Senate Committee on Business, Labor and Technology (02/23/2009)

Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON BUSINESS, LABOR AND TECHNOLOGY

Date:	02/23/2009	ATTENDANCE

Time:	01:35 PM to 03:24 PM	Foster	X
		Harvey	X
Place:	SCR 354	Mitchell	X
		Scheffel	X
This Meeting was called to order by		Tochtrop	X
	Senator Veiga	Heath	X
		Veiga	X
This Report was prepared by
	Hillary Smith
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Conf 09-Statewide Internet Portal Authority Board Conf 09-Examining Board of Plumbers Conf 09-State Electrical Board HB09-1155 HB09-1030 HB09-1052		Favorably Refer to the Full Senate Favorably Refer to the Full Senate Favorably Refer to the Full Senate Referred to the Committee of the Whole Referred to the Committee of the Whole Amended, Referred to the Committee of the Whole

01:35 PM

Jack R. Arrowsmith, an appointee to the Statewide Internet Portal Authority Board, came to the table. The letter appointing Mr. Arrowsmith may be found in Attachment A. His application and resume is available at the State Archives. Mr. Arrowsmith introduced himself and described his background. He discussed the progress made by the board and responded to questions from the committee.

(Attachment A can be viewed at Archives)


BILL:	Conf 09-Statewide Internet Portal Authority Board
TIME:	01:40:48 PM
MOVED:	Harvey
MOTION:	Moved to refer the appointment of Jack R. Arrowsmith to the Statewide Internet Portal Authority Board to the full Senate with a favorable recommendation. 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

01:42 PM

Michael K. Trapp, an appointee to the Examining Board of Plumbers, came to the table. The letter appointing Mr. Trapp may be found in Attachment B. His application and resume is available at the State Archives. Mr. Trapp introduced himself and described his background and reasons for serving. He responded to questions from Senator Mitchell regarding the qualifications of local and state plumbing inspectors. Discussion continued concerning Senate Bill 09-064, which would permit cities and counties to perform inspections on public school buildings, provided that the inspectors have achieved either journeymen or master licenses in their trades.

(Attachment B can be viewed at Archives)

01:46 PM

Responding to a question from Senator Heath, Mr. Trapp discussed apprenticeship programs. Senator Heath made additional comments. Senator Mitchell and Mr. Trapp continued their discussion regarding Senate Bill 09-064.


BILL:	Conf 09-Examining Board of Plumbers
TIME:	01:50:09 PM
MOVED:	Heath
MOTION:	Moved to refer the appointment of Michael K. Trapp to the Examining Board of Plumbers to the full Senate with a favorable recommendation. 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

01:51 PM

Loren R. Priest, Scott W. Berg, Terry L. Schneider, Jose A. Amaya, Robin L. Kittel, and Rory J. Berumen, appointees to the State Electrical Board, came to the table. The letters appointing Mr. Priest, Mr. Berg, Mr. Schneider, Mr. Amaya, Ms. Kittel, and Mr. Berumen may be found in Attachment C. Their applications and resumes are available at the State Archives. The appointees introduced themselves and described their backgrounds. Mr. Priest responded to questions from Senator Mitchell regarding Senate Bill 09-064.

(Attachment C can be viewed at Archives)

01:55 PM

Mr. Schneider discussed his opinion on Senate Bill 09-064, but noted that the board itself had not taken a position on the bill. Mr. Berg expressed his opinion on the issue as well, and Mr. Berumen made additional comments. Senator Mitchell addressed the appointees' comments. Mr. Schneider responded to Senator Mitchell's statements concerning consistency between state and local inspectors, and Mr. Berumen added further detail.

02:01 PM

Responding to a question from Senator Heath, Mr. Beruman discussed his experience with apprenticeship programs and with Colorado Career Fairs. Senator Heath made additional comments.


