House Committee on State, Veterans, & Military Affairs (04/25/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON STATE, VETERANS, & MILITARY AFFAIRS

Date:	04/25/2012	ATTENDANCE

Time:	01:29 PM to 04:58 PM	Baumgardner	X
		Casso	*
Place:	HCR 0112	Court	X
		Duran	*
This Meeting was called to order by		Joshi	X
	Representative Kerr J.	Liston	X
		Todd	X
This Report was prepared by		Coram	X
	Bo Pogue	Kerr J.	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB12-130 SB12-154 SB12-001		Postponed Indefinitely Witness Testimony and/or Committee Discussion Only Postponed Indefinitely

01:30 PM -- Senate Bill 12-130

The committee was called to order. A quorum was present. Representatives Massey and Hamner, prime sponsors, presented Senate Bill 12-130, concerning governance of child development programs, and, in connection therewith, requiring post-enactment review of the implementation of this act. Representative Hamner provided background on her reasons for sponsoring the bill, discussed the stakeholders involved in crafting the bill, and explained the effect of the legislation. Representative Massey provided input on the merits of the bill.

01:37 PM

The following persons testified regarding Senate Bill 12-130:

01:38 PM -- Mr. Reggie Bicha, Executive Director of the Department of Human Services, testified in support of the bill. Mr. Bicha discussed the work of the Early Childhood Leadership Commission in crafting Senate Bill 12-130, and explained how restructuring the state's early childhood services will better serve families. Mr. Bicha discussed the fiscal impact of the bill, and the efficiencies that will result from consolidating early childhood programs. He provided background on some of the efforts that contributed to crafting the bill, and discussed the difficulties families experience in accessing services under the current early childhood programming configuration.

01:43 PM -- Mr. Pat Hamill, representing Oakwood Homes, testified in support of Senate Bill 12-130. Mr. Hamill provided background on stakeholder efforts that led to the crafting of the legislation, and discussed the efficiencies to be realized from consolidating state early childhood services. He also explained how such services contribute to the raising of productive citizens, and discussed recent efforts to secure grants for early childhood services. Mr. Hamill read a letter authored by Mr. Daniel Ritchie of Colorado Concern in support of the bill. Mr. Hamill clarified the position of Colorado Concern on the bill.

01:55 PM -- Ms. Diane Price, representing Early Connections Learning Centers, testified in support of the bill. Ms. Price discussed the mission of her organization, and the work of the Early Childhood Leadership Commission that led, in part, to the introduction of Senate Bill 12-130. She discussed the merits of the bill in serving children and families, as well as assisting early childhood service providers in making services available to families. She also explained how the bill will assist military families with young children. Ms. Price listed a number of organizations that support the bill.

02:01 PM -- Ms. Gretchen Davis, representing the Arapahoe County Early Childhood Council, testified in support of Senate Bill 12-130. Ms. Davis explained how the bill will benefit families and children in need, and discussed the role of early childhood councils in creating the bill. Ms. Davis explained the mission and work performed by the Arapahoe County Early Childhood Council, and explained how the bill will foster collaboration among organizations involved in providing early childhood services. Discussion ensued regarding the stakeholder work that went into crafting Senate Bill 12-130.

02:08 PM

Discussion ensued regarding the importance of moving forward with the consolidation of early childhood services.


BILL:	SB12-130
TIME:	02:12:33 PM
MOVED:	Baumgardner
MOTION:	Moved to postpone indefinitely Senate Bill 12-130. The motion passed on a vote of 4-3.
SECONDED:	Joshi
		VOTE
	Baumgardner	Yes
	Casso	No
	Court	No
	Duran	Excused
	Joshi	Yes
	Liston	Yes
	Todd	No
	Coram	Excused
	Kerr J.	Yes

Final YES: 4 NO: 3 EXC: 2 ABS: 0 FINAL ACTION: PASS


BILL:	SB12-130
TIME:	02:15:44 PM
MOVED:	Todd
MOTION:	Made a substitute motion to refer Senate Bill 12-130 to the Committee on Appropriations with a favorable recommendation. The motion failed on a vote of 3-4.
SECONDED:	Court
		VOTE
	Baumgardner	No
	Casso	Yes
	Court	Yes
	Duran	Excused
	Joshi	No
	Liston	No
	Todd	Yes
	Coram	Excused
	Kerr J.	No

YES: 3 NO: 4 EXC: 2 ABS: 0 FINAL ACTION: FAIL

02:17 PM

The committee recessed.

