House Committee on Business, Labor, Economic, & Workforce Development (04/16/2013)

Final
STAFF SUMMARY OF MEETING

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

Date:	04/16/2013	ATTENDANCE

Time:	11:14 AM to 07:05 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	E
		Kraft-Tharp	X
		Williams	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB13-1301 HB13-1287 HB13-1255 SB13-158 HB13-1304		Referred to Appropriations Referred to Appropriations Amended, Referred to the Committee of the Whole Amended, Referred to the Committee of the Whole Referred to the Committee of the Whole

11:14 AM -- House Bill 13-1301

Representatives Ryden and Gardner presented House Bill 13-1301 to the committee and distributed a packet of handouts to the committee on the program (Attachments A through C). The bill creates the Procurement Technical Assistance task force to address the future structure and oversight of procurement technical assistance centers (PTAC) in Colorado. Representative Ryden discussed the provisions of the bill. Representative Gardner discussed the difficulties in the federal procurement process, and how PTACs help to address these issues and bring government contracts to the state. Representative DelGrosso asked why the task force is necessary, to which Representative Gardner responded that the task force would be charged with turning a state-funded organization to a privately-funded one.

130416 AttachA.pdf

130416 AttachB.pdf

130416 AttachC.pdf

The following individuals testified on the bill:

11:21 AM -- Jeff Kraft, representing the Office of Economic Development (OEDIT), spoke in favor of the bill. Mr. Kraft, who is the Director of Business Funding and Incentives for OEDIT, stated that most states had PTACs in place, and that these centers are essential to helping Colorado businesses compete for government contracts. He discussed the program's operation. Representative DelGrosso asked a question about the bill's $15,000 fiscal impact in FY 2013-14.

11:27 AM -- Richard Pennington, representing the Colorado PTAC board of directors, spoke in favor of the bill. He told a program success story and discussed the credentials of the PTAC's volunteer directors, of which he is one. He stated that the assistance offered to businesses by PTACs provides is very technical in nature, and assists businesses in other contracts they pursue. He stated that the program is good for the state's economy.

11:33 AM

The sponsors stated that they had no amendments and made closing comments on the bill.


BILL:	HB13-1301
TIME:	11:36:05 AM
MOVED:	Kraft-Tharp
MOTION:	Refer House Bill 13-1301 to the Committee on Appropriations. The motion passed on a vote of 9-1, with one excused.
SECONDED:	Hamner
		VOTE
	DelGrosso	Yes
	Exum	Yes
	Hamner	Yes
	Holbert	No
	Navarro	Yes
	Nordberg	Yes
	Rosenthal	Yes
	Ryden	Yes
	Szabo	Excused
	Kraft-Tharp	Yes
	Williams	Yes

Final YES: 9 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS

11:37 AM

The committee recessed until its 1:30 p.m. meeting.

01:36 PM -- House Bill 13-1287

The committee came back to order. Roll call was called; nine members were present and Representatives Szabo and Kraft-Tharp were excused. Representatives Primavera and DelGrosso, prime sponsors, presented House Bill 13-1287 to the committee. The bill extends to Colorado job growth incentive tax credit by an additional five income tax years. The sponsors discussed companies in the state who had benefitted from this tax incentive.

The following individuals testified on the bill:

01:46 PM -- Ken Lund and Michelle Hadwiger, representing the Office of Economic Development and International Trade (OEDIT), spoke in favor of the bill. Director Lund discussed the importance of this tool in promoting the state's economy. He stated that the incentive is performance-based and competitive. Ms. Hadwiger, Business Director for OEDIT, stated that incentive is one of the state's hallmark competitive advantages. She discussed a few recent case studies, with Woodward, Inc., and Visa. She stated that the bill offers very important consistency in the program. Representative DelGrosso discussed the different benchmarks for urban and rural areas. Representative Exum asked a question about a residency requirement for job creation.

01:55 PM -- Mike Fitzgerald, representing Denver South Economic Development Partnership, spoke in favor of the bill. He distributed a handout to the committee (Attachment D). He discussed the competitive economies in the state and nation.

130416 AttachD.pdf

01:57 PM -- Jon Alanis, representing himself, spoke against the bill. He stated that tax incentives are not a legitimate function of government and that tax credits misuse a state's scarce resources. Representative Rosenthal asked for the evidence that proves tax credits are not working.

02:00 PM -- Loren Furman, representing the Colorado Association of Commerce and Industry (CACI), spoke in favor of the bill. Ms. Furman stated that she was also authorized to speak on behalf of the Colorado Competitive Council (C3) in favor of the bill. She stated that it was an important jobs bill.

