Senate Bill 25-277 Preamended

A Bill for an Act

• Page 1, Line 101Concerning the repeal of the title insurance commission,

• Page 1, Line 102and, in connection therewith, requiring the

• Page 1, Line 103commissioner of insurance to meet with a title

• Page 1, Line 104insurance advisory group and repealing the title

• Page 1, Line 105insurance advisory group in 2029 subject to a sunset

• Page 1, Line 106review.

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov/.)

Sunset Process - Senate Business, Labor, and Technology Committee. The bill implements the recommendation of the department of regulatory agencies in the department's 2024 sunset report that the title insurance commission be repealed, effective September 1, 2025.

• This Unofficial Version Includes Committee

• Amendments Not Yet Adopted on Second Reading

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, amend 10-11-201 as follows:

• Page 2, Line 310-11-201.  Title insurance advisory group - meetings -

• Page 2, Line 4response by commissioner - subject to review - repeal. (1)  There is

• Page 2, Line 5hereby created in the division the title insurance commission Twice each

• Page 2, Line 6year, the commissioner shall hold a meeting of representatives

• Page 2, Line 7of the title insurance industry, who are referred to in this

• Page 2, Line 8section as the "title insurance advisory group" or "advisory

• Page 2, Line 9group". The commission advisory group is an advisory body to the

• Page 2, Line 10commissioner concerning the promotion of fair competition,

• Page 2, Line 11consumer protection, and regulatory compliance in matters of

• Page 2, Line 12title insurance. Nothing in this section divests the commissioner of his or her the commissioner's authority to regulate the business of insurance.

• Page 2, Line 13(2) (a)  The commission consists of nine members appointed by the governor as follows:

• Page 2, Line 14(I)  Three members shall be employees of title insurance companies with the following qualifications:

• Page 2, Line 15(A)  Each shall be a licensed employee of a title insurance

• Page 2, Line 16company with not less than five years' experience in title insurance business;

• Page 2, Line 17(B)  At least one shall be a representative of a title insurance

• Page 2, Line 18company that has net admitted assets of five hundred million dollars or

• Page 2, Line 19more; and

• Page 3, Line 1(C)  At least one shall be a representative of a title insurance

• Page 3, Line 2company that has net admitted assets of less than five hundred million dollars.

• Page 3, Line 3(II)  Three members shall be employees of a title insurance agent with the following qualifications:

• Page 3, Line 4(A)  Each shall be a resident licensed title insurance agent with not

• Page 3, Line 5less than five years' experience in title insurance business in Colorado; and

• Page 3, Line 6(B)  To the greatest extent possible the commission shall reflect

• Page 3, Line 7the geographic diversity of the state and have representation from

• Page 3, Line 8members who reside or have their principal place of business within a

• Page 3, Line 9standard metropolitan statistical area and members who reside or whose

• Page 3, Line 10principal place of business is outside a standard metropolitan statistical area.

• Page 3, Line 11(III)  Three members shall represent the public at large, shall be

• Page 3, Line 12residents of Colorado, and shall not be engaged in the business of title

• Page 3, Line 13insurance. At least one of the three public at large members shall reside outside a standard metropolitan statistical area.

• Page 3, Line 14(b)  No more than one member of the commission may be

• Page 3, Line 15appointed from a single company or an affiliate or subsidiary of a company.

• Page 3, Line 16(c) (I)  The terms of the members are for four years; except that the

• Page 3, Line 17terms shall be staggered so that no more than five members' terms expire

• Page 3, Line 18in the same year. Members shall serve a maximum of two consecutive terms.

• Page 3, Line 19(II)  If a commission member's employment or license status

• Page 3, Line 20changes during the member's term so that the member is no longer

• Page 4, Line 1qualified to serve on the commission, or upon the death, resignation,

• Page 4, Line 2removal, or incapacity of any member of the commission, the governor

• Page 4, Line 3shall appoint a member to fill out the unexpired term. The members of the commission serve at the pleasure of the governor.

• Page 4, Line 4(d)  Members of the commission are not employees of the division

• Page 4, Line 5and shall not receive compensation for service on the commission; except

• Page 4, Line 6that a member may be reimbursed for mileage in excess of fifty miles

• Page 4, Line 7from their principal place of business or residence to attend commission meetings.

• Page 4, Line 8(e)  Members of the commission shall annually select one member to serve as chair.

