Joint Committee Committee on Joint Business Affairs & Labor (12/16/2014)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON JOINT BUSINESS AFFAIRS & LABOR

Date:	12/16/2014	ATTENDANCE

Time:	08:35 AM to 12:36 PM	Balmer	X
		Baumgardner	E
Place:		Exum	E
		Hamner	E
This Meeting was called to order by		Holbert	E
	Senator Tochtrop	Jahn	X
		Kefalas	E
This Report was prepared by		Kraft-Tharp	X
	Jeanette Chapman	Navarro	A
		Nordberg	A
		Rivera	A
		Rosenthal	E
		Ryden	E
		Schwartz	X
		Szabo	A
		Wright	X
		Williams	X
		Tochtrop	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Presentation from the Office of Economic Development and Trade Presentation by the Department of Labor and Employment Presentation from the Department of Personnel and Administration Presentation by the Department of Regulatory Agencies Public Testimony		Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only

08:37 AM -- Presentation from the Office of Economic Development and Trade

Ken Lund, Executive Director, Office of Economic Development and International Trade (OEDIT), discussed the agency's strategic policy initiatives for FY 2014-15 including retaining and recruiting business, creating a strong state brand, cultivating technology, and improving OEDIT processes. He discussed a legislative agenda that will emphasize recruitment of quality talent to the state workforce that would help keep graduates from Colorado universities in the state through a tuition offset. The agency would also like to create a process for targeting business recruitment in the state as well as retaining and growing current companies.

08:50 AM

Senator Tochtrop asked about issues around energy industry in the state and to what extent Colorado is dependent on it. Mr. Lund indicated that energy is an ongoing force in the state's economy and that there is an ongoing need to keep industry, the public, and businesses working together for continued success. He discussed the need to diversify the economy of coal producing areas of the state to make them less dependent on world markets. Mr. Lund noted that businesses tend to find the regulatory climate in the state to be favorable for development.

09:00 AM

Representative Williams asked about development of the film program in the state. Mr. Lund indicated ongoing interest in supporting film in the state.

141216 AttachA.pdf

09:09 AM

Mr. Lund responded to questions regarding the continued use of creative districts. He noted the importance of creativity in the development of businesses and public/private partnerships. Senator Schwartz asked about the state's receptiveness to developing start up companies. Mr Lund acknowledged that the state's programs do not tend to emphasize start ups and are more focused on mature companies. He emphasized that start up companies tend to be very high risk. Senator Schwartz felt like a middle ground policy could be established.

09:21 AM

Mr. Lund talked about venture capital programs and enterprise zones in the state. He indicated positive trends in this area and talked about the Colorado Impact Fund. The Fund's focus is on rural parts of the state. Senator Heath asked about expanding enterprise zones to include areas of the state that are still struggling. Most recent expansions have expanded heath care credits and other small scale programs.

09:27 AM

Senator Rivera asked what impact has been seen with legalized marijuana. Mr. Lund indicated that there has not been a notable impact on business development in the state due to legalized marijuana, either a positive or negative impact. Recently the ski industry expressed concern about families choosing Colorado over other states. At the same time, there has been some increased real estate development in localized areas. While the agency has experienced a significant uptick in business development, marijuana has not been noted by participating companies as either a positive or negative influence on people or businesses moving to Colorado.

09:33 AM -- Presentation by the Department of Labor and Employment

Ellen Golombeck, Executive Director, Department of Labor and Employment (CDLE), introduced her team and provided a handout to the committee (Attachment B). Ms. Golombeck talked about the role of the department in connecting businesses with job seekers, assisting the unemployed and those injured on the job, ensuring fair labor practices, and ensuring workplace safety. She discussed the department's current strategic initiatives that include employee engagement and accountability and increasing customer satisfaction and improving customer service through strengthening relationships with stakeholders and improving work processes.

141216 AttachB.pdf

09:49 AM

Ms. Golombeck discussed the initiatives and accomplishments of each division within the department based on specific performance measures. The Division of Employment and Training, for example, is working to increase the percentage of people working after they receive workforce services from the division. The division saw a 19% increase in the number of businesses served through Colorado Workforce Centers and trained 849 workers in FY 2013-14 with employer matching funds through an H1B Grant.

09:54 AM

The Division of Unemployment Insurance reduced the improper payment rate to 8.12%, reduced call center wait times, and provided electronic forms and online services to workers. Ms. Golombeck discussed improper unemployment payments and measures that the division has implemented to reduce such payments in the future. The division can now take a credit card payment over the phone and develop a payment plan over the phone that has resulted in significant repayment.

09:58 AM

Ms. Golombeck discussed the department's legislative agenda for the upcoming session. The Division of Oil and Public Safety is looking to provide financial incentives for increased petroleum storage tank spill prevention and early detection measures. The Division of Employment and Training is hoping to implement the federal Workforce Innovation and Opportunity Act to include authority for fee for service for requested additional employer services (particularly targeting to rural areas).

