Date: 10/16/2009

Final
Approval of Bills

INTERIM COMMITTEE TO STUDY ISSUES RELATED TO PINNACOL ASSURANCE

Votes: View--> Action Taken:
Move Amendment 1 to Bill 11 (Attachment U). The m
Move Amendment 1 to Bill 13 (Attachment V). The m
Move Amendment 1 to Bill 3 (Attachment R). The mo
Move Amendment 1 to Bill 4, as amended (Attachment
Move Amendment 2 to Bill 4 (Attachment T). The mo
Move an amendment to clarify the annuity provided
Move Bill 11 to the Legislative Council as an inte
Move Bill 12 to the Legislative Council as an inte
Move Bill 13 to the Legislative Council as an inte
Move Bill 14 to the Legislative Council as an inte
Move Bill 1, as amended, to the Legislative Counci
Move Bill 2 to the Legislative Council as an inter
Move Bill 3 to the Legislative Council as an inter
Move Bill 4 to the Legislative Council as an inter
Move to amend Amendment 1, line 17, after "evidenc
Move to amend Bill 1 to define claim on line 6, pa
Move to amend Bill 1 to give whistle blower protec
Move to amend Bill 14, page 5, at the end of line
Move to amend Bill 4 to add that upon closure of a
Pass Without Objection
PASS
PASS
Pass Without Objection
Pass Without Objection
Pass Without Objection
PASS
PASS
PASS
PASS
PASS
FAIL
PASS
PASS
Pass Without Objection
PASS
PASS
Pass Without Objection
PASS


02:27 PM -- Approval of Bills

Senator Hodge moved Bill 1 concerning accountability for workers' compensation insurers. Mr. Ross suggested better defining the close of each claim and stated that there are claims with no loss time that are not reported to the division. He also commented on the annual report requirement and asked that the committee not require information that is already included in the annual report Pinnacol Assurance is already required to provide. Senator Hodge said she would like to leave the definitions up to the director. Senator Harvey asked the drafters to comment. Kristen Forrestal, OLLS, commented. Ms. Parry agreed with Mr. Ross and asked that the definition of closed claims be kept to only loss time claims.
BILL:Approval of Bills
TIME: 02:31:48 PM
MOVED:Harvey
MOTION:Move to amend Bill 1 to define claim on line 6, page 1, to mean claims that are already required to be filed with the division of insurance. The motion passed 10-0.
SECONDED:
VOTE
Gardner B.
Yes
Gerou
Yes
Harvey
Yes
Hodge
Yes
Miklosi
Yes
Mitchell
Yes
Ryden
Yes
Tochtrop
Yes
Johnson
Meersman
Morrison
Absent
Parry
Ross
Simon
Pace
Yes
Carroll M.
Yes
Not Final YES: 10 NO: 0 EXC: 0 ABS: 1 FINAL ACTION: PASS

Mr. Simon requested that perks be added to the report requirement in the bill. Representative Gerou commented that the bill will raise costs for businesses. Senator Carroll commented on the report and stated that Pinnacol can afford to do it and that she believes the information from the survey will be helpful. Mr. Ross pointed out the fact that the bill includes other workers' compensation insurers and that his comments speak only to Pinnacol Assurance and not the other insurers.
BILL:Approval of Bills
TIME: 02:54:27 PM
MOVED:Carroll M.
MOTION:Move to amend Bill 1 to give whistle blower protection to claimants who file a complaint or take a survey. The motion passed 10-0.
SECONDED:
VOTE
Gardner B.
Yes
Gerou
Yes
Harvey
Yes
Hodge
Yes
Miklosi
Yes
Mitchell
Yes
Ryden
Yes
Tochtrop
Yes
Johnson
Meersman
Morrison
Absent
Parry
Ross
Simon
Pace
Yes
Carroll M.
Yes
Not Final YES: 10 NO: 0 EXC: 0 ABS: 1 FINAL ACTION: PASS

