House Committee on Business, Labor, Economic, & Workforce Development (03/28/2013)

Final
STAFF SUMMARY OF MEETING

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

Date:	03/28/2013	ATTENDANCE

Time:	01:35 PM to 03:35 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	X
		Kraft-Tharp	*
		Williams	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB13-154 SB13-156 SB13-155 SB13-161		Amended, Referred to Appropriations Referred to Appropriations Amended, Referred to Appropriations Referred to Appropriations

01:35 PM -- Senate Bill 13-154

Representative Williams called the meeting to order. A quorum was present. Representative Ryden chaired the meeting while Representative Williams presented SB 13-157. The bill continues the Division of Banking in the Department of Regulatory Agencies (DORA) through September 1, 2024, and implements the recommendations of the DORA sunset report concerning modifications to banking regulations of the state. Representative Williams provided a brief overview of the regulation of banking, which began one year after statehood in Colorado. Representative DelGrosso thanked Representative Williams for bringing the bill.

The following people testified on the bill:

01:42 PM -- Barbara Walker, Independent Bankers of Colorado, spoke in favor of the bill. Ms. Walker responded to a question from the committee about the Banking Board.

01:44 PM -- Fred Joseph, Bank Commissioner, came to the table to respond to a committee question on industrial banks.

01:45

Representative Williams distributed prepared Amendment L.003 (Attachment A), which corrected a typographical error.

130328 AttachA.pdf


BILL:	SB13-154
TIME:	01:45:50 PM
MOVED:	Williams
MOTION:	Adopt amendment L.003 (Attachment A). 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

01:47 PM

Representative Williams made closing remarks.


BILL:	SB13-154
TIME:	01:47:39 PM
MOVED:	Williams
MOTION:	Refer Senate Bill 13-154, as amended, to the Committee on Appropriations. The motion passed on a vote of 11-0.
SECONDED:	Holbert
		VOTE
	DelGrosso	Yes
	Exum	Yes
	Hamner	Yes
	Holbert	Yes
	Navarro	Yes
	Nordberg	Yes
	Rosenthal	Yes
	Ryden	Yes
	Szabo	Yes
	Kraft-Tharp	Yes
	Williams	Yes

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

01:49 PM -- Senate Bill 13-156

Representative Williams, prime sponsor, introduced Senate Bill 13-156 to the committee. The bill continues the regulation of mortgage loan originators (MLOs) by the Division of Real Estate in the Department of Regulatory Agencies (DORA) until September 1, 2018 and implements the recommendations in the department's 2012 sunset review. Representative Williams stated that the bill was S.A.F.E. Mortgage Licensing Act compliant.

The following individuals testified to the committee:

01:52 PM -- Vivian Belmont, DORA, stated that she was in the room to answer questions about the sunset report.

01:53 PM -- Mike Rosser, Colorado Mortgage Lenders Association, spoke in favor of the bill. Mr. Rosser thanked DORA and the Real Estate Commission for implementing the bill.

01:54 PM -- Jayne Bail, Colorado Association of Mortgage Professionals, spoke in favor of the bill.

01:56 PM -- Marcia Waters, Director of DORA's Division of Real Estate, came to the table to address technical questions. Representative Rosenthal asked about the most common violations by mortgage loan originators. Ms. Waters stated that the most common violations were unlicensed practices, criminal violations post-licensure, or advertising-related. Representative Nordberg asked how many licensed MLOs there were in the state. Ms. Waters stated that there were 5,964 MLOs in the state. Committee discussion ensued on the transition from registration to licensure and how it affected the budget. Ms. Waters stated that the budget remained the same, and that 7.3 employees currently serve the program, and 9.5 are allotted.

02:01 PM -- Josh Abram, Legislative Council Staff, came to the table to discuss the fiscal note.

02:04 PM

Representative Williams made closing remarks.


BILL:	SB13-156
TIME:	02:05:15 PM
MOVED:	Williams
MOTION:	Refer Senate Bill 13-156 to the Committee on Appropriations. The motion passed on a vote of 9-2.
SECONDED:	Ryden
		VOTE
	DelGrosso	Yes
	Exum	Yes
	Hamner	Yes
	Holbert	No
	Navarro	Yes
	Nordberg	Yes
	Rosenthal	Yes
	Ryden	Yes
	Szabo	No
	Kraft-Tharp	Yes
	Williams	Yes

YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:06 PM

The committee took a brief recess.

