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Committee advances Colorado Avoidable Transaction Act with technical amendment
Summary
The House Finance Committee gave Senate Bill 133 a super‑favorable recommendation to the Committee of the Whole after sponsors and the Colorado Bar Association described the measure as a modernization of fraudulent‑transfer law; one technical amendment was adopted.
The House Finance Committee voted to advance Senate Bill 133, the proposed Colorado Avoidable Transaction Act, to the Committee of the Whole with a super‑favorable recommendation after sponsors described the measure as a modernization of Colorado’s fraudulent‑transfer law.
Representative Camacho, a sponsor, said the bill updates Colorado law so courts and creditors can better address transfers made to hinder, delay or defraud creditors. “This bill represents an important modernization of our state's legal framework for addressing fraudulent and improper financial transactions,” Camacho told the committee, citing updates such as a name change from the Colorado Uniform Fraudulent Transaction Act (CUFTA) to the Colorado Avoidable Transaction Act and clarifying choice‑of‑law and electronic‑record provisions.
Representatives Soper and Camacho said the draft aligns Colorado with modern national practice while preserving Colorado‑specific provisions. Witnesses from the Colorado Bar Association — Holly Shillett and Haley Lamborin — said the Bar’s business‑law and trust/estates sections helped draft the bill and that it clarifies technical definitions (including “insider”) and maintains the existing civil burden of proof (preponderance of the evidence).
The sponsors offered and the committee adopted amendment L002 (described during testimony as removing a particular comment 8 and refining statutory language to preserve Colorado‑specific practice). With that amendment, Representative Camacho moved the bill to the Committee of the Whole with a super favorable recommendation; the committee recorded the final tally as 10‑3 in favor.
The measure’s sponsors emphasized the bill does not create new liabilities but clarifies and modernizes existing rescue powers to improve predictability in commercial litigation. Committee members had technical and evidentiary questions but deferred some to the expert witnesses.
Ending: Senate Bill 133 will go to the Committee of the Whole as amended; sponsors said they expect further floor work and possible additional technical fixes.
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