BILL:	Conf 09-State Electrical Board
TIME:	02:03:43 PM
MOVED:	Heath
MOTION:	Moved to refer the appointments of Loren R. Priest, Scott W. Berg, Terry L. Schneider, Jose A. Amaya, Robin L. Kittel, and Rory J. Berumen to the State Electrical Board to the full Senate with a favorable recommendation. 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

02:04 PM

The committee recessed briefly.

02:05 PM -- House Bill 09-1155

The committee reconvened. Senator Carroll presented House Bill 09-1155. The bill requires that title insurance companies and agents file the justification for a new or amended title insurance rate or fee with the commissioner of insurance at the Department of Regulatory Agencies (DORA) rather than at the company's or agent's principal office within the state. Senator Carroll explained the bill, and DORA distributed a memorandum concerning the bill (Amendment D).

The following individuals testified:

02:07 PM -- Garry Wolff, representing consumers of Colorado, testified regarding the bill. He described his professional background in title insurance and stated that he had no conflict of interest in the outcome of the bill. He distributed a letter and a proposed amendment to the members of the committee (Attachments E and F). He discussed the needs of consumers to shop around and to compare title insurance providers.

02:20 PM

Senator Harvey asked if Mr. Wolff was making similar recommendations concerning mortgage insurance, appraisal companies, or the real estate industry. Mr. Wolff said that his focus was on situations where consumers were relying on a third party, and discussed his reasons for being concerned with title insurance. Discussion continued between Senator Harvey and Mr. Wolff.

02:23 PM

Responding to a question from Senator Veiga, Mr. Wolff described his company. Senator Heath asked if Mr. Wolff supported the bill, and Mr. Wolff responded that he did, but felt that there should be more protection for consumers. Senator Veiga spoke about her experience with estimates of closing costs, and asked for clarification from Mr. Wolff regarding his testimony. Discussion continued between Senator Veiga and Mr. Wolff concerning whether closing estimates were provided to consumers.

02:29 PM

Senator Harvey provided clarification on the subject of closing estimates provided to consumers. He expressed his concerns about the implication that title companies, realtors, and mortgage companies may have a conflict of interest. He stated that all transactions required net-benefit paperwork to disclose any conflicts of interest. He stated that he believes the proposed amendment is unnecessary.

02:31 PM -- Richard Jones, the President of the Land Title Association of Colorado, testified in favor of the bill as drafted. He described his association and the operations of title insurance companies in Colorado. He stated that the legislation increases transparency. He disagreed with aspects of Mr. Wolff's testimony, and added that it is in the realtors' best interests for transactions to go smoothly. He discussed a possible conflict of interest Mr. Wolff may have with the bill due to his business interests.

02:36 PM

Senator Tochtrop referred to language in the bill pertaining to transparency, and Mr. Jones made additional comments. Responding to a question from Senator Scheffel, Mr. Jones discussed past legislation. Senator Scheffel asked additional questions regarding the bill's language concerning "justification" compared to "actuarial justification." Senator Carroll addressed Senator Scheffel's question and discussed past legislation.

02:41 PM

Senator Carroll made closing remarks.


BILL:	HB09-1155
TIME:	02:42:36 PM
MOVED:	Heath
MOTION:	Moved to refer House Bill 09-1155 to the Committee of the Whole with a recommendation that it be placed on the consent calendar. 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

02:43 PM -- House Bill 09-1030

Senator Tochtrop presented House Bill 09-1030. The bill was recommended by the Police Officers' and Firefighters' Pension Reform Commission. It clarifies that old hire pension plans in Colorado must comply with the federal Internal Revenue Code. It eliminates specific statutory provisions intended to make the plans qualify under the code and grants the governing board of each affected entity the power to adopt any revisions necessary to comply. Senator Tochtrop explained the bill.

The following individual testified:

02:44 PM -- Kevin Lindahl, General Counsel for the Fire and Police Pension Association, testified in favor of the bill. He discussed the changes made by the bill.


