Senate Committee on Business, Labor and Technology (04/01/2009)

Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON BUSINESS, LABOR AND TECHNOLOGY

Date:	04/01/2009	ATTENDANCE

Time:	01:37 PM to 02:43 PM	Foster	X
		Harvey	E
Place:	SCR 356	Mitchell	*
		Scheffel	X
This Meeting was called to order by		Tochtrop	X
	Senator Veiga	Heath	*
		Veiga	X
This Report was prepared by
	Hillary Smith
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB09-1309 SB09-254 SB09-253		Referred to the Committee of the Whole Referred to the Committee of the Whole Amended, Referred to Appropriations

01:38 PM -- House Bill 09-1309

Senator Tochtrop presented House Bill 09-1309, concerning the inspection of boilers. The bill authorizes a boiler inspector to require a boiler or pressure vessel to undergo a pressure test to assess its leak tightness capability. The owner of the boiler or pressure vessel is responsible for the labor and costs required for conducting the pressure test. In addition, the allowable fluid temperature for a domestic water heater is increased from 200 to 210 degrees Fahrenheit. Senator Tochtrop explained the bill.

The following individuals testified regarding the bill:

01:39 PM -- Steve Nelson, Chief Boiler Inspector for the State of Colorado, representing the Department of Labor and Employment, testified in support of the bill. He said that the bill corrects a typographical error in current law. He summarized the other provisions of the bill.

01:42 PM -- Mike Webb, representing Xcel Energy, testified in support of the bill.


BILL:	HB09-1309
TIME:	01:42:57 PM
MOVED:	Tochtrop
MOTION:	Moved to refer House Bill 09-1309 to the Committee of the Whole with a recommendation that it be placed on the consent calendar. The motion passed on a 5-0 roll call vote, with two members excused.
SECONDED:
		VOTE
	Foster	Yes
	Harvey	Excused
	Mitchell	Excused
	Scheffel	Yes
	Tochtrop	Yes
	Heath	Yes
	Veiga	Yes

Final YES: 5 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

01:43 PM -- Senate Bill 09-254

Senator Bacon presented Senate Bill 09-254. The bill authorizes licensed brew pubs and licensed manufacturers of beer products (malt liquor and fermented malt beverages) to obtain approval from the Department of Revenue to use a common licensed premises to manufacture their product. As the state licensing authority, the executive director of the Department of Revenue would adopt rules for the implementation, standardization, and enforcement of alternating proprietor licensed premises.

The bill authorizes the wholesale sale of malt liquors and fermented malt beverages from an alternating proprietor licensed premises, but the retail sale of such alcohol beverages is prohibited from the premises. The state licensing authority may establish fees for applications for alternating use of premises authority. Licensees would report separately on the quantities of malt liquors and fermented malt beverages manufactured or inventoried in, or transferred from, an alternating proprietor licensed premises.

House Bill 08-1359, adopted in 2008, authorized certain licensed wineries to use common licensed premises for the production of wine in Colorado. The bill defined an alternating proprietor licensed premises as it relates to the manufacture and storage of wine. Senate Bill 09-254 expands the use of common licensed premises to include the production of beer products.

Senator Bacon explained the bill and stated that it will create jobs and give craft brewers the same opportunities wine producers were given with the adoption of House Bill 08-1359.

The following individuals testified regarding the bill:

01:45 PM -- J.B. Shireman, representing the Colorado Craft Brewers Guild and New Belgium Brewing, testified in support of the bill. He stated that the bill is a federal excise tax break for brewers and described how the bill will help brewers and brewpubs. Mr. Shireman responded to questions from Senator Heath regarding the bill's benefits for brewers. He responded to questions from Senator Scheffel concerning why brewers had not been included in the provisions of House Bill 08-1359.

01:51 PM -- Jeanne McEvoy, representing the Colorado Licensed Beverage Association, testified in support of the bill. She stated that the bill will benefit the consumer by containing brewing costs.


BILL:	SB09-254
TIME:	01:52:42 PM
MOVED:	Tochtrop
MOTION:	Moved to refer Senate Bill 09-254 to the Committee of the Whole with a recommendation that it be placed on the consent calendar. The motion passed on a 5-0 roll call vote, with two members excused.
SECONDED:
		VOTE
	Foster	Yes
	Harvey	Excused
	Mitchell	Excused
	Scheffel	Yes
	Tochtrop	Yes
	Heath	Yes
	Veiga	Yes

Final YES: 5 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

01:53 PM -- Senate Bill 09-253

Senator Veiga presented Senate Bill 09-253. The bill requires public entities to use best efforts to provide a relocation payment to the owner of a utility facility that must be relocated as part of a project funded with federal money. It also modifies the types of relocation costs that local telecommunications service may recover through a rate adjustment provided by the Public Utilities Commission (PUC), as well as by specifying the means for recovering costs. Senator Veiga explained the bill and distributed prepared Amendment L.001 and prepared Amendment L.003 (Attachments A and B, respectively) to the members of the committee. Senator Veiga summarized her reasons for sponsoring the bill and described the changes the amendments will make to the bill. She noted that Amendment L.001 strikes section one of the introduced bill; section one requires public entities to use best efforts to provide a relocation payment to the owner of a utility facility that must be relocated as part of a project funded with federal money.

