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

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Date:	02/02/2010	ATTENDANCE

Time:	09:40 AM to	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:
SB10-035 HB10-1203 HB10-1170 HB10-1150		Referred to the Committee of the Whole Referred to the Committee of the Whole Amended, Referred to the Committee of the Whole Amended, Referred to Finance

09:40 AM -- Senate Bill 10-035

Representative Bradford, prime sponsor, presented Senate Bill 10-035 concerning automatic enrollment in employee retirement plans. This bill allows employers whose retirement plans are not subject to the Employee Retirement Income Security Act of 1974 (ERISA), to initiate automatic enrollment plans for their employees. These employers include 501(c)(3) organizations, public schools, and churches. Employees can choose not to participate in a plan, but must take action to opt out. Employers are not liable for investment decisions made on behalf of their employees if the following conditions are met:

Employees have at least quarterly opportunities to select investments;
Employees are given notice of investment alternatives available, how to change investments, and decisions that will be made in absence of employee direction; and
Employees are given at least annual notice of the actual default investments made with employee contributions.

09:43 AM -- Sister Melissa Carnardo, representing Saint Mary's Regional Medical Center, testified in support of the bill. She gave some background on Saint Mary's and explained the 403 (b) plan that is available to their employees. Sister Carnardo talked about the use of automatic enrollment in private companies and other hospitals. She discussed the current efforts used to encourage employees to enroll in the retirement program. Representative Soper commented on the bill and said he was concerned about having employees opt out of the plan instead of opting in. Representative Gagliardi shared Representative Soper's concerns and asked if they are moving toward mandatory enrollment. Sister Carnardo explained that the plan is voluntary and that they are not moving towards mandatory enrollment. Representative Liston asked whether the organization offers plans other than the 403 (b) and commented on the benefits of automatic enrollment. Representative Stephens talked about her experience with a non-profit and not being enrolled in a retirement plan automatically. Sister Carnardo explained that similar organizations saw an enrollment increase from 33 percent to 88 percent following automatic enrollment. Representative Middleton asked the sponsor if this is a common practice in other areas.

09:56 AM -- Denise Kay, representing the Colorado Society for Human Resource Management State Council, testified in support of the bill. She described her organization and its support of the bill. She said studies show that employees are more likely to participate in retirement plans that are opt out as opposed to plans that are opt in. She addressed earlier concerns about mandatory enrollment and said they are not able to do so under current law. Ms. Kay said the bill is an avenue for increased participation in retirement plans and she talked about fiduciary liability of human resources professionals. She discussed a provision in the bill that states if an employee opts out of the plan, the employer must give the employee's money they invested plus interest back, and remove the employee from the plan. Representative Liston asked whether the organization offers plans other than the 403 (b). Ms. Kay said she cannot speak for Saint Mary's, but in general, the private sector offers a 401 (k) plan, and the public sector a 403 (b).

10:03 AM -- Rich Jones, representing the Bell Policy Center, testified in support of the bill. Mr. Jones provided a handout outlining the Bell's position on the bill (Attachment A). Mr. Jones spoke to studies that show that retirement plan participation rates increase when there is automatic enrollment. He said new employees are more likely to enroll in the plan and are more likely to stay in. Mr. Jones responded to committee questions.

10:06 AM

Representative Bradford added that in addition to the earlier organizations, the Colorado Hospital Association, the Organization of Patient Educators, and the Sister's Charity also support the bill. Representative Soper commented that he will not support the bill and said the religious organizations should be covered by ERISA. Representative Liston reminded Representative Soper that 403 (b) plans are not covered under ERISA and commented on the bill.


