House Committee on Business Affairs and Labor (03/17/2010)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Date:	03/17/2010	ATTENDANCE

Time:	01:35 PM to 02:58 PM	Balmer	X
		Bradford	E
Place:	HCR 0112	Casso	E
		Kerr A.	E
This Meeting was called to order by		Liston	X
	Representative Rice	Middleton	X
		Priola	X
This Report was prepared by		Soper	X
	Christie Lee	Stephens	X
		Gagliardi	X
		Rice	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Discussion on Judicial Department IT Systems Update from the Division of Banking Briefing from the Office of Economic Development		- - -

01:36 PM -- Discussion on Judicial Department IT Systems

Representative Rice called the committee to order. He explained that the committee would be talking about the discussion it had with the Judicial Branch, current vendors, and customers regarding the in-house Public Access and E-file Systems on March 10, 2010. Representative Rice distributed a draft letter addressed to the Speaker of the House, House Majority Leader, House Minority Leader, and Members of the Joint Budget Committee outlining the committees thoughts and recommendations about the systems (Attachment A).

01:38 PM

Representative Middleton said she agreed with the letter and talked about the deadlines that were mentioned in the discussion on March 10 to the letter and when a feasibility study could be completed by the Governor's Office of Information Technology (OIT). She stated that a study could not be completed until July and suggested acknowledging in the letter that the current time frame for implementing the system could be delayed. Representative Liston agreed with Representative Middleton and said that he does not want to see the branch rush into implementing these systems and suggested there be a one-year review or delay. He said he does not want to see another failed system like the Colorado Benefits Management System. Representative Stephens commented that she believes there needs to be a more thorough discussion about the systems and talked about the time line. She also agreed to having OIT conduct a feasibility study. Representative Soper stated that he would like to see more transparency and talked about the role he feels the committee of reference that would hear the issue should have.

Representative Gagliardi also agreed with mentioning a time line, but did not agree with a year, she is worried about giving them too much time and echoed Representative Soper's comments about not guiding the committee of reference too much. Representative Middleton talked about her involvement in implementing the Banner system at the University of Denver which took about five years and said the fact that this system has only taken two years concerns her. Representative Liston stated that he feels six months is too short and does not think a year is too long and that it is fair when attempting to implement such a system. Representative Middleton said she would like to include that the committee of reference that reviews this system consider what would happen if the branch and the vendors do not come to an agreement and if the system fails whether it becomes a problem of the state. Representative Rice commented on the potential consequences and costs involved if the systems fail. He directed the committee to the last paragraph on page one of the letter which he feels addresses the committees' concerns and read the paragraph.

01:51 PM

Representative Rice asked the committee how it would like to proceed. Representative Middleton said she would not mind adding the points that were mentioned today in to a new letter and then addressing the issue again on a later date. She added that she was unclear of the department's intent in creating these systems and that she would like to add that the committee of reference look into that issue as well along with the delay of up to a year. Representative Rice stated that he would have a new letter drafted that reflects today's discussion and then talk to the members of the committee or bring the issue up again on a later date.

01:54 PM -- Division of Banking

Representative Rice called the committee to order after a brief recess.

01:57 PM -- Fred Joseph, Acting Banking Commissioner, and Barbara Kelley, Executive Director of the Department of Regulatory Agencies, came to the table to update the committee on the search for a new Banking Commissioner. Ms. Kelley talked about the selection process and the reasons why it has taken so much time to fill the vacancy. She said today the process is very nearly at its end and that she expects to select the new commissioner within the next couple of days. Ms. Kelley explained that this process has taken about 18 months and commended Mr. Joseph for taking over the responsibilities in the meantime. Representative Rice asked whether the list of potential candidates is made public. Ms. Kelley explained that it is not made public.

02:00 PM

Mr. Joseph talked about filling the banking examiner positions and explained that there were 13 applicants, four were qualified, and two were hired last week. Representative Rice stated that there are still four positions open and asked how these positions are advertised. Mr. Joseph said they are posted on the state website and said they have tried local dailies, but they have not been that fruitful and are not cheap. Representative Rice mentioned that he has talked to a bank president about the issue and got the impression that there are people who are retired that may be interested in coming back and taking such a position. Mr. Joseph stated that they do tell the banking associations about the vacancies and talked about competing against the federal government with salaries among other things. Representative Rice suggested the department use Craigslist. Representative Priola agreed. A discussion ensued on various avenues the department can use for posting the positions.