02:06 PM -- Senate Bill 13-155

Representative Ryden, presented Senate Bill 13-155 to the committee and distributed prepared Amendments L.006 (Attachment B) and L.007 (Attachment C). The bill continues the regulation of real estate appraisers by the Board of Real Estate Appraisers in the Department of Regulatory Agencies (DORA) until September 1, 2022, and implements the recommendations in the department's 2012 sunset review of the board.

130328 AttachB.pdf

130328 AttachC.pdf

The following people testified on the bill:

02:12 PM -- Marcia Waters, DORA Division of Real Estate Director, came to the table to respond to technical questions. Representative Holbert asked questions about the program's cash funds. Committee discussion ensued on Amendment L.006.

02:19 PM -- Lee Ormiston, Colorado Coalition of Real Estate Appraisers, spoke in favor of the bill. Representative Holbert asked about the national appraisal organizations represented in Colorado.

02:23 PM -- Jayne Bail, Colorado Association of Mortgage Professionals, spoke in favor of the bill. Ms. Bail discussed her organization's concerns with language in the reengrossed bill.

02:26 PM -- Vivenne Belmont, DORA, came to the table to offer responses to committee questions on the sunset report.

02:27 PM -- JoAnn Groff, Department of Local Affairs' (DOLA) Division of Property Tax, came to the table to discuss Amendment L.007, which was proposed by DOLA. Representative Holbert asked how a person could learn to appraise properties without a formal education.

02:34 PM -- Lee Ormiston returned to the table to respond to questions from the committee about the education of appraisers.

02:34 PM -- Marcia Waters returned to the table to respond to questions from the committee on appraiser licensing. Representative Holbert discussed a friendly amendment to add "apprenticeship" to the language of the bill. Committee discussion ensued on the bill's reference to "truthful and honest".

02:38 PM -- Thomas Morris, Office of Legislative Legal Services, came to the table to answer questions. Representative Holbert asked if the phrase "truthful and honest" was defined anywhere in statute. Committee members discussed a second reading amendment.

02:42 PM

Representative Ryden gave a brief overview on Amendments L.006 and L.007.


BILL:	SB13-155
TIME:	02:42:15 PM
MOVED:	Rosenthal
MOTION:	Adopt amendment L.006 (Attachment B). The motion passed without objection.
SECONDED:	Exum
		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:	SB13-155
TIME:	02:43:07 PM
MOVED:	Ryden
MOTION:	Adopt amendment L.007 (Attachment C). The motion passed without objection.
SECONDED:	Exum
		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

02:43 PM

Representative Ryden made closing comments.


BILL:	SB13-155
TIME:	02:44:19 PM
MOVED:	Ryden
MOTION:	Refer Senate Bill 13-155, as amended, to the Committee on Appropriations. The motion passed on a vote of 11-0.
SECONDED:	Hamner
		VOTE
	DelGrosso	Yes
	Exum	Yes
	Hamner	Yes
	Holbert	Yes
	Navarro	Yes
	Nordberg	Yes
	Rosenthal	Yes
	Ryden	Yes
	Szabo	Yes
	Kraft-Tharp	Yes
	Williams	Yes

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

02:45 PM -- Senate Bill 13-161

Representative Fischer and Representative Hamner, prime sponsors, presented SB 13-161 to the committee. The bill continues the activities of the State Board of Licensure for Architects, Professional Engineers, and Professional Land Surveyors in the Division of Professions and Occupations in the Department of Regulatory Agencies (DORA) until September 1, 2024, and implements the recommendations in DORA's 2012 sunset review. Representative Hamner offered an overview of the bill and the industry. She defined architects, engineers, and explained the licensure requirements in each profession. Representative Hamner discussed prepared Amendment L.015 (Attachment D) which would direct DORA to create rules to provide for continuing education for engineers. Representative Fischer discussed the amendment. He discussed his personal experience as a licensed professional engineer and discussed the industries' potential for catastrophic harm. He stated that Colorado is one of just a few states that does not require continued education for professional engineers.