BILL:	SB10-035
TIME:	10:07:06 AM
MOVED:	Bradford
MOTION:	Moved to refer Senate Bill 10-035 to the Committee of the Whole. The motion passed 10-1.
SECONDED:	Liston
		VOTE
	Balmer	Yes
	Bradford	Yes
	Casso	Yes
	Kerr A.	Yes
	Liston	Yes
	Middleton	Yes
	Priola	Yes
	Soper	No
	Stephens	Yes
	Gagliardi	Yes
	Rice	Yes

Final YES: 10 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

10:11 AM -- House Bill 10-1203

Representative A. Kerr, prime sponsor, presented House Bill 10-1203 concerning the issuing of group life insurance, and, in connection therewith, deleting the requirement regarding the minimum number of persons that must be covered by the policy. This bill eliminates the minimum number of three persons required to be covered under a group life insurance policy. The bill is effective upon signature of the Governor, or upon becoming law without his signature. It applies to coverages and contracts of group life insurance issued on or after the effective date.

10:12 AM -- Jim Hall, representing the American Council of Life Insurers, testified in support of the bill. He explained that the bill would repeal the three person coverage requirement which would open up group life insurance to small employer groups rather than just large employers. He explained the history of the law and why it is now outdated. Representative Gagliardi asked some questions relating to the effects the bill would have on health insurance. Representative Gagliardi expressed concerns about the bill. Representative A. Kerr explained the provision in section two of the bill that discusses group sickness and accident insurance.


BILL:	HB10-1203
TIME:	10:20:13 AM
MOVED:	Kerr A.
MOTION:	Moved to refer House Bill 10-1203 to the Committee of the Whole. The motion passed 11-0.
SECONDED:	Bradford
		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

10:20 AM -- House Bill 10-1170

Representative DelGrosso, prime sponsor, presented House Bill 10-1170 concerning the provision of alcohol beverages in sealed containers in luxury boxes located in entertainment venues with a seating capacity of at least 1,500 seats. Under current law, liquor licensees who are licensed for on-premises consumption of alcohol are allowed to sell and serve alcohol beverages "by the drink" only. They are not authorized to sell alcohol beverages in large quantities in sealed containers. HB10-1170 permits the sale of alcohol beverages in sealed containers in luxury boxes located in stadiums, arenas, and similar sports and entertainment venues with a seating capacity of at least 1,500 seats. Occupants of luxury boxes would not be permitted to leave the luxury box with an alcohol beverage in a sealed container.

10:22 AM

Representative Soper asked a question about the language relating to 3.2 licenses.

10:23 AM -- David Reitz, representing Larimer County, testified in support of the bill. He explained that the bill is clearing up a statute related to a long-time practice. Mr. Reitz discussed an amendment that would be offered that was requested by the Municipal League.

10:27 AM -- Bob Herrfeldt, representing The Ranch in Larimer County, testified in support of the bill.


BILL:	HB10-1170
TIME:	10:30:02 AM
MOVED:	Balmer
MOTION:	Moved amendment L.001 (Attachment B). The motion passed without objection.
SECONDED:	Priola
		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

10:31 AM

Representative DelGrosso made some closing comments on the bill.


BILL:	HB10-1170
TIME:	10:31:49 AM
MOVED:	Balmer
MOTION:	Moved to refer House Bill 10-1170, as amended, to the Committee of the Whole. The motion passed 11-0.
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	Yes

Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

10:33 AM -- House Bill 10-1150

The committee took a brief recess.

10:38 AM

The committee was called back to order. Representative J. Kerr, prime sponsor, presented House Bill 10-1150 concerning a license for caterers to sell alcohol beverages at catered events. The bill creates a new type of alcohol license that authorizes caterers to sell and serve alcohol where food is catered, subject to specified limitations. House Bill 10-1150 imposes an annual state licensing fee of $325 and an annual local licensing fee of $500. Representative Stephens asked a question about an amendment. Representative J. Kerr distributed the following amendments:

Amendment L.005 (Attachment C);

Amendment L.006 (Attachment D); and

Amendment L.007 (Attachment E).

10:43 AM -- Kevin Bommer, representing the Colorado Municipal League (CML), testified against the bill without any amendments. He talked about the uniqueness of the license proposed in the bill since most liquor licenses are for a specific premise. Mr. Bommer stated that the CML is in favor of the bill with the amendments and discussed the amendments. Representative Middleton asked some questions regarding the notification requirement. Mr. Bommer continued discussing the amendments. Representative Liston asked whether the caterers will know where to send the notification that is required. Mr. Bommer responded.

