(June 7) – Yesterday, Gov. John Hickenlooper signed three bills by Rep. Pete Lee that are designed to support small businesses in Colorado by cleaning up outdated rules and providing clarity across different corporate entity structures.
Rep. Lee worked closely with the business section of the Colorado Bar Association to develop this legislation so that it provides the best clarity and guidance possible for businesses entering partnerships or conducting common transactions.
“Though technical in nature, these laws cut unnecessary red tape for small businesses and help facilitate common business transactions,” said Rep. Lee, D-Colorado Springs.
The first bill signed this morning, HB16-1330, ensures that people can revoke filings with the Secretary of State’s office that were made in error. In just three months, there were 13 requests made to the office to undo filings made in error—including two dissolutions of business and two entity name changes.
“There is currently no way for these businesses to revoke mistaken filings in entirety, which can lead to unintended legal consequences,” said Rep. Lee. “It’s crucial for businesses to be able to be unable to undo these mistakes and protect their business.”
Two other bills aim to protect the sanctity of oral agreements. The first, HB16-1333, updates several aspects of the Colorado Limited Liability Company Act to be consistent with partnership laws. It protects the sanctity of oral agreements by allowing parties to prove the substance of an oral operating agreement.
The second, HB16-1329, updates aspects of the Colorado Uniform Partnership Law and Act and excludes consideration of the statute of frauds—which declares that certain kinds of contracts have to be in writing in order to be enforceable in a court of law—when attempting to prove an oral partnership agreement.