Joint Committee Committee on Joint Business Affairs & Labor (01/17/2012)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON JOINT BUSINESS AFFAIRS & LABOR

Date:	01/17/2012	ATTENDANCE

Time:	10:33 AM to 04:38 PM	Aguilar	X
		Balmer	X
Place:	HCR 0112	Gardner D.	X
		Harvey	X
This Meeting was called to order by		Holbert	X
	Senator Tochtrop	Jahn	X
		Miklosi	*
This Report was prepared by		Mitchell	*
	Christie Lee	Priola	X
		Soper	X
		Swalm	X
		Swerdfeger	X
		Szabo	*
		Tyler	X
		White	X
		Williams A.	X
		Williams S.	X
		Wilson	X
		Liston	X
		Tochtrop	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Call to Order Department of Reg Agencies SMART Act Briefing Department of Labor and Emplmnt SMART Act Briefing Dept of Personnel and Admin SMART Act Briefing OEDIT Office of Info Technology Joint Rule 25 Briefing Office of State Auditor Presentation Office of State Auditor Presentation Office of State Auditor Presentation		Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only

10:35 AM -- Department of Regulatory Agencies SMART Act Briefing

The committee was called to order by Representative Liston. The committee took a recess.

10:38 AM -- Department of Regulatory Agencies SMART Act Briefing

Barbara Kelley, Executive Director of the Department of Regulatory Agencies (DORA), began the briefing by distributing a copy of the department's strategic plan to the committee (Attachment A) and a spreadsheet documenting the number of Confidential Letters of Concern issued by each board/program in calendar year 2011 (Attachment B). She gave the committee an overview of the department and talked about the divisions within the department. Ms. Kelley also talked about the number of licensees the department oversees.

10:47 AM

Ms. Kelley began talking about the department's strategic plan. She discussed the following goals of the department for 2012-13:

consumer outreach;
professional outreach;
complaint resolution;
timely access;
qualified professionals; and
economic environment.

Senator Tochtrop asked about the number of letters of concern that were issued and listed in the handout. She said she would like to see percentages as well as totals.

11:08 AM

Ms. Kelley introduced the members of her staff.

11:10 AM

Representative Soper asked for more detail on the complaints regarding electricians. Representative Holbert discussed and distributed a list of occupations and professions DORA oversees (Attachment C). He asked whether the department ever looks at downsizing regulating industries. Ms. Kelley responded. A discussion ensued on the topic. Representative Wilson commented on the web hit count for DORA's website that Ms. Kelley mentioned and suggested categorizing the searches and clicks in addition to counting the number of clicks. Ms. Kelley stated that information will be captured with the new system and that it will be available on the department's website.

11:21 AM

Representative Swerdfeger commented on licensing and re-testing for professional licenses. Representative Szabo followed up on an issue that was discussed in the Joint Budget Committee briefings regarding when a complaint is filed with DORA. Ms. Kelley responded to questions from Representative Court regarding how DORA communicates with the public and how it uses its funding and fees. Representative Priola asked whether responses to complaints are available on-line. Ms. Kelley stated nothing is published regarding the disposition of a board's investigation and talked about the confidentiality requirements regarding complaints.

11:32 AM -- Department of Labor and Employment SMART Act Briefing

Ellen Golombek, executive director of the Department of Labor and Employment (DOLE), presented the department's SMART briefing and distributed a handout of her presentation (Attachment D). She talked about the divisions that make up the department and walked the committee through the handout.

11:47 AM

Ms. Golombek talked about the Unemployment Insurance (UI) Program and about the program's struggles complying with federal requirements. She listed the accomplishments the UI Program achieved in 2011 and talked about the program's goals for 2012. Ms. Golombek also discussed the issue of improper payments. Ms. Golombek talked about the call center as well. Jeff Fitzgerald, (DOLE), responded to Senator Mitchell's question regarding UI fraud and fraud recovery. Representative Szabo asked about the employee survey that was recently conducted and whether it is available on-line. Representative Soper asked the director to explain what the department would need in order for the department to carry out its duties.

12:10 PM

Senator Harvey asked about the UI fund recovery percentages. Mr. Fitzgerald explained that about 69 percent of improper payments made from state money are recovered, and about 35 percent of federal funds are recovered. Senator Harvey asked what is being done in order to improve that recovery rate. Mr. Fitzgerald responded. Committee staff distributed a fact sheet regarding the Unemployment Insurance Integrity Strategic Plan (Attachment E).