02:25 PM -- Senate Bill 12-154

Representative Duran, prime sponsor presented Senate Bill 12-154, concerning standards for responsible medical marijuana vendors. Representative Duran explained the effect of the bill, and discussed its merits. The following persons testified regarding Senate Bill 12-154:

02:27 PM -- Ms. Peg Ackerman, representing the County Sheriffs of Colorado, testified in support of the bill. Ms. Ackerman discussed the evolving viewpoint of her organization with respect to marijuana vendor licensing, and the benefits of setting standards for marijuana vendor training. Ms. Ackerman responded to questions regarding her organization's support for vendor training in light of federal preemption on marijuana matters.

02:29 PM -- Mr. Nicholas King, representing Act 4 Colorado, and Ms. Jill Lamoureux, representing the Medical Marijuana Business Alliance, testified in support of the bill. Mr. King explained how the bill will help marijuana vendors and employees to better abide by state medical marijuana laws. Ms. Lamoureuz explained how the bill will help marijuana vendors comply with ever-changing medical marijuana laws. Mr. King and Ms. Lamoureux responded to questions regarding the need for legislation to educate marijuana vendors. Representative Duran discussed the optional nature of the bill. Discussion ensued regarding the length and curriculum of the training program created under the bill.

02:35 PM -- Mr. Shaun Coleman, representing the Cannabis Business Alliance, and Ms. Kristi Kelly, representing Good Meds, the Cannabis Business Alliance, and Act 4 Colorado, testified in support of Senate Bill 12-154. Mr. Coleman discussed the stakeholders that contributed in crafting the legislation. Ms. Coleman lent her support to the bill.

02:37 PM -- Ms. Jaime Lewis, representing Mountain Meds, and Ms. Meg Sanders, representing herself, testified in support of the bill. Ms. Lewis explained how the responsible vendor designation will notify her customers that her business is in compliance with applicable laws. Ms. Sanders discussed additional benefits of the bill.

02:39 PM -- Mr. Josh Kappel, representing Sensible Colorado, and Ms. Shawn Hauser, representing McAllister, Darnell, and Associates, testified in support of the bill. Ms. Hauser discussed the benefits of the bill in terms of legitimacy and transparency for the medical marijuana industry.

02:40 PM

No amendments were offered to the bill. Representative Duran provided closing remarks in support of Senate Bill 12-154. Discussion ensued regarding the number of marijuana vendors in Colorado. Ms. Julie Postlethwait, representing the Department of Revenue, provided input on the number of medical marijuana vendors in the state.


BILL:	SB12-154
TIME:	02:44:11 PM
MOVED:	Duran
MOTION:	Moved to refer Senate Bill 12-154 to the Committee of the Whole with a favorable recommendation. The motion was laid over.
SECONDED:	Todd
		VOTE
	Baumgardner
	Casso
	Court
	Duran
	Joshi
	Liston
	Todd
	Coram
	Kerr J.

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

Representative Liston provided his position on the bill. The committee recessed.

02:46 PM

The committee returned to order. The bill was laid over.

02:47 PM -- Senate Bill 12-001

Representatives Duran and Ryden, prime sponsors, presented Senate Bill 12-001, concerning contracting preferences for persons who employ at least a specified percentage of Colorado residents to perform the requirements of a government contract. Committee members received a fact sheet in support of the bill (Attachment A). Representative Duran explained the effect of the bill, and Representative Ryden discussed its merits. The following persons testified regarding Senate Bill 12-001:

02:51 PM -- Mr. Tom Norton, representing the city of Greeley and the Northern Colorado Legislative Alliance, testified in opposition to the bill. Mr. Norton expressed concerns about potential confusion that would be created by the bill in the area of federal funding for state initiatives, and discussed increased costs associated with state contracting preferences. He discussed the benefits of allowing market conditions to sort the state bidding process. Mr. Norton responded to questions regarding how large state construction contracts are awarded through the procurement process. Mr. Norton responded to further questions regarding his opinion about hiring state residents to work on state-funded projects.

