House Committee on Economic and Business Development (03/20/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON ECONOMIC AND BUSINESS DEVELOPMENT

Date:	03/20/2012	ATTENDANCE

Time:	12:47 PM to 04:56 PM	Balmer	*
		Holbert	X
Place:	HCR 0112	Miklosi	A
		Priola	X
This Meeting was called to order by		Singer	X
	Representative Liston	Soper	X
		Swerdfeger	X
This Report was prepared by		Szabo	*
	Christie Lee	Tyler	X
		Williams A.	X
		Wilson	X
		Swalm	*
		Liston	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB12-122		Postponed Indefinitely

12:48 PM -- Senate Bill 12-122

Representative DelGrosso, prime sponsor, presented Senate Bill 12-122. The bill, as amended by the Senate Judiciary Committee, prohibits a private probation supervision provider that provides a defendant with probation or case management services from having a financial interest in an entity that provides the same defendant with offender treatment, chemical dependency education and treatment, or domestic violence or mental health services. Private probation supervision provideris defined to include nongovernmental entities that have an agreement with a probation department to provide contract probation or case management services, community corrections providers, mental health centers, and diversion services providers are exempted from the bill. The bill takes effect on August 8, 2012, assuming the General Assembly adjourns sine die as scheduled on May 9, 2012, and no referendum petition is filed.

12:54 PM

Representative Williams asked whether there are other companies like Rocky Mountain Offender Management Systems (RMOMS) that does both treatment and probation. Representative DelGrosso responded to questions from the committee regarding the various companies involved in these services.

01:05 PM -- Dan Beeck, representing RMOMS, testified against the bill. He explained that he is the sole target of this legislation and stated that there is another company that provides both treatment and probation in the state but are classified as a community corrections organization. However, that has been amended out of the bill and the bill will now only affect RMOMS. Mr. Beeck talked about the services RMOMS provides and the costs associated with them. He talked about the research the company did to come up with their pricing system.

01:21 PM

Mr. Beeck responded to questions from the committee regarding the success rate of the offenders in his program that he stated has a higher success rate than the state average and charges on a sliding scale. Mr. Beeck was asked to explain what the potential is of a conflict of interest or undue influence in his business and what is being done in his company to avoid them. The committee discussed the provisional license held my RMOMS. Mr. Beeck was asked to explain his client base. Mr. Beeck explained that his average client is a white male, age 30, who earns less than $1500 a month, and typically has at least one dependent. He stated that the usual offense is for a DUI.

01:36 PM

Mr. Beeck continued to respond to questions regarding any complaints that have been filed against the company. Mr. Beeck stated that his treatment center would go out of business if this bill passes. Mr. Beck answered questions from the committee.

01:50 PM

Jerry Berry, Office of Legislative Legal Services, responded to questions from the committee concerning probation services and mental health services provided by the same entity.

02:03 PM -- Ms. Jean Goehring, representing Rangeview Counseling Center, testified in favor of the bill. She stated Rangeview provides a sliding scale for all the services they provide. Ms. Gehring responded to questions from the committee.

02:20 PM

The committee discussed the change in the fiscal note that was provided after the bill was amended in the Senate.

02:28 PM -- Mita Johnson, representing the Treatment Providers' Alliance of Colorado, testified in support of the bill and distributed a handout (Attachment A). A discussion ensued over conflicts of interest.

02:36 PM -- Gary Shoemaker, representing himself, testified in favor of the bill. He explained that you cannot be involved in the therapeutic treatment of a patient and provide probation services, which are punitive, to the same person. Mr. Shoemaker responded to questions from the committee.

02:47 PM -- Mr. Jeff Clayton and Eric Philp, representing the Colorado Judicial Branch, provided background information concerning services that can be provided by a treatment entity. Representative Liston asked how a provisional license is obtained. The witnesses responded to questions from the committee regarding current procedures regarding community corrections.

03:00 PM -- Chris Habgood, representing the Division of Behavioral Health within the Colorado Department of Human Services, came to the table to respond to questions from the committee and explained they have not taken a position on the bill.

03:12 PM -- Dr. Joyce Smith, representing the Substance Abuse Counselors of Colorado, the Treatment Providers' Alliance of Colorado, and the Colorado Provider Alliance, testified in support of the bill. She spoke about efforts to professionalize treatment for substance abuse clients. She described her experience with this issue. Representative Wilson asked whether the problem is that these services are in the same building. Representative Szabo asked whether that is a violation of their license.

