are sold, exchanged, or otherwise Colorado Revised Statutes 2019 Page 217 of 707 Uncertified Printout disposed of to another from the premises of the lienholder by anyone other than the lienholder acting on his or her own behalf, the lien created by this subsection (1) shall continue and attach to the proceeds received or receivable therefrom. This lien shall also be superior to all other liens. (2) The keeper of any hotel, motel, inn, or boardinghouse or any other person who rents temporary shelter to transient guests shall have a lien upon the personal property of such transient guests found upon the premises for the amount that may be due for lodging and boarding services rendered and for all costs incurred in enforcing such lien, and such liens shall apply to the personal property of transient guests who rent temporary trailer space in any trailer court or auto court in this state. The provisions of this section shall not apply to motor vehicles owned by such transient guests parked on the premises of such hotel, motel, inn, or boardinghouse or to stolen property. (3) (a) Any person who rents furnished or unfurnished rooms or apartments for the housekeeping purposes of his tenants, as well as the keeper of a trailer court who rents trailer space, shall have a lien upon the tenant's personal property that is then on or in the rental premises. The value of the lien shall be for the amount of unpaid board, lodging, or rent, and for reasonable costs incurred in enforcing the lien, not including attorney fees. The lien shall be upon the household furniture, goods, appliances, and other personal property of the tenant and members of his household then being upon the rental premises, but exclusive of small kitchen appliances, cooking utensils, beds, bedding, necessary wearing apparel, personal or business records and documents, and the personal effects of the tenant and the members of his household. (b) In the event the tenant has vacated the premises, the landlord shall allow the tenant and members of his household access to the premises at any reasonable time and in a reasonable manner to remove any property not covered by the lien. (c) In the event the tenant has not vacated the premises, the landlord or his agent may enter upon the premises at any reasonable time for the purpose of asserting the lien and, in a reasonable manner and peaceably, the landlord may assert dominion over the personal property covered by the lien. Assertion of the lien provided in this section in a manner which substantially interferes with the tenant's right to reasonably occupy and enjoy the premises is unlawful and shall cause forfeiture of the lien and shall give rise to an action for damages. Source: L. 1883: p. 237, § 1. G.S. § 2118. R.S. 08: § 4013. C.L. § 6428. L. 29: p. 440, § 1. CSA: C. 101, § 1. CRS 53: § 86-1-1. L. 61: p. 512, § 1. C.R.S. 1963: § 86-1-1. L. 71: p. 949, § 1. L. 77: (1) amended, p. 1709, § 1, effective May 18. L. 2005: (1) amended, p. 637, § 2, effective May 27. 38-20-103. Pet animal contract to be filed. All contracts, or copies thereof, made by the owner of any pet animal with any other person, including a feeder, for the caring for the same for pay, or on shares, or in any other manner may be filed with the county clerk and recorder of the county where the owners or either of them reside, if they reside in the state, and, if the owners or either of them do not reside in the state, the copies may be filed with the county Colorado Revised Statutes 2019 Page 218 of 707 Uncertified Printout clerk and recorder of the county in which the contract was made. When such copies are so filed they shall be notice to everyone of the contents of such contracts and of the legal effect thereof. Source: L. 1887: p. 417, § 1. R.S. 08: § 6381. C.L. § 6429. CSA: C. 101, § 2. CRS 53: § 86-1-2. C.R.S. 1963: § 86-1-2. L. 77: Entire section amended, p. 1709, § 2, effective May 18. L. 2005: Entire section amended, p. 638, § 3, effective May 27. 38-20-104. Landlord to retain property - sale. (Repealed) Source: L. 1889: p. 188, § 4. R.S. 08: § 3006. C.L. § 6430. L. 29: p. 441, § 2. CSA: C. 101, § 3. CRS 53: § 86-1-3. C.R.S. 1963: § 86-1-3. L. 71: p. 950, § 2. L. 75: Entire section repealed, p. 1419, § 9, effective April 24. 38-20-105. Lien of common carrier. Every common carrier of goods or passengers who, at the request of the owner of any personal goods, carries, conveys, or transports the same from one place to another and every other person who safely keeps or stores any personal property at the request of the owner or person lawfully in possession thereof shall have a lien upon all such personal property for his reasonable charges for the transportation, storage, or keeping thereof and for all reasonable and proper advances made thereon by him, in accordance with the usage and custom of common carriers and warehousemen. Source: L. 1883: p. 237, § 2. G.S. § 2119. R.S. 08: § 4014. C.L. § 6431. CSA: C. 101, § 4. CRS 53: § 86-1-4. C.R.S. 1963: § 86-1-4. L. 76: Entire section amended, p. 314, § 68, effective May 20. Cross references: For liens of warehousemen and enforcement thereof, see §§ 4-7-209 and 4-7-210; for lien of a carrier on goods covered by a bill of lading and enforcement thereof, see §§ 4-7-307 and 4-7-308. 38-20-106. Lien for labor. Any mechanic or other person who makes, alters, repairs, or bestows labor upon any article of personal property, at the request of the owner of such personal property or his agent shall have a lien upon such property for the amount due for such labor done or material furnished and for all costs incurred in enforcing such lien. Source: L. 1883: p. 237, § 3. G.S. § 2120. L. 1889: p. 233, § 2. R.S. 08: § 4015. C.L. § 6432. CSA: C. 101, § 5. CRS 53: § 86-1-5. C.R.S. 1963: § 86-1-5. Cross references: For mechanic's liens on land and fixtures, see article 22 of this title. 38-20-106.2. Molders' liens - creation - notice. (1) A molders' lien shall attach to all of a customer's molds in a molder's possession for which a balance is due from such customer for Colorado Revised Statutes 2019 Page 219 of 707 Uncertified Printout any manufacturing or fabrication work performed and materials furnished. A molders' lien shall be for the amount due for any such work performed or materials furnished, including interest at the rate specified in section 38-22-101 (5), unless otherwise agreed, and for all costs incurred in enforcing such lien, including attorney fees if specified by contract. The amount of such lien shall be determined by the value of any such manufacturing or fabrication work performed and material furnished unless the cost of such work and materials is otherwise specified by contract. A molder may retain possession of a mold until all charges are paid for such lien, unless a claim is made to such mold by the holder of a prior lien or by the holder of a lien of public record. (2) A molders' lien created pursuant to this section shall be considered a security interest for the purposes of section 18-5-206, C.R.S. (3) No lien created by this section shall have priority over a lien of public record, including a lien filed pursuant to title 4, C.R.S., regardless of when the financing statement or notice of lien was filed or recorded. Source: L. 98: Entire section added, p. 364, § 2, effective September 30. 38-20-106.5. Motor vehicle repair garages - restoration of liens. (1) A motor vehicle repair garage which is entitled to a lien under section 38-20-106 for motor vehicle repairs and which has released the motor vehicle upon receipt of payment for such repairs in the form of a check, draft, or order for the payment of money upon any bank, depository, person, firm, or corporation shall be entitled to the restoration of the lien if the check, draft, or order is not honored for full payment or is dishonored upon its presentment and if the maker, issuer, or drawer fails, within twelve days after receiving notice from the motor vehicle repair garage of nonpayment or dishonor, to pay the check, draft, or order. In the event such motor vehicle repair garage has released the motor vehicle upon an open account, the motor vehicle repair garage shall be entitled to restoration of the lien if the total amount as agreed upon by the parties is not paid when due as agreed upon by the parties and if the debtor fails, within twelve days after receiving notice from the motor vehicle repair garage of nonpayment, to pay the amount due. Restoration of such lien shall entitle the motor vehicle repair garage to regain possession of the motor vehicle. In regaining possession, the motor vehicle repair garage may proceed without judicial process if this can be done without breach of the peace or may proceed by action. (2) "Notice", as used in subsection (1) of this section, means notice given to the person entitled thereto, either in person or in writing. Such notice in writing shall be conclusively presumed to have been given when deposited by registered or certified mail, return receipt requested and postage prepaid, in the United States mail and addressed to such person at his address as it appears on the invoice or such check, draft, or order or, in the case of an open account, as it appears on the account records of the motor vehicle repair garage. Any notice regarding an open account may only be given subsequent to nonpayment. Source: L. 77: Entire section added, p. 1924, § 2, effective January 1, 1978. L. 81: Entire section amended, p. 1820, § 1, effective July 1. Colorado Revised Statutes 2019 Page 220 of 707 Uncertified Printout 38-20-107. Commencement of foreclosure action. (1) If any such charges for which a lien is given by section 38-20-102, 38-20-105, 38-20-106, or 38-20-106.2 or for which a lien is restored by section 38-20-106.5 are not paid within thirty days after the same become due and payable, the mechanic, innkeeper, or other person to whom such lien is given may file a foreclosure action in the county or district court of the county or city and county in which the contract or agreement between the lienholder and the owner of the property was signed or entered into, in which the owner resided at the time the contract or agreement was entered into, in which the owner resides at the time the foreclosure action is commenced or in which the work was performed, or, in the case of a lien created pursuant to section 38-20-106.2, in which any work was performed or materials were furnished. In the event that the lienholder does not foreclose the lien by commencing a judicial action within sixty days and if, under section 38-20106, within ninety days after charges become due and payable, the lien shall terminate. However, such period of limitation may be extended by agreement between the parties for an additional period not to exceed thirty days. For the purposes of this subsection (1), if the contract between the owner and the lienholder provides for installment or continuing payments, installments or continuing payments shall be deemed to be due after default of any installment or payment or at the time the final installment or payment is due and payable at the option of the lienholder. (2) If the lienholder sells or otherwise disposes of the property of the owner without substantially complying with this article, the owner is entitled to recover from the lienholder the value of the property, but in no event less than one hundred dollars, and reasonable attorney fees. (3) Nothing in this article shall require a lienholder to commence a judicial action to foreclose his lien if the property held is abandoned as defined in section 38-20-116. Source: L. 1883: p. 238, § 4. G.S. § 2121. R.S. 08: § 4016. C.L. § 6433. CSA: C. 101, § 6. CRS 53: § 86-1-6. C.R.S. 1963: § 86-1-6. L. 64: p. 289, § 222. L. 75: Entire section amended, p. 1416, § 1, effective April 24. L. 77: (1) amended, p. 1710, § 3, effective May 18. L. 81: (1) amended, p. 1821, § 2, effective July 1. L. 87: (1) amended, p. 1583, § 44, effective July 10. L. 98: (1) amended, p. 364, § 3, effective September 30. L. 2005: (1) amended, p. 638, § 4, effective May 27. 38-20-108. Foreclosure action - procedure. (1) In any foreclosure action, the lienholder or the lienholder's attorney, by complaint, shall show to the court the following: (a) That the lienholder did perform a specified service for the defendant which entitles such lienholder to a lien on personal property owned by the defendant pursuant to the provisions of section 38-20-102, 38-20-105, 38-20-106, or 38-20-106.2; (b) That said service was performed at the request of the defendant or his agent; (c) A particular description of the property upon which the lien is claimed and a statement of its actual value; (d) That the defendant has failed to pay charges within thirty days after the same became due and payable; Colorado Revised Statutes 2019 Page 221 of 707 Uncertified Printout (e) That notice of demand for charges has been given to the owner personally or by registered mail at the owner's last-known address; (f) An itemized description of the charges for labor performed and parts replaced if a lien is claimed under section 38-20-106; (g) An itemized description of the charges for any work performed and materials furnished, including interest at the rate specified in section 38-22-101 (5), unless otherwise agreed, and for all costs incurred in enforcing such lien, including attorney fees if specified by contract if a lien is claimed under section 38-20-106.2. (2) Upon filing the complaint, the clerk of the court shall issue a summons as in other cases; except that it shall command the defendant to appear before the court at a place named in such summons and at a time and on a day which shall be not less than three nor more than five days from the day of issuing the same to answer the complaint of plaintiff. The summons shall also contain a statement addressed to the defendant stating: "If you fail to file with the court, at or before the time for appearance specified in the summons, an answer to the complaint, denying or admitting all of the material allegations of the complaint, judgment by default may be taken against you for the lien charges described in the complaint, for costs as provided in this article, and for any other relief to which the plaintiff is entitled." (3) If either party requests a delay in trial longer than five days, the court, in its discretion, upon good cause shown, may require either of the parties to give bond in an amount to be fixed by the court for the payment to the opposing party of such amount as he may be entitled to due to the delay. The bond shall be secured by two or more sureties, by one corporate surety authorized to do business in this state, or by cash bond, to be approved by the court. Source: L. 1883: p. 238, § 5. G.S. § 2122. R.S. 08: § 4017. C.L. § 6434. CSA: C. 101, § 7. CRS 53: § 86-1-7. C.R.S. 1963: § 86-1-7. L. 64: p. 289, § 223. L. 75: Entire section R&RE, p. 1417, § 2, effective April 24. L. 77: (2) R&RE, p. 1710, § 4, effective May 18. L. 98: IP(1) and (1)(a) amended and (1)(g) added, p. 365, § 4, effective September 30. 38-20-109. Lienor may sell - procedure. (1) When the lienor has received a judgment and after giving ten days' prior notice of the time and place of such sale, with a description of the property to be sold, by one publication in some newspaper published in the county wherein he or she resides or, if there is no such newspaper, by posting in three public places within such county and after delivering to the owner of such personal property or, if he or she does not reside in the county, transmitting by mail to him or her at his or her usual place of abode, if known, a copy of such notice, he or she may proceed to sell all such personal property, or so much thereof as may be necessary, at public auction, for cash in hand, at any public place within such county between the hours of 10 a.m. and 4 p.m. of the day appointed. From the proceeds thereof he or she may pay the reasonable costs of such foreclosure, notice, and sale and any necessary and reasonable charges for the preserving, maintaining, feeding, boarding, or caring for the property on which he or she has a lien, together with the reasonable cost of keeping such property up to the time of sale, but the reasonable costs of keeping such property up to the time of sale shall not exceed Colorado Revised Statutes 2019 Page 222 of 707 Uncertified Printout ninety dollars. He or she shall render the residue of the proceeds and of the property unsold to the owner. (2) Where property upon which the lien is being foreclosed is in danger of serious and immediate decay or waste or is likely to depreciate rapidly in value pending the determination of the issue or where the keeping of it will be attended with great expense, the lienholder, as plaintiff to the action, may apply to the court, upon due notice as the court may direct, for a sale thereof; and, thereupon, the court in its discretion may order the property sold in the manner provided for in said order, and the proceeds of said sale shall be deposited with the clerk of the court to abide the further order of the court. Upon application for such order for sale, the court in its discretion, upon good cause shown, may require the plaintiff to give bond in an amount to be fixed by the court for the payment to the defendant of such amount as the defendant may be entitled to for damages sustained by the defendant in the event of wrongful foreclosure. The bond shall be secured by two or more sureties, by one corporate surety authorized to do business in this state, or by cash bond, to be approved by the court. Source: L. 1883: p. 238, § 6. G.S. § 2123. R.S. 08: § 4018. C.L. § 6435. CSA: C. 101, § 8. CRS 53: § 86-1-8. C.R.S. 1963: § 86-1-8. L. 75: Entire section amended, p. 1417, § 3, effective April 24. L. 77: Entire section amended, p. 1710, § 5, effective May 18. L. 2005: (1) amended, p. 638, § 5, effective May 27. Cross references: For publication of legal notices, see part 1 of article 70 of title 24. 38-20-110. Sale void, when. (Repealed) Source: L. 1883: p. 239, § 7. G.S.: § 2124. R.S. 08: § 4019. C.L. § 6436. CSA: C. 101, § 9. CRS 53: § 86-1-9. C.R.S. 1963: § 86-1-9. L. 75: Entire section repealed, p. 1419, § 9, effective April 24. 38-20-111. Lienor may purchase. At such sale the person to whom such lien is given may become the purchaser. Source: L. 1883: p. 239, § 8. G.S. § 2125. R.S. 08: § 4020. C.L. § 6437. CSA: C. 101, § 10. CRS 53: § 86-1-10. C.R.S. 1963: § 86-1-10. 38-20-112. Sale continued - when - record. In any case where the property to be sold cannot conveniently be sold in one day, the sale may be continued from day to day at the place of sale. Upon the completion of such sale, the person to whom the lien is given shall cause a bill of sale thereof to be filed with the court in which judgment was taken, in which shall be set down the sum for which each separate article of property was sold and the name of the purchaser. The court shall record such bill of sale in its docket and preserve the original thereof. Colorado Revised Statutes 2019 Page 223 of 707 Uncertified Printout Source: L. 1883: p. 239, § 9. G.S. § 2126. R.S. 08: § 4021. C.L. § 6438. CSA: C. 101, § 11. CRS 53: § 86-1-11. C.R.S. 1963: § 86-1-11. L. 64: p. 289, § 224. L. 75: Entire section amended, p. 1418, § 4, effective April 24. 38-20-113. Lien no bar to suit for charges. Nothing in this article shall take away the right of action of the party to whom such lien is given to satisfy his judgment pursuant to law and the Colorado rules of civil procedure for his charges or for any residue thereof after sale of such property. Source: L. 1883: p. 239, § 10. G.S. § 2127. R.S. 08: § 4022. C.L. § 6439. CSA: C. 101, § 12. CRS 53: § 86-1-12. C.R.S. 1963: § 86-1-12. L. 75: Entire section amended, p. 1418, § 5, effective April 24. 38-20-114. Clerk of sale. At such sale the person to whom such lien is given may appoint a clerk and crier. Source: L. 1883: p. 239, § 11. G.S. § 2128. R.S. 08: § 4023. C.L. § 6440. CSA: C. 101, § 13. CRS 53: § 86-1-13. C.R.S. 1963: § 86-1-13. 38-20-115. Sale fees. Clerks of the county or district court may charge for recording each bill of sale a fee as authorized by section 13-32-104, C.R.S. Source: L. 1883: p. 239, § 12. G.S. § 2129. R.S. 08: § 4024. C.L. § 6411. CSA: C. 6441, § 14. CRS 53: § 86-1-14. C.R.S. 1963: § 86-1-14. L. 64: p. 290, § 225. L. 75: Entire section R&RE, p. 1418, § 6, effective April 24. L. 87: Entire section amended, p. 1583, § 45, effective July 10. 38-20-116. Abandoned property - notice of sale - definitions. (1) Property is presumed to be abandoned if the owner has failed to contact the lienholder for a period of not less than thirty days and the lienholder, in good faith, is without knowledge of any evidence indicating that the owner does not intend to abandon the property. (2) At least fifteen days prior to selling or otherwise disposing of abandoned property, the lienholder shall notify the owner of the proposed manner and date of disposition by transmitting said notice to the owner's last known address by registered or certified mail, return receipt requested, signed by the addressee only. The lienholder shall maintain in his records for a period of one year a copy of said notice together with the return receipt signed by the addressee, or, if said notice is returned unclaimed, said notice and the proof of return unclaimed shall be so maintained. If the written notice is returned unclaimed, the lienholder shall publish said notice at least one day in a newspaper in the county in which the property is located or, if no newspaper is published in that county, then a newspaper in some adjoining county. Colorado Revised Statutes 2019 Page 224 of 707 Uncertified Printout (2.5) (a) The provisions of this subsection (2.5) shall apply to abandoned motor vehicles at repair shops. (b) For purposes of this subsection (2.5), unless the context otherwise requires: (I) "Abandoned motor vehicle" means a motor vehicle: (A) That has been left at a repair shop by the motor vehicle's owner, the owner's agent, or an operator hired by the owner or owner's agent; (B) That the repair shop has offered to repair and for which the repair shop has prepared an estimate of repair costs; (C) That the owner or the owner's agent has refused to authorize repairs to, has refused to remove from the repair shop upon request, or has refused to pay for authorized and completed repairs to the vehicle. If a repair shop is unable, despite good faith efforts, to obtain a response from the owner or the owner's agent regarding the authorization of repairs, payment for authorized and completed repairs, or the removal of a motor vehicle, the owner or owner's agent shall be deemed to have refused to grant authorization, make payment, or remove the motor vehicle five working days following the repair shop's last good faith effort to contact the owner or owner's agent. (D) That is not the subject of sale negotiations or a sale agreement between the owner or the owner's agent and the repair shop. (II) "Department" means the department of revenue. (III) "Division" means the division of motor vehicles in the department. (IV) "Lienholder" means a person who holds a security interest in a motor vehicle under article 9 of title 4, C.R.S. For purposes of this subsection (2.5) only, "lienholder" shall not refer to the holder of a lien established pursuant to section 38-20-106. (c) If a repair shop seeks to obtain a certificate of title for an abandoned motor vehicle for purposes of selling such vehicle, a repair shop, or where practicable, its agent, shall: (I) At least fifteen days after the vehicle becomes an abandoned motor vehicle, establish the retail fair market value of the vehicle either by reference to sources generally accepted within the insurance industry, including price guide books and computerized valuation services, or by seeking a Colorado licensed automobile dealer or certified appraisal; (II) (A) Have the abandoned motor vehicle inspected and a verification of vehicle identification number completed by a peace officer certified pursuant to section 42-5-206, C.R.S. Such inspection shall not be over one year old when the repair shop or its agent seeks to obtain a certificate of title to the abandoned motor vehicle. (B) If the verification of the vehicle identification number reveals that the vehicle is stolen, the peace officer completing the verification shall recover and secure the motor vehicle and notify its rightful owner. (III) Request a Colorado title record search of the vehicle identification number of the abandoned motor vehicle from the division or check the electronic system implemented by the department as required in section 42-4-2103 (3)(c)(III), C.R.S., to obtain correct information relating to any owner and lienholder of the abandoned motor vehicle as represented in the department records. In addition to requesting a Colorado title record search, if the abandoned Colorado Revised Statutes 2019 Page 225 of 707 Uncertified Printout motor vehicle is an out-of-state vehicle, the repair shop or its agent shall request a title and lien search from the other state. (IV) Use the information provided through the Colorado title record search or out-ofstate title and lien search to notify by certified mail the owner of record, including an out-of-state owner of record, and all lienholders of its possession of the abandoned motor vehicle. The notice shall specify the location of the repair shop and that, unless claimed within thirty calendar days after the date the notice was sent, as determined from the postmark on the notice, the motor vehicle is subject to sale. The repair shop or its agent shall keep the proof of notification on file for three years from the date of mailing. (V) Purchase a surety bond for twice the retail fair market value of the abandoned motor vehicle as established under subparagraph (I) of this paragraph (c); (VI) Write a statement under penalty of perjury that includes the following information: (A) That the repair shop or its agent notified the owner and any lienholders of the abandoned motor vehicle as required in subparagraph (IV) of this paragraph (c) and that neither the owner nor any lienholder has attempted to claim the abandoned motor vehicle within the time prescribed in subparagraph (IV) of this paragraph (c); (B) The business name and address of the repair shop; (C) The year, make, model, and vehicle identification number of the abandoned motor vehicle; (D) The date the abandoned motor vehicle was left at the repair shop; (E) The name of the person who left the abandoned motor vehicle at the repair shop. The repair shop or its agent shall provide a copy of any estimate as defined in section 42-9-102 (1.5), C.R.S., or work order as defined in section 42-9-102 (6), C.R.S. If the parties entered into an oral agreement, the repair shop shall provide the record of such communication as specified in section 42-9-104 (1)(c), C.R.S. (F) Whether the abandoned motor vehicle is roadworthy as defined in section 42-6-102 (15), C.R.S.; and (VII) (A) Not less than thirty days after the postmarked date of the notice mailed pursuant to subparagraph (IV) of this paragraph (c), present documentation of the requirements specified in subparagraphs (I) to (VI) of this paragraph (c) to the county motor vehicle office in the county in which the repair shop is located and apply for a certificate of title for the abandoned motor vehicle. (B) If the retail fair market value of the abandoned motor vehicle is less than two hundred dollars, the sale shall be made only for the purpose of junking, scrapping, or dismantling the motor vehicle, and the purchaser thereof shall not, under any circumstances, be entitled to a certificate of title. The repair shop shall cause to be executed and delivered to the person purchasing the motor vehicle a bill of sale. The bill of sale shall state that the purchaser acquires no right to a certificate of title for such vehicle. The repair shop shall promptly submit together to the department a report of sale and a copy of the bill of sale and shall also deliver a copy of the report of sale to the purchaser of the motor vehicle. Upon receipt of any report of sale with supporting documents on any sale made pursuant to this sub-subparagraph (B), the Colorado Revised Statutes 2019 Page 226 of 707 Uncertified Printout department shall purge the records for the vehicle as provided in section 42-4-2109 (1)(b) and shall not issue a new certificate of title for the vehicle. Any certificate of title issued in violation of this sub-subparagraph (B) shall be void. (d) (I) After the repair shop or its agent has obtained a certificate of title for the abandoned motor vehicle as specified in paragraph (c) of this subsection (2.5), the repair shop or its agent shall sell the motor vehicle in a commercially reasonable manner at a public or private sale. (II) Nothing in this subsection (2.5)(d) requires a repair shop to be a licensed dealer pursuant to part 1 of article 20 of title 44 for purposes of selling a motor vehicle pursuant to this section. (e) The department may promulgate rules in accordance with article 4 of title 24, C.R.S. or create department-approved forms as may be appropriate to satisfy the requirements of this subsection (2.5). (3) (a) The following provisions shall apply to molds, as defined in section 38-20-101: (I) In the absence of an agreement to the contrary, a customer shall have all rights and title to any mold in the possession of a molder that was used to perform work for such customer; except that, if a customer has not claimed possession of a mold within three years following its last prior use, such mold shall be presumed to be abandoned by the customer and all rights and title to such mold shall be transferred to the molder who shall destroy or otherwise dispose of such mold as abandoned property in accordance with this section. For purposes of this subsection (3), "within three years following its last prior use" means any period following the last prior use of the mold and includes periods preceding September 30, 1998. (II) Any molder who desires to have all rights and title to a mold shall send written notice to the customer's last-known address by registered or certified mail return receipt requested, signed by the addressee only. If the written notice is returned unclaimed, the molder shall publish said notice at least one day in a newspaper of general circulation in the area in which the mold is located. Such written notice shall clearly indicate that the molder intends to terminate the customer's rights and title to the mold described in such notice and shall include a recitation of the customer's rights, as set forth in this section. (III) If a customer does not respond to the written notice sent pursuant to subparagraph (II) of this paragraph (a) within one hundred twenty days after the date of such notice to claim possession of the mold or does not make other contractual arrangements with the molder for storage of such mold, all rights and title of the customer to such mold shall transfer to the molder. Such molder may then destroy or otherwise dispose of the mold without risk of liability to the customer. (IV) The molder shall maintain in such molder's records for a period of one year a copy of the notice sent pursuant to subparagraph (II) of this paragraph (a), together with the return receipt signed by the addressee, or, if said notice is returned unclaimed, said notice and the proof of return unclaimed shall be so maintained. (b) Nothing in this subsection (3) shall require a molder to commence a judicial action to foreclose on a molders' lien if such mold is abandoned, as such term is defined in this section, Colorado Revised Statutes 2019 Page 227 of 707 Uncertified Printout and nothing in this subsection (3) shall be interpreted to eliminate any right of action a molder may have against a customer for unpaid charges, damages, costs, or attorney fees, if provided for by contract. Source: L. 75: Entire section added, p. 1418, § 7, effective April 24. L. 98: (3) added, p. 365, § 5, effective September 30. L. 2008: (2.5) added, p. 539, § 1, effective January 1, 2009. L. 2009: (2.5)(c)(III) amended, (HB 09-1322), ch. 317, p. 1706, § 1, effective June 1; (2.5)(a) and IP(2.5)(b) amended, (SB 09-292), ch. 369, p. 1980, § 113, effective August 5. L. 2017: (2.5)(d)(II) amended, (SB 17-240), ch. 395, p. 2065, § 47, effective July 1. L. 2018: (2.5)(d)(II) amended, (SB 18-030), ch. 7, p. 140, § 12, effective October 1. PART 2 AGISTOR'S LIEN ACT 38-20-201. Short title. This part 2 shall be known and may be cited as the "Agistor's Lien Act". Source: L. 96: Entire part added, p. 1387, § 11, effective July 1. 38-20-202. Definitions. As used in this part 2, unless the context otherwise requires: (1) "Abandoned" means having forsaken entirely or neglected or refused to pay for feeding, herding, pasturing, keeping, ranching, boarding, or medical care for any livestock held by an agistor, its owner, or an owner's agent. (2) "Agent" means any person who contracts for the feeding, herding, pasturing, keeping, ranching, or boarding of livestock or the provision of medical care for livestock. (3) "Agistor" means any rancher, farmer, feeder, herder of cattle, livery stable keeper, veterinarian, or other person to whom livestock are entrusted by the owner for feeding, herding, pasturing, keeping, ranching, or boarding, or providing medical care. (4) "Board" means the state board of stock inspection commissioners created in section 35-41-101, C.R.S. (5) "Continuing payment" means charges that are due and owing to an agistor and do not have a definite termination date. (6) "Livestock" means horses, mules, asses, cattle, sheep, hogs, and alternative livestock as defined in section 35-41.5-102 (1), C.R.S. (7) "Public livestock market" means a public livestock market licensed pursuant to article 55 of title 35, C.R.S. Source: L. 96: Entire part added, p. 1387, § 11, effective July 1. Colorado Revised Statutes 2019 Page 228 of 707 Uncertified Printout 38-20-203. Agistor's lien. (1) An agistor shall have a lien upon the livestock entrusted to its care for any amount that may be due for feeding, herding, pasturing, keeping, ranching, or boarding such livestock, for medical care provided to such livestock, and for all costs incurred in enforcing such lien, including attorney fees. The provisions of this section shall not apply to stolen livestock. (2) An agistor's lien shall be effective for the entire period during which the livestock are held by the agistor, and if the livestock referenced in subsection (1) of this section are sold, exchanged, or otherwise disposed of from the premises of the lienor by anyone other than the lienor acting on his or her own behalf or the lienor's agent, the lien created by this section shall continue and shall attach to the proceeds received or receivable from such disposition. To the extent an agistor's lien remains effective, such lien shall be superior to all other liens. Source: L. 96: Entire part added, p. 1388, § 11, effective July 1. 38-20-204. Agistor's lien - filing requirement. An agistor's lien created pursuant to this part 2 shall be filed with the secretary of state or the county clerk where the livestock are located. The filing of an agistor's lien shall constitute notice of the contents and legal effect of the lien. Source: L. 96: Entire part added, p. 1388, § 11, effective July 1. 38-20-205. Foreclosure. (1) (a) If any charges for which a lien has been filed pursuant to section 38-20-204 are not paid not more than thirty days after the date such charges are due, the lienor or the lienor's assignee may file a foreclosure action in the county or district court of the county or city and county in which: (I) The contract between the lienor and the owner of the livestock was entered into; (II) The owner resided at the time the foreclosure action commenced; or (III) The livestock are located. (b) For purposes of this subsection (1), if the contract between the owner and the lienor provides for continuing payments, such payments may be deemed to be due after the default of any installment or payment, at the option of the lienor. (2) If a lienor sells or otherwise disposes of an owner's livestock without substantially complying with this article, such owner may recover from the lienor the value of the livestock less the lienor's cost of caring for such livestock, but in no event less than one hundred dollars. (3) Nothing in this article shall require a lienor to commence a judicial action to foreclose on an agistor's lien if the livestock is abandoned, as defined in section 38-20-207. (4) With respect to any foreclosure action brought under this article, a copy of the complaint shall be provided to the board before it may be filed with a court. The failure to provide such copy is not jurisdictional but shall be required by a court. The complaint shall show: (a) That the lienor performed a service for the livestock owner, entitling the lienor to a lien on the owner's livestock pursuant to section 38-20-203; Colorado Revised Statutes 2019 Page 229 of 707 Uncertified Printout (b) That the service described in paragraph (a) of this subsection (4) was performed at the written or verbal request of the owner or owner's agent; (c) A description of the livestock, including the age, color, sex, markings, scars, brands, earmarks, a statement of the lien's actual value, and, if known, the registration number upon which the lien is claimed. A livestock group of twenty or more may be identified by common and accepted industry practice. (d) That a notice of demand has been provided to the owner or the owner's agent by certified mail at their last-known address, or if not known, that personal notice was provided pursuant to section 38-20-206 (1)(a); (e) An itemized list of the fair market value of the charges that are due and unpaid under the lien; and (f) That a copy of the complaint has been provided to the board. (5) (a) A court shall examine any complaint filed pursuant to this article without delay. If satisfactory, the court shall order the owner to show cause why the livestock should not be sold pursuant to the procedures in this article, which order shall include the date and time for a hearing. Such hearing shall be held not more than ten working days after the date of the issuance of the order. (b) The court order set forth in paragraph (a) of this subsection (5) shall be served on the owner at least five days before the hearing date and shall inform such owner of: (I) His or her right to appear and present testimony at the hearing; (II) The fact that his or her failure to appear at the hearing may result in the entry of a judgment by default for the lien charges described in the complaint, the costs provided in this part 2, attorney's fees, and any other relief to which the plaintiff is entitled. (6) If either party requests that the hearing date be delayed more than five days, the court, in its discretion and upon good cause shown, may require the requesting party to post bond. The bond amount shall be sufficient to pay the opposing party such amount as he or she may be entitled because of the delay. The bond shall be secured by two or more sureties, one corporate surety authorized to do business in this state, or a cash or property bond, whichever the court may approve. Source: L. 96: Entire part added, p. 1388, § 11, effective July 1. 38-20-206. Sale of livestock - procedure. (1) A lienor who receives a judgment on an agistor's lien may proceed to sell such livestock necessary to satisfy the lien. The sale shall take place not more than forty-five days after entry of judgment at the nearest public livestock market in this state. In addition: (a) The lienor shall provide notice to the owner at least fifteen days before any sale. The notice shall include the time and place of the sale and a description of the livestock to be sold. Such notice shall be served by: (I) Publication in one newspaper published in the county of the lienor's residence; or Colorado Revised Statutes 2019 Page 230 of 707 Uncertified Printout (II) Posting in three public places within the county of the lienor's residence and delivering a copy to the owner or the owner's agent. If a copy is to be delivered to the owner's agent and such agent does not reside in the county of the lienor's residence, a copy of the notice shall be published in a newspaper published in the county of the agent's residence, or, if no newspaper is published in such county, a copy shall be mailed to such agent's place of residence. (b) The purchaser shall receive a transfer of the registration papers for the purchased livestock by the public livestock market and the pertinent organization or registry. (c) The public livestock market shall: (I) Pay to the agistor from the sale proceeds the reasonable cost of the foreclosure, notice, sale, and the reasonable and necessary charges incurred by the agistor for preserving, maintaining, feeding, boarding, pasturing, caring, and keeping the livestock up to the date of the sale. The reasonable cost of keeping the livestock up to the date of the sale shall not exceed five dollars per head per day. (II) Forward the remainder of the sale proceeds and render any unsold livestock to the court for distribution to the owner or the owner's agent. If the owner and the owner's agent are not known and there are sale proceeds to be forwarded, such proceeds shall be returned to the board. The board shall deposit such proceeds in its estray fund and make a record of such deposit, identifying the livestock and stating the amount realized from the sale. The board shall pay proceeds from the estray fund to any secured party that has filed a lien against the livestock sold and has submitted a claim for payment to the board. Such payments shall be made only to the extent of the amount owed to the secured party. Such record shall be open to public inspection. (2) (a) When livestock are in danger of serious and immediate decay or waste, or are likely to rapidly depreciate in value pending foreclosure proceedings, or where the keeping of such livestock will be attended with great expense, the lienor may, upon providing such notice as the court may require, apply to the court for an immediate sale. The court, in its discretion, may order that the livestock be sold and that the sale proceeds be deposited with the clerk of the court pending further order of such court. (b) Upon receiving an application pursuant to paragraph (a) of this subsection (2), a court may, upon good cause shown, require the lienor to post bond for such amount as the defendant may be entitled for damages sustained in the event of wrongful foreclosure. Such bond shall be secured by two or more sureties, one corporate surety authorized to do business in this state, or a cash bond, whichever is approved by the court. (3) The lienor may purchase the livestock and may bid all or any portion of the fair market value of the lien. (4) When the livestock cannot be sold in one day, the sale may be continued on a day-today basis. Upon completion of the sale, the public livestock market shall file a bill of sale with the court that entered judgment of foreclosure. Such bill of sale shall include the amount for which each animal was sold and the name of each purchaser. The court shall record such bill of sale in its docket and shall preserve the original. Colorado Revised Statutes 2019 Page 231 of 707 Uncertified Printout Source: L. 96: Entire part added, p. 1390, § 11, effective July 1. 38-20-207. Abandoned livestock - notice - disposition. (1) Livestock shall be presumed abandoned if: (a) The owner or owner's agent has failed to contact the lienor within ten days after service of notice under section 38-20-206; (b) The lienor, in good faith, has no reasonable grounds to believe that the owner does not intend to abandon the livestock; and (c) The agistor has sent written notice of abandonment pursuant to the publication procedures in this article. (2) The board shall care for and dispose of any abandoned livestock pursuant to section 35-44-112, C.R.S. (3) After paying all expenses incurred, the board shall pay the agistor for the cost of herding or caring for such livestock, not to exceed the fair market value of the actual cost of such herding or caring or five hundred dollars per head, whichever is less. (4) (a) Any surplus funds forwarded to the state board of stock inspection commissioners shall be deposited in the estray fund of said board in the manner described in section 38-20-206. (b) If the owner of livestock presumed to be abandoned is found within three years after the date of the sale of such livestock, the net amount received from the sale shall be paid to the owner, less the following amounts, upon said owner proving ownership to the satisfaction of the board: (I) A sum determined by the board by rule for each abandoned animal, to be retained by the state board of stock inspection commissioners; (II) The amount of any judgment awarded the lienor; and (III) Any amounts owed to a secured party that has filed a lien against the livestock presumed to be abandoned and submitted a claim to the board. (c) A current livestock inspection certificate shall be prima facie evidence of ownership. Source: L. 96: Entire part added, p. 1391, § 11, effective July 1. L. 2004: (4)(b)(I) amended, p. 651, § 16, effective July 1. 