02:02 PM

Representatives Primavera and DelGrosso made closing comments.


BILL:	HB13-1287
TIME:	02:06:24 PM
MOVED:	DelGrosso
MOTION:	Refer House Bill 13-1287 to the Committee on Appropriations. The motion passed on a vote of 10-0, with one excused.
SECONDED:	Hamner
		VOTE
	DelGrosso	Yes
	Exum	Yes
	Hamner	Yes
	Holbert	Yes
	Navarro	Yes
	Nordberg	Yes
	Rosenthal	Yes
	Ryden	Yes
	Szabo	Excused
	Kraft-Tharp	Yes
	Williams	Yes
Final YES: 10 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

02:05 PM

The committee took a brief recess.

02:08 PM -- House Bill 13-1255

Representatives Murray and Williams, prime sponsors, presented House Bill 13-1255 to the committee. The bill clarifies that certain internet protocol-enabled services, including voice-over-internet protocol (VoIP) services, are exempt from regulation by the Public Utilities Commission (PUC). Representative Williams discussed the legislative history of the bill. She stated that the bill would modernize telecom law and assured that the bill continues PUC oversight over 9-1-1 calls. Representative Murray said that the bill sends a message that the state of Colorado welcomes continued investment and job growth from telecom industry. She said the terms of our telecom regulations were last updated in 1995. She discussed the cost-saving opportunities available through VoIP, including telehealth. The sponsors distributed and discussed a handout on Internet Protocol Enabled Services Protected from PUC Regulation (Attachment E).

130416 AttachE.pdf

02:18 PM

The sponsors responded to questions from the committee. Representative Kraft-Tharp asked about potential issues with unregulated IP-enabled services. The sponsors discussed internet in rural communities. Representative Kraft-Tharp asked whether the PUC would lose its authority over 9-1-1. Representative Williams stated that they would be introducing an amendment to make it explicit that 9-1-1 would not be affected by this bill. Representative Williams stated that Kimberly Culp, executive director of the Larimer Emergency Telephone Authority, expressed neutrality for the bill. Representative Murray stated that Colorado is one of the few states that does not have a 9-1-1 commission, so she and Representative Williams had to work with 94 different 9-1-1 entities on the bill's language.

The following individuals testified to the committee:

02:27 PM -- Steve Merrill, representing AARP, spoke in opposition to the bill. Mr. Merrill distributed an AARP VoIP report to the committee (Attachment F). He stated that the bill represented bad public policy by preventing the PUC from regulation intervention. He discussed the bill's implications for 9-1-1 services. Representative DelGrosso asked what levels of VoIP deregulation that the AARP would be comfortable with. Representative Hamner asked a question on what problems AARP members are facing in terms of IP-enabled services. Mr. Merill stated that, currently and with this bill, the Federal Communications Commission (FCC) is the only outlet for consumers with issues related to their IP-enabled services.

130416 AttachF.pdf

02:41 PM -- Charles Carter, representing himself, spoke in opposition to the bill. Mr. Carter discussed his experiences with VoIP services. He stated that if he is paying for a service, he wants to receive that service, and furthermore, that if he has a complaint, he wants to have a place to file that complaint. He discussed his experiences with 9-1-1 emergency services, and the importance of it being a dependable service.

02:43 PM -- Gary Klug, representing Jefferson County's and other 9-1-1 authorities, spoke in opposition to the bill. Mr. Klug said that he wrote the rules for 9-1-1 emergency services in the state, and discussed his career in state telecommunications. He discussed his technical concerns with unregulated VoIP and, by extension, an unregulated 9-1-1 system.

02:48 PM -- Joseph Benkert, representing Boulder's Regional Emergency Telephone Service, spoke in opposition to the bill. He discussed the statutory obligations of 9-1-1, pursuant to Title 29, Article 11, C.R.S. He stated that the bill puts 9-1-1 authorities into ambiguous situations. He stated that it would make more sense to deregulate VoIP after the impacts of Next Generation 9-1-1 (NG9-1-1) are understood. He discussed marketplace regulation. Kraft-Tharp asked a question about language in the bill that states that the legislation will not affect, modify or expand 9-1-1 services. Mr. Benkert discussed his concerns with the need to regulate 9-1-1 and potential cost increases.

