Final
STAFF SUMMARY OF MEETING

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

Date:03/20/2014
ATTENDANCE
Time:01:32 PM to 04:39 PM
Exum
X
Hamner
*
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
X
Erin Vanderberg
Wright
*
Kraft-Tharp
X
Williams
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB14-1316
HB14-1289
HB14-1315
HB14-1318		Amended, Referred to Appropriations
Referred to the Committee of the Whole
Amended, Referred to the Committee of the Whole
Referred to Appropriations


01:33 PM -- HB 14-1316

Representative Williams called the meeting to order. A quorum was present. Representative Salazar and Representative Williams presented House Bill 14-1316, concerning methods to determine whether disparities involving certain historically underutilized businesses exist within the state procurement process. This bill directs the Department of Personnel and Administration (DPA) to conduct a study to determine whether disparities exist in the state procurement system. The study's final report is to be completed, posted online by the Minority Business Office, and submitted to members of the General Assembly by December 1, 2015. The executive director of the DPA is required to include the findings of the study and any additional recommendations in his or her State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act hearing. The executive director of the DPA is also required to develop a method for tracking state contracts with historically underutilized businesses, and to publish this information online. The DPA must track and publish this information beginning on January 1, 2015.

Representative Williams distributed two handouts to the committee (Attachments A and B, respectively) and discussed the handouts. Representative Salazar discussed data related to minority-owned businesses in the state. The sponsors responded to questions from the committee.

140320 AttachA.pdf140320 AttachA.pdf140320 AttachB.pdf140320 AttachB.pdf


The following individuals testified on the bill:

01:43 PM -- Carol Pfarr, representing DPA, came to the table to respond to the committee's questions on the state's procurement process.

01:47 PM -- Diedra Garcia, representing herself, testified in support of the bill. She discussed her perspective on the bill through her own small business, as a minority- and women-owned business advocate, and through her family's construction business.

01:53 PM -- Carolyn Love, representing herself, testified in support of the bill. Ms. Love discussed her experience as a minority small business owner operating a property management business.

01:56 PM -- Phil Hayes, representing the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO) and the Colorado Building and Construction Trades Council, testified in support of the bill. Mr. Hayes discussed the state contracting process and responded to questions from the committee.

02:04 PM -- Chris Hinds, representing the Colorado Cross-Disability Coalition, testified in support of the bill.

02:05 PM -- Leslie Herod, representing One Colorado and the National Gay and Lesbian Chamber of Commerce, testified in support of the bill. She stated her organization's stance that Lesbian-, Gay-, Bi-Sexual-, and Transgender-owned businesses should also be included in the bill.

02:08 PM -- Michael Gifford, representing the Associated General Contractors of Colorado, testified in support of the bill. He discussed his industries desire to support and lends its assistance to the study, and the need for the study. He discussed Senate Bill 09-228 as it relates to the bill.

02:12 PM -- Martin Johnson, representing Harvestons Securities, testified in support of the bill. He discussed his and his colleagues concerns with the exclusion of minority-owned financial industries in the state procurement process. He responded to questions from the committee.

02:18 PM -- Abdur-Rahim Ali, representing Leadership Caucus, testified in support of the bill. Mr. Ali discussed the disparities he sees in the state procurement process as it relates to minority-owned businesses.

02:20 PM -- Helga Grunerud, Hispanic Contractors of Colorado, testified in support of the bill. Ms. Grunerad discussed the reasons her organization supports the bill. She compared the investment in minority- and women-owned businesses to an

02:23 PM -- Erin Bennett, representing 9 to 5, testified in support of the bill. Ms. Bennett discussed the importance of studying disparities in the state.

02:25 PM -- Ronald Roybal, representing the Roybal Corporation and the Committee for City and Airport Fairness, testified in support of the bill. He discussed his concerns with disparity in the state procurement process. Mr. Roybal responded to questions from the committee.

02:35 PM

Mr. Roybal continued to respond to questions from the committee.


02:36 PM -- Sherman Hamilton, representing himself, testified in support of the bill. Mr. Hamilton discussed his reticence to respond to state-issued RFPs anymore based on continued unsuccessful efforts over the past 15 years as a minority business owner.

02:40 PM -- Walter Jones, representing himself, testified in support of the bill. He discussed examples of large public contracts that were not issued to diverse businesses and discussed the state and City of Denver's history of disparity studies. He stated that the study should include employment statistics. He responded to questions from the committee.

02:46 PM -- Linda Purcell, representing herself, testified in support of the bill. Ms. Purcell discussed her experience as the owner of a small, women-owned business. She discussed her concerns with the state procurement process. She discussed the qualifications of minority- and women-owned businesses in the state. She discussed her recommendations for the study.