03:02 PM -- Mr. R.J. Hicks, representing the Jefferson County Business Lobby, the Metro North Chamber of Commerce, the Independent Electrical Contractors of Colorado, and the Hispanic Contractors of Colorado, testified in opposition to Senate Bill 12-001. Mr. Hicks discussed the state's procurement process, and explained how the procurement benefit provided by the bill to those companies that provide health care and retirement benefits to their employees disadvantages small businesses. Mr. Hicks discussed the raw dollar figures that may be involved if the full preference is claimed in bidding under the bill. Mr. Hicks responded to questions about how the bill may drive higher costs for large state contracts. Discussion ensued regarding the dollar total for procurement contracts over the past five years. Mr. Hicks responded to questions about the organizations he is representing.

03:11 PM -- Mr. Mark Latimer, representing the Associated Builders and Contractors rocky Mountain and Building Jobs for Colorado, testified in opposition to the bill. Mr. Latimer questioned whether work on large state construction projects is currently being performed by out-of-state workers, and discussed difficulties that may be encountered in determining whether a particular company is eligible for the bidding preferences provided by the bill. Mr. Latimer discussed the costs that would accrue to the state if the bill were to pass. Mr. Latimer responded to questions regarding the vagaries of determining eligibility for the preferences provided by the bill, and the proper authority for making these determinations. Discussion ensued regarding the potential impact of the bill on situations involving businesses located close to a state border that hire employees on the other side of the border.

03:22 PM

Mr. Latimer responded to questions regarding the potential effect of the bill on contracting with large multinational companies.

03:23 PM -- Ms. Loren Furman, representing the Colorado Association of Commerce and Industry, the National Federation of Independent Businesses, and Colorado Concern, and Mr. Bob Moody, representing the Denver Chamber of Commerce and the Colorado Competitive Council, testified in opposition to Senate Bill 12-001. Ms. Furman provided background on recent legislative changes to the state procurement system, and costs to the state associated with these changes. Ms. Furman suggested that the bill seeks to correct a problem that does not exist. Mr. Moody discussed the potential for preference legislation to lead to other governments passing preference legislation, to the detriment of the businesses he represents. He spoke in favor of relying on the free market in the bidding process. Ms. Furman responded to questions regarding current law that requires the work force of companies awarded state bids to be comprised of 80 percent Coloradans. Discussion ensued regarding procurement legislation passed in recent years, and the costs associated with this legislation.

03:33 PM

Discussion ensued regarding state money spent on contracts with out-of-state entities in recent years.

03:34 PM -- Ms. Margaret Gomez, representing 9 to 5 National Association of Working Women, testified in support Senate Bill 12-001. Ms. Gomez discussed the benefits of awarding contracts to companies that hire Colorado workers, particularly those companies that provide benefits. Ms. Gomez responded to questions regarding the need of the members of her organization to travel to other states for employment. Ms. Gomez responded to further questions regarding the choice between employment with no benefits and no employment at all. Ms. Gomez responded to questions regarding her employment arrangement with 9 to 5.

03:38 PM -- Ms. Kandice McKeon, representing the Colorado Building and Construction Trades Council, testified in support of the bill. Ms. McKeon discussed the membership of her organization, and discussed the merits of the provisions in the bill granting up to a 5 percent preference to bidders for state construction contracts based on employing Coloradans and offering benefits. She discussed the outlook for the construction sector in Colorado, and expressed concern about the lack of enforcement mechanisms in the bill. Ms. McKeon spoke in support of jobs that provide benefits, including apprenticeship opportunities. Ms. McKeon responded to questions regarding the number of jobs created by one million dollars of construction spending, and the jobs that may be lost as a result of the procurement preference created by Senate Bill 12-001.

03:50 PM

Discussion ensued regarding the increased costs that the state may incur as a result of granting the procurement preference created by Senate Bill 12-001, and the potential for other states to adopt procurement preferences in detriment to Colorado businesses.