03:21 PM -- Tori Johnstin, representing herself as a college student who is going through the process, testified about her experience with RMOMS and the importance of keeping treatment and probation separate. Representative Singer asked what services she received at RMOMS.

03:29 PM -- Dr. Karen Moreau, representing the Treatment Providers' Alliance (TPA), testified in support of the bill. She talked about other states that have similar laws, including Utah. Representative Balmer asked about a handout that was given to the committee from the TPA and read a paragraph from the last page of the handout (Attachment B).

03:43 PM -- Tammy Lovejoy-Teixeira, representing Horizon Counseling and Education, testified in support of the bill. She talked about an accident her daughter was in involving a drunk driver that motivated her to get into providing treatment for people.

03:47 PM -- Shawn Griffin, representing Running Creek Counseling, testified in support of the bill. He talked about the treatment that his company provides.

03:55 PM -- Dave Garrison, representing Genesis Counseling, testified in support of the bill. He responded to earlier testimony.

04:00 PM -- Bryan Stanley, representing Creative Treatment Options, testified in support of the bill. Representative Balmer asked if he is a member of TPA and referred to the paragraph he read earlier.

04:03 PM -- Jeff Thormodsgaard, representing the Treatment Providers' Alliance of Colorado, testified in support of the bill. Representative Balmer referred to the paragraph he read earlier from the TPA handout and asked him to comment. The committee discussed the Division of Behavioral Health's oversight in this issue.

04:23 PM -- Ms. Laura Spicer, representing herself as an addiction counselor, testified in support of the bill. She gave an example of a conflict of interest that could occur. Representative Singer stated that he visited RMOMS and would like to hear from an RMOMS treatment provider.

04:30 PM -- Mark Fournier, representing First Alliance Treatment, was asked to speak to the committee. Mr. Fournier responded to questions from the committee and talked about the switch from RMOMS to First Alliance.


BILL:	SB12-122
TIME:	04:39:30 PM
MOVED:	Wilson
MOTION:	Moved to adopt amendment L.009 (Attachment C). The motion was withdrawn.
SECONDED:	Swalm
		VOTE
	Balmer
	Holbert
	Miklosi	Absent
	Priola
	Singer
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.
	Wilson
	Swalm
	Liston

YES: 0 NO: 0 EXC: 0 ABS: 1 FINAL ACTION: WITHDRAWN


BILL:	SB12-122
TIME:	04:41:00 PM
MOVED:	Soper
MOTION:	Moved to adopt amendment L.008 (Attachment D) . The motion passed without objection.
SECONDED:	Singer
		VOTE
	Balmer
	Holbert
	Miklosi	Absent
	Priola
	Singer
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.
	Wilson
	Swalm
	Liston

YES: 0 NO: 0 EXC: 0 ABS: 1 FINAL ACTION: Pass Without Objection

04:42 PM

Representative DelGrosso made closing remarks on the bill.


BILL:	SB12-122
TIME:	04:44:35 PM
MOVED:	Singer
MOTION:	Moved to refer Senate Bill 12-122, as amended, to the Committee of the Whole. The motion failed on a vote of 1-11.
SECONDED:	Soper
		VOTE
	Balmer	No
	Holbert	No
	Miklosi	Absent
	Priola	No
	Singer	No
	Soper	Yes
	Swerdfeger	No
	Szabo	No
	Tyler	No
	Williams A.	No
	Wilson	No
	Swalm	No
	Liston	No

YES: 1 NO: 11 EXC: 0 ABS: 1 FINAL ACTION: FAIL


BILL:	SB12-122
TIME:	04:55:12 PM
MOVED:	Balmer
MOTION:	Moved to postpone Senate Bill 12-122 indefinitely. The motion passed on a vote of 8-4.
SECONDED:	Holbert
		VOTE
	Balmer	Yes
	Holbert	Yes
	Miklosi	Absent
	Priola	Yes
	Singer	No
	Soper	No
	Swerdfeger	Yes
	Szabo	Yes
	Tyler	No
	Williams A.	No
	Wilson	Yes
	Swalm	Yes
	Liston	Yes

YES: 8 NO: 4 EXC: 0 ABS: 1 FINAL ACTION: PASS

04:56 PM

The committee adjourned.