02:53 PM -- Nicole Singleton, representing the Colorado Black Chamber of Commerce, testified in support of the bill. Ms. Singleton discussed the work of her chamber, and its support for the study.

02:55 PM -- Adriane Sanford, representing herself and the Sanford Group, LLC, testified in support of the bill. She discussed her concerns with disparity in the state procurement process.

02:58 PM -- Dan Pearsall, representing the Conference of Minority Transportation Officials, testified in support of the bill. He discussed his organization's work in leveling the playing field for minority owned businesses in the transportation field. He stated that the bill would open the door for the state to understand disparities in the procurement process, which he said do exist.

03:02 PM -- Loren Furman, representing the Colorado Association of Commerce and Industry, testified in support of the bill. She echoed the testimony of the witnesses before and stated that the bill would provide important opportunities for businesses in the state. Ms. Furman and Representative Salazar responded to questions from the committee.

03:06 PM -- Richard Lewis, representing the Colorado Black Chamber of Commerce, testified in support of the bill. Mr. Lewis discussed the complex nature of the disparity issue and his organization's eagerness to work on the issue. He discussed his own company's struggle to do business with the state government, while the mainstay of its business is with the federal government.

03:11 PM -- Maya Wheeler, representing Colorado Black Women for Political Action, testified in support of the bill.

03:12 PM -- Michael Mares, representing Walker-Dilworth Insurance and the Hispanic Chamber Education Foundation, testified in support of the bill.

03:13 PM -- Glen Dilworth, representing Walker-Dilworth Insurance, testified in support of the bill. He stated his desire to see a percentage of state contracts issued to minority- and women-owned businesses.

03:15 PM -- Deborah Ward-White, representing the Colorado Multi-Ethnic Cultural Consortium, testified in support of the bill.

03:17 PM -- Clinton Thurlow, representing Veteran-Owned Small Businesses and Service-Disabled Veteran-Owned Small Businesses, testified in support of the bill. Mr. Thurlow discussed his experience as a veteran and an engineer. He discussed his experience with a disparity study in South Carolina. He responded to questions from the committee.




03:20 PM

Representative Williams discussed Amendment L.001, (Attachment C) which would add Lesbian-, Gay-, Bi-Sexual-, and Transgender-owned businesses to the study.

140320 AttachC.pdf140320 AttachC.pdf
BILL:HB14-1316
TIME: 03:21:23 PM
MOVED:Williams
MOTION:Adopt amendment L.001. The motion passed on a vote of 7-4.
SECONDED:Kraft-Tharp
VOTE
Exum
Yes
Hamner
Yes
Holbert
No
Navarro
Yes
Nordberg
No
Rosenthal
Yes
Ryden
Yes
Szabo
No
Wright
No
Kraft-Tharp
Yes
Williams
Yes
YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS



03:22 PM

The sponsors delivered closing remarks on the bill. Committee members made closing remarks.
BILL:HB14-1316
TIME: 03:25:50 PM
MOVED:Williams
MOTION:Refer House Bill 14-1316, as amended, to the Committee on Appropriations. The motion passed on a vote of 6-5.
SECONDED:Ryden
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

03:28 PM

The committee took a brief recess.

03:29 PM -- HB 14-1289

Representative McNulty presented House Bill 14-1289, concerning the reinvestment of unused governmental moneys held by a financial institution that are in excess of the amount insured by the Federal Deposit Insurance Corporation (FDIC) in accounts of other financial institutions. Under the Colorado Public Deposit Protection Act (PDPA), public funds deposited into bank deposit accounts (savings, checking, bank money-market, and certificate of deposit accounts) by any of the state's subdivisions must be insured by the FDIC. Any moneys invested in excess of the allowable FDIC-insured amounts are to be deposited by the bank into the certificates of deposit of another FDIC-insured bank. This bill specifies that moneys deposited in excess of the FDIC-insured amounts may be redeposited into FDIC-insured deposit accounts, rather than being redeposited into certificates of deposit. The bill also specifies the timing by which these transactions are to take place. Representative McNulty responded to questions from the committee.

The following individual testified on the bill:

03:43 PM -- Barbara Walker, representing the Independent Bankers of Colorado, testified in support of the bill. Ms. Walker explained the PDPA and responded to questions from the committee.


