Andy Toft, Colorado Bar Association (CBA) Real Estate and Business Law sections, stated that his sections oppose this act's introduction in Colorado. The primary objection continues to be the governing law section that allows another state to have jurisdiction over property in Colorado or having out-of-state judges interpreting and applying Colorado law. Judicial decisions interpreting Colorado law in other states will be more difficult to follow and to correct legislatively, and may not allow adequate and timely notice of litigation. The Business Law section also opposes authorizing protected series.
The commission pointed out that under existing law a balancing test is used to determine governing law and that the CBA's issues may already exist under current law. The governing law provision in the act could provide predictability in how these cases are determined and the commission proposed an updated summary for the bill to more accurately describe the act's bright-line rule. The commission also noted that the act has been adopted by 18 states and two additional states have decided to introduce the act in 2019. At some point, Colorado's law may be inconsistent with the rest of the nation.
Commissioner Steadman then moved to table consideration of LLS 19-0157: Uniform Voidable Transactions Act. Commissioner Mielke seconded and the motion carried without objection.