House Committee on Business Affairs and Labor (02/16/2010)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Date:	02/16/2010	ATTENDANCE

Time:	01:04 PM to 01:49 PM	Balmer	X
		Bradford	X
Place:	HCR 0112	Casso	X
		Kerr A.	X
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:
SB10-049 HB10-1220 HB10-1225 HB10-1245		Referred to the Committee of the Whole Amended, Referred to Finance Amended, Referred to the Committee of the Whole Amended, Referred to the Committee of the Whole

01:04 PM -- Senate Bill 10-049

Representative Benefield, prime sponsor, presented Senate Bill 10-049. The bill increases the benefit liability limits the Colorado Life and Health Insurance Protection Association (LHIPA) can pay to an eligible person whose insurer, an association member, becomes insolvent and unable to pay benefits. The limits for annuities and structured settlement annuities are increased from $100,000 to $250,000; long-term care benefits are increased from $100,000 to $300,000. The LHIPA's aggregate liability limits per person are unchanged.

01:06 PM -- Chris Chandler, President, Life and Health Insurance Protection Association, testified in support of the bill. He described the association, which is comprised of life and health insurers in the state. The association can assess members following a member insolvency, and protects consumers by paying benefits in cases in which an insurer becomes insolvent. He explained that the bill addresses only annuities and long-term care policies, stating that the increased benefit limits are based on model legislation from the National Association of Insurance Commissioners.

01:10 PM

Representative Liston asked who would be paying under the bill, the policy holders through an assessment or the companies themselves. Mr. Chandler responded, stating the companies pay and pass it off to consumers.

01:12 PM -- Jim Hall, American Council of Life Insurers, testified in support of the bill. He stated that the bill is part of a national effort and 20 other states have adopted similar legislation.

01:14 PM -- Raymond Akers, representing the Division of Insurance, testified in support of the bill.


BILL:	SB10-049
TIME:	01:14:53 PM
MOVED:	Gagliardi
MOTION:	Moved to refer Senate Bill 10-049 to the Committee of the Whole. The motion passed 11-0.
SECONDED:	Balmer
		VOTE
	Balmer	Yes
	Bradford	Yes
	Casso	Yes
	Kerr A.	Yes
	Liston	Yes
	Middleton	Yes
	Priola	Yes
	Soper	Yes
	Stephens	Yes
	Gagliardi	Yes
	Rice	Yes
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:15 PM -- House Bill 10-1220

Representative Priola, prime sponsor, presented House Bill 10-1220 concerning the sunset review of the functions of the Division of Insurance related to the regulation of specified lines of insurance, and, in connection therewith, continuing the functions of the division related to the regulation of property and casualty, automobile, and other insurers that do not offer health, life, property, casualty, or automobile insurance through July 1, 2017; consolidating the sunset review of all functions of the Division of Insurance other than those related to the licensing of bail bonding agents; and implementing other recommendations contained in the sunset report. This bill implements the recommendations of the sunset review by the Department of Regulatory Agencies to continue the Division of Insurance's regulation of property and casualty insurance. The bill does the following:

consolidates the sunset review schedule of the entire division, except for the licensing of bonding agents, to July 1, 2017;
adds certain acts, practices, and omissions as either unfair or deceptive acts or practices, or as unfair discrimination in the business of insurance;
allows the commissioner to make insurer self-audits and division analyses of insurers public;
requires the commissioner to examine licensed preneed funeral contract sellers at least once every 5 years;
repeals references to the medical malpractice and commercial liability insurance joint underwriting associations that no longer exist; and
repeals obsolete provisions of law related to Pinnacol Assurance.

Amendments L.001 and L.002 were distributed to the committee (Attachments A and B, respectively).

01:18 PM -- Saul Larsen, representing the Department of Regulatory Agencies (DORA), was available for questions regarding the Sunset Report.

01:19 PM -- Chris Lines, representing DORA, commented on the fiscal note.

01:21 PM

Representative Balmer distributed and explained Amendment L.003 (Attachment C).

01:22 PM -- Greg Romberg, representing the Colorado Press Association, testified on the legal notice publication provision in the bill and commented on Amendment L.003. He said the amendment would remove section six of the bill and restore current law regarding the publication issue. Representative Liston asked some questions regarding the public notice and who is responsible for paying for the publication.

01:25 PM -- Kelly Campbell, representing the Property and Casualty Insurers Association, testified in support of the bill. She talked about the association and asked the committee to consider adopting Amendment L.001.


