House Committee on Business, Labor, Economic, & Workforce Development (03/21/2013)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS, LABOR, ECONOMIC, & WORKFORCE DEVELOPMENT

Date:	03/21/2013	ATTENDANCE

Time:	01:32 PM to 02:52 PM	DelGrosso	X
		Exum	X
Place:	LSB A	Hamner	X
		Holbert	X
This Meeting was called to order by		Navarro	X
	Representative Williams	Nordberg	X
		Rosenthal	X
This Report was prepared by		Ryden	X
	Erin Vanderberg	Szabo	*
		Kraft-Tharp	X
		Williams	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB13-1253 SB13-182		Amended, Referred to Appropriations Amended, Referred to the Committee of the Whole

01:32 PM -- House Bill 13-1253

Representative Lee, prime sponsor, discussed the provisions of House Bill 13-1253. The bill requires the Office of Economic Development (OEDIT) to contract for a study to assess the need and availability of capital for Colorado small businesses. Representative Lee stated that the Denver Metro Chamber of Commerce is neutral on this bill and distributed a letter of support from OEDIT's Kelly Manning (Attachment A).

130321 AttachA.pdf

The following people testified on the bill:

01:42 PM -- Gordon Nuttall, Couragent, Inc., spoke in favor of the bill. Mr. Nuttall distributed a handout on his presentation (Attachment B) and discussed his personal experiences raising capital for his C-corporation, including experiences with crowdfunding and angel investments. Mr. Nuttall stated that the benefit of this bill is that it will provide education for policy makers as well as entrepreneurs. Mr. Nuttall responded to questions from the committee.

130321 AttachB.pdf

01:52 PM -- Karl Dakin, Regis University, spoke in favor of the bill. Mr. Dakin stated that an understanding of capital is critical for small businesses, but highly complicated for newcomers. He discussed changes in the capital landscape in last five years.

01:57 PM -- Greg Olinyk, Point-of-Reference, LLC, spoke in favor of the bill. Mr. Olinyk stated that he was a 30-year veteran of the financial industry. He discussed hurdles to small businesses caused by the banking industry. Mr. Olinyk noted that the banking industry was not represented in the committee room. Representative Lee stated that his office had reached out to the banking industry. Mr. Olinyk responded to questions from the committee. Committee discussion ensued on OEDIT's participation in the bill and the program's funding availability.

02:04 PM -- Jon Senft, Legislative Council Staff, came to the table to discuss the fiscal note. He stated that resources for the bill will come from cash funds. Representative Lee stated that the bill will also be able to leverage federal funds for Small Business Development Centers. Questions from the committee continued on the estimate and the bill's procurement code exemption.

02:14 PM

The committee took a brief recess to wait for the bill drafter.

02:17 PM

The committee came back to order.

02:18 PM -- Duane Gall, Office of Legislative Legal Services, came to the table to answer questions on the procurement code exemption. Representative Williams moved a conceptual amendment to remove the procurement code exemption from the bill (Attachment C).

130321 AttachC.pdf


BILL:	HB13-1253
TIME:	02:20:34 PM
MOVED:	Kraft-Tharp
MOTION:	Adopt conceptual Amendment L.001 (Attachment C). The motion passed without objection.
SECONDED:	Williams
		VOTE
	DelGrosso
	Exum
	Hamner
	Holbert
	Navarro
	Nordberg
	Rosenthal
	Ryden
	Szabo	Excused
	Kraft-Tharp
	Williams
YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection

02:21 PM

The committee discussed another conceptual amendment.


BILL:	HB13-1253
TIME:	02:22:28 PM
MOVED:	Williams
MOTION:	Conceptual amendment on Page 4 to strike lines 16 through 19 and substitute "COMPETITIVE BIDS". The motion passed without objection.
SECONDED:	Kraft-Tharp
		VOTE
	DelGrosso
	Exum
	Hamner
	Holbert
	Navarro
	Nordberg
	Rosenthal
	Ryden
	Szabo
	Kraft-Tharp
	Williams

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

02:23 PM

Representative Lee made closing comments. He stated the bill would help all involved with small business development to have access to empirical investment information.


BILL:	HB13-1253
TIME:	02:25:38 PM
MOVED:	Hamner
MOTION:	Refer House Bill 13-1253, as amended, to the Committee on Appropriations. The motion passed on a vote of 6-5.
SECONDED:	Kraft-Tharp
		VOTE
	DelGrosso	No
	Exum	Yes
	Hamner	Yes
	Holbert	No
	Navarro	No
	Nordberg	No
	Rosenthal	Yes
	Ryden	Yes
	Szabo	No
	Kraft-Tharp	Yes
	Williams	Yes

YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:33 PM -- Senate Bill 13-182

Representative Williams, prime sponsor, presented Senate Bill 13-182 to the committee. The bill adds disclosure requirements to the real estate transactions involving the resale of time share properties. Representative Williams stated that this was a consumer protection bill. She distributed a handout to the committee entitled Consumer Fraud Awareness written by state Attorney General John Suthers (Attachment D).

130321 AttachD.pdf

The following individuals testified to the committee:

02:38 PM -- Scott Fulton, Christie Lodge in Avon, Colorado, spoke in favor of the bill. Mr. Fulton stated that current timeshare resale practices are hurting homeowner associations (HOAs). He stated that dues and maintenance fees will go up if this continues. He brought examples of solicitations to the committee.

02:41 PM -- Robert Wenz, Poste Montane Lodge Condominium Association, spoke in favor of the bill. He stated that current timeshare resale practices will cost his association $10,000 this year and that this bill will help to discontinue that financial burden on HOAs. He responded to questions from the committee on the pervasiveness of the problem and the costs of covering non-dues paying owners.

02:44 PM -- Chris Stewart, ARDA Resort Owners Coalition, spoke in favor of the bill. Mr. Stewart stated that this was an issue affecting the entire country and that his organization was pursuing legislation in other states.

02:45 PM -- Jep Seman, Timeshare Closing Services, spoke neutrally on the bill. He stated that his organization had rejected a bill similar to this last year that had the potential to create a bigger consumer protection issue. He stated that half of the consumer protection problem is reigning in scam artists. He stated that the industry needs another vehicle to record conveyances of deeds.

02:48

Representative Williams moved Amendment L.003 (Attachment E).

130321 AttachE.pdf


BILL:	SB13-182
TIME:	02:48:02 PM
MOVED:	Williams
MOTION:	Adopt amendment L.003 (Attachment E). The motion passed without objection.
SECONDED:	Holbert
		VOTE
	DelGrosso
	Exum
	Hamner
	Holbert
	Navarro
	Nordberg
	Rosenthal
	Ryden
	Szabo
	Kraft-Tharp
	Williams

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


BILL:	SB13-182
TIME:	02:49:30 PM
MOVED:	Williams
MOTION:	Refer Senate Bill 13-182, as amended, to the Committee of the Whole. The motion passed on a vote of 10-0.
SECONDED:	Exum
		VOTE
	DelGrosso	Yes
	Exum	Yes
	Hamner	Yes
	Holbert	Yes
	Navarro	Yes
	Nordberg	Yes
	Rosenthal	Yes
	Ryden	Yes
	Szabo	Excused
	Kraft-Tharp	Yes
	Williams	Yes

YES: 10 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

02:52 PM

The committee adjourned.