10:55 AM -- Darby Donohue, representing the Colorado Caterer's Association, testified in support of the bill. He talked about the purpose of the association. Mr. Donohue explained how the bill came about and what caterers would be allowed to do under the bill that they currently cannot. He said they already deal with alcohol, but there is no offset for it. Representative Soper asked a clarifying question.

11:03 AM -- David Rubin, a caterer, representing the Colorado Caterer's Association, testified in support of the bill. He explained that they already handle this type of responsibility without the offset for the costs involved. Representative Balmer asked how the bill would effect the liquor licenses and liability of the other venues involved, including hotels. Mr. Rubin explained the insurance the caterers carry and said the caterers are already liable.

11:08 AM -- Ingrid Nagy, a caterer, representing the Colorado Caterer's Association, testified in support of the bill. She responded to Representative Balmer's earlier concerns and questions. Ms. Nagy said they already share the liability and the bill would allow them to obtain revenue to offset their costs. Representative Gagliardi asked about the provision to buy and sell liquor. Ms. Nagy said the caterer supplies everything involved with the liquor, including picking up the liquor, delivering the liquor, and supplying the bartenders. Representative Liston asked about the number of layoffs in the catering industry. Ms. Nagy talked about caterers that have recently closed and the fluctuation in income in the industry based on the time of year. Representative Liston followed up with a question regarding the types of liquor caterers can sell. Representative Stephens asked what happens to left over alcohol. Ms. Nagy stated that the client keeps the unused alcohol or it can be returned to the liquor store for the credit. Representative A. Kerr asked what happens to a bottle that is partially used when the client has a per drink cash bar. Ms. Nagy responded that with a cash bar, the client is only paying per drink, so the client has not paid for the unused alcohol and therefore the caterer can keep that unused portion.

11:18 AM -- Pete Meersman, representing the Colorado Restaurant Association, testified in support of the bill. He said originally they were against the bill because of the language on page three, lines 19-22 of the bill. Mr. Meersman stated that the concern will be addressed in an amendment. He said the bill allows a catering license, but does not require one. Representative Balmer asked a question of the witness. Representative A. Kerr asked whether Mr. Meersman believes that a caterer who does not obtain this license would still be able to compete with other caterers who do obtain the license. Representative Gagliardi asked about the required age of the caterers serving alcohol.

11:25 AM -- Don Pace, Field Operations Supervisor, Colorado Liquor Enforcement Division, responded to questions from the committee regarding the age of caterers and the age to obtain a license. Representative Balmer asked about the TIPS (Training for Intervention ProcedureS) training requirements. Mr. Pace said there is not a requirement for TIPS training. Representative Balmer asked about age requirements.


BILL:	HB10-1150
TIME:	11:34:17 AM
MOVED:	Stephens
MOTION:	Moved amendment L.005 (Attachment C). The motion passed 10-1.
SECONDED:	Bradford
		VOTE
	Balmer	No
	Bradford	Yes
	Casso	Yes
	Kerr A.	Yes
	Liston	Yes
	Middleton	Yes
	Priola	Yes
	Soper	Yes
	Stephens	Yes
	Gagliardi	Yes
	Rice	Yes

Not Final YES: 10 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	HB10-1150
TIME:	11:36:10 AM
MOVED:	Bradford
MOTION:	Moved amendment L.006 (Attachment D). The motion passed without objection.
SECONDED:	Liston
		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:	HB10-1150
TIME:	11:37:28 AM
MOVED:	Bradford
MOTION:	Moved amendment L.007 (Attachment E). The motion passed without objection.
SECONDED:	Liston
		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

11:38 AM

Representative Gagliardi asked the Caterer's Association to explain the age requirements of the caterers. Mr. Donohue explained that no one under the age of 18 can handle alcohol in any capacity. A discussion on age ensued.


BILL:	HB10-1150
TIME:	11:41:40 AM
MOVED:	Bradford
MOTION:	Moved to refer House Bill 10-1150, as amended, to the Committee on Finance . 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

11:42 AM

The committee adjourned.