House Committee on Business Affairs and Labor (02/11/2009)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Date:	02/11/2009	ATTENDANCE

Time:	09:33 AM to 02:47 PM	Balmer	X
		Bradford	X
Place:	HCR 0112	Gagliardi	X
		Liston	X
This Meeting was called to order by		Priola	X
	Representative Rice	Ryden	*
		Scanlan	X
This Report was prepared by		Soper	X
	Christie Lee	Stephens	*
		Casso	X
		Rice	E
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB09-1257 HB09-1061 HB09-1224 HB09-1108 SB09-040		Referred to the Committee of the Whole Amended, Referred to Finance Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Referred to the Committee of the Whole

09:33 AM -- House Bill 09-1257

Representative Scanlan, prime sponsor, presented House Bill 09-1257 concerning the requirement that the amount of public funds invested in any one certificate of deposit may not exceed the amount insured by the Federal Deposit Insurance Corporation (FDIC). Under current law, public funds invested in any one certificate of deposit in a bank or savings and loan association may not exceed $100,000. The bill amends the cap, stating that the amount of public funds invested in any one certificate of deposit may not exceed the amount insured by the FDIC.

09:34 AM -- Barbara Walker, representing the Independent Bankers of Colorado, testified in support of the bill and responded to a question from Representative Balmer.


BILL:	HB09-1257
TIME:	09:35:28 AM
MOVED:	Balmer
MOTION:	Moved to refer House Bill 09-1257 to the Committee of the Whole. The motion passed 9-0.
SECONDED:	Priola
		VOTE
	Balmer	Yes
	Bradford	Yes
	Gagliardi	Yes
	Liston	Excused
	Priola	Yes
	Ryden	Yes
	Scanlan	Yes
	Soper	Yes
	Stephens	Yes
	Casso	Yes
	Rice	Excused

Final YES: 9 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

09:36 AM -- House Bill 09-1061

Representative McGihon, prime sponsor, presented House Bill 09-1061 concerning required health care disclosures involving insurance carrier business relationships with intermediary entities. This bill requires health insurance companies to provide the Division of Insurance, Department of Regulatory Agencies, a list of the average reimbursement rates for the 25 most common outpatient procedures. In addition, companies are to provide detailed disclosures to the division regarding all business relationships with intermediaries that perform any of the following:

set standards of care and practice guidelines;
prior authorizations;
select participating in-network providers;
negotiate or set reimbursement rates;
obtain insurance contracts for health care providers; and
issue credentials to providers.

Insurance companies are to distribute these disclosures to their policyholders upon issuance or renewal of an insurance policy. The division will post all the information provided under HB09-1061 on the division's website. The sponsor distributed and discussed a strike below amendment L.004 (Attachment A) and a technical amendment to the strike below, amendment L.006 (Attachment B). Representative McGihon stated that the bill does not apply to Pharmacy Benefits Managers. Representative Balmer asked if the sponsor would be open to an amendment to state that in the bill.

09:44 AM -- Betsy Murray and Martin Lavine, representing the Colorado Chapter of the American Physical Therapy Association, testified in support of the bill.

09:48 AM -- Edie Sonn, representing the Colorado Medical Society, testified in support of the bill.

09:49 AM -- Ben Price, the Executive Director of the Colorado Association of Health Plans, testified in support of the amendments to the bill.

09:50 AM

There was a discussion about the strike below that adds that a violation of the bill would be an unfair or deceptive trade practice and the possible increase of litigation. Representative Stephens questioned why the bill was necessary since there are already remedies available for the acts provided in the bill.


BILL:	HB09-1061
TIME:	10:01:50 AM
MOVED:	Gagliardi
MOTION:	Moved amendment L.004 (Attachment A), as amended. The motion passed without objection.
SECONDED:	Soper
		VOTE
	Balmer
	Bradford
	Gagliardi
	Liston	Excused
	Priola
	Ryden
	Scanlan
	Soper
	Stephens
	Casso
	Rice	Excused

Not Final YES: 0 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1061
TIME:	10:12:30 AM
MOVED:	Gagliardi
MOTION:	Moved amendment L.006 (Attachment B) to amendment L.004 (Attachment A). The motion passed without objection.
SECONDED:	Ryden
		VOTE
	Balmer
	Bradford
	Gagliardi
	Liston	Excused
	Priola
	Ryden
	Scanlan
	Soper
	Stephens
	Casso
	Rice	Excused

Not Final YES: 0 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1061
TIME:	10:15:00 AM
MOVED:	Soper
MOTION:	Moved to refer House Bill 09-1061, as amended, to the Committee on Finance. The motion passed 5-4.
SECONDED:	Gagliardi
		VOTE
	Balmer	No
	Bradford	No
	Gagliardi	Yes
	Liston	Excused
	Priola	No
	Ryden	Yes
	Scanlan	Yes
	Soper	Yes
	Stephens	No
	Casso	Yes
	Rice	Excused

Final YES: 5 NO: 4 EXC: 2 ABS: 0 FINAL ACTION: PASS

10:16 AM

The committee recessed.

01:33 PM -- House Bill 09-1224

Representative Schafer, prime sponsor, presented House Bill 09-1224 concerning a prohibition on the consideration of gender in setting rates for individual health insurance policies. This bill prohibits insurance companies from using gender as a factor in determining the rate for an individual health insurance policy. Representative Schafer said she has a strike below that will send this issue to an interim committee to look in to. She discussed some statistics on individual health insurance and stated there are about 180,000 consumers in the individual insurance market in Colorado. Representative Schafer said if the interim study finds there is discrimination in individual health insurance based on gender, then she will bring this bill up again next session.

