House Committee on Business Affairs and Labor (02/03/2009)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Date:	02/03/2009	ATTENDANCE

Time:	10:45 AM to 12:15 PM	Balmer	*
		Bradford	X
Place:	HCR 0112	Gagliardi	X
		Liston	X
This Meeting was called to order by		Priola	X
	Representative Rice	Ryden	X
		Scanlan	*
This Report was prepared by		Soper	X
	Christie Lee	Stephens	X
		Casso	X
		Rice	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB09-1127 HB09-1136 HB09-1104		Amended, Referred to Finance Amended, Referred to Appropriations Witness Testimony and/or Committee Discussion Only

10:45 AM -- House Bill 09-1127

Representative Miklosi, prime sponsor, presented House Bill 09-1127 concerning the creation of a credit against state income tax for an investment that creates jobs in a small business located in Colorado and distributed a fact sheet about the bill (Attachment A). This bill provides an income tax credit for investments in small businesses based in Colorado. The first tax year for which the credit can be claimed is 2011. To qualify for the credit, an investor must invest in a business for at least three consecutive years. The investment in the third year must be at least $100,000 in cash or capital, such as equipment or buildings, that is provided in exchange for debt or equity in the business. The investment in the first two years must total at least $25,000. The business must have fewer than 20 employees at the time of initial investment.

The amount of the credit is equal to a percentage of the investment made in the third year. The percentage is based on the number of full time employees hired by the business over the three-year period of the investment. The maximum percentage is 75 percent.

As an example, if an investment in a qualifying business was $500,000 in the third year of a three-year investment and the business employed an additional 25 full time workers since the time of the initial investment, the amount of the credit would be $150,000 ($500,000 x 30%).

Any credit that exceeds the amount of the taxpayer's income tax liability can be refunded to the taxpayer or carried forward and applied to future tax years. The credit can also be transferred to another taxpayer to apply against their tax liability. Taxpayers can claim a credit for a maximum of three years for investments in the same business.

An investor must apply for and receive a tax credit certificate from the Governor's Office of Economic Development. The tax credit certificate must then be presented to the Department of Revenue with the investor's income tax return. The bill requires the Office of Economic Development and the Department of Revenue to share information and specifies penalties for the misrepresentation of qualifications for the credit.

10:50 AM

Representative Miklosi talked about amendment L.001 (Attachment B) and the updated fiscal note if the amendment were to pass that would reduce the fiscal impact (Attachment C). Representative Gagliardi asked about the Office of Economic Development and International Trade's additional workload if all the tax incentive bills pass. Representative Ryden asked Representative Miklosi to give an example of how the percentages would work under the bill.

10:56 AM -- Dave O'Brien, the CEO of Business Catapult, testified in support of the bill along with Kevin Johansen, representing the Angel Capital Summit. Mr. O'Brien talked about entrepreneurs and their impact on the economy. He also talked about the number of angel investors in Colorado and why they invest. Mr. Johansen added some additional points about new businesses and how they grow.

11:09 AM -- Jim Holt, a business owner, testified in support of the bill. He talked about his equipment rental business and the importance of tax incentives in this economy. Representative Liston asked whether his company would use this type of incentive for his business. Mr. Holt talked about the importance of help from others in his current business and another businesses that he has started and since sold. Representative Soper discussed the importance of good wages and jobs for employees. Mr. Holt talked about the benefits he provides his employees.

11:15 AM -- Sheryle Hutter, representing the Colorado Cross-Disability Coalition, the Colorado Developmental Disabilities Council, and herself, testified on the bill and talked about some concerns she had with the bill especially for small business owners. She responded to questions from the committee.

11:21 AM

Representative Miklosi stated that Colorado is not as aggressive as other surrounding states in these types of tax policies. Representative Miklosi responded to questions from the committee.


BILL:	HB09-1127
TIME:	11:22:17 AM
MOVED:	Balmer
MOTION:	Moved amendment L.001 (Attachment C). The motion passed without objection.
SECONDED:	Priola
		VOTE
	Balmer
	Bradford
	Gagliardi
	Liston
	Priola
	Ryden
	Scanlan
	Soper
	Stephens
	Casso
	Rice

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


BILL:	HB09-1127
TIME:	11:22:45 AM
MOVED:	Balmer
MOTION:	Moved to refer House Bill 09-1127, as amended, to the Committee on Finance. The motion passed 9-2.
SECONDED:	Priola
		VOTE
	Balmer	Yes
	Bradford	Yes
	Gagliardi	No
	Liston	Yes
	Priola	Yes
	Ryden	Yes
	Scanlan	Yes
	Soper	Yes
	Stephens	Yes
	Casso	Yes
	Rice	No

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

11:28 AM -- House Bill 09-1136

Representative Soper, prime sponsor, presented House Bill 09-1136 concerning a person's competency to perform electrical work. He distributed a packet of letters of support for the bill (Attachment D). House Bill 09-1136 sets renewal requirements for professional electrician licenses. The State Electrical Board in the Department of Regulatory Agencies (DORA) shall set standards and adopt rules for a program ensuring the continued competency of electricians. At a minimum, the rules must include the following:

a test of the knowledge and skills required to renew a license;
identification of a method to obtain the required knowledge and skills based on information obtained in the test; and
documents necessary to confirm the professional is in compliance.