• Page 4, Line 9(f)  The chair of the commission may call meetings as necessary and may call additional meetings:

• Page 4, Line 10(I)  At the chair's discretion;

• (II)  Upon request of the commissioner; or

• Page 4, Line 11(III)  Upon the written request of three or more members.

• Page 4, Line 12(g)  The commission shall meet no less than four times per year and may meet no more than eight times per year.

• Page 4, Line 13(h)  Six members shall constitute a quorum for the transaction of

• Page 4, Line 14business. The action of a majority of the members when a quorum is present is the action of the commission.

• Page 4, Line 15(i)  The division shall aid in the administration of the commission.

• Page 4, Line 16The division may increase expenditures by no more than fifty thousand

• Page 4, Line 17dollars for this purpose, but may direct existing appropriations available

• Page 4, Line 18to the division pursuant to section 10-3-207 (1)(f)(I) to contribute to the implementation of the commission.

• Page 4, Line 19(j)  All meetings of the commission shall be open to the public

• Page 5, Line 1pursuant to part 4 of article 6 of title 24, C.R.S. The records of the

• Page 5, Line 2commission and its members shall be subject to the requirements of part 2 of article 72 of title 24, C.R.S.

• Page 5, Line 3(2)  Meetings of the advisory group must be open to the

• Page 5, Line 4public, and any member of the public may participate in a meeting.

• Page 5, Line 5(3)  Members of the title insurance advisory group are not

• Page 5, Line 6employees of the division and shall not receive compensation for service on the advisory group.

• Page 5, Line 7(4)  The commissioner shall hold the first meeting of the

• Page 5, Line 8title insurance advisory group on or before January 31 each

• Page 5, Line 9year, and the commissioner shall hold the second meeting of the

• Page 5, Line 10advisory group on or after June 1, but before August 1, each

• Page 5, Line 11year unless an alternate time is proposed and accepted by the commissioner.

• Page 5, Line 12(5)  The commissioner or the commissioner's designee shall

• Page 5, Line 13attend each of the two regular meetings described in subsection

• Page 5, Line 14(4) of this section. Advisory group members may conduct additional meetings as the commissioner deems appropriate.

• Page 5, Line 15(6)  The commissioner shall respond in writing to formal

• Page 5, Line 16written proposals or recommendations presented to the commissioner by the title insurance advisory group at a meeting.

• Page 5, Line 17(7)  This section is repealed, effective September 1, 2029.

• Page 5, Line 18Before the repeal, the advisory group is scheduled for review in accordance with section 2-3-1203.

• Page 5, Line 19SECTION 2.  In Colorado Revised Statutes, repeal 10-11-202

• Page 5, Line 20and 10-11-203.

• Page 6, Line 1SECTION 3.  In Colorado Revised Statutes, 2-3-1203, repeal (16)(a)(II); and add (20)(a)(X) as follows:

• Page 6, Line 22-3-1203.  Sunset review of advisory committees - legislative

• Page 6, Line 3declaration - definition - repeal. (16) (a)  The following statutory

• Page 6, Line 4authorizations for the designated advisory committees will repeal on September 1, 2025:

• Page 6, Line 5(II)  The title insurance commission created in part 2 of article 11 of title 10, C.R.S.;

• Page 6, Line 6(20) (a)  The following statutory authorizations for the designated advisory committees will repeal on September 1, 2029:

• Page 6, Line 7(X)  The title insurance advisory group described in part 2 of article 11 of title 10.

• Page 6, Line 8SECTION 4.  In Colorado Revised Statutes, 10-11-102, repeal (3.6) as follows:

• Page 6, Line 910-11-102.  Definitions. As used in this article 11, unless the context otherwise requires:

• Page 6, Line 10(3.6)  "Commission" means the title insurance commission established in part 2 of this article.

• Page 6, Line 11SECTION 5.  Act subject to petition - effective date. This act

• Page 6, Line 12takes effect at 12:01 a.m. on the day following the expiration of the

• Page 6, Line 13ninety-day period after final adjournment of the general assembly; except

• Page 6, Line 14that, if a referendum petition is filed pursuant to section 1 (3) of article V

• Page 6, Line 15of the state constitution against this act or an item, section, or part of this

• Page 6, Line 16act within such period, then the act, item, section, or part will not take

• Page 6, Line 17effect unless approved by the people at the general election to be held in

• Page 6, Line 18November 2026 and, in such case, will take effect on the date of the

• Page 6, Line 19official declaration of the vote thereon by the governor.