BILL:	HB09-1030
TIME:	02:46:32 PM
MOVED:	Tochtrop
MOTION:	Moved to refer House Bill 09-1030 to the Committee of the Whole with a recommendation that it be placed on the consent calendar. 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

02:47 PM -- House Bill 09-1052

Senator Heath presented House Bill 09-1052. The bill requires a for-profit entity that places a container in a public place for the collection of donated items that will later be sold for profit to affix a disclosure label on the container that states that items left in the container will be sold for profit and are not tax-deductible. Senator Heath explained the bill and discussed prepared Amendment L.003 (Attachment G) and prepared Amendment L.002 (Attachment H).

The following individuals testified:

02:50 PM -- Lorrie Molli, representing Goodwill Industries of Colorado Springs, testified in favor of the bill. She discussed the use of donation bins. She stated that Goodwill was not opposed to competition, but wanted to make sure that donors were not misled. She discussed the benefits of the bill.

02:53 PM -- Rick Berninzoni, representing Goodwill Industries of Denver, testified in favor of the bill. He discussed the importance of Goodwill's programs. He stated that the bill would create a level playing field. He discussed the use of donation bins and stated that the bins may mislead donors. He added that containers do not offer tax-deductible receipts. He indicated that Goodwill supports the bill not in order to further its own donations, but to allow donors to be better informed.

02:58 PM

Mr. Berninzoni and Senator Foster discussed the necessary disclosure requirements for a nonprofit organization that contracts with another company. Senator Mitchell asked additional questions, and Mr. Berninzoni discussed tax-deductible receipts.

03:00 PM

Senator Scheffel stated that very few people would have to use the disclaimer, and it would be difficult to police the requirements of the bill. Mr. Berninzoni stated that the bill was seeking full disclosure in order to keep from misleading the public. Discussion continued between Senator Scheffel and Mr. Berninzoni concerning possible loopholes. Senator Foster described permit and zoning laws regarding donation bins, and asked how many bins the bill would affect. Discussion continued between Senator Foster and Mr. Berninzoni.

03:05 PM

Senator Heath made additional comments regarding the proliferation of for-profit bins in a bad economy. Senator Foster made additional comments concerning charitable organizations, and Senator Heath provided further clarification.

03:07 PM -- Andi Leopoldus, representing Goodwill Industries of Colorado, testified in favor of the bill. She described the proliferation of for-profit or unmarked donation bins. She discussed the lack of an enforcement mechanism for the bill and stated that the bill was a first step. Senator Scheffel expressed his concern that there would be no one to tell a person with an unmarked box to label it.

03:14 PM

Discussion continued regarding what information was available concerning whether consumers had been misled. Senator Veiga stated that full disclosure will not cause any harm.

03:16 PM

Senator Foster explained how her opinion had changed regarding the bill. She stated that the bill would support jobs at Goodwill and similar companies.

03:19 PM -- Ms. Molli returned to the table to address Senator Mitchell's question regarding information on unmarked bins. She discussed a call to action by the Better Business Bureau and a news report that had addressed the issue. She noted that some donors may be more willing to support an organization when they know where the money is going, whereas other donors may simply be donating for convenience. She remarked that the bill would help those donors that did not appreciate being duped by unmarked bins.

03:22 PM

Senator Heath made closing remarks.


BILL:	HB09-1052
TIME:	03:23:24 PM
MOVED:	Heath
MOTION:	Moved prepared Amendment L.002 (Attachment H). 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:	HB09-1052
TIME:	03:23:51 PM
MOVED:	Heath
MOTION:	Moved prepared Amendment L.003 (Attachment G). 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:	HB09-1052
TIME:	03:24:01 PM
MOVED:	Heath
MOTION:	Moved to refer House Bill 09-1052, as amended, to the Committee of the Whole. The motion passed on a 4-3 roll call vote.
SECONDED:
		VOTE
	Foster	Yes
	Harvey	No
	Mitchell	No
	Scheffel	No
	Tochtrop	Yes
	Heath	Yes
	Veiga	Yes

Final YES: 4 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:24 PM

The committee adjourned.