House Committee on Economic and Business Development (01/26/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON ECONOMIC AND BUSINESS DEVELOPMENT

Date:	01/26/2012	ATTENDANCE

Time:	01:40 PM to 04:51 PM	Balmer	X
		Court	X
Place:	SupCt	Holbert	X
		Miklosi	X
This Meeting was called to order by		Priola	X
	Representative Liston	Soper	X
		Swerdfeger	X
This Report was prepared by		Szabo	X
	Christie Lee	Tyler	X
		Williams A.	E
		Wilson	X
		Swalm	X
		Liston	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB12-1027 HB12-1093 HB12-1002		Amended, Referred to the Committee of the Whole Postponed Indefinitely Amended, Referred to the Committee of the Whole

01:40 PM -- House Bill 12-1027

Representative Bradford, prime sponsor, presented House Bill 12-1027. This bill allows people to produce nonpotentially hazardous foods in a home kitchen for sale directly to consumers for off-site consumption. Sales of these foods are limited to the producer's property, at a roadside stand, or at a farmers' market. A county or district public health agency may register producers and charge a fee up to $100 per producer per year. Products must be labeled and include specific information as well as a statement that the product was produced in a home kitchen that is not subject to state licensure or inspection. Producers must maintain adequate liability insurance.

01:45 PM

Representative Bradford responded to questions from committee members. Representative Wilson asked Representative Bradford to explain the differences between this bill and a similar bill that was carried last year. The committee asked a number of questions regarding how the bill would affect people working out of their homes.

01:57 PM -- Mande Gabelson, representing herself, testified in support of the bill. She talked about her experience with making cakes out of her home for income while her husband was out of work. Ms. Gabelson explained that the county health department stated that a person cannot bake and sell goods out of his or her home, but a person can do a bake sale and give them out for free. She talked about cottage food laws in other states that allow sale of baked goods out of homes.

02:08 PM

Representative Swalm asked about adding a safety clause to the bill to allow it to take effect sooner.

02:10 PM -- Lisa Vanraemdonck, representing the Colorado Association of Local Public Health Officials, testified in favor of the bill and distributed a handout of her testimony (Attachment A).

02:13 PM -- Rosina Lord, representing herself, testified in support of the bill.

02:17 PM -- Jeff Greenberg, representing the Kitchen Coupe, testified in support of the bill and responded to questions from the committee.

02:33 PM -- Holly Wright, representing herself, testified in support of the bill and talked about the recent cottage food law that was passed in Texas. Representative Liston asked how many cakes and how much revenue a person who bakes at home typically makes. Ms. Wright stated that most people make about 2-3 cakes a week, which amounts to about a few hundred dollars a week.

02:37 PM -- Jodi Willis, representing herself, testified in favor of the bill. She talked about how beneficial it would have been for her to be able to bake cakes for extra money to pay for her daughter's medical bills while her husband was laid off.

02:46 PM -- Toni Gagliardi, representing the National Federation of Independent Businesses, testified in support of the bill. He said the bill will open the door to a new crop of Colorado entrepreneurs.

02:50 PM -- Mande Gabelson, prior witness, returned to the table to add to the discussion surrounding the costs and revenue involved in home cake businesses.


BILL:	HB12-1027
TIME:	02:54:14 PM
MOVED:	Liston
MOTION:	Moved amendment L.002 (Attachment B). The motion passed without objection.
SECONDED:	Swalm
		VOTE
	Balmer
	Court
	Holbert
	Miklosi
	Priola
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.	Excused
	Wilson
	Swalm
	Liston

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


BILL:	HB12-1027
TIME:	02:56:15 PM
MOVED:	Liston
MOTION:	Moved amendment L.003 (Attachment C). The motion passed without objection.
SECONDED:	Swalm
		VOTE
	Balmer
	Court
	Holbert
	Miklosi
	Priola
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.	Excused
	Wilson
	Swalm
	Liston

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


BILL:	HB12-1027
TIME:	02:56:55 PM
MOVED:	Szabo
MOTION:	Moved to refer House Bill 12-1027, as amended, to the Committee of the Whole. The motion passed on a vote of 12-0.
SECONDED:	Priola
		VOTE
	Balmer	Yes
	Court	Yes
	Holbert	Yes
	Miklosi	Yes
	Priola	Yes
	Soper	Yes
	Swerdfeger	Yes
	Szabo	Yes
	Tyler	Yes
	Williams A.	Excused
	Wilson	Yes
	Swalm	Yes
	Liston	Yes

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

03:12 PM -- House Bill 12-1093

Representative Soper, prime sponsor, presented House Bill 12-1093 concerning the right of an insured homeowner to have a defective appliance replaced as part of an insurance subrogation action to recover damages to a dwelling unit caused by a defective appliance. The bill requires the judgment or settlement in a homeowner's insurance subrogation claim to provide for the replacement of a defective appliance. The bill affects only those claims where the insured loss was caused by the defective appliance and damages exceed $5,000.