38-20-208. Lien no bar. Nothing in this article shall prohibit a lienor, after the sale of livestock pursuant to this article, from pursuing further action to fully satisfy a judgment on an agistor's lien. Source: L. 96: Entire part added, p. 1392, § 11, effective July 1. 38-20-209. Lien as security interest. A lien created pursuant to this article shall be considered a security interest for purposes of section 18-5-206, C.R.S. Source: L. 96: Entire part added, p. 1392, § 11, effective July 1. Colorado Revised Statutes 2019 Page 232 of 707 Uncertified Printout 38-20-210. Recording fees. Any clerk of a county or district court may, pursuant to section 13-32-104, C.R.S., charge a fee for recording bills of sale under this article. Source: L. 96: Entire part added, p. 1392, § 11, effective July 1. ARTICLE 21 Lien for Services 38-21-101. Persons entitled to special lien. Every person who, while lawfully in possession of an article of personal property, renders any service to the owner of such property, by labor or skill, has a special lien thereon, dependent on possession, for the compensation, if any, which is due from the owner for such service. Every laundry proprietor, person conducting a laundry business, dry cleaning establishment proprietor, and person conducting a dry cleaning establishment has a general lien, dependent on possession, upon all personal property in such person's possession belonging to a customer, for the balance due from such customer for laundry work and for the balance due from such customer for dry cleaning work, but nothing in this section shall be construed to confer a lien in favor of a wholesale dry cleaner on materials received from a dry cleaning establishment proprietor or a person conducting a dry cleaning establishment. The terms "person" and "proprietor", as used in this article, include an individual, firm, partnership, association, corporation, and company. Source: L. 47: p. 648, § 1. CSA: C. § 101, § 14(1). CRS 53: § 86-2-1. C.R.S. 1963: § 86-2-1. L. 94: Entire article amended, p. 461, § 1, effective March 31. 38-21-102. Lienor may sell or dispose. (1) Any garments, clothing, wearing apparel, household goods, or any other items that remain in the possession of a person, on which cleaning, pressing, glazing, laundering, or washing has been done, alterations or repairs have been made, or materials or supplies have been used or furnished, for a period of ninety days or more after the completion of such services or labor may be sold. The person to whom such charges are payable and owing shall first notify the owner of such property of the time and place of such sale pursuant to section 38-21-104. Property that is to be placed in storage after any of the services or labor mentioned in this section shall not be affected by the provisions of this section. (2) If any garments, clothing, wearing apparel, household goods, or any other items are left with a launderer or retail dry cleaner for laundering or dry cleaning and are not reclaimed by the customer within one hundred eighty days, the launderer or dry cleaner may, without any liability or responsibility for such garments, clothing, wearing apparel, household goods, or any other items and without notification to the customer, dispose of such items in any manner suitable to the launderer or dry cleaner. Colorado Revised Statutes 2019 Page 233 of 707 Uncertified Printout Source: L. 47: p. 648, § 2. CSA: C. § 101, § 14(2). CRS 53: § 86-2-2. C.R.S. 1963: § 86-2-2. L. 94: Entire article amended, p. 461, § 1, effective March 31. L. 95: Entire section amended, p. 153, § 1, effective April 7. 38-21-103. Sale for storage charges - disposal. (1) All garments, clothing, wearing apparel, household goods, and any other items on which any of the services or labor mentioned in section 38-21-102 have been performed and then placed in storage by agreement, remaining in the possession of a person without the reasonable or agreed charges having been paid for a period of ninety days, may be sold. The person to whom the charges are payable and owing shall first notify the owner of such property of the time and place of sale pursuant to section 38-21104. Persons operating as warehouses or warehousemen shall not be affected by this section. (2) If any garments, clothing, wearing apparel, household goods, or any other items are left for laundering or dry cleaning and placed in storage without the reasonable or agreed charges having been paid and are not reclaimed by the customer within one hundred eighty days, the person holding such property may, without any liability or responsibility for such garments, clothing, wearing apparel, household goods, or any other items and without notification to the customer, dispose of such items in any manner it deems suitable. Source: L. 47: p. 648, § 2. CSA: C. § 101, § 14(2). CRS 53: § 86-2-3. C.R.S. 1963: § 86-2-3. L. 94: Entire article amended, p. 462, § 1, effective March 31. L. 95: Entire section amended, p. 153, § 2, effective April 7. 38-21-104. How notice given. (1) The notice required in this article shall be satisfied by mailing a registered letter, with a return address marked thereon, addressed to the owner of the property if an address was given at the time of delivery of the property, stating that the garments, clothing, wearing apparel, household goods, or any other items on which any of the services or labor mentioned in section 38-21-102 have been performed shall be sold unless they are reclaimed within thirty days after the date of the notice. The notice shall also include the time and place of the sale. The cost of posting or mailing said letter shall be added to the charges. (2) (Deleted by amendment, L. 94, p. 462, § 1, effective March 31, 1994.) (3) Whether or not an address was given at the time of delivery of the property, the person holding such property may dispose of any item after one hundred eighty days without notice pursuant to the provisions of section 38-21-102 (2) or section 38-21-103 (2). Source: L. 47: p. 648, § 2. CSA: C. § 101, § 14(2). CRS 53: § 86-2-4. C.R.S. 1963: § 86-2-4. L. 94: Entire article amended, p. 462, § 1, effective March 31. L. 95: (1) amended and (3) added, p. 154, § 3, effective April 7. Cross references: For publication of legal notices, see part 1 of article 70 of title 24. 38-21-105. Disposition of proceeds of sale. (Deleted by amendment) Colorado Revised Statutes 2019 Page 234 of 707 Uncertified Printout Source: L. 47: p. 648, § 2. CSA: C. § 101, § 14(2). CRS 53: § 86-2-5. C.R.S. 1963: § 86-2-5. L. 94: Entire article amended, p. 463, § 1, effective March 31. 38-21-106. Notice posted in receiving office. Each person taking advantage of this article must keep posted in a prominent place in such person's receiving office at all times a notice which shall read as follows: "All articles cleaned, pressed, glazed, laundered, washed, altered, or repaired and not reclaimed within ninety days may be sold, and such items may be disposed of after one hundred eighty days." Source: L. 47: p. 648, § 2. CSA: C. § 101, § 14(2). CRS 53: § 86-2-6. C.R.S. 1963: § 86-2-6. L. 94: Entire article amended, p. 463, § 1, effective March 31. L. 95: Entire section amended, p. 154, § 4, effective April 7. ARTICLE 21.5 Self-service Storage Facility Liens 38-21.5-101. Definitions. As used in this article 21.5, unless the context otherwise requires: (1) "Default" means the failure to perform in a timely manner any obligation or duty set forth in this article or the rental agreement. (1.5) "Electronic mail" or "e-mail" means an electronic message or an executable program or computer file that contains an image of a message that is transmitted between two or more computers or electronic terminals. The term includes electronic messages that are transmitted within or between computer networks. (2) "Last-known address" means that postal address or e-mail address provided by the occupant in the latest rental agreement or in a subsequent written notice of a change of address. (3) "Occupant" means a person, or his sublessee, successor, or assign, entitled to the use of the storage space at a self-service storage facility under a rental agreement, to the exclusion of others. (4) "Owner" means the owner, operator, lessor, or sublessor of a self-service storage facility, his agent, or any other person authorized by him to manage the facility or to receive rent from an occupant under a rental agreement. (5) "Personal property" means movable property not affixed to land and includes, but is not limited to, goods, merchandise, and household items. (6) "Rental agreement" means any written agreement or lease that establishes or modifies the terms, conditions, rules, or any other provisions concerning the use and occupancy at a self-service storage facility. Colorado Revised Statutes 2019 Page 235 of 707 Uncertified Printout (7) "Self-service storage facility" means any real property designed and used for the purpose of renting or leasing individual storage space to occupants who are to have access to such facility for the purpose of storing and removing personal property. No occupant shall use a self-service storage facility for residential purposes. A self-service storage facility is not a warehouse as used in sections 4-7-209 and 4-7-210, C.R.S. If an owner issues any warehouse receipt, bill of lading, or other document of title for the personal property stored, the owner and the occupant are subject to the provisions of the "Uniform Commercial Code", and the provisions of this article do not apply. (8) "Vehicle" means any item of personal property required to be registered with the department of revenue pursuant to section 42-3-103, C.R.S. (9) "Verified mail" means any method of mailing that is offered by the United States postal service and that provides evidence of mailing. (10) "Watercraft" means any vessel, including a personal watercraft, as defined in section 33-13-102, C.R.S. Source: L. 80: Entire article added, p. 700, § 1, effective July 1. L. 2011: (1.5), (8), (9), and (10) added and (2) and (6) amended, (SB 11-039), ch. 92, p. 271, § 1, effective August 10. L. 2018: IP and (6) amended, (HB 18-1117), ch. 68, p. 626, § 1, effective August 8. 38-21.5-101.5. Rental agreements - required provisions. (1) A rental agreement must contain: (a) A notice stating that all articles stored under the terms of such agreement will be sold or otherwise disposed of if no payment has been received for a continuous thirty-day period; and (b) A provision directing the occupant to disclose any lienholders with an interest in property that is or will be stored in the self-service storage facility. (2) If a rental agreement limits the aggregate value of the property that may be stored in the occupant's storage space, that limit is deemed to be the maximum value of the stored property. (3) A rental agreement may include a reasonable late fee for each month an occupant does not pay rent in full when due. A late fee of twenty dollars or twenty percent of the monthly rental amount, whichever is greater, for each late rental payment is reasonable and does not constitute a penalty. The owner shall not collect a late fee as part of the lien unless the amount of the late fee is stated in the rental agreement or in an addendum to the rental agreement. Source: L. 2018: Entire section added, (HB 18-1117), ch. 68, p. 626, § 2, effective August 8. 38-21.5-102. Lien established. Where a rental agreement is entered into between the owner and the occupant, the owner and his or her heirs, executors, administrators, successors, and assigns have a lien upon all personal property located at the self-service storage facility for rent, labor, or other charges, present or future, including late fees as specified in section 38-21.5Colorado Revised Statutes 2019 Page 236 of 707 Uncertified Printout 101.5 (3), in relation to the personal property and for expenses necessary for its preservation or expenses reasonably incurred in its sale or other disposition pursuant to this article 21.5. The lien attaches as of the date the personal property is brought to the self-service storage facility and continues so long as the owner retains possession and until the default is corrected, a sale is conducted, or the property is otherwise disposed of to satisfy the lien. Before taking enforcement action pursuant to section 38-21.5-103 (1)(b), the owner shall determine if a financing statement concerning the property to be sold or otherwise disposed of has been filed with the secretary of state in accordance with part 5 of article 9 of title 4. Source: L. 80: Entire article added, p. 701, § 1, effective July 1. L. 2001: Entire section amended, p. 1447, § 43, effective July 1. L. 2011: Entire section amended, (SB 11-039), ch. 92, p. 274, § 3, effective August 10. L. 2018: Entire section amended, (HB 18-1117), ch. 68, p. 627, § 3, effective August 8. 38-21.5-103. Enforcement of lien. (1) An owner's lien, as provided for a claim that has become due, may be satisfied as follows: (a) No enforcement action shall be taken by the owner until the occupant has been in default continuously for a period of thirty days. (b) After the occupant has been in default continuously for thirty days, the owner may begin enforcement action if the occupant has been notified in writing. The owner shall deliver the notice in person or by verified mail or electronic mail to the last-known address of the occupant and shall provide the notice to any lienholder with an interest in the property to be sold or otherwise disposed of, of whom the owner has knowledge through the disclosure provision on the rental agreement, as evidenced by a financing statement filed with the secretary of state, or through the owner's receipt of other written notice of such interest from the lienholder. (c) The notice shall include: (I) An itemized statement of the owner's claim showing the sum due at the time of the notice and the date when the sum became due; (II) A brief and general description of the personal property subject to the lien. Such description shall be reasonably adequate to permit the person notified to identify such property; except that any container including, but not limited to, a trunk, valise, or box that is locked, fastened, sealed, or tied in a manner which deters immediate access to its contents may be described as such without describing its contents. (III) A notification of denial of access to the personal property, if such denial is permitted under the terms of the rental agreement, which notification shall provide the name, street address, and telephone number of the owner or his designated agent whom the occupant may contact to respond to such notification; (IV) A demand for payment within a specified time not less than fifteen days after delivery of the notice; Colorado Revised Statutes 2019 Page 237 of 707 Uncertified Printout (V) A conspicuous statement that, unless the claim is paid within the time stated in the notice, the personal property will be advertised for sale or other disposition and will be sold or otherwise disposed of at a specified time and place. (d) If the owner sends notice of a pending sale of property to the occupant's last-known e-mail address and does not receive a response, return receipt, or delivery confirmation from the same e-mail address, the owner must send notice of the sale to the occupant by verified mail to the occupant's last-known postal address before proceeding with the sale. (e) (I) After the expiration of the time given in the notice, the owner shall advertise the sale of the personal property either by: (A) Publishing an advertisement of the sale once a week for two consecutive weeks in a periodical that circulates weekly or more frequently in the county where the self-service storage facility is located; or (B) Advertising the sale in any other commercially reasonable manner. The manner of advertisement is deemed commercially reasonable if at least three independent bidders attend the sale at the time and place advertised. (II) As used in this paragraph (e), "independent bidder" means a bidder who is not related to and who has no controlling interest in, or common pecuniary interest with, the owner or any other bidder. (f) (Deleted by amendment, L. 2011, (SB 11-039), ch. 92, p. 272, § 2, effective August 10, 2011.) (g) (I) Any sale or other disposition of the personal property must be held: (A) On an online auction website that customarily conducts public auctions; (B) At the self-service storage facility; or (C) At the nearest suitable place to where the personal property is held or stored. (II) If the property upon which the lien is claimed is a vehicle or watercraft, and rent and other charges related to the property remain unpaid or unsatisfied for sixty days: (A) The owner may have the property towed from the self-service storage facility by an independent towing carrier holding current and valid operating authority from the Colorado public utilities commission; and (B) The owner is not liable for the property, or for any damages to the property, once the towing carrier takes possession of the property. (III) The owner is not liable for identity theft or other harm resulting from the misuse of information contained in documents or electronic storage media: (A) That are part of the occupant's property sold or otherwise disposed of; and (B) Of which the owner did not have actual knowledge. (h) Before any sale or other disposition of personal property pursuant to this section, the occupant may pay the amount necessary to satisfy the lien and the reasonable expenses incurred under this section and thereby redeem the personal property. Upon receipt of such payment, the owner shall return the personal property, and thereafter the owner shall have no liability to any person with respect to such personal property. Colorado Revised Statutes 2019 Page 238 of 707 Uncertified Printout (i) A purchaser in good faith of the personal property sold to satisfy a lien as provided in this article takes the property free of any rights of persons against whom the lien was valid and free of any rights of a secured creditor, despite noncompliance by the owner with the requirements of this section. (j) In the event of a sale under this section, the owner may satisfy his lien from the proceeds of the sale, subject to the rights of any prior lienholder. The lien rights of such prior lienholder are automatically transferred to the proceeds of the sale. If the sale is made in good faith and is conducted in a reasonable manner, the owner shall not be subject to any surcharge for a deficiency in the amount of a prior secured lien but shall hold the balance, if any, for delivery to the occupant, lienholder, or other person in interest. If the occupant, lienholder, or other person in interest does not claim the balance of the proceeds within three years of the date of sale, it shall become the property of the owner without further recourse by the occupant, lienholder, or other person in interest. (k) Nothing in this section affects the rights and liabilities of the owner or the occupant if: (I) The requirements of this article are not satisfied; (II) The sale of the personal property is not in conformity with the notice of sale; or (III) There is a willful violation of this article. Source: L. 80: Entire article added, p. 701, § 1, effective July 1. L. 2011: IP(1), (1)(b), (1)(d), (1)(e), (1)(f), (1)(g), and (1)(k) amended, (SB 11-039), ch. 92, p. 272, § 2, effective August 10. L. 2018: (1)(g)(I) amended, (HB 18-1117), ch. 68, p. 627, § 4, effective August 8. 38-21.5-104. Notice posted in office. Each owner acting pursuant to this article shall keep posted in a prominent place in his office at all times a notice which shall read as follows: "All articles stored by a rental agreement, and charges not having been paid for thirty days, will be sold or otherwise disposed of to pay charges." Source: L. 80: Entire article added, p. 703, § 1, effective July 1. 38-21.5-105. Additional liens. Nothing in this article shall be construed as in any manner impairing or affecting the right of parties to create liens by special contract or agreement, nor shall it in any manner affect or impair other liens arising at common law or in equity, or by any statute of this state. Source: L. 80: Entire article added, p. 703, § 1, effective July 1. ARTICLE 22 General Mechanics' Lien Colorado Revised Statutes 2019 Page 239 of 707 Uncertified Printout Cross references: For liens on motor vehicles, see article 6 of title 42. 38-22-101. Liens in favor of whom - when filed - definition of person. (1) Every person who furnishes or supplies laborers, machinery, tools, or equipment in the prosecution of the work, and mechanics, materialmen, contractors, subcontractors, builders, and all persons of every class performing labor upon or furnishing directly to the owner or persons furnishing labor, laborers, or materials to be used in construction, alteration, improvement, addition to, or repair, either in whole or in part, of any building, mill, bridge, ditch, flume, aqueduct, reservoir, tunnel, fence, railroad, wagon road, tramway, or any other structure or improvement upon land, including adjacent curb, gutter, and sidewalk, and also architects, engineers, draftsmen, and artisans who have furnished designs, plans, plats, maps, specifications, drawings, estimates of cost, surveys, or superintendence, or who have rendered other professional or skilled service, or bestowed labor in whole or in part, describing or illustrating, or superintending such structure, or work done or to be done, or any part connected therewith, shall have a lien upon the property upon which they have furnished laborers or supplied machinery, tools, or equipment or rendered service or bestowed labor or for which they have furnished materials or mining or milling machinery or other fixtures, for the value of such laborers, machinery, tools, or equipment supplied, or services rendered or labor done or laborers or materials furnished, whether at the instance of the owner, or of any other person acting by the owner's authority or under the owner, as agent, contractor, or otherwise for the laborers, machinery, tools, or equipment supplied, or work or labor done or services rendered or laborers or materials furnished by each, respectively, whether supplied or done or furnished or rendered at the instance of the owner of the building or other improvement, or the owner's agent; and every contractor, architect, engineer, subcontractor, builder, agent, or other person having charge of the construction, alteration, addition to, or repair, either in whole or in part, of said building or other improvement shall be held to be the agent of the owner for the purposes of this article. (2) In case of a contract for the work, between the reputed owner and a contractor, the lien shall extend to the entire contract price, and such contract shall operate as a lien in favor of all persons performing labor or services or furnishing laborers or materials under contract, express or implied, with said contractor, to the extent of the whole contract price; and after all such liens are satisfied, then as a lien for any balance of such contract price in favor of the contractor. (3) All such contracts shall be in writing when the amount to be paid thereunder exceeds five hundred dollars, and shall be subscribed by the parties thereto. The contract, or a memorandum thereof, setting forth the names of all the parties to the contract, a description of the property to be affected thereby, together with a statement of the general character of the work to be done, the estimated total amount to be paid thereunder, together with the times or stages of the work for making payments, shall be filed by the owner or reputed owner, in the office of the county clerk and recorder of the county where the property, or the principal portion thereof, is situated before the work is commenced under and in accordance with the terms of the contract. In case such contract, or a memorandum thereof, is not so filed, the labor done and materials Colorado Revised Statutes 2019 Page 240 of 707 Uncertified Printout furnished by all persons shall be deemed to have been done and furnished at the personal instance of the owner, and such persons shall have a lien for the value thereof. (4) For the purposes of this article, the value of labor done shall include, but not be limited to, the payments required under any labor contract to any trust established for the provision of any pension, profit-sharing, vacation, health and welfare, prepaid legal services, or apprentice training benefits for the use of the employees of any contractors, and the trustee of any such trust shall have a lien therefor. (5) All claimants who establish the right to a lien or claim under any of the provisions of this article shall be entitled to receive interest on any such lien or claim at the rate provided for under the terms of any contract or agreement under which the laborers were furnished or the labor or material was supplied or, in the absence of an agreed rate, at the rate of twelve percent per annum. (6) For purposes of this article, "person" means a natural person, firm, association, corporation, or other legal entity; except that it shall not include a labor organization as defined in section 24-34-401 (6), C.R.S. Source: L. 1899: p. 261, § 1. R.S. 08: § 4025. C.L. § 6442. CSA: C. 101, § 15. CRS 53: § 86-3-1. C.R.S. 1963: § 86-3-1. L. 65: p. 849, § 1. L. 69: p. 692, § 1. L. 75: (4) and (5) added, p. 1422, § 1, effective October 1. L. 2000: (1), (2), and (5) amended and (6) added, p. 204, § 1, effective August 2. Cross references: For liens for surveyors and civil and mining engineers, see § 38-22121. 38-22-102. Payments - effect. (1) No part of the contract price, by the terms of any such contract, shall be made payable, nor shall the same, or any part thereof, be paid in advance of the commencement of the work, but the contract price, by the terms of the contract, shall be made payable in installments, or upon estimates, at specified times after the commencement of the work, or on the completion of the whole work; but at least the following percentages of the total contract price shall be made payable at least thirty-five days after the final completion of the contract: (a) Fifteen percent of the first two hundred fifty thousand dollars of the contract price; (b) Ten percent of the contract price in excess of two hundred fifty thousand dollars up to and including five hundred thousand dollars; (c) Five percent of the contract price in excess of five hundred thousand dollars up to and including seven hundred fifty thousand dollars; (d) Two percent of the contract price in excess of seven hundred fifty thousand dollars. (2) No payment made prior to the time when the same is due, under the terms and conditions of the contract, shall be valid for the purpose of defeating, diminishing, or discharging any lien in favor of any person, except the contractor or other person to or for whom the payment is made, but as to such liens, such payment shall be deemed as if not made and shall be Colorado Revised Statutes 2019 Page 241 of 707 Uncertified Printout applicable to such liens, notwithstanding that the contractor or other person to or for whom it was paid may thereafter abandon his contract, or be or become indebted to the reputed owner in any amount for damages or otherwise or for nonperformance of his contract or otherwise. (3) As to all liens, except those of principal contractors, the whole contract price shall be payable in money, and shall not be diminished by any prior or subsequent indebtedness, offset, or counterclaim in favor of the reputed owner and against the principal contractor, and no alteration of such contract shall affect any lien acquired under the provisions of this article. In case such contracts and alterations thereof do not conform substantially to the provisions of this section, the labor done and laborers or materials furnished by all persons other than the principal contractor shall be deemed to have been done and furnished at the personal instance and request of the person who contracted with the principal contractor, they shall have a lien for the value thereof. (3.5) Any provisions of this section to the contrary notwithstanding, it shall be an affirmative defense in any action to enforce a lien pursuant to this article that the owner or some person acting on the owner's behalf has paid an amount sufficient to satisfy the contractual and legal obligations of the owner, including the initial purchase price or contract amount plus any additions or change orders, to the principal contractor or any subcontractor for the purpose of payment to the subcontractors or suppliers of laborers, materials, or services to the job, when: (a) The property is an existing single-family dwelling unit; (b) The property is a residence constructed by the owner or under a contract entered into by the owner prior to its occupancy as the owner's primary residence; or (c) The property is a single-family, owner-occupied dwelling unit, including a residence constructed and sold for occupancy as a primary residence. This paragraph (c) shall not apply to a developer or builder of multiple residences except for the residence that is occupied as the primary residence of the developer or builder. (4) Any of the persons mentioned in section 38-22-101, except a principal contractor, at any time may give to the owner, or reputed owner, or to the superintendent of construction, agent, architect, or to the financing institution or other person disbursing construction funds, a written notice that they have performed labor or furnished laborers or materials to or for a principal contractor, or any person acting by authority of the owner or reputed owner, or that they have agreed to and will do so, stating in general terms the kind of labor, laborers, or materials and the name of the person to or for whom the same was or is to be done, or performed, or both, and the estimated or agreed amount in value, as near as may be, of that already done or furnished, or both, and also of the whole agreed to be done or furnished, or both. (5) Such notice may be given by delivering the same to the owner or reputed owner personally, or by leaving it at his residence or place of business with some person in charge; or by delivering it either to his superintendent of construction, agent, architect, or to the financing institution or other person disbursing construction funds, or by leaving it either at their residence or place of business with some person in charge. No such notice shall be invalid or insufficient by reason of any defect of form, provided it is sufficient to inform the owner or reputed owner of the substantial matters provided for in this section, or to put him upon inquiry as to such matters. Colorado Revised Statutes 2019 Page 242 of 707 Uncertified Printout (6) Upon such notice being given, it is the duty of the person who contracted with the principal contractor to withhold from such principal contractor, or from any other person acting under such owner or reputed owner, and to whom, by said notice, the said labor, laborers, or materials, have been furnished or agreed to be furnished, sufficient money due or that may become due to said principal contractor, or other persons, to satisfy such claim and any lien that may be filed therefor for record under this article, including reasonable costs provided for in this article. (7) The payment of any such lien, which has been acknowledged by such principal contractor, or other person acting under such owner or reputed owner in writing to be correct, or which has been established by judicial determination, shall be taken and allowed as an offset against any moneys which may be due from the owner, or reputed owner to such principal contractor, or the person for whom such work and labor was performed or furnished. Source: L. 1899: p. 263, § 2. R.S. 08: § 4026. C.L. § 6443. CSA: C. 101, § 16. CRS 53: § 86-3-2. C.R.S. 1963: § 86-3-2. L. 65: p. 850, § 2. L. 69: p. 692, § 2. L. 87: (3.5) added, p. 1336, § 1, effective May 25. L. 2000: (3), IP(3.5), (3.5)(b), (4), (6), and (7) amended, p. 205, § 2, effective August 2. 38-22-103. Attaching of lien - enforcement. (1) The liens granted by this article shall extend to and cover so much of the lands whereon such building, structure, or improvement is made as may be necessary for the convenient use and occupation of such building, structure, or improvement, and the same shall be subject to such liens. In case any such building occupies two or more lots or other subdivisions of land, such several lots or other subdivisions shall be deemed one lot for the purposes of this article, and the same rule shall hold in cases of any other such improvements that are practically indivisible, and shall attach to all machinery and other fixtures used in connection with any such lands, buildings, mills, structures, or improvements. (2) When the lien is for work done or labor or material furnished for any entire structure, erection, or improvement, such lien shall attach to such building, erection, or improvement for or upon which the work was done, or laborers or materials furnished in preference to any prior lien or encumbrance, or mortgage upon the land upon which the same is erected or put, and any person enforcing such lien may have such building, erection, or improvement sold under execution and the purchaser at any such sale may remove the same within thirty days after such sale. (3) Any lien provided for by this article shall extend to and embrace any additional or greater interest in any of such property acquired by such owner at any time subsequent to the making of the contract or the commencement of the work upon such structure and before the establishment of such lien by process of law, and shall extend to any assignable, transferable, or conveyable interest of such owner or reputed owner in the land upon which such building, structure, or other improvement is erected or placed. (4) Whenever any person furnishes any laborers or materials or performs any labor, for the erection, construction, addition to, alteration, or repair of two or more buildings, structures, Colorado Revised Statutes 2019 Page 243 of 707 Uncertified Printout or other improvements, when they are built and constructed by the same person and under the same contract, it is lawful for the person so furnishing such laborers or materials or performing such labor to divide and apportion the same among the buildings, structures, or other improvements in proportion to the value of the laborers or materials furnished for and the labor performed upon or for each of said buildings, structures, or other improvements and to file with his or her lien claim therefor a statement of the amount so apportioned to each building, structure, or other improvement. This lien claim when so filed may be enforced under the provisions of this article in the same manner as if said laborers or materials had been furnished and labor performed for each of said buildings, structures, or other improvements separately; but if the cost or value of such labor, laborers, or materials cannot be readily and definitely divided and apportioned among the several buildings, structures, or other improvements, then one lien claim may be made, established, and enforced against all such buildings, structures, or other improvements, together with the ground upon which the same may be situated, and in such case for the purposes of this article, all such buildings, structures, and improvements shall be deemed one building, structure, or improvement, and the land on which the same are situated as one tract of land. Source: L. 1899: p. 265, § 3. R.S. 08: § 4027. C.L. § 6444. CSA: C. 101, § 17. CRS 53: § 86-3-3. C.R.S. 1963: § 86-3-3. L. 2000: (2) and (4) amended, p. 206, § 3, effective August 2. 38-22-104. Lien on mining property. The provisions of this article shall apply to all persons who do work or furnish laborers or materials, or mining, milling, or other machinery or other fixtures, as provided in section 38-22-101, for the working, preservation, prospecting, or development of any mine, lode, or mining claim or deposit yielding metals or minerals of any kind, or for the working, preservation, or development of any such mine, lode, or deposit, in search of any such metals or minerals; and to all persons who do work upon or furnish laborers or materials, mining, milling, and other machinery or other fixtures, as provided in section 3822-101, upon, in, or for any shaft, tunnel, mill, or tunnel site, incline, adit, drift, or any draining or other improvement of or upon any such mine, lode, deposit, or tunnel site; and to every miner or other person who does work upon or furnishes any laborers, coal, power, provisions, timber, powder, rope, nails, candles, fuse, caps, rails, spikes, or iron, or other materials whatever, as provided in section 38-22-101, upon any mine, lode, deposit, mill, or tunnel site. But when two or more lodes, mines, or deposits owned or claimed by the same person are worked through a common shaft, tunnel, incline, adit, drift, or other excavation, then all the mines, mining claims, lodes, deposits, and tunnel and mill sites so owned and worked or developed, for the purpose of this article shall be deemed one mine. This section is not applicable to the owner of any mine, lode, mining claim, deposit, mill, or tunnel where the work or labor has been performed for or the laborers or materials furnished to a lessee. Colorado Revised Statutes 2019 Page 244 of 707 Uncertified Printout Source: L. 1899: p. 266, § 4. R.S. 08: § 4028. L. 15: p. 332, § 1. C.L. § 6445. CSA: C. 101, § 18. CRS 53: § 86-3-4. C.R.S. 1963: § 86-3-4. L. 2000: Entire section amended, p. 207, § 4, effective August 2. 38-22-105. Property subject to lien - notice. (1) Any building, mill, manufactory, bridge, ditch, flume, aqueduct, reservoir, tunnel, fence, railroad, wagon road, tramway, and every structure or other improvement mentioned in this article, constructed, altered, added to, removed to, or repaired, either in whole or in part, upon or in any land with the knowledge of the owner or reputed owner of such land, or of any person having or claiming an interest therein, otherwise than under a bona fide prior recorded mortgage, deed of trust, or other encumbrance, or prior lien shall be held to have been erected, constructed, altered, removed, repaired, or done at the instance and request of such owner or person, including landlord or vendor, who by lease or contract has authorized such improvements, but so far only as to subject his interest to a lien therefor as provided in this section. (2) Such interest so owned or claimed shall be subject to any lien given by the provisions of this article, unless such owner or person within five days after obtaining notice of the erection, construction, alteration, removal, addition, repair, or other improvement, gives notice that his or her interests shall not be subject to any lien for the same by serving a written or printed notice to that effect, personally, upon all persons performing labor or furnishing laborers, materials, machinery, or other fixtures therefor, or within five days after such owner or person has obtained notice of the erection, construction, alteration, removal, addition, repair, or other improvement, or notice of the intended erection, construction, alteration, removal, addition, repair, or other improvement gives such notice by posting and keeping posted a written or printed notice in some conspicuous place upon said land or upon the building or other improvements situate thereon. (3) This section shall not apply to coowners of unincorporated canals, ditches, flumes, aqueducts, and reservoirs nor to the enforcement of article 23 of this title. The provisions of this section shall not be construed to apply to any owner or person claiming any interest in such property, the interest of whom is subject to a lien pursuant to the provisions of section 38-22101. Source: L. 1899: p. 267, § 5. R.S. 08: § 4029. C.L. § 6446. CSA: C. 101, § 19. CRS 53: § 86-3-5. C.R.S. 1963: § 86-3-5. L. 65: p. 851, § 3. L. 2000: (2) amended, p. 207, § 5, effective August 2. 38-22-105.5. Notice of lien law. (1) Upon issuing a building permit for the improvement, restoration, remodeling, or repair of or the construction of improvements or additions to residential property, the agency or other authority issuing the permit shall send a written notice, as set forth in subsection (2) of this section, by first-class mail addressed to the property for which the permit was issued. Colorado Revised Statutes 2019 Page 245 of 707 Uncertified Printout (2) The notice shall be in at least ten-point bold-faced type, if printed, or in capital letters, if typewritten, shall identify the contractor by name and address, and shall state substantially as follows: IMPORTANT NOTICE TO OWNERS: UNDER COLORADO LAW, SUPPLIERS, SUBCONTRACTORS, OR OTHER PERSONS FURNISHING LABORERS OR PROVIDING LABOR OR MATERIALS FOR WORK ON YOUR RESIDENTIAL PROPERTY MAY HAVE A RIGHT TO COLLECT THEIR MONEY FROM YOU BY FILING A LIEN AGAINST YOUR PROPERTY. A LIEN CAN BE FILED AGAINST YOUR RESIDENCE WHEN A SUPPLIER, SUBCONTRACTOR, OR OTHER PERSON IS NOT PAID BY YOUR CONTRACTOR FOR SUCH LABORERS, LABOR, OR MATERIALS. HOWEVER, IN ACCORDANCE WITH THE COLORADO GENERAL MECHANICS' LIEN LAW, SECTIONS 38-22-102 (3.5) AND 38-22-113 (4), COLORADO REVISED STATUTES, YOU HAVE AN AFFIRMATIVE DEFENSE IN ANY ACTION TO ENFORCE A LIEN IF YOU OR SOME PERSON ACTING ON YOUR BEHALF HAS PAID YOUR CONTRACTOR AND SATISFIED YOUR LEGAL OBLIGATIONS. YOU MAY ALSO WANT TO DISCUSS WITH YOUR CONTRACTOR, YOUR ATTORNEY, OR YOUR LENDER POSSIBLE PRECAUTIONS, INCLUDING THE USE OF LIEN WAIVERS OR REQUIRING THAT EVERY CHECK ISSUED BY YOU OR ON YOUR BEHALF IS MADE PAYABLE TO THE CONTRACTOR, THE SUBCONTRACTOR, AND THE SUPPLIER FOR AVOIDING DOUBLE PAYMENTS IF YOUR PROPERTY DOES NOT SATISFY THE REQUIREMENTS OF SECTIONS 38-22-102 (3.5) AND 38-22-113 (4), COLORADO REVISED STATUTES. YOU SHOULD TAKE WHATEVER STEPS NECESSARY TO PROTECT YOUR PROPERTY. (3) The notice prescribed by this section shall not be required when a building permit is issued for new residential construction or for residential property containing more than four living units. (4) As used in this section: (a) "New residential construction" means the construction or addition of living units on real property that was previously unimproved or was used for nonresidential purposes. (b) "Residential property" means any real property, including improvements, containing living units used for human habitation. (5) To offset the cost of issuing the notice required by this section, the appropriate authority may raise the fee for a building permit by one dollar. (6) The failure of the agency or other authority which issues building permits to provide the notice required by this section shall not be an affirmative defense to any lien claimed pursuant to the provisions of this article; nor shall the agency or any employee of the agency incur liability as a result of such failure. Colorado Revised Statutes 2019 Page 246 of 707 Uncertified Printout (7) The agency or other authority which issues building permits may deliver the notice required by this section personally to the owner of the property, in lieu of mailing the notice as provided by subsection (1) of this section. Source: L. 79: Entire section added, p. 1389, § 1, effective January 1, 1980. L. 81: Entire section R&RE, p. 1822, § 1, effective July 1. L. 88: (2) R&RE, p. 1253, § 1, effective April 14. L. 2000: (2) amended, p. 208, § 6, effective August 2. 38-22-106. Priority of lien - attachments. (1) All liens established by virtue of this article shall relate back to the time of the commencement of work under the contract between the owner and the first contractor, or, if said contract is not in writing, then such liens shall relate back to and take effect as of the time of the commencement of the work upon the structure or improvement, and shall have priority over any lien or encumbrance subsequently intervening, or which may have been created prior thereto but which was not then recorded and of which the lienor, under this article, did not have actual notice. Nothing contained in this section, however, shall be construed as impairing any valid encumbrance upon any such land duly made and recorded prior to the signing of such contract or the commencement of work upon such improvements or structure. (2) No attachment, garnishment, or levy under an execution upon any money due or to become due to a contractor from the owner or reputed owner of any such property subject to any such lien shall be valid as against such lien of a subcontractor or materialmen, and no such attachment, garnishment, or levy upon any money due to a subcontractor or materialmen of the second class, as provided in section 38-22-108 (1)(b), from the contractor shall be valid as against any lien of a laborer employed by the day or piece, who does not furnish any material as classified in this article. Source: L. 1899: p. 268, § 6. R.S. 08: § 4030. C.L. § 6447. CSA: C. 101, § 20. CRS 53: § 86-3-6. C.R.S. 1963: § 86-3-6. 