House Committee on Economic and Business Development (01/19/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON ECONOMIC AND BUSINESS DEVELOPMENT

Date:	01/19/2012	ATTENDANCE

Time:	01:46 PM to 02:54 PM	Balmer	X
		Court	X
Place:	HCR 0112	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	*
		Williams A.	X
		Wilson	X
		Swalm	X
		Liston	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB12-1015 HB12-1033 Committee Recommendations Regarding Depart Budgets		Referred to the Committee of the Whole Amended, Referred to the Committee of the Whole Witness Testimony and/or Committee Discussion Only

01:46 PM -- House Bill 12-1015

Representative Holbert, prime sponsor, presented House Bill 12-1015 concerning the procedure for the review of a proposal to regulate an unregulated profession or occupation. He distributed a handout regarding the sunset process (Attachment A). The bill modifies the sunrise review process. A sunrise review examines whether or not there is a need to regulate a previously unregulated occupation or profession. Typically, a professional association requests that a sunrise review be undertaken.

Beginning in FY 2012-13, the bill establishes a new sunrise review cycle under which a proposal to regulate a profession must be submitted to the Department of Regulatory Agencies (DORA) by December 1 in order for the DORA to review and issue a report by October 15 of the following year. The DORA may decline to review a proposal only when it has previously evaluated a proposal to regulate the same professional group, issued a report less than 36 months earlier, and finds that its conclusions would be the same as those in the initial report.

If the DORA receives a proposal to regulate a professional or occupational group and verifies that the unregulated group poses an imminent threat to public health, safety, or welfare, the DORA must notify both the proponents of regulation and the Legislative Council. Within 30 days of the notification, the Legislative Council must conduct a hearing to examine the documentation provided by the DORA. If the committee concurs with the DORA's assessment that the unregulated group does pose an imminent threat, the DORA is not required to complete the sunrise review.

01:55 PM

Representative Holbert responded to questions regarding fees associated with sunrise reviews, stating he is unaware of any fees that are charged to conduct a sunrise report. Representative Holbert responded to additional committee questions regarding the bill's impact on the time frames surrounding sunset reviews and the fiscal impacts associated with changing time frames.


BILL:	HB12-1015
TIME:	02:06:40 PM
MOVED:	Szabo
MOTION:	Moved to refer House Bill 12-1015 to the Committee of the Whole. The motion passed on a vote of 13-0.
SECONDED:	Priola
		VOTE
	Balmer	Yes
	Court	Yes
	Holbert	Yes
	Miklosi	Yes
	Priola	Yes
	Soper	Yes
	Swerdfeger	Yes
	Szabo	Yes
	Tyler	Yes
	Williams A.	Yes
	Wilson	Yes
	Swalm	Yes
	Liston	Yes

YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:08 PM -- House Bill 12-1033

Representative Swalm, prime sponsor, presented House Bill 12-1033 concerning conditions on the authority of the director of the Division of Workers' Compensation to impose administrative fines as a result of compliance audits finding instances of late reporting of injuries under the "Workers' Compensation Act of Colorado."

This bill prohibits the Director of the Workers' Compensation Division of the Department of Labor and Employment from imposing an administrative fine on an insurer or self-insured employer for late reporting of an injury, occupational disease, or fatality when the insurer or self-insured employer was not given sufficient notice of the incident to comply with the reporting deadline. The director may impose an administrative fine in cases where he finds that the late reporting constituted a knowing and repeated pattern of noncompliance by the insurer or self-insured employer and not a lack of notice of the incident.

02:12 PM

Representative Williams asked whether the bill will impact workers' compensation rates and premiums. Representative Soper asked how the bill defines a pattern of noncompliance. Representative Swalm stated that the bill does not define a pattern of noncompliance with a set number failed reports, rather, the bill simply states that a fine will be assessed if there is a repeated pattern. Representative Liston asked who would impose the fine. A discussion ensued regarding the amount of the fines.

02:17 PM -- Patrick Boyle, representing the Property Casualty Insurance Association of America, testified in support of the bill. He explained that an employer has 10 days to report an injury to the Division of Workers' Compensation. If the employer fails to report, the insurance company is assessed a fine. However, he stated, if an audit is conducted by the division, there is a second fine imposed for the same offense. Mr. Boyle believes that the second fine is gratuitous and unnecessary and that the fine should be discretionary and not mandatory. Mr. Boyle addressed an amendment that will be proposed by the sponsor.

02:21 PM

Mr. Boyle addressed the questions that were raised earlier by the committee. He explained that the rates and premiums will not be affected and that the division will decide who is fined. He stated the amounts of the fines vary. Representative Wilson asked what conditions trigger an audit and how many employers receive these fines on an annual basis. Representative Swerdfeger asked whether an employer and insurance company would be fined if there were an unreported fatality. A discussion ensued on who would be responsible for the fines.

02:31 PM -- Kelly Campbell, representing the Property and Casualty Insurers Association, also addressed the earlier questions from the committee regarding reporting requirements, fines, and late reporting.


BILL:	HB12-1033
TIME:	02:38:18 PM
MOVED:	Liston
MOTION:	Moved amendment L.001 (Attachment B). The motion passed without objection.
SECONDED:	Swalm
		VOTE
	Balmer
	Court
	Holbert
	Miklosi
	Priola
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.
	Wilson
	Swalm
	Liston
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB12-1033
TIME:	02:40:05 PM
MOVED:	Swalm
MOTION:	Moved to refer House Bill 12-1033, as amended, to the Committee of the Whole. The motion passed on a vote of 13-0.
SECONDED:	Tyler
		VOTE
	Balmer	Yes
	Court	Yes
	Holbert	Yes
	Miklosi	Yes
	Priola	Yes
	Soper	Yes
	Swerdfeger	Yes
	Szabo	Yes
	Tyler	Yes
	Williams A.	Yes
	Wilson	Yes
	Swalm	Yes
	Liston	Yes

YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:41 PM -- Committee Recommendations Regarding Department Budgets

Representative Liston explained that the SMART Act allows committees of reference to make formal recommendations to the Joint Budget Committee regarding state departments' budgets, based on the committee's hearings with their assigned departments. He asked the committee if they had any recommendations. Representative Swerdfeger talked about the importance of impartial audits. He also talked about the need for oversight over the departments to ensure they implement audit recommendations.

02:45 PM

Representative Wilson suggested that a department working on a long-term project should report on the status of the project annually. Representatives Williams and Miklosi, members of the audit committee, discussed the audit process and stated they would bring the members' concerns to the audit committee. Representative Holbert stated that he would like to see a report from the Department of Regulatory Agencies that lists the total number of licensed professions, licensees, and registered entities over the last five years. He would like the report to correlate that information with the department's total FTE, staffing, and budget. Representative Wilson stated that it would be helpful if the department provided this information on its website as well. Committee discussion followed regarding when the report should be provided to the committee.


BILL:	Committee Recommendations Regarding Depart Budgets
TIME:	02:49:44 PM
MOVED:	Holbert
MOTION:	Move to recommend to the Joint Budget Committee that the Department of Regulatory Agencies provide a report to the House Economic and Business Development Committee and the Joint Budget Committee that lists the total number of licensed professions or registered entities over the last five years correlated with the department's total FTE and budget. The report must be provided within 60 days of when requested and posted on the department's website. The motion passed without objection.
SECONDED:	Priola
		VOTE
	Balmer
	Court
	Holbert
	Miklosi
	Priola
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.
	Wilson
	Swalm
	Liston

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

2:54 PM

The committee adjourned.