02:58 PM -- Jeffrey Irvin, representing the Jefferson County 9-1-1 authority and the Colorado 9-1-1 Task Force, spoke in opposition to the bill. He discussed his career experience with 9-1-1 emergency services. He discussed the March meeting of the Colorado 9-1-1 Task Force. He stated that the PUC currently regulates 9-1-1 to some degree and he would like to see it regulate all of 9-1-1.

03:05 PM

Representative Murray read a letter from Kimberly Culp, Larimer County 9-1-1 expressing neutrality on the bill. Ms. Culp said the language in the bill and the amendments made clear the bill's intent not to impact 9-1-1 services. Ms. Culp also welcomed the opportunity to further the conversation through the proposed interim study.

03:07 PM -- Doug Dean, representing the PUC, spoke neutrally on the bill. Director Dean discussed a recent PUC rule change. He stated that telecom law is complex, and further complicated by multiple technologies. He discussed the PUC's concerns about Page 4, Line 17 of the bill, which lists VoIP as exempt from PUC regulation. He said the concern is that the PUC will have no authority on technologies that 9-1-1 emergency services depend upon. He discussed regulations in other states pertaining to VoIP. He discussed PUC's concerns with the last paragraph of Amendment L.002. Representative Hamner asked how the bill would change PUC's regulatory authority. Director Dean discussed NG9-1-1 technology.

03:23 PM -- Bill Levis, representing the Office of Consumer Counsel for the State of Colorado in the Department of Regulatory Agencies (DORA), spoke neutrally on the bill. Mr. Levis discussed the work of his office and his office's concerns on the bill. He stated that the issue is not about regulating the internet, but rather basic emergency and telephone services. He discussed DORA's technical concerns with the bill. He stated that unregulated wireless technology and regulated land line technology sends a mixed message.

03:28 PM -- Dennis Tharp, representing Adams, Arapahoe, and Jefferson 9-1-1 authorities, spoke in opposition to the bill. Mr. Tharp distributed a discussed a handout to the committee (Attachment G). He discussed his conversations with Kimberly Culp.

130416 AttachG.pdf

03:32 PM -- Bill Soards, representing AT&T, spoke in favor of the bill. He stated that telecom law is out of date. He discussed VoIP innovations; the global nature of the network; and its ability to assist the fields of healthcare, distance learning and business. He discussed telecom law in other states. He stated that IP is essential to business. He discussed AT&T's partnership with the public safety community. He stated that the concerns from the 9-1-1 community are new to the national debate. Representative Hamner asked how consumer concerns would be addressed without regulation.

03:49 PM -- Milt Doumit, representing Verizon, spoke in favor of the bill. He discussed the business impact of the legislation. He stated that this bill would stem the hemorrhaging of technology jobs; that this bill is not about getting ahead, it is about keeping up. He discussed the process of bringing stakeholders to the table and get the language right. He commented that today's opposition was a vocal minority.

03:53 PM -- Michael Price, representing the Coalition for a Connected West, spoke in favor of the bill. He discussed the benefits of the bill. He commented that all testimony had the consumer in mind. He stated that the bill would attract technology infrastructure guide.

03:57 PM -- Pete Kirchhof, representing the Colorado Telecommunications Association, spoke in favor of the bill. He stated that his organization serves the most rural areas of the state at a high cost because if they did not, no service provider would. They association has only 30,000 customers, but covers 40,000 square miles of the state. He stated his organization supports the legislation to ensure parity in access to the Colorado High Cost Fund.

04:00 PM -- Sandra Solin, representing the Colorado Technology Association, spoke in favor of the bill. She stated that the bill would encourage innovation by supporting internet, which she said was the foundation of our innovation and the platform of the technology industry.

04:03 PM -- Micki Hackenberger, representing the Motion Picture Association of America, spoke in favor of the bill. She commented on Page 5, Lines 11-14 of the bill which ensures protection of intellectual property.

04:07 PM -- Jeff Weist, representing the Colorado Cable Telecommunications Association, spoke in favor of the bill.

04:07 PM

The sponsors introduced two amendments to the committee, L.002 (Attachment H) and L.003 (Attachment I). Representative Williams discussed the provisions of each amendment. She discussed the interim study which she said would allow 9-1-1 authorities, the PUC, and industry members to come together.