01:41 PM -- A.W. Schnellbacher, representing the AARP, testified in support of the bill and distributed a handout to the committee (Attachment C). He said that there is a 5 to 6 percent add on for age and gender in Pueblo.

01:43 PM -- Robert Semro, representing the Colorado Consumer Health Initiative, testified in support of the bill. He stated that civil rights laws prohibit the employer provided market from using gender in determining health insurance rates. Mr. Semro talked about a National Women Law Center report entitled No Where to Turnthat came out in 2008 and its findings.

01:46 PM -- James Hall, representing American Council of Life Insurers, testified in support of the amendment to the bill and thanked the sponsor for working with them.

01:46 PM -- Melinda Reed, representing the American Association of University Women, testified in support of the bill and/or the amendment. She said women pay more even excluding maternity coverage.

01:48 PM -- Marcy Morrison, the Colorado Insurance Commissioner, testified in support of the bill. She said she prepared to discuss the bill and not the amendment and said that the prior witness' testimony are correct in that women are charged more in the individual health insurance market then men. The commissioner stated that the study is an appropriate approach to this issue. Representative Stephens said there is a boom in women having children and asked how the committee can ensure the Health Care Task Force will be presented with accurate statistics and information. Commissioner Morrison stated that consumers, the industry, and the Division of Insurance will all be involved and present information to the task force. She stated that in addition to women Representative Stephens was talking about, there are also many women who are self employed that are having children that are paying for individual health insurance.

01:56 PM

Representative Liston talked about the women in California that had octuplets and the public outcry and said he would like to see that issue looked at during the interim as well. Ms. Morrison said the women did have insurance through Kaiser and that the doctor that helped with her fertilization is being investigated by the medical society.

02:00 PM

Representative Casso stated that Chairman Rice would like to discuss the bill and laid it over until Tuesday, February 17 for action only.

02:03 PM -- House Bill 09-1108

Representative A. Kerr, prime sponsor, presented House Bill 09-1108 concerning the failure of an employer's bank to honor an employee's paycheck upon presentment. This bill adds employee protections and employer penalties to the Colorado Wage Act. It addresses situations when an employee's paycheck is not honored by the employer's bank causing the employee's account to have insufficient funds to pay bills. If this occurs 2 or more times within a 24 month period, the director of the Department of Labor and Employment will issue a letter to the affected employee, stating the employee is not liable for damages (overdraft fees, insufficient check charges, late fees) from having insufficient funds. The director will also fine the employer $50 per day per employee.

02:05 PM

Representative A. Kerr distributed amendment L.001 (Attachment D). He said the amendment changes the bill from stating that the director "shall investigate complaints" to "may investigate complaints" which will impact the fiscal note because now the director does not have to investigate every complaint. The amendment would also allow the employee to recover actual damages caused by the nonpayment, including associated late fees in addition to the actual paycheck. Representative Soper asked about the $50 per day fee and whether it would be in the bill if the amendment passes. Representative A. Kerr stated the $50 fee is already in law. Representative Balmer asked why the bill is necessary if current law already provides remedies. Representative A. Kerr responded to the question and additional questions about the fiscal note if the amendment passes. Representative Ryden asked if the bill addresses civil cases and not criminal. Representative A. Kerr said the bill only addresses civil cases.

02:28 PM -- Michael McArdle, Director of the Division of Labor within the Department of Labor and Employment, provided information on the bill and responded to questions. He said the amendment would remove the fiscal impact. The director talked about the procedures they use to recover paychecks for employees. He said they usually advise employees to go to civil court to receive the additional damages. Representative Soper asked if the employer receives a bounced check for services that unintentionally causes paychecks to bounce, who would be at fault. Mr. McArdle stated he believed the person who wrote the initial bad check would be at fault. He responded to additional questions.

02:28 PM

Representative Casso stated that Chairman Rice would like to discuss the bill and laid it over until Tuesday, February 17 for action only.

02:34 PM -- Senate Bill 09-040

Representative Soper, prime sponsor, presented Senate Bill 09-040 which makes several modifications to the recording requirements for documents related to a manufactured home. These changes include rules regarding the submission of information for recording, requesting title, deeds, certificates, abandonment, and other legal real or personal property documentation concerning manufactured housing. Representative Soper stated that Senate Bill 09-040 is a clean up of a 2008 bill regarding the titling and reporting for manufactured and mobile homes.

02:35 PM -- Pam Nielsen, the Motor Vehicle Manager for Larimer County Clerk and Recorders Office, testified in support of the bill. She discussed the agencies and departments that support Senate Bill 09-040. Ms. Nielsen explained that she was part of task force called the Mobile Homes Working Group, and listed the agencies involved in the task force. She stated that last year's bill was an overhaul of the requirements related to manufactured homes, but that more changes still needed to be made, particularly for issues involving long-term land leases. Ms. Nielsen discussed other technical changes made by the bill and why they were necessary to help the recording process.


BILL:	SB09-040
TIME:	02:46:09 PM
MOVED:	Soper
MOTION:	Moved to refer Senate Bill 09-040 to the Committee of the Whole. The motion passed 9-0.
SECONDED:	Gagliardi
		VOTE
	Balmer	Yes
	Bradford	Yes
	Gagliardi	Yes
	Liston	Yes
	Priola	Excused
	Ryden	Yes
	Scanlan	Yes
	Soper	Yes
	Stephens	Yes
	Casso	Yes
	Rice	Excused

Final YES: 9 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

02:47 PM

The committee adjourned.