House Committee on Economic and Business Development (02/23/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON ECONOMIC AND BUSINESS DEVELOPMENT

Date:	02/23/2012	ATTENDANCE

Time:	01:42 PM to 04:49 PM	Balmer	X
		Holbert	X
Place:	HCR 0112	Miklosi	E
		Priola	X
This Meeting was called to order by		Singer	X
	Representative Liston	Soper	X
		Swerdfeger	X
This Report was prepared by		Szabo	X
	Christie Lee	Tyler	X
		Williams A.	*
		Wilson	X
		Swalm	X
		Liston	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB12-1228 HB12-1110 HB12-1272 HB12-1110 HB12-1304		Amended, Referred to the Committee of the Whole Amended, Referred to Finance Referred to Finance Amended, Referred to Finance Referred to the Committee of the Whole

01:43 PM -- House Bill 12-1228

Representative DelGrosso, prime sponsor, presented House Bill 12-1228. Under current law, neighborhood youth organizations (NYOs) seeking licensure from the Department of Human Services (DHS) are required to conduct a fingerprint-based criminal history records check (background check) on all employees and volunteers through both the Colorado Bureau of Investigation (CBI) and Federal Bureau of Investigation (FBI). Instead, this bill allows NYOs to instead conduct one of the following on their employees and volunteers that work with youth:

a CBI background check;
a FBI background check if the person has lived in Colorado less than two years;
a comparison search using the ICON system, the state's judicial records system; or
a background check by a private entity.

Persons found to have been convicted on felony child abuse or a felony offense involving unlawful sexual behavior cannot be hired by a NYO.

01:45 PM

Tina Martinez and Brad Schipper, representing the Boys and Girls Clubs, testified in support of the bill and distributed an overview of background check procedure for the club (Attachment A). They responded to queestions from the committee regarding what organizations would be covered under the bill.


BILL:	HB12-1228
TIME:	01:56:49 PM
MOVED:	Holbert
MOTION:	Moved to adopt amendment L.001 (Attachment B). The motion passed without objection.
SECONDED:	Priola
		VOTE
	Balmer
	Holbert
	Miklosi	Excused
	Priola
	Singer
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.
	Wilson
	Swalm
	Liston

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


BILL:	HB12-1228
TIME:	01:59:36 PM
MOVED:	Szabo
MOTION:	Moved to refer House Bill 12-1228, as amended, to the Committee of the Whole. The motion passed on a vote of 12-0.
SECONDED:	Holbert
		VOTE
	Balmer	Yes
	Holbert	Yes
	Miklosi	Excused
	Priola	Yes
	Singer	Yes
	Soper	Yes
	Swerdfeger	Yes
	Szabo	Yes
	Tyler	Yes
	Williams A.	Yes
	Wilson	Yes
	Swalm	Yes
	Liston	Yes

YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

02:00 PM -- House Bill 12-1110

Representative A. Williams, prime sponsor, presented House Bill 12-1110. The bill was previously heard on February 21, 2012. This bill redefines the legal meaning of appraisal management companies (AMC) and establishes a licensure program for AMCs in the Division of Real Estate (division) in the Department of Regulatory Agencies (DORA). An AMC license may be given to an individual or any third party entity that, in connection with an appraisal for a mortgage transaction, oversees a network or panel of certified appraisers. The composition of the Board of Real Estate Appraisers (board) is modified to include a representative of an AMC. To receive a license, AMCs must:

follow application procedures established by the board and pay a fee;
designate a controlling appraiser to be responsible for the licensed activities of the entity;
maintain errors and omissions insurance;
post a surety bond in the amount of $25,000 with the board; and
submit to a fingerprint-based criminal history check for the controlling appraiser and each principal owner of the entity.

The board may deny a license application based on the outcome of the background check, or based on past disciplinary actions against a controlling appraiser or principal owners. The bill details prohibited acts for licensees and gives the division the authority to investigate and take disciplinary actions, including imposing fines up to $2,500 per offense. The bill establishes misdemeanor penalties for both persons and entities that operate without a valid license.

The bill also requires that applicants for a real estate appraiser license, registration, or certification submit to a fingerprint-based criminal history background check and pay the fee. The board may deny the authority to practice based on the outcome of the background check.

02:11 PM -- Bill Baker, representing the Real Estate Valuation Advocacy Association, testified in support of the bill.

02:13 PM -- Marsha Waters, director of the Division of Real Estate within the Department of Regulatory Agencies, testified in support of the bill. She gave some background information on AMCs, including what they do and the number of complaints the department receives regarding AMCs. Ms. Waters responded to questions from the committee.

02:31 PM -- Lisa Desmarais, representing the Colorado Coalition of Appraisers, testified in support of the bill and distributed a copy of her testimony (Attachment C). Ms. Desmarais responded to questions from the committee.

02:43 PM -- Ted Leighty, representing the Colorado Association of Realtors, testified in support of the bill and distributed a packet of e-mails he has received regarding this issue (Attachment D). Mr. Leighty responded to questions from the committee.

