House Committee on Business, Labor, Economic, & Workforce Development (02/13/2014)

Final
STAFF SUMMARY OF MEETING

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

Date:	02/13/2014	ATTENDANCE

Time:	01:35 PM to 03:46 PM	Exum	X
		Hamner	X
Place:	LSB A	Holbert	X
		Navarro	X
This Meeting was called to order by		Nordberg	X
	Representative Williams	Rosenthal	X
		Ryden	X
This Report was prepared by		Szabo	*
	Erin Vanderberg	Wright	X
		Kraft-Tharp	X
		Williams	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB14-1013 HB14-1226 HB14-1215		Amended, Referred to Appropriations Postponed Indefinitely Referred to the Committee of the Whole

01:31 PM -- House Bill 14-1013

Representative Lee and Representative Foote, sponsors, presented House Bill 14-1013, concerning the creation of the Advanced Industries Workforce Development Program (program). The bill creates the program within the Division of Employment and Training in the Department of Labor and Employment. The program reimburses employers with a high-level internships and apprenticeships in the advanced industries for up to $5,000 in expenses associated with the internship or apprenticeship. The bill limits reimbursements to no more than 10 interns or apprentices per company, with no more than $2,500 of the reimbursement to cover the cost of a stipend to the intern or apprentice. Representative Lee discussed the advantages of internships to the state's workforce and distributed Amendment L.001 (Attachment A), which strikes everything below the enacting clause. Representative Foote discussed the details of the program. The sponsors responded to questions from the committee about the impetus for the bill.

140213 AttachA.pdf

01:44 PM

The sponsors continued to respond to questions from committee members. Representative Ryden distributed and discussed Amendment L.002 (Attachment B). She explained that the amendment allowed businesses who wanted to become involved could be preapproved for the program instead of taking the risk of hiring the intern and then seeking reimbursement after.

140213 AttachB.pdf

01:50 PM

Committee members asked questions about the merit of subsidizing internships for larger corporations. The sponsors discussed the bill's goal of moving students into an experiential learning experience to increase their job marketability.

01:59 PM -- Ed DeCecco, Office of Legislative Legal Services, came to the table to respond to questions from the committee on Amendment L.001. Mr. DeCecco explained that Amendment L.001 moved the bill under the purview of CDLE in addition to Office of Economic Development and International Trade (OEDIT), because CDLE manages the state's workforce development programs. Committee discussion ensued about how this bill relates to existing workforce development efforts.

02:06 PM

The sponsors continued to respond to questions from committee members about the specifics of the bill.

The following people testified on the bill:

02:09 PM -- Tim Heaton, representing the Colorado Advanced Manufacturing Alliance (CAMA), testified in support of the bill. Mr. Heaton, CAMA President, stated that he would veer from his prepared testimony to respond directly to questions the committee had asked of the bill sponsors. He offered examples about manufacturing companies that would benefit from the bill. He responded to questions from the committee about the benefit of this bill's incentive as it compares to a tax credit. Mr. Heaton responded to a question from the sponsor about the scope of the companies the bill would reach.

02:19 PM -- Mark Welle, representing the Rocky Mountain Chamber of the National Tooling and Machining Association, the Colorado Association of Commerce and Industry (CACI), and Wesco Laser Machining, testified in support of the bill. Mr. Welle discussed the problems that manufacturers in the state face in finding a qualified workforce and responded to questions from the committee.

02:29 PM -- Noel Ginsburg, representing CAMA and Intertech Plastics, testified in support of the bill. Mr. Ginsburg echoed Mr. Welle's sentiments about the lack of a skilled workforce as the biggest issue facing the high-tech industries. He stated that the bill was making a community investment by being an incentive that can work itself into the workforce. Mr. Ginsburg responded to questions from the committee regarding the link between schools and industry.

02:39 PM

The committee continued to ask questions of Mr. Ginsburg about his experiences in the manufacturing industry and how this bill would benefit his industry.

02:45 PM -- Peter Neidecker, representing Mountain Side Medical Colorado and CAMA, testified in support of the bill. Mr. Neidecker stated that CAMA is constantly in discussion about improving workforce development. He discussed the issue of the upcoming workforce not being exposed to modern manufacturing. He discussed his company's use of internships to train and build its workforce and stated that his company has hired 80 percent of their interns.

02:49 PM -- Leah Lindahl, representing Colorado BioScience Association, testified in support of the bill. She discussed how members of her association would benefit from this bill. She said that 75 percent of her members employed 10 people or less and this bill would provide an incentive to those businesses creating internship programs where that might have previously been a hardship.

02:51 PM -- Chris Stiffler, representing the Colorado Fiscal Institute, testified in support of the bill. He stated that the bill was a step toward reducing income inequality. He discussed the stagnating wage issue facing the state's middle class and the resulting economic slowdown. He provided statistics related to manufacturing in the state. In 1990, 8 percent of Colorado jobs were in manufacturing; today it is 4 percent. He discussed the significance of these statistics.

