Date: 02/19/2015

Final
BILL SUMMARY for HB15-1172

HOUSE COMMITTEE ON JUDICIARY

Votes: View--> Action Taken:
Postpone House Bill 15-1172 indefinitely. The moti
Refer House Bill 15-1172 to the Committee of the W		PASS
FAIL



01:57 PM -- HB15-1172

Representative DelGrosso, prime sponsor, presented House Bill 15-1172, concerning the elimination of punitive damage awards in employment discrimination cases filed under state law. Representative DelGrosso explained the effect of the bill, and discussed its need. Representative DelGrosso responded to questions regarding the scope of the problem he is seeking to rectify, and the capping of employment discrimination lawsuit awards by current law. Discussion ensued regarding the legal thresholds that must be cleared to levy punitive damages in employment discrimination cases.


02:10 PM

Discussion returned to the number of cases filed in Colorado involving punitive damages levied against certain small employers, and the effect of the bill on legislation passed by the General Assembly in 2013. Discussion followed regarding the potential for preventing frivolous employment discrimination lawsuits. Discussion returned to the threshold for qualifying for punitive damages in an employment discrimination cases, and the potential effect of punitive damages on an employer.


02:21 PM

Discussion returned to the ability to prevent frivolous employment discrimination lawsuits. The following persons testified regarding HB 15-1172:

02:23 PM -- Ms. Erin Bennett, representing 9 to 5, testified in opposition to the bill. Ms. Bennett discussed the types of employment discrimination cases encountered by 9 to 5, and noted the effect of punitive damage laws for employment discrimination in other states. Ms. Bennett discussed the circumstances involved in employment discrimination cases that include punitive damage awards.

02:27 PM -- Mr. Mizraim Cordero, representing the Colorado Competitive Council, testified in support of the bill. Mr. Cordero compared the relative punitiveness of employment discrimination cases in Colorado as compared to other states, and discussed the potential damage that punitive damage laws can cause to employers. Mr. Cordero responded to questions regarding the potential impact of Colorado's punitive damage law for employment discrimination on the state's economy, and the ability of employers to insure against employment discrimination cases. Discussion ensued regarding Colorado's punitive damage caps for employment discrimination cases as compared to other states, and the intent behind levying punitive damages in such cases. Mr. Cordero responded to questions regarding his organization's efforts to educate employers about employment discrimination, and the complexity of Colorado's employment discrimination laws as compared to other states. Discussion followed regarding the scope of punitive damage laws for employment discrimination in Colorado.

02:42 PM -- Mr. Arash Jahanian, representing the Colorado Bar Association, testified in opposition to the bill. Mr. Jahanian discussed the nature and purpose of punitive damage laws, and explained that punitive damage laws passed by the General Assembly in 2013 brought this area of law into harmony with federal standards.

02:46 PM -- Mr. Tony Gagliardi, representing the National Federation of Independent Business, testified in support of HB 15-1172. Mr. Gagliardi noted that Congress exempted certain small businesses when crafting federal anti-discrimination laws, and addressed issues raised during earlier testimony. Mr. Gagliardi discussed the impact punitive damages for employment discrimination cases may have on employers. Mr. Gagliardi responded to questions regarding the potential for making equal private and public employer liability for punitive damages based on discrimination. Discussion ensued regarding the costs employers face when litigating an employment discrimination suit, and the incentives for settling such a suit. Mr. Gagliardi responded to questions regarding the costs to file a lawsuit, and trends in the number of business start-ups in Colorado.

02:57 PM -- Ms. Dawn Howard, representing the Colorado Cross-Disability Coalition, testified in opposition to the bill. Ms. Howard discussed the employment discrimination she has faced based upon her disability, and the importance of upholding discrimination law.

03:00 PM -- Mr. Jim Noon, representing Centennial Container, testified in support of the bill. Mr. Noon discussed the potential impact of an employment discrimination suit on a small business. Mr. Noon responded to questions regarding his use of the word "discrimination" in reference to hiring practices, and the impact of employment discrimination legislation that recently went into effect on the number of suits filed on this basis. Mr. Noon responded to a question regarding the threshold for filing an employment discrimination lawsuit.

03:12 PM -- Ms. Christina Johnson, representing the Colorado Cross-Disability Coalition and Atlantis, testified in opposition to the bill. Ms. Johnson discussed the discrimination she has faced based on her disability, and spoke against the removal of rights to compensation. Discussion ensued regarding the potential for frivolous claims to be made in any compensatory situation, and the balancing of punishment for egregious discrimination with the potential for frivolous lawsuits.

