CO HB1270

Excludes owner's interests in business entities from Colorado's Uniform Commercial Code provisions governing security interests, assignment restrictions, and account debtor protections under sections 4-9-406 and 4-9-408.

Amends C.R.S. 4-9-406 to add new subsection (l) specifying that discharge and assignment restrictions do not apply to owner's interests as defined in section 7-90-102(44).

Amends C.R.S. 4-9-408 to add new subsection (g) stating that restrictions on assignment of promissory notes and general intangibles do not apply to owner's interests in business entities.

Updates C.R.S. 7-90-104 to clarify that both subsections (d) through (f) of section 4-9-406 and section 4-9-408 do not apply to assignments, transfers, or security interests in owner's interests.

Takes effect 90 days after final adjournment of the general assembly (August 10, 2016) unless subject to referendum petition, in which case approval by voters in November 2016 is required.