Bill Summary for Bill Number SB15-269

Date: 04/29/2015

Final
BILL SUMMARY for SB15-269

SENATE COMMITTEE ON JUDICIARY

Votes: View-->	Action Taken:
Adopt amendment L.001 (attachment A). The motion p Refer Senate Bill 15-269, as amended, to the Commi	PASS

01:43 PM

Senator Roberts, chair, called the committee to order. She explained the agenda and procedures for the meeting.

01:47 PM -- SB15-269

Senator Roberts, sponsor, presented Senate Bill 15-269, concerning the determination of whether an individual is an independent contractor for purposes of coverage under the state unemployment insurance program. She explained the bill and distributed amendment L.001 (Attachment A).

15SenateJud0429AttachA.pdf

01:50 PM -- Mr. Vincent Shaw, representing Teamsters Local 445, testified in opposition to the bill. Mr. Shaw stated that the bill makes it more likely that an individual would be classified as an independent contractor. He stated that the bill makes it easier for employers to misclassify individuals as independent contractors, which makes those individuals exempt from certain labor laws and other programs. He further explained the financial benefits of certain worker classifications for businesses.

01:54 PM -- Mr. Patrick Teegarden, representing the Colorado Department of Labor and Employment (CDLE), testified in opposition to the bill. Mr. Teegarden discussed the efforts of CDLE to clarify the guidelines for classifying workers. He also discussed the consequences of the bill. In response to a question, Mr. Teegarden discussed what he believes are the issues being addressed by the bill and the efforts of CDLE.

02:01 PM -- Ms. Kathy White, representing the Colorado Fiscal Institute, testified in opposition to the bill. Ms. White stated that the bill undermines the unemployment insurance (UEI) system, and discussed that system. She stated that the bill decreases the number of employers that would pay into UEI, which would harm the system.

02:05 PM -- Mr. David Hall, representing himself, testified in support of the bill. Mr. Hall stated that there are issues with the current statutory test for determining whether an individual is an employee or an independent contractor. Mr. Hall provided examples of employers using the current test. He stated that the bill simplifies the law and provides a bright line test that is easy to use. The committee and Mr. Hall discussed the current law and the factors outlined in SB 15-269.

02:15 PM

The committee and Mr. Hall continued to discuss worker classification and the relationship between employers and individuals.

02:18 PM -- Ms. Michelle Webster, representing the Colorado Center on Law and Policy, testified in opposition to the bill. Ms. Webster stated that the bill makes it easier for individuals to be classified as independent contractors. She explained that businesses misclassify employees as independent contractors to reduce costs. She also provided information related to classification of workers in Colorado. In response to a question, Ms. Webster discussed how she believes the bill would result in increased misclassification of workers.

02:25 PM -- Mr. Phil Hayes, representing AFL-CIO, testified in opposition to the bill. Mr. Hayes stated that worker classification is a complicated issue, and that the AFL-CIO supports clarifying the classification process. He stated that the bill assumes that all jobs are the same, and removes all discretion from the classification determination.

02:27 PM -- Mr. Dan Block, representing Colorado Association of Commerce and Industry, testified in support of the bill. Mr. Block stated support for the bill, but that some amendments are needed. Mr. Block discussed prior efforts to enact legislation similar to SB 15-269. He further discussed the inclusion of certain factors in the bill.

02:32 PM -- Mr. Greg Fulton, representing the Colorado Motor Carriers Association, testified in support of the bill. Mr. Fulton discussed challenges facing trucking companies, and those companies' compliance with state and federal law. He stated that independent contractor truck drivers prefer their classification. He also discussed his work with CDLE. In response to the committee, Mr. Fulton clarified his representation, and discussed classification of truck drivers.

02:41 PM -- Mr. Tony Gagliardi, representing the National Federation of Independent Business, testified in support of the bill. Mr. Gagliardi stated that being an independent contractor is a choice. He also discussed the actions of CDLE, including audits involving worker classification. In response to the committee, Mr. Gagliardi discussed his experiences with CDLE.

02:48 PM

Senator Roberts provided closing remarks on the bill and asked for the committee's support.

02:55 PM

Senator Lundberg discussed his experience with audits, and his position on the bill. The committee members discussed their positions on the bill.


BILL:	SB15-269
TIME:	03:02:40 PM
MOVED:	Roberts
MOTION:	Adopt amendment L.001 (Attachment A). The motion passed without objection.
SECONDED:
		VOTE
	Cooke
	Guzman
	Merrifield
	Lundberg
	Roberts


YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION:


BILL:	SB15-269
TIME:	03:02:54 PM
MOVED:	Roberts
MOTION:	Refer Senate Bill 15-269, as amended, to the Committee of the Whole. The motion passed on a vote of 3-2.
SECONDED:
		VOTE
	Cooke	Yes
	Guzman	No
	Merrifield	No
	Lundberg	Yes
	Roberts	Yes


Final YES: 3 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS