Committee backs coerced‑debt bill aimed at protecting domestic‑violence survivors; moves it to appropriations

The House Finance Committee voted to send House Bill 11 94 to the Committee on Appropriations with a favorable recommendation after extended testimony from survivors, advocates and fiscal staff about the scope and budgetary implications of the proposed remedy for coerced debt.

What the bill would do: Sponsors described HB 11 94 as legislation to recognize coerced debt as a form of economic abuse and to establish a civil process allowing survivors to assert that debts were incurred through coercion, fraud or identity theft. Representative Armacost, a sponsor, called coerced debt “a form of economic abuse” and said the bill removes one of the biggest mechanisms abusers use to control victims—money.

How the process would work (sponsors’ description): A survivor would submit a written statement of coerced debt and supporting documentation (police report, court order, or a qualified third-party statement). The creditor or debt collector would suspend collection while the claim is in process; if the creditor challenges the claim, the dispute would be resolved in court, with the creditor bearing the burden to prove the debt was not coerced. Sponsors acknowledged details about evidentiary standards would be resolved in subsequent drafting or at later stages.

Fiscal concerns and venue questions: Committee members and the fiscal analyst pressed sponsors on the bill’s fiscal note. The fiscal analyst explained the fiscal note assumes an increase in filings and used a 15% estimate for the increase; county‑court filing fees (cited in testimony as $115) were a key input. Members queried whether higher debt levels (for example vehicle loans or mortgages that exceed the county‑court jurisdictional cap of $25,000) would shift cases to district court and change fiscal assumptions; sponsors and advocates said they are continuing technical conversations with analysts to refine those projections.

Witness testimony: The record included multiple survivor testimonies and advocacy organizations (Violence Free Colorado, Colorado Organization for Victim Assistance, Colorado Poverty Law Project) that described the real‑world harms of coerced debt, including long‑term credit damage, wage garnishment, eviction risk and barriers to housing and employment. Several witnesses asked the committee to prioritize survivors’ economic safety and urged passage.

Outcome: Vice Chair Titone moved that HB 11 94 be referred to the Committee on Appropriations with a favorable recommendation; the motion carried with the committee reporting the final vote as 11 to 2. Committee remarks noted the strong policy rationale while acknowledging outstanding fiscal questions to be resolved in the next committee.

What’s next: The bill will receive additional fiscal review in Appropriations; sponsors and stakeholders signaled willingness to continue technical negotiations on filing‑venue assumptions and other fiscal inputs.