SB 25-133: Colorado Voidable Transactions Act - Colorado

Revised (03/12/2025) → PA1 (02/26/2025) · 4 edits

MODERATE

This bill updates Colorado's fraudulent transfer laws and renames the statute from the 'Colorado Uniform Fraudulent Transfers Act' to the 'Colorado Voidable Transactions Act.' The changes include adding a specific definition of insolvency for partnerships and modifying language in existing statutes to clarify debtor obligations.

Scope change

The bill's scope remains focused on fraudulent transfer laws, but it now includes an explicit definition for partnership insolvency and updates statutory language to align with federal bankruptcy code standards.

DEFINITION

Added a new definition for partnership insolvency, specifying that a partnership is insolvent if its debts exceed the fair valuation of its assets and if general partners' nonpartnership assets do not cover their nonpartnership debts.

Modified existing statutes to clarify that a debtor is insolvent if they meet the federal bankruptcy code definition of insolvency under 11 U.S.C. Section 101(32).

TECHNICAL

Renamed the statute from 'Colorado Uniform Fraudulent Transfers Act' to 'Colorado Voidable Transactions Act' and updated related bill summary text.

Corrected formatting and removed outdated revision status text, changing the document from 'Revised' to 'PREAMENDED' to reflect that it includes committee amendments not yet adopted on second reading.

Rerevised (03/13/2025) → Revised (03/12/2025) · 3 edits

MINOR

The bill text was updated from a 'Rerevised' version to a 'Revised' version, indicating it has been amended on second reading in the second house. The list of House sponsors was shortened, removing four names (Lindstedt, Marshall, Woodrow) from the original list, while the Senate sponsors remain unchanged. The revision date was updated from March 13, 2025 to March 12, 2025, reflecting the legislative process timeline.

TECHNICAL

Four House sponsors (Lindstedt, Marshall, Woodrow) were removed from the list of sponsors, likely due to changes in sponsorship or withdrawal of support.

The bill version header was updated from 'REREVISED' to 'REVISED' with updated text indicating amendments adopted on second reading in the second house.

The revision date was changed from March 13, 2025 to March 12, 2025, reflecting the most recent version of the bill.

PA2 (03/11/2025) → Rerevised (03/13/2025) · 3 edits

MINOR

The bill was revised to include all amendments adopted in the Second House, updating the sponsor list to add three new co-sponsors (Lindstedt, Marshall, Woodrow) and changing the status from a pre-amendment version to a final revised version. This indicates the bill has progressed through the legislative process and is now in its final form for consideration.

Scope change

The bill's substantive scope remains unchanged; only the legislative status and sponsor information were updated to reflect final amendments.

TECHNICAL

Added three new co-sponsors to the House sponsorship list: Lindstedt, Marshall, and Woodrow.

Removed pre-amendment status text indicating this was an unofficial version with pending committee amendments.

Added revision date and status information showing the bill is now 'Rerevised' with all amendments adopted in the Second House.

Final Act (03/28/2025) → PA2 (03/11/2025) · 5 edits

MODERATE

This bill updates Colorado's fraudulent transfer laws by renaming the 'Colorado Uniform Fraudulent Transfers Act' to the 'Colorado Voidable Transactions Act' and aligning it with uniform state laws. It adds new definitions for electronic records and entities, clarifies who counts as an 'insider' and 'affiliate', and establishes burden of proof standards for creditors. The changes aim to modernize terminology and improve consistency with other states' voidable transaction laws.

Scope change

The bill expands the scope by adding new definitions and clarifying existing ones, particularly around electronic records and insider relationships, making the law more applicable to modern business transactions.

DEFINITION

Renamed the act from 'Colorado Uniform Fraudulent Transfers Act' to 'Colorado Voidable Transactions Act' to align with uniform state law standards

Added new definitions for 'Electronic' and 'Record' to cover modern digital transaction technologies

Updated 'Affiliate' and 'Insider' definitions to clarify ownership thresholds and control relationships

REQUIREMENT

Added new subsections establishing burden of proof standards for creditors making claims under the act

TECHNICAL

Corrected pronoun usage and standardized language throughout the statute for clarity and consistency

Signed Act (04/07/2025) → Final Act (03/28/2025) · 5 edits

MODERATE

SB 25-133 updates Colorado's fraudulent transfer laws by renaming the Colorado Uniform Fraudulent Transfers Act to the Colorado Voidable Transactions Act and amending several sections of the Revised Statutes to clarify definitions and procedural requirements. The changes include formatting corrections, updated statutory references, and modifications to how transfers and obligations are defined under the law.

