House Committee on Business Affairs and Labor (04/27/2010)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Date:	04/27/2010	ATTENDANCE

Time:	12:10 PM to 01:10 PM	Balmer	X
		Bradford	*
Place:	HCR 0112	Casso	X
		Kerr A.	*
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	*
		Gagliardi	X
		Rice	*
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB10-187 SB10-178 SB10-133		Referred to Appropriations Amended, Referred to the Committee of the Whole Amended, Referred to Finance

12:10 PM -- Senate Bill 10-187

Representative Gagliardi called the committee to order. Representative Riesberg, prime sponsor, presented Senate Bill 10-187 concerning workers' compensation. This bill changes the Workers' Compensation Act of Colorado as follows:

clarifies that Medicaid and other indigent health care programs are not considered wages for purposes of worker's compensation;
allows an injured worker to recover costs other than attorneys fees to pursue an order requiring an insurer to pay for a prescribed treatment plan;
clarifies that for determining an injured worker's average weekly wage the phrase "at the time of injury" refers to the date of the accident;
eliminates permanent partial disability from the types of disabilities that require a social security offset;
establishes standards for an injured worker to refuse an offer of modified employment and not be responsible for his or her termination of employment;
adds the loss of a tooth and removes the loss of an eye to the list of scheduled injuries;
requires the Director of the Division of Workers' Compensation to adjust the caps on combined disability payments by the same percentage as the adjustment to the state average weekly wage beginning July 1, 2011; and
prohibits the director or an administrative law judge from conditioning a lump sum payment on the injured workers' waiver of his or her right to pursue permanent total disability payments.

12:12 PM -- John Berry, representing the Workers' Compensation Coalition, testified against the bill and expressed his concerns with the provision in the bill that deals with accepting an offer of modified employment on page 7, line 7, of the bill. Representative Balmer asked why some businesses support the bill and the Workers' Compensation Coalition does not. Mr. Berry responded.

12:14 PM -- Doug Kotarek, representing the Colorado Self Insurers Association, testified in support of the bill. He explained that the association represents employers who self insure for workers' compensation purposes. Mr. Kotarek said the bill is a compromise between a number of bills. Representative Balmer asked whether the Colorado Civil Justice League (CCJL) supports the bill or not. Mr. Kotarek explained that he does not know and that they were not a part of the negotiations on the bill. Representative Balmer asked for clarification as to why Mr. Kotarek is for the bill and Mr. Berry is not. Mr. Kotarek responded. Representative Balmer commented on codifying case law and asked why it is necessary to have this in statute, when it is already case law. Mr. Kotarek explained that the bill was a give and take situation and the bill is the compromise that was reached by all parties involved. Representative Liston asked a question regarding Mr. Berry's's testimony.

12:22 PM -- Cathy Wanstrath, representing Pinnacol Assurance, testified in support of the bill. She said they were part of the discussions and the bill is the product of negotiation. Ms. Wanstrath talked about the fiscal note and explained that it is rather high because the state is self insured. Representative Balmer asked about other workers' compensation insurers and whether they were part of the discussions and whether she knows if CCJL is in support of the bill or not. Ms. Wanstrath said she does not know their stance, but does know that they are aware of the bill and other workers' compensation companies were not part of the discussions, but have been informed of the measure. Representative Liston talked about the increase in the state average weekly wage of 3.9 percent in the fiscal note and tied to the temporary disability and permanent partial disability benefits and whether it will increase by that number until it is changed. Ms. Wanstrath explained that the 3.9 was used by the fiscal analyst as a general point, but that number will actually vary. Representative Liston commented, stating 3.9 percent seemed high.

12:28 PM -- Neil O'Toole, on the board of the Workers' Compensation Education Association (WCEA) and also practices law for the WCEA, testified in support of the bill. He said the bill is truly a compromise.

12:30 PM

Representative Riesberg addressed Representative Balmer's questions about CCJL and said that the bill has already proceeded through the Senate and is now in the second house and he assumes that since they have not heard from CCJL, that they have no strong objection. Representative Balmer commented on the bill and his position.


