House Committee on Business, Labor, Economic, & Workforce Development (02/20/2014)

Final
STAFF SUMMARY OF MEETING

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

Date:	02/20/2014	ATTENDANCE

Time:	01:38 PM to 04:23 PM	Exum	X
		Hamner	X
Place:	LSB A	Holbert	X
		Navarro	X
This Meeting was called to order by		Nordberg	*
	Representative Williams	Rosenthal	X
		Ryden	X
This Report was prepared by		Szabo	X
	Erin Vanderberg	Wright	X
		Kraft-Tharp	X
		Williams	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB14-1187 HB14-1082 HB14-1254 HB14-1199		Referred to Judiciary Amended, Referred to the Committee of the Whole Referred to the Committee of the Whole Amended, Referred to Appropriations

01:38 PM -- HB 14-1187

Representative Williams, chair, called the meeting to order. A quorum was present. Representative Swalm, sponsor, presented House Bill 14-1187, concerning consumer protection from excess damages for repair of rental vehicles. The bill limits the amount a rental company can recover in court from an authorized driver for damages to a rental motor vehicle to an amount reasonably and rationally related to the actual loss incurred. A rental company is required to mitigate damages where possible, not profit from the loss, charge no more than $100 to administer the claim, and limit the claim made for loss of use to the daily rental rate, multiplied by the estimated repair time, divided by eight. A rental company is prohibited from making a claim for loss of use if the rental motor vehicle is not repaired.

Representative Swalm discussed a recent Colorado Appellate Court case, Purco v. Koenig, and requested that the committee move the bill to the House Committee on Judiciary.


BILL:	HB14-1187
TIME:	01:41:37 PM
MOVED:	Holbert
MOTION:	Refer House Bill 14-1187 to the Committee on Judiciary. 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

01:42 PM -- HB 14-1082

Representative Lee, sponsor, presented House Bill 14-1082, concerning a requirement for a written notice of cancellation of individual life insurance policies. The bill clarifies that a life insurance policy can only be cancelled for reasons specified by statute. At least 30 days prior to the cancellation, the insurer must send a written notice to the policyholder's last known address by registered or certified mail, and retain proof of receipt for five years. Alternately, if a policyholder has consented to receive policy information electronically, the insurer can send the cancellation notice to the policyholder's last known e-mail address. The insurer must maintain proof that the notice was sent electronically for 5 years.

Representative Lee distributed and discussed two amendments, Amendment L.002 (Attachment A) and Amendment L.003 (Attachment B). Representative Lee responded to questions from committee on the nature of the bill and the amendments.

140220 AttachA.pdf

140220 AttachB.pdf

The following people testified:

01:48 PM -- Jim Hall, representing the American Council of Life Insurers (ACLI), testified in support of the bill. Mr. Hall stated that ACLI supports the bill as amended. Mr. Hall responded to a question from the committee.

01:54 PM -- Jo Donlin and Dayle Axman, representing the Division of Insurance in the Department of Regulatory Agencies (DORA), testified in support of the bill. Ms. Donlin discussed the division's concerns with the original bill's certified mail requirement, and stated DORA's support for the bill as amended.


BILL:	HB14-1082
TIME:	01:56:40 PM
MOVED:	Ryden
MOTION:	Adopt amendment L.003. 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


BILL:	HB14-1082
TIME:	01:57:43 PM
MOVED:	Kraft-Tharp
MOTION:	Adopt amendment L.002. 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

01:59 PM

Representative Lee made closing remarks.


BILL:	HB14-1082
TIME:	02:00:27 PM
MOVED:	Kraft-Tharp
MOTION:	Refer House Bill 14-1082, as amended, to the Committee of the Whole. The motion passed on a vote of 11-0.
SECONDED:	Hamner
		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

2:00 PM

The committee took a brief recess.

02:05 PM -- HB 14-1254

The committee came back to order. Representative Labuda, sponsor, presented House Bill 14-1254, concerning a requirement to disclose fees charged to a unit owners' association by a community association manager. The bill requires a licensed community association manager who provides services for a Homeowners' Association (HOA), either directly or through employees or subcontractors, to fully disclose to the HOA all service fees and charges that will be billed either to the HOA or to unit owners. The community association manager must disclose all fees and charges during contract negotiations with the executive board of an HOA, and annually thereafter. The Division of Real Estate in the Department of Regulatory Agencies (DORA) may regulate, investigate, and take disciplinary action against a manager for a violation of these provisions.

The following individuals testified:

02:09 PM -- Molly Foley-Healy, Community Associations Institute (CAI), testified in support of the bill. She stated the advantages of the bill and responded to questions from the committee.

02:16 PM -- Marcia Waters, DORA Division of Real Estate Director, came to the table to respond to questions from the committee. She discussed the recent concerns related to HOAs that have reached the division. She responded to questions from the committee.

02:19 PM -- Steven Gray, representing himself, testified against the bill. He discussed his experience with HOAs. He stated his concerns that the stakeholder process watered down the original intent of the bill. He responded to questions from the committee.

02:22 PM -- Leslie Stevens, representing Eclipse Properties, testified against the bill. She stated her concerns about HOA board members lack of knowledge on the fees, management contracts, and the Colorado Common Interest Ownership Act (CCIOA). Ms. Stevens discussed her concerns with the bill. She responded to questions from the committee.

02:30 PM -- Jim Burneson, representing himself, testified against the bill. Mr. Burneson discussed the issues with the bill. He responded to questions from the committee.

02:37 PM -- Kerry Hoffner, representing herself, testified against the bill. Ms. Hoffner discussed her opposition to the bill.