The following individuals testified regarding the bill:

01:57 PM -- Cory Skluzak, representing the Office of Consumer Counsel (OCC), Department of Regulatory Agencies, testified in opposition to the bill. He stated that the OCC advocates on behalf of regulated utility consumers. Mr. Skluzak said that the bill will hurt regulated telephone service consumers, particularly Qwest consumers. He indicated that the bill will result in increased surcharges for consumers, incrementally decreasing the affordability of phone service for Coloradoans. Mr. Skluzak summarized the legislative history relevant to the bill and distributed an editorial by Peter Blake to the members of the committee (Attachment C). He described concerns the OCC has with the provisions of the bill and addressed the amendments that had been offered.

02:09 PM -- Neil Langland, representing the Public Utilities Commission (PUC), Department of Regulatory Agencies, testified in opposition to the bill. He addressed Mr. Skluzak's testimony and summarized the PUC's concerns with the bill. Mr. Langland stated that the bill will make regulatory processes more complicated. He discussed the possibility that the bill will put consumers at a disadvantage and described the phenomenon of "rate shock." Mr. Langland stated that the bill may result in undue cost recovery, and indicated that it is in the public's interest to maintain the current formula in existing statutes.

02:18 PM -- Marla Lien, representing the Regional Transportation District (RTD), testified in opposition to the bill as introduced. She noted that Senator Veiga had offered prepared Amendment L.001, striking section one of the introduced bill, and briefly described RTD's reasons for opposing section one.

02:22 PM -- Melissa Nelson, representing the Colorado Department of Transportation (CDOT), testified in opposition to the bill as introduced. She thanked Senator Veiga for proposing an amendment to strike section one of the introduced bill, and discussed federal funding for CDOT projects.

02:24 PM -- John McCormick, representing Qwest, testified in support of the bill as amended by Amendment L.001 and Amendment L.003. Mr. McCormick said that without the abilities provided by the bill, providers such as Qwest will be forced to reduce capital and expense budgets, resulting in service and job losses. He added that Qwest desires to maximize federal funding dollars without taking money meant for other projects. Mr. McCormick described competition in the telecommunications industry and stated that Qwest is heavily regulated and should be allowed to compete effectively.

02:31 PM

Senator Foster and Mr. McCormick discussed Qwest's use of the public right-of-way and the consequences of the federal Telecommunications Act.

02:37 PM

Senator Veiga addressed Senator Foster's comments. She stated that the bill only pertains to relocations that occur at the behest of the government. Discussion continued between Senator Foster and Senator Veiga.

02:41 PM

Senator Veiga provided closing remarks. She stated that Colorado will see less investment from companies like Qwest if such companies are not able to recover costs. She stated that the bill is in the best interests of Colorado.


BILL:	SB09-253
TIME:	02:42:07 PM
MOVED:	Veiga
MOTION:	Moved prepared Amendment L.001 (Attachment A). The motion passed without objection.
SECONDED:
		VOTE
	Foster
	Harvey	Excused
	Mitchell
	Scheffel
	Tochtrop
	Heath
	Veiga

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


BILL:	SB09-253
TIME:	02:42:13 PM
MOVED:	Veiga
MOTION:	Moved prepared Amendment L.003 (Attachment B). The motion passed without objection.
SECONDED:
		VOTE
	Foster
	Harvey	Excused
	Mitchell
	Scheffel
	Tochtrop
	Heath
	Veiga

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


BILL:	SB09-253
TIME:	02:42:18 PM
MOVED:	Veiga
MOTION:	Moved to refer Senate Bill 09-253, as amended, to the Committee on Appropriations. The motion passed on a 5-1 roll call vote, with one member excused.
SECONDED:
		VOTE
	Foster	No
	Harvey	Excused
	Mitchell	Yes
	Scheffel	Yes
	Tochtrop	Yes
	Heath	Yes
	Veiga	Yes

Final YES: 5 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS

02:43 PM

The committee adjourned.