Scope change

The bill's scope remains focused on voidable transactions, but the renaming and amendments clarify the legal framework for creditors seeking relief against fraudulent transfers.

DEFINITION

Renamed the Colorado Uniform Fraudulent Transfers Act to the Colorado Voidable Transactions Act to better reflect the law's purpose.

Updated definitions in Section 38-8-102 to clarify insolvency standards and reference the Federal Bankruptcy Code.

REQUIREMENT

Amended Section 38-8-105 to adjust requirements for when transfers are considered made or obligations incurred, including corrections to real property transfer language.

ENFORCEMENT

Modified Section 38-8-107 to clarify standards for when transfers are made and obligations are incurred, affecting how creditors can challenge transactions.

TECHNICAL

Corrected formatting errors, capitalization issues, and statutory references throughout the bill text.

Reengrossed (03/03/2025) → Signed Act (04/07/2025) · 5 edits · Apr 7, 2025

MODERATE

This bill updates Colorado's fraudulent transfer laws by renaming the 'Colorado Uniform Fraudulent Transfers Act' to the 'Colorado Voidable Transactions Act' to better align with uniform national standards. The changes include updated definitions for key terms like 'affiliate,' 'insider,' and 'person,' new provisions regarding electronic records and signatures, and clarified burden of proof requirements for creditors seeking to void transactions. These updates modernize the statute to reflect current business practices and improve consistency with federal bankruptcy law.

Scope change

The bill expands the scope by adding new definitions and clarifying existing ones to better cover modern transaction types, including electronic records and digital signatures. It also clarifies jurisdictional rules and burden of proof standards for creditors.

DEFINITION

Updated definitions for 'affiliate' and 'insider' to clarify ownership thresholds and control relationships

Added new definitions for 'electronic,' 'record,' and 'sign' to accommodate modern digital transaction methods

REQUIREMENT

Clarified burden of proof requirements for creditors making claims under the act

ENFORCEMENT

Added specific provisions addressing transfers to insiders and antecedent debts

MODIFIED

Renamed the act from 'Uniform Fraudulent Transfers Act' to 'Voidable Transactions Act' for alignment with uniform law

Engrossed (02/28/2025) → Reengrossed (03/03/2025) · 2 edits · Mar 3, 2025

MINOR

This bill was reengrossed to include amendments adopted during the House of Introduction process. The primary change is the addition of Senator Roberts as a co-sponsor and updating the bill summary to reflect that it now includes all amendments adopted in the House of Introduction rather than just those from the second reading.

Scope change

No substantive policy changes to the bill's scope or applicability; changes are limited to sponsorship and procedural documentation.

TECHNICAL

Added Senator Roberts as a co-sponsor to the Senate sponsorship list

Updated bill summary header from 'Engrossed' to 'Reengrossed' and changed the note to indicate the summary now includes all amendments adopted in the House of Introduction

Introduced (02/05/2025) → Engrossed (02/28/2025) · 3 edits · Mar 3, 2025

MINOR

The bill was amended to simplify the definition of insolvency by removing language that allowed debtors to claim they were not insolvent due to bona fide disputes. The amendment also standardizes pronoun usage from 'his' to 'their' for gender neutrality. These changes make the insolvency presumption clearer and more inclusive.

Scope change

The bill's scope regarding insolvency definitions was narrowed by removing an exception for bona fide disputes, making it easier for creditors to challenge transfers.

DEFINITION

Removed the exception allowing debtors to avoid insolvency presumption if they had bona fide disputes over debts.

Changed 'his debts' to 'their debts' for gender neutrality in the insolvency definition.

TECHNICAL

Removed redundant text about burden of proof that was previously separated across multiple lines.

Colorado Voidable Transactions Act

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