02:58 PM -- Kim Henzfeldt, representing himself, testified on the bill. He expressed some concerns with the bill and mentioned some upcoming amendments that will help address some of those concerns. Mr. Henzfeldt responded to questions from the committee.

03:14 PM -- Matthew George, representing himself, an appraiser, testified in support of the bill and distributed a copy his testimony (Attachment E).

03:20 PM -- Lee Ormiston, representing the Northern Colorado Association of Real Estate Appraisers, testified in support of the bill.

03:22 PM -- Curt Settle, representing the Department of Local Affairs, testified on the bill. He talked about the errors and omissions insurance requirement in the bill.

03:25 PM -- Bart Bartholomeu, representing himself, testified in support of the bill.

03:26 PM -- Margaret Moxley, representing herself, distributed a copy of her testimony in lieu of testifying (Attachment F).

03:26 PM -- Jennifer Waller, representing the Colorado Bankers' Association, testified in favor of the bill. She responded to questions from the committee.

03:37 PM

Representative Liston laid the bill over for action later today.

03:37 PM -- House Bill 12-1272

Representatives Duran and Ramirez, prime sponsors, presented House Bill 12-1272. This bill extends until June 30, 2014, enhanced unemployment insurance compensation benefits for eligible unemployment insurance (UI) claimants engaged in an approved training program for entry into a high-demand occupation. The Director of the Division of Employment and Training in the Department of Labor and Employment is responsible for identifying high-demand occupations. Under current law, the division can obligate $15 million over three years, ending June 30, 2012, for enhanced UI benefits. This bill authorizes the division to obligate $8 million for FY 2012-13 and FY 2013-14. The division may seek, accept, and expend gifts, grants, and donations to cover its administrative costs.

The definition of approved training program is expanded to include employer-based or entrepreneurial training programs approved by the director. The bill removes the options of training for entry into an occupation that leads to stable, long-term employment, or an occupation in the renewable energy field. The definition of eligible UI claimant is expanded to include those receiving extended benefits, or benefits under a military or federal claim. The bill is repealed effective July 1, 2014.

03:44 PM -- Kathy White, representing the Colorado Fiscal Policy Institute, testified in support of the bill. Representative Szabo asked the witness to explain how this program works.

03:55 PM -- Pat Teegarden, representing the Colorado Department of Labor and Employment, testified in support of the bill. He responded to questions from the committee regarding the UI Trust Fund.

04:02 PM -- Tony Gagliardi, representing the National Federation of Independent Businesses, testified in support of the bill.

04:05 PM -- Loren Furman, representing the Colorado Association of Commerce and Industry, testified in support of the bill.

04:07 PM -- Maggie Gomez, representing 9 to 5, testified in support of the bill.

04:11 PM

The sponsors gave some closing remarks on the bill.


BILL:	HB12-1272
TIME:	04:11:54 PM
MOVED:	Wilson
MOTION:	Moved to refer House Bill 12-1272, to the Committee on Finance. The motion passed on a vote of 7-4.
SECONDED:	Singer
		VOTE
	Balmer	No
	Holbert	No
	Miklosi	Excused
	Priola	No
	Singer	Yes
	Soper	Yes
	Swerdfeger	Yes
	Szabo	Absent
	Tyler	Yes
	Williams A.	Yes
	Wilson	Yes
	Swalm	No
	Liston	Yes

YES: 7 NO: 4 EXC: 1 ABS: 1 FINAL ACTION: PASS

04:13 PM -- House Bill 12-1110

The committee took a recess.

04:16 PM

The committee was called back to order. Representative Williams mentioned that Charles Tuttle, an appraiser, supports the bill. (Attachment G.)


BILL:	HB12-1110
TIME:	04:18:56 PM
MOVED:	Williams A.
MOTION:	Moved to adopt amendment L.002 (Attachment H). The motion passed without objection.
SECONDED:	Liston
		VOTE
	Balmer
	Holbert
	Miklosi	Excused
	Priola
	Singer
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.
	Wilson
	Swalm
	Liston

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


BILL:	HB12-1110
TIME:	04:20:14 PM
MOVED:	Williams A.
MOTION:	Moved to adopt amendment L.003 (Attachment I). The motion passed without objection.
SECONDED:	Balmer
		VOTE
	Balmer
	Holbert
	Miklosi	Excused
	Priola
	Singer
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.
	Wilson
	Swalm
	Liston

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


BILL:	HB12-1110
TIME:	04:26:52 PM
MOVED:	Balmer
MOTION:	Moved to adopt amendment L.004 (Attachment J). The motion failed on a vote of 3-9.
SECONDED:	Liston
		VOTE
	Balmer	Yes
	Holbert	No
	Miklosi	Excused
	Priola	No
	Singer	Yes
	Soper	No
	Swerdfeger	No
	Szabo	No
	Tyler	No
	Williams A.	No
	Wilson	No
	Swalm	No
	Liston	Yes