03:17 PM -- Mr. Stacy Campbell, representing the Colorado Association of Commerce and Industry, testified in support of the bill. Mr. Campbell discussed the cost of litigation, and the issues employers face in litigating employment discrimination cases. Mr. Campbell explained how attorneys are compensated for taking up employment discrimination cases on the part of plaintiffs. Discussion ensued regarding the intent element in a discrimination claim, and the thresholds for making an employment discrimination claim.

03:26 PM -- Mr. Justin Plaskov, testifying in place of Brian Moore of the Plaintiff Employment Lawyers Association, testified in opposition to the bill. Mr. Plaskov discussed an employment discrimination case he recently litigated. He also discussed the merits of allowing courts to assess punitive damages in such cases.

03:31 PM -- Mr. Charles Ward, representing the Denver Metro Chamber of Commerce, testified in support of the bill. Mr. Ward compared Colorado's employment discrimination laws to those of other states, and discussed the impacts of punitive damages on small businesses.

03:34 PM -- Ms. Mary Jo Lowrey, representing the Colorado Women's Bar Association, testified in opposition to bill. Ms. Lowrey discussed an ongoing employment discrimination case that will probably result in low a compensatory award, and the need for punitive damages in such cases to punish egregious behavior. Ms. Lowrey responded to questions regarding how attorneys decide to take on employment discrimination cases, and the compensation they receive.

03:40 PM -- Ms. Susan Cirocki, representing herself, testified in support of HB 15-1172. Ms. Cirocki discussed the fear instilled in small businesses about employer lawsuits, and the costs associated with such litigation. She discussed the potential for frivolous lawsuits to be filed against a small employer, and risks faced by small business owners.

03:44 PM -- Mr. Al Koger, representing the NAACP, testified in opposition to the bill. Mr. Koger discussed privileged groups that are unwilling to forfeit power, and attempts to advance civil rights.

03:49 PM -- Mr. Jeff Ruebel, representing the Colorado Defense Lawyers Association, testified in support of the bill. Mr. Ruebel explained why employers choose to settle certain employment lawsuits rather than litigate them. He explained why the current punitive damage laws for employment discrimination are different than punitive damage provisions in other areas of law.

03:52 PM -- Ms. Rachel Ellis, representing the Plaintiff Employment Lawyers Association, testified in opposition to HB 15-1172. Ms. Ellis responded to questions and assertions raised during earlier testimony. Ms. Ellis responded to questions regarding an increase in the number of plaintiff lawyer advertisements after the passage of employment discrimination legislation in 2013.

03:57 PM -- Mr. Rich Jones, representing the Bell Policy Center, testified in opposition to the bill. Mr. Jones discussed research undertaken by his firm concerning the effect of employment discrimination laws on lawsuit filings and regional economic conditions. Mr. Jones responded to questions regarding the fears expressed by small business owners during previous testimony, and the effect of punitive damage laws on these business owners.


04:03 PM

No amendments were offered to HB 15-1172. Representative DelGrosso provided closing remarks in support of the bill. Various committee members expressed their positions on the bill.
BILL:HB15-1172
TIME: 04:12:16 PM
MOVED:Lawrence
MOTION:Refer House Bill 15-1172 to the Committee of the Whole. The motion failed on a vote of 6-7.
SECONDED:Van Winkle
VOTE
Buckner
No
Carver
Yes
Court
No
Dore
Yes
Foote
No
Lawrence
Yes
Lundeen
Yes
Pettersen
No
Salazar
No
Van Winkle
Yes
Willett
Yes
Lee
No
Kagan
No
YES: 6 NO: 7 EXC: 0 ABS: 0 FINAL ACTION: FAIL

BILL:HB15-1172
TIME: 04:16:44 PM
MOVED:Kagan
MOTION:Postpone House Bill 15-1172 indefinitely. The motion passed on a vote of 7-6.
SECONDED:Salazar
VOTE
Buckner
Yes
Carver
No
Court
Yes
Dore
No
Foote
Yes
Lawrence
No
Lundeen
No
Pettersen
Yes
Salazar
Yes
Van Winkle
No
Willett
No
Lee
Yes
Kagan
Yes
Final YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS