Bradford Publishing Blog | Colorado Law Articles & Topics

It’s over! The 2013 Colorado Legislative Session ended May 8th. Here are a few of the bills we’ve been tracking . . .

1.    Civil Unions are now legal in Colorado. Watch for changes to the family law, probate and other forms.

2.    Probate

•    SB13-077 , the Probate Omnibus Bill, sponsored by the Colorado Bar Association’s Legislative Committee, updates and clarifies provisions of the Colorado Probate Code.

3.    Family Law

•    HB13-1058  creates a process, including guidelines as to the amount and term, for determining spousal maintenance in proceedings for divorce, legal separation or declaration of invalidity filed on or after January 1, 2014.

•    HB13-1204  enacts the “Uniform Premarital and Marital Agreements Act” (Act). The bill describes the formation of premarital and marital agreements, when such agreements are effective, provisions that are unenforceable in premarital or marital agreements, and when an agreement is enforceable. Applies to agreements signed on or after July 1, 2014.

•    HB13-1209  makes several changes to portions of the Uniform Dissolution of Marriage Act relating to child support obligations and how it is calculated, effective January 1, 2014.

4.    HOA bills:

•    SB13-126 prohibits a landlord or the unit owners’ association of a common interest community from preventing a tenant or unit owner from installing an electric vehicle charging system on property owned or exclusively controlled by the tenant or unit owner, at the tenant’s or unit owner’s expense.

It also allows grants to be made from the electric vehicle grant fund to landlords of multi-family apartment buildings and the unit owners’ associations of common interest communities to install recharging stations for electric vehicles.

•    In addition to amending the annual registration provisions, HB13-1134 empowers the HOA Information and Resource Center that was created in 2010 to compile a database of registered unit owners’ associations, assist in preparation of educational and reference materials, and to provide information on the Division of Real Estate’s website.

•   HB13-1276  requires the unit owners’ association of a common interest community (HOA) or a holder or assignee of the HOA’s debt to adopt, and comply with, a policy regarding the collection of delinquent assessments and other past-due amounts from unit owners. The unit owner must be offered a one-time opportunity to enter into a 6-month payment plan. The HOA or a holder or assignee of the HOA’s lien is prohibited from foreclosing its lien for past-due assessments unless the total amount is at least equal to 6 months of regular assessments. Section 3 of the bill specifies the terms and conditions of the repayment plan that must be offered.

•    HB13-1277  requires any person who manages the affairs of a common interest community on behalf of an HOA for compensation, on or after July 1, 2015, to meet minimum qualifications and obtain a license from the director of the division of real estate in the department of regulatory agencies. Licensees are identified as “community association managers”.

Beginning Wednesday, May 1, couples, regardless of gender, can enter into Civil Unions in Colorado. This means big changes for same sex couples. Denver attorney and author, Kim Willoughby, in an interview on CRP.org discussed some of the changes and benefits of the new law.

Change: Break up Rules

Ironically, one of the biggest benefits of the new Civil Unions law is that it establishes the legal framework for terminating the relationship.

Breakups are often messy and difficult, but for same sex couples in Colorado it has been especially difficult.  Prior to the Civil Unions law, Colorado did not recognize same sex relationships and therefore there was no way for same sex couples to use the courts to legally terminate their relationship.  Kim talked about clients who have come to her for help terminating their civil union or same sex marriage from another State.  Some couples had children, property, and debts together and needed a way to separate everything. Unfortunately, up until now there wasn’t much an attorney could do for these couples.  Since the Colorado Constitution does not recognize these relationships, no judge could issue a piece of paper saying the relationship was legally terminated. Kim advised that it was actually best to stay out of court, which made the decision to end a relationship more uncertain and very expensive.

Now, Colorado couples in a civil union will follow the same rules as married couples if they choose to end their relationship, whether by divorce or legal separation.

Benefit: Protection of Children

Same sex couples have had a difficult time protecting their individual rights as parents and their children’s rights.  In the past when same sex couples had children together they needed to get a second-parent adoption to fully establish both parent’s rights. This is an expensive and time consuming process and sometimes courts wouldn’t grant the adoption.  Kim informs us in her interview that now babies born to couples in a civil union are automatically presumed to be the child of both parents.

Kim Willoughby also discusses insurance benefits and the difference between civil unions and marriage. Go to CPR.org, Colorado Matters to listen to this interview. “Same-Sex Couples Can Expect Fewer Legal Tangles Under Civil Unions”

Big news on Tuesday! Lawmakers passed the bill to allow civil unions in Colorado. The bill to create the “Colorado Civil Union Act” is now on its way to Governor John Hickenlooper who is expected to sign it into law within two weeks. Assuming the bill is signed it will become law on May 1st.