Mr. Meersman commented that if he were a voting member, he would vote no on the bill because he feels it does not fall under the charge of the committee. Senator Harvey commented on an earlier comment regarding the costs of the report being absorbed by Pinnacol. Representative B. Gardner also commented on the bill and the scope of the committee. Senator Mitchell commented on the scope of the committee and talked about the current amount of oversight over Pinnacol Assurance and pointed out that it is more than other insurers. Senator Tochtrop commented. Representative Ryden said it would not be fair if the bill only addressed Pinnacol Assurance. Representative Gardner commented on the scope of the committee. Mr. Ross talked about the performance audit in Senate Bill 281 and continuing audits and requested that all of the bills be looked at so Pinnacol Assurance does not have to pay and do the same report twice.
BILL:Approval of Bills
TIME: 03:06:28 PM
MOVED:Hodge
MOTION:Move Bill 1, as amended, to the Legislative Council as an interim committee bill. The motion passed 6-4.
SECONDED:
VOTE
Gardner B.
No
Gerou
No
Harvey
No
Hodge
Yes
Miklosi
Yes
Mitchell
No
Ryden
Yes
Tochtrop
Yes
Johnson
Meersman
Morrison
Absent
Parry
Ross
Simon
Pace
Yes
Carroll M.
Yes
Final YES: 6 NO: 4 EXC: 0 ABS: 1 FINAL ACTION: PASS

Senator Hodge said she would like the bill to begin in the Senate and that she would be the prime sponsor of the bill in the Senate and Representative Ryden would be the House sponsor. Co-sponsors of the bill are Representatives Miklosi and Pace and Senators Carroll and Tochtrop.

03:22 PM

Representative B. Gardner moved Bill 2 concerning the functioning of Pinnacol Assurance, adding additional members to the board of directors of Pinnacol Assurance, and changing per diem compensation for members of the board. Representative Gardner commented on his bill and talked about the board provision. Senator Tochtrop asked whether he will be supporting Bill 9. Representative Gardner was asked to discuss why the CEO should be on the board. Mr. Simon asked whether Mr. Ross currently attends the board meetings. Mr. Johnson responded that Mr. Ross attends the meetings unless they request him to not sit in the meeting. Mr. Johnson commented on the bill and stated the board had not had time to review it thoroughly. Mr. Meersman commented that he feels it may not be necessary to have the CEO on the board.
BILL:Approval of Bills
TIME: 03:34:29 PM
MOVED:Gardner B.
MOTION:Move Bill 2 to the Legislative Council as an interim committee bill. The motion failed 7-3.
SECONDED:
VOTE
Gardner B.
Yes
Gerou
Yes
Harvey
No
Hodge
No
Miklosi
No
Mitchell
Yes
Ryden
No
Tochtrop
No
Johnson
Meersman
Morrison
Absent
Parry
Ross
Simon
Pace
No
Carroll M.
No
Final YES: 3 NO: 7 EXC: 0 ABS: 1 FINAL ACTION: FAIL

03:39 PM

Representative Ryden moved and discussed Bill 3, the Workers' Compensation Policyholder Protection Act of 2010. She talked about Amendment 1 that would change the threshold of the surplus dividend trigger from 1,000 percent of RBC to 800 percent of RBC (Attachment R). Mr. Ross asked Representative Ryden where the percent came from. Representative Ryden said she looked at other companies' numbers. Senator Mitchell commented.

Attachment R.pdf
BILL:Approval of Bills
TIME: 03:52:44 PM
MOVED:Ryden
MOTION:Move Amendment 1 to Bill 3 (Attachment R). The motion passed 7-3.
SECONDED:
VOTE
Gardner B.
Yes
Gerou
No
Harvey
No
Hodge
Yes
Miklosi
Yes
Mitchell
No
Ryden
Yes
Tochtrop
Yes
Johnson
Meersman
Morrison
Absent
Parry
Ross
Simon
Pace
Yes
Carroll M.
Yes
Not Final YES: 7 NO: 3 EXC: 0 ABS: 1 FINAL ACTION: PASS