Representative Soper responded to questions from the committee regarding what would be considered an appliance under the bill and how it would be determined that an appliance is defective. Representative Soper distributed a letter from the Attorney General's Office to his constituent that will be testifying on the bill (Attachment D).

03:29 PM -- Helmet Koeckert, representing himself, testified in support of the bill. He talked about his personal experience with a defective appliance and how the bill would have helped in his situation. He responded to questions from the committee.


BILL:	HB12-1093
TIME:	03:48:48 PM
MOVED:	Soper
MOTION:	Moved to refer House Bill 12-1093 to the Committee of the Whole. The motion failed on a vote of 4-7.
SECONDED:	Court
		VOTE
	Balmer	No
	Court	Yes
	Holbert	No
	Miklosi	Excused
	Priola	No
	Soper	Yes
	Swerdfeger	No
	Szabo	No
	Tyler	Yes
	Williams A.	Excused
	Wilson	Yes
	Swalm	No
	Liston	No

YES: 4 NO: 7 EXC: 2 ABS: 0 FINAL ACTION: FAIL


BILL:	HB12-1093
TIME:	03:49:53 PM
MOVED:	Balmer
MOTION:	Moved to postpone House Bill 12-1093 indefinitely. The motion passed on a vote of 7-4.
SECONDED:	Holbert
		VOTE
	Balmer	Yes
	Court	No
	Holbert	Yes
	Miklosi	Excused
	Priola	Yes
	Soper	No
	Swerdfeger	Yes
	Szabo	Yes
	Tyler	No
	Williams A.	Excused
	Wilson	No
	Swalm	Yes
	Liston	Yes

Final YES: 7 NO: 4 EXC: 2 ABS: 0 FINAL ACTION: PASS

03:50 PM -- House Bill 12-1002

Representative Sonnenberg, prime sponsor, presented House Bill 12-1002 concerning the rules of state agencies applicable to applications for permits. The bill amends the State Administrative Procedure Act (APA) to establish a standard procedure for permit applications and permit renewals when an applicable rule is subject to change due to recent legislation or pending rulemaking. Under the bill, state agencies that process permits, not including professional licenses, are required to process the application or renewal using the rules in effect on the date of application. The bill provides an exception for state agencies that determine an unsafe situation is likely to result through the application of existing rules. This health and safety exemption is available when an agency makes a written determination that an unsafe situation is likely and provides notice to the applicant that their pending application requires additional submittal information to comply with specific new health and safety requirements.

03:54 PM

Representative Sonnenberg responded to questions from the committee regarding the time frames in the bill and what would happen if the rules changed under the new law during the time between when an application is filed and when it is approved. A discussion ensued regarding adding some penalties to the bill for a violation.

04:03 PM -- William Allison, Director, Air Pollution Control Division, Colorado Department of Public Health and Environment, discussed his concerns with the bill. He explained that the bill could expose Colorado businesses to certain liabilities and could invite federal interference in Colorado environmental programs.

04:10 PM

Representative Sonnenberg talked about an amendment he was going to offer that will address the division's concerns.

04:18 PM -- Patrick Boyle, representing the Colorado Competitive Council, testified in support of the bill. He responded to the department's testimony and committee questions.

04:25 PM -- Toni Gagliardi, representing the National Federation of Independent Businesses, testified in support of the bill.

04:28 PM -- Carly Dollar, representing the Colorado Association of Commerce and Industry, testified in support of the bill.


BILL:	HB12-1002
TIME:	04:36:25 PM
MOVED:	Liston
MOTION:	Moved amendment L.012 (Attachment E). The motion passed without objection.
SECONDED:	Swalm
		VOTE
	Balmer
	Court
	Holbert
	Miklosi
	Priola
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.	Excused
	Wilson
	Swalm
	Liston

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


BILL:	HB12-1002
TIME:	04:46:08 PM
MOVED:	Tyler
MOTION:	Moved amendment L.013 (Attachment F). The motion was withdrawn.
SECONDED:
		VOTE
	Balmer
	Court
	Holbert
	Miklosi
	Priola
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.	Excused
	Wilson
	Swalm
	Liston

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


BILL:	HB12-1002
TIME:	04:48:18 PM
MOVED:	Swalm
MOTION:	Moved to refer House Bill 12-1002, as amended, to the Committee of the Whole. The motion passed on a vote of 11-1.
SECONDED:	Balmer
		VOTE
	Balmer	Yes
	Court	Yes
	Holbert	Yes
	Miklosi	Yes
	Priola	Yes
	Soper	Yes
	Swerdfeger	Yes
	Szabo	Yes
	Tyler	Yes
	Williams A.	Excused
	Wilson	No
	Swalm	Yes
	Liston	Yes

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

04:51 PM

The committee adjourned.