12:15 PM

Wayne Peel, Department of Labor and Employment, came to the table to respond to Representative Liston's questions regarding the state paying the federal government back at a 2.9 percent interest rate. Representative Liston commented on the previous 4 percent interest rate and talked about creating a bonding mechanism. Ms. Golombek talked about the current discussions surrounding using a bonding mechanism with the Treasurer's Office and business groups. Representative Swalm asked about garnishing wages to recover improper payments. Mr. Fitzgerald added that the state can also garnish tax refunds, gaming, and lottery money as well. A discussion ensued regarding improper payments. Representative Swalm asked how long an unemployed individual can be on unemployment and whether people are tracked after they have exhausted their unemployment benefits. Ms. Golombek stated that they do track that weekly and that the average stay on unemployment in Colorado is 16.5 weeks.

12:27 PM

Representative Swalm also asked about a recent increase in unemployment insurance rates. Ms. Golombek talked about the increase that came in 2010 because of the insolvency surcharge that kicked in when the fund went insolvent. She also talked about House Bill 11-1288 that was passed in order to stabilize rates.

01:51 PM -- Department of Personnel and Administration SMART Act Briefing

Kathy Nesbitt, executive director of the Department of Personnel and Administration (DPA), talked about the strategic plan provided in the packet distributed to members (Attachment F). She was joined by Jennifer Okes, Deputy Director of DPA. Ms. Nesbitt walked the committee through the SMART Government Act presentation. She talked about the divisions within the department.

01:59 PM

Ms. Nesbitt began talking about the department's strategic plan. She talked about the accomplishments the department achieved in 2011 and the goals for 2012. She focused on the changes the department would like to make to outdated computer systems.

02:08 PM

Representative Wilson asked for an overview of responsibility over motor pool and procurement. Ms. Nesbitt responded. Representative Swerdfeger asked Ms. Nesbitt to talk about the Western States Procurement Alliance.

02:14 PM

Representative Szabo asked about the DPA's policy on new hires accruing sick time. Ms. Nesbitt stated sick leave accrues at 6.6 hours a month, beginning after 30 days. Representative Szabo asked whether the department has looked into changing the accrual rate. Ms. Nesbitt stated they are not looking at changing the accrual rates. Representative Priola asked about the success of the program that offers incentives to state employees who come up with ways to make efficiencies in government. Ms. Okes stated she had heard of only one submission under the program. Representative Holbert asked what the total liability is for the state for all sick time. Mr. McDermott, State Controller, responded. A discussion ensued on accrual of leave time by state employees, including sick, annual, and overtime. Representative Swerdfeger asked whether a part-time employee can receive full-time benefits.

02:36 PM

Representative Liston asked about Colorado State University's overtime policy. The department talked about the limited number of employees covered by the state in higher education.

02:43 PM -- Office of Economic Development and International Trade Joint Rule 25 Briefing

Ken Lund, executive director of the Office of Economic Development and International Trade (OEDIT), distributed a handout of the office's presentation (Attachment G). He talked about the reorganization of the office that occurred once he became the executive director of the office.

02:56 PM

Mr. Lund state that the OEDIT six core objectives are:

build a business-friendly environment;
retain, grow, and recruit companies;
increase access to capital;
create and market a stronger Colorado brand;
educate and train the workforce of the future; and
cultivate innovation and technology.

Senator Williams asked about international outreach. Mr. Lund responded to questions from the committee regarding Colorado businesses. Representative Miklosi asked how higher education and technology jobs fit into the OEDIT's strategy. Representative Wilson talked about the number of reasons people come to Colorado. Mr. Lund continued to respond to questions from the committee.

03:19 PM

Mr. Lund introduced his staff. Representative Court asked for the OEDIT's legislative goals for the session. Senator White asked about access to broadband in rural Colorado.

03:28 PM -- Office of Information Technology Joint Rule 25 Briefing

Kristin Russell, secretary of technology and chief information officer of the the Office of Information Technology (OIT), distributed a handout of her presentation (Attachment H). She talked about the goals OIT has for 2012 on page 15 of the handout.

03:38 PM

Todd Olson, chief financial officer of OIT, talked about the top budget-related initiatives, including modernizing the Colorado Financial Reporting System, data center consolidation, and IT storefront.

03:44 PM

Ms. Russell talked about OIT's 2012 legislative agenda. She also addressed the earlier question regarding broadband availability in rural areas. Representative Holbert asked whether there are vendors that specialize in state government programs. Representative Wilson expressed his concerns over information security. Travis Shack, OIT, responded.

04:10 PM -- OSA Presentations on DOLE, DPA, and OIT

Jonathan Trull, Office of the State Auditor (OSA), talked about the audits that were conducted of the Department of Labor and Employment, Department of Personnel and Administration, and the Office of Information Technology (Attachments I, J, and K, respectively). Senator Tochtrop and Representative Miklosi, members of the Legislative Audit Committee, gave some background on the audit process.

04:20 PM

Michelle Colin, OSA, discussed the Department of Personnel and Administration eligibility audit.

04:26 PM

Melissa Canaday, OSA, discussed the Department of Personnel and Administration's financial audits.

04:38 PM

The committee adjourned.