03:57 PM

Members commented on the bill. Mr. Johnson said the bill takes away all the flexibility the board has to set the surplus and gave an example of a catastrophic event that could cause a mass number of claims and a need for an adjustment outside the limits in the bill. Mr. Ross added that from 1983 to 2004 Pinnacol was unable to give out dividends. Mr. Meersman commented on the bill and the complexity of the insurance industry. Representative Gerou commented on the bill.
BILL:Approval of Bills
TIME: 04:07:02 PM
MOVED:Ryden
MOTION:Move Bill 3 to the Legislative Council as an interim committee bill, as amended. The motion passed 6-4.
SECONDED:
VOTE
Gardner B.
No
Gerou
No
Harvey
No
Hodge
Yes
Miklosi
Yes
Mitchell
No
Ryden
Yes
Tochtrop
Yes
Johnson
Meersman
Morrison
Absent
Parry
Ross
Simon
Pace
Yes
Carroll M.
Yes
Final YES: 6 NO: 4 EXC: 0 ABS: 1 FINAL ACTION: PASS

Representative Ryden said she would like the bill to begin in the House and that she would be the prime sponsor of the bill in the House and Senator Tochtrop would be the Senate sponsor. Co-sponsors of the bill are Representatives Miklosi and Pace and Senators Carroll and Hodge.

04:08 PM

Representative Pace moved Bill 4 concerning limitations on the use of surveillance of employees who have submitted a workers' compensation claim and Amendments 1 and 2 (Attachments S and T respectfully). He discussed the key points of Amendment 1. Mr. Simon suggested adding "in good faith" to line 17 of the amendment after "evidence".

Attachment S.pdf Attachment T.pdf
BILL:Approval of Bills
TIME: 04:14:24 PM
MOVED:Pace
MOTION:Move to amend Amendment 1, line 17, after "evidence", add "in good faith". The motion passed without objection.
SECONDED:
VOTE
Gardner B.
Gerou
Harvey
Hodge
Miklosi
Mitchell
Ryden
Tochtrop
Johnson
Meersman
Morrison
Absent
Parry
Ross
Simon
Pace
Carroll M.
Not Final YES: 0 NO: 0 EXC: 0 ABS: 1 FINAL ACTION: Pass Without Objection
BILL:Approval of Bills
TIME: 04:17:28 PM
MOVED:Pace
MOTION:Move Amendment 1 to Bill 4, as amended (Attachment S). The motion passed without objection.
SECONDED:
VOTE
Gardner B.
Gerou
Harvey
Hodge
Miklosi
Mitchell
Ryden
Tochtrop
Johnson
Meersman
Morrison
Absent
Parry
Ross
Simon
Pace
Carroll M.
Not Final YES: 0 NO: 0 EXC: 0 ABS: 1 FINAL ACTION: Pass Without Objection
BILL:Approval of Bills
TIME: 04:17:44 PM
MOVED:Pace
MOTION:Move Amendment 2 to Bill 4 (Attachment T). The motion passed without objection.
SECONDED:
VOTE
Gardner B.
Gerou
Harvey
Hodge
Miklosi
Mitchell
Ryden
Tochtrop
Johnson
Meersman
Morrison
Absent
Parry
Ross
Simon
Pace
Carroll M.
Not Final YES: 0 NO: 0 EXC: 0 ABS: 1 FINAL ACTION: Pass Without Objection

Attachment T.pdf

04:20 PM

The committee continued discussing Bill 4 and possible amendments. There was a discussion about what happens to surveillance materials once they are no longer needed.
BILL:Approval of Bills
TIME: 04:21:07 PM
MOVED:Carroll M.
MOTION:Move to amend Bill 4 to add that upon closure of a claim, the surveillance materials be destroyed unless they are reasonably necessary for an ongoing investigation and the statute of limitations for a potential court proceeding has expired. The motion passed without objection.
SECONDED:
VOTE
Gardner B.
No
Gerou
No
Harvey
Excused
Hodge
Yes
Miklosi
Yes
Mitchell
No
Ryden
Yes
Tochtrop
Yes
Johnson
Meersman
Morrison
Absent
Parry
Ross
Simon
Pace
Yes
Carroll M.
Yes
Not Final YES: 6 NO: 3 EXC: 1 ABS: 1 FINAL ACTION: PASS

