Senate Committee on Business, Labor and Technology (03/09/2009)

Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON BUSINESS, LABOR AND TECHNOLOGY

Date:	03/09/2009	ATTENDANCE

Time:	01:36 PM to 02:14 PM	Foster	X
		Harvey	*
Place:	SCR 354	Mitchell	X
		Scheffel	*
This Meeting was called to order by		Tochtrop	X
	Senator Heath	Heath	X
		Veiga	*
This Report was prepared by
	Hillary Smith
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB09-1171 HB09-1085 SB09-234		Referred to the Committee of the Whole Amended, Referred to Appropriations Amended, Referred to Appropriations

01:36 PM -- House Bill 09-1171

Senator Kester presented House Bill 09-1171. The bill concerns requirements related to the installation of manufactured homes. Under current law, applicants seeking to renew their registration as a manufactured home installer must provide proof of liability insurance and proof that they have completed eight hours of educated approved by the Division of Housing in the Department of Local Affairs. Prior to January 1, 2009, applicants had to provide proof of liability insurance and a letter of credit, certificate of deposit, or surety bond, but there was no requirement for continuing education. House Bill 09-1171 reinstates the requirement that applicants provide a letter of credit, certificate of deposit, or surety bond at the time of applying for renewal, in addition to providing proof of insurance and continuing education.

The bill also gives the Division of Housing the discretion to inspect the installation of a manufactured home if requested by the home's owner, installer, manufacturer, or retailer. Under current law, the division is required to conduct an inspection if requested. Senator Kester explained that the bill reinstated requirements that are important for the installation of manufactured homes.

The following individuals testified regarding the bill:

01:39 PM -- Bruce Eisenhauer, representing the Department of Local Affairs, testified in favor of the bill. He discussed previous legislation and stated that the bill reinstated provisions that had been struck, possibly inadvertently. He described other changes made by the bill.

01:41 PM -- Meghan Pfanstiel, representing the Rocky Mountain Home Association, testified in favor of the bill.


BILL:	HB09-1171
TIME:	01:41:49 PM
MOVED:	Tochtrop
MOTION:	Moved to refer House Bill 09-1171 to the Committee of the Whole with a recommendation that it be placed on the consent calendar. The motion passed on a 6-0 roll call vote, with one member excused.
SECONDED:
		VOTE
	Foster	Yes
	Harvey	Yes
	Mitchell	Yes
	Scheffel	Yes
	Tochtrop	Yes
	Heath	Yes
	Veiga	Excused

Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

01:42 PM -- House Bill 09-1085

Senator Heath presented House Bill 09-1085. The bill modifies and renames the Mortgage Broker Licensing Act. Mortgage brokers offer or negotiate the terms of a residential home loan. They are regulated by the Division of Real Estate within the Department of Regulatory Agencies (DORA). The bill defines the term "mortgage loan originator" and replaces the term "mortgage broker" in the text and title of the law. On or after July 31, 2010, mortgage loan originators must be registered with the Nationwide Mortgage Licensing System and Registry, a national tracking system established by the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the SAFE Act). Registry in the national system is a condition of receiving a license from the department. Nationally registered loan originators will obtain a unique identifying number that must appear on all marketing materials and loan documents. In addition, the bill:

requires annual renewal of licenses, a change from the current three-year renewal cycle;
increases education requirements for license renewal from nine hours every three years to eight hours annually;
requires license applicants to provide additional information to the department including personal credit reports and evidence of financial responsibility;
authorizes the department to obtain additional criminal background information;
allows the department to order that a mortgage loan originator pay for damages to consumers; and
includes a FY 2009-10 cash funds appropriation of $90,636 and 1.0 FTE from the Mortgage Loan Originator Licensing Cash Fund to the Department of Regulatory Agencies.

The bill is repealed on July 1, 2011, following a sunset review.

Senator Heath distributed prepared Amendment L.005 (Attachment A) and prepared Amendment L.006 (Attachment B). He explained the bill and the amendments and discussed the SAFE Act.

The following individuals testified regarding the bill:

01:46 PM -- Cary Whitaker, the Mortgage Broker Program Manager for the Division of Real Estate within DORA, testified in favor of the bill on behalf of DORA. He discussed the SAFE Act.

01:47 PM -- Terry Jones, representing the Colorado Mortgage Lenders Association (CMLA), testified in favor of the bill. He described the CMLA and discussed the amendments. Mr. Jones responded to questions from Senator Mitchell concerning the mortgage market.

01:54 PM -- Peter Minahan, representing the Colorado Financial Services Association, testified in favor of the bill. He discussed the SAFE Act.


BILL:	HB09-1085
TIME:	01:56:03 PM
MOVED:	Heath
MOTION:	Moved prepared Amendment L.005 (Attachment A). The motion passed without objection.
SECONDED:
		VOTE
	Foster
	Harvey
	Mitchell
	Scheffel
	Tochtrop
	Heath
	Veiga	Excused

Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1085
TIME:	01:56:21 PM
MOVED:	Heath
MOTION:	Moved prepared Amendment L.006 (Attachment B). The motion passed without objection.
SECONDED:
		VOTE
	Foster
	Harvey
	Mitchell
	Scheffel
	Tochtrop
	Heath
	Veiga	Excused

Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1085
TIME:	01:56:45 PM
MOVED:	Heath
MOTION:	Moved to refer House Bill 09-1085, as amended, to the Committee on Appropriations. The motion passed on a 7-0 roll call vote.
SECONDED:
		VOTE
	Foster	Yes
	Harvey	Yes
	Mitchell	Yes
	Scheffel	Yes
	Tochtrop	Yes
	Heath	Yes
	Veiga	Yes

Final YES: 7 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:00 PM -- Senate Bill 09-234

Senator Heath and Senator Mitchell presented Senate Bill 09-234. The bill, recommended by the Joint Select Committee on Job Creation and Economic Growth, directs the Economic Development Commission with assistance from the Governor's Office of Economic Development and International Trade to:

recommend criteria for the creation of a statewide enterprise zone;
evaluate whether to expand the boundaries of existing enterprise zones; and
determine whether state income tax credits under the program should be modified.

Senator Heath explained the bill.

02:03 PM

Responding to a question from Senator Foster concerning the bill's potential to reduce the efficacy of enterprise zones, Senator Mitchell stated that job creation should be encouraged wherever it occurs. He added that the bill would authorize a study to research aspects of her question. Discussion continued among the members of the committee. Senator Tochtrop noted that some areas are more open to enterprise zones than others.

02:09 PM -- Ron Kirk, Fiscal Analyst for the Colorado Legislative Council Staff, came to the table to explain the bill's fiscal note. He discussed the state expenditures section. Mr. Kirk responded to a question from Senator Foster.


BILL:	SB09-234
TIME:	02:11:41 PM
MOVED:	Heath
MOTION:	Moved a conceptual amendment: Page 3, line 21, strike "June 15, 2010," and substitute "December 31, 2009,". The motion passed without objection.
SECONDED:
		VOTE
	Foster
	Harvey
	Mitchell
	Scheffel
	Tochtrop
	Heath
	Veiga

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


BILL:	SB09-234
TIME:	02:14:02 PM
MOVED:	Mitchell
MOTION:	Moved to refer Senate Bill 09-234, as amended, to the Committee on Appropriations. The motion passed on a 6-0 roll call vote, with one member excused.
SECONDED:
		VOTE
	Foster	Yes
	Harvey	Excused
	Mitchell	Yes
	Scheffel	Yes
	Tochtrop	Yes
	Heath	Yes
	Veiga	Yes

Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

02:14 PM

The committee adjourned.