130416 AttachH.pdf

130416 AttachI.pdf


BILL:	HB13-1255
TIME:	04:12:30 PM
MOVED:	Williams
MOTION:	Adopt amendment L.002 (Attachment H). The motion passed without objection.
SECONDED:	Holbert
		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


BILL:	HB13-1255
TIME:	04:13:46 PM
MOVED:	Holbert
MOTION:	Adopt amendment L.003 (Attachment I). The motion passed without objection.
SECONDED:	DelGrosso
		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

04:14 PM

The sponsors made closing statements. They stated that the bill would update the laws to keep up with emerging technologies, that the bill had a narrow focus, and the bill would creates a predictable business environment.


BILL:	HB13-1255
TIME:	04:17:43 PM
MOVED:	Williams
MOTION:	Refer House Bill 13-1255, as amended, to the Committee of the Whole. The motion passed on a vote of 10-0, with one excused.
SECONDED:	Hamner
		VOTE
	DelGrosso	Yes
	Exum	Yes
	Hamner	Yes
	Holbert	Yes
	Navarro	Yes
	Nordberg	Yes
	Rosenthal	Yes
	Ryden	Yes
	Szabo	Excused
	Kraft-Tharp	Yes
	Williams	Yes

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

04:18 PM

The committee took a brief recess.

04:34 PM -- Senate Bill 13-158

Representative Ryden, prime sponsor, presented Senate Bill 13-158 to the committee. The bill continues the cost benefit provisions of the State Administrative Procedures Act and implements the recommendations of the sunset review on the preparation of a cost benefit analysis of proposed rules at state agencies. Representative Ryden discussed the changes made to the reengrossed bill. She stated that Bruce Harrelson, representing the Department of Regulatory Agencies (DORA), was available to answer any questions from the committee.

04:36 PM

Representative Ryden introduced prepared Amendment L.011 (Attachment J) to the committee.

130416 AttachJ.pdf


BILL:	SB13-158
TIME:	04:37:21 PM
MOVED:	Ryden
MOTION:	Adopt amendment L.011 (Attachment J). The motion passed without objection.
SECONDED:	DelGrosso
		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

04:37 PM

Representative Ryden made brief closing statements.


BILL:	SB13-158
TIME:	04:38:12 PM
MOVED:	Ryden
MOTION:	Refer Senate Bill 13-158, as amended, to the Committee of the Whole. The motion passed on a vote of 10-0, with one excused.
SECONDED:	Kraft-Tharp
		VOTE
	DelGrosso	Yes
	Exum	Yes
	Hamner	Yes
	Holbert	Yes
	Navarro	Yes
	Nordberg	Yes
	Rosenthal	Yes
	Ryden	Yes
	Szabo	Excused
	Kraft-Tharp	Yes
	Williams	Yes

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

04:42 PM -- House Bill 13-1304

Representative Moreno, prime sponsor, presented House Bill 13-1304 to the committee. The bill removes the distinction between an offensive lockout and a defensive lockout, making an individual eligible for unemployment insurance (UI) benefits whenever his or her unemployment is due to a lockout. Representative Moreno stated that the bill creates shared economic consequences for actions. Representative Rosenthal asked a question about the legislative history of the issue. Representative DelGrosso asked about the need for the bill, since there had not been a lockout since 1996.

05:00 PM

The following individuals testified to the committee:

05:00 PM -- Chris Howes, representing the Colorado Retail Council, and Jim Hautzinger, representing King Soopers and Safeway, spoke in opposition to the bill. Mr. Hautzinger discussed the 1996 grocery store strike, where King Soopers employees went on strike and Safeway employees were locked out. He discussed the resulting ruling a year later, by the Colorado Department of Labor and Employment (CDLE) where it was determined that the Safeway employees who were locked out should receive UI benefits. He discussed current statute, and stated that Colorado laws represent a middle-of-the-road approach. The panelists responded to questions from the committee on whipsaw strikes and hostile negotiations.

05:10 PM -- Brett Johnson, representing the Office of the State Treasurer, spoke in opposition to the bill. Deputy Treasurer Johnson discussed the solvency of the state's Unemployment Compensation (UC) Trust Fund. He discussed the fiscal note. He responded to questions from the committee on the UC Trust Fund.

05:34 PM -- Loren Furman, representing the Colorado Association of Commerce and Industry (CACI), Tony Gagliardi, representing the National Federation of Independent Business (NFIB), and Virginia Love Morrison, representing the Colorado Springs Regional Business Alliance, came to the table together to speak in opposition to the bill. Ms. Morrison Love commented that current law is balanced, which she said stipulates that if you start the dispute, then you do not receive benefits, if you do not start the dispute, than you do receive benefits. She stated that UI premiums are paid solely by the employer. Ms. Morrison Love responded to questions from the committee. Ms. Furman discussed the legislative history related to the UC Trust Fund, particularly during the recession. She stated that the UC Trust Fund is still underfunded and that these funds are bonded dollars, not the state's money. She stated that there have been no labor disputes since 1999 because grocers and unions have reached an agreement. She stated that the bill creates a risk for employers who may see gains in UI benefit premiums. Mr. Gagliardi discussed why small business is at the table, and discussed CDLE's work on consensus-building related to the UC Trust Fund.