So, what exactly is a civil union?
A Civil Union is a legally recognized partnership similar to marriage. It provides legal protection to couples at the state level, but omits federal protections. The “Colorado Civil Union Act” authorizes any 2 unmarried adults, regardless of gender, to enter into a civil union. Colorado will join 8 states that have civil unions or similar laws that allow straight or gay couples to enter into them.

What are the benefits of entering into a civil union?
•    Responsibility for financial support of a party to a civil union;
•    Rights and abilities concerning transfer of real or personal property;
•    Prohibitions against discrimination based upon spousal status;
•    The probate laws relating to estates, wills, trusts, and intestate succession, including the ability to inherit real and personal property, apply equally to couples in a civil union.
•    Survivor benefits under, and inclusion in workers’ compensation laws;
•    The right of a partner in a civil union to be treated as a family member or as a spouse under the “Colorado Employment Security Act” for purposes of unemployment benefits.

This is just small fraction of the benefits granted to parties in a civil union. To see the full list of the rights, benefits, protections, duties, obligations, responsibilities, and other incidents under the law that are granted or imposed, click here.

What is the difference between a civil union and a marriage?
•    The right to federal benefits. States that allow some type of same-sex union are able to grant only state rights. The Defense of Marriage Act passed in 1996 prohibits same-sex couples from receiving federal marriage rights and benefits.
•    Portability. Because civil unions are not recognized by all states, such agreements are not always valid when couples cross state lines.
•    Terminology. “Marriage” is a term that conveys societal and cultural meaning, important to both gay rights activists and those who don’t believe gays should marry.

These are three main differences between civil unions and marriage as it’s traditionally viewed. To see the full analysis go to FACTCHECK.ORG

Is your tenant late on the rent? Has your landlord fixed that broken window yet? All your landlord and tenant questions are answered in the just-released fifth edition of the  “Landlord Tenant Guide to Colorado Leases and Evictions.” This popular book contains all the information you need to understand residential leasing and eviction procedures in Colorado.

 Landlords will learn:

•    How to fill out standard lease forms

•    Steps to take to protect themselves and their property

•    Colorado’s Warranty of Habitability Act

•    How to navigate the eviction process

Tenants will learn:

•    All about security deposits

•    Colorado’s Warranty of Habitability Act

•    Defenses to an eviction

•    How to file an Answer or Counterclaim

This new edition also contains a section on leases, including new provisions in the lease forms that discuss Pest Control and Mold, Smoke Free Premises, and Medical and Recreational Marijuana use, plus instructions for completing a lease.

Both landlords and tenants can avoid costly mistakes and reduce legal fees by reading the “Landlord and Tenant Guide to Colorado Leases and Evictions” by Victor M. Grimm, Esq. and Denise E. Boehler.

Following the tragic shootings at the movie theater in Aurora, CO, and at Sandy Hook Elementary, we have all been asking: How can we prevent acts of violence in malls, churches, schools and on university campuses? Once again, public officials and law enforcement officers are turning to mental health professionals for the answer to this question.

    If you make a statement in an airport that you have a bomb in your possession, you are going to jail.  If you try to tell the police on the way to jail that you were only joking, you will quickly learn that such statements are not a joke.  In the home, if a man threatens to kill his partner, he will be arrested and taken to jail.  Ever since Columbine if a student makes a threat of violence, it will be taken seriously.  In the workplace, threats of violence are not tolerated.  Continue reading “ZERO TOLERANCE FOR THREATS OF VIOLENCE” »

You’ve likely heard of the “fiscal cliff,” the trigger for across-the-board tax increases that will take place in 2013, if nothing prevents it.  Lost in that debate is the emergence of a lesser-known new Medicare tax on higher income individuals and families next year. 

Currently, Medicare imposes a 2.9 percent tax rate on all earned income – that is, your salary or wages. Starting in 2013, if your adjusted gross income is above $200,000 for a single person, $250,000 for a married couple, or $125,000 married filing separately, the Medicare tax climbs 0.9 percent to 3.8 percent.

More importantly, for those same income groups, the 3.8 percent tax rate will apply to all unearned income as well.

Unearned income includes investment or portfolio income (interest, dividends, most capital gains, and annuities), royalties, rents, and passive activity income, as well as gains from the sale of property not used in an active business.

Plus, this year stock market profits are taxed at 15 percent. If the Bush-era tax cuts expire, ordinary, qualifying dividend, and capital gains tax rates will rise to 20 percent in 2013, too.

So regardless of your income bracket, if you own stock, rental property, or dividend paying investments, consider the following steps:

1.    If you are thinking about selling assets that are likely to yield large gains, such as inherited, valuable stock or a vacation home in a desirable resort area, try to make the sale before year-end, with due regard for market conditions. Note that if you are in the higher-income category and you wait until next year, those gains will be exposed to an extra 3.8 percent tax (the so-called “unearned income Medicare contribution tax).