02:40 PM -- Doug Eilrich, representing himself, testified against the bill. Mr. Eilrich discussed his experiences with HOA transfer fees and responded to questions from the committee.

02:49 PM

The committee asked Representative Labuda to explain the stakeholder process behind the bill to better understand the nature of the testimony.

02:52 PM -- Stan Hrincevich, representing the Colorado HOA Forum, testified against the bill. He discussed his disappointment with the lobbying process that changed the original intent of the bill.

02:56 PM -- Tim Larson, Westwind Management Group, testified in support of the bill. Mr. Larson discussed his industry and responded to questions from the committee.

02:58 PM -- Wayne Mattox, representing Association and Community Management, testified in support of the bill. Mr. Mattox discussed the unpredictability of sales in HOAs. Mr. Mattox responded to questions from the committee about his association's fees. He discussed the legal nature of the contract and how the fee was set accordingly.

03:04 PM -- John Field, representing MSI, LLC, testified in support of the bill. Mr. Field discussed his management company's responsibility in a closing. Mr. Field responded to questions from the committee.

03:12 PM

Mr. Field continued to respond to questions from the committee on the bill's impact on his industry.

03:13 PM -- Lori Smith, representing herself, testified against the bill. She discussed discrepancies in the fees, and stated her desire to see a cap on the transfer fee. Ms. Smith responded to questions from the committee on the previous version of the bill.

03:17 PM -- John Reed, representing himself, testified in support of the bill.

03:18 PM -- Brandon Helm, Warren Management Group and CAI, testified in support of the bill. Mr. Helm discussed the variability of transfer fees.

03:19 PM -- Dee Wolfe, representing CAI, testified in support of the bill. She described the nature of the closing documents and the work they require. Ms. Wolfe responded to questions from the committee.

03:26 PM -- Justin Fontes, representing CAI, testified in support of the bill. He discussed his experiences with HOAs.

03:28 PM -- Jeff Kutzer, representing CAI, testified in support of the bill. He stated that the bill improves transparency.

03:30 PM -- Jim Cowell, representing CAI, testified in support of the bill. Mr. Cowell reiterated his colleagues testimony, and explained the difficulty in setting a uniform price on the transfer fee. Mr. Cowell responded to questions from the committee on the uniformity of fees within an HOA.

03:32 PM -- David Phifer, representing CAI, testified in support of the bill. Mr. Phifer discussed his experience with property management companies. He stated that computerization can only reduce fees so much, and that legwork and legal liability go into the production of these transfer documents.

03:34 PM -- Jeff Powles, representing TMMC Property Management, testified in support of the bill. Mr. Powles offered a point of clarification to earlier testimony on multiple status letters and multiple fees.

03:36 PM -- Brian Terhark, representing Westwind Management Group, testified in support of the bill. He discussed previous testimony related to HOA board members.

03:39 PM -- Chris Crigler, representing Cap Management, testified in support of the bill. Mr. Crigler provided examples of why fees are not one-size-fits-all. He distributed a map on the property transfer process for HOA management companies (Attachment C). Mr. Crigler responded to questions from the committee.

140220 AttachC.pdf

03:44 PM

Representative Labuda made closing remarks.


BILL:	HB14-1254
TIME:	03:44:47 PM
MOVED:	Kraft-Tharp
MOTION:	Refer House Bill 14-1254 to the Committee of the Whole. The motion passed on a vote of 10-0.
SECONDED:	Ryden
		VOTE
	Exum	Yes
	Hamner	Yes
	Holbert	Yes
	Navarro	Yes
	Nordberg	Yes
	Rosenthal	Yes
	Ryden	Yes
	Szabo	Yes
	Wright	Excused
	Kraft-Tharp	Yes
	Williams	Yes

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

03:49 PM

The committee took a brief recess.

04:00 PM -- HB 14-1199

The committee came back to order. Representative Williams, sponsor, presented House Bill 14-1199, concerning changes to the regulation of consumer goods service contracts. This bill provides for the limited regulation of consumer goods service contracts, in which a consumer pays a premium for the repair, replacement, or maintenance of, or indemnification for, a tangible product with a value of at least $100.

Representative Williams distributed three amendments, Amendment L.001 (Attachment D), Amendment L.003 (Attachment E), and Amendment L.004 (Attachment F). Representative Kraft-Tharp distributed Amendment L.002 (Attachment G). Representative Williams listed the associations she involved in the stakeholder process. She responded to questions from the committee.

140220 AttachD.pdf

140220 AttachE.pdf

140220 AttachF.pdf

140220 AttachG.pdf

The following individual testified:

04:02 PM -- Steven McDaniel, representing Service Contract and Industry Council, testified in support of the bill. Mr. McDaniel stated that this form of consumer protection is currently available in 34 other states.

04:06 PM

Representative Kraft-Tharp stated representatives from DORA had signed up neutrally on the bill, but had to leave. Representative Williams discussed the amendments individually.


BILL:	HB14-1199
TIME:	04:07:12 PM
MOVED:	Ryden
MOTION:	Adopt amendment L.004. 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:	HB14-1199
TIME:	04:09:56 PM
MOVED:	Ryden
MOTION:	Adopt amendment L.003. 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:	HB14-1199
TIME:	04:10:49 PM
MOVED:	Ryden
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:	HB14-1199
TIME:	04:21:04 PM
MOVED:	Williams
MOTION:	Adopt amendment L.001. 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

04:21 PM

Representative Williams made closing remarks.


BILL:	HB14-1199
TIME:	04:21:48 PM
MOVED:	Szabo
MOTION:	Refer House Bill 14-1199, as amended, to the Committee on Appropriations. The motion passed on a vote of 11-0.
SECONDED:	Rosenthal
		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

04:23 PM

The committee adjourned.