38-22-107. Lien attaches to water rights and franchises. Such liens likewise shall attach to rights of water and rights-of-way that may pertain in any manner to any kind of property specified in this article and to which such liens attach. In the case of corporations such liens shall attach to all the franchises and charter privileges that may pertain in any manner to said specified property. Source: L. 1899: p. 269, § 7. R.S. 08: § 4031. C.L. § 6448. CSA: C. 101, § 21. CRS 53: § 86-3-7. C.R.S. 1963: § 86-3-7. 38-22-108. Rank of liens. (1) Every person given a lien by this article whose contract, either express or implied, is with the owner or reputed owner or owner's agent or other representative, is a principal contractor and all others are subcontractors; and in every case in Colorado Revised Statutes 2019 Page 247 of 707 Uncertified Printout which different liens are claimed against the same property, the rank of each lien, or class of liens, as between the different lien claimants, shall be declared and ordered to be satisfied in the decree or judgment in the following order named: (a) The liens of all those who were laborers or mechanics working by the day or piece, but without furnishing material therefor, either as principal or subcontractors; (b) The liens of all other subcontractors and of all materialmen whose claims are either entirely or principally for laborers, materials, machinery, or other fixtures, furnished either as principal contractors or subcontractors; (c) The liens of all other principal contractors and all moneys realized in any actions for the satisfaction of liens against the same improvements or structures shall be paid out in the order above designated. Source: L. 1899: p. 269, § 8. R.S. 08: § 4032. C.L. § 6449. CSA: C. 101, § 22. CRS 53: § 86-3-8. C.R.S. 1963: § 86-3-8. L. 2000: IP(1), (1)(b), and (1)(c) amended, p. 208, § 7, effective August 2. 38-22-109. Lien statement. (1) Any person wishing to use the provisions of this article shall file for record, in the office of the county clerk and recorder of the county wherein the property, or the principal part thereof, to be affected by the lien is situated, a statement containing: (a) The name of the owner or reputed owner of such property, or in case such name is not known to him, a statement to that effect; (b) The name of the person claiming the lien, the name of the person who furnished the laborers or materials or performed the labor for which the lien is claimed, and the name of the contractor when the lien is claimed by a subcontractor or by the assignee of a subcontractor, or, in case the name of such contractor is not known to a lien claimant, a statement to that effect; (c) A description of the property to be charged with the lien, sufficient to identify the same; and (d) A statement of the amount due or owing such claimant. (2) Such statement shall be signed and sworn to by the party, or by one of the parties, claiming such lien, or by some other person in his or their behalf, to the best knowledge, information, and belief of the affiant; and the signature of any such affiant to any such verification shall be a sufficient signing of the statement. (3) In order to preserve any lien for work performed or laborers or materials furnished, there must be a notice of intent to file a lien statement served upon the owner or reputed owner of the property or the owner's agent and the principal or prime contractor or his or her agent at least ten days before the time of filing the lien statement with the county clerk and recorder. Such notice of intent shall be served by personal service or by registered or certified mail, return receipt requested, addressed to the last known address of such persons, and an affidavit of such service or mailing at least ten days before filing of the lien statement with the county clerk and recorder shall be filed for record with said statement and shall constitute proof of such service. Colorado Revised Statutes 2019 Page 248 of 707 Uncertified Printout (4) All such lien statements claimed for labor and work by the day or piece, but without furnishing laborers or materials therefor, must be filed for record after the last labor for which the lien claimed has been performed and at any time before the expiration of two months next after the completion of the building, structure, or other improvement. (5) Except as provided in subsections (10) and (11) of this section, the lien statements of all other lien claimants must be filed for record at any time before the expiration of four months after the day on which the last labor is performed or the last laborers or materials are furnished by such lien claimant. (6) New or amended statements may be filed within the periods provided in this section for the purpose of curing any mistake or for the purpose of more fully complying with the provisions of this article. (7) No trivial imperfection in or omission from the said work or in the construction of any building, improvement, or structure, or of the alteration, addition to, or repair thereof, shall be deemed a lack of completion, nor shall such imperfection or omission prevent the filing of any lien statement or filing of or giving notice, nor postpone the running of any time limit within which any lien statement shall be filed for record or served upon the owner or reputed owner of the property or such owner's agent and the principal or prime contractor or his or her agent, or within which any notice shall be given. For the purposes of this section, abandonment of all labor, work, services, and furnishing of laborers or materials under any unfinished contract or upon any unfinished building, improvement, or structure, or the alteration, addition to, or repair thereof, shall be deemed equivalent to a completion thereof. For the purposes of this section, "abandonment" means discontinuance of all labor, work, services, and furnishing of laborers or materials for a three-month period. (8) Subject to the prior termination of the lien under the provisions of section 38-22-110, no lien claimed by virtue of this article shall hold the property, or remain effective longer than one year from the filing of such lien, unless within thirty days after each annual anniversary of the filing of said lien statement there is filed in the office of the county clerk and recorder of the county wherein the property is located an affidavit by the person or one of the persons claiming the lien, or by some person in his behalf, stating that the improvements on said property have not been completed. (9) Upon the filing of the notice required and the commencement of an action, within the time and in the manner required by said section 38-22-110, no annual affidavit need be filed thereafter. (10) Within the applicable time period provided in subsections (4) and (5) of this section and subject to the provisions of section 38-22-125, any lien claimant granted a lien pursuant to section 38-22-101 may file with the county clerk and recorder of the county in which the real property is situated a notice stating the legal description or address or such other description as will identify the real property; the name of the person with whom he has contracted; and the claimant's name, address, and telephone number. One such notice may be filed upon more than one property, and, in the case of a subdivision, one notice may describe only the part thereof upon which the claimant has or will obtain a lien pursuant to section 38-22-101. The filing of Colorado Revised Statutes 2019 Page 249 of 707 Uncertified Printout said notice shall serve as notice that said person may thereafter file a lien statement and shall extend the time for filing of the mechanic's lien statement to four months after completion of the structure or other improvement or six months after the date of filing of said notice, whichever occurs first. Unless sooner terminated as provided in subsection (11) of this section, the notice provided for in this subsection (10) shall automatically terminate six months after the date said notice is filed. In the event that said structure or other improvements have not been completed prior to the termination of said notice, a claimant, prior to said termination date, may file a new or amended notice which shall remain effective for an additional period of six months after the date of filing or four months after the date of completion of said structure or other improvements, whichever occurs first. (11) Upon termination of agreement to provide labor, laborers, or materials, the owner, or someone in such owner's behalf, may demand from the person filing said notice a termination of said notice, which termination shall identify the properties upon which labor has not been performed or to which laborers or materials have not been furnished and as to which said notice is terminated. Upon the filing of said termination in the office of the county clerk and recorder in the county wherein said property is situated, such notice no longer constitutes notice as provided in subsection (10) of this section as to the property described in said termination. (12) The notices provided for in subsections (10) and (11) of this section shall be recorded in the office of the county clerk and recorder of the county wherein the real property is located. Source: L. 1899: p. 269, § 9. R.S. 08: § 4033. C.L. § 6450. CSA: C. 101, § 23. CRS 53: § 86-3-9. L. 55: p. 537, § 1. C.R.S. 1963: § 86-3-9. L. 65: pp. 851, 856, §§ 4, 6. L. 75: (3) R&RE and (4), (5), (7), and (10) amended, pp. 1420, 1422, 1423, §§ 1, 2, 3, effective October 1. L. 79: (8), (10), and (11) amended and (12) R&RE, pp. 1390, 1391, §§ 2, 3, effective January 1, 1980. L. 83: (10) amended, p. 1229, § 16, effective July 1. L. 2000: IP(1), (1)(b), (3) to (5), (7), and (11) amended, p. 209, § 8, effective August 2. 38-22-110. Action commenced within six months. No lien claimed by virtue of this article, as against the owner of the property or as against one primarily liable for the debt upon which the lien is based or as against anyone who is neither the owner of the property nor one primarily liable for such debt, shall hold the property longer than six months after the last work or labor is performed, or laborers or materials are furnished, or after the completion of the building, structure, or other improvement, or the completion of the alteration, addition to, or repair thereof, as prescribed in section 38-22-109, unless an action has been commenced within that time to enforce the same, and unless also a notice stating that such action has been commenced is filed for record within that time in the office of the county clerk and recorder of the county in which said property is situate. Where two or more liens are claimed of record against the same property, the commencement of any action and the filing of the notice of the commencement of such action within that time by any one or more of such lien claimants in Colorado Revised Statutes 2019 Page 250 of 707 Uncertified Printout which action all the lien claimants as appear of record are made parties, either plaintiff or defendant shall be sufficient. Source: L. 1899: p. 271, § 10. R.S. 08: § 4034. L. 15: p. 333, § 2. C.L. § 6451. CSA: C. 101, § 24. L. 37: p. 481, § 4. CRS 53: § 86-3-10. C.R.S. 1963: § 86-3-10. L. 2000: Entire section amended, p. 210, § 9, effective August 2. Cross references: For filing notice of lis pendens, see C.R.C.P. 105(f). 38-22-111. Joinder of parties - consolidation of actions. (1) Any number of persons claiming liens against the same property and not contesting the claims of each other may join as plaintiffs in the same action, and when separate actions are commenced, the court may consolidate them upon motion of any party in interest or upon its own motion. (2) Upon such procedure for consolidation, one case shall be selected with which the other cases shall be incorporated, and all the parties to such other cases shall be made parties plaintiff or defendant as the court may designate in said case so selected. All persons having claims for liens, the statements of which have been filed as provided in this article, shall be made parties to the action. (3) Those claiming liens who fail or refuse to become parties plaintiff, or for any reason have not been made such parties, shall be made parties defendant. Any party claiming a lien, not made a party to such action, at any time within the period provided in section 38-22-109, may be allowed to intervene by motion, upon cause shown, and may be made a party defendant on the order of the court, which shall fix by such order the time for such intervenor to plead or otherwise proceed. The pleadings and other proceedings of such intervenor thus made a party shall be the same as though he had been an original party. Any defendant who claims a lien, in answering, shall set forth by cross complaint his claim and lien. Likewise such defendant may set forth in said answer defensive matter to any claim or lien of any plaintiff or codefendant or otherwise deny such claim or lien. The owner of the property to which such lien has attached, and all other parties claiming of record any right, title, interest, or equity therein, whose title or interests are to be charged with or affected by such lien, shall be made parties to the action. Source: L. 1899: p. 272, § 11. R.S. 08: § 4035. C.L. § 6452. CSA: C. 101, § 25. CRS 53: § 86-3-11. C.R.S. 1963: § 86-3-11. 38-22-112. Allegations of complaint. It is sufficient to allege in the complaint in relation to any party claiming a lien whom it is desired to make a defendant, that such party claims a lien under this article upon the property described; and in case of the intervention of parties, or of the making of new parties, or of the consolidation of actions, so that the issues are in any manner changed or increased, any party to the action shall be allowed to amend his pleadings, or file new pleadings, as the nature of the case may require. Colorado Revised Statutes 2019 Page 251 of 707 Uncertified Printout Source: L. 1899: p. 273, § 12. R.S. 08: § 4036. C.L. § 6453. CSA: C. 101, § 26. CRS 53: § 86-3-12. C.R.S. 1963: § 86-3-12. 38-22-113. Hearing - judgment - summons - defense. (1) The court, whenever the issues in such case are made up, shall advance such cause to the head of the docket for trial and may proceed to hear and determine said liens and claims or may refer the same to a magistrate to ascertain and report upon said liens and claims and the amounts justly due thereon. (2) Judgments shall be rendered according to the rights of the parties. The various rights of all the lien claimants and other parties to any such action shall be determined and incorporated in one judgment or decree. Each party who establishes his claim under this article shall have judgment against the party personally liable to him for the full amount of his claim so established, and shall have a lien established and determined in said decree upon the property to which his lien has attached to the extent stated in this section. (3) Proceedings to foreclose and enforce mechanics' liens under this article are actions in rem, and service by publication may be obtained against any defendant therein in a manner as provided by law, and personal judgment against the principal contractor or other person personally liable for the debt for which the lien is claimed shall not be requisite to a decree of foreclosure in favor of a subcontractor or materialman. (4) In such proceedings, it shall be an affirmative defense that the owner or some person acting on the owner's behalf has paid an amount sufficient to satisfy the contractual and legal obligations of the owner, including the initial purchase price or contract amount plus any additions or change orders, to the principal contractor or any subcontractor for the purpose of payment to the subcontractors or suppliers of laborers or materials or services to the job, when: (a) The property is an existing single-family dwelling unit; (b) The property is a residence constructed by the owner or under a contract entered into by the owner prior to its occupancy as his primary residence; or (c) The property is a single-family, owner-occupied dwelling unit, including a residence constructed and sold for occupancy as a primary residence. This paragraph (c) shall not apply to a developer or builder of multiple residences except for the residence that is occupied as the primary residence of the developer or builder. Source: L. 1899: p. 273, § 13. R.S. 08: § 4037. C.L. § 6454. CSA: C. 101, § 27. CRS 53: § 86-3-13. C.R.S. 1963: § 86-3-13. L. 87: (4) added, p. 1336, § 2, effective May 25. L. 91: (1) amended, p. 366, § 42, effective April 9. L. 2000: IP(4) amended, p. 210, § 10, effective August 2. Cross references: For service of summons by publication, see C.R.C.P. 4(g) and 4(h). 38-22-114. Disposition of proceeds - execution. (1) The court shall cause said property to be sold in satisfaction of said liens and costs of suit as in case of foreclosure of mortgages; and any party in whose favor a judgment for a lien is rendered, may cause the property to be sold Colorado Revised Statutes 2019 Page 252 of 707 Uncertified Printout within the time and in the manner provided for sales of real estate on executions issued out of any court of record, and there shall be the same rights of redemption as are provided for in the case of sales of real estate on executions. And if the proceeds of such sale, after the payment of costs, are not sufficient to satisfy the whole amount of such liens included in the decree of sale, then such proceeds shall be apportioned according to the rights of the several parties. In case the proceeds of sale amount to more than the sum of said liens and all costs, then the remainder shall be paid over to the owner of said property; and each party whose claim is not fully satisfied in the manner provided in this section shall have execution for the balance unsatisfied against the party personally liable, as in other cases. (2) In the first instance without a previous sale of said property to which such liens have attached, an execution may issue in behalf of any such lien claimant for the full amount of his claim against the party personally liable, and he may thereafter enforce such lien for any balance of such judgment remaining unsatisfied. A transcript of the docket of said judgment and decree may be filed with the county clerk and recorder of the county where such property is situated or in any other county, and thereupon said judgment and decree shall become a lien upon the real property in such county of each party so personally liable in favor of any such lien claimant holding any such judgment against any such party so personally liable, as in other cases of recording transcripts of judgment. Source: L. 1899: p. 274, § 14. R.S. 08: § 4038. C.L. § 6455. CSA: C. 101, § 28. CRS 53: § 86-3-14. C.R.S. 1963: § 86-3-14. Cross references: For foreclosure of mortgages, see § 38-36-162; for sale of real estate on execution, see § 13-56-201. 38-22-115. Parties to action. Principal contractors and all other persons personally liable for the debt for which the lien is claimed shall be made parties to actions to enforce liens under this article, and service of summons shall be made either personally or by publication in the same manner and with like effect as is provided by law in cases of attachment and other proceedings in rem. Source: L. 1899: p. 274, § 15. R.S. 08: § 4039. C.L. § 6456. CSA: C. 101, § 29. CRS 53: § 86-3-15. C.R.S. 1963: § 86-3-15. Cross references: For service of summons in attachment or other in rem proceedings, see C.R.C.P. 4(e) to 4(g). 38-22-116. Costs. The court shall divide the costs between the parties liable therefor, according to the justice of the case. Colorado Revised Statutes 2019 Page 253 of 707 Uncertified Printout Source: L. 1899: p. 275, § 16. R.S. 08: § 4040. C.L. § 6457. CSA: C. 101, § 30. CRS 53: § 86-3-16. C.R.S. 1963: § 86-3-16. 38-22-117. Assignment of lien - failure to support lien. Any party claiming a lien may assign in writing his claim and lien to any other claimant or other person who shall thereupon have all the rights and remedies of the assignor for the purpose of filing and for the enforcement of any such lien by action under this article, and the assignment shall be a sufficient consideration as to all other parties for the purpose of such action. Such assignment may be made before or after the filing of the statement of lien. Any such claimant, whether as assignee or otherwise, may include all the liens he may possess against the same property in any such statement, and when more than one such claim is included in one such statement, one verification thereto shall be sufficient. Any person may file separate statements of two or more claims. If, on the trial of a cause under the provisions of this article, the proceedings will not support a lien, the plaintiff and all lien claimants entitled thereto may proceed to judgment as in an action on contract, and executions may issue as provided in such cases, and said judgment shall have all the rights of a judgment in a personal action. Source: L. 1899: p. 275, § 17. R.S. 08: § 4041. C.L. § 6458. CSA: C. 101, § 31. CRS 53: § 86-3-17. C.R.S. 1963: § 86-3-17. 38-22-118. Satisfaction of lien - failure to release. The claimant of any such lien, the statement of which has been filed, on the payment of the amount thereof, together with the costs of filing and recording such lien, and the acknowledgment of satisfaction, and accrued costs of suit in case a suit has been brought thereon, at the request of any person interested in the property charged therewith, shall enter or cause to be entered an acknowledgment of satisfaction of the same of record, and if he neglects or refuses to do so within ten days after the written request of any person so interested, he shall forfeit and pay to such person the sum of ten dollars per day for every day of such neglect or refusal, to be recovered in the same manner as other debts. A valid tender of payment, refused by any such claimant, shall be equivalent to a payment for the purpose of this section. Any such statement may be satisfied of record in the same manner as mortgages. Source: L. 1899: p. 275, § 18. R.S. 08: § 4042. C.L. § 6459. CSA: C. 101, § 32. CRS 53: § 86-3-18. C.R.S. 1963: § 86-3-18. 38-22-119. Agreement to waive - effect. (1) No agreement to waive, abandon, or refrain from enforcing any lien provided for by this article shall be binding except as between the parties to such contract. The provisions of this article shall receive a liberal construction in all cases. (2) An agreement to waive lien rights shall contain a statement, by the person waiving lien rights, providing in substance that all debts owed to any third party by the person waiving Colorado Revised Statutes 2019 Page 254 of 707 Uncertified Printout the lien rights and relating to the goods or services covered by the waiver of lien rights have been paid or will be timely paid. Source: L. 1899: p. 276, § 19. R.S. 08: § 4043. C.L. § 6460. CSA: C. 101, § 33. CRS 53: § 86-3-19. C.R.S. 1963: § 86-3-19. L. 2009: Entire section amended, (SB 09-137), ch. 145, p. 610, § 2, effective July 1. 38-22-120. Rules of civil procedure apply. The provisions of the Colorado rules of civil procedure, insofar as the same are applicable and not in conflict with the provisions of this article, shall be observed in proceedings to establish and enforce mechanics' liens. Source: L. 1899: p. 276, § 20. R.S. 08: § 4044. C.L. § 6461. CSA: C. 101, § 34. CRS 53: § 86-3-20. C.R.S. 1963: § 86-3-20. 38-22-121. Liens of surveyors and engineers. The provisions of this article shall apply to surveyors, civil and mining engineers doing any work of surveying or plotting of any mines, mining claims, lodes, or mineral deposits, and they shall have like lien and claim as other persons under the provisions of this article. Source: L. 1883: p. 227, § 8. G.S. § 2138. R.S. 08: § 4045. C.L. § 6462. CSA: C. 101, § 35. CRS 53: § 86-3-21. C.R.S. 1963: § 86-3-21. 38-22-122. Lien under two contracts - effect. In case the act of doing such work or of furnishing such laborers or materials is continuous, said lien shall attach as in other cases, even though such work is done or laborers or materials have been furnished under two or more contracts between the same parties. Source: L. 1883: p. 230, § 17. G.S. § 2147. R.S. 08: § 4046. C.L. § 6463. CSA: C. 101, § 36. CRS 53: § 86-3-22. C.R.S. 1963: § 86-3-22. L. 2000: Entire section amended, p. 210, § 11, effective August 2. 38-22-123. Payment to avoid invalid. No payment made by any owner to any contractor for the purpose of avoiding any anticipated lien of any subcontractor shall be valid; and if any person files either of said statements for a lien for a larger sum than is due or to become due, in fact, or in probability, as the case may be, with intent to cheat or defraud any other person, and that fact appears in any proceeding under this article, such person shall forfeit all rights to such lien under this article. Source: L. 1883: p. 235, § 29. G.S. § 2159. R.S. 08: § 4047. C.L. § 6464. CSA: C. 101, § 37. CRS 53: § 86-3-23. C.R.S. 1963: § 86-3-23. Colorado Revised Statutes 2019 Page 255 of 707 Uncertified Printout 38-22-124. Other remedies not barred. No remedy given in this article shall be construed as preventing any person from enforcing any other remedy which he otherwise would have had, except as otherwise provided in this article. In case of two or more owners, contractors, or subcontractors interested in the same contract, the rule of procedure shall be the same as in the case of one such. Source: L. 1883: p. 236, § 31. G.S. § 2161. R.S. 08: § 4048. C.L. § 6465. CSA: C. 101, § 38. CRS 53: § 86-3-24. C.R.S. 1963: § 86-3-24. 38-22-125. Bona fide purchaser. No lien, excepting those claimed by laborers or mechanics as defined in section 38-22-108 (1)(a), filed for record more than two months after completion of the building, improvement, or structure shall encumber the interest of any bona fide purchaser for value of real property, the principal improvement upon which is a single- or double-family dwelling, unless said purchaser at the time of conveyance has actual knowledge that the amounts due and secured by such lien have not been paid, or unless such lien statement has been recorded prior to conveyance, or unless a notice as provided in section 38-22-109 (10) has been filed within one month subsequent to completion or prior to conveyance, whichever is later; except that nothing in this section shall extend the time for recording lien statements as provided in section 38-22-109 (4), (5), and (10). For the purposes of this section, the dwelling shall be deemed complete upon conveyance and occupancy if not completed before. The lien for items of labor, work, or material which shall thereafter be furnished shall be effective and may be claimed within the time thereafter as provided in section 38-22-109 (4), (5), and (10), and their priority shall not be affected by this section. Source: L. 65: p. 854, § 5. C.R.S. 1963: § 86-3-25. L. 75: Entire section amended, p. 1424, § 4, effective October 1. 38-22-126. Disburser - notice - duty of owner and disburser. (1) For the purposes of this section, the word "disburser" means any lender who has agreed to make any loan to the owner or contractor, the proceeds of which are to be disbursed from time to time as work upon a structure or other improvement progresses, or any part of which is to be withheld until all or any part of such work is completed; or, any person who receives funds from any lender, contractor, or owner to be disbursed from time to time as work upon a structure or other improvement progresses, or any part of which is to be withheld until all or any part of such work is completed; or, any owner who has agreed to pay any sum to any contractor from time to time as work upon a structure or other improvement progresses, or any part of which is to be withheld until all or any part of such work is completed. (2) It is the duty of the disburser, prior to the first disbursement, to see that there has been recorded in the office of the county clerk and recorder of the county where the land to be improved is situated, a notice stating the name and address of the owner, the names, addresses, and telephone numbers of the principal contractor, if any, and the disburser, and the legal Colorado Revised Statutes 2019 Page 256 of 707 Uncertified Printout description of the land and its address, if any. One notice may include as many parcels as desired, providing that all the information is stated as to each parcel. Such notice shall be indexed by the county clerk and recorder under the name of the owner and each principal contractor as grantors and according to address. (3) It is the duty of any person upon ordering or contracting for any labor, services, machinery, tools, equipment, laborers, or materials to be used as provided in section 38-22-101, upon demand of the person from whom he or she is so ordering or with whom he or she is so contracting, to furnish to such person a statement of the names, addresses, and telephone numbers of the owner or reputed owner of the land to be improved, the principal contractor, if any, and the disburser, if any, as defined in subsection (1) of this section, together with a legal description or the address, if any, of the land to be improved. (4) Any lien claimant who is entitled to a lien under this article may give notice to the disburser stating the property by address or legal description, or by such other description as will identify the real property; the claimant's name, address, and telephone number; the person with whom he has contracted; and a general statement of his contract. (5) Such notice shall be in writing and shall be served upon the disburser by certified mail or by delivering the same personally to such disburser, or by leaving a copy at his residence or at his place of business with some person in charge. (6) Upon such notice being received by the disburser, it is the duty of the disburser, before disbursing any funds to the person designated in said notice with whom said claimant has contracted, to ascertain the amount due to the claimant on any disbursement date, and to pay such amount directly to the claimant out of any undisbursed funds available for and due to said person designated in said notice on such date; except that any amounts actually paid by the disburser to others for labor, services, machinery, tools, equipment, and laborers or materials performed, supplied, or furnished for such structure or improvement that are chargeable to said person designated in said notice shall not be deemed available for said person designated in said notice; and further except that if the amount claimed by said claimant is disputed by said person designated in said notice, the disburser may impound such amount until the amount due is settled by agreement or final judicial determination. (7) If the disburser fails to comply with subsection (6) of this section and the said claimant suffers loss by reason of said failure the disburser shall be liable to said claimant for the amount which the disburser should have paid claimant to the extent of claimant's loss. Source: L. 65: p. 854, § 5. C.R.S. 1963: § 86-3-26. L. 2000: (3) and (6) amended, p. 210, § 12, effective August 2. 38-22-127. Moneys for lien claims made trust funds - disbursements - penalty. (1) All funds disbursed to any contractor or subcontractor under any building, construction, or remodeling contract or on any construction project shall be held in trust for the payment of the subcontractors, laborer or material suppliers, or laborers who have furnished laborers, materials, services, or labor, who have a lien, or may have a lien, against the property, or who claim, or Colorado Revised Statutes 2019 Page 257 of 707 Uncertified Printout may claim, against a principal and surety under the provisions of this article and for which such disbursement was made. (2) This section shall not be construed so as to require any such contractor or subcontractor to hold in trust any funds which have been disbursed to him or her for any subcontractor, laborer or material supplier, or laborer who claims a lien against the property or claims against a principal and surety who has furnished a bond under the provisions of this article if such contractor or subcontractor has a good faith belief that such lien or claim is not valid or if such contractor or subcontractor, in good faith, claims a setoff, to the extent of such setoff. (3) If the contractor or subcontractor has furnished a performance or payment bond or if the owner of the property has executed a written release to the contractor or subcontractor, he need not furnish any such bond or hold such payments or disbursements as trust funds, and the provisions of this section shall not apply. (4) Every contractor or subcontractor shall maintain separate records of account for each project or contract, but nothing contained in this section shall be construed as requiring a contractor or subcontractor to deposit trust funds from a single project in a separate bank account solely for that project so long as trust funds are not expended in a manner prohibited by this section. (5) Any person who violates the provisions of subsections (1) and (2) of this section commits theft, as defined in section 18-4-401, C.R.S. Source: L. 75: Entire section added, p. 1420, § 2, effective October 1. L. 2000: (1) and (2) amended, p. 211, § 13, effective August 2. 38-22-128. Excessive amounts claimed. Any person who files a lien under this article for an amount greater than is due without a reasonable possibility that said amount claimed is due and with the knowledge that said amount claimed is greater than that amount then due, and that fact is shown in any proceeding under this article, shall forfeit all rights to such lien plus such person shall be liable to the person against whom the lien was filed in an amount equal to the costs and all attorney's fees. Source: L. 75: Entire section added, p. 1421, § 3, effective October 1. 38-22-129. Principal contractor may provide bond prior to commencement of work. (1) Except as provided in subsection (4) of this section, the provisions of section 38-22-101 (1) shall not apply if, at the commencement of any work upon any construction project for the improvement of real property as described in section 38-22-101 (1), a performance bond and a labor and materials payment bond, each in an amount equal to one hundred fifty percent of the contract price, are executed by the principal contractor and one or more corporate sureties authorized and qualified to do business in this state, for the protection of all contractors, subcontractors, materialmen, and laborers supplying labor, laborers, or material in the Colorado Revised Statutes 2019 Page 258 of 707 Uncertified Printout prosecution of the work on such construction project for the use of each contractor, subcontractor, materialman, or laborer. (2) All subcontractors, materialmen, mechanics, and others who would otherwise be entitled to a lien under the provisions of section 38-22-101 (1) shall have a right of action directly against the principal contractor and his surety for the full amount due. Such action shall be brought within six months after completion of the last work on such project. (3) In order to be effective, a notice of such bond shall be filed with the county clerk and recorder of the county wherein such project is situate prior to the commencement of any work on the project and shall be indexed according to both the street address and the legal description of the property to be improved. The principal contractor shall post a notice on the property that notice of such bond has been filed with the county clerk and recorder and shall make available copies of the bond to every contractor, subcontractor, materialman, mechanic, or laborer upon request. (4) If any claimant files for record a lien statement or other notice, pursuant to section 38-22-109, such lien shall be deemed released upon the filing for record of a notice executed by both the principal and all sureties acknowledging the existence of the bond furnished for such project and that said lien claimant is entitled to claim the benefits of said bond. Such acknowledgment shall be executed by the principal and sureties upon demand of the owners or any person filing a lien statement. Said notice may be delivered personally to the surety or its agent and the principal or his agent or may be mailed by certified or registered mail. If the principal and all sureties on any such bonds fail or refuse to execute and record such acknowledgment within thirty days after written demand is made upon them, all lien claimants shall be entitled to enforce their lien claims in the same manner as if no bond had been filed as provided in subsection (1) of this section. (5) In the event that any corporate surety on any bond filed pursuant to the provisions of subsection (1) of this section becomes subject to an order for relief under the federal bankruptcy code of 1978, title 11 of the United States Code, is the subject of any state or federal corporate reorganization proceedings, makes any assignment for the benefit of creditors, or otherwise is unable to meet its financial obligations as they become due, the provisions of this section shall not apply, and any lien claimant shall be entitled to enforce such lien claim in the same manner as if no bond had been filed as provided in subsection (1) of this section. Source: L. 75: Entire section added, p. 1424, § 5, effective October 1. L. 80: (5) amended, p. 786, § 14, effective June 5. L. 2000: (1) amended, p. 211, § 14, effective August 2. 38-22-130. Payment of claims by surety. (1) Subcontractors, materialmen, mechanics, and others who have claims aggregating two thousand dollars or less each on construction projects for the improvement of real property as described in section 38-22-101 (1) for which a bond was executed pursuant to section 38-22-129 shall serve upon the principal contractor and his surety an affidavit, supported by all reasonably available documentary evidence, that a claimant has furnished labor or materials used or performed in the prosecution of the work on Colorado Revised Statutes 2019 Page 259 of 707 Uncertified Printout such project, that he has been unpaid therefor, and the amount of such claim. If after forty-five days such affidavit remains uncontroverted, such surety shall pay to such claimant forthwith the full value of his claim. (2) Service of such affidavit may be accomplished by certified or registered mail, by personal delivery to such person, or by leaving a copy at his residence or at his place of business with some person in charge. Source: L. 75: Entire section added, p. 1425, § 5, effective October 1. 38-22-131. Substitution of bond allowed. (1) Whenever a mechanic's lien has been filed in accordance with this article, the owner, whether legal or beneficial, of any interest in the property subject to the lien may, at any time, file with the clerk of the district court of the county wherein the property is situated a corporate surety bond or any other undertaking which has been approved by a judge of said district court. (2) Such bond or undertaking plus costs allowed to date shall be in an amount equal to one and one-half times the amount of the lien plus costs allowed to date and shall be approved by a judge of the district court with which such bond or undertaking is filed. (3) The bond or undertaking shall be conditioned that, if the lien claimant shall be finally adjudged to be entitled to recover upon the claim upon which his lien is based, the principal or his sureties shall pay to such claimant the amount of his judgment, together with any interest, costs, and other sums which such claimant would be entitled to recover upon the foreclosure of the lien. Source: L. 75: Entire section added, p. 1425, § 5, effective October 1. 38-22-132. Lien to be discharged. Notwithstanding any other provision of this article or section 38-35-110, upon court approval of a bond or undertaking as provided in section 38-22131, and upon the issuance and recording of a certificate of release as specified in this section, the lien against the property, and any notice of lis pendens or notice of the commencement of any action relating to such lien, shall be immediately discharged and released in full; the real property described in such bond or undertaking shall be forever released from the lien, from any notice of lis pendens or notice of the commencement of any action relating to such lien, and from any action brought to foreclose such lien; the bond or undertaking shall be substituted; and no notice of lis pendens or notice of the commencement of any action relating to such lien or any action for the enforcement or foreclosure thereof shall thereafter be recorded against the property. The clerk of the district court with which such bond or undertaking has been filed shall issue a certificate of release which shall be recorded in the office of the clerk and recorder of the county wherein the original mechanic's lien was filed, and the certificate of release shall show that the property has been forever released from the lien, from any notice of lis pendens or notice of the commencement of any action relating to such lien, and from any action brought to foreclose such lien. Colorado Revised Statutes 2019 Page 260 of 707 Uncertified Printout Source: L. 75: Entire section added, p. 1426, § 5, effective October 1. L. 2011: Entire section amended, (SB 11-264), ch. 279, p. 1250, § 2, effective July 1. Cross references: For the legislative declaration in the 2011 act amending this section, see section 1 of chapter 279, Session Laws of Colorado 2011. 38-22-133. Action to be brought on bond or undertaking. When a bond or undertaking is filed as provided in section 38-22-131, the person filing the original mechanic's lien may bring an action upon the said bond or undertaking. Such action shall be commenced within the time allowed for the commencement of an action upon foreclosure of the lien, and the statute of limitations applicable to a lien foreclosure shall apply to the action upon the bond or undertaking as it would had no bond or undertaking been filed. Source: L. 75: Entire section added, p. 1426, § 5, effective October 1. ARTICLE 22.5 Commercial Real Estate Brokers Commission Security Act 38-22.5-101. Short title. This article shall be known and may be cited as the "Commercial Real Estate Brokers Commission Security Act". Source: L. 2010: Entire article added, (HB 10-1288), ch. 179, p. 642, § 1, effective August 11. 38-22.5-102. Definitions. As used in this article 22.5, unless the context otherwise requires: (1) "Agreement" means a written listing agreement, written compensation agreement, or other written agreement between a real estate broker and an owner that grants the real estate broker a right to compensation for professional services in connection with leasing or attempting to lease commercial real estate. (2) "Commercial real estate" means any real property other than real property containing one to four residential units. "Commercial real estate" does not include single-family or multifamily residential units including condominiums, townhouses, or homes in a subdivision when such real estate is sold, leased, or otherwise conveyed on a unit-by-unit basis even though the units may be part of a larger building or parcel of real property containing more than four residential units. (3) "Owner" means the owner of record of real estate and includes an agent of such owner. (4) "Real estate broker" has the meaning set forth in section 12-10-201 (6). Colorado Revised Statutes 2019 Page 261 of 707 Uncertified Printout (5) "Renewal commission" means an additional commission that may become payable to a real estate broker if a lease is later renewed or modified to expand the leased premises or extend the lease term. Source: L. 2010: Entire article added, (HB 10-1288), ch. 179, p. 642, § 1, effective August 11. L. 2019: IP and (4) amended, (HB 19-1172), ch. 136, p. 1722, § 230, effective October 1. 38-22.5-103. Brokers' lien for compensation for services - requirements. (1) A real estate broker shall have a lien on commercial real estate, in the amount of the compensation as set forth in the agreement, if: (a) Such real estate is listed with the real estate broker under terms of an agreement or is the subject of an agreement; and (b) The real estate broker has provided licensed services that resulted in the procuring of a person or entity who has leased any interest in the commercial real estate in accordance with the agreement. (2) The general assembly intends that nothing in this section is subject to a prospective waiver by either party without consideration acceptable to the parties to the waiver. (3) Notwithstanding subsection (1) of this section, commercial real estate is not subject to a real estate brokers' lien to enforce the payment of a renewal commission if the property is conveyed to a bona fide purchaser before the recording of a notice of lien pursuant to section 3822.5-104. Source: L. 2010: Entire article added, (HB 10-1288), ch. 179, p. 643, § 1, effective August 11. 