10:06 AM

Ms. Golombeck responded to questions from the committee regarding long term unemployment and discussed efforts that the department has made in assisting disabled workers in finding jobs as well as working with employers to educate them about employing workers with disabilities. She discussed federal requirements to reach the long term unemployed and work to decrease that population. She talked about efforts to increase the availability of skilled workers as well as making people aware of what types of work is available to them.

10:17 AM

Senator Newell asked for an update on activities associated with the "talent pipeline," coordinating work between higher education, OEDIT, and CDLE to identify the employment needs of the state. The report of this group is in process and should be available in January. Ms. Golombeck also responded to questions about recruiting efforts by both the state and private industry. Senator Schwartz asked about particular problems for Delta county recovering from a loss of the primary industry in the area.

10:32 AM

Senator-elect Neville asked about possible rule-making that would clarify the definition of employee versus an independent contractor. Ms. Golombeck explained the need to clarify this difference to employers. The department has received complaints from both employers and employees. In some situations, employees may have been unaware that they are classified as an independent contractor until they seek unemployment insurance.

10:41 AM

Mahesh Albuquerque, Director, Division of Oil and Public Safety, came to the table to respond to questions about increasing regulation of trampolines, trampoline parks, and bouncy castles. The division is currently unable to regulate companies that provide bouncy castles and legislation would be required to change that. He also responded to questions regarding regulatory issues related to petroleum spills.

10:46 AM -- Presentation from the Department of Personnel and Administration

Kathy Nesbitt, Executive Director, Department of Personnel and Administration (DPA), introduced herself and Kara Veitch, Deputy Executive Director. Ms. Nesbitt provided a handout to the committee (Attachment C). She discussed the role of the department in state government.

141216 AttachC.pdf

10:50 AM

Kara Veitch discussed the department's accomplishments including completion of the Capitol dome restoration and Capitol Complex Master plan, replacing an old accounting system with an integrated financial management, and eliminating fees for businesses to register to bid on state contracts. She discussed anticipating rule making for 2015 including electronic signatures, risk management, workers compensation, and travel management.

10:58 AM

Ms Nesbitt responded to questions from the committee regarding increased use of compressed natural gas (CNG) for the state government fleet. She discussed efforts by DPA to implement the use of CNG, including limitations and conflicts in the program. She explained the difference between the state fleet and the motor pool.

11:14 AM

Representative Kraft-Tharp asked about efforts to increase the ability of small businesses to participate in the procurement process. Ms. Nesbitt discussed the elimination of the fee for bid requirement as well as individual situations that have increased small business participation within the state procurement process.

11:20 AM

Aidrian Lieter, Director, Budget Policy and Analysis, DPA, responded to questions regarding state salaries. He provided a handout to the committee (Attachment D).

141216 AttachD.pdf

11:28 AM

Ms. Nesbitt discussed the department's efforts to ensure that the state gets competitive prices on items as well as efforts to avoid preferential treatment in the procurement process. She provided the members with a workforce report that provides recent workforce data (Attachment E).

141216 AttachE.pdf

11:36 AM -- Presentation by the Department of Regulatory Agencies

Barbara Kelley, Executive Director, Department of Regulatory Agencies (DORA), introduced herself and provided a handout to the committee (Attachment F). She discussed the responsibilities of DORA and the recent achievements of the department in assisting consumers. She noted efforts by the Department to reduce prescription drug abuse in the state, which she indicated is far too high.

141216 AttachF.pdf

11:51 AM

Ms. Kelley discussed the Department's performance plan. The department's 2015 goals include reducing regulatory burdens, increasing public trust and confidence including insuring that fees and fines reflect the minimum necessary to support the service, ensuring that regulatory and legislative agendas are transparent and understandable, and ensuring easy and efficient public participation and access to programs.

12:00 PM

Ms. Kelley further discussed the Department's regulatory agenda and detailed the Public Utilities Commission's efforts to bring together stakeholders to address rule making related to transportation network companies. She also noted the department's budget request. The Division of Professions and Occupations is actually requesting a reduction in the funds appropriated to that division in association with the reduction of fees and fines for services. The Department's legislative agenda includes a bill that would permit advance practical nurse (APN) prescriptive authority, allowing nurses the ability to prescribe medications. This would bring Colorado in line with many other states that already permit this of APNs.

12:14 PM

Ms. Kelly responded to questions from the committee regarding new guidelines for physicians in prescribing pain medications. She described efforts to educate small businesses about avoiding personnel issues that may result due to new civil rights claims that they are subject to. Small businesses were previously exempt from these laws. The Department is attempting outreach to make sure business owners are aware of these changes by contacting local chambers of commerce and other small business organizations.

12:22 PM

Michelle Peterson, Deputy Executive Director, DORA, responded to questions from the committee. Ms. Nesbitt also discussed the efforts of the department to improve their communication via the department's website.

12:35 PM -- Public Testimony

No public testimony.