04:30 PM

Ms. Parry commented on surveillance. A discussion ensued regarding surveillance and how it is used in workers' compensation claims. Senator Mitchell and Representative B. Gardner commented. Mr. Meersman said that he believes the bill is outside the scope of the committee.
BILL:Approval of Bills
TIME: 04:40:21 PM
MOVED:Pace
MOTION:Move Bill 4 to the Legislative Council as an interim committee bill, as amended. The motion passed 6-2.
SECONDED:
VOTE
Gardner B.
No
Gerou
No
Harvey
Excused
Hodge
Yes
Miklosi
Yes
Mitchell
Absent
Ryden
Yes
Tochtrop
Yes
Johnson
Meersman
Morrison
Absent
Parry
Ross
Simon
Pace
Yes
Carroll M.
Yes
Final YES: 6 NO: 2 EXC: 1 ABS: 2 FINAL ACTION: PASS

Representative Pace said he would like the bill to begin in the House and that he would be the prime sponsor of the bill in the House and Senator Carroll would be the Senate sponsor. Co-sponsors of the bill are Representatives Miklosi and Ryden and Senators Tochtrop and Hodge.

04:46 PM

No motion was made to vote on Bills 6 and 7. Representative Ryden withdrew Bill 8 concerning the reinstatement of vocational rehabilitation benefits in workers' compensation. No motion was made to vote on Bills 9 or 10.

04:47 PM

Representative Miklosi moved Bill 11 concerning the board of directors of Pinnacol Assurance. There was a discussion about the injured worker that would be added to the board under the bill.
BILL:Approval of Bills
TIME: 04:49:52 PM
MOVED:Miklosi
MOTION:Move Amendment 1 to Bill 11 (Attachment U). The motion passed without objection.
SECONDED:
VOTE
Gardner B.
Gerou
Harvey
Hodge
Miklosi
Mitchell
Ryden
Tochtrop
Johnson
Meersman
Morrison
Absent
Parry
Ross
Simon
Pace
Carroll M.
Not Final YES: 0 NO: 0 EXC: 0 ABS: 1 FINAL ACTION: Pass Without Objection

Attachment U.pdf

Mr. Johnson asked about the political appointment to the board.
BILL:Approval of Bills
TIME: 04:54:50 PM
MOVED:Miklosi
MOTION:Move Bill 11 to the Legislative Council as an interim committee bill, as amended. The motion passed 6-2.
SECONDED:
VOTE
Gardner B.
No
Gerou
No
Harvey
Excused
Hodge
Yes
Miklosi
Yes
Mitchell
Absent
Ryden
Yes
Tochtrop
Yes
Johnson
Meersman
Morrison
Absent
Parry
Ross
Simon
Pace
Yes
Carroll M.
Yes
Final YES: 6 NO: 2 EXC: 1 ABS: 2 FINAL ACTION: PASS

Representative Miklosi said he would like the bill to begin in the House and that he would be the prime sponsor of the bill in the House and Senator Hodge would be the Senate sponsor. Co-sponsors of the bill are Representatives Pace and Ryden and Senators Tochtrop and Carroll.

05:06 PM

Senator Tochtrop moved Bill 12 concerning increased penalties for violations of the workers' compensation laws.
BILL:Approval of Bills
TIME: 05:06:09 PM
MOVED:Tochtrop
MOTION:Move Bill 12 to the Legislative Council as an interim committee bill. The motion passed 6-2.
SECONDED:
VOTE
Gardner B.
No
Gerou
No
Harvey
Excused
Hodge
Yes
Miklosi
Yes
Mitchell
Absent
Ryden
Yes
Tochtrop
Yes
Johnson
Meersman
Morrison
Absent
Parry
Ross
Simon
Pace
Yes
Carroll M.
Yes
Final YES: 6 NO: 2 EXC: 1 ABS: 2 FINAL ACTION: PASS

Senator Tochtrop said she would like the bill to begin in the Senate and that she would be the prime sponsor of the bill in the Senate and Representative Pace would be the House sponsor. Co-sponsors of the bill are Representatives Miklosi and Ryden and Senators Carroll and Hodge.