130328 AttachD.pdf

The following individuals testified:

03:00 PM -- David Hughes, National Society for Professional Engineers, spoke against the bill. He stated that his organization encourages members to seek continuing education on their own.

03:01 PM -- Larry Mugler, American Society of Civil Engineers (ASCE), spoke in favor of the bill and the amendment. He discussed the benefits of continuing education.

03:03 PM -- Gabriel Burgess, ASCE, spoke in favor of the bill and the amendment. He stated that the continuing education component would make professional engineers unified with other professions.

03:06 PM -- Marilen Reimer, American Council of Engineering Companies (ACEC), spoke in favor of the bill without the amendment. She distributed a handout (Attachment E), and discussed the slim percentage of practice-related engineering complaints last year.

130328 AttachE.pdf

03:11 PM -- Peter Monroe, ACEC, spoke in favor of the bill without the amendment. He discussed his personal experience as a 40-year engineer. He stated that he is able to work in other states currently without Colorado adopting a continuing education requirement. He discussed his experience on the State Board, and stated that continuing education would not have helped the people who were disciplined.

03:14 PM -- Eric Young, ACEC, spoke in favor of the bill without the amendment. He stated that continuing education is already an expectation in the profession.

03:16 PM -- Michael Wisneski, American Institute of Architects (AIA), spoke in favor of the bill without the amendment.

03:17 PM -- Brian Pritchard, Division of Professions and Occupation in DORA, spoke in support of the bill. He discussed DORA's recent efforts to gather information on the continuing education requirement. He stated that the report is not yet complete, so the agency had no position on the amendment from a procedural standpoint.

03:20 PM -- Roger Nelson, Professional Land Surveyors of Colorado, spoke in favor of the bill without the amendment.

03:21 PM -- D.A. Bertram, AIA, spoke in favor of the bill. He discussed his involvement in the writing of current legislation and stated he was available for questions.

03:22 PM -- Bryan Jameson, DORA, came to the table to answer questions on the amendment and the sunset review. He stated that pursuant to Section 23-34-901, C.R.S., mandatory continuing education requirements must be submitted through an application process within DORA and opined on once a survey is completed. Mr. Jameson stated that the department was currently in the midst of such a survey.

03:26 PM -- John Andrzejczak, Merrick and Company, spoke in favor of the bill without the amendment. He stated that there is not currently a problem within the licensed professional engineering industry in terms of continuing education. He stated that there is no evidence that this proposed amendment would impact public safety.

03:27 PM -- Nick Talocco, ASCE, spoke in favor of the bill and the amendment. He discussed the need for engineers to continue their education and stated that the amendment would give the industry a mechanism to track those hours and verify that they are completed. He made comparisons to continuing education requirements in other industries.

03:28 PM -- Mike Griffith, representing himself, spoke in favor of the bill without the amendment. He discussed his personal experience as a structural engineer. He stated that the continuing education requirement was not going to improve public safety.

03:30 PM

Representatives Hamner and Fischer provided an overview on prepared Amendment L.015.


BILL:	SB13-161
TIME:	03:30:49 PM
MOVED:	Hamner
MOTION:	Adopt amendment L.015 (Attachment D). The motion failed on a vote of 1-10.
SECONDED:	Kraft-Tharp
		VOTE
	DelGrosso	No
	Exum	No
	Hamner	Yes
	Holbert	No
	Navarro	No
	Nordberg	No
	Rosenthal	No
	Ryden	No
	Szabo	No
	Kraft-Tharp	No
	Williams	No

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

03:33 PM

Representatives Hamner and Fischer made closing remarks.


BILL:	SB13-161
TIME:	03:34:34 PM
MOVED:	Hamner
MOTION:	Refer Senate Bill 13-161 to the Committee on Appropriations. The motion passed on a vote of 11-0.
SECONDED:	Kraft-Tharp
		VOTE
	DelGrosso	Yes
	Exum	Yes
	Hamner	Yes
	Holbert	Yes
	Navarro	Yes
	Nordberg	Yes
	Rosenthal	Yes
	Ryden	Yes
	Szabo	Yes
	Kraft-Tharp	Yes
	Williams	Yes

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

03:35 PM

The committee adjourned.