BILL:	SB10-187
TIME:	12:33:02 PM
MOVED:	Middleton
MOTION:	Moved to refer Senate Bill 10-187 to the Committee on Appropriations. The motion passed 8-2.
SECONDED:	Kerr A.
		VOTE
	Balmer	No
	Bradford	Yes
	Casso	Yes
	Kerr A.	Yes
	Liston	Yes
	Middleton	Yes
	Priola	Yes
	Soper	Yes
	Stephens	No
	Gagliardi	Yes
	Rice	Excused
Final YES: 8 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS

12:34 PM -- Senate Bill 10-178

Representative Gerou, prime sponsor, presented Senate Bill 10-178 concerning fairness in workers' compensation health care provider review processes, and, in connection therewith, requiring performance programs to be transparent, include objective and standardized criteria that are applied consistently, and provide minimum due process to providers. This bill creates the Provider Review and Disclosure Act for workers' compensation insurers and health care providers. It specifies minimum standards for insurer performance programs that measure a provider's care. Insurers are required to file detailed descriptions of performance programs with the Director of the Division of Workers' Compensation in the Department of Labor and Employment at least 30 days before implementation. Insurers must give written notice to a provider at least 45 days before disclosing the result of a performance program. If a provider appeals a result, an insurer is required to disclose the data and the process used to arrive at the provider's individual result. The provider has an opportunity to submit or have considered corrected data or other relevant information. A violation is considered an unfair or deceptive act or practice and may be enforced in an administrative hearing, or in a civil action against an insurer.

12:36 PM

Representative Gerou talked about SB 08-138. Representative Gagliardi asked about amendment L.006 (Attachment A) and why the word "program" needs to be struck.

12:44 PM -- Tom Morris, drafter of the bill from the Office of Legislative Legal Services, explained it was a technical change and that the word "program" was accidentally repeated.

12:46 PM -- Kari Hershey, legal counsel to the Colorado Medical Society, testified in support of the bill. She explained that the bill was modeled after legislation years back as discussed by the sponsor concerning pay for performance. She talked about how performance is tied to awards.


BILL:	SB10-178
TIME:	12:50:23 PM
MOVED:	Soper
MOTION:	Moved amendment L.006 (Attachment A). The motion passed without objection.
SECONDED:	Balmer
		VOTE
	Balmer
	Bradford
	Casso
	Kerr A.
	Liston
	Middleton
	Priola
	Soper
	Stephens
	Gagliardi
	Rice	Excused
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB10-178
TIME:	12:51:47 PM
MOVED:	Liston
MOTION:	Moved to refer Senate Bill 10-178, as amended, to the Committee of the Whole. The motion passed 10-0.
SECONDED:	Middleton
		VOTE
	Balmer	Yes
	Bradford	Yes
	Casso	Yes
	Kerr A.	Yes
	Liston	Yes
	Middleton	Yes
	Priola	Yes
	Soper	Yes
	Stephens	Yes
	Gagliardi	Yes
	Rice	Excused
Final YES: 10 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

12:55 PM -- Senate Bill 10-133

Representative Rice, prime sponsor, presented Senate Bill 10-133 concerning the creation of an income tax credit to incentivize Colorado businesses to rehire laid-off workers. The bill was previously heard by the committee on April 21, 2010. The bill creates a state income tax credit available to Colorado businesses that rehire workers who were laid off during 2009. The tax credit is only available for tax year 2011 and only for businesses that rehire their laid-off workers sooner than they would have without the tax credit and keep the worker employed for at least a year after being rehired. The credit is equal to a percentage of the employer's costs for paying its portion of Federal Insurance Contributions Act (FICA) taxes during the initial 12-month period of employment for each worker rehired. An employer's share is 7.65 percent of each worker's salary. For workers rehired between the date the bill becomes law and May 31, 2010, the credit for each rehired worker is equal to 66 percent of the employer's FICA taxes. For workers rehired between June 1, 2010, and September 30, 2010, the credit is equal to 33 percent of the employer's FICA taxes.

Representative Rice talked about the previous committee hearing and testimony and explained that amendment L.008 (Attachment B) is a strike below that is a compromise between all the parties. He explained that the strike below does the following:

the employee must have been laid off before March 21;
the employee can be rehired by any employer;
caps the number of rehires that qualify at five per employer; and
the employer must hold the employee for 120 days.

01:07 PM

Representatives Balmer and Priola commented on the bill.


BILL:	SB10-133
TIME:	01:08:49 PM
MOVED:	Rice
MOTION:	Moved amendment L.008 (Attachment B). The motion passed without objection.
SECONDED:	Casso
		VOTE
	Balmer
	Bradford
	Casso
	Kerr A.
	Liston
	Middleton
	Priola
	Soper
	Stephens
	Gagliardi
	Rice
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB10-133
TIME:	01:09:32 PM
MOVED:	Rice
MOTION:	Moved to refer Senate Bill 10-133, as amended, to the Committee on Finance. The motion passed 10-1.
SECONDED:	Casso
		VOTE
	Balmer	Yes
	Bradford	Yes
	Casso	Yes
	Kerr A.	Yes
	Liston	Yes
	Middleton	Yes
	Priola	Yes
	Soper	Yes
	Stephens	Yes
	Gagliardi	No
	Rice	Yes
Final YES: 10 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:10 PM

The committee adjourned.