05:10 PM

Senator Carroll moved Bill 13 concerning measures to reduce conflicts of interest in workers' compensation cases. She explained that workers do not have HIPPA protections. Representative Gerou asked whether a doctor would see it fit to not share information with a patient. Ms. Parry said it is possible, but very rare. Mr. Ross asked a number of clarifying questions of the sponsor.
BILL:Approval of Bills
TIME: 05:23:13 PM
MOVED:Carroll M.
MOTION:Move Amendment 1 to Bill 13 (Attachment V). The motion passed without objection.
SECONDED:
VOTE
Gardner B.
No
Gerou
No
Harvey
Excused
Hodge
Yes
Miklosi
Yes
Mitchell
Absent
Ryden
Yes
Tochtrop
Yes
Johnson
Meersman
Morrison
Absent
Parry
Ross
Simon
Pace
Yes
Carroll M.
Yes
Not Final YES: 6 NO: 2 EXC: 1 ABS: 2 FINAL ACTION: PASS

Attachment V.pdf

Mr. Simon asked that Medicaid be first in line to be reimbursed.
BILL:Approval of Bills
TIME: 05:24:18 PM
MOVED:Carroll M.
MOTION:Move an amendment to clarify the annuity provided in the bill to be indemnity-based benefits. The motion passed without objection.
SECONDED:
VOTE
Gardner B.
Gerou
Harvey
Hodge
Miklosi
Mitchell
Ryden
Tochtrop
Johnson
Meersman
Morrison
Absent
Parry
Ross
Simon
Pace
Carroll M.
Not Final YES: 0 NO: 0 EXC: 0 ABS: 1 FINAL ACTION: Pass Without Objection

05:28 PM

Representative Gardner commented that he feels the bill is beyond the scope of the committee. Mr. Meersman agreed. Representative Gerou said she feels the bill will drive up costs for businesses.
BILL:Approval of Bills
TIME: 05:28:43 PM
MOVED:Carroll M.
MOTION:Move Bill 13 to the Legislative Council as an interim committee bill, as amended. The motion passed 6-2.
SECONDED:
VOTE
Gardner B.
No
Gerou
No
Harvey
Excused
Hodge
Yes
Miklosi
Yes
Mitchell
Absent
Ryden
Yes
Tochtrop
Yes
Johnson
Meersman
Morrison
Absent
Parry
Ross
Simon
Pace
Yes
Carroll M.
Yes
Final YES: 6 NO: 2 EXC: 1 ABS: 2 FINAL ACTION: PASS
Senator Carroll said she would like the bill to begin in the Senate and that she would be the prime sponsor of the bill in the Senate and Representative Miklosi would be the House sponsor. Co-sponsors of the bill are Representatives Pace and Ryden and Senators Tochtrop and Hodge.

05:29 PM

Representative Miklosi moved Bill 14 concerning a brochure to describe the process for workers' compensation claims. Mr. Simon suggested an amendment on page 5 of the bill to add at the end of the sentence "or any other rights conferred to the injured worker."
BILL:Approval of Bills
TIME: 05:32:04 PM
MOVED:Miklosi
MOTION:Move to amend Bill 14, page 5, at the end of line 23, add to the end of the sentence "or any other rights conferred to the injured worker." The motion passed without objection.
SECONDED:
VOTE
Gardner B.
Gerou
Harvey
Hodge
Miklosi
Mitchell
Ryden
Tochtrop
Johnson
Meersman
Morrison
Absent
Parry
Ross
Simon
Pace
Carroll M.
Not Final YES: 0 NO: 0 EXC: 0 ABS: 1 FINAL ACTION: Pass Without Objection
BILL:Approval of Bills
TIME: 05:35:27 PM
MOVED:Miklosi
MOTION:Move Bill 14 to the Legislative Council as an interim committee bill, as amended. The motion passed 6-2.
SECONDED:
VOTE
Gardner B.
No
Gerou
No
Harvey
Excused
Hodge
Yes
Miklosi
Yes
Mitchell
Absent
Ryden
Yes
Tochtrop
Yes
Johnson
Meersman
Morrison
Absent
Parry
Ross
Simon
Pace
Yes
Carroll M.
Yes
Final YES: 6 NO: 2 EXC: 1 ABS: 2 FINAL ACTION: PASS

Representative Miklosi said he would like the bill to begin in the House and that he would be the prime sponsor of the bill in the House and Senator Carroll would be the Senate sponsor. Co-sponsors of the bill are Representatives Pace and Ryden and Senators Tochtrop and Hodge.

5:39 PM

The committee adjourned.