02:05 PM

Representative Liston asked whether they feel the banking industry is getting back together since the issues in 2008. Mr. Joseph responded. Representative Rice asked whether the division has a pamphlet that explains the banking laws and what is involved in bank examinations. Mr. Joseph said he could provide that information to the committee. Ms. Kelley talked about capital versus liquidity and its importance as well. Representative Rice talked about the access to capital issue and asked what types of businesses are falling through the gaps and do not have access. Representative Soper asked whether the department looks at how the financial institutions teach financial literacy and how it can be improved when they do exams and loan money. Mr. Joseph said they are aware of the efforts of most banks, but everyone does not use the same type of information to teach its consumers.

02:14 PM -- Briefing from the Office Economic Development

Alice Kotrlik, Deputy Director, Office Economic Development and International Trade (OEDIT), said the office has seen a lot of activity recently to help businesses with capital access. Matt Cheroutes, Director of Communications, OEDIT, explained that he acts as the legislative liaison and talked about some legislation that has come through from the office this session. Representative Middleton asked for some information for town hall meetings on the type of work the office is doing. Mr. Cheroutes talked about the various divisions in the office and said he would be happy to provide the information.

02:20 PM

Ms. Kotrlik talked about the Business and Finance Division and the Colorado Job Creation Performance Incentive Fund and distributed a handout (Attachment B). She mentioned that there is one more year of funding available for the program. Representative Rice asked how long the jobs are tracked. Ms. Kotrlik stated that they only track for the one year required by the statute. Representative Rice asked the OEDIT to follow-up with a sample of the jobs listed in the handout past the year requirement. Ms. Kotrlik also talked about the Enterprise Zone Program.

02:25 PM

Jeff Holwell, Director, Business Development Division, talked about businesses that contact him that want to locate their business in the state and the ones that contact him that are considering leaving and taking an offer with another state. He said since the beginning of the year, there has been 25 new active projects that they are courting, including renewable energy, aerospace, and biosicence, among others. Representative Rice asked how many of those were incentivised. He talked about one of the projects that was here on an incentive and the reasons why businesses choose Colorado. Representative Stephens asked what states Colorado loses businesses to. Mr. Holwell explained that the competition is in Texas and Arizona. Representative Bradford asked if they track factors that make us competitive with those states and whether it is available to the public. Mr. Holwell said it is available and it varies depending on the type of company, for example, an office location versus finding a location to open a manufacturing facility. He gave the example of a data center and talked about the importance of electric costs when they make a decision to locate somewhere. Representative Priola talked about the issue of power and said he had heard from a data center that moved to Wyoming that Colorado is 6 cents per kilowatt hour and Wyoming is 4 cents per kilowatt hour. Mr. Holwell responded and explained that electric costs vary around the state and gave some examples.

02:37 PM

Kelly Manning, State Director, Small Business Development Centers, talked about her division and distributed the Colorado Small Business Development Center (SBDC) Network Annual Report following report: http://growingspaces.com/community/wp-content/uploads/2010/02/SBDC-AR09-2-10-10.pdf

02:43 PM

Pam Reichert, Director, International Trade Office, talked about her division. She addressed the question of competitors and stated there are a lot of investors that are from other countries. Representative Middleton talked about the OEDIT's piece in the Denver Post. Representative Rice talked about Colorado being one of the top five states to return from the recession.

02:47 PM -- Kevin Shand, Director, Film, Television, and Media, talked about his division and distributed some articles (Attachment C). He talked about some recent projects that are in the works around the state. Representative Rice asked whether the Colorado Symphony has ever come down to the State Capitol and asked about having a potential video game display on the House Floor. Representative Liston asked about incentives that are offered. Mr. Shand responded and talked about other states' incentive programs as well.

03:09 PM

The committee adjourned.