Bill Summary for Bill Number HB09-1193

Date: 03/19/2009

Final
BILL SUMMARY for HB09-1193

SENATE COMMITTEE ON TRANSPORTATION

Votes: View-->	Action Taken:
Moved that House Bill 09-1193 be postponed indefin Moved that House Bill 09-1193 be referred to the C	PASS FAIL

10:05 AM

Senator Gibbs, Chairman, called the meeting to order.

10:05 AM -- House Bill 09-1193

Senator Tochtrop, prime sponsor, presented House Bill 09-1193, concerning a prohibition against the shifting of financial responsibility for negligence in motor carrier transportation agreements. She commented on the shifting of the responsibility for negligence under terminal access agreements. She said that all parties should take responsibility for their own liability and not be able to transfer that liability to other parties. She said that House Bill 09-1193 represents a compromise among many parties.

The following persons testified in regard to House Bill 09-1193:

10:08 AM -- Patty Stulp, representing ERAS, Inc., opposed House Bill 09-1193, and said that she has been involved with the ethanol and trucking industries for many years. She commented on the use of "terminal access agreements" in the industries. She commented on the importance of safety in the trucking industry. She said that House Bill 09-1193 will complicate the use of terminal access agreements in Colorado. She stated her belief that the bill will not lower rates charged by insurance companies.

10:14 AM -- Stan Dempsey, representing the Colorado Petroleum Association, opposed House Bill 09-1193, and said that it will affect the business of his members.

10:15 AM -- Jason Dunn, representing the Colorado Petroleum Association, said that House Bill 09-1193 will eliminate the freedom of companies to set conditions for access for their property. He said that the bill infringes on private property rights. He cited examples of indemnification in various industries. He said that all parties should be free to negotiate the terms of agreements into which they enter. He added that no carrier is forced to sign a contract.

10:25 AM -- Ed Morris, representing the Colorado Fuel Manufacturers Association, commented on his refining business. He opposed House Bill 09-1193. He said that he requires all carriers to sign terminal access agreements to protect equipment at his company's terminal. He noted that his terminal operates 24 hours per day and that if House Bill 09-1193 passes he my have to restrict access hours to the property. He commented on safety measures that are taken by his company, and said that the bill will add an additional burden to his business. He said that the loading of fuel is currently fully automated at his business. He suggested that, over time, the bill will hurt small carriers. He noted that there has never been an accident on his property that has resulted in insurance claims. He said that all carriers that access his facility willingly sign terminal access agreements.

10:41 AM -- Jerry Glynn, representing the Colorado Stone, Sand and Gravel Association, opposed House Bill 09-1193 and said that his industry is heavily regulated at the federal level. He said that there is no way for his company to know of the safety training that has been acquired by truck drivers entering his property.

10:43 AM -- Virginia Love, representing the Colorado Competitive Council, opposed House Bill 09-1193 and said that the bill will drive litigation costs. She added that House Bill 09-1193 will interfere with contracts in many industries.

10:44 AM -- Larry Hudson, representing the Colorado Association of Commerce and Industry (CACI), said that several CACI members have raised concerns regarding House Bill 09-1193. He opposed the restriction on indemnity provisions that would result from enactment of the bill.

10:47 AM -- Greg Fulton, representing the Colorado Motor Carriers Association, supported House Bill 09-1193 and said that the bill was initiated by many small trucking companies. He said that small carriers accessing property to load goods should not bear complete liability for accidents if the fault for an accident is actually shared between the two parties. He said that the transfer of liability is unfair and that small trucking companies have no choice but to sign the agreements or go out of business. He said that similar legislation has been adopted in 13 other states, and that many of these states have similar facilities to those found in Colorado. He noted that House Bill 09-1193 is supported by the National Federation of Independent Businesses.

11:07 AM -- Merle Manweiler, representing Manweiler Transports, said that his company transports petroleum in the western states. He said that he has been in the business for three decades and that indemnification has only become an issue in recent years. He said that the language in these agreements is non-negotiable and that there is no choice but to sign the contracts. He commented on the assignment of liability under terminal access agreements. He said that many small trucking companies are becoming uninsurable in Colorado. He noted that his company's current insurance policy expires in June, 2009, and that if it happens that his company is not insurable there will be many more small trucking firms in the state that will not be insurable. He said that "the situation is already broken" and that changes in the rating of small truckers are already in place.

11:24 AM -- Rob Ingram, representing the Colorado Motor Carriers Association, commented on the insurance of trucking companies in Colorado and supported House Bill 09-1193. He said that small trucking companies have no bargaining power at present.

11:32 AM -- Dick Brennan, representing Brennan Trucking, commented on his business of transporting oil. He said that the indemnification problem is also affecting access to federally leased property. He commented on the exposure that small trucking companies have under the existing liability arrangement. He said that his company should not be forced to pay for insurance coverage for large oil companies, and that his company takes responsibility for any damage for which it is responsible. He noted that his company currently pays $45,000 annually for liability insurance, and that this premium could potentially double next year.

11:41 AM -- Rob Ronzio, Denver, representing himself, said that he works in the insurance industry and that very few companies are interested in writing insurance for trucks hauling fuel.

11:51 AM -- Mike Nelligan, representing U.S. Transport, said that House Bill 09-1193 addresses a lack of fairness in the trucking industry, which is a "David and Goliath" situation. He said that he feels the business relationship is currently skewed in one party's favor.


BILL:	HB09-1193
TIME:	12:02:10 PM
MOVED:	Williams
MOTION:	Moved that House Bill 09-1193 be referred to the Committee of the Whole. The motion failed on a 0-6-1 roll call vote.
SECONDED:
		VOTE
	Kopp	No
	Renfroe	No
	Romer	No
	Spence	No
	Veiga	Excused
	Williams	No
	Gibbs	No

Not Final YES: 0 NO: 6 EXC: 1 ABS: 0 FINAL ACTION: FAIL


BILL:	HB09-1193
TIME:	12:04:56 PM
MOVED:	Kopp
MOTION:	Moved that House Bill 09-1193 be postponed indefinitely and that the roll call of the prior motion be reversed. The motion passed without objection and the roll call was reversed.
SECONDED:
		VOTE
	Kopp	Yes
	Renfroe	Yes
	Romer	Yes
	Spence	Yes
	Veiga	Excused
	Williams	Yes
	Gibbs	Yes

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