38-22.5-104. Notice of intent - lien notice - service - contents - filing. (1) The real estate broker shall serve a notice of intent to record a notice of lien upon the owner at least thirty days before recording the notice of lien with the county clerk and recorder of the county in which the commercial real estate is located. Such notice of intent shall be served by personal service or by registered or certified mail, return receipt requested, addressed to the last-known address of the owner or the owner's agent, at least thirty days before recording of the notice of lien with the county clerk and recorder. If the notice of intent is served upon the owner's agent, a copy of the notice shall also be served upon the owner of record by personal service or by registered or certified mail, return receipt requested, addressed to the owner's last-known address, at least thirty days before recording of the notice of lien with the county clerk and recorder. (2) The notice of lien shall state the name of the real estate broker, the name of the owner, a legal description of the property upon which the lien is being claimed, the amount for which the lien is claimed, and the real estate license number of the real estate broker. The real Colorado Revised Statutes 2019 Page 262 of 707 Uncertified Printout estate broker shall sign the notice of lien and attest that the information contained in the notice is true and accurate as to his or her knowledge and belief. Source: L. 2010: Entire article added, (HB 10-1288), ch. 179, p. 643, § 1, effective August 11. 38-22.5-105. Mediation period. The real estate broker shall make a good faith effort to attempt to resolve the nonpayment of the commission through mediation. The mediator's recommended resolution is not binding unless the parties so agree in writing. The parties shall jointly appoint an acceptable mediator and shall share equally in the cost of the mediation. Mediation shall commence when a written notice requesting mediation is delivered by one party to the other at the party's last-known address, and, unless otherwise agreed, the mediation shall terminate if the entire dispute is not resolved within thirty days thereafter. This section does not impair the ability of a real estate broker to record a notice of lien if a resolution is not agreed upon by both parties. Source: L. 2010: Entire article added, (HB 10-1288), ch. 179, p. 644, § 1, effective August 11. 38-22.5-106. When lien attaches - effect of payment by installments - affirmative defense. (1) The lien created by section 38-22.5-103 attaches to an interest in commercial real estate when all of the following conditions are met: (a) The real estate broker either: (I) Procures a person or entity who leases the property in accordance with the agreement; or (II) Has otherwise earned a fee or commission in accordance with the agreement; (b) The real estate broker serves a notice of intent to record a notice of lien upon the owner or owner's agent as provided in section 38-22.5-104; (c) The real estate broker makes a good faith attempt to obtain settlement through mediation as provided in section 38-22.5-105; and (d) At least thirty days after serving the owner with notice of intent to record a notice of lien, but not more than ninety days after the tenant takes possession of the leased property or ninety days after the compensation is due under the agreement, whichever is later, the real estate broker records a notice of the lien in the office of the clerk and recorder of the county in which the commercial real estate is located. (2) Notwithstanding paragraph (d) of subsection (1) of this section: (a) If payment is due in installments and a portion of the payment is due after the leasing of any interest in commercial real estate, a claim for a lien for only that portion may be recorded within ninety days after the tenant takes possession of the leased property or ninety days after the compensation is due under the agreement, whichever is later; and Colorado Revised Statutes 2019 Page 263 of 707 Uncertified Printout (b) The lien shall be effective as a lien against the commercial real estate only to the extent moneys are still owed to the real estate broker by the owner. Any claims for a lien for future installment payments shall only be recorded within ninety days after those installment payments become due in accordance with the agreement. (3) The lien attaches for purposes of this section when the claim for lien is recorded, and shall not relate back to the date of the agreement. (4) Notwithstanding any provision of this article to the contrary, it shall be an affirmative defense in an action to foreclose a lien pursuant to this article that the owner has paid any compensation owed to the listing broker in an amount sufficient to satisfy the contractual and legal obligations of the owner, including compensation to the tenant's broker. Source: L. 2010: Entire article added, (HB 10-1288), ch. 179, p. 644, § 1, effective August 11. 38-22.5-107. Conditions on validity of lien - subsequent service of notice to owner action commenced within six months. (1) No lien claimed by virtue of this article shall hold the property longer than ten days after the recording of the notice of lien under section 38-22.5104 unless the real estate broker provides a copy of the notice of lien to the owner or owner's agent by personal service or by registered or certified mail, return receipt requested, addressed to the last-known address of such person, within ten days after recording the notice of lien. (2) No lien claimed by virtue of this article shall hold the property longer than six months after the recording of the notice of lien under section 38-22.5-104 unless an action to foreclose the lien has been commenced within that time and unless also a notice stating that such action has been commenced is filed for record within that time in the office of the county clerk and recorder of the county in which the property is situated. Where two or more liens under this article are claimed of record against the same property, the commencement of any action and the filing of the notice of the commencement of such action within that time by any one or more of such lien claimants in which action all the lien claimants as appear of record are made parties, either plaintiff or defendant, shall be sufficient. Source: L. 2010: Entire article added, (HB 10-1288), ch. 179, p. 645, § 1, effective August 11. 38-22.5-108. Priority of liens. The priority of a lien created under this article in relation to other interests in the subject property shall be determined in accordance with section 38-35109. Source: L. 2010: Entire article added, (HB 10-1288), ch. 179, p. 645, § 1, effective August 11. Colorado Revised Statutes 2019 Page 264 of 707 Uncertified Printout 38-22.5-109. Satisfaction or release of brokers' lien - written demand by owner obligation to record. If a real estate brokers' lien has been recorded pursuant to section 38-22.5106 and the indebtedness has been paid in full or the lien is not valid and enforceable in accordance with this article and other applicable law, the real estate broker shall acknowledge satisfaction or release of such lien in writing within ten days after receiving written demand from the owner and shall record a written release or satisfaction of the lien in the office of the clerk and recorder of the county in which the property is located. Source: L. 2010: Entire article added, (HB 10-1288), ch. 179, p. 645, § 1, effective August 11. 38-22.5-110. Spurious liens. Section 38-35-204 applies to liens asserted pursuant to this article. Source: L. 2010: Entire article added, (HB 10-1288), ch. 179, p. 646, § 1, effective August 11. 38-22.5-111. Substitution of bond allowed - lien to be discharged. (1) Whenever a brokers' lien has been recorded in accordance with this article, the owner of any interest in the property subject to the lien may, at any time, file with the clerk of the district court of the county wherein the property is situated a corporate surety bond or similar financial assurance. Such bond or assurance shall be in an amount equal to one and one-half times the amount of the lien plus costs allowed to date and is subject to approval by a judge of the district court with which such bond or assurance is filed. (2) The bond or assurance shall be conditioned that, if the lien claimant is finally adjudged to be entitled to recover on the claim upon which the lien is based, the principal or surety shall pay to such claimant the amount of the judgment, including any interest, costs, or other sums to which the claimant would be entitled upon foreclosure of the lien. (3) Notwithstanding any other provision of this article or section 38-35-110, upon the filing of a bond or undertaking as provided in this section, the lien against the property, and any notice of lis pendens relating to such lien or notice of the commencement of any action relating to such lien, shall be immediately discharged and released in full; the real property described in such bond or undertaking shall be forever released from the lien, from any notice of lis pendens or notice of the commencement of any action relating to such lien, and from any action brought to foreclose the lien; the bond or undertaking shall be substituted; and no notice of lis pendens or notice of the commencement of any action relating to such lien or any action for the enforcement or foreclosure thereof shall thereafter be recorded against the property. The clerk of the district court with which the bond or undertaking has been filed shall issue a certificate of release, which shall be recorded in the office of the clerk and recorder of the county in which the original real estate brokers' lien was filed, and the certificate of release shall show that the property has been forever released from the lien, from any notice of lis pendens relating to such lien, from any Colorado Revised Statutes 2019 Page 265 of 707 Uncertified Printout notice of the commencement of any action relating to such lien, and from any action brought to foreclose such lien. Source: L. 2010: Entire article added, (HB 10-1288), ch. 179, p. 646, § 1, effective August 11. L. 2011: (3) amended, (SB 11-264), ch. 279, p. 1250, § 3, effective July 1. Cross references: For the legislative declaration in the 2011 act amending subsection (3), see section 1 of chapter 279, Session Laws of Colorado 2011. ARTICLE 23 Lien on Ditches 38-23-101. Liability of co-owners. All co-owners of unincorporated irrigating ditches shall pay for the necessary cleaning and repairing of such ditches in the proportion that their respective interests bear to the total expenses incurred in said cleaning and repairing. Any such co-owner may perform labor in cleaning and repairing such ditch equivalent in value to his share of such expenses. No co-owner shall be held liable for cleaning or repairing any ditch below the point from which he takes his portion of the water. Source: L. 1893: p. 312, § 1. R.S. 08: § 4051. C.L. § 6468. CSA: C. 101, § 41. CRS 53: § 86-4-1. C.R.S. 1963: § 86-4-1. 38-23-102. Request to clean ditch. Upon the failure of any one or more of several coowners, upon written request of the owners of one-third of the carrying capacity or board of directors, to assist in cleaning and repairing such ditch, the other coowners shall proceed to clean and repair the same and shall keep an accurate account of the cost and expenses incurred and upon the completion of such work shall deliver to each of such delinquent coowners or his agent, lessee, or legal representative an itemized statement of such costs and expenses. Source: L. 1893: p. 312, § 2. R.S. 08: § 4052. C.L. § 6469. CSA: C. 101, § 42. CRS 53: § 86-4-2. C.R.S. 1963: § 86-4-2. 38-23-103. Lien of co-owner against delinquent. The co-owners of any such ditch who clean and repair the same, as specified in section 38-23-102, shall have a lien upon the interest in such ditch owned by such delinquent co-owner for his proportion of such cost and expenses. Source: L. 1893: p. 312, § 3. R.S. 08: § 4053. C.L. § 6470. CSA: C. 101, § 43. CRS 53: § 86-4-3. C.R.S. 1963: § 86-4-3. Colorado Revised Statutes 2019 Page 266 of 707 Uncertified Printout 38-23-104. Claimant to file verified statement. Any person wishing to avail himself of the provisions of this article shall file for record in the office of the county clerk and recorder of the county wherein the ditch to be affected by the lien is situated, within thirty days after the completion of such work, a statement addressed to the owner of the interest upon which such lien is claimed, specifying the name of the ditch and the extent of the interest in the same upon which such lien is claimed; the date upon which the work was commenced and the date it was completed; the total amount expended on such ditch and the amount due from such delinquent coowners. Said statement shall be signed and verified upon oath by a claimant. Source: L. 1893: p. 313, § 4. R.S. 08: § 4054. C.L. § 6471. CSA: C. 101, § 44. CRS 53: § 86-4-4. C.R.S. 1963: § 86-4-4. 38-23-105. Lien may be assigned - effect. Any party claiming a lien under the provisions of this article may assign in writing his claim and lien to any person, who shall thereafter have all the rights and remedies of the assignor. Source: L. 1893: p. 313, § 5. R.S. 08: § 4055. C.L. § 6472. CSA: C. 101, § 45. CRS 53: § 86-4-5. C.R.S. 1963: § 86-4-5. 38-23-106. Lien duration - action prolongs. No lien claimant by virtue of this article shall hold the property longer than six months after filing the statement described in section 3823-104 unless an action is commenced within that time to enforce the same. Source: L. 1893: p. 313, § 6. R.S. 08: § 4056. C.L. § 6473. CSA: C. 101, § 46. CRS 53: § 86-4-6. C.R.S. 1963: § 86-4-6. 38-23-107. Judgment - execution. Actions to enforce liens claimed by virtue of this article shall be commenced and prosecuted in accordance with the procedure in other civil actions in the state of Colorado. Each party who establishes his claim under this article shall have a judgment against the party personally liable to him for the full amount of his claim so established and shall have a lien decreed and determined upon the ditch interest to which his lien has attached to the extent of his said claims; but no judgment shall exceed the interest of the party in such ditch, nor shall execution issue against other than his interest in said ditch. Source: L. 1893: p. 313, § 7. R.S. 08: § 4057. C.L. § 6474. CSA: C. 101, § 47. CRS 53: § 86-4-7. C.R.S. 1963: § 86-4-7. 38-23-108. Sale - right of redemption. The court shall cause such ditch interest to be sold in satisfaction of said lien and costs, as in the case of foreclosure of mortgages and in the manner and form provided for sales on executions issued out of courts of record, and the owner Colorado Revised Statutes 2019 Page 267 of 707 Uncertified Printout and creditors shall have a right to redeem, as is provided for in cases of sales of real estate on execution. Source: L. 1893: p. 313, § 8. R.S. 08: § 4058. C.L. § 6475. CSA: C. 101, § 48. CRS 53: § 86-4-8. C.R.S. 1963: § 86-4-8. 38-23-109. Costs. The plaintiff if successful shall also recover all other costs and expenses incurred in claiming and enforcing his lien. Source: L. 1893: p. 314, § 9. R.S. 08: § 4059. C.L. § 6476. CSA: C. 101, § 49. CRS 53: § 86-4-9. C.R.S. 1963: § 86-4-9. 38-23-110. Releasing lien - penalty for delay. The claimant of any such lien, the statement of which has been recorded, on the payment of the amount claimed together with costs of making and recording such statement and costs of satisfaction, at the request of any person interested in the ditch interest charged therewith, shall enter of record satisfaction of the same, and if he neglects or refuses to do so within ten days after such request, he shall forfeit and pay to the person making such request the sum of ten dollars for every day of such neglect or refusal, to be recovered in the same manner as other debts. Any such statement may be canceled on the margin of the record by an acknowledgment of satisfaction over the signature of the claimant or an agent authorized in writing. Source: L. 1893: p. 314, § 10. R.S. 08: § 4060. C.L. § 6477. CSA: C. 101, § 50. CRS 53: § 86-4-10. C.R.S. 1963: § 86-4-10. ARTICLE 24 Lien on Wells and Equipment Law reviews: For article, "Oil and Gas Mechanics' Liens Revisited", see 15 Colo. Law. 1822 (1986); for article, "Acquiring Producing Oil and Gas Properties from a Financially Distressed Seller", see 58 U. Colo. L. Rev. 631 (1988). 38-24-101. Property subject to lien. Every person, firm, or corporation, whether as contractor, subcontractor, materialman, or laborer, who performs labor upon or furnishes machinery, material, fuel, explosives, power, or supplies for sinking, repairing, altering, or operating any gas well, oil well, or other well or for constructing, repairing, or operating any oil derrick, oil tank, oil pipeline or water pipeline, pump or pumping station, transportation or communication line, or gasoline plant and refinery by virtue of a contract, express or implied, with the owner or lessee of any interest in real estate or with the trustee, agent, or receiver of any such owner, part owner, or lessee shall have a lien to secure the payment thereof upon the Colorado Revised Statutes 2019 Page 268 of 707 Uncertified Printout properties mentioned belonging to the party contracting with the lien claimants, and upon the machinery, materials, and supplies so furnished, and upon any well upon and in which such machinery, materials, and supplies have been placed and used, and upon all other wells, buildings, and appurtenances, and the interest, leasehold, or otherwise, of such owner, part owner, or lessee in the lot or land upon which said improvements are located, or to which they may be removed, to the extent of the right, title, and interest of the owner, part owner, or lessee, at the time the work was commenced or machinery, materials, and supplies were begun to be furnished by the lien claimant or by the contractor under the original contract; and such lien shall extend to any subsequently acquired interest of any such owner, part owner, or lessee. Source: L. 29: p. 435, § 1. CSA: C. 101, § 51. CRS 53: § 86-5-1. C.R.S. 1963: § 86-51. 38-24-102. Other property subject to lien. Every person, firm, or corporation who performs labor or furnishes machinery, material, fuel, explosives, or supplies to a contractor or subcontractor shall have a lien upon the properties and premises mentioned in section 38-24-101 to the same extent and in the same manner as the original contractor for the amount due for such machinery, material, fuel, explosives, or supplies furnished or labor performed. All liens created by virtue of this article in any particular case shall be of equal rank and validity, except liens for labor which shall be preferred. Source: L. 29: p. 436, § 2. CSA: C. 101, § 52. CRS 53: § 86-5-2. C.R.S. 1963: § 86-52. 38-24-103. Security interest invalid - when. No chattel mortgage or security interest shall be valid as against any person, firm, or corporation entitled to a lien under the provisions of this article; but no mortgage, lien, or other encumbrance existing and recorded as provided by law at the time of the inception of the lien provided for in this article shall be affected thereby. Source: L. 29: p. 436, § 3. CSA: C. 101, § 53. CRS 53: § 86-5-3. C.R.S. 1963: § 86-53. 38-24-104. Lien statement - when filed. (1) Every person wishing to avail himself of the benefits of this article must file with the county clerk and recorder of the county in which the property or premises mentioned in this article are situated, and within six months after the machinery, materials, fuel, explosives, or supplies have been furnished or the labor performed, a statement containing: (a) A just and true account of the amount due him after allowing all credits; (b) A description of the property to be charged with such lien sufficient for its proper identification; and (c) A verification by affidavit. Colorado Revised Statutes 2019 Page 269 of 707 Uncertified Printout (2) No error in the account shall effect the validity of the lien by the inclusion of items erroneously taken in, if such items can be identified. An open running account shall constitute a single contract, and in such case the lien shall relate back to the first item of material furnished or labor performed, as the case may be, and the six-month filing period shall begin to run for the whole account from the date of the last item. Source: L. 29: p. 437, § 4. CSA: C. 101, § 54. CRS 53: § 86-5-4. C.R.S. 1963: § 86-54. 38-24-105. Action commenced within six months. Every person, firm, or corporation filing a statement as provided in section 38-24-104 and claiming a lien under this article shall commence suit thereon in the district court of the county in which the statement is filed not later than six months after the date of such filing, and the lien shall remain in force until the final determination of such suit. Costs shall be divided according to the justice of the case. Source: L. 29: p. 437, § 5. CSA: C. 101, § 55. CRS 53: § 86-5-5. C.R.S. 1963: § 86-55. 38-24-106. Perfecting of lien on removed property - when. Whenever any person removes any property subject to a lien under this article out of the county in which the statement has been filed, the lien claimant may file, within thirty days after receiving notice of such removal, with the county clerk and recorder of the county to which such property has been removed, an inventory of said property so removed, showing the amount due and unpaid thereon, which inventory shall be filed in the lien records of such county. Such filing shall operate as a notice of the existence of the lien, and it shall thereupon attach to and extend to the leasehold and other premises, properties, and appurtenances with which said property so removed has been put in use or to which it has attached if it is of the kind and character enumerated in section 38-24-101. If said leasehold, premises, properties, and appurtenances belong to some party other than the party originally contracting with the lien claimant, the lien shall be limited to the property and chattels so removed. The benefits of this section as regards removal shall apply even though such removal is to another locality in the same county. Source: L. 29: p. 437, § 6. CSA: C. 101, § 56. CRS 53: § 86-5-6. C.R.S. 1963: § 86-56. 38-24-107. Lienholder's consent in removal or sale. When the lien provided in this article attaches to the property covered thereby in the manner indicated in this article, no one shall sell or remove the property subject to said lien, or cause the same to be removed from such lands or premises, or otherwise sell or dispose of the same without the written consent of the lien claimant under this article. In the event of any violation of the provisions of this section, the lien claimant shall be entitled to the possession of the property to which said lien has attached, Colorado Revised Statutes 2019 Page 270 of 707 Uncertified Printout wherever the same may be found, and shall hold the same pending the disposition of the action provided for in this article. Source: L. 29: p. 438, § 7. CSA: C. 101, § 57. CRS 53: § 86-5-7. C.R.S. 1963: § 86-57. 38-24-108. Penalty for removing property. Any person who removes or causes to be removed any property covered by the lien provided for in this article from the place where such property was located when such lien was filed, without the written consent of the lien claimant, is guilty of theft of such property and, upon conviction thereof, shall be punished accordingly. Source: L. 29: p. 439, § 8. CSA: C. 101, § 58. CRS 53: § 86-5-8. C.R.S. 1963: § 86-58. Cross references: For theft, see part 4 of article 4 of title 18. 38-24-109. Assignment of lien. Any person, firm, or corporation entitled to a lien under this article may assign his claim before or after filing the lien statement provided for in section 38-24-104, and in such event the assignee shall be clothed with all the rights inherent by virtue of this article in the assignor. Source: L. 29: p. 439, § 9. CSA: C. 101, § 59. CRS 53: § 86-5-9. C.R.S. 1963: § 86-59. 38-24-110. Provisions of article cumulative. The provisions of this article are cumulative and in addition to all lien rights and remedies already provided by the laws of this state. Source: L. 29: p. 439, § 10. CSA: C. 101, § 60. CRS 53: § 86-5-10. C.R.S. 1963: § 865-10. 38-24-111. Liability against owner of land. Nothing in this article shall fix a liability against the owner of the land, except when such owner is a party to the contract with the lien claimant. Source: L. 29: p. 439, § 11. CSA: C. 101, § 61. CRS 53: § 86-5-11. C.R.S. 1963: § 865-11. ARTICLE 24.5 Harvesters' Liens Colorado Revised Statutes 2019 Page 271 of 707 Uncertified Printout 38-24.5-101. Definitions. As used in this article, unless the context otherwise requires: (1) "Harvester" means any person who gathers in grain or other crops by manual or mechanical threshing, swathing, or picking but shall not include an owner. (2) "Harvesting" means the manual or mechanical threshing, swathing, cutting, or picking of grain or other crops, including any services rendered and labor performed in connection therewith. (3) "Owner" means any person, including any guardian or minor, married person, company, firm, association, or corporation, for whose use or benefit the grain or other crops are harvested. Source: L. 89: Entire article added, p. 1442, § 1, effective July 1. 38-24.5-102. Who may have lien - amount. (1) Every harvester shall have a lien upon the grain and other crops harvested for and on account of harvesting. A lien on grain or other crops shall be charged for at the prevailing price for a particular locality in which such grain or other crop is harvested after notice has been given and a lien has been filed within the time provided under section 38-24.5-103. (2) If the prevailing price for harvesting is disputed by the harvester or the owner, the matter may be submitted to arbitration under the provisions of rule 109 of the Colorado rules of civil procedure. Source: L. 89: Entire article added, p. 1442, § 1, effective July 1. Editor's note: Rule 109, C.R.C.P., referenced in subsection (2), was repealed March 17, 1994. 38-24.5-103. How lien obtained - lien statement. (1) Every person intending to avail himself or herself of the benefits of this article shall serve on the owner by certified or registered mail, return receipt requested, or by personal service, within ten days after completing the harvesting, a notice that, within twenty days, a lien, as specified in section 38-24.5-102, shall be claimed, and, within said twenty days, such person shall file in the same locations for farm products and crops as provided in section 4-9-501, C.R.S., a statement containing a just and true account of the amount due him or her for such harvesting, after allowing all just credits and offsets, and containing a correct description of the grain or other crops to be charged with such lien, the price agreed upon for such harvesting, the name of the person, firm, or corporation for whom such harvesting was performed, a legal description of the lands upon which said grain or other crops were raised, a description of the legal subdivision of land upon which said grain or other crops are stored and, if said grain or other crops are stored in a storage facility, the locality of the storage facility, which statement of facts shall be verified by affidavit of the person claiming such lien or his or her duly authorized agent or attorney having knowledge of the facts, and a copy of the notice of intent to file a lien and an affidavit of service or mailing thereof. Any Colorado Revised Statutes 2019 Page 272 of 707 Uncertified Printout immaterial error or mistake in the account or description of the grain or other crops or of the property upon which it was raised shall not invalidate such lien. (2) If the grain or other crops so harvested will be hauled directly to the storage facility or to a purchaser, the person claiming the lien pursuant to subsection (1) of this section shall also serve written notice upon the owner of such storage facility or other private purchaser of his intent to claim and file a lien upon said grain or other crops for harvesting pursuant to section 38-24.5-102 within the time frames set forth in this section. Source: L. 89: Entire article added, p. 1443, § 1, effective July 1. L. 2001: (1) amended, p. 1447, § 44, effective July 1. 38-24.5-104. Filing with county clerk and recorder. The county clerk and recorder shall endorse upon a lien the day of its filing and make an abstract thereof in a book kept and indexed by him for that purpose containing the date of the filing, the name of the person claiming the lien, the amount thereof, the name of any other person against whose property the lien is filed, and a description of the property to be charged with the same. Source: L. 89: Entire article added, p. 1443, § 1, effective July 1. 38-24.5-105. Priority. (1) The lien for harvesting specified in section 38-24.5-102 shall not be prior to nor have precedence over any mortgage, encumbrance, security interest, or other valid lien upon the grain or other crops if such other mortgage, encumbrance, security interest, or valid lien attached or was filed prior to the filing of a lien under this article. (2) A person seeking to perfect a lien under this article shall comply with article 9.5 of title 4, C.R.S., and section 1324 of the federal "Food Security Act of 1985", in order to perfect a lien under this article. Source: L. 89: Entire article added, p. 1443, § 1, effective July 1. Cross references: For the federal "Food Security Act of 1985", see Pub.L. 99-198. 38-24.5-106. Parties. Any person interested in the matter in controversy or the property to be charged with the lien or having a lien thereon may be made a party to an action for the foreclosure thereof. Source: L. 89: Entire article added, p. 1443, § 1, effective July 1. 38-24.5-107. Limitations of actions. Any action for the foreclosure and enforcement of a lien authorized in section 38-24.5-102 shall be commenced, and a notice of commencement of action filed in the same locations as the lien statements, within three months from the filing of the lien and shall be filed in the district court for the county in which the lien authorized in Colorado Revised Statutes 2019 Page 273 of 707 Uncertified Printout section 38-24.5-103 is filed. The failure to file such an action and notice on a timely basis shall render the lien null and void. Source: L. 89: Entire article added, p. 1443, § 1, effective July 1. 38-24.5-108. Acknowledgment of satisfaction of lien - penalty. Whenever the indebtedness which is a lien upon any such grain or other crops is paid and satisfied, it is the duty of the lienor to acknowledge satisfaction thereof and to discharge the lien of record; and, if any lienor fails to acknowledge satisfaction and discharge said lien within thirty days after being requested to do so by a person having a property interest in such grain or other crops, he is liable to any person injured thereby in the amount of such injury and the costs of the action. Source: L. 89: Entire article added, p. 1444, § 1, effective July 1. ARTICLE 24.7 Transportation Fuel Distributors' Tax Liens 38-24.7-101. Definitions. As used in this article, unless the context otherwise requires: (1) "Distributor" has the same meaning as set forth in section 39-27-101, C.R.S. (2) "Retailer or other commercial user" means a commercial entity involved in the use of transportation fuel for a taxable purpose under article 27 of title 39, C.R.S. (3) "Taxes" means the tax on gasoline and special fuel imposed under article 27 of title 39, C.R.S. (4) "Transportation fuel" means any flammable liquid used primarily as a fuel for the propulsion of motor vehicles, motor boats, or aircraft and includes diesel fuel. Source: L. 2016: Entire article added, (SB 16-166), ch. 357, p. 1485, § 1, effective August 10. 38-24.7-102. Who may have lien - amount. Within sixty days after the date of delivery of transportation fuel or an earlier agreed-upon payment date, every distributor has a lien upon the property of a retailer or other commercial user for the amount of unreimbursed taxes paid by the distributor under article 27 of title 39, C.R.S., for each delivery of transportation fuel to that retailer or other commercial user. The lien extends to all business assets and property of the retailer or other commercial user, including stock in trade, business fixtures, and equipment owned or used by the retailer or other commercial user in the conduct of business, as long as a delinquency in the reimbursement continues. Source: L. 2016: Entire article added, (SB 16-166), ch. 357, p. 1486, § 1, effective August 10. Colorado Revised Statutes 2019 Page 274 of 707 Uncertified Printout 38-24.7-103. How lien obtained - lien statement. Every distributor intending to avail himself or herself of the benefits of this article shall serve on the retailer or other commercial user by certified or registered mail, return receipt requested, or by personal service, within sixty days after completing the delivery of transportation fuel and record in the office of the county clerk and recorder of the county where the retailer or other commercial user is located, a statement containing a just and true account of the amount due to the distributor, after allowing all just credits and offsets, and containing a correct description of the taxes paid for the delivery of transportation fuel to the retailer or other commercial user and an affidavit of service or mailing of the statement. Any immaterial error or mistake in the account or description of the taxes paid does not invalidate the lien. The statement required by this section must include the name of the distributor, the name of the retailer or other commercial user, and the physical address of the retailer or other commercial user in the county where the retailer or other commercial user is located. The statement must also include the name and physical address of any other person, if any, against whose property the lien is filed and a description of the property to be charged with the lien. Source: L. 2016: Entire article added, (SB 16-166), ch. 357, p. 1486, § 1, effective August 10. 38-24.7-104. Priority. The lien for taxes for the delivery of transportation fuel specified in section 38-24.7-102 is not prior to and does not take precedence over any mortgage, encumbrance, security interest, or other valid lien upon the assets and property of the retailer or other commercial user, including the stock in trade, business fixtures, and equipment owned or used by the retailer or other commercial user in the conduct of the retailer's or other commercial user's business if the other mortgage, encumbrance, security interest, or valid lien attached or was filed prior to the filing of a lien under this article. Source: L. 2016: Entire article added, (SB 16-166), ch. 357, p. 1486, § 1, effective August 10. 38-24.7-105. Parties. Any person interested in the matter in controversy or the property to be charged with the lien or having a lien on the property charged may be made a party to an action for the foreclosure of the lien. Source: L. 2016: Entire article added, (SB 16-166), ch. 357, p. 1486, § 1, effective August 10. 38-24.7-106. Limitations of actions. Any action for the foreclosure and enforcement of a lien authorized in section 38-24.7-102 must be commenced, and a notice of commencement of action filed in the same locations as the lien statements, within twenty-four months after the filing of the lien and must be filed in the district court for the county in which the lien authorized Colorado Revised Statutes 2019 Page 275 of 707 Uncertified Printout in section 38-24.7-102 is filed. The failure to file such an action and notice on a timely basis renders the lien null and void. Source: L. 2016: Entire article added, (SB 16-166), ch. 357, p. 1486, § 1, effective August 10. 38-24.7-107. Acknowledgment of satisfaction of lien - penalty. Whenever the indebtedness giving rise to a lien under this article is paid and satisfied, the lienor has the duty to acknowledge satisfaction of the indebtedness and to discharge the lien of record. If any lienor fails to acknowledge satisfaction and discharge of the lien within thirty days after being requested to do so by a person having a property interest in the assets and property of the retailer or other commercial user, including the stock in trade, business fixtures, and equipment owned or used by the retailer or other commercial user in the conduct of the retailer's or other commercial user's business, the lienor is liable to any person injured in the amount of the injury and the costs of the action. Source: L. 2016: Entire article added, (SB 16-166), ch. 357, p. 1487, § 1, effective August 10. ARTICLE 25 Uniform Federal Lien Registration Act Editor's note: This article was numbered as article 6 of chapter 86 in C.R.S. 1963. The provisions of this article were repealed and reenacted in 1969, resulting in the addition, relocation, and elimination of sections as well as subject matter. For amendments to this article prior to 1969, consult the Colorado statutory research explanatory note beginning on page vii in the front of this volume. 38-25-101. Short title. This article shall be known and may be cited as the "Uniform Federal Lien Registration Act". Source: L. 69: R&RE, p. 694, § 1. C.R.S. 1963: § 86-6-1. L. 88: Entire section amended, p. 1255, § 1, effective July 1. 38-25-101.5. Scope. This article applies only to federal tax liens and to other federal liens notices of which under any act of congress or any regulation adopted pursuant thereto are required or permitted to be filed in the same manner as notices of federal tax liens. Source: L. 88: Entire section added, p. 1255, § 2, effective July 1. Colorado Revised Statutes 2019 Page 276 of 707 Uncertified Printout 38-25-102. Federal liens - places of filing. (1) (a) Notices of liens, certificates, and other notices affecting federal tax liens or other federal liens must be filed in accordance with this article. (b) Notices of liens upon real property for obligations payable to the United States and certificates and notices affecting the liens shall be recorded in the office of the county clerk and recorder of the county in which the real property subject to the liens is situated. (2) Notices of federal liens upon personal property, whether tangible or intangible, for obligations payable to the United States and certificates and notices affecting the liens shall be filed as follows: (a) If the person against whose interest the lien applies is a corporation, partnership, or limited liability company whose chief executive office is in this state, as these entities are defined in the internal revenue laws of the United States, in the office of the secretary of state; (b) If the person against whose interest the lien applies is a trust that is not covered by paragraph (a) of this subsection (2), in the office of the secretary of state; (c) If the person against whose interest the lien applies is the estate of a decedent, in the office of the secretary of state; (d) In all other cases, where the person against whose interest the lien applies has his, her, or its principal residence in this state at the time of recording of the notice of lien, the notice of lien shall be recorded in the office of the secretary of state. (2.5) (Deleted by amendment, L. 2001, p. 1431, § 11, effective July 1, 2001.) Source: L. 69: R&RE, p. 694, § 1. C.R.S. 1963: § 86-6-2. L. 88: Entire section amended, p. 1255, § 3, effective July 1. L. 99: (2) amended and (2.5) added, p. 752, § 23, effective January 1, 2000. L. 2001: (2) and (2.5) amended, p. 1431, § 11, effective July 1. 38-25-103. Execution of notices and certificates. Certification of notices of liens, certificates, or other notices affecting federal liens by the secretary of the treasury of the United States or his delegate, or by any official or entity of the United States responsible for the filing or certifying of notice of any other lien, entitles them to be filed, and no other attestation, certification, or acknowledgment is necessary. Source: L. 69: R&RE, p. 694, § 1. C.R.S. 1963: § 86-6-3. L. 88: Entire section amended, p. 1256, § 4, effective July 1. 38-25-104. Duties of filing officer. (1) If a notice of federal lien, a refiling of a notice of federal lien, or a notice of revocation of any certificate described in subsection (2) of this section is presented to a filing officer who is: (a) The secretary of state, then the secretary of state shall cause the notice to be marked, held, and indexed in accordance with the provisions of section 4-9-519, C.R.S., as if the notice were a financing statement within the meaning of such section; or Colorado Revised Statutes 2019 Page 277 of 707 Uncertified Printout (b) The county clerk and recorder, then the county clerk and recorder shall endorse thereon the county clerk and recorder's identification and the date and time of receipt and forthwith record and index in the real estate records in accordance with the provisions of sections 30-10-408 and 30-10-409, C.R.S., showing the name and address of the person named in the notice, the date and time of receipt, the title and address of the official or entity certifying the lien, and the total amount appearing on the notice of lien. (2) If a certificate of release, nonattachment, discharge, or subordination of any lien is presented to the secretary of state for filing, the secretary of state shall: (a) Cause a certificate of release or nonattachment to be marked, held, and indexed as if the certificate were a termination statement within the meaning of the "Uniform Commercial Code", but the notice of lien to which the certificate relates may not be removed from the files; and (b) Cause a certificate of discharge or subordination to be marked, held, and indexed as if the certificate were a release of collateral within the meaning of the "Uniform Commercial Code". (3) If a refiled notice of federal lien referred to in subsection (1) of this section or any of the certificates or notices referred to in subsection (2) of this section is presented for recording to any county clerk and recorder, such clerk and recorder shall enter the refiled notice or the certificate with the date of recording in the index in accordance with the provisions of sections 30-10-408 and 30-10-409, C.R.S. (4) Upon request of any person, the filing officer shall issue a certificate showing whether there is on file, or recorded on the date and hour stated therein, any notice of lien or certificate or notice affecting any lien filed under this article, naming a particular person and, if a notice or certificate is on file, giving the date and hour of filing of each notice or certificate. The fee for the issuance of a certificate by the secretary of state shall be determined and collected pursuant to section 24-21-104 (3), C.R.S., and the fee for the issuance of a certificate by a county clerk and recorder shall be five dollars. Upon request, the filing officer shall furnish a copy of any notice of federal lien or notice or certificate affecting a federal lien. The fee for furnishing and for certifying such copy and affixing the seal thereto shall be determined and collected pursuant to section 24-21-104 (3), C.R.S., if furnished by the secretary of state, and the said fee shall be five dollars, if furnished by a county clerk and recorder. Source: L. 69: R&RE, p. 694, § 1. C.R.S. 1963: § 86-6-4. L. 83: (4) amended, p. 1229, § 17, effective July 1; (4) amended, p. 880, § 50, effective July 1; (4) R&RE, p. 2056, § 37, effective October 14. L. 88: Entire section amended, p. 1256, § 5, effective July 1. L. 93: (1), IP(2), (3), and (4) amended, p. 438, § 5, effective July 1. L. 99: (1)(a), IP(2), and (4) amended, p. 753, § 24, effective January 1, 2000. L. 2001: (1)(a), IP(2), and (4) amended, p. 1432, § 12, effective July 1. Cross references: For the provisions of the "Uniform Commercial Code", see title 4; for termination statement, see § 4-9-513. Colorado Revised Statutes 2019 Page 278 of 707 Uncertified Printout 38-25-105. Fees. (1) (a) A fee shall be charged for filing or recording and indexing each notice of lien or certificate or notice affecting the lien: (I) For a lien on real estate; (II) For a lien on tangible and intangible personal property; (III) For a certificate of discharge or subordination; (IV) For all other notices, including a certificate of release or nonattachment. (b) The fee charged by a county clerk and recorder for filing and indexing each notice of lien or certificate or notice affecting the lien shall be five dollars. (c) When the filing officer is the secretary of state, the fees required by this subsection (1) shall be determined and collected pursuant to section 24-21-104 (3), C.R.S. (2) The filing officer shall bill the district directors of internal revenue or other appropriate federal officials on a monthly basis for fees for documents filed by them. Source: L. 69: R&RE, p. 695, § 1. C.R.S. 1963: § 86-6-5. L. 83: (1) R&RE, p. 1230, § 18, effective July 1; (1) amended, p. 880, § 18, effective July 1. L. 88: IP(1)(a), (1)(a)(I), (1)(a)(II), and (2) amended, p. 1257, § 6, effective July 1. L. 91: (1)(b) amended, p. 709, § 6, effective July 1. L. 93: (1)(b) amended, p. 439, § 6, effective July 1. L. 99: (1)(c) amended, p. 754, § 25, effective January 1, 2000. L. 2001: (1)(c) and (2) amended, p. 1432, § 13, effective July 1. 