03:51 PM

Representative McNulty made closing remarks on the bill.
BILL:HB14-1289
TIME: 03:51:27 PM
MOVED:Holbert
MOTION:Refer House Bill 14-1289 to the Committee of the Whole. The motion passed on a vote of 10-0.
SECONDED:Szabo
VOTE
Exum
Yes
Hamner
Yes
Holbert
Yes
Navarro
Yes
Nordberg
Yes
Rosenthal
Yes
Ryden
Yes
Szabo
Yes
Wright
Yes
Kraft-Tharp
Excused
Williams
Yes
Final YES: 10 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

03:52 PM -- HB 14-1315

Representative Gardner presented House Bill 14-1315, concerning the enactment of certain model acts adopted by the National Association of Insurance Commissioners (NAIC). This bill enacts model legislation adopted by the NAIC for:

• the Commissioner of Insurance to use in determining whether and to what extent an insurance company can take a credit on its financial statement for reinsuring a portion of its liabilities; and
• specifying the conditions under which insurance companies can offset their financial obligations when a contractually-related insurance company becomes insolvent.

Representative Gardner stated that this bill had the support of the insurance community. He responded to questions from the committee. Representative Gardner distributed Amendment L.001 and Amendment L.002 (Attachments D and E, respectively).

140320 AttachD.pdf140320 AttachD.pdf140320 AttachE.pdf140320 AttachE.pdf

The following individuals testified on the bill:

04:00 PM -- Jim Hall, representing American Council of Life Insurers, testified in support of the bill. Mr. Hall described reinsurance regulations in the state.




04:04 PM -- Mary Tuttle, representing Security Life of Denver, testified in support of the bill. Ms. Tuttle discussed what is required of her agency in reinsurance transactions.

04:06 PM -- Eric Banta, representing Security Life of Denver, testified in support of the bill. Mr. Banta stated that the bill provides an important update and explained the mechanics of the bill.
BILL:HB14-1315
TIME: 04:12:59 PM
MOVED:Holbert
MOTION:Adopt amendment L.001. The motion passed without objection.
SECONDED:Wright
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:HB14-1315
TIME: 04:14:52 PM
MOVED:Szabo
MOTION:Adopt amendment L.002. The motion passed without objection.
SECONDED:Holbert
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:HB14-1315
TIME: 04:15:58 PM
MOVED:Holbert
MOTION:Refer House Bill 14-1315, as amended, to the Committee of the Whole. The motion passed on a vote of 11-0.
SECONDED:Nordberg
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

04:16 PM -- HB 14-1318

Representative Hullinghorst presented House Bill 14-1318, concerning continuation of enhanced unemployment insurance (UI) benefits for unemployed individuals participating in approved training programs. This bill extends until July 1, 2017, enhanced UI compensation benefits for eligible unemployment insurance claimants engaged in an approved training program for entry into an occupation. Under current law, the Colorado Department of Labor and Employment (CDLE) can obligate $8.0 million over two years, ending June 30, 2014, for enhanced UI benefits paid from the UI Trust Fund. This bill authorizes the CDLE to obligate $12.0 million General Fund over three years ending June 30, 2017, with a maximum of $4.0 million expended per fiscal year. Representative Hullinghorst distributed a handout to the committee (Attachment F) and responded to questions from the committee.

140320 AttachF.pdf140320 AttachF.pdf

The following individuals testified on the bill:

04:26 PM -- Patrick Teegarden and Elise Lowe-Vaughn, representing CDLE, came to the table to respond to questions from the committee on the existing UI program. Mr. Teegarden discussed the history of the program. The witnesses responded to questions from the committee.

04:32 PM -- Linda Meric, representing 9 to 5, testified in support of the bill. Ms. Meric discussed the state's economy and the safety net that this program provides.


04:35 PM -- Rich Jones, representing the Bell Policy Center, testified in support of the bill. Mr. Jones provided a written copy of his testimony (Attachment G).

140320 AttachG.pdf140320 AttachG.pdf

04:37 PM

Representative Hullinghorst distributed testimony from the Colorado Fiscal Institute (Attachment H) and stated that the Colorado Association of Commerce and Industry was also in support of the bill.

140320 AttachH.pdf140320 AttachH.pdf
BILL:HB14-1318
TIME: 04:38:23 PM
MOVED:Kraft-Tharp
MOTION:Refer House Bill 14-1318 to the Committee on Appropriations. The motion passed on a vote of 6-4.
SECONDED:Ryden
VOTE
Exum
Yes
Hamner
Yes
Holbert
No
Navarro
No
Nordberg
No
Rosenthal
Yes
Ryden
Yes
Szabo
Excused
Wright
No
Kraft-Tharp
Yes
Williams
Yes
Final YES: 6 NO: 4 EXC: 1 ABS: 0 FINAL ACTION: PASS

04:39 PM

The committee adjourned.