YES: 3 NO: 9 EXC: 1 ABS: 0 FINAL ACTION: FAIL


BILL:	HB12-1110
TIME:	04:29:21 PM
MOVED:	Balmer
MOTION:	Moved to adopt amendment L.006 (Attachment K), as amended. The motion failed on a 6-6 vote.
SECONDED:	Wilson
		VOTE
	Balmer	Yes
	Holbert	No
	Miklosi	Excused
	Priola	Yes
	Singer	Yes
	Soper	No
	Swerdfeger	No
	Szabo	Yes
	Tyler	No
	Williams A.	No
	Wilson	Yes
	Swalm	No
	Liston	Yes

YES: 6 NO: 6 EXC: 1 ABS: 0 FINAL ACTION: TIE


BILL:	HB12-1110
TIME:	04:34:30 PM
MOVED:	Liston
MOTION:	Move to amend amendment L.006 to change 30 days to 45 days. The motion passed on a vote of 7-5.
SECONDED:	Balmer
		VOTE
	Balmer	Yes
	Holbert	No
	Miklosi	Excused
	Priola	Yes
	Singer	Yes
	Soper	Yes
	Swerdfeger	No
	Szabo	Yes
	Tyler	No
	Williams A.	No
	Wilson	Yes
	Swalm	No
	Liston	Yes

YES: 7 NO: 5 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:	HB12-1110
TIME:	04:43:52 PM
MOVED:	Williams A.
MOTION:	Moved to refer House Bill 12-1110, as amended, to the Committee on Finance. The motion passed on a vote of 7-5.
SECONDED:	Wilson
		VOTE
	Balmer	No
	Holbert	No
	Miklosi	Excused
	Priola	No
	Singer	Yes
	Soper	Yes
	Swerdfeger	Yes
	Szabo	Yes
	Tyler	Yes
	Williams A.	Yes
	Wilson	Yes
	Swalm	No
	Liston	No

YES: 7 NO: 5 EXC: 1 ABS: 0 FINAL ACTION: PASS

04:45 PM -- House Bill 12-1304

Representative Barker, prime sponsor, presented House Bill 12-1304. Under current law, disorderly conduct is a class 2 misdemeanor, a class 3 misdemeanor, or a class 1 petty offense, depending on the activities involved. A person commits the offense of disorderly conduct if he or she intentionally, knowingly, or recklessly:

makes a coarse and obviously offensive utterance, gesture, or display in a public place and the utterance, gesture, or display tends to incite an immediate breach of the peace (class 1 petty offense, or class 2 misdemeanor if the offense interferes with a funeral or causes emotional distress at a funeral);
makes unreasonable noise in a public place or near a private residence that he or she does not have a right to occupy (class 1 petty offense, or class 2 misdemeanor if the offense interferes with a funeral or causes emotional distress at a funeral);
fights in a public place (class 3 misdemeanor);
discharges a firearm in a public place, if the person is not a peace officer and is not engaged in lawful target practice or hunting (class 2 misdemeanor); or
displays a deadly weapon, displays any article used or fashioned in a manner to cause a person to reasonably believe that the article is a deadly weapon, or represents verbally or otherwise that he or she is armed with a deadly weapon in a public place in a manner calculated to cause harm, provided that the person is not a peace officer (class 2 misdemeanor).

This bill adds activating, deactivating, or causing a fire alarm or an exit alarm to sound or preventing a fire alarm from sounding to the list of offenses classified as disorderly conduct. The bill states that such actions would be classified as a class 2 misdemeanor.

In addition, the bill specifies that the definition of "theft detection deactivating device" includes jumper wires, wire cutters, and electronic article surveillance removal devices, and that the definition of "theft detection shielding device" includes foil-lined or otherwise modified clothing, bags, purses, or containers used for avoiding detection devices. Under current law, it is a class 1 misdemeanor for any person to:

knowingly manufacture, distribute, or sell a theft detection deactivating or shielding device with the knowledge that some person intends to use the device to commit theft;
possess a theft detection deactivation or shielding device with the intent to use it, or with the knowledge that some person intends to use it, to commit theft; or
knowingly and without authorization deactivate or remove a theft detection device or any component of one prior to purchasing something in a store.

04:45 PM --

The committee asked the witnesses (all in favor) who signed up if they would not testify and the committee just move the bill. The witnesses deferred. The sponsor had no amendments to offer.


BILL:	HB12-1304
TIME:	04:47:26 PM
MOVED:	Holbert
MOTION:	Moved to refer House Bill 12-1304 to the Committee of the Whole. The motion passed on a vote of 9-0.
SECONDED:	Szabo
		VOTE
	Balmer	Yes
	Holbert	Yes
	Miklosi	Excused
	Priola	Excused
	Singer	Yes
	Soper	Yes
	Swerdfeger	Yes
	Szabo	Yes
	Tyler	Yes
	Williams A.	Excused
	Wilson	Yes
	Swalm	Yes
	Liston	Excused

YES: 9 NO: 0 EXC: 4 ABS: 0 FINAL ACTION: PASS

04:49 PM

The committee adjourned.