38-25-106. Lien not valid until notice filed. Prior to the time of the filing of a notice of lien in the office of the secretary of state or the county clerk and recorder, as the case may be, the lien shall not be valid as against any mortgagee, purchaser, or judgment creditor. Source: L. 69: R&RE, p. 695, § 1. C.R.S. 1963: § 86-6-6. L. 99: Entire section amended, p. 754, § 26, effective January 1, 2000. L. 2001: Entire section amended, p. 1432, § 14, effective July 1. 38-25-107. Uniformity of interpretation. This article shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this article among states enacting it. Source: L. 69: R&RE, p. 695, § 1. C.R.S. 1963: § 86-6-7. L. 88: Entire section amended, p. 1258, § 7, effective July 1. ARTICLE 25.5 State and Local Tax Liens 38-25.5-101. Definitions. As used in this article, unless the context otherwise requires: (1) "Authorized person" means: Colorado Revised Statutes 2019 Page 279 of 707 Uncertified Printout (a) A person who has obtained a written authorization signed and notarized by a taxpayer to receive a certificate of taxes due for the taxpayer, to receive copies of tax returns and filings by the taxpayer with a public entity, to receive a summary statement of tax payments made to any public entity by the taxpayer, or all of the above, to the degree set forth in the authorization. The authorization may be a signed original or a copy thereof and may be a separate document or part of a more general document; or (b) A lending institution that has obtained written authorization from a borrower to receive notification from the department of revenue when the borrower is delinquent in the payment of sales and use taxes, special fuel taxes, withholding taxes, gas taxes, or aviation fuel taxes. The authorization may be a signed and dated original or a copy thereof and may be a separate document or part of a more general document. (2) "Lender" means a person who has made a loan of value to a taxpayer in good faith and not for the purposes of evading this article. (3) "Public entity" means the state and every county, city and county, city, town, school district, special improvement district, special district, and every other kind of district, agency, instrumentality, political subdivision, or taxing authority of the state organized pursuant to state law, whether or not it is subject to home rule. (4) "Statement of intent" means a declaration by a lender or transferor that he intends to foreclose or transfer assets. A statement of intent need not specify a date certain for such foreclosure or transfer. (5) "Tax" means a tax and assessment collected by a public entity which is secured by a first and prior lien, including any interest, additional amount, additions to tax, penalties, and costs that are due. (6) "Tax liability" means the liability of a taxpayer for a tax. (7) "Tax lien" means a lien imposed by state or local law to secure the payment of a tax liability. (8) "Transferee" means a person to whom assets are transferred, as provided in section 38-25.5-102 (3). (9) "Transferor" means a person who transfers assets, as provided in section 38-25.5-102 (3). (10) "Treasurer" means the treasurer, director of the department of revenue, sales and use tax administrator, or the chief tax collection officer of a public entity. Source: L. 90: Entire article added, p. 1640, § 1, effective January 1, 1991. L. 97: (1) amended, p. 986, § 1, effective July 1. 38-25.5-102. Certificate of taxes due. (1) (a) As soon as practical but in no event later than thirty days after receipt of a written request from a taxpayer or authorized person, the treasurer of a public entity shall certify in writing as of the date of the certificate the full amount of the taxes identified in the request known to be due from the taxpayer. If there is a delinquency in the payment of taxes of an unknown amount, the public entity shall, if practical, provide a Colorado Revised Statutes 2019 Page 280 of 707 Uncertified Printout good faith estimate of the amount of the taxes due and indicate on the certificate that the figure provided is an estimate. A fee of ten dollars shall be collected for each specifically identified tax included in a certificate issued by a public entity in response to a request. (b) Notwithstanding the amount of the fee specified in paragraph (a) of this subsection (1), if the public entity collecting the fee is a state agency, the executive director of the state agency, by rule or as otherwise provided by law, may reduce the amount of the fee if necessary pursuant to section 24-75-402 (3), C.R.S., to reduce the uncommitted reserves of the fund to which all or any portion of the fee is credited. After the uncommitted reserves of the fund are sufficiently reduced, the executive director of the state agency, by rule or as otherwise provided by law, may increase the amount of the fee as provided in section 24-75-402 (4), C.R.S. (2) Except as provided in subsection (3) of this section and notwithstanding any other provision of law to the contrary: (a) When signed by the treasurer of a public entity, a certificate of taxes due shall be conclusive evidence for all purposes and against all persons, including the public entity, that, at the time of certification, the property of the taxpayer was free and clear of all such identified taxes due and any tax liens arising therefrom or was subject to each such identified tax due and any tax lien arising therefrom in a stated or estimated amount; and (b) If more than one certificate of taxes due is issued by the treasurer of the same public entity with respect to the same taxpayer and the later certificate sets forth an amount of taxes due for a particular tax which is: (I) In excess of the amount set forth in the earlier certificate, the earlier certificate shall be conclusive evidence of the amount of taxes due and any tax liens arising therefrom as of the date of that earlier certificate. The later certificate shall be evidence of the amount of taxes due and any tax liens arising therefrom as of the date of the later certificate, but any tax lien arising therefrom shall only be effective for the amount of taxes which became due after the date of the earlier certificate. (II) Less than the amount set forth in the earlier certificate, the later certificate shall be conclusive evidence of the amount of taxes due and any tax liens arising therefrom as of the date of the later certificate; (c) Any tax lien arising from taxes becoming due after the date of the latest certificate of taxes due shall not be affected by this section. (3) (a) This subsection (3) shall apply only to taxes identified in and due as of the date of a certificate of taxes due. Notwithstanding any other provision of law to the contrary, if a public entity completes an audit or investigation subsequent to the date of such certificate which reveals a tax liability for the identified taxes due as of the date of a certificate previously issued in excess of the amount certified in the certificate, then the public entity shall retain whatever rights and remedies for collection of such tax liability as otherwise provided by state or local law; except that: (I) In the event of a foreclosure initiated by a lender which results in a sale of assets subject to any tax lien to a purchaser other than the lender, such tax lien shall remain a lien on Colorado Revised Statutes 2019 Page 281 of 707 Uncertified Printout such assets but not on the proceeds to the lender of the foreclosure sale, and neither the lender nor the purchaser shall have any personal liability for the tax liability underlying the tax lien; (II) In the event of a foreclosure initiated by a lender which results in a sale of assets subject to any tax lien to the lender or in the event of a transfer of assets subject to any tax lien to a lender in lieu of foreclosure, such tax lien shall remain a lien on such assets, but the lender shall not have any personal liability for the tax liability underlying the tax lien; (III) In the event the circumstances described in subparagraph (II) of this paragraph (a) occur and the lender subsequently sells such assets to a purchaser, such tax lien shall remain a lien on such assets but not on the proceeds to the lender of the sale, and neither the lender nor the purchaser shall have any personal liability for the tax liability underlying the tax lien; and (IV) In the event the circumstances described in subparagraph (I) or subparagraph (III) of this paragraph (a) occur and the purchaser transfers such assets to a subsequent purchaser, such tax lien shall remain a lien on such assets but not on the proceeds of sale, and neither the subsequent purchaser nor any subsequent purchaser thereafter shall have any personal liability for the tax liability underlying the tax lien. (b) In order to qualify for the protections provided by this subsection (3), a lender or transferor shall comply with the following requirements: (I) Upon receipt of a written request from a public entity, the lender or transferor shall promptly provide to the public entity a description of any assets of the taxpayer subject to a tax lien which have been transferred and the name and address of the transferee of such assets. The lender or transferor shall maintain records relating to such asset transfers for a minimum of four years; and (II) Prior to a foreclosure sale or transfer of taxpayer assets which may be subject to a tax lien, the lender or transferor shall request or cause to be requested from the appropriate public entity a certificate of taxes due. Such request shall be accompanied by or shall include a statement of intent. Such certificate of taxes due shall have been issued no more than six months prior to the date of the foreclosure sale or transfer of assets. (4) This section shall not apply to general taxes for real property as governed by articles 1 to 14 of title 39, C.R.S. Source: L. 90: Entire article added, p. 1641, § 1, effective January, 1, 1991. L. 2001: (1) amended, p. 556, § 1, effective May 23. 38-25.5-103. Copies of returns and filings - summary statement - fees. (1) As soon as practical but in no event later than thirty days after receipt of a written request from a taxpayer or authorized person, the treasurer of a public entity shall provide, as to taxes of the public entity which are specifically identified in the request, either copies of returns and filings by the taxpayer which are in the possession or custody of the public entity or a summary statement of tax payments made by the taxpayer to the public entity. A request made under the provisions of this section shall be limited to the current year and the previous three years. A request made by Colorado Revised Statutes 2019 Page 282 of 707 Uncertified Printout an authorized person shall be limited to the extent set forth in the written authorization of the authorized person. (2) A request made pursuant to this section may be either in the form of a request for copies of tax returns and filings or in the form of a request for a summary statement but may not contain both types of requests. If the specified form of the request cannot be readily complied with by the treasurer, the treasurer shall so notify the requesting party and may comply with the request by furnishing the information in the alternative form. (3) (a) A fee of ten dollars shall be collected for each specifically identified tax included in such summary statement issued by a public entity. A fee of one dollar and twenty-five cents shall be collected for each page of tax returns and filings of a taxpayer copied and delivered by a public entity. (b) Notwithstanding the amount of any fee specified in paragraph (a) of this subsection (3), if the public entity collecting the fee is a state agency, the executive director of the state agency by rule or as otherwise provided by law may reduce the amount of one or more of the fees if necessary pursuant to section 24-75-402 (3), C.R.S., to reduce the uncommitted reserves of the fund to which all or any portion of one or more of the fees is credited. After the uncommitted reserves of the fund are sufficiently reduced, the executive director of the state agency by rule or as otherwise provided by law may increase the amount of one or more of the fees as provided in section 24-75-402 (4), C.R.S. (4) This section shall not apply to general taxes for real property as governed by articles 1 to 14 of title 39, C.R.S. Source: L. 90: Entire article added, p. 1643, § 1, effective January 1, 1991. L. 98: (3) amended, p. 1346, § 80, effective June 1. 38-25.5-103.5. Notification requirements - tax delinquency notification fund creation - immunity. (1) The department of revenue shall provide information to any lending institution that is an authorized person regarding the delinquent payment of sales and use tax, withholding tax, special fuels tax, gas tax, or aviation fuel tax by a borrower of funds from such institution provided such delinquency is in distraint warrant stage. The department shall honor any request made by a lending institution that is an authorized person to the extent set forth in the written authorization. Such provision of information shall be made in accordance with rules promulgated by the department, which shall include the following: (a) The procedures pursuant to which lending institutions may request notification under this section, when such notification will be provided by the department, and the manner in which such information shall be provided; (b) The amount of the filing fee needed to cover programming and other administrative costs, which may be adjusted periodically by the department and not necessarily at the beginning of the year; (c) The level, type, or degree of delinquency subject to the disclosure provided by this section; Colorado Revised Statutes 2019 Page 283 of 707 Uncertified Printout (d) Any other information needed for the implementation of this section. (2) The level, type, or degree of delinquency subject to the disclosure provided by this section shall be set by the department of revenue. (3) The department shall transmit any filing fees collected pursuant to this section to the state treasurer, who shall deposit such fees in the state treasury in the tax delinquency notification fund, which fund is hereby created. Moneys so deposited and all interest earned on such moneys shall be retained in the fund. Source: L. 97: Entire section added, p. 987, § 2, effective July 1. 38-25.5-104. Civil liability. Notwithstanding any other provision of law to the contrary, no public entity, lender, authorized person, or transferor or any director, officer, employee, or agent thereof shall be liable in any civil action for damages to a taxpayer, authorized person, transferee, or any other person for any act done or omitted in accordance with the provisions of this article. Source: L. 90: Entire article added, p. 1643, § 1, effective January 1, 1991. 38-25.5-105. Department of revenue fees. Except as provided in section 38-25.5-103.5, fees collected by the department of revenue pursuant to this article shall be deposited in the state treasury in the tax lien certification fund which is hereby created. Moneys so deposited and all interest earned on such moneys shall be used by the department of revenue for the purposes of this article in accordance with the annual appropriation by the general assembly and shall not be deposited in or transferred to the general fund; except that moneys in excess of the maximum reserve, as defined in section 24-75-402 (2)(e.5), C.R.S., that remain in the fund at the end of any state fiscal year commencing on or after July 1, 2000, shall be transferred to the general fund. Source: L. 90: Entire article added, p. 1643, § 1, effective January 1, 1991. L. 97: Entire section amended, p. 987, § 3, effective July 1. L. 2001: Entire section amended, p. 556, § 2, effective May 23. L. 2015: Entire section amended, (HB 15-1261), ch. 322, p. 1315, § 10, effective June 5. Editor's note: Section 11 of chapter 322 (HB 15-1261), Session Laws of Colorado 2015, provides that changes to this section by the act apply to fiscal years beginning on or after July 1, 2014. ARTICLE 26 Contractor's Bonds and Lien on Funds Colorado Revised Statutes 2019 Page 284 of 707 Uncertified Printout 38-26-101. Contractor defined. The word "contractor", as used in sections 38-26-101, 38-26-106, and 38-26-107, means any person, copartnership, association of persons, company, or corporation to whom is awarded any contract for the construction, erection, repair, maintenance, or improvement of any building, road, bridge, viaduct, tunnel, excavation, or other public work of this state or for any county, city and county, municipality, school district, or other political subdivision of the state. Source: L. 23: p. 480, § 1. CSA: C. 39, § 5. CRS 53: § 86-7-5. C.R.S. 1963: § 86-7-5. 38-26-102. Railroad and irrigation contractor's bond - action - limitation. (1) Whenever any railroad, reservoir, or irrigating canal company contracts with any person or corporation for the construction of its railroad, reservoir, or irrigating canal, or any part thereof, such company shall take from the person or corporation with whom such contract is made a good and sufficient bond, conditioned that such contractor shall pay or cause to be paid to all laborers, mechanics, materialmen, ranchmen, farmers, merchants, and other persons who supply such contractor, or any of his or her subcontractors, with labor, work, laborers, materials, ranch or farm products, provisions, goods, or supplies of any kind all just debts incurred therefor in carrying on such work, which bond shall be filed by such company in the office of the county clerk and recorder in the county where the principal work of such contractor is carried on. If any such railroad, reservoir, or irrigation canal company fails to take such bond, such company shall be liable to the persons mentioned to the full extent of all such debts so contracted by such contractor or any of his or her subcontractors. Any such contractor may take a similar bond from each of his or her subcontractors to secure the payment of all debts of the kind mentioned incurred by such contractor and file the same. (2) All such persons mentioned in this section to whom any debt of the kind mentioned is due from any such contractor or subcontractor shall severally have a right of action upon any such bond covering such debt taken as provided for the recovery of the full amount of such debt. A certified copy of the bond shall be received as evidence in any such action. In order that the right of action upon such bonds may exist, such person or parties granted such right shall comply with either of the following conditions: (a) An action in a court of competent jurisdiction in the county where such bond is filed shall be commenced within ninety days after the last item of indebtedness has accrued; or (b) An itemized statement of the indebtedness duly verified shall be filed within ninety days after the last item of such indebtedness has accrued in the office of the county clerk and recorder of the proper county, and an action shall be brought in any court of competent jurisdiction of such county within three months after the filing of such statement. (3) In case an action is commenced upon the bond of a contractor, such contractor may give notice thereof to the subcontractor liable for the claim. In such case the result of such action shall be binding upon the subcontractor and his sureties. In any case when a contractor has paid a claim for which a subcontractor is liable, such contractor shall bring action against the subcontractor and his sureties within sixty days after the payment of such claim. Colorado Revised Statutes 2019 Page 285 of 707 Uncertified Printout Source: L. 11: p. 490, § 1. C.L. § 6481. CSA: C. 39, § 1. CRS 53: § 86-7-1. C.R.S. 1963: § 86-7-1. L. 2000: (1) amended, p. 212, § 15, effective August 2. 38-26-103. Verified account to company - withhold payments. Every laborer, mechanic, ranchman, farmer, merchant, or other person performing any work or labor or furnishing any laborers, materials, ranch or farm products, provisions, goods, or supplies to any contractor or subcontractor in the construction of any railroad, reservoir, or irrigation canal, or any part thereof, used by such contractor or subcontractor in carrying on said work of construction whose demand for work, labor, laborers, material, ranch or farm products, provisions, goods, or supplies so furnished has not been paid may deliver to the company owning such railroad, reservoir, or irrigation canal, or to its agent, a verified account of the amount and value of the work and labor so performed or the laborers, material, ranch or farm products, provisions, goods, or supplies so furnished. Thereupon such company, or its agent, shall retain out of the subsequent payments to the contractor the amount of such unpaid account for the benefit of the person to whom the same is due. Source: L. 11: p. 491, § 2. C.L. § 6482. CSA: C. 39, § 2. CRS 53: § 86-7-2. C.R.S. 1963: § 86-7-2. L. 2000: Entire section amended, p. 212, § 16, effective August 2. 38-26-104. Contractor furnished copy - undisputed accounts - condition. Whenever any verified account mentioned in section 38-26-103 is placed in the hands of any railroad, reservoir, or irrigating canal company, or its agent, it is the duty of such company to furnish the contractor with a copy of such verified account so that if there is any disagreement between the debtor and creditor as to the amount due the same may be amicably adjusted. If the contractor or subcontractor, if he is the debtor, does not give, within ten days after the receipt of such amount, the same railroad, reservoir, or irrigating canal company, or its agent, written notice that the claim is disputed, he shall be considered as assenting to its payment and the railroad, reservoir, or irrigating canal company, or its agent, shall be justified in paying the same when due and charging the same to the contractor. The person to whom any such debt is due and who delivers a verified account thereof as provided may recover the amount thereof in an action at law to the extent of any balance due by the railroad, reservoir, or irrigating canal company to the contractor at or after the time of delivering the verified account. Nothing in this section or in section 38-26103 shall interfere with the right of action upon bonds provided for in section 38-26-102 or against the railroad, reservoir, or irrigating canal company for the full amount of any such debt in case of a failure of the company to take a bond. Source: L. 11: p. 492, § 3. C.L. § 6483. CSA: C. 39, § 3. CRS 53: § 86-7-3. C.R.S. 1963: § 86-7-3. 38-26-105. Public works contractor's bond - conditions - applicability - definitions. (1) Subject to subsection (2) of this section, any person, company, firm, or corporation entering Colorado Revised Statutes 2019 Page 286 of 707 Uncertified Printout into a contract for more than fifty thousand dollars with any county, municipality, or school district for the construction of any public building or the prosecution or completion of any public works or for repairs upon any public building or public works is required before commencing work to execute, in addition to all bonds that may be required of it, a penal bond with good and sufficient surety to be approved by the board or boards of county commissioners of the county or counties, the governing body or bodies of the municipality or municipalities, or the district school board or boards, conditioned that such contractor shall at all times promptly make payments of all amounts lawfully due to all persons supplying or furnishing such person or such person's subcontractors with labor, laborers, materials, rental machinery, tools, or equipment used or performed in the prosecution of the work provided for in such contract and that such contractor will indemnify and save harmless the county, municipality, or school district to the extent of any payments in connection with the carrying out of any such contract which the county or counties, municipality or municipalities, and school district or school districts may be required to make under the law. Subcontractors, materialmen, mechanics, suppliers of rental equipment, and others may have a right of action for amounts lawfully due them from the contractor or subcontractor directly against the principal and surety of such bond. Such action for laborers, materials, rental machinery, tools, or equipment furnished or labor rendered must be brought within six months after the completion of the work. (2) Notwithstanding the monetary qualification provided in subsection (1) of this section, the state, or the governing body of any county, municipality, school district, or other political subdivision determining it to be in the best interest of this state, or any county, municipality, school district, or other political subdivision may require the execution of a penal bond for any contract of fifty thousand dollars or less. (3) This section applies to all contracts for more than fifty thousand dollars awarded to a private entity for the construction of any public building or the prosecution or completion of any public works or for repairs upon any public building or public works that is situated or located on publicly owned property using any public or private money or public or private financing. Source: L. 15: p. 395, § 1. C.L. § 9514. CSA: C. 39, § 4. CRS 53: § 86-7-4. C.R.S. 1963: § 86-7-4. L. 75: Entire section amended, p. 821, § 17, effective July 18. L. 79: Entire section amended, p. 1392, § 1, effective May 25; entire section amended, p. 888, § 13, effective July 1. L. 81: Entire section amended, p. 1824, § 1, effective May 28. L. 85: (1) amended, p. 1201, § 1, effective May 10. L. 2000: (1) amended, p. 212, § 17, effective August 2. L. 2019: (1) amended and (3) added, (SB 19-138), ch. 117, p. 495, § 3, effective August 2. Editor's note: Amendments to this section by House Bill 79-1146 and Senate Bill 79306 were harmonized. Cross references: For the legislative declaration in SB 19-138, see section 1 of chapter 117, Session Laws of Colorado 2019. Colorado Revised Statutes 2019 Page 287 of 707 Uncertified Printout 38-26-106. Contractor executes bond - applicability. (1) Before entering upon the performance of any work included in the contract, a contractor shall duly execute, deliver to, and file with the board, officer, body, or person by whom the contract was awarded a good and sufficient bond or other acceptable surety approved by the contracting board, officer, body, or person, in a penal sum not less than one-half of the total amount payable under the terms of the contract; except that, for a public works contract having a total value of five hundred million dollars or more, a bond or other acceptable surety, including but not limited to a letter of credit, may be issued in a penal sum not less than one-half of the maximum amount payable under the terms of the contract in any calendar year in which the contract is performed. The contracting board, office, body, or person shall ensure that the contract requires that a bond or other acceptable surety, including but not limited to a letter of credit, be filed and current for the duration of the contract. (2) A bond or other acceptable surety shall be duly executed by a qualified corporate surety or other qualified financial institution, conditioned upon the faithful performance of the contract, and, in addition, shall provide that, if the contractor or his or her subcontractor fails to duly pay for any labor, materials, team hire, sustenance, provisions, provender, or other supplies used or consumed by such contractor or his or her subcontractor in performance of the work contracted to be done or fails to pay any person who supplies laborers, rental machinery, tools, or equipment, all amounts due as the result of the use of such laborers, machinery, tools, or equipment, in the prosecution of the work, the surety or other qualified financial institution will pay the same in an amount not exceeding the sum specified in the bond or other acceptable surety together with interest at the rate of eight percent per annum. Unless a bond or other acceptable surety is executed, delivered, and filed, no claim in favor of the contractor arising under the contract shall be audited, allowed, or paid. A certified or cashier's check or a bank money order made payable to the treasurer of the state of Colorado or to the treasurer or other officer designated by the governing body of the contracting local government may be accepted in lieu of a bond or other acceptable surety. (3) This section applies to: (a) A contractor who is awarded a contract for more than fifty thousand dollars for the construction, erection, repair, maintenance, or improvement of any building, road, bridge, viaduct, tunnel, excavation, or other public works for any county, city and county, municipality, school district, or other political subdivision of the state; (b) A contractor who is awarded a contract for more than one hundred fifty thousand dollars for the construction, erection, repair, maintenance, or improvement of any building, road, bridge, viaduct, tunnel, excavation, or other public works for this state; and (c) All contracts for more than one hundred fifty thousand dollars awarded by any county, city and county, municipality, school district, or other political subdivision of the state to a private entity for the construction, erection, repair, maintenance, or improvement of any building, road, bridge, viaduct, tunnel, excavation, or other public works that is situated or located on publicly owned property using any public or private money or public or private financing. Colorado Revised Statutes 2019 Page 288 of 707 Uncertified Printout Source: L. 23: p. 480, § 2. CSA: C. 39, § 6. CRS 53: § 86-7-6. C.R.S. 1963: § 86-7-6. L. 75: (1) amended, p. 1427, § 1, effective June 13. L. 77: Entire section amended, p. 1712, § 1, effective June 3. L. 81: (1) amended, p. 1825, § 2, effective May 28. L. 85: (2) amended, p. 1202, § 2, effective May 10. L. 2000: (2) amended, p. 213, § 18, effective August 2. L. 2004: (1) amended p. 228, § 4, effective August 4. L. 2009: Entire section amended, (SB 09-248), ch. 270, p. 1225, § 1, effective August 5. L. 2014: (1) amended, (HB 14-1387), ch. 378, p. 1853, § 65, effective June 6. L. 2019: (1) amended and (3) added, (SB 19-138), ch. 117, p. 495, § 4, effective August 2. Cross references: (1) For the legislative declaration in HB 14-1387, see section 1 of chapter 378, Session Laws of Colorado 2014. (2) For the legislative declaration in SB 19-138, see section 1 of chapter 117, Session Laws of Colorado 2019. 38-26-107. Supplier may file statement - notice - withholding funds. (1) Any person, as defined in section 2-4-401 (8), C.R.S., that has furnished labor, materials, sustenance, or other supplies used or consumed by a contractor or his or her subcontractor in or about the performance of the work contracted to be done or that supplies laborers, rental machinery, tools, or equipment to the extent used in the prosecution of the work whose claim therefor has not been paid by the contractor or the subcontractor may, at any time up to and including the time of final settlement for the work contracted to be done, file with the board, officer, person, or other contracting body by whom the contract was awarded a verified statement of the amount due and unpaid on account of the claim. If the amount of the contract awarded to the contractor exceeds one hundred fifty thousand dollars, the board, officer, person, or other contracting body by whom the contract was awarded shall, no later than ten days before the final settlement is made, publish a notice of the final settlement at least twice in a newspaper of general circulation in any county where the work was contracted for or performed or in an electronic medium approved by the executive director of the department of personnel. It is unlawful for any person to divide a public works contract into two or more separate contracts for the sole purpose of evading or attempting to evade the requirements of this subsection (1). (2) Upon the filing of any such claim, such board, officer, person, or other body awarding the contract shall withhold from all payments to said contractor sufficient funds to insure the payment of said claims until the same have been paid or such claims as filed have been withdrawn, such payment or withdrawal to be evidenced by filing with the person or contracting body by whom the contract was awarded a receipt in full or an order for withdrawal in writing and signed by the person filing such claim or his duly authorized agents or assigns. Such funds shall not be withheld longer than ninety days following the date fixed for final settlement as published unless an action is commenced within that time to enforce such unpaid claim and a notice of lis pendens is filed with the person or contracting body by whom the contract was awarded. Colorado Revised Statutes 2019 Page 289 of 707 Uncertified Printout (3) At the expiration of the ninety-day period, the person or other body awarding the contract shall pay to the contractor such moneys and funds as are not the subject of suit and lis pendens notices and shall retain thereafter, subject to the final outcome thereof, only sufficient funds to insure the payment of judgments that may result from the suit. Failure on the part of a claimant to comply with the provisions of sections 38-26-101, 38-26-106, and this section shall relieve the board, officer, body, or person by whom such contract was awarded from any liability for making payment to the contractor. At any time within ninety days following the date fixed for final settlement as published, any person, copartnership, association of persons, company, or corporation, or its assigns, whose claims have not been paid by any such contractor or subcontractor may commence an action to recover the same, individually or collectively, against the surety or other qualified financial institution on the bond or other acceptable surety specified and required in section 38-26-106. Source: L. 23: p. 481, § 3. L. 29: p. 525, § 1. CSA: C. 39, § 7. CRS 53: § 86-7-7. C.R.S. 1963: § 86-7-7. L. 85: (1) amended, p. 1202, § 3, effective May 10. L. 2000: (1) amended, p. 213, § 19, effective August 2. L. 2003: (1) amended, p. 1690, § 1, effective September 1. L. 2007: (1) amended, p. 420, § 1, effective August 3. L. 2009: (1) amended, (SB 09-290), ch. 374, p. 2042, § 8, effective August 5; (3) amended, (SB 09-248), ch. 270, p. 1226, § 2, effective August 5. L. 2014: (1) amended, (HB 14-1387), ch. 378, p. 1853, § 66, effective June 6. Cross references: (1) For publication of legal notices, see part 1 of article 70 of title 24. (2) For the legislative declaration in HB 14-1387, see section 1 of chapter 378, Session Laws of Colorado 2014. 38-26-108. Substitution of bond allowed. (1) Whenever a verified statement of a claim has been filed in accordance with section 38-26-107, the contractor holding the contract against which such statement has been filed, or other person who has an interest in the payments being withheld, by the contracting body that awarded the contract may, at any time, file with the clerk of the district court of the county where the contract is being performed or of the county where the office in which the verified statement of claim is located an ex parte motion for approval of a substitute corporate surety bond or any other undertaking that may be acceptable to a judge of such district court. (2) A corporate surety bond or undertaking filed pursuant to subsection (1) of this section shall be in an amount equal to one and one-half times the amount of the claim plus costs allowed by the court up to the date of such filing and shall have been approved by an order of a judge of the district court in which such bond or undertaking is filed. The order shall state that: (a) The corporate surety bond or undertaking is approved; (b) The verified statement of claim is discharged; (c) The corporate surety bond or undertaking shall be substituted for the moneys withheld pursuant to the verified statement of claim; and Colorado Revised Statutes 2019 Page 290 of 707 Uncertified Printout (d) The contracting body that awarded the contract shall release the moneys being withheld pursuant to the verified statement of claim on the same terms and conditions as if the verified statement of claim had been released by the claimant. (3) A corporate surety bond or undertaking filed pursuant to subsection (1) of this section shall be conditioned that, if the claimant is finally adjudged to be entitled to recover upon the claim upon which the claimant's verified statement of a claim is based, the surety issuing the bond or undertaking or the principal thereunder, shall pay to such claimant the amount of the judgment issued upon such claim, together with any interest, costs, and other amounts awarded by the judgment. (4) Notwithstanding the provisions of section 38-26-107, upon the issuance of an order from a judge of the district court approving a bond or undertaking filed pursuant to subsection (1) of this section, the clerk of such district court shall issue a certificate of release, which shall be served on the board, officer, person, or other contracting body by whom the contract was awarded by certified mail, return receipt requested, or by personal delivery. The certificate of release shall show that such claim against the contract has been discharged and released in full and the corporate surety bond or undertaking has been substituted. After the certificate of release is filed, payments to the contractor by the contracting body by whom the contract was awarded shall resume in accordance with the terms of the contract, and any funds previously withheld as a result of the filing of the verified statement shall be released to the contractor pursuant to the terms of the contract or, if not specified in the contract, within thirty days after the receipt of the certificate of release by the board, officer, person, or other contracting body by whom the contract was awarded. (5) When a corporate surety bond or undertaking is substituted for a claim as provided in this section, the claimant who filed the verified statement of a claim pursuant to section 38-26107 (1) may bring an action against such bond or undertaking. Such action shall be commenced within the time allowed for the commencement of an action set forth in section 38-26-107 (3). (6) In the event that no action is commenced upon the corporate surety bond or undertaking within the time period called for by section 38-26-107, the corporate surety bond or undertaking shall be discharged and shall be returned to the contractor. Source: L. 2000: Entire section added, p. 68, § 1, effective March 10. 38-26-109. Moneys for verified claims made - trust funds - disbursements - penalty. (1) All funds disbursed to any contractor or subcontractor under any contract or project subject to the provisions of this article shall be held in trust for the payment of any person that has furnished labor, materials, sustenance, or other supplies used or consumed by the contractor in or about the performance of the work contracted to be done or that supplies laborers, rental machinery, tools, or equipment to the extent used in the prosecution of the work where the person has: (a) Filed or may file a verified statement of a claim arising from the project; or Colorado Revised Statutes 2019 Page 291 of 707 Uncertified Printout (b) Asserted or may assert a claim against a principal or surety under the provisions of this article and for whom or which such disbursement was made. (2) The requirements of this section shall not be construed so as to require a contractor or subcontractor to hold in trust any funds that have been disbursed to him or her for any person that has furnished labor, materials, sustenance, or other supplies used or consumed by the contractor or his or her subcontractor in the performance of the work contracted to be done; supplied laborers, rental machinery, tools, or equipment to the extent used in the prosecution of the work; filed or may file a verified statement of a claim arising from the project; or asserted or may assert a claim against a principal or surety that has furnished a bond under the provisions of this article if: (a) The contractor or subcontractor has a good faith belief that the verified statement of a claim or bond claim is not valid; or (b) The contractor or subcontractor, in good faith, claims a setoff, to the extent of such setoff. (3) Each contractor or subcontractor shall maintain separate records of account of each project or account; except that nothing in this section shall be construed to require a contractor or subcontractor to deposit trust funds from a single project in a separate bank account solely for that project as long as the trust funds are not disbursed in a manner that conflicts with the requirements of this section. (4) Any person who violates the provisions of subsections (1) and (2) of this section commits theft within the meaning of section 18-4-401, C.R.S. Source: L. 2003: Entire section added, p. 1690, § 2, effective September 1. 38-26-110. Excessive amounts claimed. (1) Any person who files a verified statement of a claim or asserts a claim against a principal or surety that has furnished a bond under this article for an amount greater than the amount due without a reasonable possibility that the amount claimed is due and with the knowledge that the amount claimed is greater than the amount due, and that fact is demonstrated in any proceedings under this article, shall forfeit all rights to the amount claimed and shall be liable to the following in an amount equal to all costs and all attorney fees reasonably incurred in bonding over, contesting, or otherwise responding in any way to the excessive verified statement of claim or excessive bond claim: (a) The person to whom or which a disbursement would be made but for the verified statement of a claim or bond claim; or (b) The principal and surety on the bond. Source: L. 2003: Entire section added, p. 1690, § 2, effective September 1. ARTICLE 27 Hospital Liens Colorado Revised Statutes 2019 Page 292 of 707 Uncertified Printout 38-27-101. Lien for hospital care - definition. (1) Before a lien is created, every hospital duly licensed by the department of public health and environment, pursuant to part 1 of article 3 of title 25, C.R.S., which furnishes services to any person injured as the result of the negligence or other wrongful acts of another person and not covered by the provisions of the "Workers' Compensation Act of Colorado", articles 40 to 47 of title 8, C.R.S., shall submit all reasonable and necessary charges for hospital care or other services for payment to the property and casualty insurer and the primary medical payer of benefits available to and identified by or on behalf of the injured person, in the same manner as used by the hospital for patients who are not injured as the result of the negligence or wrongful acts of another person, to the extent permitted by state and federal law. (2) If no payers of benefits are identified for the injured person due to lack of insurance, a lien may be created. (3) If a hospital is notified of a payer of benefits after it creates a lien, the hospital shall make good-faith attempts to submit reasonable and necessary charges for hospital care or other services to the identified payer in the same manner as used by the hospital for patients who are not injured as the result of the negligence or wrongful acts of another person. (4) After a hospital satisfies the requirements of this section, and subject to this article, the hospital shall have a lien for all reasonable and necessary charges for hospital care upon the net amount payable to the injured person or to his or her heirs, assigns, or legal representatives out of the total amount of any recovery or sum had or collected, or to be collected, whether by judgment, settlement, or compromise, by the person or his or her heirs or legal representatives as damages on account of the injuries. (5) Nothing in this section authorizes a hospital to collect or attempt to collect money from a person as prohibited by section 8-42-101 (4), 8-43-207 (1)(o), or 10-16-705 (3), C.R.S. (6) Nothing in this section changes any obligation of the hospital or its agents under the "Colorado Medical Assistance Act", articles 4 to 6 of title 25.5, C.R.S. (7) An injured person who is subject to a lien in violation of this section may bring an action in a district court to recover two times the amount of the lien attempted to be asserted. (8) The lien of attorneys- and counselors-at-law created by section 13-93-114 has precedence over and is senior to the lien created under this section. This article 27 does not apply to any hospital charges incurred after the date of any such judgment, settlement, or compromise. (9) For purposes of this section, "payer of benefits" means: (a) An insurer; (b) A health maintenance organization; (c) A health benefit plan; (d) A preferred provider organization; (e) An employee benefit plan; (f) A program of medical assistance under the "Colorado Medical Assistance Act", articles 4 to 6 of title 25.5, C.R.S.; (g) The children's basic health plan, article 8 of title 25.5, C.R.S.; (h) Any other insurance policy or plan; or Colorado Revised Statutes 2019 Page 293 of 707 Uncertified Printout (i) Any other benefit available as a result of a contract entered into and paid for by or on behalf of an injured person. Source: L. 67: p. 880, § 1. C.R.S. 1963: § 86-8-1. L. 90: Entire section amended, p. 574, § 72, effective July 1. L. 94: Entire section amended, p. 2805, § 577, effective July 1. L. 2015: Entire section amended, (SB 15-265), ch. 260, p. 981, § 1, effective August 5. L. 2017: (8) amended, (SB 17-227), ch. 192, p. 705, § 6, effective August 9. 