SB 25-016: Updating Escrow Disbursement Practices - Colorado

Rerevised (03/13/2025) → PA1 (01/29/2025) · 4 edits

MODERATE

The bill was amended to add a new category of funds eligible for immediate withdrawal from escrow accounts, specifically credits to escrow accounts where final settlement has been confirmed. The amendment also clarifies the definition of wire transfers to include those processed through the Clearing House Payments Company's Real-Time Payments System, and updates the effective date section to include referendum petition procedures.

Scope change

The bill's scope was expanded to include credits to escrow accounts as an additional category of funds eligible for immediate withdrawal, alongside existing categories like wire transfers and certified checks.

ELIGIBILITY

Added credits to escrow accounts as a new category of funds eligible for immediate withdrawal when final settlement is confirmed by the financial institution.

DEFINITION

Updated the definition of wire transfers to explicitly include those processed through the Clearing House Payments Company's Real-Time Payments System.

REQUIREMENT

Added requirement that financial institutions must confirm final settlement of credited funds before those funds can be immediately withdrawn from escrow.

TIMELINE

Revised the effective date section to clarify referendum petition procedures and when the act takes effect if approved by voters.

Revised (03/12/2025) → Rerevised (03/13/2025) · 2 edits

MINOR

The bill was rerevised to include all amendments adopted in the Second House, updating the sponsorship list to add four new co-sponsors (Bacon, Bird, Caldwell, Marshall) and changing the revision status from 'Revised' to 'Rerevised' to reflect the latest legislative action. No substantive policy changes, funding adjustments, or eligibility criteria were modified in this revision.

TECHNICAL

Added four new House co-sponsors (Bacon, Bird, Caldwell, Marshall) to the bill's sponsorship list, expanding bipartisan support.

Updated revision status header from 'Revised' to 'Rerevised' and adjusted explanatory text to indicate amendments were adopted in the Second House rather than on Second Reading.

PA2 (03/11/2025) → Revised (03/12/2025) · 3 edits

MINOR

The bill was revised to include all amendments adopted during second reading in the Second House, updating the list of co-sponsors to include Weinberg alongside Boesenecker. The document header was also updated to reflect that this version includes all adopted amendments rather than unofficial committee amendments.

TECHNICAL

Co-sponsor list was updated to add Weinberg to the House sponsorship section.

Document header was changed from 'PREAMENDED' to 'REVISED' to indicate this version includes all adopted amendments.

Added 'Amended 2nd Reading March 12, 2025' notice to the document.

Final Act (03/20/2025) → PA2 (03/11/2025) · 4 edits

MODERATE

This bill updates Colorado's escrow disbursement rules for real estate transactions to align with modern payment systems. It clarifies that wire transfers must go through Federal Reserve or Clearing House Payments Company systems to qualify for immediate withdrawal, while adding new provisions for instant payments and funds credited after final settlement confirmation.

Scope change

The bill's scope remains focused on real estate transaction escrow disbursements, but the definition of qualifying payment methods has been expanded and refined to include modern payment technologies.

DEFINITION

Wire transfer funds now must be processed through Federal Reserve or Clearing House Payments Company systems to qualify for immediate withdrawal as a matter of right.

Added provisions for instant payments processed through Federal Reserve or Clearing House Payments Company's real-time payment systems.

New provision allows funds credited to escrow accounts to be immediately withdrawn once the financial institution confirms final settlement has occurred.

TECHNICAL

Added bill header information including session details, committee assignments, and amendment status indicators.

Signed Act (03/26/2025) → Final Act (03/20/2025) · 3 edits

MINOR

This bill update primarily involves formatting and signature line corrections rather than substantive policy changes. The text was reorganized to reflect proper legislative signing procedures, with corrected names for legislative officers and standardized formatting for the final act approval section.

TECHNICAL

Header and signature lines were corrected to show proper legislative officer names (Julie McCluskie instead of u to McClu e, Vanessa Reilly instead of VetiNwe/. Esther van Mourik) and standardized the Governor's signature line format.

Added a note explaining that the bill has been prepared for signatures and directing readers to consult legislative status sheets for Governor action.

Reorganized the bill structure to move the bill title and sponsor information to standard positions, with the enacting clause appearing after the title rather than before.

Reengrossed (02/06/2025) → Signed Act (03/26/2025) · 2 edits · Mar 26, 2025

MINOR

The bill was reengrossed to update sponsor lists and correct formatting errors in the text, while the substantive policy changes regarding escrow disbursement rules remain identical to the previous version. The core amendment to C.R.S. 38-35-125, which defines funds available for immediate withdrawal in real estate transactions, was not altered.

TECHNICAL

Updated the list of Senate and House sponsors to reflect the current legislative leadership, removing names that were no longer associated with the bill.

Corrected formatting and layout errors in the header and footer sections, including page numbering and signature lines.

Engrossed (02/05/2025) → Reengrossed (02/06/2025) · 3 edits · Feb 6, 2025

MINOR

The bill title was updated from 'Engrossed' to 'Reengrossed' to reflect that it now includes all amendments adopted in the House of Introduction. The Senate sponsorship list was expanded to include five additional co-sponsors (Bright, Carson, Coleman, Jaquez Lewis, Kipp, Marchman, Michaelson Jenet). A new note was added indicating the bill passed third reading unamended on February 6, 2025.

TECHNICAL

Updated bill status from 'Engrossed' to 'Reengrossed' to reflect inclusion of House amendments.

Added five new Senate co-sponsors to the bill sponsorship list.

Added a note indicating the bill passed third reading unamended on February 6, 2025.

Introduced (01/08/2025) → Engrossed (02/05/2025) · 2 edits · Feb 6, 2025

MINOR

The bill was amended to expand the definition of funds available for immediate withdrawal in real estate transactions. The Senate added the Clearing House Payments Company's Real-Time Payments System alongside the Federal Reserve as an approved funds-transfer system, and clarified that escrow account credits are included if the bank confirms final settlement of those funds.

Scope change

The scope of eligible payment methods was expanded to include Clearing House Payments Company systems and clarified escrow credit conditions.

DEFINITION

Added the Clearing House Payments Company's Real-Time Payments System as an approved funds-transfer system for immediate withdrawal purposes.

Clarified that escrow account credits are included if the bank or financial institution confirms to the individual or entity that final settlement of the credited funds has occurred.

Updating Escrow Disbursement Practices

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