05:59 PM -- Tom Clark, representing the Denver Metro Chamber and the Metro Denver Economic Development Council, Tamra Ward, representing Colorado Concern, and Mizraim Cordero, representing the Colorado Competitive Council, came to the table together to speak in opposition to the bill. Mr. Clark stated that the current law was a good balance. He discussed the improving statistics related to Colorado's job creation, from 48th in the nation to fifth best job-producing state in 2013. He stated that this statistic calls into question the need to reform any issue related to labor law and that the bill does nothing for jobs. Ms. Ward echoed Mr. Clark's commentary and stated that current law was similar to other state's laws. Mr. Cordero stated that things are fair as they are.

06:10 PM -- Kevin Hougen, representing the Aurora Chamber of Commerce, and Patrick Pratt, representing the Sough Metro Denver Chamber, came to the table together in opposition to the bill. Mr. Hogan discussed his experience in the Aurora Chamber. He discussed the legislative history of House Bill 09-1170, which would have allowed the CDLE to determine whether a lockout was defensive or offensive, and was vetoed by then Governor Ritter. He discussed his concerns about the cost of doing business if UI benefit premiums go up. Mr. Pratt stated that the state cannot afford to pay people who choose not to work.

06:15 PM -- Dave Davia, representing the Colorado Association of Mechanical and Plumbing Contractors (CAMPC), spoke in opposition to the bill. Mr. Davia discussed how the bill would affect his industry, their union policies, and the impact of a strike.

06:20 PM -- Phil Hayes, representing the Colorado AFL-CIO, spoke in favor of the bill. He discussed the federal protections over collective bargaining. He stated that the 1999 change in law created an imbalance because an employer has no consequence for locking their workers out. He discussed Governor Ritter's stated reasons for vetoing HB09-1170. He discussed the impact of that bill on the United Food and Commercial Workers (UFCW). He stated that current law weakens the union. He commented that the business community had so many people testify because they are worried about losing the upper hand. He discussed the provisions of current law. He commented that the issues brought up related to the UC Trust Fund are baseless. He discussed the democratic nature of unions. Mr. Hayes responded to questions from the committee on the other states that pay UI benefits to employees who are locked out. Mr. Hayes responded to questions from the committee.

06:34 PM -- John Matthewson, representing the UFCW Local 7, spoke in favor of the bill. He discussed the legislative and judicial history of the issue. He stated that unions take strikes very seriously, and that the decision to strike requires two-thirds vote. He stated that the grocery store workers are being lost in the testimony, the vast majority of whom are female and the single head of household. He discussed the corporate landscape in the state. He discussed the average wage of grocery store workers and stated that an unemployment benefit is not a regular paycheck. He stated that most unions do not have strike funds. He responded to questions from the committee.

06:53 PM -- Bill Easton and Chuck Aquinaldo, representing the UCFW Local 7, came to the table together to speak in favor of the bill. Mr. Easton and Mr. Aquinaldo stated that they were Safeway employees during the 1996 lockout. Mr. Easton and Mr. Aquinaldo discussed their personal experiences in the 1996 strike.

07:00 PM -- Pat Teegarden, CDLE, was brought to the table to respond to a question on the ramifications of locking out employees on an employer's experience rating.

07:01 PM

Representative Moreno made closing comments on the bill.


BILL:	HB13-1304
TIME:	07:04:22 PM
MOVED:	Hamner
MOTION:	Refer House Bill 13-1304 to the Committee of the Whole. The motion passed on a vote of 6-4, with one excused.
SECONDED:	Kraft-Tharp
		VOTE
	DelGrosso	No
	Exum	Yes
	Hamner	Yes
	Holbert	No
	Navarro	No
	Nordberg	No
	Rosenthal	Yes
	Ryden	Yes
	Szabo	Excused
	Kraft-Tharp	Yes
	Williams	Yes

Final YES: 6 NO: 4 EXC: 1 ABS: 0 FINAL ACTION: PASS

07:05 PM

The committee adjourned.