38-27-102. Notice of lien. Such lien shall take effect if, prior to any such judgment, settlement, or compromise, a written notice of lien containing the name and address of the injured person, the date of the accident, the name and location of the hospital, and the name of the person alleged to be liable to the injured person for the injuries received is filed by the hospital in the office of the secretary of state. Hospital liens properly recorded with the division of insurance prior to July 1, 1994, shall be valid and enforceable without filing with the office of the secretary of state. Within ten days after such filing, the hospital shall mail by certified mail, return receipt requested, a copy of said notice to such injured person at the last address provided to the hospital by such person, to his or her attorney, if known, to the persons alleged to be liable to such injured person for the injuries sustained, if known, and to the insurance carriers, if known, which have insured such persons alleged to be liable against such liability. If an action for damages on account of such injuries or death is pending, the requirements of notice contained in this section shall be satisfied by the filing of the said notice of lien in the pending action, with copies thereof to the attorneys of record for the parties thereto. Source: L. 67: p. 880, § 1. C.R.S. 1963: § 86-8-2. L. 94: Entire section amended, p. 1555, § 11, effective July 1. L. 99: Entire section amended, p. 754, § 27, effective January 1, 2000. L. 2001: Entire section amended, p. 1433, § 15, effective July 1. 38-27-103. Enforcement of lien and limitation of action. Any person, private or corporate, who pays over any money to any such injured person, his attorney, heirs, assigns, or legal representatives against whom there is a lien as provided in this article of which he has received notice as provided in this article is liable to the hospital having such lien for the amount thereof not exceeding the net amount paid to such injured person, his heirs, assigns, or legal representatives. Any action under this section shall be commenced within one year after the date of such payment, and the court shall allow a reasonable attorney's fee for the collection and enforcement of such lien. Source: L. 67: p. 881, § 1. C.R.S. 1963: § 86-8-3. 38-27-104. Hospital to furnish itemized statement. Upon receipt of a written request mailed by certified mail, return receipt requested, from any person notified of such lien in accordance with the provisions of section 38-27-102, such hospital shall, within ten days after Colorado Revised Statutes 2019 Page 294 of 707 Uncertified Printout receipt of such request, furnish such person with an itemized statement of all charges for which the lien is claimed. If such injured person has not been discharged from said hospital at the time such request is received, then the hospital shall recite that hospitalization or medical treatments are continuing and shall furnish the said itemized statement within ten days after such person has been discharged from said hospital. In addition to being furnished the said itemized statement, the person, private or corporate, against whom the lien is asserted shall also be permitted to examine the financial records of the said hospital in reference to the services furnished for which the hospital is asserting a lien. Source: L. 67: p. 881, § 1. C.R.S. 1963: § 86-8-4. 38-27-105. Assignment of lien. Any party claiming a lien under the provisions of this article may assign, in writing, his claim and lien to any other party, who shall thereafter have all the rights and remedies of the assignor. Source: L. 67: p. 881, § 1. C.R.S. 1963: § 86-8-5. 38-27-106. Applicability. This article shall apply only to liens for hospital services and care rendered on or after June 12, 1967. Source: L. 67: p. 881, § 2. C.R.S. 1963: § 86-8-6. PARTITION ARTICLE 28 Partition 38-28-101. Action - who may maintain. Actions for the division and partition of real or personal property or interest therein may be maintained by any person having an interest in such property. Source: L. 49: p. 544, § 1. CSA: C. 122, § 24. CRS 53: § 103-1-1. C.R.S. 1963: § 1031-1. 38-28-102. Parties. All persons having any interest, direct, beneficial, contingent, or otherwise, in such property shall be made parties. Source: L. 49: p. 544, § 2. CSA: C. 122, § 25. CRS 53: § 103-1-2. C.R.S. 1963: § 1031-2. Colorado Revised Statutes 2019 Page 295 of 707 Uncertified Printout 38-28-103. Complete adjudication. The court shall make a complete adjudication of the rights of all parties to such property. Source: L. 49: p. 544, § 3. CSA: C. 122, § 26. CRS 53: § 103-1-3. C.R.S. 1963: § 1031-3. 38-28-104. Process, practice, procedure. The process, practice, and procedure shall be in compliance with the Colorado rules of civil procedure then in effect. Source: L. 49: p. 544, § 4. CSA: C. 122, § 27. CRS 53: § 103-1-4. C.R.S. 1963: § 1031-4. 38-28-105. Commissioners - oath - partition - objections. Upon the entry of any order for partition, the court shall appoint one or more disinterested commissioners who shall take oath to fairly and impartially make partition of the property in accordance with the decree of court. Such commissioners shall view the property and make partition thereof in writing, assigning to each party his share, and shall submit the same to the court for confirmation. Objections may be filed by any party within the time fixed by the court. Source: L. 49: p. 544, § 5. CSA: C. 122, § 28. CRS 53: § 103-1-5. C.R.S. 1963: § 1031-5. 38-28-106. Commissioners may divide land. The commissioners appointed by the court, with the approval of the court, may divide any lands involved in such action into lots or parcels, streets, and alleys and file a map or plat thereof in compliance with law and applicable ordinances. Source: L. 49: p. 544, § 6. CSA: C. 122, § 29. CRS 53: § 103-1-6. C.R.S. 1963: § 1031-6. 38-28-107. Sale of property - notice. If the commissioners report and the court finds that partition of the property cannot be made without manifest prejudice to the rights of any interested party, the court may direct the sale of such property at public sale upon such terms as the court may fix. Notice of such sale shall be given in the same manner as may be required by law for sales of real estate upon execution. Source: L. 49: p. 545, § 7. CSA: C. 122, § 30. CRS 53: § 103-1-7. C.R.S. 1963: § 1031-7. Cross references: For sale of real estate upon execution, see § 13-56-201. Colorado Revised Statutes 2019 Page 296 of 707 Uncertified Printout 38-28-108. Report - confirmation - distribution. The person making such sale shall make report thereof to the court for confirmation, and upon confirmation, the court shall direct the execution of a proper instrument of conveyance to the purchaser. The court shall direct the distribution of the net proceeds of such sale and any undistributed income from such property among the persons entitled thereto. Source: L. 49: p. 545, § 8. CSA: C. 122, § 31. CRS 53: § 103-1-8. C.R.S. 1963: § 1031-8. 38-28-109. Compensation of commissioners - fees and costs. The court shall fix the compensation of the commissioners and the person making the sale and may order the payment thereof, with costs, expenses, and attorney's fees, out of the proceeds of such sale or make any other order which it deems best for the payment of such compensation, fees, and costs. Source: L. 49: p. 545, § 9. CSA: C. 122, § 32. CRS 53: § 103-1-9. C.R.S. 1963: § 1031-9. 38-28-110. Powers of court. The court at any time may make such orders as it may deem necessary to promote the ends of justice to completely adjudicate every question and controversy concerning the title, rights, and interest of all persons whether in being or not, known or unknown, and may direct the payment and discharge of liens and have the property sold free from any lien or may apportion any lien among the persons to whom the partition is made. Source: L. 49: p. 545, § 10. CSA: C. 122, § 33. CRS 53: § 103-1-10. C.R.S. 1963: § 103-1-10. MANUFACTURED HOMES ARTICLE 29 Titles to Manufactured Homes Editor's note: The substantive provisions of this article were located in part 1 of article 6 of title 42 prior to 1983. Cross references: For certificates of title to motor vehicles, see the "Certificate of Title Act", part 1 of article 6 of title 42. PART 1 Colorado Revised Statutes 2019 Page 297 of 707 Uncertified Printout TITLES TO MANUFACTURED HOMES 38-29-101. Short title. This part 1 shall be known and may be cited as the "Titles to Manufactured Homes Act". Source: L. 83: Entire article added, p. 1448, § 1, effective June 15. L. 2008: Entire section amended, p. 442, § 1, effective July 1. 38-29-102. Definitions. As used in this article, unless the context otherwise requires: (1) "Authorized agent" means the county clerk and recorder in each of the counties of the state, except in the city and county of Denver, and therein the manager of revenue, or such other official of the city and county of Denver as may be appointed by the mayor to perform functions related to the registration of manufactured homes, is the authorized agent. (1.5) "Clerk and recorder" means the clerk and recorder of any county or city and county in the state of Colorado. (2) "Dealer" means any person, firm, partnership, corporation, or association licensed under the laws of this state to engage in the business of buying, selling, exchanging, or otherwise trading in manufactured homes. (3) "Department" means the department of revenue. (4) "Director" means the executive director of the department of revenue. (5) "Home" means any manufactured home as defined in subsection (6) of this section. (6) "Manufactured home" means a preconstructed building unit or combination of preconstructed building units that is constructed in compliance with the federal manufactured home construction safety standard, as defined in section 24-32-3302 (13), C.R.S. "Manufactured home" shall also include a mobile home, as defined in section 24-32-3302 (24), C.R.S. (7) "Manufacturer" means a person, firm, partnership, corporation, or association engaged in the manufacture of new manufactured homes. (8) Repealed. (9) "Mortgages" or "mortgage" or "chattel mortgage" means chattel mortgages, conditional sales contracts, or any other like instrument intended to operate as a mortgage or to create a lien on a manufactured home as security for an undertaking of the owner thereof or some other person; except that, as used in part 2 of this article, "mortgage" also includes mortgages, deeds of trust, and other liens on real property. (10) "Owner" means any person, association of persons, firm, or corporation in whose name the title to a manufactured home is registered. (11) "Person" means a natural person, association of persons, firm, partnership, or corporation. (12) "State" includes the territories and the federal districts of the United States. (13) "Verification of application form" means the form generated by an authorized agent upon receipt of a properly completed application for title submitted in accordance with section 38-29-107. Colorado Revised Statutes 2019 Page 298 of 707 Uncertified Printout Source: L. 83: Entire article added, p. 1448, § 1, effective June 15. L. 89: (6) amended and (8) repealed, pp. 729, 731, §§ 35, 40, effective July 1. L. 2003: (1) amended, p. 562, § 1, effective July 1. L. 2008: (1.5) and (13) added and (6) and (9) amended, p. 442, § 2, effective July 1. 38-29-103. Application. The provisions of this article shall apply to manufactured homes as defined in section 38-29-102 (6). Source: L. 83: Entire article added, p. 1449, § 1, effective June 15. 38-29-104. Administration. The director is charged with the duty of administering this part 1. For that purpose he or she is vested with the power to make such reasonable rules, prepare, prescribe, and require the use of such forms, and provide such procedures as may be reasonably necessary or essential to the efficient administration of this part 1. Source: L. 83: Entire article added, p. 1449, § 1, effective June 15. L. 2008: Entire section amended, p. 443, § 3, effective July 1. 38-29-105. Authorized agents. The county clerk and recorder in each of the counties of the state, except in the city and county of Denver the manager of revenue or such other official of the city and county of Denver as may be appointed by the mayor to perform functions related to the registration of manufactured homes, is designated to be the authorized agent of the director and, under the direction of the director, is charged with the administration of the terms and provisions of this article and the rules that may from time to time be adopted for the administration thereof in the county in which such authorized agent holds office. Source: L. 83: Entire article added, p. 1449, § 1, effective June 15. L. 2003: Entire section amended, p. 562, § 2, effective July 1. 38-29-106. Sale or transfer of manufactured home. Except as provided in section 3829-114, no person shall sell or otherwise transfer a manufactured home to a purchaser or transferee thereof without delivering to such purchaser or transferee the certificate of title to such home, duly transferred in the manner prescribed in section 38-29-112, and no purchaser or transferee shall acquire any right, title, or interest in and to a manufactured home purchased by him unless and until he obtains from the transferor the certificate of title thereto, duly transferred to him in accordance with the provisions of this article. Source: L. 83: Entire article added, p. 1449, § 1, effective June 15. 38-29-107. Applications for certificates of title. (1) In any case under the provisions of this article wherein a person who is entitled to a certificate of title to a manufactured home is Colorado Revised Statutes 2019 Page 299 of 707 Uncertified Printout required to make formal application to the director therefor, such applicant shall make application upon a form provided by the director in which appears a description of the manufactured home, including the manufacturer and model thereof, the manufacturer's number, the date on which said manufactured home was first sold by the dealer or manufacturer thereof to the initial user thereof, and a description of any other distinguishing mark, number, or symbol placed on said home by the manufacturer thereof for identification purposes, as may by rule be required by the director. Such application shall also show the applicant's source of title and the new or resale price of said manufactured home, whichever is applicable, paid by such applicant and shall include a description of all known mortgages and liens upon said manufactured home, each including the name of the legal holder thereof, the amount originally secured, the amount outstanding on the obligation secured at the time such application is made, the name of the county or city and county and state in which such mortgage or lien instrument is recorded or filed, and proof of the fact that no property taxes for previous years are due on such manufactured home. Such proof shall be a certificate of taxes, or an authentication of paid ad valorem taxes, issued by the county treasurer of the county in which the manufactured home is located. Such application shall be affirmed by a statement signed by the applicant and shall contain or be accompanied by a written declaration that it is made under the penalties of perjury in the second degree, as defined in section 18-8-503, C.R.S. (2) In any case in which the manufactured home was affixed to the ground prior to July 1, 2008, and a certificate of permanent location was not filed and recorded, a person who is entitled to a certificate of title to a manufactured home shall make formal application to the director upon a form provided by the director. As part of the application, in addition to any information required pursuant to subsection (1) of this section, the applicant shall provide an affidavit of real property, a statement that the identification number has been verified pursuant to section 38-29-122 (3)(a), a certificate of removal, and a copy of all deeds recorded since the home was affixed to the ground. The director shall accept these documents as sufficient evidence of the applicant's proof of ownership of the manufactured home. (3) (a) In any case in which the manufactured home was affixed to the ground after July 1, 2008, and a certificate of permanent location was filed and recorded, a person who is entitled to a certificate of title to a manufactured home shall make formal application to the director upon a form provided by the director. As part of the application, in addition to any information required pursuant to subsection (1) of this section, the applicant shall provide a copy of the recorded certificate of permanent location, a certificate of removal, a statement that the identification number has been verified pursuant to section 38-29-122 (3)(a), and a copy of all deeds recorded since the home was affixed to the ground. The director shall accept these documents as sufficient evidence of the applicant's proof of ownership of the manufactured home. (b) In any case in which a manufactured home occupies real property subject to a longterm lease that has an express term of at least ten years, the manufactured home was affixed to the ground after July 1, 2008, and a certificate of permanent location was filed and recorded, a person who is entitled to a certificate of title to a manufactured home shall make formal Colorado Revised Statutes 2019 Page 300 of 707 Uncertified Printout application to the director upon a form provided by the director. As part of the application, in addition to any information required pursuant to subsection (1) of this section, the applicant shall provide a copy of the recorded certificate of permanent location, a statement that the identification number has been verified pursuant to section 38-29-122 (3)(a), and a copy of the recorded long-term lease. The director shall accept these documents as sufficient evidence of the applicant's proof of ownership of the manufactured home. Source: L. 83: Entire article added, p. 1449, § 1, effective June 15. L. 89: Entire section amended, p. 1570, § 2, effective January 1, 1990. L. 90: Entire section amended, p. 1687, § 1, effective May 31. L. 91: Entire section amended, p. 1696, § 4, effective July 1. L. 2009: Entire section amended, (SB 09-040), ch. 9, p. 63, § 3, effective July 1. 38-29-108. Where application for certificates of title made - procedure. (1) An application for a certificate of title upon the sale, transfer, or movement into the state of any manufactured home that does not become real property pursuant to section 38-29-114 (2) or section 38-29-117 (6) shall be directed to the director and filed with the authorized agent of the county or city or city and county in which such manufactured home is to be located. Upon sale or transfer, an application for a certificate of title on a manufactured home shall be made within forty-five days of the receipt of a manufacturer's certificate or statement of origin or its equivalent. The authorized agents shall forward copies of all such applications to the county assessor. Any person, other than an individual selling a manufactured home used as his residence, who receives a commission or other valuable consideration for the transfer or sale of a manufactured home shall fulfill the application and notice requirements of this subsection (1). (2) Repealed. Source: L. 83: Entire article added, p. 1450, § 1, effective June 15. L. 84: (2) repealed, p. 978, § 1, effective March 29. L. 89: (1) amended, p. 729, § 36, effective July 1. 38-29-109. Director may refuse certificate, when. The director shall use reasonable diligence in ascertaining whether the facts stated in any application and facts contained in other documents submitted to him with said application are true and, in appropriate cases, may require the applicant to furnish other and additional information regarding his ownership of the manufactured home and his right to have issued to him a certificate of title therefor. He may refuse to issue a certificate of title to such home if from his investigation he determines that the applicant is not entitled thereto. Source: L. 83: Entire article added, p. 1450, § 1, effective June 15. 38-29-110. Certificates of title - contents. (1) All certificates of title to manufactured homes issued under the provisions of this article shall be subscribed by the director, or by some duly authorized officer or employee in the department in the name, place, and stead of the Colorado Revised Statutes 2019 Page 301 of 707 Uncertified Printout director, to which shall be affixed the seal of the department. Such certificate shall be mailed to the applicant, except as provided in section 38-29-111, and information of the facts therein appearing and concerning the issuance thereof shall be retained by the director and appropriately indexed and filed in his office. The certificate shall be in such form as the director may prescribe and shall contain, in addition to other information which he may by rule from time to time require, the manufacturer and model of the manufactured home for which said certificate is issued, the date on which said home therein described was first sold by the manufacturer or dealer to the initial user thereof, where such information is available, together with the serial number thereof, if any, and a description of such other marks or symbols as may be placed upon the home by the manufacturer thereof for identification purposes. (2) Beginning January 1, 1983, there shall be issued a distinctive certificate of title identifying the home as a manufactured home. Any person in whose name a certificate of title to a mobile home, as defined in section 38-29-102 (8), was issued prior to January 1, 1983, and which title is free and clear of all encumbrances, may apply to the director or one of his authorized agents for a distinctive manufactured home certificate of title, accompanied by the fee required in section 38-29-138 to be paid for the issuance of a duplicate certificate of title; whereupon, a distinctive certificate of title shall be issued and disposition thereof made as required in this article. Source: L. 83: Entire article added, p. 1450, § 1, effective June 15. Editor's note: Section 38-29-102 (8), which is referenced in subsection (2), was repealed by L. 89, p. 731, § 40, effective July 1, 1989. 38-29-111. Disposition of certificates of title. (1) All certificates of title issued by the director shall be disposed of by him in the following manner: (a) If it appears from the records in the director's office and from an examination of the certificate of title that the manufactured home therein described is not subject to a mortgage filed subsequent to August 1, 1949, or if such home is encumbered by a mortgage filed in any county of a state other than the state of Colorado, the certificate of title shall be delivered to the person who therein appears to be the owner of the home described, or such certificate shall be mailed to the owner thereof at his address as the same may appear in the application, the certificate of title, or other records in the director's office. (b) If it appears from the records in the office of the director and from the certificate of title that the manufactured home therein described is subject to one or more mortgages filed subsequent to August 1, 1949, the director shall deliver the certificate of title issued by him to the mortgagee named therein or the holder thereof whose mortgage was first filed in the office of an authorized agent or shall mail the same to such mortgagee or holder at his address as the same appears in the certificate of title to said manufactured home. Source: L. 83: Entire article added, p. 1451, § 1, effective June 15. Colorado Revised Statutes 2019 Page 302 of 707 Uncertified Printout 38-29-112. Certificate of title - transfer. (1) Upon the sale or transfer of a manufactured home for which a certificate of title has been issued, the person in whose name said certificate of title is registered, if he is other than a dealer, shall, in his own person or by his duly authorized agent or attorney, execute a formal transfer of the home described in the certificate, which transfer shall be affirmed by a statement signed by the person in whose name said certificate of title is registered or by his duly authorized agent or attorney and shall contain or be accompanied by a written declaration that it is made under the penalties of perjury in the second degree, as defined in section 18-8-503, C.R.S. The purchaser or transferee, within thirty days thereafter, shall present such certificate, duly transferred, together with his application for a new certificate of title to the director or one of his authorized agents, accompanied by the fee required in section 38-29-138 to be paid for the issuance of a new certificate of title; whereupon, a new certificate of title shall be issued and disposition thereof made as required in this article. (1.3) Prior to the sale or transfer of a manufactured home for which a certificate of title has been issued, a holder of a mortgage that is the legal holder of certificate of title shall provide a copy of the certificate of title to any title insurance agent, title insurance company, or financial institution requesting information related to the payoff of the mortgage within fourteen days of the request. (1.5) The purchaser or transferee of a manufactured home that becomes permanently affixed at an existing site or is transported to a site and is permanently affixed to the ground so that it is no longer capable of being drawn over the public highways shall present a certificate of transfer as required in subsection (1) of this section, together with his or her application for purging a manufactured home title and a certificate of permanent location, to the authorized agent of the county or city or city and county in which such manufactured home is located. The manufactured home shall become real property upon the filing and recording of the certificate of permanent location in accordance with section 38-29-202. The provisions of articles 30 to 44 of this title and of any other law of this state shall be applicable to manufactured homes that have become real property pursuant to this subsection (1.5) and to instruments creating, disposing of, or otherwise affecting such real property wherever such provisions would be applicable to estates, rights, and interests in land or to instruments creating, disposing of, or otherwise affecting estates, rights, and interest in land. The manufactured home for which a Colorado certificate of title has been issued shall continue to be valued and taxed separately from the land on which it sits until such time that the manufactured home becomes real property pursuant to this subsection (1.5). (1.7) (a) If the conditions set forth in paragraph (b) of this subsection (1.7) are met, the legal holder of the certificate of title, within forty-five days, shall deliver to the title insurance agent who is the settlement agent related to the sale of the manufactured home the certificate of title or evidence that the holder has lost the certificate of title and requested a duplicate from the department. The holder shall mail or otherwise deliver the duplicate certificate of title to the title insurance agent within five business days of receipt from the department. Upon receipt from the holder, the title insurance agent shall present the certificate of title to the person in whose name Colorado Revised Statutes 2019 Page 303 of 707 Uncertified Printout the certificate of title is issued or his or her authorized agent or attorney to allow such person to execute a formal transfer as required by subsection (1) of this section. (b) The provisions of paragraph (a) of this subsection (1.7) shall apply if: (I) A title insurance agent acts as a settlement agent related to the sale of a manufactured home; (II) The manufactured home that is sold is the subject of one or more mortgages that have been filed pursuant to section 38-29-128; and (III) All holders of a mortgage on the manufactured home that have been filed pursuant to section 38-29-128 have been paid in full from the proceeds of the sale. (2) Any person who violates any of the provisions of subsection (1) of this section is guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not less than two hundred fifty dollars nor more than one thousand dollars, or by imprisonment in the county jail for not less than ten days nor more than six months, or by both such fine and imprisonment. (3) Any person who violates the provisions of subsection (1.3) or (1.7) of this section shall be liable to an injured person for any actual economic damages caused by the violation, to be recovered in a civil action in a court of competent jurisdiction. Source: L. 83: Entire article added, p. 1451, § 1, effective June 15. L. 89: (1.5) added, p. 729, § 37, effective July 1; (1) amended, p. 1571, § 3, effective January 1, 1990. L. 91: (2) amended, p. 1696, § 5, effective July 1. L. 2004: (1.3), (1.7), and (3) added and (1.5) amended, p. 866, § 1, effective August 4. L. 2008: (1.5) amended, p. 443, § 4, effective July 1. 38-29-113. Lost certificates of title. (1) Upon the loss in the mails of any certificate of title to a manufactured home and accompanying papers which may be sent by an authorized agent to the director and upon an appropriate application of the owner or other person entitled to such certificate of title directed to the authorized agent therefor, such certificate of title may be reissued bearing such notations respecting existing mortgages on the home therein described as the records of the authorized agent and of the director may indicate are unreleased and constitute an encumbrance upon the home, which certificate of title shall be issued without charge. (2) If the holder of any certificate of title loses, misplaces, or accidentally destroys any certificate of title to a manufactured home which he holds whether as the holder of a mortgage or as the owner of the home therein described, upon application therefor to the director, the director may issue a duplicate certificate of title as in other cases. (3) Upon the issuance of any duplicate certificate of title as provided in this section, the director shall note thereon every mortgage shown to be unreleased and the lien of which is in force and effect as may be disclosed by the records in his office and shall dispose of such certificate as in other cases. Source: L. 83: Entire article added, p. 1452, § 1, effective June 15. Colorado Revised Statutes 2019 Page 304 of 707 Uncertified Printout 38-29-114. New manufactured homes - bill of sale - certificate of title. (1) Upon the sale or transfer by a dealer of a new manufactured home, such dealer shall, upon the delivery thereof, make, execute, and deliver to the purchaser or transferee a good and sufficient bill of sale therefor, together with the manufacturer's certificate or statement of origin or the filing of a mortgage by the holder of such mortgage pursuant to section 38-29-128. Said bill of sale shall be affirmed by a statement signed by such dealer and shall contain or be accompanied by a written declaration that it is made under the penalties of perjury in the second degree, as defined in section 18-8-503, C.R.S., and the manufacturer's certificate or statement of origin shall be notarized. Both the bill of sale and the manufacturer's certificate or statement of origin shall be in such form as the director may prescribe, and shall contain, in addition to other information which he may by rule from time to time require, the manufacturer and model of the manufactured home so sold or transferred, the identification number placed upon the home by the manufacturer for identification purposes, the manufacturer's suggested retail price or the retail delivered price, and the date of the sale or transfer thereof, together with a description of any mortgage thereon given to secure the purchase price or any part thereof. Upon presentation of such a bill of sale to the director or one of his authorized agents, a new certificate of title for the home therein described shall be issued and disposition thereof made as in other cases. The transfer of a manufactured home which has been used by a dealer for the purpose of demonstration to prospective customers shall be made in accordance with the provisions of this section. (2) Any purchaser of a new manufactured home that is transported to a site and permanently affixed to the ground so that it is no longer capable of being drawn over the public highways shall not be required to procure a certificate of title thereto as is otherwise required by this article. The purchaser shall file a certificate of permanent location along with the manufacturer's certificate or statement of origin or its equivalent with the clerk and recorder for the county or city and county in which the new manufactured home is permanently affixed to the ground. The manufactured home shall become real property upon the filing and recording of such documents in accordance with section 38-29-202. The provisions of articles 30 to 44 of this title and of any other law of this state shall be applicable to manufactured homes that have become real property pursuant to this subsection (2) and to instruments creating, disposing of, or otherwise affecting such real property wherever such provisions would be applicable to estates, rights, and interests in land or to instruments creating, disposing of, or otherwise affecting estates, rights, and interests in land. Source: L. 83: Entire article added, p. 1452, § 1, effective June 15. L. 89: Entire section amended, p. 730, § 38, effective July 1; (1) amended, p. 1571, § 4, effective January 1, 1990. L. 2008: (2) amended, p. 443, § 5, effective July 1. 38-29-115. Sale to dealers - certificate need not issue. Upon the sale or transfer to a dealer of a manufactured home for which a Colorado certificate of title has been issued, formal transfer and delivery of the certificate of title thereto shall be made as in other cases; except that, Colorado Revised Statutes 2019 Page 305 of 707 Uncertified Printout so long as the home so sold or transferred remains in the dealer's inventory for sale and for no other purpose, such dealer shall not be required to procure the issuance of a new certificate of title thereto as is otherwise required in this article. Source: L. 83: Entire article added, p. 1452, § 1, effective June 15. 38-29-116. Transfers by bequest, descent, law. Upon the transfer of ownership of a manufactured home by a bequest contained in the will of the person in whose name the certificate of title is registered, or upon the descent and distribution upon the death intestate of the owner of such home, or upon the transfer by operation of law, as in proceedings in bankruptcy, insolvency, replevin, attachment, execution, or other judicial sale, or whenever such manufactured home is sold to satisfy storage or repair charges or repossession is had upon default in the performance of the terms of any mortgage, the director or an authorized agent, upon the surrender of the certificate of title, if the same is available, or upon presentation of such proof of ownership of such home as the director may reasonably require and upon presentation of an application for a certificate of title, as required in section 38-29-107, a new certificate of title may thereupon issue to the person shown by such evidence to be entitled thereto, and disposition shall be made as in other cases. Source: L. 83: Entire article added, p. 1453, § 1, effective June 15. 38-29-117. Certificates for manufactured homes registered in other states. (1) Whenever any resident of the state acquires the ownership of a manufactured home, located or to be located in the state of Colorado, by purchase, gift, or otherwise, for which a certificate of title has been issued under the laws of a state other than the state of Colorado, the person so acquiring such home upon acquiring the same shall make application to the director or his authorized agent for a certificate of title as in other cases. (2) If any dealer acquires the ownership by any lawful means whatsoever of a manufactured home, the title to which is registered under the laws of and in a state other than the state of Colorado, such dealer shall not be required to procure a Colorado certificate of title therefor so long as such home remains in the dealer's inventory for sale and for no other purpose. (3) Upon the sale by a dealer of a manufactured home, the certificate of title to which was issued in a state other than Colorado, the dealer shall immediately deliver to the purchaser or transferee such certificate of title from a state other than Colorado duly and properly endorsed or assigned to the purchaser or transferee, together with the dealer's statement, which shall contain or be accompanied by a written declaration that it is made under the penalties of perjury in the second degree, as defined in section 18-8-503, C.R.S., and which shall set forth the following: (a) That such dealer has warranted and, by the execution of such affidavit, does warrant to the purchaser or transferee and all persons claiming or who shall claim under, by, or through the named purchaser or transferee that, at the time of the sale, transfer, and delivery thereof by Colorado Revised Statutes 2019 Page 306 of 707 Uncertified Printout the dealer, the manufactured home therein described was free and clear of all liens and mortgages, except those which might otherwise appear therein; (b) That the home therein described is not stolen; and (c) That such dealer had good, sure, and adequate title thereto and full right and authority to sell and transfer the same. (4) If the purchaser or transferee of the said manufactured home accompanies his application for a Colorado certificate of title to such home with the affidavit required by subsection (3) of this section and the duly endorsed or assigned certificate of title from a state other than Colorado, a Colorado certificate of title therefor may issue in the same manner as upon the sale or transfer of a manufactured home for which a Colorado certificate of title has been issued. Upon the issuance by the director of such certificate of title, he shall dispose of the same as provided in section 38-29-111. (5) Each dealer, on or before the fifteenth day of each month, on a form to be provided therefor, shall prepare, subscribe, and send to the auto theft division of the Colorado state patrol a complete description of each manufactured home held by such dealer during the preceding calendar month, or any part thereof, the certificate of title to which was issued by a state other than the state of Colorado or which home was registered under the laws of a state other than the state of Colorado and for which no application for a Colorado certificate of title has been made as provided in this section. (6) If any person acquires the ownership in a manufactured home for which a certificate of title has been issued under the laws of a state other than the state of Colorado and such home is transported to a site where it is permanently affixed to the ground so that it is no longer capable of being drawn over the public highways, such person shall not be required to procure a new certificate of title as is otherwise required by this article. The owner shall file a certificate of permanent location along with the certificate of title or the manufacturer's certificate or statement of origin or its equivalent with the clerk and recorder for the county or city and county in which the manufactured home is permanently affixed to the ground. The manufactured home shall become real property upon the filing and recording of such documents in accordance with section 38-29-202. The provisions of articles 30 to 44 of this title and of any other law of this state shall be applicable to manufactured homes that have become real property pursuant to this subsection (6) and to instruments creating, disposing of, or otherwise affecting such real property wherever such provisions would be applicable to estates, rights, and interests in land or to instruments creating, disposing of, or otherwise affecting estates, rights, and interests in land. Source: L. 83: Entire article added, p. 1453, § 1, effective June 15. L. 89: (6) added, p. 730, § 39, effective July 1; IP(3) amended, p. 1572, § 5, effective January 1, 1990. L. 2008: (6) amended, p. 444, § 6, effective July 1. 38-29-118. Surrender and cancellation of certificate - purge of certificate - penalty for violation. (1) The owner of any manufactured home for which a Colorado certificate of title has been issued, upon the destruction or dismantling of said manufactured home or upon its Colorado Revised Statutes 2019 Page 307 of 707 Uncertified Printout being sold or otherwise disposed of as salvage, shall surrender his or her certificate of title thereto to the director with the request that such certificate of title be cancelled and shall submit a certificate of destruction as set forth in section 38-29-204, and such certificate of title may thereupon be cancelled. Any person who violates any of the provisions of this subsection (1) commits a class 1 petty offense and, upon conviction thereof, shall be punished as provided in section 18-1.3-503, C.R.S. (2) The owner of any manufactured home for which a Colorado certificate of title has been issued, upon its being permanently affixed to the ground so that it is no longer capable of being drawn over the public highways, shall surrender his or her certificate of title thereto and file with the authorized agent of the county or city and county in which such manufactured home is located a request for purging of the manufactured home title and a certificate of permanent location. The manufactured home shall become real property upon the filing and recording of the certificate of permanent location in accordance with section 38-29-202. The provisions of articles 30 to 44 of this title and of any other law of this state shall be applicable to manufactured homes that have become real property pursuant to this subsection (2) and to instruments creating, disposing of, or otherwise affecting such real property wherever such provisions would be applicable to estates, rights, and interests in land or to instruments creating, disposing of, or otherwise affecting estates, rights, and interests in land. The manufactured home for which a Colorado certificate of title has been issued shall continue to be valued and taxed separately from the land on which it sits until such time that the manufactured home becomes real property pursuant to this subsection (2). Source: L. 83: Entire article added, p. 1454, § 1, effective June 15. L. 2002: (1) amended, p. 1554, § 339, effective October 1. L. 2004: (2) amended, p. 867, § 2, effective August 4. L. 2008: Entire section amended, p. 444, § 7, effective July 1. Cross references: For the legislative declaration in the 2002 act amending subsection (1), see section 1 of chapter 318, Session Laws of Colorado 2002. 