The bill adds new license requirements for the profession of journeyman electrician. In addition to existing requirements, an applicant for this license type must have at least 288 hours of training in safety, the national electric code, or other areas identified by the board. The board is instructed to strive to reduce barriers to license by endorsement or through reciprocity agreements with other states. The bill applies to all new and renewed licenses beginning January 1, 2011.

In addition, this bill:

modifies the definitions of terms regarding electricity, electricians, and the national electrical code;
clarifies that electric power may be supplied by a renewable energy system;
adds electric power from renewable energy systems to the categories of power subject to inspection and approval; and
repeals the requirement that the board test persons for license renewal or registration, and replaces it with the continued competency program described above.

11:34 AM

Representative Liston asked about the exam and pointed out that the test is a short open book test. Representative Soper responded.

11:35 AM -- Don Mares, Director of the Colorado Department of Labor and Employment, testified on the bill. He talked about the stakeholder group that met after the bill was vetoed last year and said he was an impartial mediator during the process. Mr. Mares explained the process he and the stakeholders took to come up with this bill.

11:44 AM -- Steve Foote, a member of the stakeholder group, representing Greiner Electric, testified in support of the bill.

11:45 AM -- Ed Knox, representing the Colorado State Conference of Electrical Workers, testified in support of the bill.

11:45 AM -- Ralph Lufen, representing the Rocky Mountain Chapter of the National Electrical Contractors Association, testified in support of the bill.

11:47 AM -- Dave Risser, a member of the stakeholder group, representing Electrician Apprenticeships, testified in support of the bill.

11:48 AM

Representative Rice mentioned that Greg Ferland from the Colorado Department of Regulatory Agencies was available to answer questions.


BILL:	HB09-1136
TIME:	11:51:03 AM
MOVED:	Soper
MOTION:	Moved amendment L.001 (Attachment E). The motion passed without objection.
SECONDED:	Gagliardi
		VOTE
	Balmer
	Bradford
	Gagliardi
	Liston
	Priola
	Ryden
	Scanlan
	Soper
	Stephens
	Casso
	Rice

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


BILL:	HB09-1136
TIME:	11:51:52 AM
MOVED:	Soper
MOTION:	Moved amendment L.002 (Attachment F). The motion passed without objection.
SECONDED:	Gagliardi
		VOTE
	Balmer
	Bradford
	Gagliardi
	Liston
	Priola
	Ryden
	Scanlan
	Soper
	Stephens
	Casso
	Rice

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


BILL:	HB09-1136
TIME:	11:52:24 AM
MOVED:	Soper
MOTION:	Moved to refer House Bill 09-1136, as amended, to the Committee on Appropriations. The motion passed 6-5.
SECONDED:	Casso
		VOTE
	Balmer	No
	Bradford	No
	Gagliardi	Yes
	Liston	No
	Priola	No
	Ryden	Yes
	Scanlan	Yes
	Soper	Yes
	Stephens	No
	Casso	Yes
	Rice	Yes

Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:53 AM -- House Bill 09-1104

Representative Hullinghorst, prime sponsor, presented House Bill 09-1104 concerning the regulation of certified interior designers. This bill creates a certification program for interior designers. Persons desiring to practice the profession must be certified by the director of the Division of Registrations in the Department of Regulatory Agencies (DORA), and show documentation that they have:

a degree in interior design;
at least two years of professional experience; and
passed the qualification test used by the National Council for Interior Design Qualifications.

Only persons who meet the requirements and obtain a certification from the division are permitted to use the title "Certified Interior Designer." In addition, the bill:

defines the scope of practice for a certified interior designer;

provides the DORA with the ability to set fees and schedule renewals of certifications;
establishes the grounds for disciplinary proceedings;
authorizes the department to take disciplinary actions, including letters of admonition or cease and desist orders; and
authorizes the department to impose fines up to $5,000, and require that a certified interior designer obtain additional training.

A certified interior designer who is a shareholder, member, or partner of an interior design firm is liable for any employee misconduct unless the firm maintains professional liability insurance. The bill sets minimum qualifying standards for the insurance policy. The bill is repealed July 1, 2020.

12:01 PM

She talked about amendment L.001 that would change the regulation of interior designers in the bill from an interior designer certification to registered interior designers. There was a discussion about whether the fiscal note will change now that the regulation has changed.

12:05 PM -- Michael Luzier, a nationally certified kitchen designer, testified against the bill and talked about some concerns he has with the bill. Representative Soper asked what qualifies the witness as a kitchen designer. Mr. Luzier said you can only be certified after two years with certain education requirements. Mr. Luzier responded to additional questions from the committee.

12:11 PM -- Sandy Nienaber, representing the Colorado Interior Design Coalition, testified in support of the bill. She talked about the various types of interior designers and the work they do that impacts the health and safety of consumers. Ms. Nienaber talked about the exam, experience, and education that would be required under the bill.

12:15 PM

Vice Chair Casso advised the committee that the bill would be laid over until Thursday, February 5 at 7:00 a.m. in House Committee Room 0112 and adjourned the committee.