BILL:	HB10-1220
TIME:	01:28:10 PM
MOVED:	Rice
MOTION:	Moved amendment L.001 (Attachment A). The motion passed without objection.
SECONDED:	Stephens
		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:	HB10-1220
TIME:	01:28:55 PM
MOVED:	Priola
MOTION:	Moved amendment L.002 (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:	HB10-1220
TIME:	01:29:31 PM
MOVED:	Balmer
MOTION:	Moved amendment L.003 (Attachment C). The motion passed without objection.
SECONDED:	Rice
		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:	HB10-1220
TIME:	01:30:27 PM
MOVED:	Priola
MOTION:	Moved to refer House Bill 10-1220, as amended, to the Committee on Finance. The motion passed 11-0.
SECONDED:	Stephens
		VOTE
	Balmer	Yes
	Bradford	Yes
	Casso	Yes
	Kerr A.	Yes
	Liston	Yes
	Middleton	Yes
	Priola	Yes
	Soper	Yes
	Stephens	Yes
	Gagliardi	Yes
	Rice	Yes
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:32 PM -- House Bill 10-1225

Representative Soper, prime sponsor, presented House Bill 10-1225 concerning continuation of the regulation of electrical work by the State Electrical Board. This bill implements the recommendations of the Department of Regulatory Agencies (DORA) in its sunset review of the State Electrical Board. The bill continues the functions of the board until July 1, 2019. In addition to other provisions, this bill:

allows the board to take action against local governments that do not comply with the state electrical code;
permits the board to consider disciplinary actions less severe than suspension or revocation of a master electrician license;
clarifies that a permit and inspection are only required for homeowner repairs beyond the repair or replacement of existing components;
replaces 1 of the board seats allotted to an electric utility with a second public representative;
permits the board to meet annually instead of monthly;
clarifies title protection for master electricians, journeyman electricians, and residential wiremen; and
allows the DORA to administratively set inspection fees for electrical work and repeals the provision limiting local inspection and permit fees to no more than 115 percent of state fees.

Representative Soper distributed Amendments L.001 and L.002 (Attachments D and E, respectively).

01:34 PM -- Angie Kinnaird Linn, representing the Department of Regulatory Agencies, testified in support of the bill. She discussed Amendment L.002 and explained that the department typically uses sunset bills to clean up statutes which is what the amendment does. Representative Rice asked if the amendment was simply technical. Ms. Kinnaird Linn said the amendment only makes technical changes.


BILL:	HB10-1225
TIME:	01:37:06 PM
MOVED:	Soper
MOTION:	Moved amendment L.001 (Attachment D). The motion passed without objection.
SECONDED:	Gagliardi
		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:	HB10-1225
TIME:	01:38:06 PM
MOVED:	Soper
MOTION:	Moved amendment L.002 (Attachment E). The motion passed without objection.
SECONDED:	Middleton
		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:	HB10-1225
TIME:	01:40:21 PM
MOVED:	Soper
MOTION:	Moved to refer House Bill 10-1225, as amended, to the Committee of the Whole. The motion passed 9-2.
SECONDED:	Casso
		VOTE
	Balmer	No
	Bradford	Yes
	Casso	Yes
	Kerr A.	Yes
	Liston	Yes
	Middleton	Yes
	Priola	No
	Soper	Yes
	Stephens	Yes
	Gagliardi	Yes
	Rice	Yes
Final YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:42 PM -- House Bill 10-1245

Representative Liston, prime sponsor, presented House Bill 10-1245 concerning the continuation of the regulation of boxing by the Boxing Commission. This bill implements the recommendations of the Department of Regulatory Agencies (DORA) in its sunset review of the Colorado Boxing Commission and the Office of Boxing. The bill continues the functions of the commission and the office until July 1, 2017. In addition to other provisions, this bill:

places responsibility for the commission with the Division of Registrations in the DORA and removes the requirement that the commission communicate monthly with the DORA director;
expands the definition of boxing to include mixed martial arts;
repeals the requirement that the DORA adopt standards for amateur "tough person" fighting;
requires annual meetings of the commission instead of quarterly;
transfers the commission's authority to collect fees and fines to the Division of Registrations;
credits any fine revenue to the General Fund instead of the Division of Registrations Cash Fund; and
transfers enforcement authority from the commission to the director of the Office of Boxing.

01:44 PM -- Angie Kinnaird Linn, representing the Department of Regulatory Agencies, testified in support of the bill and commented on Amendment L.001 (Attachment F). Representative Gagliardi brought up a question she had about the bill concerning the size of the mixed martial arts gloves and the ring. Ms. Kinnaird Linn explained that the department would promulgate rules on those issues and explained that those hearings are public.


BILL:	HB10-1245
TIME:	01:48:07 PM
MOVED:	Liston
MOTION:	Moved amendment L.001 (Attachment F). The motion passed without objection.
SECONDED:	Stephens
		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:	HB10-1245
TIME:	01:48:41 PM
MOVED:	Liston
MOTION:	Moved to refer House Bill 10-1245, as amended, to the Committee of the Whole. The motion passed 11-0.
SECONDED:	Casso
		VOTE
	Balmer	Yes
	Bradford	Yes
	Casso	Yes
	Kerr A.	Yes
	Liston	Yes
	Middleton	Yes
	Priola	Yes
	Soper	Yes
	Stephens	Yes
	Gagliardi	Yes
	Rice	Yes
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:49 PM

The committee adjourned.