2.    If you have owned stock for more than a year and still think the stock has plenty of room to grow, sell it now, and then repurchase it 31 days from now.  You’ll pay the 15 percent tax rate on any long-term capital gains, but your “basis,” or starting point, for future sales will be higher.  If capital gains taxes go up in future years, your overall tax burden will be lower.

No matter how hard President Obama works with Congress to strike a deal on the budget deficit and economic stability, one thing is very likely: tax rates are going up next year.  

The 2012 temporary payroll tax holiday is scheduled to end, and there appears to be little appetite to extend it. Without this tax break, proposed as a boost to the economy, middle class Coloradans will pay about $1,000 per family more next year. Continue reading “Taxes Go Up in 2013 – Four Steps to Take Now” »

We’ve brought in our resident expert, attorney and author of “Colorado Medical Marijuana Law”, Ann Toney to answer questions about what this means to Coloradans and what are the next steps. Please feel free to ask Ann your own questions in the comment section.

1.    Q: So, A64 passed, making Colorado and Washington the first states in the nation to legalize marijuana for recreational use.  What do we know about the law right now? 

A: Well, first, it will take between 30 and 60 days for the votes for the new amendment to be “certified” before the new constitutional Amendment will take effect. 

2.   Q: Does the law say anything about how marijuana is to be sold and taxed? 

A: Yes, in section (5)(d)  it states that “The General Assembly shall enact an excise tax to be levied upon marijuana sold or otherwise transferred by a marijuana cultivation facility to a marijuana product manufacturing facility or to a retail marijuana store at a rate not to exceed fifteen percent prior to January 1, 2017 and at a rate to be determined by the General Assembly thereafter.”

In the text of Amendment 64 under definitions, (2) (n) “ ‘Retail Marijuana Store‘ means an entity licensed to purchase marijuana from marijuana cultivation facilities and marijuana and marijuana products from marijuana product manufacturing facilities and to sell marijuana and marijuana products to consumers.”

3.    Q: Last week, Larimer County dropped its ban on medical marijuana dispensaries – do you think other local jurisdictions will follow suit?

A: Yes.

4.    Q: What do you see as some of the immediate fallout or consequences of the law in terms of retail shops, grow operations, and any infrastructure currently in place to regulate medical marijuana?

A: I believe, and I have always believed, they will be in an excellent position to transition into a retail shop for 21 and older customers.  While the Amendment sets out an application process to be able to qualify as an entity to cultivate or sell retail marijuana, it will be up to the legislature to set up the guidelines and then it will be up to the Department of Revenue to promulgate the regulations.  We will just have to see what, if any, deference they give to existing Optional Premises Cultivation Operations, Centers, or Marijuana Infused Product Manufacturers.  These existing medical marijuana businesses already have frameworks to be able to come into immediate compliance with any new laws.

5.    Q: There has been a lot of speculation that the federal Department of Justice will file lawsuits in Colorado and Washington to stop the Amendment from being made into law. What’s your take on the likelihood of that?

A:  I think the best indicator is history.  Look at the role the Federal government has taken on over the last three years in Colorado in response the burgeoning medical marijuana businesses.  I do not anticipate a significant response from the Federal government except maybe to remove Cannabis from Schedule 1 status which would allow them to save face in not pursuing excessive prosecutions.

Please feel free to comment on any of these questions and answers or ask your own below. Ann will be back next week for more discussion on Amendment 64.

It’s hard to believe, but the new legislative session is just around the corner and various committees have been working during the interim to craft bills to be introduced in 2013. Here’s a preview of some of the action from our friend, Chuck Brackney, at the Office of Legislative Legal Services.

The Transportation Legislation Review Committee Gets Moving
Posted on September  27, 2012 by OLLS
by Chuck Brackney

During the 2012 interim, the Transportation Legislation Review Committee (TLRC) met four times to hear presentations from a wide spectrum of individuals and groups involved in meeting Colorado’s transportation needs. It also approved eight bills for introduction in the 2013 regular session. Continue reading “Meeting Colorado’s Transportation Needs” »

What is medical marijuana? How do I get a medical marijuana card in Colorado? What are the rules about Colorado dispensaries, and how do they operate under the Colorado Medical Marijuana Code?

Our newest book, “Colorado Medical Marijuana Law,” answers these questions and much more in first-ever legal handbook about medical marijuana in Colorado.

Since its passage into law, Colorado’s medical marijuana statute has been contested and controversial. Media stories have caused confusion among patients and the many professionals who must understand the law to succeed in their businesses.

“Colorado Medical Marijuana Law” starts by focusing on Colorado’s historic legislation. Then it continues to a thorough analysis of how the law and the medical marijuana industry affect other areas of law, such as land use, the medical profession, business structures, contracts, taxation and government. Continue reading “Colorado Medical Marijuana Law Explained At Last” »