03:54 PM -- Mr. Jody Reuler, representing the Rocky Mountain Health Care Coalition, testified in support of the bill from a health care perspective. He discussed the benefits to the health care system of providing health care benefits to employees. Mr. Reuler responded to questions regarding the organizations opposed to the bill.

03:58 PM -- Ms. Kay Holderness, representing herself, testified in support of Senate Bill 12-001. Ms. Holderness explained how her affiliation with a union has allowed her to provide for her family.

04:00 PM -- Mr. Kevin Abels, representing FRESC, testified in support of the bill. Mr. Abels discussed the benefits to Coloradans of passing the bill, and provided background on the effect of local employment procurement preferences in effect in other parts of the nation. He discussed projects that have been built locally using a local employee procurement preference. Mr. Abels discussed other procurement preferences that would be beneficial, and explained the threshold for granting the health care benefit procurement preference under the bill. Mr. Abels addressed reservations about the bill raised during earlier testimony. Discussion ensued regarding a situation cited by Mr. Abels regarding the use of a local employment procurement preference in Los Angeles. Discussion followed regarding the effect of a slow economy on state procurement, the potential effect of the bill on the jobs base, and the benefits of apprenticeship programs.

04:12 PM

Discussion ensued regarding the economy in Los Angeles, and California in general in comparison to Colorado.

04:13 PM -- Mr. Ben Felson, representing the Colorado Fiscal Policy Institute, testified in support of Senate Bill 12-001. Mr. Felson discussed the benefits to the state of employing Coloradans, and the use of local employment procurement preferences in other states. Mr. Felson discussed state spending on contracts with out-of-state companies in recent years, and the effect of recent economic downturns on the employment rate. Mr. Felson responded to questions regarding the source of funding to support the bid preference created by the bill.

04:19 PM -- Mr. Larry Friedberg, State Architect, and Mr. Judson Byrn, State Purchasing Director, Department of Personnel and Administration, made themselves available to answer questions about the state procurement process. Mr. Friedberg responded to questions about awarding bids for state capital construction projects, the costs associated with the bill, and the burdens that may be placed on his office if the bill passes. Mr. Friedberg responded to further questions regarding an existing state law requiring that capital construction contracts be awarded to firms with 80 percent in-state employees. Mr. Friedberg responded to questions regarding the potential impact of the bill on the state's capital construction budget, and the impact of bid costs on awarding capital construction contracts.

04:30 PM

Mr. Byrn responded to questions regarding the effect of procurement legislation passed in recent years.

04:31 PM

No amendments were offered to the bill. Representative Ryden provided closing remarks in support of Senate Bill 12-001, and addressed concerns raised during testimony.


BILL:	SB12-001
TIME:	04:41:27 PM
MOVED:	Court
MOTION:	Moved to refer Senate Bill 12-001 to the Committee on Appropriations with a favorable recommendation. The motion was withdrawn.
SECONDED:	Todd
		VOTE
	Baumgardner
	Casso
	Court
	Duran
	Joshi
	Liston
	Todd
	Coram
	Kerr J.

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION:


BILL:	SB12-001
TIME:	04:56:53 PM
MOVED:	Duran
MOTION:	Moved to refer Senate Bill 12-001 to the Committee on Appropriations with a favorable recommendation. The motion failed on a vote of 4-5.
SECONDED:	Court
		VOTE
	Baumgardner	No
	Casso	Yes
	Court	Yes
	Duran	Yes
	Joshi	No
	Liston	No
	Todd	Yes
	Coram	No
	Kerr J.	No

YES: 4 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	SB12-001
TIME:	04:57:31 PM
MOVED:	Joshi
MOTION:	Moved to postpone indefinitely Senate Bill 12-001. The motion passed on a vote of 5-4.
SECONDED:	Coram
		VOTE
	Baumgardner	Yes
	Casso	No
	Court	No
	Duran	No
	Joshi	Yes
	Liston	Yes
	Todd	No
	Coram	Yes
	Kerr J.	Yes

Final YES: 5 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS

04:58 PM

The committee adjourned.