House Committee on Local Government (05/05/2015)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Date:	05/05/2015	ATTENDANCE

Time:	11:36 AM to 01:51 PM	Arndt	X
		Danielson	X
Place:	HCR 0107	Keyser	X
		Klingenschmitt	X
This Meeting was called to order by		Navarro	X
	Representative Fields	Ransom	X
		Rosenthal	X
This Report was prepared by		Saine	*
	Damion Pechota	Singer	*
		Lebsock	X
		Fields	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB15-269 SB15-282 SB15-274		Postponed Indefinitely Referred to Appropriations Postponed Indefinitely

11:37 AM -- SB15-269

Representative Brown 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. The bill repeals current standards related to the determination of independent contractor status under the Employment Security Act (UI) and establishes a multifactor test to determine whether an individual is an employee or an independent contractor for the purposes of UI. Specifically, the bill outlines 11 criteria. An individual who meets six or more of these criteria, by a preponderance of the evidence, is considered an independent contractor for UI purposes.

Representative Brown answered questions from the committee regarding the definition of benefits of independent contractors. He also answered questions from the committee regarding impact to businesses.

11:47 AM -- John Connell, representing the Workers' Compensation Education Association, spoke in opposition to the bill. He discussed the role of independent contractors and the impact to insurance coverage.

11:51 AM -- Vincent Shaw, representing Teamsters, Local 455, spoke in opposition of the bill. He spoke on the classification of employees and the state standards for independent contractors.

11:55 AM -- Patrick Teagarden, representing the Department of Labor and Employment, spoke in opposition to the bill. He discussed current law and state programs regarding independent contractors and insurance coverage.

Mr. Teagarden answered questions from the committee regarding compliance standards for businesses.

12:06 PM

Mr. Teagarden continued to answer questions regarding business compliance with the current program.

12:16 PM

The committee continued to dialogue with Mr. Teagarden regarding the classification of employees and independent contractors.

12:30 PM -- Phil Hayes, representing the Colorado AFL-CIO, spoke in opposition to the bill. He spoke on his concerns with the bill and the potential impact to independent contractor employees.

12:34 PM -- Kathy White, representing the Colorado Fiscal Institute, spoke in opposition to the bill. She spoke on the importance of insurance coverage and the disadvantages to employees who are misclassified as independent contractors.

12:38 PM -- Michelle Webster, representing the Colorado Center for Law and Policy, spoke in opposition to the bill. She expressed her concerns regarding the misclassification of employees as independent contractors.

12:42 PM -- Tony Gagliardi, representing the National Federation of Independent Business, spoke in favor of the bill. He discussed the previous testimony regarding unemployment insurance.

Mr. Gagliardi answered questions from the committee regarding the information available on small businesses.

12:52 PM

Mr. Gagliardi continued to answer questions regarding the impact of audits to small businesses.

The members provided closing comments on the bill.

01:02 PM

Representative Brown provided closing comments on the bill.


BILL:	SB15-269
TIME:	01:07:49 PM
MOVED:	Saine
MOTION:	Refer Senate Bill 15-269 to the Committee of the Whole. The motion failed on a vote of 5-6.
SECONDED:	Ransom
		VOTE
	Arndt	No
	Danielson	No
	Keyser	Yes
	Klingenschmitt	Yes
	Navarro	Yes
	Ransom	Yes
	Rosenthal	No
	Saine	Yes
	Singer	No
	Lebsock	No
	Fields	No

YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	SB15-269
TIME:	01:08:40 PM
MOVED:	Singer
MOTION:	Postpone Senate Bill 15-269 indefinitely. The motion passed on a vote of 6-5.
SECONDED:	Rosenthal
		VOTE
	Arndt	Yes
	Danielson	Yes
	Keyser	No
	Klingenschmitt	No
	Navarro	No
	Ransom	No
	Rosenthal	Yes
	Saine	No
	Singer	Yes
	Lebsock	Yes
	Fields	Yes

YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:09 PM -- SB15-282

Representative Duran and Representative Willett presented Senate Bill 15-282 concerning the establishment of a rural jump start program in highly distressed counties of the state for new businesses that bring new jobs to the state. The bill provides tax benefits to approved new businesses that locate inside a rural jump-start zone and establish a relationship with a state institution of higher education, junior college, or an area vocational school. A rural jump start zone is an area within a distressed county. The Colorado Economic Development Commission will be responsible for developing guidelines for the administration of the rural jump-start zone program and identifying eligible distressed countries. The business must be new to the state, hire at least five employees, and not directly compete with the core function of a business that is already operating in the state. The bill defines a distressed county as a county with a population less than 250,000 reflecting certain indicators of economic distress, such as lower per capita income than the state average, lower gross domestic product than the statewide average, unemployment levels higher than the statewide average, a declining workforce, or a higher concentration of pupils eligible for free lunch compared to the statewide average. The program is optional for distressed counties and municipalities wholly or partially within the highly distressed county.

01:14 PM -- Kathy White, representing the Colorado Fiscal Institute, spoke in opposition to the bill. She expressed her concerns regarding fairness for economic development and taxes.

01:18 PM -- Kristi Pollard, representing the Jump Start Colorado Coalition, spoke in favor of the bill. She discussed the importance of economic development and job growth in rural areas of the state.

01:20 PM -- Richard Orf, representing the Associated Governments of Northwest Colorado, spoke in favor of the bill. He discussed the potential economic impact in rural Colorado.

Mr. Orf answered questions from the committee regarding new businesses that would be eligible for the program.

01:24 PM -- Lori Fox, representing the Office of the Governor, spoke in favor of the bill. She discussed the issues regarding economic growth and job opportunities in rural Colorado.

Representative Willett answered questions from the committee regarding existing businesses.

The committee members provided closing comments on the bill.


BILL:	SB15-282
TIME:	01:29:47 PM
MOVED:	Danielson
MOTION:	Refer Senate Bill 15-282 to the Committee on Appropriations. The motion passed on a vote of 6-5.
SECONDED:	Singer
		VOTE
	Arndt	Yes
	Danielson	Yes
	Keyser	No
	Klingenschmitt	No
	Navarro	No
	Ransom	No
	Rosenthal	Yes
	Saine	No
	Singer	Yes
	Lebsock	Yes
	Fields	Yes

YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:31 PM -- SB15-274

Representative Thurlow presented Senate Bill 15-274 concerning the reinstatement of the state sales and use tax exemption for soft drinks. The bill reenacts the sales and use tax exemption for soft drinks that are consumed off premises. The exemption applies for sales that occur on or after July 1, 2016.

Representative Thrulow answered questions regarding the current sales and use tax for soft drinks.

01:41 PM -- Chris Howes, representing the Colorado Beverage Association, spoke in favor of the bill. He discussed the definition of soft drinks and provided a history of the sales tax for soft drinks.

01:45 PM -- Larson Silbaugh, Legislative Council Staff, answered questions from the committee regarding prioritization of TABOR refund mechanisms.


BILL:	SB15-274
TIME:	01:48:19 PM
MOVED:	Saine
MOTION:	Refer Senate Bill 15-274 to the Committee on Finance. The motion failed on a vote of 5-6.
SECONDED:	Klingenschmitt
		VOTE
	Arndt	No
	Danielson	No
	Keyser	Yes
	Klingenschmitt	Yes
	Navarro	Yes
	Ransom	Yes
	Rosenthal	No
	Saine	Yes
	Singer	No
	Lebsock	No
	Fields	No

YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	SB15-274
TIME:	01:50:11 PM
MOVED:	Rosenthal
MOTION:	Postpone Senate Bill 15-274 indefinitely. The motion passed on a vote of 6-5.
SECONDED:	Singer
		VOTE
	Arndt	Yes
	Danielson	Yes
	Keyser	No
	Klingenschmitt	No
	Navarro	No
	Ransom	No
	Rosenthal	Yes
	Saine	No
	Singer	Yes
	Lebsock	Yes
	Fields	Yes

YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:51 PM

The committee adjourned.