02:54 PM

Representative Lee stated that witness Matt Cheroutes, representing the CleanTech Industry Association, had to leave to testify in another committee, but passed along his association's support of the bill.

02:55 PM -- Pat Teegarden and Elise Lowe Vaughn, representing CDLE, came to the table with Stephanie Steffens, representing the Colorado Workforce Investment Board, to respond to questions from the committee. The panel responded to questions from the committee on the implementation of the bill.

03:01 PM

The committee entered the amendment phase.


BILL:	HB14-1013
TIME:	03:06:16 PM
MOVED:	Ryden
MOTION:	Adopt amendment L.002. The motion passed without objection.
SECONDED:	Rosenthal
		VOTE
	Exum
	Hamner
	Holbert
	Navarro
	Nordberg
	Rosenthal
	Ryden
	Szabo
	Wright
	Kraft-Tharp
	Williams
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB14-1013
TIME:	03:12:35 PM
MOVED:	Ryden
MOTION:	Adopt amendment L.001. The motion passed without objection.
SECONDED:	Hamner
		VOTE
	Exum
	Hamner
	Holbert
	Navarro
	Nordberg
	Rosenthal
	Ryden
	Szabo
	Wright
	Kraft-Tharp
	Williams
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

03:16 PM

Representative Foote made closing comments on the bill.


BILL:	HB14-1013
TIME:	03:17:59 PM
MOVED:	Ryden
MOTION:	Refer House Bill 14-1013, as amended, to the Committee on Appropriations. The motion passed on a vote of 6-5.
SECONDED:	Williams
		VOTE
	Exum	Yes
	Hamner	Yes
	Holbert	No
	Navarro	No
	Nordberg	No
	Rosenthal	Yes
	Ryden	Yes
	Szabo	No
	Wright	No
	Kraft-Tharp	Yes
	Williams	Yes
Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:18 PM -- House Bill 14-1226

Representative Labuda, sponsor, presented House Bill 14-1226, concerning the repeal of the restriction on the authority of a local government to regulate the materials used in the packaging of a consumer product. Under current law, a local government may not require or prohibit the use or sale of specific types or plastic materials or products, or restrict or mandate containers, packaging, or labeling for any consumer product. The bill removes this restriction. Representative Labuda discussed her work on the bill and requested that the committee postpone the bill indefinitely. Committee members made comments about the bill.


BILL:	HB14-1226
TIME:	03:22:26 PM
MOVED:	Kraft-Tharp
MOTION:	Postpone House Bill 14-1226 indefinitely. The motion passed on a vote of 10-1.
SECONDED:	Ryden
		VOTE
	Exum	Yes
	Hamner	Yes
	Holbert	Yes
	Navarro	Yes
	Nordberg	Yes
	Rosenthal	No
	Ryden	Yes
	Szabo	Yes
	Wright	Yes
	Kraft-Tharp	Yes
	Williams	Yes

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

03:24 PM -- House Bill 14-1215

Representative Ginal, sponsor, presented House Bill 14-1215, concerning the ability of a federal home loan bank to enforce its rights with regard to collateral subject to a security agreement. The bill prohibits a receiver or liquidator of an insolvent insurer from avoiding obligations to a federal home loan bank with regard to collateral under a security agreement. Any transfer of, or obligation to transfer, money or other property in such agreements involving a federal home loan bank must be honored, except if the transfer is made with actual intent to hinder, delay, or defraud existing or future creditors. Representative Ginal discussed the merits of the bill and distributed three letters of support from the American Council of Life Insurers, Mountain West Credit Union Association, and Heartland Community Bankers Association (Attachments C, D, and E, respectively).

140213 AttachC.pdf

140213 AttachD.pdf

140213 AttachE.pdf

The following individuals testified on the bill:

03:28 PM -- Sonia Betsworth, representing the Federal Home Loan Bank of Topeka, testified in support of the bill.

03:35 PM -- Barbara Walker, representing the Independent Bankers of Colorado, testified in support of the bill.

03:36 PM -- Patrick Boyle, representing Property Casualty Insurers Association of America and Heartland Community Bankers Association, testified in support of the bill.

03:38 PM -- Sonia Betsworth returned to the table to respond to questions from the committee.

03:40 PM

Representative Ginal made closing comments.


BILL:	HB14-1215
TIME:	03:40:48 PM
MOVED:	Kraft-Tharp
MOTION:	Refer House Bill 14-1215 to the Committee of the Whole. The motion passed on a vote of 11-0.
SECONDED:	Szabo
		VOTE
	Exum	Yes
	Hamner	Yes
	Holbert	Yes
	Navarro	Yes
	Nordberg	Yes
	Rosenthal	Yes
	Ryden	Yes
	Szabo	Yes
	Wright	Yes
	Kraft-Tharp	Yes
	Williams	Yes

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

03:45 PM

The committee discussed its upcoming schedule.

03:46 PM

The committee adjourned.