38-29-119. Furnishing bond for certificates. (1) In cases where the applicant for a certificate of title to a manufactured home is unable to provide the director or the director's authorized agent with a certificate of title thereto, duly transferred to such applicant, a bill of sale therefor, or other evidence of the ownership thereof that satisfies the director of the right of the applicant to have a certificate of title issued to him or her, as provided in section 38-29-110, a certificate of title for such home may, nevertheless, be issued by the director upon the applicant therefor furnishing the director with his or her statement, in such form as the director may prescribe. There shall appear a recital of the facts and circumstances by which the applicant acquired the ownership and possession of such home, the source of the title thereto, and such other information as the director may require to enable him or her to determine what liens and encumbrances are outstanding against such manufactured home, if any, the date thereof, the amount secured thereby, where said liens or encumbrances are of public record, if they are of Colorado Revised Statutes 2019 Page 308 of 707 Uncertified Printout public record, and the right of the applicant to have a certificate of title issued to him or her. In situations involving an abandoned manufactured home located on an applicant's real property, a copy of an order or judgment for possession obtained through a civil eviction proceeding, along with proof of efforts to notify, via certified mail, regular mail, and posting as otherwise required by law, the prior owner of the potential removal or transfer of title of the home, as well as proof of ownership of the real property on which the home is located, shall constitute sufficient evidence of the applicant's right to a certificate of title for the home. The statement shall contain or be accompanied by a written declaration that it is made under the penalties of perjury in the second degree, as defined in section 18-8-503, C.R.S., and shall accompany the formal application for the certificate as required in section 38-29-107. (2) (a) If, from the affidavit of the applicant and such other evidence as may be submitted to him or her, the director finds that the applicant is the same person to whom a certificate of title for said home has previously been issued or that a certificate of title should be issued to the applicant, such certificate may be issued, in which event disposition thereof shall be made as in other cases. Except as provided by paragraph (b) of this subsection (2), no certificate of title shall be issued as provided in this section unless and until the applicant furnishes evidence of a savings account, deposit, or certificate of deposit meeting the requirements of section 11-35-101, C.R.S., or a good and sufficient bond with a corporate surety, to the people of the state of Colorado, in an amount equal to twice the actual value of the manufactured home according to the assessor's records, as of the time application for the certificate is made, conditioned that the applicant and his or her surety shall hold harmless any person who suffers any loss or damage by reason of the issuance thereof. (b) An applicant shall not be required to furnish surety pursuant to this subsection (2) for a manufactured home that is twenty-five years old or older, if the applicant: (I) Provides proof that no property taxes for previous years are due for the manufactured home; (II) Has had a manufactured home identification inspection performed on the manufactured home; and (III) Presents the information required in subsection (1) of this section with the title application, accompanied by the written declaration set forth therein. (c) If any person suffers any loss or damage by reason of the issuance of the certificate of title as provided in this section, such person shall have a right of action against the applicant and, if applicable, the surety on his or her bond. The person who has suffered a loss or damage may proceed against the applicant, the surety, or against both the applicant and the surety. Source: L. 83: Entire article added, p. 1454, § 1, effective June 15. L. 89: (1) amended, p. 1572, § 6, effective January 1, 1990. L. 90: (1) amended, p. 1840, § 18, effective May 31. L. 2008: (2) amended, p. 445, § 8, effective July 1. L. 2009: Entire section amended, (SB 09-040), ch. 9, p. 64, § 4, effective July 1. Colorado Revised Statutes 2019 Page 309 of 707 Uncertified Printout 38-29-120. Where to apply for certificate of title. Except as may be otherwise provided by rule of the director, it is unlawful for any person who is a resident of the state to procure a certificate of title to a manufactured home in any county of this state other than the county in which such home is to be used as a residence. Any person who violates any of the provisions of this section or any rule of the director relating thereto, made pursuant to the authority conferred upon him in this article, is guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not less than fifty dollars nor more than one hundred dollars, or by imprisonment in the county jail for not less than ten days nor more than six months, or by both such fine and imprisonment. Source: L. 83: Entire article added, p. 1455, § 1, effective June 15. 38-29-121. Altering or using altered certificate. Any person who alters or forges or causes to be altered or forged any certificate of title issued by the director pursuant to the provisions of this article, or any written transfer thereof, or any other notation placed thereon by the director or under his or her authority respecting the mortgaging of the manufactured home therein described or who uses or attempts to use any such certificate for the transfer thereof, knowing the same to have been altered or forged, commits a class 6 felony and shall be punished as provided in section 18-1.3-401, C.R.S. Source: L. 83: Entire article added, p. 1455, § 1, effective June 15. L. 89: Entire section amended, p. 851, § 139, effective July 1. L. 2002: Entire section amended, p. 1554, § 340, effective October 1. Cross references: For the legislative declaration in the 2002 act amending this section, see section 1 of chapter 318, Session Laws of Colorado 2002. 38-29-122. Substitute manufactured home identification numbers - inspection. (1) Any person required to make an application for a certificate of title to a manufactured home shall use the identification number placed upon the home by the manufacturer thereof or an identification number assigned to the home by the department. The certificate of title issued by the department shall use the identification number assigned to the manufactured home. (2) On and after February 25, 1954, the identification number provided for in this section shall be accepted in lieu of any serial number provided for by law prior to said date. (3) (a) The department may designate a manufactured home identification inspector to physically inspect a manufactured home in order to verify the following information: The identification number, the make of the manufactured home, the year of manufacture of the manufactured home, and such other information as may be required by the department. A manufactured home identification inspector may charge a fee for the inspection; except that such fee shall not exceed the reasonable costs related to the inspection. A manufactured home identification inspector shall notify the owner of the amount of the fee before commencing any Colorado Revised Statutes 2019 Page 310 of 707 Uncertified Printout verification activities. If the manufactured home identification inspector determines that the manufactured home identification number has been removed, changed, altered, or obliterated, the owner shall request that the department assign a distinguishing number to the manufactured home pursuant to section 38-29-123. (b) The department may designate one or more of the following persons to be a manufactured home identification inspector charged with the functions set forth in paragraph (a) of this subsection (3): (I) An authorized agent as defined in section 38-29-102 (1) or a person designated by such agent; (II) A Colorado law enforcement officer; (III) A person registered to sell manufactured homes pursuant to section 24-32-3323, C.R.S.; or (IV) A county assessor. Source: L. 83: Entire article added, p. 1455, § 1, effective June 15. L. 2009: (3) added, (SB 09-040), ch. 9, p. 65, § 5, effective July 1. 38-29-123. Assignment of a special manufactured home identification number by the department of revenue. The department is authorized to assign a distinguishing number to any manufactured home whenever there is no identifying number thereon or such number has been destroyed, obliterated, or mutilated. In such cases, the department shall provide a form on which the distinguishing number has been assigned to the manufactured home. The distinguishing number shall be affixed to the manufactured home in the door frame or fuse box or as determined by the department. The distinguishing number shall then be the manufactured home identification number. Such manufactured home shall be titled under such distinguishing number in lieu of the former number or absence thereof, or in the event that the manufactured home is affixed to the ground so that it is no longer capable of being drawn over the public highways, the owner shall file the form provided by the department on which the distinguishing number has been assigned with the clerk and recorder for the county or city and county in which the manufactured home is located. The clerk and recorder shall file and record such form in his or her office. Source: L. 83: Entire article added, p. 1456, § 1, effective June 15. L. 2009: Entire section amended, (SB 09-040), ch. 9, p. 66, § 6, effective July 1. 38-29-124. Amended certificate to issue, when. If the owner of any manufactured home for which a Colorado certificate of title has been issued replaces any part of said home on which appears the identification number or symbol described in the certificate of title and by which said home is known and identified, by reason whereof such identification number or symbol no longer appears thereon, or incorporates the part containing the identification number or symbol into a manufactured home other than the one for which the original certificate of title Colorado Revised Statutes 2019 Page 311 of 707 Uncertified Printout was issued, immediately thereafter, such owner shall make application to the director or one of his authorized agents for an assigned identification number and an amended certificate of title to such manufactured home. Source: L. 83: Entire article added, p. 1456, § 1, effective June 15. 38-29-125. Security interests upon manufactured homes. (1) Except as provided in this section, the provisions of the "Uniform Commercial Code", title 4, C.R.S., relating to the filing, recording, releasing, renewal, and extension of mortgages, as the term is defined in section 38-29-102 (9), shall not be applicable to manufactured homes. Any mortgage intended by the parties thereto to encumber or create a lien on a manufactured home, to be effective as a valid lien against the rights of third persons, purchasers for value without notice, mortgagees, or creditors of the owner, shall be filed for public record and the fact thereof noted on the owner's certificate of title or bill of sale substantially in the manner provided in section 38-29-128; and the filing of such mortgage with the authorized agent and the notation by him of that fact on the certificate of title or bill of sale substantially in the manner provided in section 38-29-128 shall constitute notice to the world of each and every right of the person secured by such mortgage. (2) The provisions of this section and section 38-29-128 shall not apply to any mortgage or security interest upon any manufactured home held for sale or lease which constitutes inventory as defined in section 4-9-102, C.R.S. As to such mortgages or security interests, the provisions of article 9 of title 4, C.R.S., shall apply, and perfection of such mortgages or security interests shall be made pursuant thereto, and the rights of the parties shall be governed and determined thereby. Source: L. 83: Entire article added, p. 1456, § 1, effective June 15. L. 2001: (2) amended, p. 1447, § 45, effective July 1. 38-29-126. Existing mortgages not affected. Nothing in this article shall be construed to impair the rights of the holder of any lien on a manufactured home created by mortgage or otherwise prior to August 1, 1949, which remains unreleased and the undertaking which the lien thereof secures remains undischarged. Nothing in this article shall be construed to relieve the holders of such liens of the duty to file such instruments respecting the undertakings secured thereby as may be required by law to preserve the liens of such mortgages unimpaired. Source: L. 83: Entire article added, p. 1456, § 1, effective June 15. 38-29-127. Foreign mortgages. No mortgage on a manufactured home, filed for record in any state other than the state of Colorado, shall be valid and enforceable against the rights of subsequent purchasers for value, creditors, or mortgagees having no actual notice of the existence thereof. If the certificate of title for such home, whether issued under the laws of this state or any other state, bears thereon any notation adequate to apprise a purchaser, creditor, or Colorado Revised Statutes 2019 Page 312 of 707 Uncertified Printout mortgagee of the existence of such mortgage at the time any third party acquires a right in the manufactured home covered thereby, such mortgage and the rights of the holder thereof shall be enforceable in this state the same and with like effect as though such mortgage were filed in the state of Colorado and noted on the certificate of title in the manner prescribed in section 38-29128. Source: L. 83: Entire article added, p. 1457, § 1, effective June 15. 38-29-128. Filing of mortgage. The holder of any mortgage on a manufactured home desiring to secure to himself the rights provided for in this article and to have the existence of the mortgage and the fact of the filing thereof for public record noted on the certificate of title to the manufactured home thereby encumbered shall present said mortgage or a duly executed copy or certified copy thereof and the certificate of title to the manufactured home encumbered to the authorized agent of the director in the county or city and county in which the manufactured home is located. Upon the receipt of said mortgage or executed copy or certified copy thereof and certificate of title, the authorized agent, if he is satisfied that the manufactured home described in the mortgage is the same as that described in the certificate of title, shall make and subscribe a certificate to be attached or stamped on the mortgage and on the certificate of title, in which shall appear the day and hour on which said mortgage was received for filing, the name and address of the mortgagee therein named and the name and address of the holder of such mortgage, if such person is other than the mortgagee named, the amount secured thereby, the date thereof, the day and year on which said mortgage was filed for public record, and such other information regarding the filing thereof in the office of the authorized agent as may be required by the director by rule, to which certificate the authorized agent shall affix his signature and the seal of his office. Source: L. 83: Entire article added, p. 1457, § 1, effective June 15. 38-29-129. Disposition of mortgages by agent. (1) The authorized agent upon receipt of the mortgage shall file the same in his office separately and apart from records affecting real property and personal property, other than manufactured homes, which he may by law be required to keep. Such mortgage shall be appropriately indexed and cross-indexed: (a) Under one or more of the following headings in accordance with such rules and regulations relating thereto as may be adopted by the director: (I) Manufacturer, manufacturer's number, or serial number of manufactured homes mortgaged; (II) The numbers of the certificates of title for manufactured homes mortgaged; (b) Under the name of the mortgagee, the holder of such mortgage, or the owner of such mortgaged home; or (c) Under such other system as the director may devise and determine to be necessary for the efficient administration of this article. Colorado Revised Statutes 2019 Page 313 of 707 Uncertified Printout (2) All records of mortgages affecting manufactured homes shall be public and may be inspected and copies thereof made, as is provided by law respecting public records affecting real property. Source: L. 83: Entire article added, p. 1457, § 1, effective June 15. 38-29-130. Disposition after mortgaging. Within forty-eight hours after a mortgage on a manufactured home has been filed in his office, the authorized agent shall mail to the director the certificate of title or bill of sale on which he has affixed his certificate respecting the filing of such mortgage. Upon the receipt thereof, the director shall note, on records to be kept and maintained by him in his office, the fact of the existence of the mortgage on such manufactured home and other information respecting the date thereof, the date of filing, the amount secured by the lien thereof, the name and address of the mortgagee and of the holder of the mortgage, if such person is other than the mortgagee, and such other information relating thereto as appears in the certificate of the authorized agent affixed to the certificate of title or bill of sale. The director shall thereupon issue a new certificate of title containing, in addition to the other matters and things required to be set forth in certificates of title, a description of the mortgage and all information respecting said mortgage and the filing thereof as may appear in the certificate of the authorized agent, and he shall thereafter dispose of said new certificate of title containing said notation as provided in section 38-29-111. Source: L. 83: Entire article added, p. 1458, § 1, effective June 15. 38-29-131. Release of mortgages. (1) Upon the payment or discharge of the undertaking secured by any mortgage on a manufactured home that has been filed for record and noted on the certificate of title in the manner prescribed in section 38-29-128, the legal holder of the certificate of title, in a place to be provided therefor, shall make and execute such notation of the discharge of the obligation and release of the mortgage securing the same and set forth therein such facts concerning the right of the holder to so release said mortgage as the director may require by appropriate rule, which satisfaction and release shall be affirmed by a statement signed by the legal holder of the certificate of title and shall contain or be accompanied by a written declaration that it is made under the penalties of perjury in the second degree, as defined in section 18-8-503, C.R.S. Thereupon, except as otherwise provided in section 38-29-112 (1.7), the holder of the mortgage so released shall dispose of the certificate of title as follows: (a) If it appears from an examination of the certificate of title that the manufactured home therein described is subject to an outstanding junior mortgage or mortgages filed for record subsequent to August 1, 1949, the holder shall deliver the certificate of title to the person so shown to be the holder of the mortgage which was filed earliest in point of time after the filing of the mortgage released or to the person or agent of the person shown to be the assignee or other legal holder of the undertaking secured thereby or shall mail the same to such mortgagee Colorado Revised Statutes 2019 Page 314 of 707 Uncertified Printout or holder thereof at his address as the same thereon appears. If such certificate is returned unclaimed, it shall thereupon be mailed to the director. (b) If it appears from an examination of the certificate of title that there are no other outstanding mortgages against the manufactured home therein described, filed for record subsequent to August 1, 1949, upon the release of such mortgage as provided in this section, the holder thereof shall deliver the certificate of title to the owner of the home therein described or shall mail the same to him at his address as the same may therein appear. If for any reason said certificate of title is not delivered to the owner of the home therein described or is returned unclaimed upon the mailing thereof, it shall thereupon be mailed to the director. Source: L. 83: Entire article added, p. 1458, § 1, effective June 15. L. 89: IP(1) amended, p. 1573, § 7, effective January 1, 1990. L. 2004: IP(1) amended, p. 868, § 3, effective August 4. 38-29-132. New certificate upon release of mortgage. Upon the release of any mortgage on a manufactured home, filed for record in the manner prescribed in section 38-29128, the owner of the home encumbered by such mortgage, the purchaser from or transferee of the owner thereof as appears on the certificate of title, or the holder of any mortgage the lien of which was junior to the lien of the mortgage released, whichever the case may be, upon the receipt of the certificate of title, as provided in section 38-29-131, shall deliver the same to the authorized agent who shall transmit the same to the director as in other cases. Upon the receipt by the director of the certificate of title bearing thereon the release and satisfaction of mortgage referred to in section 38-29-131, he shall make such notation on the records in his office as shall show the release of the lien of such mortgage, shall issue a new certificate of title to the manufactured home therein described, omitting therefrom all reference to the mortgage so released, and shall dispose of the new certificate of title in the manner prescribed in other cases. Source: L. 83: Entire article added, p. 1459, § 1, effective June 15. 38-29-133. Duration of lien of mortgage - extensions. (1) The duration of the lien of any mortgage on a manufactured home shall be for the full term of the mortgage, but the lien of the mortgage may be extended beyond the original term thereof for successive three-year periods during the term of the mortgage or any extension thereof upon the holder thereof presenting the certificate of title, on which the existence of the mortgage has been noted, to the authorized agent of the county wherein said mortgage is filed, together with a notarized written request for an extension of the mortgage or a written request that is made under the penalties of perjury in the second degree, as defined in section 18-8-503, C.R.S., in which shall appear a description of the undertaking secured, to what extent it has been discharged or remains unperformed, and such other and further information respecting the same as may be required by appropriate rule of the director to enable him or her to properly record such extension upon the director's records. Colorado Revised Statutes 2019 Page 315 of 707 Uncertified Printout (2) Upon receipt of a mortgage extension, the authorized agent shall make and complete a record of the extension and shall issue a new certificate of title on which the extension of the mortgage is noted. Thereafter the newly issued certificate of title shall be returned to the person shown thereon to be entitled thereto, the same as in other cases. If a mortgage noted on the certificate of title has not been released or extended after its maturity date, the owner of the manufactured home described in the certificate of title may request that any references to the mortgages shown on the records of the authorized agent be removed, and upon the request, the authorized agent shall remove such references. Source: L. 83: Entire article added, p. 1459, § 1, effective June 15. L. 2009: Entire section amended, (SB 09-040), ch. 9, p. 66, § 7, effective July 1. 38-29-134. Priority of mortgages. The liens of mortgages filed for record and noted on a certificate of title to a manufactured home, as provided in sections 38-29-128 and 38-29-135, shall take priority in the same order that the mortgages creating such liens were filed in the office of the authorized agent. Source: L. 83: Entire article added, p. 1459, § 1, effective June 15. 38-29-135. Second or other junior mortgages. (1) On and after July 1, 1977, any person who takes a second or other junior mortgage on a manufactured home for which a Colorado certificate of title has been issued may file said mortgage for public record and have the existence thereof noted on the certificate of title with like effect as in other cases, in the manner prescribed in this section. (2) Such second or junior mortgagee or the holder thereof shall file said mortgage with the authorized agent of the county wherein the manufactured home is located and shall accompany said mortgage with a written request to have the existence thereof noted on the certificate of title to the manufactured home covered thereby, subscribed by such mortgagee or holder, in which shall appear the names and addresses of the holders of all outstanding mortgages against the home described in said second or junior mortgage and the name and address of the person in possession of the certificate of title thereto. Upon the filing of such mortgage, the authorized agent shall note thereon the day and hour on which such mortgage was received by him and shall make and deliver a receipt therefor to the person filing the same. (3) The authorized agent, by registered mail, return receipt requested, shall make a written demand on the holder of the certificate of title, addressed to such person at his address as the same may appear in said written request, that such certificate be delivered to the authorized agent for the purpose of having noted thereon such second or junior mortgage. Within fifteen days after the receipt of such demand, the person holding such certificate shall either mail or deliver the same to such authorized agent or, if he no longer has possession thereof, shall so notify the agent and, if he knows, shall likewise inform him where and from whom such certificate may be procured. Upon the receipt of such certificate, the authorized agent shall Colorado Revised Statutes 2019 Page 316 of 707 Uncertified Printout complete his application for a new title and record the number thereof on the mortgage, as in the case of a first mortgage, and shall thereafter transmit the current certificate of title and application for a new certificate of title to the director. Upon the receipt thereof, the director, as in the case of a first mortgage, shall thereupon issue a new certificate of title on which the existence of all mortgages on the manufactured home, including such second or junior mortgage, have been noted, which certificate he shall dispose of as in other cases. (4) If any person lawfully in possession of a certificate of title to any manufactured home upon whom demand is made for the delivery thereof to the authorized agent omits, for any reason whatsoever, to deliver or mail the same to the authorized agent, such person shall be liable to the holder of such second or junior mortgage for all damage sustained by reason of such omission. Source: L. 83: Entire article added, p. 1459, § 1, effective June 15. 38-29-136. Validity of mortgage between parties. Nothing in this article shall be construed to impair the validity of a mortgage on a manufactured home between the parties thereto as long as no purchaser for value, mortgagee, or creditor without actual notice of the existence thereof has acquired an interest in the manufactured home described therein, notwithstanding that the parties to said mortgage have failed to comply with the provisions of this article. Source: L. 83: Entire article added, p. 1460, § 1, effective June 15. 38-29-137. Mechanics', warehouse, and other liens. Nothing in this article shall be construed to impair the rights of lien claimants arising under any mechanics' lien law in force and effect in this state or the lien of any warehouseman or any other person claimed for repairs on or storage of any manufactured home, when a mechanic's lien or storage lien has originated prior to the time any mortgage on said manufactured home has been filed for record, as provided in section 38-29-125, and such manufactured home has remained continuously in the possession of the person claiming such mechanic's lien or lien for storage, notwithstanding that no notation of such lien is made upon the certificate of title to the home in respect of which it is claimed. Source: L. 83: Entire article added, p. 1460, § 1, effective June 15. 38-29-138. Fees. (1) (a) Upon filing with the authorized agent any application for a certificate of title, the applicant shall pay to the agent a fee of seven dollars and twenty cents, which shall be disposed pursuant to section 42-6-138, C.R.S. (b) Repealed. (2) Upon the receipt by the authorized agent of any mortgage for filing under the provisions of section 38-29-128, the agent shall be paid such fees as are prescribed by law for the filing of like instruments in the office of the county clerk and recorder in the county or city Colorado Revised Statutes 2019 Page 317 of 707 Uncertified Printout and county in which such mortgage is filed and shall receive, in addition, a fee of seven dollars and twenty cents for the issuance or recording of the certificate of title and the notation of the existence of said mortgage. (3) Upon application to the authorized agent to have noted on a certificate of title the extension of any mortgage therein described and noted thereon, such authorized agent shall receive a fee of one dollar and fifty cents. (4) Upon the release and satisfaction of any mortgage and upon application to the authorized agent for the notation thereof on the certificate of title in the manner prescribed in section 38-29-131, such authorized agent shall be paid a fee of seven dollars and twenty cents, which shall be disposed pursuant to section 42-6-138, C.R.S. (5) For the issuance of any duplicate certificate of title, except as may be otherwise provided in this article, the agent shall be paid a fee of eight dollars and twenty cents, and, in all cases in which the department assigns a new identifying number to any manufactured home, the fee charged for such assignment shall be three dollars and fifty cents. (6) The fees provided for in subsections (1) and (2) of this section shall not apply to the issuance of a certificate of title for a tax-deferred mobile home pursuant to the provisions of section 39-3.5-105 (1)(b)(II), C.R.S. Source: L. 83: Entire article added, p. 1461, § 1, effective June 15. L. 88: (6) added, p. 1285, § 16, effective May 23. L. 2003: (1), (2), (4), and (5) amended, p. 1977, § 1, effective May 22. Editor's note: Subsection (1)(b)(III) provided for the repeal of subsection (1)(b), effective September 1, 2006. (See L. 2003, p. 1977.) 38-29-139. Disposition of fees. (1) All fees received by the authorized agent under the provisions of section 38-29-138 (1) and (2), upon application being made for a certificate of title, shall be disposed of pursuant to section 42-6-138 (1), C.R.S. (2) All fees collected by the authorized agent under the provisions of section 38-29-138 (5) shall be disposed of pursuant to section 42-6-138 (2), C.R.S. (3) All fees paid to the authorized agent under section 38-29-138 (3) for the filing or extension of any mortgage on a manufactured home filed in his or her office shall be kept and retained by said agent to defray the cost thereof and shall be disposed of by him or her as provided by law; except that fees for this service that may be paid to the authorized agent in the city and county of Denver shall, by such agent, be disposed of in the same manner as fees retained by him or her that were paid upon application being made for a certificate of title. Source: L. 83: Entire article added, p. 1461, § 1, effective June 15. L. 94: (1) and (2) amended, p. 2567, § 84, effective January 1, 1995. L. 2003: (3) amended, p. 1980, § 7, effective May 22. Colorado Revised Statutes 2019 Page 318 of 707 Uncertified Printout 38-29-140. Director's records to be public. All records in the director's office pertaining to the title to any manufactured home shall be public records and shall be subject to the provisions of section 42-1-206, C.R.S. This shall include any records regarding ownership of and mortgages on any manufactured home for which a Colorado certificate of title has been issued. Source: L. 83: Entire article added, p. 1461, § 1, effective June 15. 38-29-141. Penalties. (1) No person may: (a) Sell, transfer, or in any manner dispose of a manufactured home in this state without complying with the requirements of this article. (b) (Deleted by amendment, L. 89, p. 1573, § 8, effective January 1, 1990.) (2) Any person who violates any of the provisions of subsection (1) of this section for which no other penalty is expressly provided is guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not less than one hundred dollars nor more than five hundred dollars, or by imprisonment in the county jail for not less than ten days nor more than six months, or by both such fine and imprisonment. Source: L. 83: Entire article added, p. 1462, § 1, effective June 15. L. 89: Entire section amended, p. 1573, § 8, effective January 1, 1990. 38-29-141.5. False oath. Any person who makes any application for a certificate of title, written transfer thereof, satisfaction and release, oath, affirmation, affidavit, statement, report, or deposition required to be made or taken under any of the provisions of this article and who, upon such application, transfer, satisfaction and release, oath, affirmation, affidavit, statement, report, or deposition, swears or affirms willfully and falsely in a matter material to any issue, point, or subject matter in question, in addition to any other penalties provided in this article, is guilty of perjury in the second degree, as defined in section 18-8-503, C.R.S. Source: L. 89: Entire section added, p. 1573, § 9, effective January 1, 1990. 38-29-142. Repossession of manufactured home - owner must notify law enforcement agency - penalty. (1) If any mortgagee or his assignee or the agent of either repossesses a manufactured home because of default in the terms of a mortgage, the mortgagee or his assignee shall notify, either verbally or in writing, a law enforcement agency, as provided in this section, of the fact of such repossession, the name of the owner, and the name of the mortgagee or assignee. Such notification shall be made not later than twelve hours after the repossession occurs. If such repossession takes place in an incorporated city or town, the notification shall be made to the police department, town marshal, or other local law enforcement agency of such city or town, and, if such repossession takes place in the unincorporated area of a county, the notification shall be made to the county sheriff. Colorado Revised Statutes 2019 Page 319 of 707 Uncertified Printout (2) Any mortgagee of a manufactured home or his assignee who violates the provisions of this section is guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not less than fifty dollars nor more than one hundred dollars. Source: L. 83: Entire article added, p. 1462, § 1, effective June 15. 38-29-143. Change of location - penalty. (1) The owner shall file notice of any change of location within the county with the county assessor and the county treasurer or change of location from one county to another county with the county assessor and the county treasurer of each county within twenty days after such change of location occurs. For the purposes of this subsection (1), "owner" shall mean the owner at the time of the change of location. (2) Any person who fails to file notice of any change of location as required by subsection (1) of this section is guilty of a misdemeanor traffic offense and, upon conviction thereof, shall be punished by a fine of not less than one hundred dollars nor more than one thousand dollars. This shall be a strict liability offense. Source: L. 83: Entire article added, p. 1462, § 1, effective June 15. L. 91: (2) amended, p. 1696, § 6, effective July 1. PART 2 FILING AND RECORDING OF DOCUMENTS RELATED TO A MANUFACTURED HOME 38-29-201. Verification of application form - supporting materials. (1) In all instances under part 1 of this article in which an application for a certificate of title is filed with an authorized agent pursuant to section 38-29-107, the authorized agent, in his or her capacity as the clerk and recorder, shall file and record the documents set forth in subsection (2) of this section in his or her office. (2) (a) For an application for a certificate of title for a new manufactured home, the following documents shall be filed and recorded: (I) The manufacturer's certificate or statement of origin or its equivalent; and (II) (Deleted by amendment, L. 2009, (SB 09-040), ch. 9, p. 67, § 8, effective July 1, 2009.) (III) The verification of application form. (b) For an application for a certificate of title for which a bond is furnished pursuant to section 38-29-119 (2), the following documents shall be filed and recorded: (I) A copy of the written declaration required pursuant to section 38-29-119 (1); (II) A copy of the bond that was furnished; and (III) The verification of application form. Colorado Revised Statutes 2019 Page 320 of 707 Uncertified Printout (c) For all other applications for a certificate of title, the following documents shall be filed and recorded: (I) A copy of the certificate of title presented to the authorized agent, if any; and (II) The verification of application form. (3) A verification of application form shall comply with the federal "Driver's Privacy Protection Act of 1994", 18 U.S.C. sec. 2721 et seq. Source: L. 2008: Entire part added, p. 445, § 9, effective July 1. L. 2009: (2)(a) amended and (3) added, (SB 09-040), ch. 9, p. 67, § 8, effective July 1. 38-29-202. Certificate of permanent location. (1) (a) If a manufactured home is permanently affixed to the ground so that it is no longer capable of being drawn over the public highways on or after July 1, 2008, the owner of the manufactured home shall file a certificate of permanent location. (b) If the certificate of permanent location accompanies an application for purging a manufactured home title pursuant to section 38-29-112 (1.5) or 38-29-118 (2), the certificate shall be filed with the authorized agent for the county or city and county in which the manufactured home is located. For a manufactured home that occupies real property subject to a long-term lease that has an express term of at least ten years, a copy of the lease shall be filed along with the certificate. The authorized agent, in his or her capacity as the clerk and recorder, shall file and record the certificate of permanent location and, if applicable, the copy of the longterm lease in his or her office. (c) If the certificate of permanent location is received in accordance with section 38-29114 (2) or 38-29-117 (6), the certificate shall be filed with the clerk and recorder for the county or city and county in which the manufactured home is located. For a manufactured home that occupies real property subject to a long-term lease that has an express term of at least ten years, a copy of the lease shall be filed along with the certificate. The clerk and recorder shall file and record the certificate of permanent location, a copy of the bill of sale, a copy of the manufacturer's certificate or statement of origin or its equivalent, and, if applicable, the copy of the long-term lease in his or her office and destroy the original manufacturer's certificate or statement of origin or its equivalent. (d) At least one of the owners of the manufactured home, as reflected on the certificate of title, the bill of sale, or the manufacturer's certificate or statement of origin or its equivalent, must be an owner of record of the real property to which the manufactured home is to be affixed or permanently located; except that this paragraph (d) shall not apply to any manufactured home that occupies real property subject to a long-term lease that has an express term of at least ten years. (2) The property tax administrator shall establish the form of the certificate of permanent location. In addition to any other information that the administrator may require, the certificate shall include the following: (a) The name and mailing address of the owner of the manufactured home; Colorado Revised Statutes 2019 Page 321 of 707 Uncertified Printout (b) The name and mailing address of any holder of a mortgage on the manufactured home or on the real property to which the home has been affixed; (c) The identification number of the manufactured home and the certificate of title number, if applicable; (d) The manufacturer or make and year of the manufactured home; (e) Attached to the certificate of permanent location, a certificate of taxes due, or an authentication of paid ad valorem taxes, issued by the county treasurer of the county in which the manufactured home is located; (f) The legal description of the real property to which the manufactured home has been permanently affixed; (g) The name of the legal owner or owners of the land upon which the home is affixed; (h) The county or city and county in which the certificate of permanent location is filed; (i) Verification that the manufactured home is permanently affixed to the ground so that it is no longer capable of being drawn over the public highways in accordance with any applicable county or city and county codes or requirements; (j) Consent to the permanent location of the manufactured home by all holders of a security interest in the manufactured home; (k) An affirmative statement of relinquishment and release of all rights in the manufactured home by all holders of a security interest in the manufactured home; (l) An affirmative statement of relinquishment of all rights in the manufactured home by any owner on the certificate of title of the manufactured home who is not also an owner of the real property to which the manufactured home is to be affixed or permanently located. The provisions of this paragraph (l) shall not apply to any manufactured home that occupies real property subject to a long-term lease that has an express term of at least ten years. (l.5) For any manufactured home that occupies real property subject to a long-term lease that has an express term of at least ten years, an affirmative statement that all owners of the real property and the manufactured home consent to the affixation of the manufactured home to the real property and an acknowledgment that, upon such affixation and upon the filing and recording of the certificate of permanent location, the manufactured home will become a part of the real property, subject to the reversion of the manufactured home to the owners of the home upon termination of the long-term lease; and (m) An affirmative statement that all owners of the real property and the manufactured home consent to the affixation of the manufactured home to the real property and an acknowledgment that upon such affixation and upon the filing and recording of the certificate of permanent location the manufactured home will become a part of the real property and ownership shall be vested only in the title owners of the real property. Ownership in the manufactured home shall vest in the same parties and be subject to the same tenancies, encumbrances, liens, limitations, restrictions, and estates as the real property to which the manufactured home is affixed or permanently located. The provisions of this paragraph (m) shall not apply to any manufactured home that occupies real property subject to a long-term lease that has an express term of at least ten years. Colorado Revised Statutes 2019 Page 322 of 707 Uncertified Printout (3) The certificate of permanent location shall be acknowledged and shall contain or be accompanied by a written declaration that the statements made therein are made under the penalties of perjury in the second degree, as defined in section 18-8-503, C.R.S. Source: L. 2008: Entire part added, p. 446, § 9, effective July 1. L. 2009: (1)(b), (1)(c), (2)(i), and (2)(l) amended and (2)(l.5) added, (SB 09- 040), ch. 9, p. 67, § 9, effective July 1. 38-29-203. Certificate of removal. (1) (a) On or after July 1, 2008, a manufactured home shall not be removed from its permanent location unless the owner of the manufactured home files a certificate of removal. If a certificate of permanent location has not been previously filed and recorded for the manufactured home, the owner shall also file an affidavit of real property, described in section 38-29-208, along with the certificate of removal. (b) The certificate of removal and the affidavit of real property, if any, along with the application for a new certificate of title required in part 1 of this article, shall be filed with the authorized agent for the county or city and county in which the manufactured home is located. The authorized agent, in his or her capacity as the clerk and recorder, shall file and record the certificate of removal and the affidavit of real property in his or her office. (2) The property tax administrator shall establish the form of the certificate of removal. In addition to any other information that the administrator may require, the certificate shall include the following: (a) The name and mailing address of the owner of the manufactured home; (b) The name and mailing address of any holder of a mortgage on or lien against the real property on which the manufactured home was affixed or permanently located; (c) The identification number of the manufactured home; (d) The manufacturer or make and year of the manufactured home; (e) Attached to the certificate of removal, a certificate of taxes due, or an authentication of paid ad valorem taxes, issued by the county treasurer of the county in which the manufactured home is located; (f) The legal description of the real property from which the manufactured home was removed; and (g) Consent of all lienholders and a release by all holders of a mortgage, only to the extent that the mortgage or lien applies to the manufactured home, to allow the removal of the manufactured home from its permanent location. (2.5) (a) The provisions of this section shall apply to a manufactured home that occupies real property subject to a long-term lease that has an express term of at least ten years, except as set forth in paragraph (b) of this subsection (2.5). (b) A landlord evicting a tenant who owns a manufactured home that occupies real property subject to a long-term lease that has an express term of at least ten years may cause the home to be removed from its permanent location without the owner first filing a certificate of removal if, within twenty days after such removal, the landlord files a certificate of removal accompanied by a copy of the notice of judgment or order for possession allowing the eviction Colorado Revised Statutes 2019 Page 323 of 707 Uncertified Printout of the home and the address of the location to which the home has been moved. Such certificate of removal shall comply with subsection (5) of this section and include the information required in subsection (2) of this section; except that paragraphs (e) and (g) of said subsection (2) shall not apply. The landlord shall file the certificate of removal and the additional information with the authorized agent for the county or city and county from which the manufactured home was removed. (3) The consent of a mortgage or other lienholder on the certificate of removal shall serve as a full release of any interest against the manufactured home once the manufactured home is removed from the real property. The consent on the certificate of removal shall not release any interest of the mortgage or lienholder against the remaining real property. (4) If consent of any mortgagee or lienholder is not given, the owner may file a corporate surety bond or any other undertaking with the clerk of the district court of the county in which the real property to which the manufactured home was affixed is situated. The bond or undertaking shall be in an amount equal to one and one-half times the amount of the mortgage or lien and shall be approved by a judge of the district court with which the bond or undertaking is filed. The bond or undertaking shall be conditioned that, if the mortgagee or lienholder shall be finally adjudged to be entitled to recover upon the mortgage or lien, the principal or his sureties shall pay to the mortgagee or lienholder the amount of the indebtedness together with any interest, costs, and other sums which the mortgagee or lienholder would be entitled to recover upon foreclosure of the mortgage or lien. Upon the filing of a bond or undertaking, the mortgage or lien against the property shall be forthwith discharged and released in full, and the real property described in the bond or undertaking shall be released from the mortgage or lien and from any action brought to foreclose the mortgage or lien, and the bond or undertaking shall be substituted. The clerk of the district court with which the bond or undertaking has been filed shall issue a certificate of release that shall be recorded in the office of the clerk and recorder of the county in which the real property to which the manufactured home was affixed is situated, and the certificate of release shall show that the property has been released from the mortgage or lien and from any action brought to foreclose the mortgage or lien. (5) The certificate of removal shall be acknowledged and shall contain or be accompanied by a written declaration that the statements made therein are made under the penalties of perjury in the second degree, as defined in section 18-8-503, C.R.S. Source: L. 2008: Entire part added, p. 448, § 9, effective July 1. L. 2009: (2.5) added, (SB 09-040), ch. 9, p. 69, § 10, effective July 1. 38-29-204. Certificate of destruction. (1) (a) If a manufactured home is destroyed, dismantled, or sold or otherwise disposed of as salvage on or after July 1, 2008, the owner of the manufactured home or the person on whose real property the manufactured home is situated shall file a certificate of destruction. (b) If the certificate of destruction accompanies an application to cancel a certificate of title pursuant to section 38-29-118 (1), the certificate shall be filed with the authorized agent for Colorado Revised Statutes 2019 Page 324 of 707 Uncertified Printout the county or city and county in which the manufactured home is or was located. The authorized agent, in his or her capacity as the clerk and recorder, shall file and record the certificate of destruction in his or her office. (c) If an application to cancel a certificate of title is not required pursuant to section 3829-118 (1) because no certificate of title was ever issued or because the title has been purged, the certificate of destruction shall be filed with the county clerk and recorder for the county or city and county in which the manufactured home is or was located. The clerk and recorder shall file and record the certificate of destruction in his or her office. (d) (I) Notwithstanding any other provision of law, if a manufactured home has been deemed materially dangerous or materially hazardous, pursuant to local building or health codes by a governmental entity, the person on whose real property the manufactured home is situated may file and record a certificate of destruction without attaching a certificate of taxes due or an authentication of paid ad valorem taxes and without surrendering a certificate of title or filing an application to cancel a certificate of title. Any certificate of destruction filed and recorded pursuant to this paragraph (d) shall be accompanied by the evidence of violation. (II) The certificate of destruction and the evidence of violation shall be filed and recorded with the clerk and recorder for the county or city and county in which the manufactured home is or was located. The clerk and recorder shall file and record the certificate of destruction and the evidence of violation in his or her office. (III) For purposes of this paragraph (d): (A) "Evidence of violation" means a notice and order from a governmental entity that a manufactured home has been deemed materially dangerous or materially hazardous pursuant to local building or health codes and that all applicable cure periods have expired. (B) "Governmental entity" means any federal agency, the state, or any county, town, city, or city and county. (2) The property tax administrator shall establish the form of the certificate of destruction. In addition to any other information that the administrator may require, the certificate shall include the following: (a) The name and mailing address of the owner of the manufactured home; (b) The name and mailing address of each holder of a security interest in the manufactured home and all holders of a lien against the real property on which the manufactured home was affixed or permanently located; (c) The identification number of the manufactured home; (d) The manufacturer or make and year of the manufactured home; (e) Attached to the certificate of destruction, a certificate of taxes due, or an authentication of paid ad valorem taxes, issued by the county treasurer of the county in which the manufactured home is located; (f) The legal description of the real property on which the manufactured home was affixed or permanently located prior to destruction; (g) A book and page or reception number reference for a certificate of permanent location that was previously filed related to the manufactured home, if any; Colorado Revised Statutes 2019 Page 325 of 707 Uncertified Printout (h) Consent of all lienholders to the destruction of the manufactured home, or proof that a request for such consent was sent by certified mail to such lienholders, along with proof that a copy of the request for such consent was mailed to the owner if the certificate of destruction is filed by the person on whose real property the manufactured home is situated, at their last-known address and a notarized declaration, signed under penalty of perjury, that no response was received from any such lienholders within thirty days of the date of the mailing of the notice; (i) Release of all holders of a mortgage to the extent that the mortgage applies to the manufactured home, or proof that a request for such consent was sent by certified mail to such mortgage holders at their last-known address and a notarized declaration, signed under penalty of perjury, that no response was received within thirty days of the date of the mailing of the notice; and (j) Verification that the manufactured home has been destroyed, dismantled, or sold or otherwise disposed of as salvage. (3) The certificate of destruction shall be acknowledged and shall contain or be accompanied by a written declaration that the statements made therein are made under the penalties of perjury in the second degree, as defined in section 18-8-503, C.R.S. (4) Any owner or person on whose real property the manufactured home is situated who fails to file a properly completed certificate of destruction when required pursuant to this section shall be responsible for all actual damages sustained by any affected party related to the manufactured home being destroyed, dismantled, or sold or otherwise disposed of as salvage. Source: L. 2008: Entire part added, p. 450, § 9, effective July 1. L. 2011: (1)(a), (2)(h), and (4) amended and (1)(d) added, (HB 11-1174), ch. 91, p. 269, § 1, effective August 10. 38-29-205. Authorized agent - forward to the clerk and recorder. If an authorized agent who receives a document for filing and recording pursuant to this part 2 is not the clerk and recorder for the county or city and county, the authorized agent shall forward such document to the clerk and recorder, for the clerk and recorder to file and record the document in his or her office. Source: L. 2008: Entire part added, p. 451, § 9, effective July 1. 38-29-206. Recorded documents - index. Any document filed and recorded by a clerk and recorder pursuant to this part 2 shall be indexed in both the grantor and grantee indexes under the name of the owner or owners of the manufactured home and the owners of the land to which the manufactured home was affixed or permanently located at the time the document is required to be filed and recorded. Source: L. 2008: Entire part added, p. 451, § 9, effective July 1. Colorado Revised Statutes 2019 Page 326 of 707 Uncertified Printout 38-29-207. Copy of certificates to assessor. The clerk and recorder shall forward a copy of a certificate of permanent location, certificate of removal, and certificate of destruction to the assessor for the county or city and county. Source: L. 2008: Entire part added, p. 451, § 9, effective July 1. 38-29-208. Affidavit of real property. (1) Any person can prove that a manufactured home and the land upon which it has been permanently affixed is real property by filing an affidavit of real property with the clerk and recorder for the county or city and county in which the manufactured home is located. The clerk and recorder shall file and record the affidavit of real property in his or her office. Except as otherwise set forth in subsection (2) of this section, the affidavit of real property shall include the following: (a) An acknowledged statement by all owners that the manufactured home and real property to which the manufactured home is permanently affixed became real property pursuant to this article; (b) A statement from the county assessor that the manufactured home has been valued together with the land upon which it is affixed; (c) A statement from the county treasurer that taxes have been paid on the manufactured home and the land upon which it is affixed in the same manner as other real property, as that term is defined in section 39-1-102 (14), C.R.S.; (d) Proof that a search of the director's records pursuant to section 42-1-206, C.R.S., was conducted and that no certificate of title was found for the manufactured home; and (e) Verification that the manufactured home is permanently affixed to the ground in accordance with any applicable county or city and county codes or requirements so that it is no longer capable of being drawn over the public highways. (2) If a manufactured home occupies real property subject to a long-term lease that has an express term of at least ten years, then the affidavit of real property shall include the following: (a) A copy of the applicable long-term lease; (b) A statement from the county treasurer that taxes have been paid separately on the manufactured home and the land upon which it is affixed; and (c) The items set forth in paragraphs (a), (d), and (e) of subsection (1) of this section. Source: L. 2008: Entire part added, p. 451, § 9, effective July 1. L. 2009: IP(1) and (1)(e) amended and (2) added, (SB 09-040), ch. 9, p. 69, § 11, effective July 1. 38-29-209. Fees - disposition. (1) In all instances in which a document is to be filed and recorded pursuant to this part 2, the authorized agent or clerk and recorder, as the case may be, shall be paid such fees for each document so filed and recorded as are prescribed by law for the filing of like instruments in the office of the county clerk and recorder. Colorado Revised Statutes 2019 Page 327 of 707 Uncertified Printout (2) The recording fees authorized by this section are in addition to any fees that are required pursuant to section 38-29-138. (3) All fees paid pursuant to this section shall be kept and retained by the authorized agent or the clerk and recorder to defray the cost thereof and shall be disposed of by him or her as provided by law. Source: L. 2008: Entire part added, p. 452, § 9, effective July 1. REAL PROPERTY Interests in Land ARTICLE 30 Titles and Interests Cross references: For right of an alien to take real property as an heir, see § 15-11-111; for provisions regarding subdivisions, see part 4 of article 61 of title 12; for unlawful activity concerning the sale of land, see § 18-5-302; for powers of appointment affecting realty, see article 2 of title 15; for power of attorney affecting realty, see part 5 of article 14 of title 15; for the effect of corporate resolutions, records, and reports and recordation thereof insofar as they pertain to real estate, see § 13-25-120; for effect and authenticity of reports of death by United States authorities as they may affect real estate, see § 13-25-121. 38-30-101. Parties entitled to hold lands may convey. Any person, association of persons, or body politic or corporate which is entitled to hold real estate, or any interest in real estate whatever, shall be authorized to convey the same to another or a body corporate or politic by deed. Source: R.S. p. 106, § 1. G.L. § 160. G.S. § 198. R.S. 08: § 668. C.L. § 4869. CSA: C. 40, § 1. CRS 53: § 118-1-1. C.R.S. 1963: § 118-1-1. 38-30-102. Water rights conveyed as real estate - well permit transfers - legislative declaration - definitions. (1) The general assembly: (a) Finds that the division of water resources in the department of natural resources needs timely and accurate data regarding well ownership in order to efficiently and accurately account for wells and to ensure that wells are properly constructed and maintained; (b) Determines that current data concerning well ownership is inadequate and that a substantial number of residential real estate transactions that transfer ownership of a well are not reported to the division; Colorado Revised Statutes 2019 Page 328 of 707 Uncertified Printout (c) Determines that current and accurate data is necessary for the state to notify well owners of any health, safety, water right, or stewardship issues pertaining to their groundwater well; and (d) Declares that this section is intended to provide the division with the information it needs to properly carry out its statutory duties. (2) In the conveyance of water rights in all cases, except where the ownership of stock in ditch companies or other companies constitutes the ownership of a water right, the same formalities shall be observed and complied with as in the conveyance of real estate. (3) (a) As used in this subsection (3): (I) "Closing service" means closing and settlement services, as defined in section 10-11102, C.R.S. (II) "Division" means the division of water resources in the department of natural resources. (III) "Person" means any individual, corporation, government or governmental subdivision or agency, business trust, estate, trust, limited liability company, partnership, association, or other legal entity. (b) (I) On and after January 1, 2009, when a buyer of residential real estate enters into a transaction that results in the transfer of ownership of a small capacity well listed in section 3790-105 (1)(a) or (1)(b), C.R.S., or a domestic exempt water well used for ordinary household purposes that is listed in section 37-92-602 (1)(b) or (1)(e), C.R.S., the buyer shall, prior to or at closing of the transaction, complete a change in ownership form for the well in compliance with section 37-90-143, C.R.S.; except that, if an existing well has not yet been registered with the division, the buyer shall complete a registration of existing well form for the well. (II) The residential real estate contract approved by the real estate commission created in section 12-10-206 shall require the buyer to complete the appropriate form for the well and, if no person will be providing a closing service in connection with the transaction, to file the form with the division within sixty days after closing. (c) (I) If a person provides a closing service in connection with a residential real estate transaction subject to this subsection (3), that person shall: (A) Within sixty days after closing, submit the appropriate form to the division with as much information as is available, and the division shall be responsible for obtaining the necessary well registration information directly from the buyer; and (B) Not be liable for delaying the closing of the transaction in order to ensure that the buyer completes the form required by subsection (3)(b)(I) of this section. If the closing is delayed pursuant to this subsection (3)(c)(I)(B), neither the buyer nor the seller shall have any claim under this section for relief against the buyer, the seller, the person who provided closing services, a title insurance company regulated pursuant to article 11 of title 10, or any person licensed pursuant to article 10 of title 12. (II) If no person provides such closing service, the buyer shall submit the appropriate form within the deadline specified in sub-subparagraph (A) of subparagraph (I) of this paragraph (c) and pay the applicable fee. Colorado Revised Statutes 2019 Page 329 of 707 Uncertified Printout Source: L. 1893: p. 298, § 1. R.S. 08: § 669. C.L. § 4870. CSA: C. 40, § 2. CRS 53: § 118-1-2. C.R.S. 1963: § 118-1-2. L. 2008: Entire section amended, p. 192, § 1, effective January 1, 2009. L. 2019: (3)(b)(II) and (3)(c)(I)(B) amended, (HB 19-1172), ch. 136, p. 1722, § 231, effective October 1. 38-30-103. Livery of seisin, not necessary. Livery of seisin is in no case necessary for the conveyance of any lands, tenements, or hereditaments. Source: R.S. p. 106, § 2. G.L. § 161. G.S. § 199. R.S. 08: § 670. C.L. § 4871. CSA: C. 40, § 3. CRS 53: § 118-1-3. C.R.S. 1963: § 118-1-3. 38-30-104. Vendor's after-acquired title deemed in trust for vendee. If any person sells and conveys to another by deed or conveyance, purporting to convey an estate in fee simple absolute, any tract of land or real estate lying and being in this state, not being possessed of the legal estate or interest therein at the time of the sale and conveyance and, after such sale and conveyance, the vendor becomes possessed of and confirmed in the legal estate of the land or real estate so sold and conveyed, it shall be taken and held to be in trust and for the use of the grantee or vendee, and said conveyance shall be held and taken, and shall be as valid as if the grantor or vendor had the legal estate or interest at the time of said sale or conveyance. Source: R.S. p. 106, § 4. G.L. § 163. G.S. § 201. R.S. 08: § 672. C.L. § 4873. CSA: C. 40, § 5. CRS 53: § 118-1-4. C.R.S. 1963: § 118-1-4. 38-30-104.5. Grantor's interest in vacated right-of-way deemed included. Every conveyance or encumbrance of real property, voluntary or otherwise, including but not limited to any form of deed, lease, deed of trust, mortgage, or lien, is deemed to include the grantor's interest, if any, in any vacated street, alley, or other right-of-way that adjoins the real property unless the interest is expressly excluded by the terms of the conveyance or encumbrance. Source: L. 2017: Entire section added, (SB 17-097), ch. 117, p. 416, § 2, effective August 9. 38-30-105. Lands not in possession may be conveyed. Any person claiming right or title to lands, tenements, or hereditaments, although he may be out of possession, and notwithstanding there may be an adverse possession thereof, may sell, convey, and transfer his interest in and to the same in as full and complete a manner as if he were in the actual possession of the lands and premises intended to be conveyed. Source: R.S. p. 107, § 5. G.L. § 164. G.S. § 202. R.S. 08: § 673. C.L. § 4874. CSA: C. 40, § 6. CRS 53: § 118-1-5. C.R.S. 1963: § 118-1-5. Colorado Revised Statutes 2019 Page 330 of 707 Uncertified Printout 38-30-106. Tenant in fee tail takes in fee simple. In cases where, by the common law, any person may be or become seized in fee tail of any lands, tenements, or hereditaments by virtue of any devise or conveyance, or by any other means whatsoever, such person, instead of becoming seized in fee tail thereof, shall be deemed and adjudged to be seized of such lands, tenements, and hereditaments in fee simple. Source: R.S. p. 107, § 6. G.L. § 165. G.S. § 203. R.S. 08: § 674. C.L. § 4875. CSA: C. 40, § 7. CRS 53: § 118-1-6. C.R.S. 1963: § 118-1-6. L. 83: Entire section amended, p. 1467, § 1, effective May 25. 38-30-107. Estate granted deemed fee simple unless limited. Every estate in land which is granted, conveyed, or devised to one, although other words necessary to transfer an estate of inheritance are not added, shall be deemed a fee simple estate of inheritance if a lesser estate is not limited by express words or does not appear to be granted, devised, or conveyed by operation of law. Source: R.S. p. 107, § 7. G.L. § 166. G.S. § 204. R.S. 08: § 675. C.L. § 4876. CSA: C. 40, § 8. CRS 53: § 118-1-7. C.R.S. 1963: § 118-1-7. 38-30-107.5. Royalty interests - minerals or geothermal resources. (1) Any conveyance, reservation, or devise of a royalty interest in minerals or geothermal resources, whether of a perpetual or limited duration, contained in any instrument executed on or after July 1, 1991, creates a real property interest which vests in the holder or holders of such interest the right to receive the designated royalty share of the specified minerals or geothermal resources or the proceeds therefrom in accordance with the terms of the instrument. Unless otherwise provided in the conveyance, reservation, or devise, the holder of such interest shall not have the right to: (a) Explore for or develop the minerals or geothermal resources; (b) Grant a mineral development lease; or (c) Receive any share of rentals, bonus payments, surface damage payments, or similar sums that might be payable under the terms of any mineral development lease. Source: L. 91: Entire section added, p. 1677, § 1, effective July 1. 38-30-108. Conveyances to grantee in a representative capacity. (1) An instrument conveying an interest in real property, in which the grantee is described as trustee, agent, conservator, executor, administrator, attorney-in-fact, personal representative, nominee, custodian, or a person acting in any other representative capacity, shall also describe the representative capacity of such grantee by one or more of the following means: (a) Naming the person so represented; Colorado Revised Statutes 2019 Page 331 of 707 Uncertified Printout (b) Identifying the statute, the trust or other agreement, or the court appointment under which the grantee is acting; or (c) Referring, by proper description to book, page, document number, or file to an instrument, order, decree, or other writing containing any such description of the representative capacity of the grantee that is recorded with the county clerk and recorder in the county where the real property is located. (2) If the representative capacity of the grantee is not described as provided in subsection (1) of this section, the description of a grantee in any such representative capacity in such instrument of conveyance shall be presumed to be a description of the person only and shall not be notice of the representative capacity of such grantee. (3) After the recording of an instrument conveying an interest in real property in which the grantee is described as acting in a representative capacity, but in which the description of the grantee does not comply with subsection (1) of this section, and regardless of whether such instrument of conveyance was recorded prior to or after August 8, 2001, an affidavit that has been executed by or on behalf of such grantee, which refers by proper description by book, page, document number, or file to the recording information of such instrument of conveyance and that contains one of the descriptions of the representative capacity of such grantee described in subsection (1) of this section, may be recorded with the county clerk and recorder of the county where the real property is located. Upon the recording of such affidavit, all persons shall thereafter have notice of the representative capacity of such grantee with respect to the interest in real property so conveyed. Source: L. 21: p. 187, § 1. C.L. § 4877. CSA: C. 40, § 9. CRS 53: § 118-1-8. C.R.S. 1963: § 118-1-8. L. 2001: Entire section amended, p. 398, § 1, effective August 8. Cross references: For succession of title to property held in trust for church or religious society, see § 7-52-105. 38-30-108.5. Conveyances to trusts - ownership and transfer of property. (1) A trust may acquire, convey, encumber, lease, or otherwise deal with any interest in real or personal property in the name of the trust. (2) In order to evidence the existence of a trust and the authority of one or more trustees to act on behalf of the trust with respect to an interest in real property held in the name of the trust, any trustee of the trust may execute and record with the county clerk and recorder of the county in which the real property is located, a statement of authority pursuant to section 38-30172 (2). (3) The provisions of subsection (1) of this section shall also apply to any interest in real or personal property that is already in the name of the trust as of August 8, 2001. Nothing in this section shall be construed to be the exclusive manner in which title to an interest in real or personal property may be held by or on behalf of a trust, and title to an interest in real or personal property may be held by or on behalf of a trust in any other manner permitted by law. Colorado Revised Statutes 2019 Page 332 of 707 Uncertified Printout Source: L. 2001: Entire section added, p. 399, § 2, effective August 8. 38-30-109. Existing conveyances not notice of beneficiary unless statement filed in five years. (Repealed) Source: L. 21: p. 188, § 2. C.L. § 4878. CSA: C. 40, § 10. CRS 53: § 118-1-9. C.R.S. 1963: § 118-1-9. L. 99: Entire section amended, p. 628, § 37, effective August 4. L. 2001: Entire section repealed, p. 399, § 3, effective August 8. 38-30-110. Rule against perpetuities inapplicable to cemetery trusts. (1) Any gifts, bequests, transfers, grants, or conveyances of real or personal property by any one person in trust amounting to not more than twenty-five thousand dollars in value in the aggregate at the time of the creation of such trusts, the income of which is to be used exclusively for the purpose of creating, maintaining, or caring for any graves, tombs, mausoleums, grave markers or monuments, burial places, grave sites, cemetery plots, or graveyards and payment of reasonable compensation to the trustee, shall be good, valid, and enforceable regardless of the time such trusts continue. The rule or law against perpetuities shall have no application to any such part of any such trusts as are not more than twenty-five thousand dollars in value at the time of the creation of such trusts. (2) Nothing in this section shall be deemed to detract from the validity of any payment, gift, or bequest in consideration of an agreement of a cemetery relating to care and maintenance, or any trust or other agreement entered into by a cemetery in aid or furtherance of any promise of such cemetery relative to the maintenance thereof, or of any grave, tomb, mausoleum, grave marker or monument, burial place, grave site, or cemetery plot therein. Source: L. 43: p. 222, §§ 1, 2. CSA: C. 40, § 9(1). CRS 53: § 118-1-10. C.R.S. 1963: § 118-1-10. 38-30-111. Rule against perpetuities inapplicable to employees' pension trusts. No trust created by an employer as a part of a pension, stock bonus, disability, death benefit, or profit-sharing plan for the exclusive benefit of some or all of his employees or their beneficiaries, to which contributions are made by such employer or employees, or by both employer and employees, for the purpose of distributing to such employees or their beneficiaries the earnings or principal, or both earnings and principal, of such trust, is invalid by reason of any existing law or rule against perpetuities or accumulations or suspension of the power of alienation; but such trust may continue for such time as may be necessary to accomplish the purposes for which it may be created. Source: L. 51: p. 805, § 1. CSA: C. 40, § 9(2). CRS 53: § 118-1-11. C.R.S. 1963: § 118-1-11. Colorado Revised Statutes 2019 Page 333 of 707 Uncertified Printout 38-30-112. Rule against perpetuities inapplicable to existing trusts. No suit or other proceeding affecting a pension, stock bonus, disability, death benefit, or profit-sharing plan existing on September 29, 1951, wherein relief is sought on the ground that such plan is in violation of any existing law or rule against perpetuities or accumulations or suspension of the power of alienation, shall be instituted. Source: L. 51: p. 805, § 2. CSA: C. 40, § 9(3). CRS 53: § 118-1-12. C.R.S. 1963: § 118-1-12. 38-30-113. Deeds - short form - acknowledgment - effect. (1) (a) A deed for the conveyance of real property in substantially the following form and that includes the words "and warrant(s) the title to the same", or substantially similar language, is a warranty deed with covenants of warranty: ...................., whose street address is ........................, City or Town of ........................, County of ........................ and State of ........................, for the consideration of .............. dollars, in hand paid, hereby sell(s) and convey(s) to .................... whose street address is ...................., City or Town of ...................., County of .................... and State of ...................., the following real property in the County of ........................ and State of Colorado, to wit: ........................ with all its appurtenances and warrant(s) the title to the same, subject to ......................... . Signed this .................... day of ...................., 20..... . ................................... (b) A deed for the conveyance of real property in substantially the following form and that includes the words "and warrant(s) the title to the same against all persons claiming under me", or substantially similar language, is a special warranty deed with covenants of warranty as to the grantor's period of ownership of the property: ...................., whose street address is ........................, City or Town of ........................, County of ........................ and State of ........................, for the consideration of .............. dollars, in hand paid, hereby sell(s) and convey(s) to .................... whose street address is ...................., City or Town of ...................., County of .................... and State of ...................., the following real property in the County of ........................ and State of Colorado, to wit: ........................ with all its appurtenances and warrant(s) the title to the same against all persons claiming under me, subject to ......................... . Signed this .................... day of ...................., 20..... . ................................... Colorado Revised Statutes 2019 Page 334 of 707 Uncertified Printout (c) A deed for the conveyance of real property in substantially the following form that does not include words of warranty has the same force and effect as a bargain and sale deed at common law, but without covenants of warranty, and passes the after-acquired title of the grantor: ...................., whose street address is ........................, City or Town of ........................, County of ........................ and State of ........................, for the consideration of .............. dollars, in hand paid, hereby sell(s) and convey(s) to .................... whose street address is ...................., City or Town of ...................., County of .................... and State of ...................., the following real property in the County of ........................ and State of Colorado, to wit: ........................ with all its appurtenances ......................... . Signed this .................... day of ...................., 20..... . ................................... (d) A deed for the conveyance of real property in substantially the following form that does not include words of warranty and with the word "quitclaim(s)" substituted for "convey(s)" is a quitclaim deed without covenants of warranty that passes no after-acquired title of the grantor: ...................., whose street address is ........................, City or Town of ........................, County of ........................ and State of ........................, for the consideration of .............. dollars, in hand paid, hereby sell(s) and quitclaim(s) to .................... whose street address is ...................., City or Town of ...................., County of .................... and State of ...................., the following real property in the County of ........................ and State of Colorado, to wit: ........................ with all its appurtenances ......................... . Signed this .................... day of ...................., 20..... . ................................... (2) Any deed described in subsection (1) of this section may be acknowledged in accordance with section 38-35-101 or 24-21-515. Failure to state the address or the county or state of residence of the grantor or grantee does not affect the validity of the deed. (3) Every deed in substance, in a form described in subsection (1) of this section or in any other form permitted by Colorado law, regardless of whether the deed recites valuable consideration or whether valuable consideration has been given for the deed, when properly executed, is a conveyance to the grantee, with covenants on the part of the grantor, if any, as set forth in subsection (4) of this section. Subject to any reservations specifically set forth in a deed, the form of deed used by the grantor does not affect the absolute nature of the fee simple conveyance of the property being conveyed and is not deemed to convey any lesser estate or Colorado Revised Statutes 2019 Page 335 of 707 Uncertified Printout interest simply by virtue of the form of deed used or whether the grantor provided any warranties of title in the deed. (4) (a) The words "warrant(s) the title" in a warranty deed as described in subsection (1)(a) or (1)(b) of this section or in a mortgage as described in section 38-30-117 mean that the grantor covenants: (I) That, at the time of the making of the warranty deed, the grantor was lawfully seized of an indefeasible estate in fee simple in and to the property described in the deed and has good right and full power to convey the property; (II) That the property described in the deed was free and clear from all encumbrances, except as stated in the warranty deed; and (III) That the grantor warrants to the grantee and the grantee's heirs and assigns the quiet and peaceable possession of the property and that: (A) With respect to a warranty deed or mortgage, the grantor will defend the title to the property against all persons who may claim the title; and (B) With respect to a special warranty deed, the grantor will defend the title to the property against all persons who may claim the title but only as against any persons claiming to hold title by, or through, the grantor. (b) A covenant described in subsection (4)(a) of this section is binding upon the grantor and the grantor's heirs and personal representatives as fully as if it were written at length in the warranty deed. (5) (a) A warranty deed or special warranty deed intended to include a limitation on the warranty of title pursuant to subsection (4)(a) of this section may use the words "subject to statutory exceptions" or include a different listing or description of exceptions as the grantor and grantee may agree. The words "statutory exceptions", when used in any deed, mean that the grantee accepts title to the conveyed property subject to: (I) Real estate taxes for the calendar year in which the conveyance occurred and subsequent years that are not yet due and payable; (II) All matters that are disclosed or that would have been disclosed by an improvement survey plat, as defined in section 38-51-102 (9), of the conveyed property or could have been ascertained by an inspection of the conveyed property and which matters were not created or otherwise known by the grantor; and (III) All matters recorded in the real estate records of the county clerk and recorder for the county in which the conveyed property is located. (b) If a warranty deed or special warranty deed includes a blank after a reference to "statutory exceptions" but no additional matters are specifically listed in the blank, the blank is deemed to be deleted from the warranty deed or special warranty deed, and the title conveyed is subject only to the statutory exceptions. Source: L. 17: p. 158, § 1. C.L. § 4879. CSA: C. 40, § 11. CRS 53: § 118-1-13. L. 55: p. 717, § 1. L. 61: p. 638, § 1. C.R.S. 1963: § 118-1-13. L. 73: p. 1152, § 1. L. 2005: (1)(d) added, p. 404, § 1, effective April 27. L. 2017: (1)(d) repealed, (SB 17-097), ch. 117, p. 416, § 1, Colorado Revised Statutes 2019 Page 336 of 707 Uncertified Printout effective August 9. L. 2019: Entire section amended, (HB 19-1098), ch. 18, p. 64, § 1, effective March 7. Editor's note: Section 6 of chapter 18 (HB 19-1098), Session Laws of Colorado 2019, provides that the act changing this section applies to deeds for the conveyance of real property that are executed on or after March 7, 2019. 38-30-113.5. Beneficiary deeds. Deeds intended to take effect at the death of the grantor may be executed and recorded pursuant to the provisions of part 4 of article 15 of title 15, C.R.S. Source: L. 2004: Entire section added, p. 734, § 4, effective August 4. 38-30-114. Validation of acknowledgments. Any deed or other conveyance of real property executed pursuant to section 38-30-113, if acknowledged in conformity with the provisions of section 38-35-101, shall be considered for all purposes as having been properly acknowledged. Such acknowledgment shall carry with it the presumption provided for by said section 38-35-101. Source: L. 47: p. 354, § 2. CSA: C. 40, § 11(1). CRS 53: § 118-1-14. C.R.S. 1963: § 118-1-14. 38-30-115. Deeds - bargain and sale - special warranty. (Repealed) Source: L. 17: p. 160, § 2. C.L. § 4880. CSA: C. 40, § 12. CRS 53: § 118-1-15. C.R.S. 1963: § 118-1-15. L. 2019: Entire section repealed, (HB 19-1098), ch. 18, p. 68, § 4, effective March 7. Editor's note: Section 6 of chapter 18 (HB 19-1098), Session Laws of Colorado 2019, provides that the act repealing this section applies to deeds for the conveyance of real property that are executed on or after March 7, 2019. 38-30-116. Deeds - quitclaim. (Repealed) Source: L. 17: p. 160, § 3. C.L. § 4881. CSA: C. 40, § 13. CRS 53: § 118-1-16. C.R.S. 1963: § 118-1-16. L. 2019: Entire section repealed, (HB 19-1098), ch. 18, p. 68, § 5, effective March 7. Editor's note: Section 6 of chapter 18 (HB 19-1098), Session Laws of Colorado 2019, provides that the act repealing this section applies to deeds for the conveyance of real property that are executed on or after March 7, 2019. Colorado Revised Statutes 2019 Page 337 of 707 Uncertified Printout 38-30-116.5. Preparation of deeds - definition. (1) In connection with the issuance of a policy of title insurance, but subject to the terms of this statute, a licensed title insurance entity may prepare deeds for the conveyance of real property in accordance with the forms described in section 38-30-113 (1). (2) A deed prepared by a licensed title insurance entity containing a covenant of warranty as provided in section 38-30-113 (1)(a) or (1)(b) must: (a) Include a limitation on the warranty of title pursuant to section 38-30-113 (4)(a); and (b) Use the words "subject to statutory exceptions" and no other terms or descriptions, unless the preparing licensed title insurance entity is otherwise instructed in writing by both: (I) The grantor or an authorized agent for the grantor; and (II) The grantee or an authorized agent for the grantee. (3) When preparing a deed pursuant to this section in which the phrase "subject to statutory exceptions" is used, a licensed title insurance entity shall not disclaim, limit, or seek indemnification against liability for any negligence by the licensed title insurance entity. (4) As used in this section, "licensed title insurance entity" means a title insurance entity, as defined in section 10-11-102 (11). Source: L. 2019: Entire section added, (HB 19-1098), ch. 18, p. 67, § 2, effective March 7. Editor's note: Section 6 of chapter 18 (HB 19-1098), Session Laws of Colorado 2019, provides that the act adding this section applies to deeds for the conveyance of real property that are executed on or after March 7, 2019. 38-30-117. Mortgages - short form - acknowledgment - effect. (1) A mortgage of real property may be substantially in the following form: .................., whose address is ........................, County of ........................ and State of ........................, hereby mortgage(s) to .................., whose address is ........................, County of ........................ and State of ........................, to secure the payment of .................. dollars due as follows: .................. the following described real property in the County of ........................ and State of Colorado, to wit: ........................ with all its appurtenances, and warrant(s) the title to the same, subject to .......................... . Signed this .................. day of .................., 20.... . ................................... (2) Such mortgage may be acknowledged in accordance with section 38-35-101. Failure to state the address or the county or state of residence of the grantor or grantee shall not affect the validity of such mortgage. Colorado Revised Statutes 2019 Page 338 of 707 Uncertified Printout (3) Every mortgage in substance in the above form, when properly executed, is a mortgage to secure the payment of the money specified in the mortgage, with covenants as expressed in section 38-30-113 (4)(a), but if the words "and warrant(s) the title to the same" are omitted, no such covenants are implied. Source: L. 17: p. 160, § 4. C.L. § 4882. CSA: C. 40, § 14. CRS 53: § 118-1-17. L. 55: p. 718, § 2. L. 61: p. 639, § 2. C.R.S. 1963: § 118-1-17. L. 2019: (3) amended, (HB 19-1098), ch. 18, p. 68, § 3, effective March 7. Editor's note: Section 6 of chapter 18 (HB 19-1098), Session Laws of Colorado 2019, provides that the act changing this section applies to deeds for the conveyance of real property that are executed on or after March 7, 2019. 38-30-118. Seal not necessary. It is not necessary to the proper execution of any conveyance affecting real property that the same be executed un